A

STUDY
OF
PROMOTION AND REWARD POLICY
IN
PRUDENT GLOBALTECH SOLUTIONS PVT. LTD

1
List of Tables

 Do you aware of various rewards monetary and non-monetary reward

schemes.
 Do you aware about the basic criteria on which various awards are based.

 Rewards are based on clear and objective criteria

 Rewards are given as per criteria

 Favoritism prevails when it comes to giving away awards

 deserving people are rewarded
 Rewards are given as and when they become due
 Awardees get adequate Publicity
 good performance is appreciated and recognized by top management
 Seniors share the credit of good work with their subordinates
 Quantum of rewards is proportionate to one ‘s achievement.
 Performance linked monetary rewards are reasonable at the company.
 Do you promote within the next two years?
 Everyone has an equal chance to be promoted
 Staff are promoted in a fair and honest way

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List Of Graphs

 Do you aware of various rewards monetary and non-monetary reward

schemes.
 Do you aware about the basic criteria on which various awards are based.

 Rewards are based on clear and objective criteria

 Rewards are given as per criteria

 Favoritism prevails when it comes to giving away awards

 deserving people are rewarded
 Rewards are given as and when they become due
 Awardees get adequate Publicity
 good performance is appreciated and recognized by top management
 Seniors share the credit of good work with their subordinates
 Quantum of rewards is proportionate to one ‘s achievement.
 Performance linked monetary rewards are reasonable at the company.
 Do you promote within the next two years?
 Everyone has an equal chance to be promoted
 Staff are promoted in a fair and honest way

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CHAPTER-I

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 INTRODUCTION

Promotion:

Each organization needs to maintain a balance between the internal sources of personnel
promotion and external sources by means of recruitment. Hence, promotion must be based on
consistent, fair and clear cut policy. The National Institute of Personnel Management (NIPM)
has suggested a promotion policy on the following lines:

Drawing up an organization chart to make clear to all the ladder of promotion. Where there is a
job analysis and a planned wage policy, such chart is quite easy to prepare.

Making the promotion system clear to all concerned who may initiate and handle cases of
promotion. Though departmental heads may initiate promotion, the final approval must lie with
the top management, after the personnel department has been asked to check from its knowledge
whether any repercussion is likely to result from the proposed promotion.

All promotions should be for a trial period to ascertain whether the promoted person is found
capable of handling the job or not. Normally, during this trial period, he draws the pay of the
higher post, but it should be clearly understood that if ―he does not make the grade‖ he will be
reverted to his former post and former pay scale..

Reward System

―Fat pay package, quicker promotions and incentives are not enough any
more.
Employers need to listen what employees want.‖

A ‗reward‘ or ‗incentive‘ can be anything that attracts a worker‘s attention and

stimulates him to work.

In the words of Bureckm and Smith ―reward systems is a plan or programme to

motivate individual or group performance.‖ An incentive programme is most frequently built
on monetary rewards, but also includes a variety of non-monetary rewards or prizes

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 On the other hand French says the incentive system has a limited meaning that excludes
many kinds of inducements offered to people to perform work, or to work up to or beyond
acceptable stands. It is related with wage payment plans which tie wages directly or indirectly to
standard productivity or to the profitability of the organization or both criteria.

The use of incentives assumes that people‘s actions are related to their skills and abilities
to achieve important longer run goals. Even though many organization by choice or by tradition
or contract. In fact rewards on non performance criteria, rewards should be regarded as a
―pay off‖ the performance.

Jack Zigon defines rewards as ―something that increase frequency of an

employee action‖. This definition points to an obvious desired outcome of rewards and
promotion: to improve performance.

An incentive plan has following important features:-

1. An incentive plan may consist of both ‗monetary‘ and ‗non-monetary‘ elements. Mixed
elements can provide the diversity needed to match the needs of individual employees.
2. The timing, accuracy and frequency of incentives are the very basis of a successful
incentive plan.
3. The plan requires that it should be properly communicated to the employees to encourage
individual performance, provide feedback and encourage redirection.

Determinants of Rewards

These features are contingencies, which affect the suitability and design of rewards
to varying degrees. The effective use of rewards depends on 3 variables.

 Individual
 Work situation
 Incentive plan

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1. The individual and the rewards:

Different people value things differently. Enlightened managers realize that all people do
not attach the same value to monetary rewards, bonuses, prizes or trips. Employees‘ view these
things differently be of age, marital status economical need and future objectives .however even
though employees‘ reaction to rewards varies greatly, rewards must have some redeeming
merits. For e.g. there might be a no of monetary and non monetary rewards to motivate
employees.

2. The work situation:

This is made up of four important elements,

1) Technology:

Machine or work system, if speed of equipment operation can be varied, it can establish
range of the rewards.

2) Satisfying Job Assignment:

A worker‘s job may important a number of activities that he finds satisfying. Rewards
may take the form of earned time off, greater flexibility in hour worked, extended vacation
time and other privileges than individual values.

3) Feedback:-

A worker needs to be able to see connection between works and rewards. These
responses provide important reinforcement.

4) Equity:-

Worker considers fairness or reasonableness as part of the exchange for his work.

Rewards in general are important motivator. Their effectiveness depends upon 3 factors.

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 • Drives

• Preference value and

• Satisfying value of the goal objects.

Types of Rewards:

There are a number of ways to classify rewards. We have selected three of the more typical
dichotomies: intrinsic versus extrinsic rewards, financial versus non-financial rewards, and
performance-based rewards. These categories are far from being mutually exclusive.

Intrinsic versus Extrinsic Rewards

Intrinsic rewards are the satisfactions one gets from the job itself. These satisfactions are
self- initiated rewards, such as having pride in one‘s work, having a feeling of accomplishment,
or being part of team. These techniques of job enrichment, shorter work-weeks, flex-time and job
rotation can offer intrinsic rewards by providing interesting and challenging jobs and allowing
employee greater freedom.

Extrinsic rewards include money, promotions and fringe benefits. Their common thread
is that they are external to the job and come from an outside source, mainly management. Thus,
if an employee experiences feelings of achievement or personal growth from a job, we would
label such rewards as intrinsic. If the employee receives a salary increase or write-up in the
company magazine, we would label those rewards as extrinsic.

Motivational researchers had generally assumed that intrinsic and extrinsic rewards were
independent; that is, the stimulation of one would not affect the other. However, research
conducted in the late 1960s and early 1970s suggested that this assumption might be in error.

Early experiments designed to test the independence assumption tended to support the
proposition that when extrinsic rewards like money, promotions or fringe benefits were used as
payoffs for superior performances, the internal rewards, which are derived from the individual

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doing what he or she likes, were reduced. The explanation for these occurrences went something
like this. For money or other extrinsic rewards to be used as effective motivators, they should be
made contingent on the employee‘s performance. But when this is done it decreases the internal
satisfaction the employee gets from doing the job. What has happened is that an external
stimulus has been substituted for an internal one.

Financial versus Non financial Rewards

Rewards may or may not enhance the employee‘s financial well-being. If they do, they
can do this directly- through wages, bonuses, profit sharing and the like; or indirectly- through
supportive benefits such as pension plans, paid vacations, paid sick leaves and purchase
discounts.

Nonfinancial rewards cover a smorgasbord of desirable ―things‖ that are potentially at the
disposal of the organization. Their common link is that they do not increase the employee‘s
financial position. Instead of making the employee‘s life better off the job, non financial rewards
emphasize making life on the job more attractive. The non financial rewards that we will identify
represent a few of the more obvious; however, the creation of these rewards is limited only by
managers‘ ingenuity and ability to assess ―payoffs‖ within their jurisdiction that
individuals within the organization find desirable.

The old saying ―one man‘s food is another man‘s poison‖ applies to entire
subject of rewards, but especially to the area of non financial rewards. What one
employee views as
―something I have always wanted,‖ another finds superfluous. Therefore care must be taken in
providing the ―right‖ non financial reward for each person; yet where selection has been
done assiduously, the benefits to the organization should be impressive.

Some workers are very status conscious. A paneled office, a carpeted floor, a large
walnut desk or a private bathroom may be just office furnishing that stimulates an employee
toward top performance. Similarly status oriented employees may value an impressive job title,
their own business cards, their own secretary or a well- located parking space with their name
clearly pained underneath the ―Reserved‖ sign.

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 Some employees value having their lunch between one and two o‘clock in the
afternoon. If lunch is normally from eleven in the morning until noon, the benefit of being able
to take their lunch at another, more preferred, time can be viewed as a reward. Having a chance
to work with congenial colleagues and achieving a desired work assignment or an assignment
where the worker can operate without close supervision are all non financial rewards that are
within the discretion of management and, when carefully used, can provide stimulus for
improved performance.

Performance-Based versus Membership-Based Rewards

The rewards that the organization allocates can be said to be based on either
performance criteria or membership criteria. While the managers in the most organizations will
vigorously argue that their reward system pays off for performance. Few organizations actually
reward employees based on performance.

Performance-based rewards are exemplified by the use of commissions,

piecework pay plans, incentive systems, group bonuses or other forms of merit plan. On the other
hand, membership-based rewards include cost-of-living increases, profit sharing, benefits and
salary increases attributable to labour market conditions, seniority or time in rank, credentials
(such as collage degree or a graduate diploma), or future potential (the recent M.B.A out of a
prestigious university). The demarcation between the two is not always obvious. For instance,
company paid membership in a country club or use of company-owned automobiles and aircraft
by executive may be given for membership or performance. If they are available to, all middle
and upper level executives, then they are membership based. However, if they are made
available selectively to certain managers based on their performance rather than their
―entitlement,‖ which of course implies they can also be taken away, we should treat
them as performance-based rewards for those who might deem them attractive.

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Advantages of the Performance Related pay (PRP) scheme

 Incentives are linked to meeting targets or objectives, as well as to the quality of

performance as perceived by superiors. Linking pay to performance that lends itself to
measurement is considered fairer then awarding across-the-board cost of living
increases, which do not discriminate between high and low performers.

 Where employees‘ performance can be measured and the amount of money available to
reward performance is sufficient to module effort, it saves money if the organization
targets rewards on those who performs.

