EXECUTIVE SUMMARY

As the Indian economic climate has been dynamically changing since 1991, the Human

Resources Personnel of the corporate world are grappling with a wide range of challenges

along with an increasing pressure to show results in terms of profits and measurable

benefits. To sustain their competitive advantage in an era where technology is

transferable, organizations must depend on their human resources for sustained

competitive advantage. The companies must therefore, attract, retain and develop their

talent pool, as talented, motivated and committed employees perform better, stay longer

and make the company grow.

This study has been carried out with the aim of achieving the following objectives:

o To analyze the employee motivation and employee retention practices followed

by IOCL and investigate the problems related to this issue

o To analyze the solutions adopted by Indian Oil Corporation Limited to motivate

their employees and retain them for longer period

The research was carried out using Primary Data collected through Questionnaire and

Secondary Data was collected using sources such as Internet, Newspapers, Journals,

Business Magazines and Reports and Publications

As a result of this comprehensive study it was concluded that Motivation levels of the

employees in IOCL has an effect on the output of the business and concerns both quantity

and quality. Business relies heavily on the efficiency of IOCL staff to make sure that

targets are met in a stipulated time frame. If these employees lack the motivation to

produce completed products and service to meet the demand, then the organizations may

face problems leading to undesirable consequences.

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TABLE OF CONTENTS

CHPATER-1 INTRODUCTION MOTIVATION BACKGROUND

CHAPTER-2 LITERATURE REVIEW THEORIES OF MOTIVATION

HERTZBERG’S TWO-FACTOR THEORY

MCCLELLAND’S NEED THEORY

MASLOW’S NEED HIERARCHY

ALDERFER’S ERG THEORY

MANAGEMENT BY OBJECTIVES

VICTOR VROOM’S EXPECTANCY MODEL

REINFORCEMENT THEORY

ADAM’S EQUITY THEORY:

MCGREGOR’S THEORY X AND THEORY Y

INTRINSIC MOTIVATION THEORY

MOTIVATIONAL & RETENTION PRACTICES OF IOCL AND

ITS COMPETITORS

INDIAN OIL CORPORATION LIMITED (IOCL)

EMPLOYEE MOTIVATION PRACTICES AT IOCL

FACILITIES PROVIDED BY IOCL TO MOTIVATE

ITS EMPLOYEES

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EMPLOYEE MOTIVATION PRACTICES IN BHARAT

PETROLEUM CORPORATION LIMITED (BPCL)

EMPLOYEE MOTIVATION PRACTICES IN HINDUSTAN

PETROLEUM (HP)

CHAPTER-3 OBJECTIVES OF THE STUDY

CHAPTER-4 RESEARCH METHODOLOGY TYPES OF DATA

QUALITATIVE RESEARCH

QUANTITATIVE RESEARCH

SOURCE OF DATA

STATISTICAL TOOLS

CHAPTER-5 DATA ANALYSIS

CHAPTER-6 CONCLUSION & IMPLICATIONS

CHAPTER-7 RECOMMENDATIONS

BIBLIOGRAPHY

APPENDIX QUESTIONNAIRE

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Chapter-1INTRODUCTION

MOTIVATION BACKGROUND

“People don't change their behavior unless it makes a difference for them to do so."

FRAN TARKENTON

In essence, motivation is the internal impulse to take action. It is the feeling triggered

within that compels you to do something. Motivation is the root of every action a person

takes, from simple day-to-day activities to lifelong goals and ambitions. Without

motivation, the progress of the world would come to a grinding stop. Nothing could

improve if every individual capable of working toward change lacked the motivation to

move forward with their plans. Motivation is the internal drive to continuously improve.

The most difficult job that faces a supervisor is learning how to effectively motivate and

keep his/her employees motivated. The average person when asked how to motivate

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someone will tell you what motivates him or her. Unfortunately, everyone is different and

what motivates one employee may only make another employee angry. They must offer

them something valuable as an incentive to work harder and better towards a goal.

In today's fast paced world, work pressure is increasing and work-life balance is

becoming increasingly difficult to achieve. In this scenario, individuals either burn out

quickly or keep switching jobs to manage stress, motivation and pressure along with their

finances. Companies today cannot afford the high attrition rates because as competition

increases, they need to cut costs as well as innovate. This requires them to stem attrition

costs and retain and grow talent for sustained competitive advantage. Therefore they need

to understand employee motivation and its linkage to productivity, performance,

innovation and attrition. They also must understand all the factors that affect and

motivate their employees in varying measures.

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HR CURRENT ISSUES

As the Indian economic climate has been dynamically changing since 1991, the Human

Resources Personnel of the corporate world are grappling with a wide range of challenges

along with an increasing pressure to show results in terms of profits and measurable

6

Globalization Increased Opportunities War for talent

Attrition

Work Intensification Emphasis on Talent Retention, Motivation,

Performance and Development

Globalization Increased Opportunities War for talent

Attrition

Work Intensification Emphasis on Talent Retention, Motivation,

Performance and Development

benefits. Due to globalization and a ‘flattening of the world’, issues like Mergers and

Acquisitions, Cultural and Structural changes, Workforce Diversity, Work-life Balance

are increasingly gaining importance. To sustain their competitive advantage in an era

where technology is transferable, organizations must depend on their human resources for

sustained competitive advantage because it is the employees, collectively and

individually, who shape and grow the company through their vision, ideas and efforts.

The companies must therefore, attract, retain and develop their talent pool, as talented,

motivated and committed employees perform better, stay longer and make the company

grow.

With globalization and advances in IT and telecom, markets have come more competitive

and companies are expanding across the globe – global markets with a physical as well as

electronic distribution network. This means there are more jobs and only a handful of

qualified people for those jobs. Therefore, the increasing war for talent. This talent

crunch leads also to a high attrition rate due to competitors poaching talent. This means

that existing talent needs to be developed and nurtured while new talent acquired and/or

trained, thus more costs. It also calls for leadership identification and development

programmes and a planned periodical succession planning activity.

To make matters worse, the existing employees become increasingly difficult to manage

in case of mergers, acquisitions, organizational restructuring and technological changes

due to an unwillingness to come out of the comfort zone to embrace and adapt to change.

The existing employees in such scenarios either join unions to oppose change, look for

exit options, become de-motivated and under perform or grudgingly accept change. So,

the costs of change rise as productivity and efficiency lounge on the back seat.

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Increasing competition and talent crunch also lead to work intensification, which leads to

issues like stress, burn out and the need for work-life balance. This again spirals down to

more attrition due to de-motivation to perform and motivation to search for new jobs that

either pay more or are less stressful and fulfill their needs and ultimately result in job

satisfaction as well as work-life balance.

Work intensification is not the only contributor to stress and burnout. Contributions are

also made by outsourcing which leads to a change in lifestyle, quick job switches, as well

as absenteeism, which all adds to stress. Greater competition amongst the workforce to

get better jobs and climb up the social-economic ladder, add to the workplace stress and

burnout. This is due to the increase in workforce diversity as more women continue to

join the workforce and as recruiters desperately scout Thomas Friedman’s shrunken-

flattened world for talent. This leads to people from different cultures, genders and

generations working together simultaneously. So now the Human Resources Personnel

need to ensure that all these different individuals, work collaboratively in teams to

increase profits, and then evaluate them on a common platform. Thus comes in the need

for fostering a cohesive organizational culture based on a sense of belonging cultivated

through shared values, vision, beliefs and attitudes to encourage activities and behaviors

aimed towards accountability (ownership of work), creativity, innovation, learning,

openness, transparency, originality and ideation.

A diverse workforce in terms of gender, age and cultural background, also means a

different set of needs, expectations and aspirations along with different styles of working.

Thus integrating them and collectively motivating them is essential for effective and

efficient performance.

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All these HR issues boil down to the words – sustained profitability, which depends on

three requirements a) improve performance and make if more efficient and effective b)

retain high performing individuals, and c) grow them to become visionary leaders and

change agents to make the company grow exponentially.

Now all these are linked inextricably to motivation. Performance-on-the-job, is a function

of the ability to perform and the willingness or motivation to perform. Inability to

perform may be overcome by training. However, for training too, the individual needs to

be motivated enough to learn. A motivated high performing individual would be less

inclined to quit if he/she has sense of belonging with the organization and is aware of the

career growth opportunities within the company.

The profile of organization is undergoing a continuous transformation as a result of

Liberalization and Globalization. Globalization refers to the generalized expansion of

international economic activity which includes increased international trade, growth of

international investment (foreign investment) and international migration, and increased

creation of technology among countries, has led to opening of numerous job

opportunities in India.

