CHAPTER 1

INTRODUCTION

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1.1 INTRODUCTION

Motivation is the reason for people’s actions, willingness and goals. Motivation is one’s
direction to behaviour, or what causes a person to repeat a behaviour, a set of force that acts
behind the motives. Motivation has been considered as one of the most important reasons that
inspires a person to move forward. According to (Omollo,2015), motivation is the key of a
successful organisation to maintain the continuity of the work in a powerful manner and help
the organisation to survive. Motivation is finding a need inside the employees and help to
achieve it in a smooth process. Motivating the staff leads to broaden their skills to meet the
organizational goals. Various motivational incentives can be used for encouraging workers to
make positive contribution for achieving organisational objectives. Motivational incentives is
an act or promise for greater action. It is also called as a stimulus to greater action. Incentives
are something which are given in addition to wages. It means additional remuneration or benefit
to an employee in recognition of achievement of better work.

In the present scenario business is very competitive. In many organisations material and
financial resources are considered as the most valuable asset. But now, this thinking as
dramatically changed. Now human resources are considered as the most valuable asset in every
organisations. For any organisation to work smoothly employee cooperation is necessary. It is
said that one of the important function of the human resource manager is to get things done
through employees. Every boss wants his or her employees to use their talents to the fullest
capacity. But it’s not possible to achieve the full capacity. Everyone has ups and downs in their
work output. Managers within companies or organisations are primarily responsible to ensure
the tasks or job is done through employees in the right way. To achieve this the managers must
ensure job commitment at the work place, which can only be achieved through motivation. So
motivation play a vital role in the management field. It is through motivation that the human
resources can be utilised by making full use of it. This can be done by building willingness in
employees to work. If employees are not motivated properly it will leads to various forms of
dissatisfaction which may include high absenteeism, constant grievances, high labour turnover,
strikes and as a result low performance of their due duties. So it is necessary to motivate
employees to increase their productivity and performance.

High productivity is a long term benefit of employee motivation. Motivated employees delivers
huge value to the organisation in strengthening it’s business and revenue growth. So motivation
is crucial for good performance.

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1.2 STATEMENT OF THE PROBLEM

In the modern competitive world business organisations are facing ever-growing challenges
regarding commitment, engagement and retention of their employees. DDI (Development
Dimensions International)’s own research reveals that only 19 percent of employees are highly
engaged within their organisation. Not only is that, but also in the field of recruitment, a high
portion of these organisations still experiencing difficulties. Motivation is about giving your
staff the right mixture of guidance, direction, resources and rewards so that they are inspired
and keen to work in the way that you want them to (Ludhans,1992). So a large portion behind
these difficulties can easily be solved by imparting proper motivation. In the fierce era of
competition, organisation nowadays are more emphasizing on the management of Human
Resources (Robert.L,2008). A manager capable of managing his employee effectively is a
successful one. Motivational tools are effective in the context. We always have to keep in mind
that the employees are not motivated solely by money and employee behaviour is linked to
their attitudes (Dickson, 1973). Any institution faces the challenges of employee retention, a
high cost of motivation recruitment, training rising competition, increased rules and regulation
by the government and high rate of technology growth. Also, from the perspective of employee,
they feel de-motivated and overworked. For finding out more accurate an outcome conducted
the research within Forest Industries Travancore Limited. In this study major concern is to
analyse the “ effectiveness of motivation on job performance of employees with special
reference to FOREST INDUSTRIES (TRAVANCORE) LTD, ALUVA”.

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1.3 OBJECTIVES OF THE STUDY

Primary objectives:

• To study various facilities provided by the company to motivate employees.

• To analyse how motivation influence job performance satisfaction of the employees.

Secondary objectives:

To examine the relationship between motivational incentives and employee day to day
performance.

• To identify the satisfaction level of employees on their motivational incentives.

• To identify whether employees are given incentives fairly for the work they do.

1.4 SCOPE OF THE STUDY

The study have been conducted among employees in Forest Industries Travancore ltd,
Aluva. The study is conducted to evaluate whether the motivation will increase the satisfaction
and productivity of the employees. There are various motivational techniques, the management
select adequate based on employees performance. The study also helps to understand the
organisational culture, practice etc.

1.5 RESEARCH METHODOLOGY

Research methodology is a systematic plan for conducting research. Sociologists draw on a

variety of both qualitative and quantitative methods, including experiments, survey research,
participant observation and secondary data.

1.5.1 RESEARCH DESIGN

The type research design used in this study is descriptive research. The main
characteristics of this method is that the researcher has no control over the variables and he can
only report what has happened or what is happening.

1.5.2 DATA COLLECTION

The main source of information for this study is based on the data collection. Data collected
are both primary and secondary in nature.

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Primary data

Primary data have been collected through questionnaire specially designed for this survey.
Questions like open ended, close ended and ranking type have been used for the purpose of
data collection.

Secondary data

Secondary data have been collected from official website of Forest Industries Travancore ltd.
Aluva, relevant books, articles and other websites.

1.5.3 SAMPLING DESIGN

The population involved in this project are employees from Forest Industries Travancore ltd.
Aluva.

1.5.4 SAMPLE SIZE

Sampling size here used are 50 in numbers.

1.5.5 SAMPLING TECHNIQUE

Simple random sampling technique is used in this project.

1.5.6 RESEARCH INSTRUMENT

Questionnaire technique is used in the study to collect data about a study on the effectiveness
of motivation on job performance of employees of FIT.

1.5.7 TOOLS FOR ANALYSIS

1) Percentage analysis

It is the process of inspecting, narrowing, transforming, and modelling data from a huge amount
of information or data. The percentage is one of the essential component of data analysis, which
helps find a value from a huge amount of data and information.

Formula:

Percentage = (value / total value) *100

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2) Spearman’s rank correlation

The correlation coefficient obtained from ranks of the variables of their quantitative
measurement is called rank correlation. This was developed by Charles Edward Spearman in
1904.

Spearman’s coefficient correlation = 1 – 6* ƩD^2

N^3-N

Where, D = Difference between the two variables ( R1 - R2)

N = Number of variables

3) Chi-square test

It is a non parametric test. This method is the application of testing the significance different
between observed and expected values. For calculating the value of Chi-squaretest, the
following formula used:

X^2 = Ʃ(O - E)^2

E = Row total * column total

Grand total

Degree of freedom = (R-1) (C-1)

Whereas,

O = Observed frequency

E = Expected frequency

R = Number of rows

C = Number of columns

1.5.8 PERIOD OF STUDY

The study attempt to analyse the effectiveness of motivation on job performance of employees
in Forest Industries Travancore ltd. Aluva for a period of 50 days.

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1.6 LIMITATIONS OF THE STUDY

• Detailed study could not be carried out of time limit.

• Lack of experience of the researcher.
• Project report is made with a sole purpose of academic credential, detailed and elaborate
study could not be conducted.
• The employees are busy at work and had only a little time available for questionnaire
and conversation.
• The information based on questionnaire was to be factual assumed.
• Limited information.

1.7 CHAPTER SCHEME

Chapter 1: Introduction

In this chapter, a brief introduction is given about the statement of the problem, objectives of
the study, research methodology and limitation of the study.

Chapter 2: Review of Literature

Review of literature is an over view of what has been published on the topic by scholars and
researchers. The purpose of the chapter is to convey to the readers the knowledge and idea that
have been already published on the topic.

Chapter 3: Industry Profile and Company Profile

This chapter contains the industrial background of the study and the organisational profile in
which the study is undertaken.

Chapter 4: Data Analysis and Interpretation

This chapter involves the analysis and interpretation of the data that has been used in the course
of the study. The analysis of data is done through tabulation and graphical representation of
data.

Chapter 5: Findings, Suggestions and Conclusion

This chapter deals with the summary, findings, suggestions and conclusion.

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 CHAPTER 2

REVIEW OF LITERATURE

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2.1 REVIEW OF LITERATURE

Motivated behaviours are deliberate choices controlled by the individual employee.

Organizational leaders are compelled to create a favourable environment which the employee
feels trusted and empowered to take decisions in the organization which leads to enhanced
motivational levels of employees and ultimately organizational performance is enhanced
(Shadare et al., 2009). A significant proportion of the theories discussed above have been tested
empirically by various scholars. One of the early empirical studies on Maslow’s hierarchy of
needs theory tested whether the list of needs derived from Maslow is applicable to other
cultures (Bawa, 2017). The study found that managers found the needs to be essential.
Nonetheless, even though the needs are applicable universally, the importance attached to the
satisfaction of different needs varies from culture to culture (Haire, et. al., 1963 in Bawa (2017).
According to Bawa (2017), a survey conducted by Velnampy (2007) to examine Maslow’s
hierarchy of needs theory and revealed that consciously or unconsciously lower level
employees in both public and private sector organizations of Sri Lanka attach more importance
to lower level needs and higher level employees emphasize higher level needs. Sajuyigbe, et al
(2013) conducted an empirical study in manufacturing companies in Ibadan, Nigeria, in testing
the Herzberg’s motivation hygiene theory, and came to a conclusion that pay, performance
bonus, recognition and praise were highly related to organizational performance.

In testing the equity theory, Summers and Hendrix (1991), as cited in Bawa (2017) found a
significant relationship between job satisfaction and intention to quit and Iverson and (Roy
1994, as cited in Griffeth & Gaertner, 2001) who investigated the perception of various pay
and benefits in relation to co-workers and found a strong correlation between pay equity and
job satisfaction. Staff training and development is another indispensable motivator in the
workplace.

