A STUDY ON EMPLOYEE MOTIVATION AND ITS EFFECTIVENESS

ON EMPLOYEE PERFORMANCE AT FERTILISERS AND CHEMICALS

TRAVANCORE LTD.,UDYOGAMANDAL

PROJECT REPORT

Submitted by
ARYA R NAIR

MLM16MBA11

Under the guidance of

Mrs. RESHMA RAVEENDRANATH
(Assistant Professor, Department of management studies)

In partial fulfillment of the requirements

for the award of the Degree of

MASTER OF BUSINESS ADMINISTRATION

of
A P J Abdul Kalam Technological University

DEPARTMENT OF MANAGEMENT STUDIES

MANGALAM COLLEGE OF ENGINEERING

ETTUMANOOR-KOTTAYAM

MAY 2018

i
ii
iii
 ACKNOWLEDGEMENT

Through this acknowledgement I express my sincere gratitude towards all those people who
helped me in this project, which has been a learning experience.

I express my sincere thanks to Dr. M.M Paulose, MTECH, phD principal of Mangalam college
of Engineering for giving me the opportunity to do the project work.

I express my sincere thanks to Prof JOHN T VARUGHESE, MCOM, MPHIL, DEAN,

Managalam college of Engineering for his proper guidance and support.

I sincerely express my deep sense of gratitude and profound thanks to Dr. SIBU C.
CHITHRAN, MBA, MPHIL, phD (Management), FDP(IIMK), AMT (AIMA), MAIMSI
(USA), Professor and head, Department management studies, Mangalam college of Engineering,
whole hearted co-operation and suggestions throughout the completion of this project.

I sincerely express my deep sense of gratitude and profound thanks to project guide Mrs.
RESHMA RAVEENDRANATH (Assistant Prof Department of Management Studies)
Mangalam College of Engineering, Ettumanoor for her valuable guidance, co-operation and
suggestions throughout the completion of my project.

I express my thanks to Mrs. DIVYA GEORGE (Assistant HR of FERTILISERS AND

CHEMICALS TRAVANCORE LTD.,UDYOGAMANDAL) for the extreme support and
guidance showed throughout the study. I express my sincere thanks to the management and
staffs of all the departments for the encouragement and valuable guidance for the work.

I sincerely thank my friends who help me during the study.

ARYA R NAIR

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 LIST OF TABLES

Table Title of Table Page

No No
5.1 Employees opinion about managements support 51

5.2 Employees satisfaction level at present job 52

5.3 Employees opinion about salary and perks provided by the

53
organisation

5.4 Employees opinion about promotion avenues provided by the

54
organisation

5.5 Support from co- workers and management 55

5.6 Employees opinion about communication channel exist in the

56
organisation

5.7 Employees opinion about grievance redressal system in the

57
organisation

5.8 Employees opinion about welfare and safety measures provided by

58
the organisation

5.9 Employees opinion about employees participation in management 59

5.10 Employees opinion about interpersonal relationship exist in the

60
organisation

5.11 Employees opinion about the incentives provided by the company 61

5.12 Employees opinion about the motivation factors 62

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5.13 Employees opinion about most motivating type of benefit 63

5.14 Employees opinion about their role in decision making in the

64
department

5.15 Opinion of employee relating to highly motivating incentive 65

5.16 Employees opinion about periodic increment in salary as a motivating

66
factor

5.17 Employees opinion about job security as a motivating factor 67

5.18 Employees opinion about interpersonal relationship as a motivating

68
factor

5.19 Employees opinion about existence of effective performance

69
appraisal system

5.20 Opinion about performance appraisal as a motivating factor 70

5.21 Opinion about safety measures adopted by the organisation as a 71

motivating factor

5.22 Employees opinion about recognition and acknowledgement

72
provided by the company

5.23 Employees opinion about welfare measure as a motivating factor

73
5.24 Employees opinion about the interest of management in motivating
74
the performance of employees