The entrance of multi-national firms in the country has led to a stiff competition

between the indigenous industries and the foreign players. The multinational firms are

equipped with good quantity and quality of resources and thus, provide stiff competition

in the business world. The difference in the domestic companies and the Multi-national

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firms is mainly due to the quality of people working towards higher goals, higher quality

consciousness and a penchant for excellence.

Numerous organizations function in a community to provide good and services to

the people. For proper functioning and growth, these organizations utilize numerous

resources of which the Human Capital Resource is an indispensable part. The

organizations employ numerous employees who contribute towards the orientation,

effectiveness and efficiency of the organization.

The employees are the greatest asset and no matter how efficient the organizations

technology and equipment may be, it is no match for the effectiveness and efficiency of

the staff. All the tasks ranging from the production of goods and services to the

maintenance of the infrastructure and are carried out by the people who are employed by

the organization.

In such a situation, every organization is heading towards a better and an efficient

utilization of its resources, both human and non-human. The employees of an

organization constitute a very important resource and to sustain in the ever-changing and

competitive business world, the performance of the people hired becomes a very

important consideration for the organization. To be able to perform better, one needs

motivation.

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Motivation is a force, which helps a person to move towards action through

persuasion and conviction. Motivation is a predisposition of an individual to act towards

meeting a particular goal which reflects ones unfulfilled needs

The level of motivation of the person in doing the task is an important

consideration for optimum utilization. If the person is motivated to do the job, the

performance of the person will be better than when he / she is not motivated to do the

task.

Motivation levels of the employees has an effect on the output of the business and

concerns both quantity and quality. Business relies heavily on the efficiency of your

production staff to make sure that products are manufactured in numbers that meet

demand within the stipulated target. If these employees lack the motivation to produce

completed products and service to meet the demand, then the organizations may face

problems leading to undesirable consequences.

David McClelland is most noted for describing three types of motivational need, which

he identified in his 1988 book, Human Motivation:

Achievement motivation (n-ach)

Authority/power motivation (n-pow)

Affiliation motivation (n-affil)

McClelland argues that n-ach people with strong 'achievement motivation' make

the best leaders, although there can be a tendency to demand too much of their staff in the

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belief that they are all similarly and highly achievement-focused and results driven,

which of course most people are not.

Achievement motivation can be defined as the need for success or the attainment

of excellence. Individuals will satisfy their needs through different means, and are driven

to succeed for varying reasons both internal and external.

The n-ach person is 'achievement motivated' and therefore seeks achievement,

attainment of realistic but challenging goals, and advancement in the job.

However, under similar environment, contribution of the employees differs to a

large extent and this difference can be attributed to different levels of achievement

motivation

TYPES OF MOTIVATION

(1) Achievement Motivation

It is the drive to pursue and attain goals. An individual with achievement motivation

wishes to achieve objectives and advance up on the ladder of success. Here,

accomplishment is important for its own shake and not for the rewards that accompany it.

It is similar to ‘Kaizen’ approach of Japanese Management.

(2) Affiliation Motivation

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It is a drive to relate to people on a social basis. Persons with affiliation motivation

perform work better when they are complimented for their favorable attitudes and co-

operation.

(3) Competence Motivation

It is the drive to be good at something, allowing the individual to perform high quality

work. Competence motivated people seek job mastery, take pride in developing and using

their problem-solving skills and strive to be creative when confronted with obstacles.

They learn from their experience.

(4) Power Motivation

It is the drive to influence people and change situations. Power motivated people wish to

create an impact on their organization and are willing to take risks to do so.

(5) Attitude Motivation

Attitude motivation is how people think and feel. It is their self confidence, their belief in

themselves, their attitude to life. It is how they feel about the future and how they react to

the past.

(6) Incentive Motivation

It is where a person or a team reaps a reward from an activity. It is “You do this and you

get that”, attitude. It is the types of awards and prizes that drive people to work a little

harder.

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(7) Fear Motivation

Fear motivation coercions a person to act against will. It is instantaneous and gets the job

done quickly. It is helpful in the short run.

.

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RETENTION

An effective Employee Retention Program is a systematic effort to create and foster an

environment that encourages employees to remain employed by having policies and

practices in place that address their diverse needs

Importance Of Employee Retention

Loss of Company Knowledge: When an employee leaves, he takes with him valuable

knowledge about the company, customers, current projects and past history (sometimes

to competitors). Often much time and money has been spent on the employee in

expectation of a future return. When the employee leaves, the investment is not realized.

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Interruption of Customer Service: Customers and clients do business with a company

in part because of the people. Relationships are developed that encourage continued

sponsorship of the business. When an employee leaves, the relationships that employee

built for the company are severed, which could lead to potential customer loss.

Turnover leads to more turnovers: When an employee terminates, the effect is felt

throughout the organization. Co-workers are often required to pick up the slack. The

unspoken negativity often intensifies for the remaining staff.

Goodwill of the company: The goodwill of a company is maintained when the attrition

rates are low. Higher retention rates motivate potential employees to join the

organization.

Regaining efficiency: If an employee resigns, then good amount of time is lost in hiring

a new employee and then training him/her and this goes to the loss of the company

directly which many a times goes unnoticed. And even after this you cannot assure us of

the same efficiency from the new employee

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Retention strategies

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Chapter-2LITERATURE REVIEW

All literature was studied to capture, understand and document the entire body of work by

management theorists and human resource experts around motivation. These theories

were used to identify possible factors influencing employee motivation for primary

research

Theories of Motivation

A Wide Array of Needs Employees May Have – A Look at the Various Motivation Theories:

Hertzberg’s Two-Factor Theory

The absence of ‘dissatisfiers’ is not enough to motivate employees. There should be a

presence of ‘satisfiers’ to motivate them. Dissatisfiers denote things that dissatisfy the

employee at the work place and could be anything ranging from a stressful work culture

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Consequences for employersAnd employees

Improved individual and

team performance Satisfied Customers High Morale Reduced turnover

Employee MotivationEmployee

Satisfaction

JobDesign

OrganizationContext

IndividualDifferences

ManagerBehaviour

to unhygienic conditions at work to incorrect expectation setting at the time of

recruitment. Satisfiers may include a flexible work environment, a flat organizational

structure or a good performance appraisal and recognition mechanism.

We need to identify the dissatisfiers and eliminate them. We need to identify the satisfiers

and enhance them. Feedback should be sought about possible satisfiers from department

heads.

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McClelland’s Need Theory:

Employees have three needs that when fulfilled, become drivers for the employees to

perform well within the organization, keep them motivated and loyal to the organization:

(a) Affiliation need, that is, the need to share a sense of belonging, (b) the need for

positive achievement, through successful work accomplishment - the sense of worthwhile

achievement at the organization, and (c) the need for power - employees need to be

empowered enough to take certain decisions on their own without always seeking consent

of their superiors.

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Maslow’s Need Hierarchy:

Maslow explains that, all humans have a hierarchy of needs, and, as the lower level needs

are met, the individual is motivated to achieve each successive level of need:

1. The lowest level needs are biological and physiological needs. These are required

for the basic sustenance of life – basic minimum wages.

2. Following, is by the need for safety - people would not like to work in

environments that are unsafe, or if the travel to their respective work place

endangers them in any way.

3. Next is the need for belongingness. People need to belong to an organization or to

a culture – that is how the fabric of human society is built.

4. Once these are achieved, individuals seek esteem – people desire that those,

whom they admire, should admire them in return, and work towards achieving

that aim. People have a need to lay claim to dignity and respect in the society they

belong.

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5. Once all these four needs are met, employees finally turn to the need for self-

actualization. This means that people need challenges to help them grow and

achieve at their workplace – this will enable them to realize their own potential.

Alderfer’s ERG Theory:

Employees have the need to Exist, the need to feel Related to the organization and the

need for personal and career Growth. These, when collectively satisfied, keep them

motivated.

Alderfer has tried to rebuild the hierarchy of needs of Maslow into another model named

ERG i.e. Existence – Relatedness – Growth. According to him there are 3 groups of core

needs as mentioned above. The existence group is concerned mainly with providing basic

material existence. The second group is the individuals need to maintain interpersonal

relationship with other members in the group. The final group is the intrinsic desire to

grow and develop personally. The major conclusions of this theory are :

In an individual, more than one need may be operative at the same time.

If a higher need goes unsatisfied than the desire to satisfy a lower need intensifies.

It also contains the frustration-regression dimension.