Aibievi (2014) collected data from 100 non-academic staff of University of Benin, Nigeria to
test the impact of training and development on employee motivation. The study found a
significant positive correlation between training and motivation. Trained staff was found to be
more dedicated to duty compared to those who did not receive training and also that training
could lead to increased productivity.

Decoene and Bruggeman (2006) in their study developed and illustrated a model of the
relationship between strategic alignment, motivation and organizational performance in a BSC
context and find that effective strategic alignment empowers and motivates working

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executives. Likewise, Malina and Selto (2001) conducted a case study in one corporate setting
by using balance score card (BSC) method and found out that organizational outcomes would
be greater if employees are provided with positive motivation.

According to Thomas (2009), pinpointing what motivates each individual employee is regarded
as the main challenge in the workplace taking into account each individual difference. The
management must be aware of what exactly encourages the employee to perform; monetary
rewards can be an essential determinant of employee motivation and achievement which, in
turn, can lead to important returns in terms of firm level performance (Bawa, 2017). Naldöken
et al. (2011) examined the financial incentive application on the motivations of employees at a
state hospital in terms of their performance. It was established in the study that the medical
employees, who benefited from these financial incentives were positively motivated by this
application.

Mulema (2019) carried out a study in Information Technology Support Service Companies in
Kampala, Uganda. The study aimed to determine the impact of employee motivation on
organizational performance. The three selected IT support services companies were Iwat
Solutions, Mercury Group and Sky Hi Technology. The intention of the study was to evaluate
the relationship between employee motivation and organizational performance, to analyze the
relationship between employee motivation and employee commitment and to outline the key
factors that increase employee motivation. The study’s main findings indicated that there is a
positive relationship between motivation of employee and organizational performance.

Muze (2014) also carried a research on motivation and its impact on employees’ performance
in goal attainment. The intent was solely to investigate the standards which are being used by
organizations in motivating their employees; to evaluate the problems that companies face in
motivating their employees; and to examine the effect of motivation on employees’
performance. Muze’s study findings clearly indicated well the impact of employee motivation
on organizational efficiency, it failed to acknowledge several indicators of employee
motivation such as recognition and empowerment.

Another study conducted by Ng, et al. (2010) as cited in Singh, et. al. (2012) sought to study
the expectations and priorities of young employees. They found that this category of workers
rated opportunities for career advancement as the most desirable work related attribute
followed by good people to relate to and opportunities for good training and development.

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According to these researchers, surprisingly, pay, benefits and job security were ranked in the
middle behind career advancement.

According to a survey carried out by the United States of America Career and Qualification
Principles in 2005, it was determined that the most important element motivating both the
employees and employers were job satisfaction and personal satisfaction for both groups.
According to the results of the study, it was observed that non-financial incentives are given
much importance than financial incentives (Coşkun & Dulkadiroğlu 2009)

Finally, Tausif (2012) as cited in Haider, et al (2015) conducted a survey in Pakistan among
public school teachers and found that non-financial rewards were essential in developing
employees’ job satisfaction and motivation. Likewise, Barton (2006) found that employee
recognition is the most important factor among non-financial rewards in enhancing job
satisfaction and motivation. Furthermore, Yousaf et al (2014) argue that the importance of a
motivated workforce cannot be underestimated in boosting the organizational motivation.
Besides the financial rewards, the employee expects recognition and appreciation for his efforts
and contribution.

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2.2 THEORETICAL FRAME WORK

2.2.1 Motivation - Meaning

Motivation refers to a process of inducing and stimulating an individual to act in certain

manner. In the context of an organisation, motivation implies encouraging and urging the
employees to perform to the best of their capabilities so as to achieve the desired goals of the
organisation.

2.2.2Definitions

1. Joe Kelly defined as “Motivation is a process where by needs instigate behaviour

directed towards the goals that can satisfy those needs.”
2. According to W. G. Scot, “Motivation means a process of stimulating people to action
to accomplish the desired goals.”
3. According to Michael J. Jucius, “Motivation is the act of stimulating someone or
oneself to get a desired course of action, to push the right button to get a desired results.”

2.2.3 Types of motivation

➢ Achievement Motivation: It is the drive to pursue and attain goals. An individual with
achievement motivation wishes to achieve objectives and advance up on the ladder of
success. Here, accomplishment is important for its own shake and not for the rewards
that accompany it. It is similar to ‘Kaizen’ approach of Japanese Management.
➢ Affiliation Motivation: It is a drive to relate to people on a social basis. Persons with
affiliation motivation perform work better when they are complimented for their
favourable attitudes and co-operation.
➢ Competence Motivation: It is the drive to be good at something, allowing the individual
to perform high quality work. Competence motivated people seek job mastery, take
pride in developing and using their problem-solving skills and strive to be creative when
confronted with obstacles. They learn from their experience.
➢ Power Motivation: It is the drive to influence people and change situations. Power
motivated people wish to create an impact on their organization and are willing to take
risks to do so.
➢ Attitude Motivation: Attitude motivation is how people think and feel. It is their self
confidence, their belief in themselves, their attitude to life. It is how they feel about the
future and how they react to the past.

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 ➢ Incentive Motivation: It is where a person or a team reaps a reward from an activity. It
is “You do this and you get that”, attitude. It is the types of awards and prizes that drive
people to work a little harder.
➢ Fear Motivation: Fear motivation coercion’s a person to act against will. It is
instantaneous and gets the job done quickly. It is helpful in the short run.

2.2.4 Features of motivation

❖ Motivation is a psychological phenomenon: Motivation is an internal feeling which

means it cannot be forced on employees. The internal feelings such as need, desire,
aspirations etc. influence human behaviour to behave in a particular manner. For
example, desire to have a new house, respect and recognition etc.
❖ Motivation produces goal directed behaviour. Motivation induces people to behave in
such a manner so that they can achieve their goal. Motivated person need no supervision
or direction. He will always work in desired manner. For example of a person has a
motive to get promotion so he will work efficiently to get promotion.
❖ Motivators can be positive as well as negative: To motivate employees managers use
various motivators. Some motivators are positive and some are negative few examples
of positive motivators are promotion, increment, bonus, respect, recognition etc. if
employee does not improve his performance with positive motivators then manager
uses negative motivators such as warning, issue o memo, demotion, stopping
increments etc. sometimes fear of negative motivators also induces person to behave in
a desired manner.
❖ Motivation is a complex process: Motivation is a complex and difficult task. In order
to motivate people a manager must understand various types of human need. Human
needs are mental feelings which can be measured accurately. If manager measures them
accurately then also every person uses different approaches to satisfy his need. Some
get satisfied with monetary incentives, some with non-monetary, some with positive
and some with negative motivators. So it is not possible to make generalization in
motivation.
❖ Motivation is a dynamic and continuous process: Human beings are ever-changing.
Human needs are unlimited and go on changing continuously. Satisfaction of one need
gives rise to another so managers have to continuously perform the function of
motivation.

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2.2.5 Importance of motivation

▪ Motivation helps to change from negative attitude to positive attitude.

▪ Motivation improves performance level of employees.
▪ Motivation helps to achieving the organisational goals.
▪ Motivation creates supportive work environment.
▪ Motivation helps the managers to introduce changes.
▪ Motivation helps to reduce employee turnover.

2.2.6 Advantages of motivation

1. Advantages to Management or Organization:

• Increase in the efficiency and productivity of employees. Motivation ensures a high

level performance of employees.
• Better co-operation from employees and cordial labour-management relations.
• Reduction in the rate of labour absenteeism and turnover.
• Reduction in the wastages and industrial accidents.
• Improvement in the morale of employees.
• Quick achievement of business/corporate objectives and favorable corporate image.

2.Advantages to Employees or Workers:

• Employees get various monetary and non-monetary facilities/benefits which provide

better life and welfare to them.
• Security of employment and other benefits due to cordial relations with the
management.
• Job attraction and job satisfaction.
• Higher status and opportunities of participation in management.
• Positive approach and outlook of employees towards company, management and
superiors.
• Reduction in the rate of labour turnover which is harmful to employees and
management.
• Better scope for improvement in knowledge and skills of employees.

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2.2.7 Theories of motivation

1.Maslow's Hierarchy of Needs

In classical literature, the most renowned theory of motivation is possibly that of a United
States psychologist, Abraham Maslow, with the Hierarchy of Needs Theory (Bawa 2017;
Mulwa 2008; Aruma & Hanacho 2017). Maslow (1943) which discusses five levels of
employee needs namely physiological, safety and security, social, esteem or ego and self-
actualization (Onah 2015; Őnday; 2016). He noted that the most basic need emerges first and
the most complex need last. When one need is fulfilled, the next higher social need would
stimulate employees to work hard and improve efficiency thus the previous needs would loses
its strength and the next level of needs is activated (Mulwa 2008; Onah 2015; Őnday 2016).
Maslow argues that the most powerful employee motivator is the need which has not been
satisfied. According to this theory, employees have several needs which compels them to work
and that those needs are coordinated in a hierarchical manner in such a way that lower level
needs (physiological and safety) had to be satisfied before the next higher level social need
would motivate employees to work hard and increase efficiency (Bawa, 2017).

