Contents

Sl.no TITLE PAGE NO.

1 CHAPTER 1
1.1 Introduction
1.2 Objectives of study
1.3 Scope of study

2
CHAPTER 2
COMPANY PROFILE
3 CONCLUSION
EFFECTIVENESS OF REWARD SYSTEM ON MOTIVATIONAL LEVEL OF EMPLOYEES

1.Introduction:

Rewards are what employees receive for performing well. Sometimes these rewards come
from the organization in the form of money, recognition and promotions. Rewards can also
consist of feelings from having performed well in work. It can be said that rewards are very
powerful motivators of performance. Organizations need various types of performance
from their employees. They need them to become active members of the organization,
they need them to do their job as it has been defined and they need their employees to
improve their performance. In order to achieve improvements in performance different
reward systems must be applied. Reward systems exist in order to motivate employees to
work towards achieving strategic goals which are set by entities. Reward management is
not only concerned with pay and employee benefits. It is equally concerned with non-
financial rewards such as recognition, training, development and increased job
responsibility. to as the hedonic function of rewards. An employee does something because
it is rewarding and produces a pleasant feeling. The first definition of rewards is normally
labelled as extrinsic rewards whereas the second definition is known as intrinsic reward.

2. Definition of reward system:

An employee’s compensation, usually referred to as tangible returns, includes cash
compensation (i.e., base pay, cost of living and merit pay, short-term incentives, and long
term incentives) and benefits (i.e., income protection, work life focus, tuition
reimbursement and allowances). However, employees also receive intangible returns, also
referred to as relational returns, which include recognition and status, employment
security, challenging work and learning opportunities. A reward system is the set of
mechanisms for distributing both tangible and intangible returns as part of an employment
relationship.

3.Characteristics of the reward system.

There are some characteristics or features that a good rewarding system must possess:

1. A person receiving the rewards must feel the importance of such rewards
2. The rewards should be distributed among the employees fairly and equally without
any discrimination on the basis of favouritism, gender, race, religion, etc.
3. Rewards should be visible so that the employee can feel the importance of such
rewards
4. Different rewards must be given to the employees for different levels of
performance. So, it makes the characteristics of the reward system as the reward
systems are flexible
5. Rewards should not be so expensive such that they can increase the expectation of
the employees

4. Advantages and disadvantages of reward system.

A. Advantages.
1. Increase Productivity.
2. Stimulates development and career progression.
3. Bring a sense of satisfaction and builds morale.
4. Enhance team work spirit.
5. Creates a strong employer brand.
6. Attract potential candidates.

1.Increase Productivity:
 Rewarding and recognition tends to increase employee productivity in the workplace. It
makes them go the extra mile. Engagement at work stimulates teamwork spirit and acts as
a catalyst for high performance. Make sure that you reward and recognize your team
timely.

2.Stimulates development and career progression:

Employees tend to do more when they are recognized and rewarded for good work. It
encourages development and career growth since it puts the employee in the position to
do more and elevate their work performance. It gives employees morale to do more and
exceeding the expectations the company has on them.

3. Brings a Sense of Satisfaction & Builds Morale:

Reward and recognition cultivate a positive relationship between employers and
employees. The employer will benefit from a satisfied employee delivering good results. On
the other hand, a recognized and rewarded employee will become confident and satisfied
with their work. Enhancing employee morale can contribute to lowering the turnover rate.

Enhances Teamwork Spirit:

There is a say that if you want to go fast go alone but if you want to go far go together. It is
known that teamwork is a better way of achieving goals faster than “working in a solo”
mentality. When employees are given the chance to recognize their colleagues for good
performance. It further encourages friendships and positive work relationships. A healthy
competition among employees is good for business.

5. Creates a Strong Employer Brand:

Employees talk and share experiences with those of other companies. A company that
recognizes and rewards employees builds a positive brand when its employees talk
positively about it. Organically, the company becomes recognized for its best HR practice
and this can impact the way it works with external stakeholders. The company that
recognizes and rewards its employees will not only be known for its productivity but also
for its good leadership and people management skills

6. Attracts Potential Candidates:

Jobseekers like to work for a good workplace and one that recognizes and rewards its
employees. Rewarding and recognizing the achievements of employees will attract high
potential candidates.

7.Motivation:
Reward systems were developed for the purpose of motivating the employees of the

organization so that their productivity can be increased which led to the growth of an

organization. Reward systems establish the goals for the employees that they have to

achieve in order to get the rewards. Motivation helps in making the employee more

productive which as a result helps in the growth of the company. Therefore, it is beneficial

for both the employee and the employer.

8.Collaborative efforts:

Employees in the organization work towards the achievement of goals of the team also.