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Management By Objectives:

This means that the human resources of an organization be managed and motivated via

setting purposeful objectives. These goals/objectives must be specific to the employees

and aligned with organizational goals. They:

o Must be set in concurrence with the employees

o Should have a pre-specified time period

Evaluation on the goal progress must be done regularly and according to predefined

measure

Victor Vroom’s Expectancy Model:

This encompasses three steps:

1. Expectancy – this refers to the probability assigned by the employee that an effort

on his part will lead to a certain level of task performance.

2. Instrumentality – refers to the probability assigned by the employee that a certain

level of task performance from him, will lead to various work outcomes like

quarterly bonuses.

3. Valence – refers to the value attached by the employee to various work outcomes,

meaning the value attached to the quarterly bonus by the employee.

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Reinforcement Theory:

Positive employee behavior should be met with positive reinforcements like rewards or

recognition. Negative employee behavior, which the firm wishes to discourage, should be

met with negative reinforcement or punishment, like withdrawal of expected bonus etc.

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3. Rewards-personal goals relationship

1. Effort-performance relationship

2. Performance-rewards relationship

IndividualIndividualEffortEffort

IndividualIndividualPerformancePerformance

PersonalPersonalGoalsGoals

OrganizationalOrganizationalRewardsRewards

1 2

3

Employee Avoids aNegative Consequence(Negative Reinforcement)

or

or

or

Employee Experiences aReward(Positive Reinforcement)

Employee Experiences No Consequences(Extinction)

Employee Experiences aNegative Consequence(Punishment)

A SituationExperiencedBy Employee

Employee Reacts

By ExhibitingBehavior X

StimulusResponse ofEmployee

(Behaviour X)

Consequences forEmployee

Likelihood of Behaviour

X in a Similar FutureSituation

Adam’s Equity Theory:

As per the equity theory of J. Stacey Adams, people are motivated by their

beliefs about the reward structure as being fair or unfair, relative to the inputs.

People have a tendency to use subjective judgment to balance the outcomes and

inputs in the relationship for comparisons between different individuals.

If people feel that they are not equally rewarded they either reduce the quantity

or quality of work or migrate to some other organization. However, if people

perceive that they are rewarded higher, they may be motivated to work harder

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Ratio Comparison

*

Employee’sPerception

Outcomes A

Inputs AOutcomes

AInputs A

Outcomes A

Inputs A

Outcomes B

Inputs BOutcomes

BInputs B

Outcomes B

Inputs B

<

=

>

Inequity (Under-Rewarded)

Equity

Inequity (Over-Rewarded)

*Where A is the employee, and B is a relevant other or referent.

Adam’s Equity Theory

McGregor’s Theory X and Theory Y

Two distinct views of people:

o Negative (Theory X) (lower needs)

o Positive (Theory Y) (higher needs)

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Theory X Workers: Dislike work Must be threatened with punishment Avoid responsibilities Seek formal direction Require security Little ambition

Theory Y Workers: View work as natural Self-directed Exercise self-control Accept responsibility Seek responsibility Make innovative decisions

Intrinsic Motivation Theory

Employees need the following elements to be present in their work environment for them

to feel motivated: (a) choice – employees should have some say in the kind of work they

do, (b) competence – employees should be able and competent and working in an

environment where people are efficient and competent, (c) meaningfulness – employees

should be made to understand that what they are doing is useful for the organization and

(d) purpose – employees must have a purpose and that purpose must be aligned with that

of the organization. Once they see their purpose/goal getting fulfilled through their work,

they will automatically be motivated to continue working and reach newer levels of

achievement through challenging roles and greater responsibilities.

Hygiene factors(Herzberg)

Power & Achievement (McLelland)

Affiliation (McLelland)

Growth (Alderfer)

Relatedness(Alderfer)

Existence(Alderfer)

IntrinsicExtrinsic

Hierarchy of Needs(Maslow)

Motivation Factors(Herzberg)

Hygiene factors(Herzberg)

Power & Achievement (McLelland)

Affiliation (McLelland)

Growth (Alderfer)

Relatedness(Alderfer)

Existence(Alderfer)

IntrinsicExtrinsic

Hierarchy of Needs(Maslow)

Motivation Factors(Herzberg)

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Motivation is internal to man and is not visible in many cases but invisibles and

intangibles are of no less importance than the tangibles. In the economic era of

globalization, e-coms and dot-coms, a motivated workplace is frequently cited as a

hallmark of competitive advantage.

Successful companies today compete principally on the basis of quality, capacity and

commitment of their human capital.

The concept of motivation:

Motivation originally comes from the Latin word movere, which means ‘to move’.

Motivation makes us move to act towards the accomplishment of goals. According to

Stephen .P. Robbins, “Motivation is the willingness to exert high levels of effort towards

organizational goals, conditioned by the effort ability to satisfy some individual need.

Gray and Starke (1952), defined motivation as “the result of processes, internal or

external to the individual, that arouse enthusiasm and persistence to pursue a certain

course of action.”

According to Fred Luthans, “Motivation is a process that starts with a

physiological or psychological deficiency or need that activates behavior or a drive that is

aimed at a goal or an incentive.

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March and Simon (1959), defined motivation as the process which takes place in

the memory of the individual in the following way:

Lower the individual satisfaction, greater the search for better ways of doing the

job.

More the search for alternatives, greater the expected rewards.

Greater the expected rewards, higher the level of aspiration.

Higher the level of aspiration, lower the satisfaction

Thus, according to them, the process of motivation never stops. It keeps on

working within an individual in a circular way.

Motivation can be defined as the forces within an individual that account for the

level, direction and persistence of effort expended at work. It inspires a person into action

and continues him in the course of action enthusiastically. Thus, motivation can be said to

be the fuel or power that keeps the vehicle moving.

Motivation creates the will to work, which is necessary for the achievement of

organizational goals. Motivated workforce is essential for efficient working and optimum

productivity. Motivated workforce improves its skills and knowledge so as to become

more efficient and contribute more to the organization by way of increased productivity.

Gagne and Fleishman (1959), suggest that motivation brings an individuals

abilities and skills to the level of performance and propose the multiplicative relationship.

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Fitts and Posner (1967), state that performance is always determined by the level

of motivation as well as by extent of learning.

Thompson (1959), states that it is a familiar fact that performance of a person

does not always exhibit his ability. Ability and sound training are not sufficient by

themselves to generate success. The agent must be motivated also.

Atkinson and Reitman (1956), found that performance is positively related to

strength of a particular motive only when expectancy of satisfying other motives through

the same action have not been sufficiently aroused to confound to simple relationship.

A study on ‘Executive motivation in five hotels in Delhi’ conducted by Singhal

(2004), included 383 executives working in different five star hotels of Delhi. The

findings of the study were:

“Motivation and performance are dependent on each other. Coefficient of

correlation between motivation and performance is significant and positive which implies

a direct relationship between the two. Coefficient of determination shows that 60% of the

total variation in performance is explained by the motivation. This implies that for better

performance of a hotel, all its executives should be well motivated.”

Out of the types of motivation, achievement motivation has received a

comparatively greater attention of researchers during the last three decades.

30

Achievement motivation is a hypothetical construct designed to explain inter and

intra individual difference in the orientation, intensity and consistency of achievement

behavior in terms of context. Achievement motivation may be characterized as the

tendency to maintain and increase individual proficiency in all areas in which a standard

of quality is taken as a binding (Heckhausen,1963).

McClelland et al (1953), defined the term achievement motivation as “success in

competition with some standard of excellence” A person with a strong need for

achievement wants to excel at some challenging task. This he does not do for profit or

status but merely for the sake of doing well and getting achievement satisfaction out of it.

McClelland (1961), in its book ‘The Achieving Society’ holds achievement

motivation responsible to a great extent for the success of individuals in their profession.

But let this be pointed out that achievement motive does not produce a preference for

moderate risks, concrete feedback or any other trait which is generally found associated

with it. Rather they all, as Saul .W. Gellerman (1963) points out, seems to be a part and

parcel of a whole package of consequences that arise from certain conditions in

childhood and socio-economic background when one refers to achievement motivation or

achievement needs, it means one is using a sort of psychologists’ shorthand to denote a

way of life or a basic attitude towards life and not an elementary psychological particle

comparable; to an atom bomb or a molecule.

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Every one has an achievement motive to some extent but some people are

consistently more oriented towards achievement than others. Perhaps the most important

aspect of a really strong achievement motive is that it makes the possessor very

susceptible to appeals that he tries harder.

When challenged achievement motivated, person will outstrip all others in his

efforts to improve. He tries harder and demands more of himself especially when chips

are down. Consequently, he accomplishes more. Perhaps the most interesting aspect of

achievement motivation is that it seems to make accomplishment an end in itself. He

takes special joy in winning, in competing successfully with a difficult standard. This

means more to him than money or a public pat on the back. He simply finds enough

delight in doing difficult things that he does not need to be bribed to do them.