2. Fredrick Herzberg-Hygiene Theory

Frederick Herzberg carried out studies to determine which factors in an employee's work
environment induced satisfaction or dissatisfaction. Accountants and engineers were
interviewed and further analyzed motivation in the light of job content and contest (Rounok &
Parvin 2011). He realized that motivators or satisfiers such as achievement, recognition, work
itself, responsibility, advancement and growth are factors which the individual enjoys as a
result of successfully completing the task increases job satisfaction and motivate employees to
work harder (Singh 2013; Bawa 2017). Dissatisfaction is imminent when the hygiene factors
are absent in the job which include salary, supervision, status, peer relations, benefits and job
security. These factors often trigger no motivation but their absence leads to dissatisfaction
(Bawa 2017; Rounok & Parvin 2011). According to Uzonna (2013), employees have the
responsibility to understand the needs of the workforce and knowing what people need can
help us understand how to motivate today’s workers. He further stresses that employees with
high paying jobs are not motivated with money alone as this does not provide enough of an
incentive as a motivator for performance. This therefore indicates that to motivate employees,
organizations need to look beyond monetary rewards (Bawa 2017; Saiyadain, 2009; Uzonna

2013).

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3.Victor Vrooms Expectancy Model

In 1964 Victor Vroom developed the expectancy theory utilizing three distinct components
namely expectancy, instrumentality, and valence (De Simone 2015; Bawa 2017).
Underpinning the expectancy theory is the fact that people will be motivated when they believe
that effort will lead to performance, they can see a strong correlation between performance and
certain results (Suciu et al.2013; Parijat & Bagga 2014). An employee is motivated to the
degree that he or she believes that effort will lead to acceptable performance (expectancy),
performance will be rewarded (instrumentality), and the value of the rewards is highly positive
(valence) (De Simone, 2015). Expectancy is an estimate of a person’s probability that work
related activity will result in a given level of performance. According to Rounok & Parvin,
(2011), managers should build a suitable environment for performance taking into account the
differences in various situations. Expectancy theory is complex, but it is consistent with real
life situations.

4. Reinforcement Theory

F. Skinner's reinforcement theory entails that employee behaviors that lead to positive
outcomes will be repeated and behaviors that lead to negative outcomes will not be repeated
(Omomia 2014). He claims that human behavior can be conditioned through the use of rewards
either tangible such as food or money or intangible, approval or praise. Rounok and Parvin
(2011) therefore recommend that organizations should reinforce employee behaviours that lead
to positive outcomes and discourage those behaviors that lead to negative outcomes. This can
be achieved through staff training and development, among other strategies (Bawa 2017).

5.Equity theory

The theory states that an individual’s motivation is centered on what he or she considers being
fair or justified in comparison to others (Redmond & Housell 2015; Miner 2003; Tudor 2011).
How an employee perceives fairness can influence his motivation, attitudes and behaviors
which will in turn affect performance (Bawa 2017; Tudor 2011). If they feel that they are not
equitably treated they may be dissatisfied and this severely impacts productivity. If they feel
that they are receiving more rewards, then they will improve their quantity and quality of work
or they may discount their rewards (Redmond & Housell 2015; Bawa 2017).

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6.Hawthorne Studies

The main scholar involved in the experiment investigating the effects of the work environment
on worker productivity is Elton Mayo (Rounok & Parvin 2011). The initial experiments were
performed to determine the impact of lighting on worker productivity. The findings showed no
strong relation between light level and productivity, the experiments then started looking at
other factors (Őnday, 2016). The factors that were considered when Mayo was working with a
group of women included use of rest periods, duration of work day and work week, company
sponsored meals and work incentives. Production increased with each of those changes. When
the women were put back to their original hours and conditions, they set a productivity record
(Olum, 2004; Borgatti 2004). Results from the experiments indicated that work satisfaction
and hence performance is generally not economic and depend more on working conditions and
attitudes, communications, positive management response and encouragement, working
environment (Őnday 2016). The evidence provided in the study suggests that employees s
should be satisfied and motivated for a better output.

7.Alderfer's ERG model

Clayton Alderfer proposed the ERG theory which identifies three categories of needs:
existence needs, relatedness needs and growth needs (Parvin &Rounok 2011). Existence needs
are the desires for physical well-being. Relatedness needs are the urges to satisfactorily relating
to others by establishing and maintaining interpersonal relationships. Growth needs are the
desires to self-development, creativity, growth, and competence. Alderfer clearly states in his
theory that, one may be motivated by needs on numerous levels at the same time and when
individuals are overwhelmed in satisfying one level needs, they may concentrate on the next
lower level needs.

8.Goal-setting theory

The theory shows the significant relationship between goals and performance (Lunenburg;
2011). Goals have a pervasive influence on employee behaviour and performance in
organizations and management practice (Locke & Latham 2002). Employees are greatly
motivated if tasks are specific, measurable, time bound, attainable and realistic. When
employees are motivated to set goals for themselves and supervisor reviews and approves them,
then they take challenges for achieving those targets (Rounok &Parvin 2011). If goals are
entirely unrealistic, employees will become demotivated. Goal-setting theory helps a manager
to design rewards that match employees’ requirements. But it is not the only one method to

17
managers. While financial benefits influence job performance, the relationship is not mediated
by goal-setting. This means, goal setting and financial incentives have independent effect on
job performance (Perry et al. 2006).

9.McGregor’s Theory X and Theory Y

Douglas McGregor developed the concepts of Theory X and Theory Y, which adopts the notion
that there are different views about human nature (Carson 2005). Theory X stipulates that
employees dislike work and will function only in a highly controlled work environment where
managers must control, coerce and threaten employees to attain organizational goals
(Mohamed and Nor 2013). Theory on the other hand, notes that employees are responsible and
feel work as an important part of their lives. If they get personal rewards, they will work toward
organizational targets. Theory X and Theory Y have increased the importance of social factors
in the organization for motivating employees.

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 CHAPTER 3

INDUSTRY PROFILE AND COMPANY PROFILE

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3.1 INDUSTRY PROFILE

3.1.1 INTRODUCTION

Trees provide us with more than 500 products that people used every day. From photographic
film to paints and by products are all around us. Hey provide shade, oxygen, fruits, nuts and
wood products such as paper, furniture and housing etc. benefits are well known as we use
trees in many forms during a day.

Certain examples are loke when trees are used to make timber and plywood there are leftover
chips, bark saw dust. The chips and saw dust are made into wood pulp for paper and other
products. Not too long ago, those leftovers wood have been burned as waste, however with
new technology coming in, bank is used for lumber mills. Modern forest products operations
are very efficient at using at every part of a tree, nothing is wasted.

India is very rich in forest wealth having a huge land area under forest. Fortunately, all verities
of forest growth are found in India. Ranging from tropical hardwood forest to high attitude
coniferous forests and from deciduous to ever green forest and plantation but unfortunately the
forest resources in India is depleting due to increase of population and other causes.

Sound principles of forest policy, administration, timber production and conservation were
introduced by an act of legislature in 1845, and ever since Indian Rosewood and pad are world
renowned for their beauty of figure, grain and texture. Gurjan, Vellapine, Hillock and Hollong
are only a few of many Indian timber used for making good commercial plywood. Such
continues depletion of the natural forest resources of the country due to various consumption
of solid wood.

It felt to conserve the natural resource forest by reconstituted wood products such as plywood,
hard board, particle board and medium density fire board to meet the rising demand of wood
from the general consumer. Railways, Defence, furniture, laminate manufacture and the
builders, but the same time also it is trying to meet the wood demanded by Bamboo products
which are a like to wood.

As per the report published by department of industry policy and promotion plywood, venders
of all types and other wood based products such as particle board, medium density fibber has

20
been deli censed. Wide department of industry policy and promotions press note the NO:
11(1997series) dated 17 July 1997.

The word furniture comes from the French word “furniture” which means equipment. Furniture
is the name given to all movable and non-movable accessories for rooms or other areas of any
structure from cottage I to place or religious edifice. It may make from a wide range of materials
but wood and metal are mainly usually used.

In olden days people were using mud and stones for making furniture. As time passed, people
started using wood. Due to this reason there was a development in the field of furniture. During
the long spam of time the basic forms of furniture such as chair, table and cot etc. evolved and
passes on the succeeding people and culture for refinement and amplification.

3.1.2 HISTORY OF FURNITURE

A comparatively high labour cost and still ranking number one is the world furniture trade.
Consumer attitude is going to become all the more self-conscious. Furniture companies must
look towards the important and potential giant Indian consumer market. In China, furniture
distribution channels show different pattern in comparison with those of in western countries,
focusing on Beijing, Shanghai and Shenzhen. The impact of Asian crisis did not stop China
from seeking greater efficiency in furniture industry.

The beginning of modern furniture design emerged after 1st world war. It was of three kinds:

1. Functionalist modem

2. Traditional modem

3. Commercial modem

The commercial modern became associates with extra values which commercial furniture is
offered by the manner in which it was advertised. All furniture design was influenced by social
and economic trends of the era. In general furniture produced in the last 5000years had not
undergone development in any produced scene.

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3.1.3 HISTORY OF FURNITURE INDUSTRY IN INDIA

Indian furniture industry is worth about $1,700 million. The Indian furniture market can be
defined as non-organized and non-industrial companies provide 85% of the production. Artisan
form are concentrated in the wooden furniture segment, while metal and plastic furniture
produced on medium large scale and intended for professional use is provided by the organized
sector, where some 5000 companies are active: 8% of them produce wooden furniture and 82%
are the manufactures of accessories and furnishing items in plastic.