This helps in strengthening the relationship between the teams. The bond between the

peers become strong and there is a relation of trust and confidence between the superiors

and the subordinates.

B. Disadvantages.

1.Employee Opinion and Public Sentiment.

2.Inequitable employees rewards.

3.Employee entitlement.

4.Employees reward motivation.

5.Increased cost.

6.Planning and execution.

7.Lack of long term benefits.

8.Motivational issues.

1.Employee opinion on public sentiment:

Ones of the biggest disadvantages to having an employee reward program is how

employees perceive certain rewards and, in the case of highly compensated executives

how the general public perceives them. Employee reward programs that receive the most

scrutiny are usually within organizations perceived most likely to also grant golden

parachutes. During times of high unemployment rates, public criticism of employee reward

programs for executives is elevated.

2.Inequitable Employee Rewards:

Based on the size of your workforce, your organization's compensation structure and

industry, some employee reward programs can be cost-prohibitive. Organizational success

requires the contributions of all employees. Another disadvantage of employee reward

programs is that they may not demonstrate the company's commitment to workplace

equity.

3.Employee Entitlement:

Organizations that implement rewards programs that increase year after year risk

employees believing they are entitled to ever-increasing bonuses and rewards for simply

doing their jobs. Human resources best practices definition of employee rewards is more closely
aligned with rewarding employees who make remarkable contributions to the

organization success. When employees consistently meet performance expectations

without going the extra step or demonstrating commitment, loyalty and motivation, they

do not always deserve a reward. Informal recognition such as an executive handwritten

note of appreciation often can be more effective than a monetary reward. It also has the

potential of minimizing, and eventually eliminating, employees' sense of entitlement.

4.Employee Reward Motivation:

Developing an employee rewards program to improve employee retention can be

problematic, particularly because many employees cite ineffective leadership as the reason

for resigning. An employee rewards program with the intent of motivating workers and

reducing turnover can be costly and counterproductive. Employees who are disengaged or

have low morale are more likely to choose satisfying working relationships and challenging

work assignments over monetary rewards. An employee rewards program that bribes

employees ultimately will fail, and the company will have very little to show for its efforts

except evidence of poorly spent human resources funds.

5.Increased costs:

The biggest disadvantage of a reward system for the employer is the increase in the cost

due to such a system. As the reward system consists of many different elements i.e.

monetary compensation to employees, prizes, etc. which increases the cost incurred by the
employer. These all benefits are given to the employees out of the business profits and if

the number of performers in the organization is very large so a large number of gifts are

required to reward all those employees which becomes difficult for the organization.

6.Planning and execution:

Reward system requires planning and execution process which is very time-consuming. In

order to reward the employees on the basis of their actual work performances in the

organization there arises a need to evaluate the performance of each and every employee

to decide about the gift that is to be given to the employee. Different aspects of employee’s

performance are needed to be studied before actually rewarding the employee.

7.Lack of long-term benefits:

The other disadvantage faced by the organization is the lack of long-term benefits.

Monetary and nonmonetary both the rewards are not able to provide any benefits to the

employees that can be retained for a long period of time. The benefits will be there for a

specific period of time and fade soon. So the employee cannot be motivated for a long time with
such rewards and they will not feel the benefits after a particular period. Only small

term benefits can be provided to the employees through such reward systems.

8.Motivation issues:

Reward system raises the issue of motivation. The employee who has performed well in the

organization in a particular will be rewarded, praised, and recognized in the organization

and the one who does not perform well during that particular point in time will lose his

morale and confidence which results in lack of motivation in other employees who are not

rewarded.

5.Importance of the reward system.

The reward systems are important for every business organization as they help in attracting

the employees towards an organization. Reward systems also act as a great motivator for
the employees of an organization because in order to receive some extra benefits the

employee will do more hard work and do the work with full dedication and that comes only

with the motivation. The other importance of the reward systems in the organization is that

it helps in retaining the potential employees in the organization for a long time period.

1. Mutual benefits.

2. Motivation.

3. Absenteeism.

4. Loyalty.

5. Teamwork.

1.Mutual benefits:

The reward systems are mutually beneficial for the employee as well as the employer. The

employee who gets the reward in return for his contribution to the organization will be

more committed towards the work which increases the productivity of the employees in an

organization and that in turn will help in the growth of the organization.

2.Motivation:

The reward systems act as a great motivator because when the employee is praised and

recognized for his excellent work he feels motivated and his confidence boosts up.

3.Absenteeism:

Absenteeism also reduces in the organization with the introduction of reward systems. In

order to do more work to get the rewards and recognition, the employee will be regular in

his work. He will decrease the number of his leave as he has clearly defined goals and

objectives on the completion of which rewards can be obtained. So, without taking leaves,

he will complete the tasks assigned to him.