He does not like money. The lure of profit is that of an objective measure of

success in accomplishing a difficult task and not one, of making the most money for the

least risk and effort.

McClelland’s (1953), “Accomplishment accompanied by profit” is a far stronger

incentive to them than a safe on easy profit by itself. McClelland states that higher the

level of achievement motivation, the more likely is executive to rise to positions of

greater power and responsibility.

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The most important way in which the achievement motive is related to managerial

success is the individual’s attitude towards risks. People who are achievement oriented

like to incur a moderate degree of risk which is big enough to offer some excitement and

hope of a worth while gain (i.e. expectancy of incentive) but not so big that their own

efforts would have less of an influence on the outcome than sheer luck. The extreme of

risk taking are favored by persons whose achievements are rather wealth. An

achievement oriented person prefers a moderate degree of risk because his efforts, skill

and determination stand a reasonable chance of influencing the outcome. (Gallerman,

1963).

Another very important characteristic of achievement oriented person is that, he

likes to have concrete feedback. Once he embarks on a project, he likes to know how well

he is doing. Adults with achievement drives may be more inclined to enter careers with

built in feedback mechanisms such as sales, management, etc (Gallerman, 1963). He

further points out that a man with high degree of achievement motivation is not

necessarily more gifted in organizational ability than the next man but his attitude enables

him to make more use of their ability.

He is practical, venturesome and determined- a formidable combination which

can achieve brilliant results with or without organizational abilities. He prefers experts

over friends, if his work requires assistance. They have a strictly business attitude

towards whatever their business happens to be. They find it difficult to forget about the

task on the hand until it has been completed.

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McClelland (1953), coined the term- n-ach or need of achievement. This is a

score for achievement motivation. To obtain a score for an individual, it is assumed that

the more achievement oriented thoughts he has under normal conditions, the stronger his

motive to achieve must be. In such a case, it seems reasonable to infer that he has strong

“inner” concern for achievement. A standard procedure used by McClelland and his

associates was to give a set of pictures to individuals for making stories to them. Under

normal testing conditions, the pictures, used to elicit stories are sufficiently ambiguous to

evoke a variety of ideas. If someone, however is writing his stories consistently uses

achievement oriented ideas under normal testing conditions, then he would appear to be

someone with a bias, a concern or a need for achievement. So, achievement related ideas

in stories written could be taken to represent the strength of a man concerned with

achievement.

Henry A. Murray (1936), in an explanation of personality as an interaction

between needs and press has also formulated this need, namely, need for achievement

which is tapped in fantasy of TAT stories. If a motive played itself only in fantasy and

never affected the actual behavior of the individual, it would be a little more than

laboratory curiosity. But, McClelland’s group discovered that achievement motive played

a very vigorous role indeed in the real life of people influenced by it. They found that

people, whose thoughts turned to achievement themes when they were asked to compose

a story, were very likely to do something about it in their everyday behavior. The TAT

stories used by them are not a mere romantic escape for day dreamers. On the contrary, it

34

would seem that when doers daydream. They daydream about doing something tangible

which can be portrayed quite reliably through fantasy.

McClelland has laid great stress upon achievement motivation in his book “The

Achieving Society”, he says, “It would not require a great stretch of imagination to

assume that if a number of people with n-ach happened to be present in a given culture at

a given time, things would start to him: They try to get achievement satisfaction out of

what they are doing. Viewed in this light, it would not at all be surprising to imagine that

an increase in achievement should promote economic or cultural growth.

Atkinson’s model (1963), of achievement motivation regarding motivated

performance argues that it is the strength of achievement motive and incentive value of

success that determines the subjective value or attractiveness of success of a particular

behavior. An achievement incentive is present when a person anticipates that his skill and

competencies in the performance of task will be evaluated and that good performance

will produce a feeling of accomplishment.

Tolman’s expectancy theory (1972), states that “The goal directed action

tendency is a joint function of the situation cues that performance is instrumental to

attainment of the goal of the motive. It supports the view that performance is closely

related to an individual’s motivation for achievement.

35

Overall, individuals with high achievement motivation:

Are highly achievement oriented.

Have better memory of in-completed tasks (as they want achievement

satisfaction).

Are more apt to volunteer for work.

Are more active in community and college activities.

Choose experts over friends as working partners.

Need concrete feedback in their work.

Are more resistant to social pressure.

Cannot give accurate reports of what their “inner concern” with achievement

is, and

Generally come from middle class families – (McClelland et al,1953 ;

Atkinson,1958)

36

MOTIVATIONAL & RETENTION PRACTICES OF IOCL AND ITS COMPETITORS

INDIAN OIL CORPORATION LIMITED (IOCL)

IOCL carries out periodic employee motivation and employee satisfaction surveys.

Recent survey results were:

% Frequency of Satisfaction Factors for IOCL Professionals

Satisfaction Factors

0 10 20 30 40 50 60 70 80 90 100

Personal Life

Supervision - technical

Company Policy and Administration

Job Security

Salary

Advancement

Interpersonal relations - subordinates

Interpersonal relations - supervisors/manager

Interpersonal relations - peers

Working conditions

Responsibility

Technical Leadership

Achievement

Possibility of Growth

Recognition

Work Itself

Total

% Frequency High

Factors

37

% Frequency of factors associated with dissatisfaction for IOCL Professionals

% Frequency Factors

0 10 20 30 40 50 60 70 80

Interpersonal relations - supervisors/manager

Work Itself

Company Policy and Administration

Working conditions

Supervision - technical

Interpersonal relations - peers

Possibility of Growth

Recognition

Responsibility

Achievement

Job Security

Interpersonal relations - subordinates

Personal Life

Salary

Customer behaviour

Advancement

% Frequency

38

Clarity

Standards

Responsibility

Flexibility

Rewards

Team Comm

47-A

64-A

70-A

67-A

78-A

88-S

84-S

78-S

73-S

87-S

92-S

61-A

Climate You Create – 9 People You LeadGAP: Any Gap >20

A is for Actual. S is for Should Be.

0 10 20 30 40 50 60 70 80 90 100

Sub-Dim GAP

Organization & Expectation

Mission and DirectionImprovement

Excellence

Autonomy

Risk Taking

Bureaucracy Minimized

Innovation

Performance

RecognitionDedication

PrideCooperatio

nCongenialit

y

Yes

Yes

Yes

Yes

Yes

GAP

GAP

Organizational Climate Report

Employee Motivation Practices at IOCL:

Professional growth activities, comprising of:

Personal Business Commitments

At the start of each year, every Employee is expected to set personal business goals that

align directly with IOCL's overall business goals and values. These goals should guide

the Employee throughout the year. At the end of the year the Employee manager will

evaluate how well the defined goals are achieved, compared to peers, and give the

Employee a PBC (Personal Business Commitments) rating to reflect the overall

performance. This rating will be a key factor in determining performance bonus, pay

increase, and career opportunities.

Individual Development Plan

Once PBC business and development goals are defined, it's time to add details to the plan

of action the Employee will take to ensure he/she meets his/her business objectives. It

provides a clear layout of short-term objectives as well as long-term goals. To complete

the IDP, the Employee and his/her manager agree together that goals and aspirations are

realistic, and that the identified actions support continued development and contributions

to IOCL.

Understanding skills and competencies – the Learning Roadmaps

It is important that each employee understands the skills and competencies his/her

business unit or profession expects him/her to assess and master. Learning Roadmaps and

39

Development Models provide a concise view of the learning activities and resources

available to develop expertise within a given profession, organization, business unit,

technical environment or geography. Some learning tools available to all employees

within IOCL:

o Foundational Competencies

o e-Learning

o IOCL Global Campus

o External education

o Skills assessment

o Knowledge management

Periodically, the competencies of employees are mapped according to their job role and

market demand, and opportunities are outlined for each employee. Employees also have

access to the IOCL internal job market through a tool called ‘Best Person for the Job’. It

matches skills to open vacancies and new work demands. This tool also matches skills to

open vacancies in the entire IOCL organization.

Motivate People Working for a World-class Company

40

IOCL has always believed that its continued success depends on the skills and motivation

of its employees. This is reflected in IOCL’s basic belief in respect for the individual. It

follows from this that IOCL should:

Help All Employees Develop their Potential and Make the Best Use of Their

Abilities

Within IOCL, the focus is on contribution, teamwork and skill acquisition, all of which

enable the company to meet its business challenges while enabling personal development.

All employees participate in a continuous exercise of encouraged self-assessment,

discussion and review.