The report offer a comprehensive picture of the furniture market in India providing trends in
furniture production and consumption, international trade, prices distribution. Indian furniture
production is broken down by material and furniture, consumption is broken down by material
and furniture, and consumption is broken down by product type or variety.

The office furniture segment, particularly metal furniture is much more advanced that the home
furniture and a larger per cent of its production is exported. The Indian furniture industry as a
whole employs a total of 30 workers. The country breaks down furniture imports and exports,
by product and by material. Ancient sculptures, statues, temples and other buildings are
excellent examples of carving works.

Ancient furniture is also example of unique work. In ancient stages furniture are made with
copper, silver, wood etc. But now it has been changed to iron, plastic, steel etc. But that does
not mean that the demand for wooden furniture has decreased. Furniture industries of India are
concentrated in New Delhi, Maharashtra, Kerala, U.P and Tamil Nadu.

3.1.4 GLOBAL SCENERIO

The global furniture market can be broadly categorised into four categories- domestic furniture,
office/corporate furniture, hotel furniture and furniture parts. Globally domestic furniture
accounts for 65% of the production value, whilst corporate/office furniture represents 15%,
hotel furniture 15% and furniture parts 5%.

According to World Bank study, the organized furniture industry is expected to come from the
rapidly growing consumer markets of Asia, implying significant potential for growth in the
Indian furniture sector.

22
The world wide furniture industry promises significant growth opportunity in near future as
the global economy and worldwide real estate industry is booming at the present moment. The
growing disposable income is also driving the growth of the worldwide furniture industry.

The furniture industry includes manufacturing of a wide range of home furnishing products
and designed interiors related to offices, households and institutions.

The furniture market is developed countries like the US and Europe was heavily affected by
the economic turmoil in 2009, but the market registered growth in 2010. The furniture market
in the emerging countries like China and India has a significant growth opportunity in near
future. The market in the emerging countries is expected to drive the growth of worldwide
furniture market in the future.

The growth in the world economy, real estate industry, and urbanization is driving the growth
of the worldwide furniture industry. Low cost furniture products like China, Vietnam are
playing a significant role in the competitive landscape of furniture industry.

The furniture producers are focusing more on retailing their products to attract new customers.
However, scarcity of skilled labour, transportation and cost optimisation continues to be
significant challenges to the furniture industry.

The report analyses the global furniture market with focus on US, UK, France, India and China.
The drivers, trends and challenges for the industry have been analysed. The report also profiles
the major companies with a discussion of their key business strategies.

By combining SPSS includes data integration and analysis capabilities with our relevant
findings, we have predicted the future growth of the global furniture market. We employed
various significant variables that have an impact on this industry and created regression models
with SPSS base to determine the future direction of the industry. Before deploying the
regression model, the relationship between several independent or predictor variables and the
dependent variable was analysed using standard SPSS output, including charts, tables and texts.

Furniture is big business. Between 1995 and 2000 trade in furniture worldwide grew by 36%,
faster than world merchandise as a whole (26.5%), apparel (32%) and footwear (1%).by 2000it
was the largest low-tech sector, with total global trade worth US$57.4 billon, exceeding apparel
(US$51billon) and footwear (US$36.5 billion). In the European Union(EU), extra-intra
furniture imports grew by 20% from 1995 to 2000 compared with 17% for total extra-intra EU
imports.

23
Furniture as traditionally been a resource and labour-intensive industry that includes both local
craft-based firms and large volume procedures. Mass producing furniture became a viable
manufacturing strategy with the advent of flat-pack or ready-to-assemble designed future. This
product innovation paved the way for firms to design, manufacture and ship products in large
quantities. Firms that mass-produce flat-pack furniture tend to supply products for the low to
medium price markets.

3.1.5 NATIONAL SCENARIO

As of 2006, the Indian furniture market is estimated to be worth US$ 7922 million. Of this,
wooden furniture accounts for US$ 1358 million. About 11% (US$ 152 million) of this
(wooden furniture) is imported and imports are growing at 50 to 60 per cent every year. India
was the largest furniture importer in the world in 2004-05, with a 17 percent share in the future
imports worldwide. A total of 10476 importers shipped furniture to India during this period,
mainly from Italy, Germany, Spain, China, Korea, Malaysia, Indonesia, Philippines and Japan.

The furniture sector in India make marginal contribution to the Gross Domestic Product (GDP),
representing about 0.5 percent of the total GDP. The major part of this industry, approximately
85 percent is in the unorganised sector. The remaining 15 percent comprises of large
manufactures, such as, Godrej and Boyce manufacturing co. Ltd, BP Ergo, Feather lite,
Haworth, Style Spa, Yantra, Renaissance, Millennium Lifestyles, Durian, Kian, Tangent,
Furniture concepts, Furniture wala, Zuari, Truzo, N R Jasani & company, V3 Engineers, PSL
Modular Furniture, etc.

The range of indigenous furniture available in India includes both residential and contract
system furniture. Manufactures in India usually use a three-tier selling and distribution
structure, comprising of the distributor, wholesaler and retailer. The market is mainly
concentrated in A, B and C category cities (the top 589 cities). A and B type cities together
constitute 33 percent of the total market with a healthy economy and increased household and
institutional spending, the market is growing steadily. As with the global market, home
furniture is the largest segment in the Indian furniture market, accounting for about 65 percent
of furniture sales. This is followed by, the office furniture segment with a 20 percent share and
contract segment, accounting for the remaining 15 percent.

24
3.1.6 STATE SCENARIO

In Kerala firms that produce flat-pack furniture tend to supply products for the low-to-medium
price market. Solid wood furniture manufactures have retained important niche market segment
primarily for high-end, expensive and design-led product. These specialised products tend to
be purchased locally while mass-produced , large-volume products are sold locally and for
export.

FIT is a Kerala Government Undertaking under Department of Industries. It is register under

registrar off companies and registered as SSI unit. The unit became a Kerala Government
company in the year 1960.the unit was originally the agency for FACT for producing wood
from Kerala Forest Department. Since 1962, FACT changed their process and therefore the
FACT related operations discontinued from 1963.

From then onwards FIT’s main activity is wooden furniture manufacturing to meet the needs
of Government of Kerala and Commercial sectors. FIT is the only Government company in
Kerala solely engaged in manufacturer of wooden furniture and joineries. Its main strength is
half a century’s reputation of manufacturing consistently superior quality products both
durability and finish.

Major wood based industries are:

• Hindustan Newsprint LTD

• Grasim Industries, Mulavoor

• Kerala State Bamboo Corporation

• Travancore Plywood Industries LTD, Nilambur

• Forest Industries (Travancore) LTD, Aluva

• Western Indian Plywood

• Punaloor Paper Mills

25
3.2 COMPANY PROFILE

3.2.1 INTRODUCTION

Forest Industries Travancore Limited is a Kerala Government Company established in the year
1946 is engaged in manufacturer of wooden furniture and joineries (Windows, Doors,
Ventilators, etc). It is located at Thaikkattukara near Aluva, which is 15 km north Kochi and 2
km south of Aluva by the National Highway 47.

Forest Industries Travancore Limited was incorporated on 10th August 1946, under the
Travancore Companies act of ME114 with the object of exploring and selling timber and other
forest product from the Malayattoor division and else where in the state of Kerala.

FIT is a Kerala Government undertaking under department if industries. It is registered under

register of companies and registered as SSI unit. The unit became a Kerala government
company in the year 1960. The unit was originally the agency of FACT for producing wood
from Kerala Forest Department since 1962, FACT changes their process and therefore the
FACT related operations are discontinued from 1963.

From the onwards FIT’s main activity is wooden furniture manufacturing to meet the needs of
government of Kerala and commercial sectors. FIT is the only government owned company in
Kerala solely engaged in manufacture of wooden furniture and joineries. It’s main strength is
half a centuries reputation of maintaining consistently superior quality products both in
durability and finish.

The initial authorised capital was Rs.1crore share of Rs.10 each. But the authorised capital was
revised to 50 lakhs by a special resolution passed on 31st December 1957. Companies Act 1956
was made applicable to the company by special resolution passed at the annual general meeting
held on 27th June 1960.

Government of Travancore, based on an arrangement allowed FACT to extract firewood from

an area of 114 square miles in the Malayattoor forest to manufacture carbon monoxide for their
fertilizer unit.

In terms of the object clause, FIT took up the job of behalf of FACT, based on an arrangement
with FACT, which was approved by the government through another agreement between FIT
and government. Thus, the operations of FIT at that time were governed by three agreements
viz. agreement between government and FACT, FACT and FIT, FIT and Government.

26
Forest Industries Travancore Ltd became a government company in 1960, when government
of Kerala acquired majority share. In 1961, FACT changed its technology for the manufacture
of fertilizer and there by agreement with FACT practically expired. In 1962, a second hand
plant for manufacture of furniture was purchased and the same was installed.

The furniture manufacture commenced in 1963. Since the company is engaged in

manufacturing of wooden furniture, joineries and chemical treatment of wood and wooden
material. FIT Ltd is only public sector undertaking in Kerala solely engaged in the business of
wood products.