 High performers are attached to PRP culture in the knowledge that pay is linked
productive effort and that poor achievement is discouraged.

 Employees receive useful feedback on their performance.

 There is an emphasis on a result oriented culture, with the accent on effort directed at
activities that the organization values.

Disadvantages of the PRP scheme

 Behavior is rewarded, which one would expect to occur any way in accordance with the
employment contract. Here good performance is expected and provision is made for it
and where there is a poor performance it is job of the management to sort it out.

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  Open communication between managers and subordinates could be discouraged, because
subordinates are less likely to divulge information on personal short comings just in case
such disclosures act to their disadvantage.
 The rewarding of self-centered individualism can undermine the co-operation and team
work, which are necessary for coping with today‘s climate.

Importance

Never assume a particular reward is universally important to all employees. Money, for
example, can have a very different meaning to different people. It may represent basic security
and love, power, a measure of one‘s achievements or merely means to a comfortable life style.
To some employees 1000/- Rs –a-month raise would be very important. Other employees, in the
same job and at the same salary level might far prefer an extra week of vacation.

This different among employees was substantiated in a study undertaken at a public

utility. One hundred and fifty employees were asked to rank their performance for rewards. It
was found that the employees in general, rated extra vacation as most preferred, followed by pay,
a pension increase, paid family insurance, early retirement and work schedule rearrangements, in
decreasing order. But this ranking varied among different employee groups. For instance, the
preference for insurance plan decreased with age, while desire for more pension benefits
increases. Married employees also valued insurance plan more than single employees, and this
preference increased with number of dependents.

Research indicates that the preference for rewards will be significantly affected by age,
marital status and number of children the employee has. Young unmarried person desire more
time off the job and young married men rated more vacation lower than family health coverage,
or that older employees seek increased retirement benefits while younger workers opt for more
cash.

In expectancy theory terms, motivation is optimized when employees see rewards

satisfying their individual needs. Therefore a good reward system should be designed to offer

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 heterogeneous rewards to a heterogeneous labour force. Employees should be rewarded with
what they individually consider important.

One effort to broaden the idea of individualizing rewards has been labeled ‗cafeteria
compensation‘. In contrast to the traditional manner in which fringe benefits are allocated- all
employees get the same package which best satisfies his or her current needs. Specifically where
cafeteria-type flexible compensation exists, employees are told what their total compensation is,
and they can choose a mix salary, life insurance, deferred compensation and other benefits suit
their particular needs.

The advantages of flexible compensation go beyond merely allowing employees to

customize their own compensation package. This method involves little in additional direct costs,
it makes clear to employees how much the organization is actually spending to compensate them
and it ensure that the money will be spent only on the rewards the employees want. On the
negative side, there is the tendency for employees to think in short- range rather than long- range
terms. Most organizations that have instituted a cafeteria plan actually provides all employees
with minimum insurance and pension benefits and let each employees select additional rewards
to suit his or her own needs.

Equitable Distribution

Employees desire rewards that are distributed in what seems to be an equitable manner.
This means fairness among the organization‘s employee and fairness relative to what people get
for doing a similar job in another organization. Equity theory has been proposed to explain what
happens when individuals perceive an imbalance between what they put into job and what they
get out of it relative to others‘ give-and-get ratio.

It is no secret that employees make comparisons between themselves and their peers.
Employees perceive what they get from a job situation in relation to what they must put into.
They also compare their input-outcome ratio with the input-outcome ratio of their peers. If a
person‘s ratio and that of others are perceived to be equal, a state of equity is said to exist. If they
are unequal, in-equality exists. That is, the individual views herself or himself as under rewarded
or over rewarded. Equity theory argues that when an inequality is seen as aversive, the individual
will attempt to correct it.

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Evidence indicates that the referent chosen by the employee is an important variable in equity
theory. The three referent categories have been classified as ―other‖, ―system‖ and ―self‖.
The
―other‖ category includes other individuals with similar jobs in the same organization, as well as
friends, neighbors or professional associates. Based on information that employees receive
through word of mouth or through newspapers and magazines on such issues as executive
salaries or recent union contract, employees can compare their pay relatively to that of others.

The ―system‖ category considers organizational pay policies and procedures

and administration of this system. It considers organization wide, implied and explicit, pay
policies. Organization precedents in terms of allocation of pay would be a major determinant in
the category.

The ―self‖ category refers to input-outcome ratios unique to the individual that
differ from the individual‘s current input-outcome ratio. This category is influenced by such
criteria as past jobs or commitments that must be met in terms of family role.

The choice of particular set of referents is related to the information available about
referents as well as their perceived relevance. Based on equity theory, employees may choose
one or more five alternatives.

1) Distort either their own or others‘ input or outcomes

2) Behave in some way so as to induce others to change their inputs or outcomes
3) Behave in some way as to change their own inputs or outcomes
4) Choose a different comparison referent
5) Leave the organization
6) Visibility

A reward that is not visible to the employee may fail to get the desired motivating effect from
employee. On the other hand, a truly visible reward gets the attention not only of employees but
also their peers. This latter qualify means visible rewards can contribute to satisfying an
employee‘s esteem and promotion needs.

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In what ways can managers increase the visibility of rewards? Possibilities include well-
publicized bonuses, allocating annual salary increases in a lump sum rather than spreading them
out over the entire year, and eliminating the secrecy surrounding pay by openly communicating
everyone‘s compensation.

Some organizations have successfully maximized the value of rewards by making them
both impressive in size and highly visible. Probably the most widely discussed and controversial
approach to increasing the visibility of rewards is to eliminate the traditional secrecy surrounding
pay. The proponents of openness argue that pay secrecy actually demotivates employees.
Secrecy may tend to work to the disadvantage of using money to motivate managers because
even most carefully derived pay schedule and differentials may be seen as potentially less
rewarding as they actually are. The misperception of pay contributes to dissatisfaction with pay,
and secrecy regarding pay contributes to this misperception.

Complete openness about pay policies is indeed rare in organizations. If such information
were common knowledge, employees would undertake to compare their salaries with those of
everyone else and the inevitability of human error would reveal any inequalities in pay system.
There would be misunderstandings, petty complaints, increased dissatisfaction and perceived if
not real inequalities. Whether it is true or not, almost everyone thinks him or her worth more
than the next person. On the other hand, an open pay system demonstrates confidence by
management in the structure of compensation and hence it should increase the trust individuals
have in the organization.

Flexibility

An effective reward is one that has the flexibility to vary with changes in performance. If
an employee‘s job performance declines in 1987, the rewards he received in 1986 should ideally
have downside adjustment capability.

An effective reward would be flexible in terms of the amount given to everyone in the
organization. The annual performance bonus, for instant, offers high flexibility. It can be
adjusted upward or downward or eliminated, each year depending on some measure of

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performance. Additionally, it can be given selectively to those employees who have done a
superior job.

Another attribute of flexible reward is that it be given frequently without losing

importance. Giving rewards frequently is often helpful foe sustaining extrinsic motivation, yet
some rewards diminish in importance when used over time. As a case in point, praise is a
flexible reward in that its amount can be varied in allocation to and among individuals. However,
it suffers from diminishing returns. Continued use of praise results in the reward losing its
importance.

Low Cost

The final quality of an effective reward is low cost. Rewards are not free goods, and the
organization must consider the costs along with the benefits from any rewards. A high-cost
reward simply cannot be given out as often, and when it is, it reduces organizational
effectiveness as a result of its cost. All other factors equal, the lowest-cost reward should be
preferable to management.

Summary

A careful review of the above criteria which identified for effective rewards brings one to
the conclusion that no organizational reward is ideal on all dimensions. Because no reward is
perfect, managers must carefully assess what they expect from their reward system and structure
it so it provides the maximum in motivation potential. Each organization is unique, so the
rewards that work in one firm may be ineffective in another. Similarly jobs within each
organization differ, and the rewards made available to incumbents of each job should reflect this
fact.

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Designing a Reward Program

The keys to developing a reward program are as follows:

 Identification of company or group goals that the reward program will support
 Identification of the desired employee performance or behaviors that will reinforce
the company's goals
 Determination of key measurements of the performance or behavior, based on the
individual or group's previous achievements
 Determination of appropriate rewards
 Communication of program to employees

In order to reap benefits such as increased productivity, the entrepreneur designing a

reward program must identify company or group goals to be reached and the behaviors or
performance that will contribute to this. While this may seem obvious, companies frequently
make the mistake of rewarding behaviors or achievements that either fails to further business
goals or actually sabotage them. If teamwork is a business goal, a bonus system rewarding
individuals who improve their productivity by themselves or at the expense of another does not
make sense. Likewise, if quality is an important issue for an entrepreneur, the reward system that
he or she designs should not emphasize rewarding the quantity of work accomplished by a
business unit.

Properly measuring performance ensures the program pays off in terms of business
goals. Since rewards have a real cost in terms of time or money, small business owners need to
confirm that performance has actually improved before rewarding it. Once again, the measures
need to relate to a small business' goals. As Linda Thornburg noted in HR Magazine,
"Performance measures in a rewards program have to be linked to an overall business strategy….
Most reward programs use multiple measures which can include such variables as improved
financial performance along with improved customer service, improved customer satisfaction,
and reduced defects."

When developing a rewards program, an entrepreneur should consider matching rewards

to the end result for the company. Perfect attendance might merit a different reward than saving
the company $10,000 through improved contract negotiation. It is also important to consider

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 rewarding both individual and group accomplishments in order to promote both individual
initiative and group cooperation and performance.

Lastly, in order for a rewards program to be successful, the specifics need to be clearly
spelled out for every employee. Motivation depends on the individual's ability to understand
what is being asked of her. Once this has been done, reinforce the original communication with
regular meetings or memos promoting the program. Keep your communications simple but
frequent to ensure staffs are kept abreast of changes to the system.

REWARD VS. PROMOTION

Although these terms are often used interchangeably, reward and promotion systems
should be considered separately. Employee reward systems refer to programs set up by a
company to reward performance and motivate employees on individual and/or group levels.
They are normally considered separate from salary but may be monetary in nature or otherwise
have a cost to the company. While previously considered the domain of large companies, small
businesses have also begun employing them as a tool to lure top employees in a competitive job
market as well as to increase employee performance.