Provide a Learning Environment Which Encourages Career Development and

Training Opportunities

Our global skills framework allows employees to enhance their technical and industry

skills through the right mix of education, training, knowledge and experience. Our

leadership programs are available for eligible employees who wish to extend their career

along a managerial route.

Maintain Two-Way Communication between Manager and Employee, with an

Opportunity for a Fair Hearing and Equitable Settlement of Disagreements

The relationship between people and their managers is of central importance in the

success of IOCL’s human resources policies. The Company aims for clear and open

communications, and emphasizes the need for involvement and commitment on the

employee’s part. Each employee is assigned a mentor, a coach, a people manager as well

41

as an HR manager. Also, from time to time employees may be asked to participate in

Employee Opinion Surveys in which views will be sought on a wide range of issues

relating to IOCL as a company and an employer. Sometimes, issues will arise which

cannot be resolved with their manager. There is also an Open Door policy which allows

employees to raise and discuss any concern at a higher management level.

Value Diversity in the Workforce and Provide Equal Opportunity for all Employees

IOCL embraces diversity in our workforce. Diversity brings richness to our teams, which

better enables us to reflect the interests and demands of our customers and to reflect the

characteristics of the communities in which the employees live. IOCL’s work

environment is inclusive of individuals regardless of race, sex, sexual orientation,

religion, disability or any other characteristic. IOCL is fully committed to equal

opportunity for all employees.

Reward and Profit Sharing

Rewarding employees financially improves levels of employee motivation and thus

improves productivity, which ultimately shows up in the 'bottom line'. IOCL believes that

part of the increased profits must be circulated back to the workforce responsible for it.

Staff Welfare Policy

IOCL firmly believes, that creating an environment that promotes excellence coupled

with a feeling of caring and concern towards individual employees, will contribute

towards improving morale and reducing attrition. While there is a system in place to

reward/award employees on the basis of performance, we need to focus on building team

work and a feeling of belonging.

42

Employee Assistance Programme - MiTR

The Employee Assistance Programme stems from our emphasis on the physical and

emotional well-being of our employees to ensure a fit, healthy, productive workforce.

MiTR is constitutes a team of emotional health experts - to provide free counseling

services to employees.

The Employee Assistance (EA) offers free, confidential counseling and referral services

designed to help employees and their immediate family members resolve personal,

emotional and behavioral problems / issues that may be interfering with their work or

home life. Counseling may be done face to face or appointments taken for telephone

counseling. Options of e-counseling are also available. The overall objective is to

improve employee well-being and enhance their work / life balance. Issues dealt with

include:

o Anger management

o Dealing with stress

o Difficult life changes

o Relationships

o Work related problems

o Parenting concerns

43

Flexible Benefit Plan Policy

The Flexible Benefits Plan (FBP) is designed to help reduce an employee's taxable base.

Center of competency (CoC)

The vision of CoC is to Create, Nurture and Build Professionals who are the Best in the

Business.

The goal is to grow skilled resources to support both current and future business

direction.

The Center of Competence (CoC) carries out competency analysis and development

activities. This group was formed to provide necessary resources, competencies and

competitive advantage to the various Business Units. It is responsible for its activities in

the locations Bangalore, Pune and Gurgaon. It addresses the training and development

needs of the employees through classroom training, on-the-job skilling, certification,

seminars/ conferences, computer based training, videos for training and IOCL global

campus. It also evaluates the gap between the requirement and availability in terms of

employee competencies available to IOCL.

India learning centre

The objective to set up this physical place of learning was to provide a wide range of

viable learning alternatives or modes for employees and managers to pursue continuous

learning and also to facilitate our journey towards becoming a learning organisation. Our

Learning modes are based on what the employees can influence and understand of their

44

development needs. Employees can choose from video learning, or computer based

learning or global campus CD’s or learning team rooms or library or opt for external

trainings.

FACILITIES PROVIDED BY IOCL TO MOTIVATE ITS

EMPLOYEES:

MEDICAL FACILITIES:

Employees are provided free medical facilities, both ambulatory and hospitalization.

Fully equipped medical clinics are functioning at all important work places at base

stations manned by competent medical officers. The employees’ families are

provided medical facilities under Contributory Scheme on payment of nominal

contribution.

STAFF HOUSING COLONIES:

Staff quarters are provided at Mumbai, Calcutta, Delhi and Chennai and on some

other major stations subject to availability. Employees who are allotted staff quarters

are not paid House rent allowance (HRA). The recovery of license fee is made at the

rate laid down by the Corporation from time to time.

CANTEENS:

45

Subsidized canteen services are provided at Delhi, Calcutta, Mumbai, Chennai,

Hyderabad, Bangalore and at Ahmedabad. At outstations subsidy is given to the staff

clubs formed by the staff for running tea clubs.

46

LOANS:

Housing Loans: Employees are eligible for grant of housing loan subject to

availability to availability of funds after completion of 5 years of service. Maximum

housing loan can be granted upto Rs 3 lakhs.

Vehicle Loans: Loans are granted for purchase of cars, scooters and cycles, subject to

availability of funds. Vehicle loan limits are as under:

New car Rs 75,000

Old car Rs 50,000

New scooter/ motor cycle Rs 15,000

Old scooter/ old motor cycle Rs 6,000

Cycle Rs 600

Miscellaneous Loan: Employees are also granted miscellaneous loans for meeting

various contingencies up to a maximum of Rs 15,000/-.

47

GROUP INSURNACE SCHEME

On the death of an employee while in service, his family is paid the group insurance,

quantum of which depends on the pay drawn by the employee at the time of this demise.

This is a non contributory scheme. The insurance amount varies from Rs 80,000 to Rs 2

lacs.

0-4975 - 80,000

4976-6550 - 1,10,000

6551-7775 - 1,50,000

7776- above 2 lacs - 2,00,000

48

IOCL EDUCATIONAL SCHOLARSHIP SCHEME FOR EMPLOYEES’ WARDS:

The wards of employees studying in class II and above are granted educational

scholarship for maximum of two wards. The amount of scholarship varies depending

upon the class, which the student is studying, and the type of course he is pursuing.

a) Under this scheme, the ward of an employee who has put in one years’ service

is granted scholarships for studies.

b) Employees in erstwhile grade ½ are eligible to get the scholarship for two

children irrespective of the marks obtained by them. They get the scholarship

on ‘Pass Basis’ in the last annual examination.

c) For all other employees, the first scholarship is given to the child obtaining a

minimum of 50% marks in the aggregate and the second child obtaining a

minimum of 60% marks in the aggregate in the last annual examination.

Wards of SC/ST employees are eligible for grant of scholarship on their

assign the examination irrespective of the percentage of marks obtained.

49

d) The children studying in Class II onwards are eligible for grant of scholarship

in a year, which are as follows:-

Class II to IV Rs. 125/-

Class V to VIII Rs 250/-

Class IX to XII Rs 375/-

Graduation/ Post graduation Rs 500/-

Diploma in Engg/ Medicine Rs 625/-

Diploma in Business/marketing/

Financial/ Personnel/ Hotel

Management/ Costing & like

Courses. Rs 625/-

Degree in Business/ marketing/

Financial/ Personnel/ Hotel

Management/ Engineering/

Medicine/ Chartered Accountancy

Costing & like Courses. Rs 750/-

HOLIDAY HOMES

50

Holiday homes have been established at a number of hill resorts and places of tourist

interest. Staff is required to pay a nominal rent for the accommodation.

LONG SERVICE MEMENTOS

Employees on completion of 25 years of satisfactory service are awarded long service

mementos in recognition of their services.

FESTIVAL ADVANCE

Festival advance is admissible to all employees on one occasion in a calendar year on

Holi/Id-ul-fitr/ Dusshera/ Diwali/ X-mas festivals. Employees with less than six years

of service can avail festival advance only after they furnish a surety of another

employee of IOCL who has put at least six years service in IOCL. The advance

payable is Rs 3,000/- and Rs 4,000/- depending upon the employee’s basic pay and is

recovered in 10 monthly interest free instalments.

FINANCIAL ASSISTANCE TO EMPLOYEES PURSUING HIGHER STUDIES

Employees who wish to pursue higher studies are granted financial assistance subject

to a maximum of two courses in the entire service of the employee. Employees are

reimbursed tuition fee, admission fee, examination fee and an amount up to Rs 300/-

for the purchase of books.

COOPERATIVE THRIFT & CREDIT SOCIETY/ FAIR PRICE SHOP/ DEATH

BENEFIT SOCIETY

51

The company grants various facilities, to the above societies, formed by the

employees from time to time.

SUBSIDIZED TRANSPORT

Employees working at the offices at Delhi, Bombay and Calcutta are provided fee/

subsidized transport from various rallying points.