The main customers of the company are the government departments, organisations,
institutions and local bodies. The chief raw material that is timber is obtained from government
owned forest depots by participating in auctions conducted and from private parties through
tender.

During early seventies the company started exporting its furniture and allied item to the Gulf
countries. During the time the export were made through Kerala State Industrial Enterprises
(KSIE). But the export was not very attractive to FIT because of the presence of the
intermediary. Presently the company is not exporting any of its products and is now entering
to the domestic market.

3.2.2 MISSION OF THE COMPANY

The main mission of the company is the that the supply of qualified furniture and joineries at
competitive price to customers for customer satisfaction. It concerned for environmental and
safety of the company.

3.2.3 VISION OF THE COMPANY

Improving and sustaining healthy living conditions through conservation of biodiversity,

protection of environment, soil, water etc. and empowering forest tribes, women and other
weaker section of the society through scientific, transparent and responsible methods.

3.2.4 COMPETITORS

The main competitors of FIT are CADCO and SIDCO etc. Mainly FIT has two types of
customers, the state government and private members.

27
3.2.5 DIVISIONS OF FIT

1. Wooden products

2. Modular workstations

3. Interior decorations

4. Aluminium partitions

5. Civil contracts

6. Electrical contracts

3.2.6 HIGHLIGHTS

The company always has an attention to adopt and accept modern technologies in its plants.
They introduce several innovations and modifications schemes to achieve higher productivity
and energy conservation, environmental control and economy inputs.

The company markets their products with a view to profitability. FIT has no subsidiaries,
branches etc. They have only one office at Thaikkattukara, Aluva. They are only one
monopolist in this field.

3.2.7 PRODUCT PROFILE

The Forest Industries Travancore LTD was established in 1946, is only government owned
company in Kerala exclusively engaged in manufacture of wooden furniture and joineries.
Over the last six decades, FIT has served its past quite efficiently to provide high quality
furniture at reasonable rate. The high precision machinery and highly skilled work force ensure
that our product attain the best possible quality.

A part from wooden furniture, FIT also manufacture steel furniture, does custom interiors,
aluminium/steel fabrication, and modular work station for corporate civil/electrical works etc.
FIT has a wide range of home furniture and decor solutions to provide the warmth and comfort
of a relaxed family life. The range includes sofas, cabins, telephone stands, corner stands, etc.

For bedrooms FIT present more sophisticated, superior range of furniture, economically
designed bedroom tables and chairs ensure their no wastage of space and provide at most
comfort and relaxation.

28
Thoughtfully designed dining and kitchen furniture is also available in FIT, the perfectly
designed tables and chairs provide for restful meals. They are adaptable, affordable and are
here to stay, above all. The forest industries Travancore limited produces elegant and value for
money product that are last a life time.

Being a government of Kerala undertaking, there is no compromise on the quality of the

product. Only Nilambur teak and other high-qualified woods are use for making furniture and
what’s more, all furniture is making in accordance with Vasthu principles.

We have 500 sq. cm showroom situated at Thaikkattukara in our campus. We use only high
quality woods for our products and hence the durability. In order to further strengthen the same,
we have set up a quality assurance section headed by qualified and experienced wood
technologist.

FIT is specialised in excellent quality wood products manufactured from superior quality
timber by highly skilled employees. Government has already issued an order directing
government department organisation, institutions local bodies etc. to purchase its requirements
of wooden items from FIT without tender formalities.

Following are the quality wooden product available in company showroom;

• Dining table
• Dining chair with cushion seat
• Deluxe type settee set, round frame type cushion covered with best quality furnishing
cloth.
• Turned leg, settee set, reaper seat and back loose cushion covered with best quality.
• Cot with ornamental head board and leg board turned pieces.
• Bed side locker with shelf, complete in plywood and Formica.

• Towel rack with four hooks

• Easy chair plastic seat with long arm, turned legs
• Dressing table with oval shape mirror with two drawers and shelf.
• TV stand, turned legs with three steps.
• Divan coat turned legs with loose cushion and two round pillows with out head rest and
also with both side rest bord.
• Rocking chair with loose cushion.

29
• TV chair folding type with nylon cloth seat.
• Canvas chair with long arm rest without cloth, folding type.
• Teapoy, top glass, bottom reaper shelf.

1) DOMESTIC PRODUCTS :

• Dining table
• Chair
• Sofa
• Divan
• Almirah
• Study table
• Screen
• Settee
• Showcase
• Ladder
• Stool
• Cabinet (kitchen cabinet)
• Cot
• Stand
• Footrest

2) Furniture for government office and school :

• Chair
• Conference
• Benches
• Stools
• Flooring tiles
• Wall panelling

30
 3) Joinery

• Doors
• Windows
• Shutters
• Frames
• Ventilator

Raw material used:-

The raw material presently used are Teak, Ross wood, Anjali, hard wood and are available
from the government forest to FIT. Saw mill takes wood directly, without any kind of
seasoning. Wood has been an integral part of civilization.

It is one of the earliest known building materials. Wood requires small part of energy utilization
compared to very other building material (others need large input of energy to convert it to a
usable product).

The traditional timber like Teak, Rose wood, etc. are naturally durable and resistant to bio
degrading mechanism in nature. This quality is inbuilt in these species. With the advent of
modern technology and increased demand for wood, the time between feelings of the tree the
point of usage has dramatically come down. This also has a major problem on the quality of
wood. Therefore artificial seasoning is must.

FIT’s main outputs as follows;

1) Wooden products

2) Modular work stations

3) Interior decorations

4) Aluminium partitions

5) Civil contracts

31
3.2.8 LOCATION OF FIT

FIT is located at Thaikattukara, Aluwa. This is 15 km north of Kochi and 2 km south of Aluva
by the side of National Highway 47. The company possess 9.095 acres of land of which 1.475
acres is free hold land and 7.62 acres of land is lease hold land. The administrative and factory
buildings are situating in the lease hold land.

3.2.9 OBJECTIVES OF THE COMPANY

The main objectives of the company are listed below.

• To set the product at low price.

• To improve operational efficiency.

• To maintain optimum productivity.

• To increase the profit without sacrificing quality of products.

• To promote organisation development and to upgrade the quality of human resources.

• To improve the safety measures.

• To upgrade the machineries.

3.2.10.CORPORATIVE OBJECTIVE OF FIT

The corporative objective of the company are listed below.

▪ To produce and market the high quality products at lowest price.

▪ To improve operational efficiency to maintain optimum productivity.
▪ To increase profit without sacrificing quality of products.
▪ To promote organisation development and to upgrade the quality of human resources
the company to facilitate the survival of the company in the changing business
environment.
▪ To improve the safety measures and provide best working conditions to the workers in
the plant.
▪ To upgrade the machinery.

32
3.2.11 MANAGEMENT-FIT

There is a 9 member team of Board of directors to manage FIT. The managing director of the
company looks after the day-to-day affairs. The executive at different level help the MD in
carrying out his work smoothly. There are directors to assist chairman and MD. The directors
also include those nominated by the government of Kerala.

3.2.12 PROJECTS UNDERTAKEN BY FIT

➢ Modernization of work of D.C. Suits under MGP scheme at Kollam, Pathanamthitta

and Idukki collectorate.
➢ Prestigious setting arrangement work of the newly constructed Kerala Legislature
Complex.
➢ Furnishing of entire court rooms in the new High Court building at Ernakulam.
➢ Providing facilities for computerisation of Sub Registrar Office of all over Kerala.

3.2.13 FIT HAS COMPLETED CIVIL CONSTRUCTION OF

➢ Taluk Hospital Cherthala.

➢ Renovated Kodungalloor Cheraman masjid.
➢ Renovated Ramanilayam guest house.

3.2.13 TRADE UNION PRESENCE

FIT maintain a very healthy relation with employee trade unions. There is no unrest in past
few. The atmosphere of the trust and mutual understanding is developed between management
and labour union. There are four recognized trade union are

• FIT Staff and Workers Association

• FIT Employee Union

• FIT Staff and Workers Organisation

• FIT employee Federation

3.2.14 CUSTOMERS OF FIT

• Kerala Government

• Government Institutions

• Public

33
3.2.15 BUSINESS OPERATION

FIT is purchased in excellent quality wood products manufactured from superior quality timber
by highly skilled employees. Government have already issued an order direction the
government departments, organisation, institution, local bodies etc. to purchase its requirement
of wooden items from FIT without tender formalities. The company not engaged in
international trade.

3.2.16 ORGANISATION STRUCTURE

Organisation in business sense means the combine together of men, material, machinery,
method, money, management etc. Organisation structure indicates the classification of a work
and people in the organisation.

The company has a well-established organisation structure. There exists an effective business
management. In FIT organisation with narrow span is adopted. It has some advantages ie, close
supervision fast communication between subordinates and superiors are possible.

FIT follows the line or military organisation structure. The company has a centralised
departmental structure. The span of management in the organisation is narrow span which has
various advantages such as are in forcing authority relationship by the emphasis of status given,
prevention cause communication.

The present organisation structure has been effective in conduction operation at its optimum
level. It has encouraged team work and has helped to maintain good internal relationship. Unity
of command is maintained throughout the organisation.

Board of directors is at the top most position and managing director next to them. The various
functional managers come under the managing director of the of company take various decision
on behalf of the shareholders.

The major share of the company is held by the government. Board of directors includes that
nomination by the government. They are strategic decision and form various policies with the
help of managing director and other top level executive to overcome the tough competition.