5.25 Employees opinion about the satisfaction of working environment in

75
the organisation

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 List of Figures

Table No Title of Table Page

No
5.1 Employees opinion about managements support 51

5.2 Employees satisfaction level at present job 52

5.3 Employees opinion about salary and perks provided by the

53
organisation

5.4 Employees opinion about promotion avenues provided by the

54
organisation

5.5 Support from co- workers and management 55

5.6 Employees opinion about communication channel exist in the

56
organisation

5.7 Employees opinion about grievance redressal system in the

57
organisation

5.8 Employees opinion about welfare and safety measures provided by the
58
organisation

5.9 Employees opinion about employees participation in management 59

5.10 Employees opinion about interpersonal relationship exist in the

60
organisation

5.11 Employees opinion about the incentives provided by the company 61

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5.12 Employees opinion about the motivation factors 62

5.13 Employees opinion about most motivating type of benefit 63

5.14 Employees opinion about their role in decision making in the

64
department

5.15 Opinion of employee relating to highly motivating incentive 65

5.16 Employees opinion about periodic increment in salary as a motivating

66
factor

5.17 Employees opinion about job security as a motivating factor 67

5.18 Employees opinion about interpersonal relationship as a motivating

68
factor

5.19 Employees opinion about existence of effective performance appraisal

69
system

5.20 Opinion about performance appraisal as a motivating factor 70

Opinion about safety measures adopted by the organisation as a 71

5.21
motivating factor

Employees opinion about recognition and acknowledgement

5.22 72
provided by the company

5.23 Employees opinion about welfare measure as a motivating factor

73
5.24 Employees opinion about the interest of management in motivating
74
the performance of employees

5.25 Employees opinion about the satisfaction of working environment in

75
the organisation

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 List of Symbols/Abbreviations

Symbol/ Explanation
Abbreviation
FACT LTD. Fertiliser and Chemicals Travancore
Limited.
Pvt Private

DAP Diammonium phosphate

GDP Gross Domestic Product

MT Metric Tonne

MOP Muriate of Potash

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 TABLE OF CONTENTS

Sl No Topic Page No
1 INTRODUCTION
1.1 Background of the study 2
1.2 Need and Significance of the study 3
1.3 Statement of problem 3
1.4 Objectives of the study 3
1.5 Scope of the study 4
1.6 Limitations of the study 4
1.7 Organization of the report 4
2 LITERATURE REVIEW
2.1 Industry profile 8
2.2 Company profile 13
2.3 Product profile 17
3 THEORITICAL FRAMEWORK
3.1 Meaning 21
3.2 Various definitions of motivation 21
3.3 Theories of motivation 22
3.4 Types of motivation 26
4 RESEARCH METHODOLOGY
4.1 Objectives 35
4.2 Hypothesis 35
4.3 Research Design 35
4.4 Sources of data 36
4.5 Primary and secondary data 36
4.6 Population 39

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4.7 Sample design 39
4.8 Sampling method 39
4.9 Method of data collection 41

4.10 Drafting a questionnaire 43

4.11 Pilot survey 45
4.12 Data analysis techniques 47
5 DATA ANALYSIS 51-79
6 FINDINGS 81
7 RECOMMENDATIONS 84
8 CONCLUSIONS 86
REFERENCES 88
APPENDIX
APPENDIX A

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 EXECUTIVE SUMMARY

A Study on “Employee Motivation and its effectiveness on employee performance at

FERTILISERS AND CHEMICALS TRAVANCORE LTD., UDYOGAMANDAL. The
main objective of the research was to find the Motivation level of employees and its
effectiveness on employee performance.

Employee motivation is essential to the success of any business. The important

factors that are to be considered in the job motivation of employees are salary, promotion,
working environment, additional benefits and so on...
The study was done as part of Descriptive Research. Convenience sampling technique was
employed for selecting the sample. The primary data was collected by means of questionnaire.
Sample size is 150 for this study. The secondary data was collected from the company records
and websites. A structured questionnaire was given to fifty employees and the data was collected
based on the same. The data was analyzed using percentage method, chi square and correlation .
Utmost care has been taken from the beginning of the preparation of the questionnaire till the
analysis, findings and suggestions. The analysis leads over to the conclusion that some of the
employees are motivated. Dissatisfaction with reference to some of the motivational factors was
also reported. It was found that dissatisfaction among employees will affect the work
performance and productivity of the organization. Valuable suggestions and recommendations
are also given to the company for the better prospects.