4.Loyalty:
Reward systems help in increasing loyalty amongst the employees. An employee who is

rewarded will be happy working with the organization and remain loyal to the organization

as he feels like a valued employee of the organization.

5.Teamwork:

Reward system builds a team spirit within the employees in an organization as they want to

complete the tasks on time without conflicts to ensure the benefits that the whole team

can get from the work done.

Objectives of the reward system.

There are some basic objectives of the reward system. These are as follows:

1. Attraction and reaction.

2. Motivation for performance.

3. Create a positive organizational culture.

4. Improvement of skill and knowledge.

Types of reward system.

1. Intrinsic rewards.

2. Extrinsic rewards.

3. Financial rewards.

4. Non financial rewards.

5. Performance based rewards.

6. Membership based rewards.

1.Intrinsic rewards:

Intrinsic rewards are the type of reward in which the employee feels rewarded due to the
satisfaction that he obtains from his job itself. Intrinsic rewards form the parts of self-

actualization needs and esteem needs. These rewards are self-initiated which is the result

of job satisfaction, completion of tasks effectively and efficiently, pride for the

accomplishment of work, or feel contented on being the part of the team and the

organization.

2.Extrinsic rewards:

Extrinsic benefits are the type of benefits that are being provided by the employer to an

employee. These are the extra or the supplementary benefits that an employee receives

along with the compensation due to his performance in the organization. Extrinsic rewards

are capable of fulfilling the physiological and safety needs of the employee. These benefits

may be either in monetary terms or other benefits that are nonmonetary and are given by

management mainly most of the times.

3.Financial rewards:

Financial rewards are the type of rewards which are mainly important for the well-being of

an employee. These rewards can be in the form of wages, bonuses, profits, incentives, and

other monetary benefits in terms of pension plans, sick leaves, paid vacation, medical

insurance, etc. which can be used to fulfill the material needs of the employee.

4.Non-financial rewards:

These types of rewards do not contribute to the financial well-being of the employees. Non-

financial rewards are given for on the job development of the employees in the form of the

improved infrastructure of the organization, improved parking spaces, lucrative job titles,

business cards, etc. Non-financial reward systems make the job more attractive to the

employees which motivate them to work more and increases their productivity as a result.

5. Performance-based rewards:

Performance-based rewards are the type of rewards which are given to employees on the

basis of their actual performances in the organization. Rewards are different for the

different performances because if the best performer is rewarded with the same reward as
that of the least performer there will be no difference between the two performances andthe best
performer will lose his morale. So, performance-based rewards are given as per

the performances of the employees.

6. Membership based rewards:

This is the type of reward systems that are given for being a member of the organization.

These rewards are basically given to the employees for being a member of an organization

for a long time. Membership can be on the basis of seniority in the organization, profit

sharing, benefits, etc.

6.Purpose of the reward system.

An employee reward system serves the following basic purposes:

1. Employee engagement.

2. Non monetary recognition.

3. Business reputation.

4. Reduce turnovers.

1.Employee engagement:

Employee engagement is the basic purpose of the reward system. Reward system develops

a sense of motivation and self-confidence in the employee. He finds himself the valued

employee of the organization for which the organization shows care and take care of his

needs and desire which increases the engagement of employee in the organization and

boosts the morale of the employees. Reward system makes employees enthusiastic and

encourages them to work effectively and efficiently.

2.Non-monetary recognition:

It has been proved from various researches or studies that the non-monetary recognitions

are directly linked to the motivation of the employees. Non-monetary benefits are the
rewards that help to motivate the employees to a great extent. When the employees are

recognized and appreciated by the employer in front of all the employees of the

organization their motivation increases to the next level.

3.Business reputation:

Reward systems also help in maintaining the reputation of the business. The employee who

is satisfied with the best working conditions of the organization, stability, benefits, and

consideration within the organization he will spread the words to others as well whichhelps in
building the reputation of the business. A positive organizational culture where the

needs of the employees are taken care of being able to build their reputation in the industry.

4.Reduced turnover:

Reward systems result in a satisfied and happy workforce which reduced the turnover rates

and increases the retention rates of the employees in the organization. When the

organization provides all the case as well as fringe benefits to their employees they will not

think of leaving the organization as they feel satisfied. An employee leaves the organization

when he is not satisfied with the organization due to lack of appreciations and recognition

and he does not find himself as apart of the organization. These are the most common

reasons for the employee leaving an organization. Due to the rewards and recognition, the

employee can be retained into the organization for a long period of time.

7.Ways to Increase Employee Motivation Using Rewards.

1. Involve all employees in the development, implementation and revision of rewards

programs.