As noted, although employee promotion programs are often combined with reward
programs they retain a different purpose altogether. Promotion programs are generally not
monetary in nature though they may have a cost to the company. Sue Glasscock and Kimberly
Gram in Productivity Today differentiate the terms by noting that Promotion elicits a
psychological benefit whereas reward indicates a financial or physical benefit. Although many
elements of designing and maintaining reward and promotion systems are the same, it is useful to
keep this difference in mind, especially for small business owners interested in motivating staffs
while keeping costs low.

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 Some Rewards which are used in different organizations

4. Best Agent/ consultant /employee / Star performer of the month / quarter.

5. Best Management - For heads who right hand for management too in all activities.
6. Best Technical Leadership - head of R & D, next level to management who do mostly
program & new projects.
7. Most Efficient Employee - middle level mgt, who does his work without any
expectation from mgt.
8. Best Loyalty - Who worked lot for co. benefit & growth as a friend.
9. Most Progressive Employee - Newly joined employee
10. Best New Comer - Newly joined employee
11. Best Employee of the department - best in embedded prg.
12. Extra miler of the team/ department - in respective field
13. High Value Sales - huge order in single (from one co.)
14. Best Contributor for the team / department
15. Perfect attendance award- who is not taken leave
16. Best Software Support
17. Best System Support

You can also give them gifts like T-shirt with company logo Jackets, Mementos, Movie tickets,
concert tickets, certificates.

Planning the compensation strategy

Most senior managers wish, at least at times, that they could ignore compensation. No
other organizational system is so weighed with values and emotions, so visible to employees or
so much the subject of internal dissent. Nearly everyone has opinions—usually strong opinions
—about rewards. Any change in compensation usually attracts loud complaints from employees
who feel disadvantaged by the change.

The topic of rewards is rife with myths that are widely accepted but contradicted by
extensive research. In view of these difficulties, can busy senior managers safely take the easy

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way out and leave compensation decisions to their compensation specialists? Or should they
devote significant personal attention to compensation? Senior managers should be heavily
involved in getting the strategic direction for compensation, and there are some fundamental
choices senior managers need to make during this process.

Compensation systems demanded less senior management attention only a few years ago.
At that time, senior managers generally left the design of employee compensation systems to
technical specialists. This was possible partly because professionally managed compensation
systems looked very much alike from one company to another.

For most firms, the goal of compensation design was simply to avoid a competitive
disadvantage by keeping labour costs in line with those of competitors, and the goal of
compensation administration was to keep employee noise down. The picture has changed greatly
during the past decade, as companies throughout the economy have begun to rethink their
compensation systems in search for competitive advantage.

Base pay, incentives, benefits and pay for corporate performance all have changed
dramatically. Studies of Fortune 1000 firms (Lawler, Mohrman and Ledford) from 1986 to 1997
show large increases in the percentage of Fortune 1000 using a variety of compensation
innovations.

For example, there has been a 50 percent increase in companies using pay for skills,
knowledge and competencies. A 50 percent increase in companies using work group or team
incentives; and a 100 percent increase in firms using flexible benefit systems.

The strategic demands of new competitive forces, new organizational forms, and increase
in knowledge work and promotion of the importance of compensation to organizational
effectiveness have largely driven these changes. Top managers can no longer afford to leave
compensation solely in the hands of compensation professionals.

There are some basic principles of compensation strategy senior managers need to
understand. The alignment of compensation with business needs, the goals of the compensation
system, reward system levers and basic choice managers need to make are among these

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principles. A foundation of knowledge will help senior managers use compensation as an
important tool for managing the business.

The idea that money doesn‘t motivate employees has been around since decades. It
received its most famous formulation in the work of Fredrick Herzburg. He claimed that intrinsic
sources of motivation rising from the design of work are much more important than the extrinsic
sources, such as pay, in determining the level of employee motivation. In Hertzberg‘s view
extrinsic sources are ―hygiene‖ factors that can have a negative effect but not a positive effect on
motivation, while intrinsic sources are true motivators. However, while Hertzberg is remembered
for his emphasis on the importance of intrinsic motivation, contemporary motivation in scholars
almost universally reject his claim that extrinsic rewards do not motivate.

A more recent view is expressed by Alfie Kohn, a polemicist whose highly biased and
incomplete review of the reward literature might have remained obscure had it not been
excerpted in the Harvard Business Review. Kohn argues that extrinsic rewards cannot work for
several reasons. He argues that extrinsic rewards such as pay need not be provided continually to
be effective, whereas intrinsic rewards such as work design are available to employees without
continuous management action.

However, we are unimpressed with the discovery that you can‘t pay employee for
performance just once—you have to keep paying them.

Employees also adopt this myth and use it to turn the tables on management, arguing that
any improvement in pay or working conditions will reward management with higher
productivity, ultimately making the added rewards ―free‖. This is like asking Santa Claus
for presents. Seemingly no one has to pay for them.

Unfortunately, the popular belief that happiness leads to productivity is not supported by
the evidence. Literally, hundreds of studies have examined the relationship between employee
attitudes such as job satisfaction and productivity. (Of course, satisfaction is not the same thing
as happiness, but the two obviously are closely related).

In every decade since the 1950s a major review of this ever-growing literature has reached
the same conclusion: that is, the relationship between satisfaction and productivity is detectable,

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but too small to be of practical significance. Well the relationship exists, it may well be because
more productive people tend to be rewarded for their higher performance, and this happiness
may be the indirect result rather than the cause of productivity. Making people happier makes
them stay in the organization longer—that is, it reduces turnover—but it does not necessarily
make them more productive.

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 NEED AND SIGNIFICANT OF STUDY.
In today‘s business scenario promotion and rewards is most effective tool of motivating
employees. People mostly leave job because of compensation factor.

Why reward system is required?

These components will be designed, developed and maintained on the basis of reward strategies
and policies which will be created within the context of the organizations between strategies,
culture and environment: they will be expected to fulfill the following broad aims;
1. Improve Organizational Effectiveness: Support the attainment of the organization's
mission, strategies, and help to achieve sustainable, competitive advantage.
2. Support and change culture: Under pin and as necessary help to change the
'organizational culture' as expressed through its values for performance innovation, risks
taking, quality, flexibility and team working.
3. Achieve Integration: Be an integrated part of the management process of the
organization. This involves playing a key role in a mutually reinforcing and coherent
range of personal policies and process.
4. Supportive Managers: Support individual managers in the achievement of their goals.
5. Motivate Employees: Motivate employees to achieve high levels of quality
performance.
6. Compete in the Labour market: Attract and retain high quality people.

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OBJECTIVES OF THE STUDY

 To study various factors relating to Rewards and promotion in Prudent Globaltech

Solutions Pvt. Ltd.
 Study about Criteria for rewards and promotion.
 To know about the Eligibility for rewards and promotion
 To study the Impact of Rewards and promotion on behavior of employees.
 To study the Benefits derived by Rewards and promotion.
 To give Recommendation and Suggestions to the company

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 SCOPE OF STUDY

 The project is covered of Promotion and Rewards Policy of Prudent Globaltech Solutions
Pvt. Ltd. drawn from data available of the company.

 The Study of this project is limited to 45days

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 LIMITATIONS OF STUDY

 Sample size: the present study is carried out for academic purpose, so sample size is
restricted.

 No generalization: the study is restricted to an organization under study, so it cannot be

generalized for all employees in other organization.
 Rewards and promotion are complex problem and researcher has attempted to study most
appropriate factors, but chances cannot be ruled out that some areas may have been
untouched or not adequately touched.

26
RESEARCH METHODOLOGY

Title of Study

“A detailed study of promotion and reward policy of SBI”

Sample:
Sample is 100 employees from the total population.

Research Design
This is descriptive study including various factors of Rewards and promotion like criteria for
promotion and rewards, eligibility, impact on behaviors of employees, frequency for rewarding,
benefits derived and recommendation and suggestions.

Universe
Universe is employees of State Bank of India.

Sample and sampling procedure

Sample taken from the study consist of employees of SBI. Samples were selected from various
departments like Administration, Development, quality control, Customer support, research and
development, finance and accounting, information and technology, training, human recourse and
marketing.

Tools of data collection

An interview schedule was used for data collection, apart from personal interview.

27
CHAPTER II

28
 LITERATURE REVIEW

Organizations in today‘s environment seek to determine the reasonable balance between

employee commitment and performance of the organization. The reward and promotion
programs serve as the most contingent factor in keeping employees‘ self esteem high and
passionate. Oosthuizen (2001) stated that it is among the function of managers to motivate the
employees successfully and influence their behavior to achieve greater organizational efficiency.
La Motta (1995) is of the view that performance at job is the result of ability and motivation.

Ability formulated through education, equipment, training, experience, ease in task and
two types of capacities i.e. mental and physical. The performance evaluation and rewards are the
factors that proved to be the bonding agents of the performance evaluation programs. According
to Wilson (1994), the process of performance management is one among the key elements of
total reward system.

Entwistle (1987) is of the view that if an employee performs successfully, it leads to

organizational rewards and as a result motivational factor of employees lies in their performance.
Majority of the organizations require their employees to work according to the rules and
regulations, as well as, job requirements that comply with full standards. The investigations that
have been conducted to find the relationship between compensation and individuals were
focused to increase the performance of employees (Ciscel, 1974). The highly motivated
employees serve as the competitive advantage for any company because their performance leads
an organization to well accomplishment of its goals.

Among financial, economical and human resources, human resources are more vital that
can provide a company competitive edge as compared to others. According to Andrew (2004),
commitment of all employees is based on rewards and promotion. Lawler (2003) argued that
prosperity and survival of the organizations is determined through the human resources how they
are treated. Most of organizations have gained the immense progress by fully complying with
their business strategy through a well balanced reward and promotion programs for employee.
Deeprose (1994) argued that the motivation of employees and their productivity can be enhanced
through providing them effective promotion which ultimately results in improved performance

29
of organizations. The entire success of an organization is based on how an organization keeps its
employees motivated and in what way they evaluate the performance of employees for job
compensation. Managing the performance of employees forms an integral part of any
organizational strategy and how they deal with their human capital (Drucker as cited in Meyer &
Kirsten, 2005).

