indian oil corporation
TRANSCRIPT
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
2
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.
29
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
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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 -
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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.
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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.
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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
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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
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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
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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
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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
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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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