2. Ensure that employees view the rewards as worth the effort.

3. Make sure that employees understand how to earn the rewards.

4. Set reasonable and transparent performance standards for rewards.

5. Base reward determinations on objective performance data.

6. Make sure employees view the reward system as fair.

7. Always link rewards to performance.

8. Recognize small and large accomplishments.

9. Reward teamwork and cooperation.

10. Never take a good performance for granted.

Objective of the study:

To study various reward systems in the organization.

To study the impact of reward system in motivation of employees.

Scope of the study:

The study highlights about the various rewards that are given by the organization in

motivating the employees. Among their many benefits, it is said that an effective reward

system will contribute to better performance, employee motivation, organizational

learning, increased product, quality and the resolution of organizational problems. Effective

reward system is the framework that boosts the motivation of the employees.
Company profile

JSW CEMENT LIMITED NANDYAL

1.BRIEF HISTORY
JSW Cement one the conglomerate diversification of JSW Group which has its
establishment in NANDYAL. The company has grown in humungous way throwing every competition
it has faced .

IN 2009 one of the most successful unit of JSW germinated in the lands of NANDYAL. Know to be
“JSW CEMENT”.

It’s a state-of-the-art technology cement production unit at Bilakalaguduru village near Kurnool
District, Andhra Pradesh. The core objective of the plant is to utilise all the Blast Furnace (BF) Slag
generated by JSW Steel Ltd. The plant is notably environment friendly and also one of the most
energy-efficient cement plants in India. By using Blast Furnace Slag as raw material, the plant has
dramatically reduced its consumption of limestone, a natural resources.
VISSION OF JSW

“Global Recongnisation for quality and efficiency while Nurturing, Nature and Society”.

3.MISSION OF JSW :

Supporting India’s grow core economic sectors with speed and innovation.

4.Unique Features

1.First cement plant in India with Combi-Comflex technology and multiple systems to control air and
dust pollution.

2.Unique automatic packing and truck loading system that cuts down on air pollution.

3.Consumes half the amount of limestone required by conventional cement plants

4.Reduces pollution and wastage by utilising slag as a raw material.

5.A net water-surplus unit

5.NUMBER OF DIFFERENT DEPARTMENT
Civil Departments: A civil society organisation is group of people which operates in the community
in a way that is distance to the organisation.

civil engineering is a professional engineering disciplines that deals with the design
,construction and maintence the physical and built environment including public works.

commercial:

Most major companies and even some government organisation have purchasing or procurement
department as part of everyday operation .These departments provide a service that is backbone of
many manufacturing companies. It help in the smooth production and sales process take place in
right quality and quantity. It also help in price negotiations.

Electrical &Instrumental.

The instrument used for measuring the physical and electrical quantities is
know as the measuring instrument. The term measurement means the comparison between the two
quantities of the same unit.

. Finance and Accounts.

Financial accounting is the field of accounting concerned with the summary

,analysis and reporting of financial transaction related to a business .This involves the preparation of
financial statement available for public use.

HR Department .

Human Resources department of an organization perform human resources

management, overseeing various aspects of employment ,such as compliance with labour law and
employment standards, administration of employee benefits and some aspects of recruitment

Logistics Departments.

In generally the detailed organization and implication of complex operation .In a general
business sense ,logistics is the management of the flow of the things between the point of origin and
point of consumption in order to meet requirements of the organisation. The logistics may include
tangible goods such as material ,equipment and supplies .It involves material handling ,packing
,inventory ,transportation ,warehouse

Mechanical Department.

Mechanical engineers research ,design, develop ,build and test mechanical and
thermal devices ,including tools, engines and machines .mechanical engineers typically do the
following analyse the problems to see how mechanical and thermal devices might help solve the
problem.

Production and Process department.

production is the functional area responsible for turning inputs into finished goods through a series
of production processes. The production manger is responsible for making sure that raw material are
provided and made into finished goods effectively.

Safety Department .

Describes policies and procedures in the place to ensure the safety and health of
the employees within a workplace .Involves hazard identification and control according to
government standard and ongoing safety training and education for employees.

Environment Department.

This department is responsible for matter including environment protection and

conversation of biodiversity as well as energy policy.

.RECURUITMENT AND SELECTION PROCESS

1.Receiving the Application

2.Screening of the Application.

3.Preliminary Interview.

4.Interview

5.Employment Test.

6.Medical Examination .

7.Final Selection.
PRODUCT PORTFOLIO
 conclusion

The cement industry is all about Capacity utilization, Sales volume increase, Market share increment
and Increased Realisation. To achieve the objective of study the overall factors were aligned in such
a way that outcome is achieved in line with expectations. All the factors in the study can not be seen
in isolation as the industry is dynamic in nature and only broader rules may be defined. Also the role
of periodic review and corrective action is must so as to achieve the desired output.

Number of manufacturing units