Today where every organization has to meet its obligations; the performance of
employees has a very crucial impact on overall organizational achievement. In a demotivated
environment, low or courageless employees can not practice their skills, abilities, innovation and
full commitment to the extent an organization needs. Freedman (1978) is of the view that when
effective rewards and promotion are implemented within an organization, favorable working
environment is produced which motivates employees to excel in their performance. Employees
take promotion as their feelings of value and appreciation and as a result it boosts up morale of
employee which ultimately increases productivity of organizations.Csikszentmihalyi (1990)
posits a view that the state of satisfaction and happiness is achieved by the employees only when
they maximally put their abilities in performing the activities and functions at work.

In this way motivated employees are retained with the organizations thus reducing extra
costs of hiring. Flynn (1998) argued that rewards and promotion programs keep high spirits
among employees, boosts up their morale and create a linkage between performance and
motivation of the employees. The basic purpose of reward program is to define a system to pay
and communicate it to the employees so that they can link their reward to their performance
which ultimately leads to employee‘s job satisfaction. Where job satisfaction, as defined by Lock
(cited in Gruneberg, 1979, p. 3), is a pleasurable positive emotional state as a result of work
appraisal from one‘s job experiences.

The rewards include the financial rewards, pay and benefits, promotions and incentives
that satisfy employees to some extent but for committed employees, recognition must be given to
keep them motivated, appreciated and committed. Baron (1983) argued that when we recognize
and acknowledge the employees in terms of their identification, their working capacity and
performance is very high. Recognition today is highest need according to most of the experts
whereas a reward which includes all the monetary and compensative benefits cannot be the sole

30
motivator for employees‘ motivation program. Employees are motivated fully when their needs
are met.

The level of motivation of employees increases when employees get an unexpected

increase in promotion, praise and pay (La Motta, 1995). In today‘s dynamic environment the
highly motivated employees serve as a synergy for accomplishment of company‘s goals,
business plans, high efficiency, growth and performance. Motivation is also required when the
organizational workforce has not a good relationship pattern. Employees‘ relation with
employees and with supervisor is a key ingredient of the inner strength of the organization. The
ability of supervisors to provide strong leadership has an effect on job satisfaction of employees
(Morris, 2004). The study relates how the impact of incentives, promotion and rewards programs
drives employee motivation.

Rewards play a vital role in determining the significant performance in job and it is
positively associated with the process of motivation. Lawler (2003) argued that there are two
factors which determine how much a reward is attractive, first is the amount of reward which is
given and the second is the weightage an individual gives to a certain reward.

Deeprose (1994, p. 3) is of the view that ―Good managers recognize people by

doing things that acknowledge their accomplishments and they reward people by giving them
something tangible.‖ Fair chances of promotion according to employee‘s ability and skills make
employee more loyal to their work and become a source of pertinent workability for the
employee. Bull (2005) posits a view that when employees experience success in mentally
challenging occupations which allows them to exercise their skills and abilities, they experience
greater levels of job satisfaction. Incentives, promotion and rewards are the key parameters of
today‘s motivation programs according to most of the organizations as these bind the success
factor with the employees‘ performance. Robbins (2001) asserts that promotions create the
opportunity for personal growth, increased levels of responsibility and an increase on social
standing. Similarly, the recognition which is a central point towards employee motivation adores
an employee through appreciation and assigns Fortune best companies which discriminates
companies from the others is recognition that is the most important factor of their reward system.
Wilson (1994) stated that the conditional recognition is that type of promotion which one has to
earn by his own efforts and which is gained by some sense of achievement of an action or result.

31
Employees are definitely closer to their organization as their job can become the major
satisfaction in their life after having a proper promotion and rewards at their job. Rewards
enhance the level of productivity and performance at job whether it‘s a first time performance or
repeated activity at the job in a progressive way. Research by Eastman (2009) consistently found
that intrinsic motivation is conducive to producing creative work, while extrinsic motivation is
unfavorable to producing creative work.

Gagne (2009) suggested a new model of knowledge-sharing motivation which provides

suggestion for designing five important human resource management (HRM) practices including
staffing, job design, performance and compensation systems, managerial styles and training. Ali
and Ahmed (2009) confirmed that there is a statistically significant relationship between reward
and recognition respectively, also motivation and satisfaction. The study revealed that if rewards
or recognition offered to employees were to be altered, then there would be a corresponding
change in work motivation and satisfaction. The pay package is one of the most obvious and
visible expressions of employment relationship, it is main issue in exchange between employees
and employer expressing connection between individual work and performance employing
organization itself‖

Hege Wisch and Ganguli O, N, (1967), in his study found "pay and allowances as the
most important factor causing satisfaction or dissatisfaction to workers"

Singh ET. al. (1977) in a study of organizational culture and its impact on managerial
remuneration concluded that the demands for money was significantly influenced by the quality
of organizational culture and that it can substantially be reduced by improving the quality of
organizational culture. Findings such as those suggest that satisfaction, task involvement,
demand for money and commitment are largely determined by organizational culture.

According to Fred Luthans (1981), "inequality occurs when an individual perceives that
the ratio of his outcomes to input and the ratio of relevant others outcome to input are unequal"

Rowlinson (1988) one of the American vice presidents whose company observed and
concluded that recognition speaks to the employee receiving it and awards and only one aspect
of it. The symbolism, meaning and intrinsic value attached to the reward are equally important.

32
Although the gold plated carriage clock, watch all engraved tinkered in recognition of long
service is probably most prominent form of recognition award in U.K.

Judy L. Agnew and William K. Redmon, (1992), indicates that the organization may
have the latest technology, well -thought out strategic plans, detailed job descriptions and
comprehensive training programmes, but unless the people are rewarded for their performance-
related behaviours, the "up-front" variable (technology, plans and so on) or the rules that govern
their behaviour have little impact". Pay and allowances as the most important factor causing
satisfaction or dissatisfaction to workers.

Steve Williams and Fred Luthans (1992) stated that, "the choice of reward interacting with
feed back had a positive impact on task performance".

Simon (1992) after thorough study suggested that employees should be given cash bonuses
and prizes for meeting sales targets, customer services and cleanest store. For special yearly
competition when only few people gain prizes should be precious and can range from holiday
voucher, a set of 2 tickets for an all expense paid trip to Hollywood.

One example is Vodafone Australia. When Vodafone introduced the liveyourlife reward
and promotion program they had turnover rates around 30 per cent per year. That rate has
reduced to just 18 per cent (Human Resources 2005) predominantly due to the company focusing
on its culture and its people. The liveyourlife incentive program is a major part of the people
retention initiative. By offering experiential benefits as part of their remuneration structure, the
dynamic Managing Partner encouraged Gardens to be known as an innovative, progressive and
fun law firm.

The National Australia Bank approached liveyourlife to customize a team based

experiential reward program for a project that involved employees in every branch of the Bank
across Australia, including remote regional areas. Liveyourlife customized a specific team based
reward program including the development of specific team experiences for branches in regional
areas. The customized liveyourlife team based reward program was delivered with great success.

33
 THEORETICAL FRAMEWORK
Evaluate the process of job evaluation and other factors determining pay

The Process of Job Evaluation:

“Job evaluation is a systematic process for defining the relative worth or size of
jobs within an organisation in order to establish internal relativities. It provides the basis for
designing an equitable grade and pay structure, grading jobs in the structure and managing job and
pay relativities.”(Armstrong, 2006)

Job evaluation is really an extensive process and it must follow in an orderly approach. At the start
of this process management must make clear to its staff the reason of this job evaluation and
importance of it. After that a team has been set where all the informed HR specialists and workers
are included. In the next step organisation selects the job from each department that they are going
to evaluate, then the chosen job is investigated in detail by the committee. Next, the HR selects a
method for the job evaluation. There are two methods that can be followed to evaluate a job and
these are: “Analytical – points rating, factor comparison, proprietary brands; and Non-analytical –
job ranking, job classification, paired comparisons”. (UK Essays, 2013)

The other factors determining pay:

The pay, which is an award for work, can be influenced by various factors and it creates some
difference between the roles and the organisations. Those factors are:

 Size of the organisation,

 Seniority,

 Skills and experience,

 Industry sector,

 Profitability of the organisation,

34
  Employee performance..

The effectiveness of reward systems in different contexts

Bratton and Gold (2003) define a reward system as “The mix of extrinsic and intrinsic rewards
provided by the employer. It also consists of the integrated policies, processes, practices and
administrative procedures for implementing the system within the framework of the human
resources (HR) strategy and the total organisational system”.

There are two types of rewards: Extrinsic rewards which are tangible rewards that employee
receives for their good performance, such as bonuses, salary raise, gifts, promotion, compensation
and commissions. Intrinsic rewards are inclined to give personal satisfaction to an employee, such as
information, feedback, recognition, trust and relationship.

Employee bonus systems are positive strategies and they can provide actual motivation. Moreover to
monetary thoughts; bonus systems take into account factors such as attendance, customer service,
quality, group and individual performance. Also bonuses increase employees’ motivation and
output. It improves employees’ morale and increases their self-esteem. However, a carefully planned
bonus scheme can improve retention which helps to preserve the best employees.

Salary raise is the other types of reward system and it is one of the most significant motivators for
the employee, also it is the key motivation behind an employee’s performance.

Promotion is one of the most important types of reward system, where an organisation rewards an
employee by moving them from their position to a higher position. Promotion improves employee’s
morale and job satisfaction.

However, improved performance is an effectiveness of reward system; it helps the employee to

perform better at work in order to get extra reward from the organisation. At the same time
employees also work hard and put their skills and understanding which assist them to gain
knowledge and learn something new.

However, reward system also boosts profit, where a company has good chance to make return
because member of staff works honestly and carefully. It also helps to bring positive psychological

35
contract between employees and the organisation; it creates a better working environment and helps
organisation to keep gifted, potential employees with them.

Examine the methods organisations use to monitor employee performance.

There are some methods that are used by Tesco to monitor their employees’ performance. Tesco
uses observation and feedback to monitor their employees’ performance. In this system Tesco hires
someone to monitor the performance of the employee, after that this person provides straightforward
feedback. By observing and providing feedback Tesco can give the accurate shape to the employees
of what is expected from them.