The managing directors are responsible for smooth and effective functioning of the
organisation. They direct the activities of various function departments to achieve the
organisational goal.

34
3.2.17 ORGANIZATIONAL CHART

BOARD OF DIRECTOR

MANAGING DIRECTOR

PERSONNEL &
PURCHASE PRODUCTION PLANNING & FINANCE ADMIN.
MANAGER MANAGER MARKETING MANAGER MANAGER
MANAGER

ASSISTANT ASSISTANT ASSISTANT ASSISTANT ASSISTANT

MANAGER MANAGER MANAGER MANAGER MANAGER

STAFFS ASSISTANT SECURITY

STAFFS ESTIMATOR
ACCOUNTANT STAFFS

ACCOUNTANT
STAFFS
CLERK

STAFFS

35
 CHAPTER 4

DATA ANALYSIS AND INTERPRETATION

36
 TABLE NO. 4.1: AGE WISE CLASSIFICATION

Category No. of respondents Percentage

Less than 20 0 0

20-30 4 8

30-40 17 34

Above 40 29 58

Total 50 100

CHART NO.4.1 AGE WISE CLASSIFICATION

70

60

50

40

30

20

10

0
Less than 20 20-30 30-40 More than 40

INTERPRETATION

The above data shows that, 58% employees are above 40 years, 34 % of employees are between
30-40 years and 8% employees are between 20-30 years. That means most of the employees
are above 40 years and working there for a long time.

37
 TABLE NO.4.2: GENDER WISE CLASSIFICATION

Category No. of respondents Percentage

Male 44 88

Female 6 12

Total 50 100

CHART NO.4.2: GENDER WISE CLASSIFICATION

12%

Male
Female

88%

INTERPRETATION

The graph explains that out of 50 respondents 88 % of the respondents are male and 12% are
female.

38
 TABLE NO.4.3: EXPEIENCE OF EMPLYEES

Particulars No. of respondents Percentage

0-5 years 6 12
5-10 years 13 26
10-15 years 22 44
Above 15 years 9 18
Total 50 100

CHART NO.4.3: EXPEIENCE OF EMPLYEES

Above 15 years

10-15 years

5-10 years

0-5 years

0 5 10 15 20 25 30 35 40 45 50

INTERPRETATION

The above data shows that, 12% respondents have 1-5 years of experience, 26% of respondents
have 5-10 years of experience, 44% respondents have 10-15 years of experience and 18 %
respondents have above 15 years of experience. That means most of the respondents are
working there for a long time and have a good experience.

39
 TABLE NO. 4.4: AWARENESS OF EMPLOYEES ABOUT MOTIVATION
TECHNIQUE

Particulars No. of respondents Percentage

Very aware 22 44
Aware 18 36
Neither aware 7 14
Unaware 3 6
Very unaware 0 0
Total 50 100

CHART NO.4.4: AWARENESS OF EMPLOYEES ABOUT MOTIVATION

TECHNIQUE

50
44
45

40 36
35

30

25

20
14
15

10 6
5
0
0
Very aware Aware Neither aware Unaware veryunaware

INTERPRETATION

The above table and chart which shows that 44% of respondents have very aware and 36% of
respondents have aware about motivation technique. 14% of respondents have neither aware
and 6% of respondents have unaware about motivation technique.

40
 TABLE NO.4.5: CURRENT MOTIVATION PROGRAM IN FIT

Particulars No. of respondents Percentage

Very good 28 56
Good 10 20
Average 7 14
Poor 4 8
Very poor 1 2
Total 50 100

CHART NO.4.5: CURRENT MOTIVATION PROGRAM IN FIT

60

50

40

30

20

10

0
Very good Good Average Poor Very poor

INTERPRETATION

The above table and chart shows that 56% of respondents have opinion that current motivation
program in FIT is very good. 20% of respondents have opinion that current motivation program
is good. 14% of respondents have opinion that current motivation program is average and 8 %
respondents have opinion that current motivation program is poor and rest of the 2%
respondents have opinion that current motivation program is very poor. Overall respondents
have positive opinion regarding current motivation program in FIT.

41
 TABLE NO.4.6: MOTIVATION BY DIFFERENT INCENTIVES

Particulars No. of respondents Percentage

Financial 0 0

Non-financial 0 0

Both 50 100

Total 50 100

CHART NO. 4.6: MOTIVATION BY DIFFERENT INCENTIVES

100

90

80

70

60

50

40

30

20

10

0
Financial Non-financial Both

INTERPRETATION

The above table and chart shows 100% of respondents are motivated by both financial and non-
financial incentives.

42
 TABLE NO.4.7: SATISFACTION ABOUT MOTIVATION INCENTIVES
PROVIDED BY THE COMPANY

Particulars No. of respondents Percentage

Highly satisfied 1 2
Satisfied 3 6
Neutral 28 56
Dissatisfied 16 32
Highly dissatisfied 2 4
Total 50 100

CHART NO.4.7: SATISFACTION ABOUT MOTIVATION INCENTIVES

PROVIDED BY THE COMPANY

4% 2%
6%

32% Highly satisfied

Satisfied
Neutral
Dissatisfied
Highly dissatisfied

56%

INTERPRETATION

The above table and chart shows that out of 50 respondents only 2% of the respondents are
highly satisfied, 6% of respondents are satisfied, 56% of respondents are neutral, 32% are
dissatisfied and 4% are highly dissatisfied with incentives provided by the company.

43
 TABLE NO.4.8: INVOLVEMENT OF EMPLOYEES IN DECISION MAKING
CONNECTED WITH THEIR DEPARTMENT

Particulars No. of respondents Percentage

Yes 10 20

Occasionally 27 54

No 13 26

Total 50 100

CHART NO.4.8: INVOLVEMENT OF EMPLOYEES IN DECISION MAKING

CONNECTED WITH THEIR DEPARTMENT

No

Occasionally

Yes

0 10 20 30 40 50 60

INTERPRETATION

The above table and graph shows that 20% of the respondence have the opinion that
management involve employees in decision making connected with their department, 54% are
occasionally and 26% have the opinion that management doesn’t involve employees in
decision making connected with their department.

44
 TABLE NO.4.9: MOTIVATION TECHNIQUE HELPS TO REDUCE STRESS

Particulars No. of respondents Percentage

Strongly agree 23 46
Agree 21 42
Neutral 4 8
Disagree 2 4
Strongly disagree 0 0
Total 50 100

CHART NO.4.9: MOTIVATION TECHNIQUE HELPS TO REDUCE STRESS

50

45

40

35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

INTERPRETATION

The above table and graph shows that 46% of respondents strongly agree and 42% respondents
agree that motivation technique helps to reduce stress. 8% respondents are neutral and remining
4% disagree with motivation technique helps to reduce stress.

45
 TABLE NO.10: INFLUENCE OF INCENTIVES AND OTHER BENEFITS ON
EMPLOYEE PERFORMANCE

Particulars No. of respondents Percentage

Always 40 80
Often 8 16
Sometimes 2 4
Rarely 0 0
Never 0 0
Total 50 100

CHART NO. 4.10: INFLUENCE OF INCENTIVES AND OTHER BENEFITS ON

EMPLOYEE PERFORMANCE

80

70

60

50

40

30

20

10

0
Always Often Sometimes Rarely Never

INTERPRETATION

The above chart and graph clearly shows 80% of the respondents have opinion that incentives
and other benefits always influence employee performance. 16% of respondents have opinion
that incentives and other benefit often influence employee performance. 4% of respondents
have opinion that incentives and other benefits sometimes influence employee performance.

46
 TABLE NO.4.11: EMPLOYEES OPINION ABOUT BONUS IS PROVIDED AT
RIGHT TIME

Particulars No. of respondents Percentage

Strongly agree 28 56
Agree 16 32
Neutral 5 10
Disagree 1 2
Strongly disagree 0 0
Total 50 100

CHART NO.4.11: EMPLOYEES OPINION ABOUT BONUS IS PROVIDED AT

RIGHT TIME

60

50

40

30

20

10

0
Strongly agree Agree Nuetral Disagree Strongly disagree

INTERPRETATION

The above table and chart clearly reveal that 56% of respondents strongly agree and 32% of
respondents agree that bonus is provided at right time. 10% respondents are neutral and
remining 2% disagree with bonus is provided at right time.

47
 TABLE NO.4.12: SATISFACTION ABOUT TRAINING OPPORTUNITIES
PROVIDED BY THE COMPANY

Particulars No. of respondents Percentage

Highly satisfied 4 8
Satisfied 17 34
Neutral 23 46
Dissatisfied 5 10
Highly dissatisfied 1 2
Total 50 100

CHART NO. 4.12: SATISFACTION ABOUT TRAINING OPPORTUNITIES

PROVIDED BY THE COMPANY

Highly satisfied
Satisfied
Neutral
Dissatisfied
Highly dissatisfied

INTERPRETATION

The above table and chart shows 8% of the respondents are highly satisfied and 34% of
respondents are satisfied on training opportunity provided by the company. 46% are neutral,
10% are dissatisfied and 2% are highly dissatisfied on training opportunity provided by the
company.