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 CHAPTER 1

INTRODUCTION
 INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Motivation is an effective instrument in the hand of the management to inspiring the work
force. It is the major task of every manager to motivate this subordinates or creates willing to
work among the subordinates. It should also be remembered that the worker immensely
capable of doing some work, nothing can be achieved if he is not willing to work. Creation of
a will to work is motivation in simple but true sense of term.
Motivation is an important function which every manager performs for actuating the people
to work for accomplishment of objective of the organisation. Issuance of well conceived
instructions and order does not mean that they will be followed. A manager has to make
appropriate use of motivation to enthuse the employee to follow them. Effective motivation
succeeds not only in having an order accepted but also in gaining determination to see that it is
executed efficiently and effectively.
In order to motivate workers to work for the organisational goal, the manager must
determine the motives or needs of the workers and provide an environment in which
appropriate incentives are available for their satisfaction. If the management is successful in
doing so; it will also be successful in increasing the willingness of workers to work. This will
increase efficiency and effectiveness of the organisation. There will be better utilisation of
resource and workers abilities and capabilities.
Motivation has variety of effects. These effects may be seen in the context of an
individual‟s physical and mental health, productivity, absenteeism and turnover. Employee
delight has to be managed in more than one way. This helps in retaining and nurturing the true
believers.
The study help to realise the importance of motivation and its impact on employee
performance. The research study types and level of employee motivational programme and
also discuss management ideas that can be utilised to innovate employee motivation. It help to
provide insight to support future research regarding strategic guidance for the organisation that
are both providing and using reward recognition programme.

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 1.2 NEED AND SIGNIFICANCE OF STUDY

FACT, Ltd is a largest central public sector undertaking and employing around 3500
peoples. The company has two production units in Udyogamandal and Ambalamedu. Its
employees are working in different fields like production, marketing , finance, personal
management etc. The study intended to study how the management motivate workforce and its
impact on employees performance at this organisation . A good motivational programme is
essential to inspire the work force for achieving the goal of the organisation. Higher
motivation lead to job satisfaction ,employee loyalty, employee efficiency and motivation is
also useful to reduce absenteeism, labour turnover and labour unrest. The study help to
understand importance of motivation in an organisation and how far motivation is influencing
employees performance in FACT.

1.3 STATEMENT OF THE PROBLEM

The present study entitled on “A study on employee motivation and its effectiveness on
employee performance at FERTILISERS AND CHEMICALS TRAVANCORE
LTD,UDYOGAMANDAL.

1.4 OBJECTIVES OF THE STUDY

Primary objective
 Find out the effectiveness of employee motivation in performance.

Secondary objective

 To analyse and examine effectiveness of motivation programme in FACT.

 To study the effect monitory and non-monitory benefits provided by the organisation
 To study the employees opinion about the motivation provided by FACT.
 To study which kind of motivation is highly influencing the employee performance
 To know the attitude of management in employee motivation.

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1.5 SCOPE OF THE STUDY
 This study aims at finding the relationship between employee motivation and employee
performance
 To find out whether the financial or non- financial motivation will influence employee
performance
 In order to identify factors which motivate the employee more
 In order to identify various motivation techniques used by the organisation.

1.6 LIMITATION OF THE STUDY

 Due to shift arrangement it is difficult to collect data from all employees.

 Majority of the employees were busy with their works.
 The time allotted for the study was limited.
 Due to the short span of time a detailed study was not able to make.
 Most of the answers of the respondent were influenced by the comments of others.

1.7 ORGANIZATION OF THE REPORT

The report of the study is presented in 5 chapters.

 CHAPTER 1 : INTRODUCTION 
This chapter contains introduction to the study, statement of problem, significance of the
study, objective of the study, Scope of the study, hypothesis, and methodology, period of the
study, chapter scheme, assumptions and limitation of the study.

 CHAPTER 2 : REVIEW OF RELATED LITERATURE 

This Chapter deals with Industry profile, company profile, Theoretical background of the
study, recent studies on the topic, and review on research methodology

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 
 CHAPTER 3 : RESEARCH METHODOLOGY 
This Chapter Contains Research design, study approach, techniques of data collection,
sampling techniques, techniques used for data analysis

 CHAPTER 4 : DATA ANALYSIS & INTERPRETATION 

This Chapter Includes Data Analysis and Interpretation

 CHAPTER 5 : SUMMARY & CONCLUSIONS 

This chapter contains summary, methodology, findings, suggestions, scope for further
studies and conclusion

 BIBLIOGRAPHY & REFERENCES 

This chapter include bibliography, webliography, covering letter to the researcher,
questionnaire and other related documents.