Tesco also uses performance standards and it is one of the worker performances monitoring method
where performance has been compared with the criterion and where employee needs to accomplish
this criterion. In this system performance must be realistic, measurable and expressed in terms of
time, quality, cost, quantity, effect, or manner of performance.

Performance evaluation is another method that used by Tesco to determine the actual job
performance of an employee against chosen performance standards. In Tesco employees’ are
interviewed to talk about their performance to identify strengths and weaknesses, and to create a
plan how to improve weaknesses and increase strengths.

Tesco also uses a method known as “360-degree appraisal” (Business Case Studies, 2013). In this
method all Tesco’s stakeholders evaluate an employee’s performance and give them feedback. For
example, a manager of one department gets feedback from their manager from HR department and
their team.

Reward Systems in Organizations

After a company has designed and implemented a systematic performance appraisal system and
provided adequate feedback to employees, the next step is to consider how to tie available corporate
rewards to the outcomes of the appraisal. Behavioral research consistently demonstrates that
performance levels are highest when rewards are contingent upon performance. Thus, in this section,
we will examine five aspects of reward systems in organizations: (1) functions served by reward
systems, (2) bases for reward distribution, (3) intrinsic versus extrinsic rewards, (4) the relationship

36
between money and motivation and, finally, (5) pay secrecy.

Reward systems in organizations are used for a variety of reasons. It is generally agreed that reward
systems influence the following:

 Job effort and performance. Following expectancy theory, employees’ effort and
performance would be expected to increase when they felt that rewards were contingent upon
good performance. Hence, reward systems serve a very basic motivational function.
 Attendance and retention. Reward systems have also been shown to influence an employee’s
decision to come to work or to remain with the organization. This was discussed in the
previous chapter.

 Employee commitment to the organization. It has been found that reward systems in no small
way influence employee commitment to the organization, primarily through the exchange
process.

R. T. Mowday, L. W. Porter, and R. M. Steers, Employee-Organization Linkages: The

Psychology of Employee Commitment, Absenteeism, and Turnover, (New York: Academic
Press, 1982).

That is, employees develop ties with organizations when they perceive that the organization
is interested in their welfare and willing to protect their interests. This exchange process is
shown in (Figure). To the extent that employee needs and goals are met by the company, we
would expect commitment to increase.

 Job satisfaction. Job satisfaction has also been shown to be related to rewards, as discussed in
the previous chapter. Edward E. Lawler, a well-known researcher on employee
compensation, has identified four conclusions concerning the relationship between rewards
and satisfaction: (1) satisfaction with a reward is a function of both how much is received
and how much the individual feels should have been received; (2) satisfaction is influenced
by comparisons with what happens to others, especially one’s coworkers; (3) people differ

37
 with respect to the rewards they value; and (4) some rewards are satisfying because they lead
to other rewards.

 Occupational and organizational choice. Finally, the selection of an occupation by an

individual, as well as the decision to join a particular organization within that occupation, are
influenced by the rewards that are thought to be available in the occupation or organization.
To prove this, simply look at the classified section of your local newspaper and notice how
many jobs highlight beginning salaries.

The Exchange Process Between Employee and Organization

Reward systems in organizations have far-reaching consequences for both individual satisfaction
and organizational effectiveness. Unfortunately, cases can easily be cited where reward systems
have been distorted to punish good performance or inhibit creativity. Consider, for example, the
Greyhound Bus Company driver who was suspended for 10 days without pay for breaking a
company rule against using a CB radio on his bus. The bus driver had used the radio to alert police
that his bus, with 32 passengers on board, was being hijacked by an armed man. The police arrested
the hijacker, and the bus driver was suspended for breaking company rules.

Cited in Eugene Register-Guard, July 15, 1980, p. B1.

A common reality in many contemporary work organizations is the inequity that exists in the
distribution of available rewards. One often sees little correlation between those who perform well
and those who receive the greatest rewards. At the extreme, it is hard to understand how a company
could pay its president $10 to $20 million per year (as many large corporations do) while it pays its
secretaries and clerks less than $15,000. Each works approximately 40 hours per week, and both are
important for organizational performance. Is it really possible that the president is 1,000 times more
important than the secretary, as the salary differential suggests?

How do organizations decide on the distribution of available rewards? At least four mechanisms can
be identified. In more cases than we choose to admit, rewards go to those with the
greatest power (either market power or personal power). In many of the corporations whose
presidents earn eight-figure incomes, we find that these same people are either major shareholders in

38
the company or have certain abilities, connections, or status that the company wants. Indeed, a threat
of resignation from an important or high-performing executive often leads to increased rewards.

A second possible basis for reward distribution is equality. Here, all individuals within one job
classification would receive the same, or at least similar, rewards. The most common example here
can be found among unionized workers, where pay rates are established and standardized with little
or no reference to actual performance level. Instead of ability or performance, these systems usually
recognize seniority as the key factor in pay raises or promotions.
Team Based Rewards
Performance appraisals, whether team or individual, provide feedback to workers or organizational
teams. Traditionally, performance evaluations provide information to help improve individual
performance, increase efficiency and define management’s expectations. Performance appraisals
compare work performed against measurable objectives that the employee and supervisor agreed to
at the beginning of the appraisal period. As work has become more team oriented, performance
appraisals now measure how a team of workers perform rather than just how an individual performs
his job. (Attribution; Deb Nystrom/ flickr/ Attribution 2.0 Generic (CC BY 2.0))

The basis for the social welfare reward system in this country is need. In large part, the greater the
need, the greater the level of support. It is not uncommon to see situations in business firms where
need is taken into account in layoff situations—where an employee is not laid off because she is the
sole support of a family.

A fourth mechanism used by organizations in allocating rewards is distributive justice. Under this
approach, employees receive (at least a portion of) their rewards as a function of their level of
contribution to the organization. The greater the contribution (such as performance), the greater the
reward. This mechanism is most prominent in merit-based incentive programs, where pay and
bonuses are determined by performance levels.

The variety of rewards that employees can receive in exchange for their contributions of time and
effort can be classified as either extrinsic or intrinsic rewards. Extrinsic rewards are external to the
work itself. They are administered externally—that is, by someone else (usually management).
Examples of extrinsic rewards include wages and salary, fringe benefits, promotions, and
recognition and praise from others.
39
On the other hand, intrinsic rewards represent those rewards that are related directly to performing
the job. In this sense, they are often described as “self-administered” rewards, because engaging in
the task itself leads to their receipt. Examples of intrinsic rewards include feelings of task
accomplishment, autonomy, and personal growth and development that come from the job.

In the literature on employee motivation, there is considerable controversy concerning the possible
interrelationship of these two kinds of reward. It has been argued (with some research support) that
extrinsic rewards tend to drive out the positive effects of some intrinsic rewards and can lead to
unethical behavior.

Stephen J. Sauer, Matthew S. Rodgers, William J. Becker, “The Effects of Goals and Pay Structure
on Managerial Reporting Dishonesty,” Journal of Accounting, Ethics & Public Policy, 2018.

Consider, for example, the child next door who begs you to let her help you wash your car. For a
young child, this task can carry considerable excitement (and intrinsic motivation). Now, consider
what happens on a Saturday afternoon when you need your car washed but the child has other
options. What do you do? You offer to pay her this time to help wash your car. What do you think
will happen the next time you ask the neighbor to help you wash the car for free? In other words,
when extrinsic rewards such as pay are tied closely to performance (called performance-reward
contingency), intrinsic motivation—the desire to do a task because you enjoy it—can decrease.

Also, it is important to keep in mind that because extrinsic rewards are administered by sources
external to the individual, their effectiveness rests on accurate and fair monitoring, evaluating, and
administration. Implementation can be expensive, and the timing of performance and rewards may
not always be close. For example, you may perform well on a task, but unless there is a way for that
to be noticed, evaluated, recorded, and rewarded within a reasonable time frame, an extrinsic reward
may not have a significant impact. Intrinsic rewards are a function of self-monitoring, evaluation,
and administration; consequently, these rewards often are less costly and more effectively
administered. For example, even if no one else notices or rewards you for superior performance on a
task, you can still reward yourself with a mental pat on the back for a job well done or a sense of
satisfaction for overcoming a challenge. The implications of this finding will become apparent when
exploring efforts to enrich employees’ jobs.
40
CHAPTER-III

41
 INDUSTRY PROFILE
The global sourcing market in India continues to grow at a higher pace compared to the IT-BPM
industry. India is the leading sourcing destination across the world, accounting for approximately
55% market share of the US$ 200-250 billion global services sourcing business in 2019-20.
The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT industry are
expected to increase by 1.9% to reach US$ 150 billion in FY21. In 2020, the IT industry recorded
138,000 new hires. According to STPI (Software Technology Park of India), the software exports by
its registered units increased by 7% YoY to reach Rs. 5 lakh crore (US$ 67.40 billion) in FY21 from
Rs. 4.66 lakh crore (US$ 62.82 billion) in FY20, driven by rapid digitization and the IT industry's
timely transition to remote working environments that helped to keep up the industry’s growth amid
coronavirus pandemics.
Market Size
The IT & BPM industry’s revenue is estimated at ~US$ 194 billion in FY21, an increase of 2.3%
YoY. The domestic revenue of the IT industry is estimated at US$ 45 billion and export revenue is
estimated at US$ 150 billion in FY21. According to Gartner estimates, IT spending in India is
estimated to reach US$ 93 billion in 2021 (7.3% YoY growth) and further increase to US$ 98.5
billion in 2022.
Indian software product industry is expected to reach US$ 100 billion by 2025. Indian companies
are focusing to invest internationally to expand global footprint and enhance their global delivery
centres. In line with this, in February 2021, Tata Consultancy Services announced to recruit ~1,500
technology employees across the UK over the next year. The development would build capabilities
for TCS to deliver efficiently to the UK customers.
The data annotation market in India stood at ~ US$ 250 million in FY20, of which the US market
contributed ~ 60% to the overall value. The market is expected to reach ~ US$ 7 billion by 2030 due
to accelerated domestic demand for AI.
Investments/ Developments
Indian IT's core competencies and strengths have attracted significant investment from major
countries. The computer software and hardware sector in India attracted cumulative foreign direct
investment (FDI) inflows worth US$ 62.47 billion between April 2000 and September 2020. The
42
sector ranked 2nd in FDI inflows as per the data released by Department for Promotion of Industry
and Internal Trade (DPIIT).
Leading Indian IT firms like Infosys, Wipro, TCS and Tech Mahindra are diversifying their
offerings and showcasing leading ideas in blockchain and artificial intelligence to clients using
innovation hubs and research and development centres to create differentiated offerings.
Some of the major developments in the Indian IT and ITeS sector are as follows:

 In April 2021, Infosys and BP (a global integrated energy provider) signed a memorandum
of understanding (MoU) to implement an integrated energy as-a-service (EaaS) offering that
will include end-to-end management of a customer's energy assets and services.
 In April 2021, Accenture acquired Pollux (a provider of industrial robotics and automation
solutions) to further expand its technological capabilities.
 In April 2021, Accenture acquired Core Compete (a provider of cloud analytics services) to
expand AI-based supply chain capabilities.
 In April 2021, Infosys collaborated with ArcelorMittal to deliver the next-generation
application and business process management services to the company’s (ArcelorMittal)
European operations.
 In April 2021, Accenture and SAP SE announced to extend their partnership to help
businesses embed sustainability across the wide range of business processes—from planning
to execution—in order to complete new value across their industries and supply chains.
 In April 2021, Tata Consultancy Services announced that Wavin, a Netherlands-based global
innovative solutions provider for the building and infrastructure industries, has successfully
implemented the TCS ERP on cloud platform to achieve expansion in new growth markets in
Indonesia and India.
 In April 2021, TCS partnered with Ericsson to assist the company in the establishment and
growth of its cloud-based R&D digital workplace.
 In April 2021, Microsoft launched ‘Dynamics 365 Business Central’, a cloud business
management solution for Indian small and midsized businesses (SMEs).

Government Initiatives
Some of the major initiatives taken by the Government to promote IT and ITeS sector in India are as
follows:

43
  In order to establish an enabling environment for the IT industry, in April 2021, the
Development of Advanced Computing (C-DAC) launched three innovatice technologies
Automatic Parallelizing Compiler (CAPC), Cyber Security Operation Centre (CSoC) as a
Service, and C-DAC’s indigenous High-performance Computing software solutions—
Parallel Development Environment (ParaDE).
 In Budget 2021, the government has allocated Rs. 53,108 crore (US$ 7.31 billion) to the IT
and telecom sector.
 Department of Telecom, Government of India and Ministry of Communications,
Government of Japan signed a MoU to enhance cooperation in areas of 5G technologies,
telecom security and submarine optical fibre cable system.
 In 2020, the government released “Simplified Other Service Provider” (OSP) guidelines to
improve the ease of doing business in the IT Industry, Business Process Outsourcing (BPO)
and IT-enabled Services.

Road Ahead
India is the topmost offshoring destination for IT companies across the world. Having proven its
capabilities in delivering both on-shore and off-shore services to global clients, emerging
technologies now offer an entire new gamut of opportunities for top IT firms in India. The industry
is expected to grow to US$ 350 billion by 2025 and BPM is expected to account for US$ 50 55
billion of the total revenue.

India is the world's largest sourcing destination with largest qualified talent pool of technical
graduates in the world. According to National Association of Software and Service Companies
(Nasscom), the Indian IT industry’s revenue is estimated to reach US$ 194 billion in FY21, an
increase of 2.3% YoY. The sector is the largest employer within the private sector.
This push towards cloud services has boosted hyper-scale data centre investments, with global
investments estimated to exceed ~US$ 200 billion annually by 2025. India is expected to gain a
significant share in the global market, with the country's investment expected to hit ~US$ 5 billion
annually by 2025.
In Budget 2021, the government has allocated Rs. 53,108 crore (US$ 7.31 billion) to the IT and
telecom sector.

44
The IT industry accounted for 8% of India’s GDP in 2020. Exports from the Indian IT industry are
expected to increase by 1.9% to reach US$ 150 billion in FY21. In 2020, the IT industry recorded
138,000 new hires.
The IT & BPM industry’s revenue is estimated at ~US$ 194 billion in FY21, an increase of 2.3%
YoY. The domestic revenue of the IT industry is estimated at US$ 45 billion and export revenue is
estimated at US$ 150 billion in FY21.
Artificial Intelligence (AI) is expected to boost India's annual growth rate by 1.3% by 2035, as per
NITI Aayog. A substantial increase in AI by Indian firms can result in a 2.5% increase in India’s
Gross Domestic Product (GDP) in the immediate term. In September 2020, NASSCOM FutureSkills
and Microsoft collaborated to launch a nationwide AI skilling initiative to train one million students
in AI technology by 2021.
The computer software and hardware sector in India attracted cumulative foreign direct investment
(FDI) inflows worth US$ 62.47 billion between April 2000 and September 2020. The sector ranked
2nd in FDI inflows as per the data released by Department for Promotion of Industry and Internal
Trade (DPIIT).
In 2020, PE investments in the sector stood at US$ 7.5 billion. IT & BPM led the venture capital
(VC) investment with 380 deals in in 2020, contributing 71% to the total deal count. The COVID-19
pandemic has accelerated the demand for third-party data centre services in India.
The Government of India has extended tax holidays to the IT sector for Software Technology Parks
of India (STPI) and Special Economic Zones (SEZs). As of February 2020, there were 421 approved
SEZs across the country, with 276 of them from IT & BPM and 145 as exporting SEZs.

45
 COMPANY PROFILE

Prudent technologies & Consulting, Inc. is a full-service information technologies consulting firm
with more than 18 years of specialization in IT staffing, Data Analytics and Customer Application
Development Solutions. Service range from IT Project Solutions to Offshore IT Solutions to IT
Staffing Solutions. Prudent works with mid-size to Fortune 500 organizations all across the United
States and has offices in Dallas, TX; Houston, TX; Milwaukee, WI; Washington D.C.; and
Hyderadad, India. For more information, visit www.prudentconsulting.com and follow
@prudentcareers
Our Solutions
For over 20years Prudent Technologies & Consulting has helped customers secure the
resources they need to deliver their critical IT initiatives. From general IT Consulting
and Staff Augmentation Services to technology specific Professional Services in
Salesforce, Splunk, Cybersecurity, and AI & Automation, Prudent delivers results time
and time again.

Salesforce is the #1 cloud-based CRM software used by 83% of Fortune 500 companies as of Sep
2018. Salesforce evolved as the world’s best CRM platform, owing to its innovative, reliable and
secured services over the years. Salesforce CRM can tremendously improve the way you run your
business operations in the following ways:

Considering the vast possibilities, it offers, Prudent Technologies & Consulting Inc. has embraced
Salesforce as a Service to help small to mid-size companies and large enterprises unlock a plethora
of opportunities in the Customer Relationship Management (CRM) arena.

Implementing Salesforce could possibly turn out to be a complex and time-consuming process that
needs extensive experience and a strategic implementation partner who brings in experienced
resources with best practices to fully utilize all the features and functionality within Salesforce
CRM.
Prudent’s Salesforce Consulting team has experiences across almost every industry vertical and has
architected and delivered several of use cases. If you are a current Salesforce customer, we can
46
help you maximize your Salesforce investment through our service offerings. And if you are
considering Salesforce to as one of the ways to improve the business operations, we can help you
further define use cases, architect a solution, deliver a POC, and deploy the solution.

As part of their continued investment in AI and Automation, Prudent Technologies and Consulting
is pleased to announce a strategic partnership with award winning AI vendor Digitate

Digitate’s flagship product, ignioTM, is a cognitive system that helps organizations deliver business
assurance, drive business agility and fulfill their digital transformation objectives. Digitate recently
won the AI Breakthrough award for best AI company.

ACCOUNTS PAYABLE SERVICES

Reinvent accounts payable with intelligent automation to improve cash flow, boost compliance
with consistent data and enhance supplier and user experiences.

OUR APPROACH
We combine process knowledge with digital technologies to break functional silos in AP and
deliver superior outcomes. Our experience in delivering accounts payable services managing over
120 million invoices per year helps organizations become agile.
Senior executives share their views on finance transformation in our study
Companies have new expectations from their finance functions. And right now, they need
faster forecasts and insights to make more confident decisions in uncertain times. The
finance teams that have embedded digital technologies and embraced new roles are best
placed to support their businesses. Especially when CFOs have taken on the critical role of
enterprise data guardian. We surveyed 500 senior finance executives to understand how they
are transforming their functions to meet changing expectations.

We have accounts payable solutions that fit your needs

Our accounts payable services and technology solutions automate your invoice processing and
payment function to maintain cash flow and enhance business relations with suppliers.

47
Invoice receipt and capture

Receive invoices electronically and straight into your ERP from multiple sources. Cora A Flow
prioritizes invoices based on the rules you set for timely invoice processing and payment.

Accounts payable process analytics

Configure AP reports and dashboards on key performance indicators to get visibility down to the
transaction level.

e-Invoicing

Accepts invoices in multiple formats from leading global e-invoicing networks. While ensuring
compliance with country specific regulations, e-Invoicing also enables faster payments and more
predictable cash flows for your suppliers. It enabled AP automation and unbound the AP team to
focus on supporting the business to run more efficiently and to improve supplier relationships by
driving on-time payments.

Touchless invoice optimizer

Cora AP Flow uses machine learning to predict delays in invoice processing and suggest actions
that buyers should take to resolve exceptions. It has built-in reminders for escalations to deliver
faster approvals and resolve pending invoices so you can pay vendors on time.

Requestor prediction

Cora AP Flow now enables missing requestor prediction in an invoice. Powered by machine
learning web service it identifies probable requestors based on past data for invoices with missing
requestor information.

48
Supplier management

With improved supplier data management, Cora AP Flow can automate your supplier set-up and
maintenance for greater accuracy, faster cycle times, lower costs, and enhanced controllership. And
since suppliers have real-time access to their invoice status and payment information, they don't
have to contact the accounts payable helpdesk.

Early payment discounts

Cora AP Flow enables suppliers the ability to take discounts on specific invoices so they can get
paid faster. It helps to configure and control early payment discount program, improve supplier
relationships, and deliver cost savings.