48
 TABLE NO. 4.13: RANKING OF THE FACTORS WHICH MOTIVATE
EMPLOYEES MOST

Factors 1 2 3 4 5 6 7 Obtained Mean Rank

Score

Salary 105 120 75 0 0 0 0 300 42.9 1

Increment

Promotion 70 120 25 20 0 10 5 250 35.7 2

Bonus 35 0 50 60 30 10 5 190 27.1 3

Recognition 105 30 50 40 15 10 0 250 35.7 2

Medical 0 30 25 40 20 40 0 165 23.6 4

Allowance

Retirement 35 0 0 20 75 10 10 150 21.4 5

Benefit

Canteen 0 0 0 20 15 20 30 85 12.1 6
Facilities

INTERPRETATION

The above table shows that salary increment motivate employees most.

49
 TABLE NO.4.14: SATISFACTION WITH MEDICAL AND OTHER FRINGE
BENEFITS PROVIDED BY THE COMPANY

Particulars No. of respondents Percentage

Highly satisfied 2 4
Satisfied 12 24
Neutral 21 42
Dissatisfied 11 22
Highly dissatisfied 4 8
Total 50 100

CHART NO.4.14: SATISFACTION WITH MEDICAL AND OTHER FRINGE

BENEFITS PROVIDED BY THE COMPANY

45

40

35

30

25

20

15

10

0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

INTERPRETATION

The above table and chart explain that out of 50 respondents 4% of respondents are highly
satisfied, 24% are satisfied, 42% are neutral, 22% are dissatisfied and 8% are highly dissatisfied
with medical and other fringe benefits provided by the company.

50
 TABLE NO.4.15: OPINION ABOUT OPPORTUNITIES FOR ADVANCEMEENT

Particulars No. of respondents Percentage

Strongly agree 10 20
Agree 12 24
Neutral 14 28
Disagree 11 22
Strongly disagree 3 6
Total 50 100

CHART NO.4.15 OPINION ABOUT OPPORTUNITY FOR ADVANCEMENT

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

0 5 10 15 20 25 30

INTERPRETATION

From the above table and chart shows 20% respondents strongly agree and 24% respondence
agree with opportunities for advancement enough in this company. 28% are neutral, 22% are
disagree and 6% are strongly disagree with the statement.

51
 TABLE NO.4.16 REASONABLE PERIODICAL INCREASE IN THE SALARY

Particulars No. of respondents Percentage

Strongly agree 7 14
Agree 12 24
Neutral 22 44
Disagree 6 12
Strongly disagree 3 6
Total 50 100

CHART NO.4.16: REASONABLE PERIODICAL INCREASE IN THE SALARY

Sales

Strongly agree
Agree
Neutral
Disagree
Strongly disagree

INTERPRETATION

From the above table and chart shows 14% of them are strongly agree with the reasonable
periodical increase in the salary. 24% of respondents agree, 44% of respondents neutral, 12%
of respondents disagree and 6% of respondents strongly disagree with the statement.

52
 TABLE NO. 4.17: OPINION ABOUT JOB SECURITY EXIST IN THE COMPANY

Particulars No. of respondents Percentage

Strongly agree 33 66
Agree 11 22
Neutral 6 12
Disagree 0 0
Strongly disagree 0 0
Total 50 100

CHART NO. 4.17: OPINION ABOUT SECURITY EXIST IN THE COMPANY

70

60

50

40

30

20

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

INTERPRETATION

The above table and graph explains that 66% of the respondents are strongly agree that job
security exist in the organisation. 22% of respondents agree, 12% of respondents are neutral
opinion on the statement. 0% respondents are disagree and strongly disagree with the statement.

53
 TABLE NO.4.18: PERFORMANCE APPRAISAL ACTIVITIES ARE HELPFUL TO
GET MOTIVATED

Particulars No. of respondents Percentage

Strongly agree 18 36
Agree 13 26
Neutral 19 38
Disagree 0 0
Strongly disagree 0 0
Total 50 100

CHART NO. 4.18: PERFORMMANCE APPRAISAL ACTIVITIES ARE HELPFUL

TO GET MOTIVATED

40

35

30

25

20

15

10

0
Strongly agree Agree Neutral Disagree Strongly disagree

INTERPRETATION

The above table and chart explains that 36% of respondents strongly agree and 26% of
respondent agree that performance appraisal activities are helpful to get motivated. 38% have
neutral opinion and no one disagree or strongly disagree with the statement.

54
 TABLE NO. 4.19: EFFECTIVE PROMOTIONAL ACTIVITIES IN THE
ORGANISATION

Particulars No. of respondents Percentage

Strongly agree 7 14
Agree 15 30
Neutral 28 56
Disagree 0 0
Strongly disagree 0 0
Total 50 100

CHART NO.4.19: EFFECTIVE PROMOTIONAL ATIVITIES IN THE

ORGANISATION

60

56
50

40

30
30

20

10 14

0 0
0
Strongly agree Agree Neutral Disagree Strongly disagree

INTERPRETATION

The above table and graph explain that 14% of respondents strongly agree and 30% of
respondent agree that company have effective promotional activities. 56% of respondents have
neutral opinion and no one disagree or strongly disagree with the statement.

55
 TABLE NO.4.20: SUPPORT FROM CO-WORKERS ARE HELPFUL TO GET
MOTIVATED

Particulars No. of respondents Percentage

Strongly agree 17 34
Agree 14 28
Neutral 19 38
Disagree 0 0
Strongly disagree 0 0
Total 50 100

CHART NO.4.20: SUPPORT FROM CO-WORKERS ARE HELPFUL TO GET

MOTIVATED

Sales

0%
0%

34%
Strongly agree
38% Agree
Neutral
Disagree
Strongly disagree
28%

INTERPRETATION

The above table and chart explains 34% of respondents strongly agree and 28% of respondents
agree that support from co-workers are helpful to get motivated. 38% of respondents have
neutral opinion and no one disagree or strongly disagree with support from co-workers are
helpful to get motivated.

56
 TABLE NO.4.21: COMPANY RECOGNIZE AND ACKNOWLEDGE EMPLOYEES
WORK

Particulars No. of respondents Percentage

Strongly agree 6 12
Agree 14 28
Neutral 21 42
Disagree 9 18
Strongly disagree 0 0
Total 50 100

CHART NO.4.21: COMPANY RECOGNIZE AND ACKNOWLEDGE EMPLOYEES

WORK

45

40

35

30

25

20

15

10

0
STRONGLY AGREE AGREE NEUTRAL DISAGREE STRONGLY
DISAGREE

INTERPRETATION

The about chart and graph clearly depicts that 12% of respondents strongly agree and 28% of
respondents agree that company recognize and acknowledge employees work. 42% of
respondents are neutral and 18% respondents disagree that company recognize and
acknowledge employees work.

57
 TABLE NO.4.22: COMPANY HAS GOOD WORKING ENVIRONMENT

Particulars No. of respondents Percentage

Strongly agree 16 32
Agree 7 14
Neutral 27 54
Disagree 0 0
Strongly disagree 0 0
Total 50 100

CHART NO.4.22: COMPANY HAS GOOD WORKING ENVIRONMENT

0%
0%
32%
Strongly agree
Agree
Neutral
54%
Disagree
Strongly disagree

14%

INTERPRETATION

Above table and graph clearly reveal that 32% of respondents are strongly agree and 14% agree
that company has good working environment. 14% of respondents are neutral and no one
disagree or strongly disagree with the statement.

58
 TABLE NO.4.23: COMPANY TAKE MORE EFFORT TO IMPROVE EMPLOYEE
MOTIVATION

Particulars No. of respondents Percentage

Strongly agree 1 2
Agree 5 10
Neutral 19 38
Disagree 16 32
Strongly agree 9 18
Total 50 100

CHART NO.4.23: COMPANY TAKE MORE EFFORT TO IMPROVE EMPLOYEE

MOTIVATION

Strongly disagree

Disagree

Neutral

Agree

Strongly agree

0 5 10 15 20 25 30 35 40

INTERPRETATION

Above table and chart clearly reveals that 2% respondents strongly agree and 10% respondents
agree that company take more effort to improve employee motivation. 38% respondents are
neutral, 32% disagree and 18% respondents strongly disagree that company take more effort
to improve employee motivation.

59
1)SPEARMAN’S RANK CORRELATION
Spearman’s rank correlation tests to analyse the relation between motivation technique helps
to reduce stress and support from co-workers is helpful to get motivated.

Motivation techniques helps to reduce Support from co-workers is helpful to get

stress motivated

46 34

42 28

8 38

4 0

0 0

Let, Motivation technique helps to reduce stress be ‘X’

Support from co-workers is helpful to get motivated be ‘Y’

Spearman’s rank correlation,

Rs = 1 – 6* ƩD^2

N^3-N

X Y R1 R2 D1(R1-R2) D ^2

46 34 1 2 -1 1

42 28 2 3 -1 1

8 38 3 1 2 4

4 0 4 4 0 0

0 0 5 5 0 0

Total 6

60
Rs = 1 – 6* ƩD^2

N^3-N

Where, N=5

N^3=125

Rs =1- 6*6

125-5

= 1-36

120

= 1-0.3 = 07

Conclusion:

There is a high degree of positive correlation between motivation techniques helps to reduce
stress and support from co-workers helpful to get motivated.

61
2)HYPOTHESIS TEST

Ho : There is no significant relation between performance appraisal activities are helpful to get
motivated and company take more effort to improve employee motivation.