5
 CHAPTER 2

REVIEW OF LITERATURE

6
 LITERATURE REVIEW

Employees' motivation is "The heart of giving the people what they really want most from work"
(Dell, 1988). The more you are able to provide what they want, the more you should expect what
you really want, namely: productivity, quality, and service. Jones and George (2010) argue that
employees' motivation is as the "psychological forces that determine the direction of a person's
behaviour in an organisation, a person's level of effort, and a person's level of persistence." The
behavioural direction of a person is described as "the many possible behaviours that a person
could engage in." Effort indicates how hard people work. Persistence on the other hand refers to
whether, when dealing with roadblocks and obstacles, employees keep trying or give up. When
employees follow an effective and efficient direction, contribute in high levels of effort and are
persistent, then high motivation occurs.

Maslow (1943) sets money at the lowest hierarchy level and shows that other needs work as
better motivators to staff. Herzberg (1959) based on Maslow's' pyramid supports that money
tends to have a motivating effect on employees that lasts only a short period of time (two-factor
model of motivation). McGregor (2002) places money in his Theory X category and feels it is a
poor motivator. Praise and recognition are placed in the Theory Y category and are considered
stronger motivators than money.

If money is the only reward that someone receives by doing his job right, this undoubtedly will
have a negative reflect on the organisation. The employee will react each time by thinking of his
pocket and ignore about the operations goals and the promotion of them. The rewards must have
the form of influencing the employee to feel better concerning his/her achievements inside the
company and from this success to feel as a part of this business and not as "just a worker" who
simply gets paid for his/her services (Rollinson, 2004). Opportunities for job development, skills
improvement, and job commitment are excellent examples of making an employee stop thinking
of himself as just an employee and motivate him/her to start feeling as a real member of the
company that he belongs too and perform better (Armstrong and Baron, 2004).

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2.1 INDUSTRY PROFILE

Fertilizer is generally defined as “any material organic or inorganic, natural or synthetic which
supplies one or more”.

The most necessary requirements of human being are food. The accelerated growth in a nation
needs remarkable expansion of food production from time to time. Agriculture must rely upon a
primary source for increase in food production.

The fertilizer industry has played a significant role in the development of agriculture in India.
Majority of the rural population in India still depend on agriculture for their livelihood and allied
activities contribute about 30% of GDP in India. Growth and development of agriculture in India
derives a significant stimulus in fertilizer industry. Development and growth of this vital industry
is crucial for their sustainable growth of agriculture and to ensure food security of the nation.
The main issue confronting the fertilizer industry in India is the volatility in the process of food
stock or raw material coupled with the limited availability and uncertain policy environment.

In India, there has been a surge in the demand for fertilizers in the past few years. However the
robust growth in consumption propensity has not been met with the required surge in the
fertilizer production. This has widened the gap between demand and supply of fertilizers.
Therefore India has depended on import of large quantity of fertilizer to meet domestic demand.

India is the third largest producer and consumer of chemical fertilizers in the world and account
for about 12% of world fertilizers‟ consumption. The country produces several straight
nitrogenous fertilizers such as Urea, Ammonia, Sulphate, Calcium, Ammonium, Nitrate etc. As
well as fertilizers such as DAP and several NPK complexes. Urea and DAP are the main
fertilizers produced in India.

Agriculture is the backbone of Indian economy still holds its relative importance for more than a
billion people. The government of India from time to time has taken considerable steps for the
upliftment of agriculture sector. Here we have analyzed the performance of fertilizer industry
being one of the vital parts in agriculture production and government policy initiatives for the
same.

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 Six industries in India have been identified as energy intensive industry. Aluminum,
Cement, Fertilizer, Iron & Steel, Glass and Paper together they account for 16.8% of
manufacturing value of output (V0) and consume 38.8% of all fuels consumed in the
manufacturing sector. The fertilizer sector holds a considerable share within these energy
intensive industries. In 1993, it accounted for 23% of value of output within the six industries
and for 3.8% in the manufacturing sector.