Fraud detection and prevention

Cora AP Flow creates a unified and automated system of invoice processing that helps in reducing
expense fraud. It identifies potentially fraudulent demands by flagging if there's invoice
duplication, abnormal invoice value, or other characteristics that raise doubts about demand
authenticity.

Highly scalable infrastructure

Cora AP Flow thrives on ready-to-use functionalities built on a proven SaaS platform. It has multi-
lingual and multi-currency support with built-in fail-over and disaster recovery. Cora AP Flow is a
System of Engagement that builds on your existing IT infrastructure and integrates rapidly with
seamless upgrades.

49
Delivering Salesforce as a Service!
Salesforce is the #1 cloud-based CRM software used by 83% of Fortune 500 companies as of Sep
2018. Salesforce evolved as the world’s best CRM platform, owing to its innovative, reliable and
secured services over the years. Salesforce CRM can tremendously improve the way you run your
business operations in the following ways:

• Better Customer Experience

• Improved Team Collaboration
• Improved Client Retention
• Maximized Upselling
• Rich Automation
• Cross Team Efficiency
• Optimized Marketing
• Accurate Analytics & Reporting

Considering the vast possibilities, it offers, Prudent Technologies & Consulting Inc. has embraced
Salesforce as a Service to help small to mid-size companies and large enterprises unlock a plethora
of opportunities in the Customer Relationship Management (CRM) arena.
Implementing Salesforce could possibly turn out to be a complex and time-consuming process that
needs extensive experience and a strategic implementation partner who brings in experienced
resources with best practices to fully utilize all the features and functionality within Salesforce
CRM.

50
Sales and Marketing Cloud
Customer Relationship Management (CRM) is at the heart of every growing business whether it is
a restaurant or a large enterprise. Salesforce has been ranked the world’s leading CRM tool over
the past several years.
Salesforce Sales Cloud, the traditional CRM tool, enables businesses to keep a track of prospects,
leads, clients and deals on a single platform. The one-stop dashboard enables real-time tracking,
lead management, sales forecasting, workflows, and other features to enable faster and more
accurate sales collaborations.
Quote to Cash (CPQ and Billing)
Customers can streamline product, pricing and quoting business processes by utilizing features
built on Salesforce CPQ (Configure, Price and Quote) application and helps in answering
important questions such as:

Configure
What Is the Best Way To Configure My Products To Sell Effectively And Efficiently?

Price
What Is the Best Method To Price Each Product Under The Given Configuration?

Quote
What Is the Best Way To Improve The Quote Generation Turnaround Time For My Customers?

CPQ makes it easy for the various verticals across an enterprise to optimize & automate the
delivery of accurate price quotes the customer. CPQ integrates with ERP to allow for easy
collaboration between the Sales, IT and Marketing teams.
Salesforce Billing enables error-free bill generation, seamless integration with third-party billing
software, automates your billing process and generates detailed reports with interesting insights.

51
Salesforce Migrations
If you’ve recently acquired a company or been involved in a huge business merger, Salesforce
Data Migration is the best way to keep your business operations streamlined in a quick and hassle-
free manner. Salesforce Migrations within the same architecture are easier and seamless; however,
they can be tricky if not performed under expert supervision. In most cases, migrations into
existing Salesforce instances can cause unexpected behavior post-migration owing to poor data
mapping or improper migration.

Salesforce Cloud Migrations

Whether you need a turnkey data migration solution or a complete migration consultation service,
Prudent’s team of experts can help. Migration to the cloud calls for careful planning and
execution, backed by a team of experts with several years of Industry experience.
Salesforce Integrations
Despite being a complete, enterprise-level CRM solution, Salesforce integrates with other smaller,
non-Salesforce application in your organization for enhanced user experience and seamless
business operations. Salesforce provides the flexibility to integrate with several disparate systems
such as external data sources (ERPs, Supply Chain, Customer Service, HR and more) as well as
data existing on other cloud platforms, databases or applications such as NetSuite, Microsoft
Dynamics, Oracle, SAP using robust APIs that enhance the entire integration process

BOARD OF DIRECTORS
Praveen Panchakarla- President
Mary Ann Knecht
Vice President of Operations

John “Gid” Lockhart

Vice President

Rajesh Cherukupalli-
Managing Director - Salesforce

Natraj Sowmitri –
Hyderabad CEO

52
AWARDS
Dallas, Texas – March 8, 2017 Prudent Technologies & Consulting, Inc. (PRUDENT), a leading
staffing agency in the IT industry announced today they have won Inavero’s Best of Staffing®
Client Award for providing superior service to their clients. Presented in partnership with
CareerBuilder, Inavero’s Best of Staffing Client winners have proven to be industry leaders in
service quality based completely on the ratings given to them by their clients. On average, clients of
winning agencies are 2.5 times more likely to be completely satisfied with services provided
compared to those working with non-winning agencies.
Focused on helping US/International companies find the right people for their job openings,
PRUDENT received satisfaction scores of 9 or 10 out of 10 from 95.2% of their clients,
significantly higher than the industry’s average of 29%. Award winners make up less than 2% of all
staffing agencies in the U.S. and Canada who earned the Best of Staffing Award for service
excellence.
“Trust, efficiency, and quality is what defines PRUDENT. Knowing that we received a client
approval rating at more than 3 times the national average is so rewarding to share with our team.
This client satisfaction award is powerful as it aggregates our customer’s opinion of PRUDENT”
PRUDENT’s President and CEO, Praveen Panchakarla said.
"Staffing firms are giving top companies a competitive advantage as they search for talent in North
America," said Inavero's CEO Eric Gregg. "The 2017 Best of Staffing winners have achieved
exceptionally high levels of satisfaction and I'm proud to feature them on BestofStaffing.com."

53
CHAPTER-IV

54
 DATA ANALYSIS AND INTERPRETATION

I am aware of various rewards monetary and non-monetary reward schemes of Prudent

Globaltech Solution Pvt. Ltd.

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 10 10%
Disagree 35 35%
Neither Agree Nor Disagree 30 30%
Agree 20 20%
Strongly Agree 5 5%
Total 100 100%

35%
35% 30%
30%
25%
20%
20%
15%
10% 10%
5% 5%
0%

StronglyDisagree Neither Agree Agree Strongly Agree

Disagree Nor Disagree

Interpretation:

The above pie chart indicates that 10% of the employees strongly disagreed, 35% disagreed,30%
neither agreed nor disagreed ,20% agreed and 5% strongly agreed that they were aware of the
various rewards schemes (monetary & non monetary). Since the sample size was 100, the
percentage is equal to the no. of employees

55
  I am aware about the basic criteria on which various awards are based.

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 5 5
Disagree 15 15
Neither Agree Nor Disagree 35 35
Agree 40 40
Strongly Agree 5 5
Total 100 100%

40
40 35
35
30
25
20
15 15
10
5
0 5 5

StronglyDisagree Neither Agree Strongly

Disagree Agree Nor Disagree Agree

Interpretation:

The above pie chart indicates that 5% hence 5 employees strongly disagreed, 15% disagreed,
35%neither agreed nor disagreed, 40% agreed, 5% strongly agreed that they were aware of the
basic criteria on which rewards were based.

56
  Rewards are based on clear and objective criteria

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 5 5
Disagree 5 5
Neither Agree Nor Disagree 40 40
Agree 30 30
Strongly Agree 20 20
Total 100 100%

40
40
35
30
30
25
20 20
15
10
5
0 5 5

StronglyDisagree Neither Agree Strongly

Disagree Agree Nor Disagree Agree

Interpretation:

The above pie chart indicates that 5% of the employees and hence 5 employees strongly
disagreed, 5% disagreed, 40% neither agreed nor disagreed, 30% agreed and 20% strongly
agreed that the rewards were based on the objective criteria.

57
  Rewards are given as per criteria

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 25 25%
Disagree 15 15%
Neither Agree Nor Disagree 40 40%
Agree 15 15%
Strongly Agree 5 5%
Total 100 100%

45
40 40
35
30
25
20 25
15
10
5 15 15
0

StronglyDisagree Neither Agree Agree Strongly Agree

Disagree Nor Disagree

Interpretation:

The above chart indicates that 25% and hence 25 employees strongly disagreed, 15% disagreed,
40% neither agreed nor disagreed, 15% agreed, 5% strongly agreed that the rewards were given
as per the criteria.

58
  Favoritism prevails when it comes to giving away awards

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 30 30%
Disagree 10 10%
Neither Agree Nor Disagree 45 45%
Agree 10 10%
Strongly Agree 5 5%
Total 100 100%

45
45
40
35 30
30
25
20
15
10 10 10
5 5
0

StronglyDisagree Neither Agree Strongly

Disagree Agree Nor Disagree Agree

Interpretation:

The pie chart indicates that 30% employees hence 30, strongly disagreed, 10% disagreed, 45%
neither agreed nor disagreed,10% agreed and 5% strongly agreed that favoritism prevails while
giving away the rewards.

59
  Deserving people are rewarded

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 5 5%
Disagree 15 15%
Neither Agree Nor Disagree 30 30%
Agree 40 40%
Strongly Agree 10 10%
Total 100 100%

40%
40%
35%
30%
30%
25%
20%
15% 15%
10%
5% 10%
0% 5%

StronglyDisagree Neither Agree Strongly

Disagree Agree Nor Disagree Agree

Interpretation:

The pie chart indicates that 5% employees hence 5 strongly disagreed, 15% disagreed, 30%
neither agreed nor disagreed 40% agreed and 10% strongly agreed that deserving people were
rewarded in the organization.

60
Rewards are given as and when they become due

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 5 5%
Disagree 5 5%
Neither Agree Nor Disagree 30 30%
Agree 40 40%
Strongly Agree 20 20%
Total 100 100%

40%
40%
35%
30%
30%
25%
20% 20%
15%
10%
5%
0% 5% 5%

StronglyDisagree Neither Agree Strongly

Disagree Agree Nor Disagree Agree

Interpretation:

The above pie chart indicates that 5% employees hence 5, strongly disagreed, 5% disagreed,
30% neither agreed nor disagreed, 40% agreed, 20% strongly agreed that the rewards were given
as and when they became due.