WELFARE FACILITIES IN IOCL

Employee benefits can be classified under statutory benefits and non-statutory

benefits:

Statutory benefits are covered under the following Acts:

- Workers Compensation Act - 1923

- Provident Funds Act - 1925

- Payment of Wages Act - 1936

- Industrial Disputes Act - 1947

- Employee State Insurance Act - 1948

- Factories Act - 1948

- Provident Fund and Misc Provisions Act - 1952

- Payment of Gratuity Act - 1972

52

NON STATUTORY BENEFITS TO THE EMPLOYEES OF IOCL

MEDICAL BENEFITS

For employees - Non-contributory

For employees families - CFMS - Contributory

CANTEENS

Staff Canteens

Tea Corners at Outstations / Tea Clubs

STAFF HOUSING COLONIES

At Delhi, Mumbai, Kolkata, Chennai, Bangalore & Ahmedabad

COMMUNITY CENTERS

SPORTS

Sports Clubs

Recreation Centers

53

HOLIDAY HOMES

WR - Goa, Lucknow

ER - Gangtok

SR - Kodaikanal

NR - Mussoorie, Dharamshala

GRANTS

Discretionary grants - for extraordinary situations - non Repayable.

SPECIAL ADVANCE

For natural calamities like flood or drought, advance is repayable in certain monthly

instalments.

LOANS

Housing Loans

Vehicle loans (cycle, scooter & car)

54

Miscellaneous loans (repair of house, repair of car, marriage, higher education for

children, religious ceremonies, for medical expenses).

FESTIVAL ADVANCE

IOCL EDUCATIONAL SCHOLARSHIP SCHEME

LONG SERVICE MEMENTO

FUNERAL EXPENSES (Death while in service)

RETIREMENT GIFT

GROUP INSURANCE

Ranging within 80,000/- to 2,00,000/- based on the basic pay.

LEAVE ENCASHMENT (upto 300 days)

PASSAGES

Serving employees 100% 95% 85%

Below 5 years 2 - 3

5 years 2 1 2

7 years 2 2 1

10 years 2 3 -

20 years 2 4 -

25 years 2 5 -

55

EMPLOYEE MOTIVATION PRACTICES IN BHARAT PETROLEUM CORPORATION LIMITED (BPCL)

Strong fundamentals embedded within the company. The company works by a set of

values or operating principles, which forms the basic fabric of BPCL. This has helped in

maintaining the organisation as an integrated whole. The pilot teams that went from Delhi

to commence operations in Mumbai and Chennai and from Mumbai to start in Navi

Mumbai and Pune, were already deeply entrenched in the value system, which helped in

spreading a uniform culture across the different centres.

The values laid down in the company’s preamble are ‘Intensity to win’, ‘Integrity and

Honesty’, ‘Teamwork’, ‘Respect and Dignity’, ‘Accountability’, ‘Fun’, ‘Customer

Centricity’, ‘Innovation and Excellence’. All these are under the umbrella of the

company’s mission statement, which reads: “To unleash India’s human potential by

pioneering innovative business solutions for the world.” Compensation is directly linked

to these operating principles. Increase in salary is based on how dedicatedly the

employees follow these values, including the value of fun.

The willingness of the employees to follow these operating principles is because of the

importance that the company has empowered them with. The company identifies that the

three pillars on which a company rests are technology, systems and processes and people.

It has identified that people are the most important resource in the petroleum industry and

therefore the significance of effectively managing the asset. As a result all efforts are

directed in meeting that objective. The HR policies of the company are designed in terms

of what employees want and not what the company wants.

56

At the time of induction, the employees are trained on global culture and all the other

different aspects of their job. They are also given soft skills and English language training

since they have interaction with clients globally. The training ensures that they speak

grammatically correct, clear and unaccented English so that it is understood clearly by

all. The employees thus do not feel the pressure or discomfort of a new accent. They

eventually pick up the accent on their own as they interact with customers. This allows

the employees to grow comfortably.

Team heads and managers recognise the development needs of their team members and

training is accordingly imparted. The performance is regularly gauged through a

performance management system, which involves a one-to-one personal contact.

Counselling is also provided on the basis of shortcomings. Still the challenge of finding

the right set of people for a job is very pressing.

One of the means of motivation is through instilling a sense of belonging. While

compensation is an important motivational factor it is not the only one. Making

employees participate and contribute in different activities helps in keeping them engaged

in the organisation and brings about a sense of belonging. In fact, there are even rewards

for participation.

The HR department only acts as a facilitator of employee initiatives rather than driving

them. The initiatives are largely driven by the employees themselves. For instance, the

colour schemes used in the workplace and canteen. The employees initiate all parties, fun

activities, etc. Teams can suddenly come up with an idea of a movie, pizza party, disco or

picnic for which they do not need to come to HR department for sanction or approval.

The team leader and his/her team drives the entire planning and execution keeping their

57

own work schedule in mind. There is an annual budget allocated to each of the teams for

all the extra curricular activities.

This is well complemented by an open and transparent culture, with any employee free to

move into the CEO’s cabin and discuss their problems. The company has even discarded

off prefixes like ‘Sir’, ‘Mr’, and ‘Madam’.

When an account is won there’s a cake cutting ceremony. Also, on the recreation front,

BPCL provides for a gym and a recreation centre with different games like chess, carom,

etc, in the office premises.

While ensuring fun at workplace the company also takes care of its employees’ health

with the work environment being designed keeping the ergonomics in mind. The whole

idea is to have comfortable and spacious work environment for the employees so that

they do not feel stressed out. The workstations are also with ergonomic features. In

addition to this, there is a health centre in each location, with a nursing assistant and a

doctor on call. Further, all the employees are covered under medical insurance.

The company also keeps in mind the significance of meeting employees’ career growth

aspirations. The company recognises that career development is not only vertically but

there is also a lot of scope for horizontal growth opportunities in terms of moving up the

value-chain and handling more difficult and critical clients and processes.

Employees are allowed to move out from one process to another if he or she does not

want to continue with it any longer. There is also the provision for moving internally

between the different BPCL branches. A recent study conducted by the company

measured its employee satisfaction level at 70 percent.

58

EMPLOYEE MOTIVATION PRACTICES IN HINDUSTAN PETROLEUM (HP)

HP has a three-pronged approach when it comes to ensuring employee motivation.

The company provides:

o Learning value - add through opportunities for continuous learning and exposure

to technology and assignments, as HP partners with clients in transforming their

businesses;

o Financial value - add through competitive salaries, variable pay philosophy, asset

generation opportunities and;

o Emotional value - add through a fair and rewarding work environment and a

culture that has been built in HP through various initiatives and systems.

Their recruitment process is aligned to business requirements so as to ensure goal

alignment between business objectives and employee goals. One of the key factors they

look for in a prospective employee is ‘learnability’ — the ability to derive generic

knowledge from specific experiences and apply the learning to new situations. Other

factors looked for are, analytical ability, teamwork and leadership potential,

communication and innovation skills with a practical and structured approach to problem

solving.

HP has a comprehensive and integrated role-based performance management system. It’s

a combination of task and competency evaluation-based on pre-defined parameters for

each role. This system integrates with the reward systems as well as the training systems.

59

The variable compensation philosophy is aligned with individual, team and company

performance while reinforcing high performance work ethic.

HP has consciously created a networked, non-hierarchical organisation with a

professional, result-driven work ethic, thereby encouraging and empowering every

member of a project team to contribute to the team effort. The company culture strictly

upholds and fulfils its employee's needs. The five components of 'organisation culture',

propounded by HP are: performance, sociological, psychological, financial needs and the

'ability to compete'. Organisation culture is important as it motivates people to work hard

and stay with the business. Culture travels and takes the top-to-bottom route.

60

Chapter-3OBJECTIVES OF THE STUDY

The following are the objectives of my study

o To know the various motivational techniques used in Indian Oil Corporation

Limited

o To study the retention strategies of Indian Oil Corporation Limited.

o To study how proper motivational measures help in retaining the employees.

o To highlight the effect of these strategies on performance of the employees.

61

Chapter-4RESEARCH METHODOLOGY

TYPES OF DATA

The Research will be conducted in two stages:

Qualitative

Quantitative

QUALITATIVE RESEARCH

In this an effort will be made to understand the basic concept and strategies, which will

help to form the questionnaire.

QUANTITATIVE RESEARCH

A questionnaire will be prepared for this purpose, keeping in mind the important factors,

which would enable to meet the objectives of the project. Database of employees will be

prepared and the required information was gathered.