H1 : There is a significant relation between performance appraisal activities are helpful to get
motivated and company take more effort to improve employee motivation.

Attributes No. of respondents No. of respondents Total

Highly satisfied 1 18 19
Satisfied 5 13 18
Neutral 19 19 38
Dissatisfied 16 0 16
Highly dissatisfied 9 0 9
Total 50 50 100

Chi-square test,

Observed Expected O-E (O-E) ^2 (O-E)^2

Frequency (O) Frequency (E) E
1 9.5 -8.5 72.25 7.6052
5 9 -4 16 1.7777
19 19 0 0 0
16 8 8 64 8
9 4.5 4.5 20.25 4.5
18 9.5 8.5 72.25 7.6052
13 9 4 16 1.7777
19 19 0 0 0
0 8 -8 64 8
0 4.5 -4.5 20.25 4.5
TOTAL 43.7658

62
Calculated value = 43.7658

Level of significance = 5%

Degree of freedom = (r-1)*(2-1)

r=5

c=2

Degree of freedom = (5-1)*(2-1)

= 4*1

=4

Table value = 9.488

Conclusion :

Since the calculated value (43.7658) is greater than the table value (9.488), so we reject the
null hypothesis(H0). There is no significant relation between performance appraisal activities
are helpful to get motivated and company take more effort to improve employee motivation.

63
 CHAPTER 5

FINDINGS, SUGGESTIONS, CONCLUSION

64
5.1 FINDINGS

❖ 58% of respondents from the age of above 40 years.

❖ Majority of respondents are male.

❖ 44% of respondents are 10-15 years experienced.

❖ Majority of respondents are aware about motivation techniques.

❖ Most of the respondents says current motivation program provided in FIT is very good.

❖ Whole respondents are motivated by both financial and non-financial incentives.

❖ Only 2% of respondents are highly satisfied on motivation incentives provided by the

company.

❖ 20% of respondents are not involved in decision making.

❖ Majority of respondents agree motivation techniques helps to reduce stress.

❖ Majority of respondents says incentives and other benefits influence employee

performance.

❖ 56% of respondents strongly agree with bonus is provided at right time.

❖ Only 8% of respondents are highly satisfied on training opportunities provided by the

company.

❖ Salary increment motivate employees more.

❖ 22% of respondents are dissatisfied with medical and other fringe benefits provided by
the company.

❖ Only 20% of respondents are strongly agree opportunities for advancement are enough
in the company.

65
❖ Only 12% of respondents are disagree on the statement reasonable periodical increase
in the salary.

❖ 66% of respondents are strongly agree that job security existing in the company.

❖ No one disagree the statement performance appraisal activities are helpful to get
motivated.

❖ 30% of respondents are agree the statement effective promotional activities existing in
the organisation.

❖ 34% strongly agree on support from co-workers are helpful to get motivated.

❖ 18% of respondents disagree the statement company recognize and acknowledge

employees work.

❖ 54% of employees are neutral on company has good working environment.

❖ 18% of respondents strongly disagree on company take more effort to improve

employee motivation.

66
5.2 SUGGESTIONS

➢ Skills of the employees should be appreciated. Proper recognition should be given to

the work done by them.

➢ The organisation should take more effort to motivate the employees, it will help to
increase the productivity of the organisation.

➢ Periodical performance appraisal should be done to motivate employees.

➢ The employees has to be participated in the decision making process to motivate them.

➢ Better training and career development opportunities should be given to the employees
for their development.

➢ Organisation try to implement reasonable periodical increase in the salary. It will help
to motivate employees more.

➢ Provide more opportunities for advancement to the workers by rotate employee role,
support work-life balance, etc.

➢ Incentives and other benefits influence employee performance. So provide better

incentives and other benefits to the employees. It will help motivate employees and
increase their productivity.

67
5.3 CONCLUSION

The study reveals that the motivational program procedure in Forest Industries
Travancore ltd is found good, but not highly effective. The study was conducted
among 50 employees and collected information through structured questionnaire.
The study helped to find various incentives which motivate the employees to
improve their performance. Motivation plays an important role in the company.
According to the survey, what motivate one employee may not motivate the other.
So, the management has to implement a proper motivational technique which
motivates every employee in the organisation.

The study conclude that motivation provided by the company has a strong effect
on the job performance of employees. Every organisation has to provide adequate
motivation to increase the productivity of the employees and thereby achieving
the objectives of the organisation.

68
BIBILIOGRAPHY

69
WEBSITE:

▪ www.fitkerala.co.in

▪ www.managementstudyguide.com

▪ www.Shodhganga.inflibnet.ac.in

BOOKS:

▪ Research Methodology Methods and Techniques, second revised edition –

Kothari C.R (2001)

▪ Research Methodology, 3rd edition - Kothari C.R (2006)

▪ Human Resource Management 3rd Edition - Fisher Schoenfelt Shaw

▪ Human Resource Management 6th Edition - Aswathappa K (2010)

REFERENCES:

▪ Bawa, M, A. (2017) Employee motivation and productivity: A review of literature and

implications for management practice. International Journal of Economics, Commerce
and Management.
▪ Sajuyigbe, A.S, Olawoye, B.O & Adeyemi, M.A. (2013) Impact of Reward on
Employee Performance in Selected Manufacturing Companies in Ibadan, Oyo state,
Nigeria. International Journal of Arts and Commerce, 2(2), 27-32
▪ Singh, P., Bhandarker, A. & Rai, S. (2012). Millennials and the Workplace: Challenges
for Architecting the Organizations of Tomorrow. New Delhi, India: Sage Publications.
▪ Uzonna, U.R. (2013). Impact of Motivation on Employees Performance: A Case Study
of CreditWest Bank Cyprus. Journal of Economics and International Finance. 5(5),
199-211.
▪ Velnampy, T. (2007). Factors Influencing Motivation: An Empirical Study of Few
Selected Sri-Lankan Organizations. Researchgate.

70
▪ Griffeth, R. W.. & Gaertner, S. (2001). A Role for Equity Theory in the Turnover
Process: An Empirical Test.
▪ Carslen, K.(2003), “Sales motivation: one size does not fit all,” Selling, October, pp.14–
15.
▪ Nafisa Rounok1 Mosammod Mahamuda Parvin (2013) Fostering Employee
Performance
▪ De Simone (2015) Expectancy Value Theory: Motivating Healthcare Workers.
American International Journal of Contemporary Research. Vol. 5, No. 2
▪ Lunenburg, F. C. (2011). Expectancy Theory of Motivation: Motivating by Altering
Expectations. International Journal of Management, Business and Administration,
15(1), 1-6.
▪ Thomas R. T (2011) Motivating Employees with Limited Pay Incentives Using
Equity Theory and the Fast Food Industry as a Model. International Journal of
Business and Social Science.
▪ Miner, J. B. (2003). The rated importance, scientific validity and practical usefulness
of organizational behavior theories: A quantitative review. Academy of Management
Learning and Education, 2, 250–268.

71
ANNEXURE

72
EFFECTIVENESS OF MOTIVATION INCENTIVES ON JOB PERFORMANCE OF
EMPLOYEES WITH SPECIAL REFERENCE TO FIT

QUESTIONNAIRE

Name :

Age :

Gender :

Male Female Others

1) How long have you been working in this organization?

a) 0-5 years b) 5-10 years

c) 10-15 years d) more than 15 years

2) Are you aware of the motivation technique?

a) Very aware b) Aware c) Neither aware

d) Unaware d) Very unaware

3) How would you rate the current motivation program in FIT?

a) Very good b) Good c) Average

d) Poor e) Very poor

4) Which type of incentive motivates you more?

a) Financial b) Non-Financial c) Both

73
 5) How satisfied are you with the incentives provided by the company?

a) Highly satisfied b) Satisfied c) Neutral

d) Dissatisfied e) Highly dissatisfied

6) Does management involve you in decision making connected to your

Department?

a) Yes b) Occasionally c) No

7) Motivation technique helps to reduce stress

a) Strongly Agree b) Agree c) Neutral

d) Disagree e) Strongly Disagree

8) Incentive and other benefit influence employee performance

a) Always b) Often c) Sometimes

d) Rarely e) Never

9) The bonus is provided to you at the time

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly Disagree

10) How far you are satisfied with the training opportunities provided by the company?

a) Highly satisfied b) Satisfied c) Neutral

d) Dissatisfied e) Highly dissatisfied

74
11) Rank the following factors which motivate you the most

(Rank 1,2,3,4,5,6,7 respectively)

a) Salary increment

b) Promotion

c) Bonus

d) Recognition

e) Medical allowance

f) Retirement benefit

g) Canteen facility

12) How satisfied are you with the medical and other fringe benefit provided by the
company?

a) Highly Satisfied b) Satisfied c) Neutral

d) Dissatisfied e) Highly dissatisfied

13) Opportunities for advancement are enough in this company

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

14) Reasonable periodical increase in the salary

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

75
15) Job security exist in the company

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

16) Performance appraisal activities are helpful to get motivated

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

17) Effective promotional activities in the organisation

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

18) Support from co-workers is helpful to get motivated

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

19) Company recognise and acknowledge your work

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

20) Company has good working environment

a) Strongly agree b) Agree c) Neutral

d) Disagree Strongly disagree

76
21) Company take more effort to improve employee motivation

a) Strongly agree b) Agree c) Neutral

d) Disagree e) Strongly disagree

77