61
Awardees get adequate Publicity

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 5 5%
Disagree 10 10%
Neither Agree Nor Disagree 30 30%
Agree 40 40%
Strongly Agree 15 15%
Total 100 100%

40%
40%
35%
30%
30%
25%
20%
15% 15%
10%
5% 10%
0% 5%

StronglyDisagree Neither Agree Strongly

Disagree Agree Nor Disagree Agree

Interpretation:

The above pie chart indicates that 5% employees hence 5, strongly disagreed, 10% strongly
disagreed, 30% neither agreed nor disagreed, 40% agreed, 5% strongly agreed that the awardees
get adequate publicity.

62
 Good performance is appreciated and recognized by top management
Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 5 5%
Disagree 10 10%
Neither Agree Nor Disagree 30 30%
Agree 40 40%
Strongly Agree 15 15%
Total 100 100%

40%
40%
35%
30%
30%
25%
20%
15% 15%
10%
5% 10%
0% 5%

StronglyDisagree Neither Agree Strongly

Disagree Agree Nor Disagree Agree

Interpretation:

The above pie chart indicates that 5% strongly disagreed, 10% disagreed, 30% neither agreed nor
disagreed, 40% agreed, 15% strongly agreed that good performance is recognized and
appreciated by top management.

63
  Seniors share the credit of good work with their subordinates
Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 5 5%
Disagree 10 10%
Neither Agree Nor Disagree 40 40%
Agree 35 35%
Strongly Agree 5 5%
Total 100 100%

40%
40% 35%
35%
30%
25%
20%
15%
10%
5% 10%
0% 5% 5%

StronglyDisagree Neither Agree Strongly

Disagree Agree Nor Disagree Agree

Interpretation:

The above data indicates that 5% employees strongly disagreed, 10% disagreed, 40% neither
agreed nor disagreed, 35% agreed, 5% strongly agreed that seniors shared the credit of good
work with their subordinates.

64
  Quantum of rewards is proportionate to one ‘s achievement.

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 5 5%
Disagree 20 20%
Neither Agree Nor Disagree 40 40%
Agree 20 20%
Strongly Agree 15 15%
Total 100 100%

40%
40%
35%
30%
25%
20% 20% 20%
15% 15%
10%
5%
0% 5%

StronglyDisagree Neither Agree Strongly

Disagree Agree Nor Disagree Agree

Interpretation:

The above data indicates that 5% employees strongly disagreed, 20% diagreed,40% strongly
neither agreed nor disagreed, 20% agreed,15% strongly agreed that quantum of rewards is
proportionate to one‘s achievement in ABC Corp.

65
  Performance linked monetary rewards are reasonable at the company.

Strongly Disagree Disagree Neither Agree nor Disagree Agree Strongly Agree

Category No. of respondents Percentage

Strongly Disagree 10 10%
Disagree 5 5%
Neither Agree nor Disagree 45 45%
Agree 35 35%
Strongly Agree 5 5%
Total 100 100%

50%
45%
45%
40%
35% 35%
30%
25%
20%

15%
10%
10%
5% 5% 5%
0%

StronglyDisagree Neither Agree Agree Strongly Agree

Disagree Nor Disagree

Interpretation:

The above data indicates that 10% employees strongly disagreed, 5% disagreed, 45% neither
agreed nor disagreed 35% agreed and 5% strongly agreed that the performance linked monetary
rewards are reasonable in the company.

66
  Do you promote within the next two years?

Yes No Neutral

No. of
Category Percentage
respondents
yes 53 53%
No 32 32%
Neutral 15 15%

Promote within the next two years

60%
53%
50%

40%
32%
30%

20%
15%

10%
Interpretation
0%
The table and yes No
the graphs showing about promote withinNeutral
the next two years. About 53% of the

respondents are on Yes about promote within the next two years and 32% are on No. Others on

Neutral i.e.,15%.

67
  Everyone has an equal chance to be promoted

Yes No Neutral

No. of
Category Percentage
respondents
yes 63 63%
No 27 27%
Neutral 10 10%

Everyone has an equal chance to be

promoted
70%
63%
60%

50%

40%

30% 27%

20%
10%
10%

0%
Interpretation yes No Neutral

The table and the graphs showing about everyone has an equal chance to be promoted . About 63%
of the respondents are on Yes about everyone has an equal chance to be promoted and 27% are on
No. Others on Neutral i.e.,10%.

68
  Staff are promoted in a fair and honest way

Yes No Neutral

No. of
Category Percentage
respondents
yes 59 59%
No 33 33%
Neutral 7 7%

Staff are promoted in a fair and honest way

70%
59%
60%

50%

40%
33%
30%

20%
Interpretation
10% 7%

The table
0% and the graphs showing about staff are promoted in a fair and honest way. About 59% of the
yes No Neutral

respondents are on Yes about staff are promoted in a fair and honest way and 33% are on No. Others on

Neutral i.e.,7%.

69
CHAPTER-V

70
 FINDINGS
 35% disagreed that they are aware of various rewards monetary and non-monetary

reward schemes of Prudent Globaltech Solution Pvt. Ltd.

 40% agreed that they were aware of the basic criteria on which rewards were based.

 20% strongly agreed that the rewards were based on the objective criteria.

 25% strongly disagreed that the rewards were given as per the criteria.

 30% strongly disagreed that favoritism prevails while giving away the rewards.

 10% strongly agreed that deserving people were rewarded in the organization.

 40% agreed that the rewards were given as and when they became due.

 40% agreed that the awardees get adequate publicity.

 40% agreed that good performance is recognized and appreciated by top management.

 35% agreed that seniors shared the credit of good work with their subordinates.

 20% agreed that quantum of rewards is proportionate to one‘s achievement.

 35% agreed that the performance linked monetary rewards are reasonable in the company

 About 53% of the respondents are on Yes about promote within the next two years and 32% are on
No. Others on Neutral i.e.,15%.
 About 63% of the respondents are on Yes about everyone has an equal chance to be promoted
and 27% are on No. Others on Neutral i.e.,10%.
 About 59% of the respondents are on Yes about staff are promoted in a fair and honest way
and 33% are on No. Others on Neutral i.e.,7%.

71
 SUGGESTIONS
1. Surveys should be conducted frequently in order to judge satisfaction level of the
employees.
2. In addition to surveys, interaction of HR officers with the employees should also be given
space if possible.
3. Suggestions and discrepancies regarding the various reward schemes should be openly
invited from the employees and should be materialized into action as soon as possible
should not be dumped as paperwork.
4. Formal and Informal meetings: should be conducted to judge the employee satisfaction,
regarding various services & new way out should be searched to tackle the same.

72
 CONCLUSION

Although a small sample size was taken to analyze it, every proportion of population was
represented by the sample appropriately.

The questions were designed using basic principles into consideration i.e. fairness, openness,
timeliness etc. The responses thus obtained were then analyzed to arrive at the conclusion.

The responses obtained in the two extremes were very less, i.e. every question was responded by
the employees avoiding the two extremes of strongly agree & strongly disagree this can be
justified by the fact as explained above in the limitations that the employees were hesitant and
behaved as if some confidential information was being extracted from them or that it indicates
that employees were fairly satisfied with the management regarding the various reward system
schemes.

Majority of the responses obtained were that of ―agree‖ i.e. approximately 30 to 40% 0f
the employees responded ―agree‖ to the questions like rewards are given as per criteria that
indicates that etc., indicating that organization had been fairly successful in keeping the reward
system schemes balanced and satisfactory.

Also it was observed that most of the executives took a lot of time in responding and were less
cooperative and open as compared to the non executive employees, also the satisfaction level
was high in the higher grade above. The SBI employees were enthusiastic and cooperative in
their responses aw well as interactive. After detailed analysis done band wise or grade wise it can
be concluded that the satisfaction level of the employees as well as their awareness regarding
various rewards & promotion schemes was fairly well, i.e. the employees were fairly satisfied
with Reward System of SBI.

73
BIBLIOGRAPHY

74
BIBLIOGRAPHY

1. Andrew, D. P. S., & Kent, A. (2007). The impact of perceived leadership behaviors on
satisfaction, commitment, and motivation: An expansion of the multidimensional model
of leadership. International Journal of Coaching Science, 1(1), 35-56.
2. Baron, R. A. (1983). Behaviour in organisations. New York: Allyn & Bacon, Inc.
3. Barton, G. M. (2002). promotion at work. Scottsdale: World at Work.
4. Board, L. M. (2007). Coaching a stockholder on performance improvement option,
ASTD International conference Atlanta GA, USA.
5. Bull, I. H. F. (2005). The relationship between job satisfaction and organizational
commitment amongst high school teachers in disadvantaged areas in the Western Cape.
Unpublished Masters Dissertation. Cape Town: University of the Western Cape.
6. Ciscel, H. D. (1974). Determinants of executive compensation, Southern economic
Journal, 40(4), 613-617.
7. Csikszentmihalyi, M. (1990). Flow: the psychology of optimal experience. New York:
Harper & Row. Reviewed by Steve Krett.

Websites:

1. www.google.com
2. www.yahoo.co.in
3. www.sbi.co.in
4. https://corp.onlinesbi.com/corporate
5. https://en.wikipedia.org/wiki/State_Bank_of_India

75
QUESTIONNAIRE

76
QUESTIONNAIRE

Strongly Disagree Neither Agree Strongly

STATEMENT Disagree Agree Agree
Nor
Disagree
 I am aware of various
rewards monetary and
non-monetary reward
schemes of the company.
 I am aware about the
basic criteria on which
various awards are based
 Rewards are based on clear
and objective criteria

 Rewards are given as

per criteria
 Favoritism prevails
when it comes to giving
away awards
 Deserving people are
rewarded
 Rewards are given as
and when they
become due
 Awardees get adequate

77
  Good performance is
appreciated and
recognized by top
management
 Seniors share the
credit of good work with
their subordinates
 Quantum of rewards
is proportionate to one‘s
achievement.
 Performance linked
monetary rewards are
reasonable at the
company.

Yes No Neutral
 Do you promote within the next two years?

 Everyone has an equal chance to be 78

promoted
 Staff are promoted in a fair and honest way