The Research details will be summarized as follows:

Type of research Exploratory Research

Sample size : 60

Sample unit : Officials of Indian Oil Corporation Limited

Sample Area : NCR Delhi

Sampling technique : Quota Sampling

62

Source of Data

Primary Data : Questionnaire

Secondary Data : Internet, Newspapers, Journals, Business Magazines,

Reports and Publications

Statistical Tools : Simple statistical tools like tables, pie charts, bar diagrams

was used for the analysis of data and its presentation

63

Chapter-5DATA ANALYSIS

Q1. Which one of the following actions is likely to motivate Peak performers in IOCL?a) Bench marketing b) Quality Circlesc) More Money d) A mutual mission

64

Q2. In your opinion which condition for high motivation levels in IOCL is used?1) Autonomy 2) Learning 3) Team work

65

Q3. In your opinion pay checks & other cash incentives facts which of the

following motivational test.

a) Availability b) Reversibilityc) Visibility d) Durability

66

Q4. In IOCL which reward may give rise to more effective extrinsic motivations.

a) The commitment of job it selfb) Recognition & feedback from co, workers, supervisors & Customersc) Accomplishing goals that are challenging & meaningful

67

Q5. Which of the following motivations are likely to be intrinsic in IOCL?

a) Pride informing excellentb) The excitement & pleasurec) Design to exceed one’s premiumd) Achievement of deep rooted value

68

Q6. In IOCL the phenomenal level of employee commitment, productivity &

even love is based on productivity even love is based on principles of

1) Capture the hearts & minds of all your employees2) Open communication between all levels of your organization3) Create partnership between all employees built upon trust, equality &

sharing.Are you satisfied a) Yes b) No

69

Q7. The rewarding components of jobs structure in IOCL consists of1) Skill variety 2) Task identity3) Task significance 4) Autonomy Are you satisfied a) Yes b) No

70

Q8. In your opinion the goals of peak performance employees are1) To understand & generate self motivation2) To learn all they can about how to motivate peak performance3) To give their people sufficient reasons to excel4) To offer special assistance to standard performers but to stay out of the way of peal performers unless they ask for help

71

Q9. In your opinion does grading systems motivates an employee to give their

best?

1) Yes 2) No

72

Q10. Money is not only means of satisfying the economic needs but also a measure of one’s power, prestige, independence & happiness, independence & happiness1) Agree b) Disagree

73

Q11. What motivates an employee is a must to retain in an organisation

a) Bonus b) Incentives c) Reward

74

Q12. In your opinion is promotion a major component in retaining an employee?

1) Agree 2) disagree3) Strongly agree 4) Strongly disagree

75

Q13. IOCL gives job security to their employees, does this strategy helps in training employee?

1) Agree 2) disagree3) Strongly agree 4) Strongly disagree

76

Q14. In IOCL different types of bonus are used as retention strategies which one is

effective in your opinions.

1) Spot bonus award2) Non cash bonus3) Holiday bonus4) Sales Commission

77

Q15. In your opinion what helps an organization to retain any employees at last

moment

1) Risk analysis2) Quit Interviewc) Rewards

78

Q16. IOCL uses three plans to motivate an employee to retain in their

organisation i.e.

a) Bonus Plan b) Commission Plan c) Incentive Plan– Tick the best one

79

Q17. IOCL was uses different reward programmes, which is most effective in

motivating an employee to retain.

1) Variable pay 2) Profit Sharing 3) Incentive Plan– Tick the best one

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Q18. Does jobs rotation helps in retaining an employees

a) Yes b) No

81

Q19. Performance Appraisal motivates a person to give his best, but does it de-

motivates a person to work

a) Yes b) No

82

Q20. What motivates you to remain in IOCL?

a) Company Nameb) Salary Packagec) Employee loyalty

83

Q21. Kindly tick the areas where you feel more training should be provided to the

employees to reduce attraction rate

a) Capacity Buildingb) Task Relatedc) Motivationald) Organizational Ethics

84

Chapter-6CONCLUSION & IMPLICATIONS

The profiles of organizations like IOCL are undergoing a continuous

transformation as a result of the demographic, technical and other changes taking place at

the work places Globalization, which refers to the generalized expansion of international

economic activity which includes increased international trade, growth of international

investment (foreign investment) and international migration, and increased creation of

technology among countries, has led to opening of numerous job opportunities in India.

The entrance of multi-national firms in the country has led to a stiff competition

between the indigenous industries and the foreign players. The multinational firms are

equipped with good quantity and quality of resources and thus, provide stiff competition

in the business world. The difference in the domestic companies and the Multi-national

firms is mainly due to the quality of people working towards higher goals, higher quality

consciousness and a penchant for excellence.

In such a situation, every organization like IOCL is heading towards a better and

an efficient utilization of its resources, both human and non-human. The employees of an

organization constitute a very important resource and to sustain in the ever-changing and

competitive business world, the performance of the people hired becomes a very

important consideration for the organization.

85

Numerous organizations function in a community to provide good and services to

the people. For proper functioning and growth, these organizations utilize numerous

resources of which the Human Capital Resource is an indispensable part. The

organizations like IOCL employ numerous employees who contribute towards the

orientation, effectiveness and efficiency of the organization.

All the tasks ranging from the production of goods and services to the

maintenance of the infrastructure and are carried out by the people who are employed by

IOCL.

Motivation levels of the employees in IOCL has an effect on the output of the

business and concerns both quantity and quality. Business relies heavily on the efficiency

of IOCL staff to make sure that targets are met in a stipulated time frame. If these

employees lack the motivation to produce completed products and service to meet the

demand, then the organizations may face problems leading to undesirable consequences.

Of the different types of motivation, Achievement Motivation, which means the desire or

force that makes a person do the assigned job in the best possible manner has a great

relevance in an organizational set-up and performance at work in IOCL.

Some suggested characteristics and attitudes of achievement-motivated people:

Achievement is more important than material or financial reward.

Achieving the aim or task gives greater personal satisfaction than receiving praise

or recognition.

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Financial reward is regarded as a measurement of success, not an end in itself.

Security is not prime motivator, nor is status.

Feedback is essential, because it enables measurement of success, not for reasons

of praise or recognition (the implication here is that feedback must be reliable,

quantifiable and factual).

Achievement-motivated people constantly seek improvements and ways of doing

things better.

Achievement-motivated people will logically favor jobs and responsibilities that

naturally satisfy their needs, i.e. offer flexibility and opportunity to set and

achieve goals, e.g., sales and business management, and entrepreneurial roles.

The employees in IOCL are the greatest asset and no matter how efficient the

organizations technology and equipment may be, it is no match for the effectiveness and

efficiency of the staff.

However, under similar environment, employee’s contribution differs to a large

extent and this difference can be attributed to difference in the levels of Achievement

Motivation.

The findings of the study shall be beneficial to all the organizations in

understanding the correlation between level of Motivation and retention at an individual,

employee as well as employer level, which will finally contribute to a win-win situation

for the organization in the long run.

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Chapter-7RECOMMENDATIONS

Strategies adopted to motivate employees could be as follows:

1. Greater challenges and responsibilities should be entrusted to employees at

regular intervals with their consent. They will thus step out of thinking within

their comfort zones in their every-day tasks. This would stimulate interest in their

work, stimulate their thought process and broaden their horizons. This will let him

know that his managers are aware of his abilities and repose a confidence in him.

It will motivate him/her to perform better and also take care of development and

career growth needs.

2. Thanks personally, timely, often & sincerely

3. At Staff meeting announcements should include rewards and recognitions

4. Free massage therapy during a stressful work period

5. Reward late night with early departures

6. Honour your promises – in terms of psychological contract

7. Provide career coaching

8. Establish goals that are SMARTER: specific, measurable, acceptable, realistic,

timely, extending of capabilities, and rewarding to those involved.

9. Empowerment – employees must be empowered to take certain decisions on their

own

10. Transparency in HR policies and processes

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11. Give your employees respect. Example, if your salespeople enjoy their encounters

with you, they are much more likely to greet customers with a positive attitude.

They are also much more likely to enjoy their work when they don't a boss

observing every move they make. Also, a respected employee feels cared for and

will thus tend to stay for longer within the organization. Thus it helps improve

performance and stem attrition.

12. Opportunities to socialize: quarterly parties or dinners. Club membership to senior

management. Contests like ikebana, singing competition etc. Or inculcating a

sense of belonging by celebrating milestones in the employee’s life such as

marriage, birth of baby and even annual events like birthdays and anniversaries.

13. Quality of supervision is critical to employee retention. People leave managers

and supervisors more often than they leave companies or jobs.

14. Profit-Sharing Based on Employee Contribution

15. Flexible Salary Benefits for minimum tax liability

16. Medi-Claim/Insurance Cover

17. Annual Pay Hike (Performance Based)

18. Annual Retention Bonus

19. Skill enhancement and Training and Development at the organization through

workshops, lectures etc.

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20. Equality at work and absence of arbitrariness in decisions: for that we need

formalized processes and guidelines for all HR functions so that bias or

arbitrariness do not creep in.

21. Counseling to manage stress at work

22. Information: At any time, all of your employees should have a pretty good idea of

how business has been and the issues that the company is dealing with.

23. Treat your employees as stakeholders in your company – a sense of shared fate

and shared benefits.

24. Set Clear Expectations:

a. Company’s expectations from each employee and

b. Scope of the job and growth in the company for the employee.

25. Resources utilization in the organization is a must. How many people could

contribute far more than they currently do? You just need to undertake

competency mapping and training needs identification.

26. Senior Managers – Presidents of small companies or Department/Division heads

in larger companies must meet employees periodically to keep a tab on the pulse

of their organization and to help employees feel their presence acknowledged.

27. Employee Suggestion Schemes for a) idea generation and b) employee

participation in management.

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28. REWARDS:

a. Build a high degree of recognition value into every reward you offer.

b. Rewards should be performance based.

c. Reward only desired output.

d. Tell the employee what he is being rewarded for.

e. Don’t confuse employees with too many rewards.

f. Rewards should be given immediately after the performance has taken

place, because time delay makes them lose their meaning.

g. Make sure the reward is something that the employee would like.

Personalizing rewards shows that a company cares enough to discover

what "interests" each employee, rather than just distributing generic items,

which might be considered worthless by the employees.

h. Non-cash rewards:

ESOP’s

Gift for not taking more than one off in two months to curb

absenteeism

Giving one Friday as ‘half-day’ to the 5 highest performers

Certificates of recognition with a nominal cash reward of Rs. 1000

for income bands up to 6 LPA.

Merchandise Vouchers (Bowling, Shoppers Stop, Spa, Club’s)

Movie Tickets

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Dinner for highest performer along with spouse.

Party for highest performer at the work place where subordinates,

colleagues and managers acknowledge the contribution.

Points: Similar to a frequent flyer program, reward winners

accumulate points that can be redeemed

Merchandise, example, Tickets to a cricket match

One-day vacation to Agra or to some resort for top performing

teams.

“Employee of the Month” rewards.

i. Employees should be allowed to choose a preferred reward from a range

of rewards that we offer them.

j. HR needs to decide whether the rewards programme is being offered as

recognition or as an incentive.

k. Rewards programmes should be clearly defined in terms of duration,

eligibility and performance measures. Also, they should not mean an

additional tax burden for the employee.

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BIBLIOGRAPHY

1. Pohlmann, T., Cameron, B. & Dawe, C. (2001, November) The Adaptive Workforce.

The Forrester Report.

2. Ulrich, David and Wayne Brockbank. The HR Value Proposition. Harvard Business

School Press. Cambridge, 2005, p 116.

3. Adams, J. S. (1965). Inequity in social exchange. In L. Berkowitz (ed.), Advances in

Experimental Social Psychology. New York: Academic Press.

4. Dickson, W. J. (1973). Hawthorne experiments. In C. Heyel (ed.), The Encyclopaedia

of Management, 2nd ed. (pp. 298-302). New York: Van Nostrand Reinhold.

5. Robbins, Stephen P. Organizational Behaviour, 10th ed. San Diego University Press.

Prentice Hall 2004.

6. Harpaz, I. (1990). The Importance of Work Goals: An International Perspective.

Journal of International Business Studies, 21. 75-93.

7. Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The Motivation to Work.

New York: John Wiley & Sons.

8. Kovach, K. A. (1987). What Motivates Employees? Workers and Supervisors give

Different Answers. Business Horizons, 30. 58-65.

9. Maslow, A. H. (1943). A Theory of Human Motivation. Psychological Review, July

1943. 370-396.

10. Skinner, B. F. (1953). Science and Human Behavior. New York: Free Press.

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11. Vroom, V. H. (1964). Work and motivation. New York: Wiley.

12. McGregor, D. The Human Side of Enterprise. New York: McGraw-Hill, 1960.

13. McClelland, D. The Achievement Motive. New York: Appleton-Century-Crofts,

1953.

14. Atkinson, J. W., & Feather, N. T. (1974). A theory of achievement motivation.

Huntington, N.Y.,: R. E. Krieger Pub. Co.

15. Lee, David. Motivating Employees The Fad-Free Way. Publication of the Northeast

HR Association, Spring, 2005

16. http://humanresources.about.com/od/motivationrewardretention/

Employee_Motivation_Recognition_Rewards_Retention.htm

17. http://www.csb.gov.hk/hkgcsb/hrm/e-motivation/e-why.htm

18. http://hbswk.hbs.edu/archive/3739.html ---> 'Getting a Handle on Employee

Motivation' by Anne Field

19. http://retention.naukrihub.com/what-makes-employees-leave.html

20. www.high retention .com/

21. http://www.cs.state.ny.us/successionplanning/workgroups/Retention/

employeeretentionreport.pdf

22. employee-retention.com/guide/.../what-is-employee-retention

23. en.wikipedia.org/wiki/Motivation

24. http://images.google.co.in/images?

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APPENDIX

QUESTIONNAIRE

Q1. Which one of the following actions is likely to motivate Peak performers in

IOCL?

a) Bench marketing b) Quality Circles

c) More Money d) A mutual mission

Q2. In your opinion which condition for high motivation levels in IOCL is used?

1) Autonomy 2) Learning 3) Team work

Q3. In your opinion pay checks & other cash incentives facts which of the following

motivational test.

a) Availability b) Reversibility

c) Visibility d) Durability

Q4. In IOCL which reward many give rise to more effective extrinsic motivations.

b) The commitment of job it self

b) Recognition & feedback from co, workers, supervisors & Customers

c) Accomplishing goals that the challenging & meaningful

Q5. Which of the following motivations are likely to be intrinsic in IOCL?

a) Pride informing excellent

b) The incitement & pleasure

c) Design to exceed one’s premium

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d) Achievement of deep seated value

Q6. In IOCL the phenomenal level of employee commitment, productivity & even

love is based on productivity even love is based on principles of

1) Capture the hearts & minds of all your employees

2) Open communication between all levels of your organization

3) Create partnership between all employees built upon trust, equality &

sharing.

Are you satisfied a) Yes b) No

Q7. The rewarding components of jobs structure in IOCL consists of

1) Skill variety 2) Task identity

3) Task significance 4) Antinomy

Are you satisfied a) Yes b) No

Q8. In your opinion the goals of peak performance employees are

1) To understand & modern self motivation

2) To learn all they can bout how to motivate peak performance

3) To give their people sufficient reasons to want excel

4) To after special assistance to standard performers but to stay out of the

may of peal performers unless they ask for help

Q9. In your opinion does grading systems motivates an employee to give their best

1) Yes 2) No

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Q10. Money is not only means of satisfying the economic needs but also a measure of

one’s power, prestige, independence & happiness, independence & happiness

1) Agree b) Disagree

Q11. What motivates an employee is most to retain in an organisation

a) Bonus b) Incentives c) Reward

Q12. In your opinion is promotion a major component ink retaining an employee?

1) Agree 2) disagree

3) Strongly agree 4) Strongly disagree

Q13. IOCL gives job security to their employees, how much this strategy helps in

training employee.

Q14. In IOCL different types of bonus are used as retention strategies which one is

effective in your opinions.

1) Spot bonus award

2) Non ash bonus

3) Holiday bonus

4) Sales Commission

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Q15. In your opinion helps an organization to retain any employees at last moment

1) Risk analysis

2) Quit Interview

c) Rewards

Q16. IOCL uses three plants to motivate an employee to retain in their organisation i.e.

a) Bonus Plan b) Commission Plan c) Incentive Plan

– Tick the best one

Q17. IOCL was uses different reward programmes, which is effective in motivating an

employee to retain.

1) Variable pay 2) Profit Sharing 3) Incentive Plan

– Tick the best one

Q18. Does jobs rotation helps in retaining an employees

a) Yes b) No

Q19. Performance Appraisal motivations a person to give his best but does it

demotivates a person to work

a) Yes b) No

Q20. What motivates you to retain in IOCL

a) Company Name

b) Salary Package

c) Employee loyalty

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Q21. Kindly tick the areas where you feel more training should be provided to

employee reduce attraction rate

a) Capacity Building

b) Task Related

c) Motivational

d) Organizational Ethics

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