The Indian fertilizer industry has succeeded in meeting almost fully the demand of all chemical
fertilizers except for MOP. The industry had a very humble beginning in 1906, when the first
manufacturing unit of Single Super Phosphate (SSP) was set up in Ran pat here Chennai with an
annual capacity of 6000 MT. Fertilizers And Chemicals Travancore of India Limited (FACT) at
Cochin in Kerala and the Fertilizers Corporation of India(FCI) in Sandra in Bihar were the first
large sized fertilizers plants set up in the forties and fifties with a view to establish an industrial
base to achieve self- sufficiency in food grains. Subsequently, green revolution in the late sixties
gave an impetus to the growth of fertilizer industry in India. In seventies and eighties they
witnessed a significant addition to the fertilizer production capacity.

The installed capacity as on 30-01-2013 has reached level of 121.10 lakh MT of nitrogen
(inclusive of installed capacity of 2008.42 lakh MT of Urea after reassessment of capacity) and
53.60 lakh MT of Phosphate Nutrient, making India the third largest fertilizer producer in the
world rapid build-up of fertilizer production capacity in the country has been achieved as a result
of a favorable policy environment facilitating large investment in the public, co-operative and
private sectors. Recently, there are 57 large sized fertilizers plant in the country manufacturing a
wide range of nitrogenous, phosphate and complex fertilizers. Out of these, 29 unit produce
Urea, 20 unit produce DAP and complex fertilizers, 13 plants manufacture Ammonium Sulphate
(AS), Calcium Ammonium Nitrate (CAN) and other low analysis nitrogenous fertilizers.
Besides, there are about 64 medium and small-scale units in producing SSP.

Investment in Fertilizer Industry

Fertilizer production is capital intensive and presently the cost of production of indigenous
material is high and returns on investment are low. The Indian fertilizer industry, which achieved
phenomenal growth in eighties, witnessed decline in the growth rate during the nineties. In the

9
recent past, the fertilizer industry has not attracted any significant investment. No multinational
has invested in fertilizer sector in India.

Due to sufficient indigenous capacity and low international prices of Urea, the government of
India in February 2000 decided that no new grassroots project will be allowed during the next 3
years in public, private or co-operative sector. So even if the government reviews its decision the
earliest a project could start would be by 2004-05. Government is also considering dis-
investment of its equity of public sector fertilizer units up to 51% or even more. This handover
the management control of the company to a strategic buyer. The dis-investment in National
Fertilizer Limited (NFL), a major Urea producer in the country is underway. Lack of availability
of natural gas in the country had prompted investors to collaborate for joint ventures abroad for
urea production. Gulf countries due to abundant availability of gas, nearness to Indian shores and
investment friendly environment, are becoming the first choice for joint ventures.

Among the Public Sector Units, the Fertilizer Corporation of India Limited (FCI), Hindustan
Fertilizer Corporation Limited (HFC), Projects &Development India Limited (PDIL), and
Pyrites, Phosphates & Chemicals Limited (PPCL) were declared sick. They are under
consideration of Bureau of Industrial and Financial Restructure (BIFR).

As India does not have potential rock phosphate reserve, it is completely dependent on import of
either rock phosphate or phos acid or DAP. There has been new capacity addition by way of
importing rock phosphate and converting it into phos acid and then to DAP/NPK or conversion
of phos acid at rock phosphate mines abroad in JV and importing phosphoric acid for further
conversion to DAP/NPK. It is heartening to know that apart from the operating joint venture for
phosphoric acid in Senegal, Jordan and Morocco some more projects and expansions are being
contemplated by the Indian companies.

INTERNATIONAL SCENARIO

When there are large area of unused frontier land in the world, it was often more economical

for farmers to move on to new unfarmed land then to invest additional money in fertilizers

for the land they were then farming, a practice continued in second half of the 20th century

10
in some underdeveloped areas of the world. The use of manure and composites are probably

as old as agriculture itself and many other material such as ground bones, wood ash

from burning the fallen trees, dried blood and fish were employed long before the chemistry

of soil and crops was understood. The disappearance of fertilizers combined with

improvements in the technology of fertilizers manufacture and more effective transportation

lead to a growing role of fertilizers for producing the needed food.

NATIONAL SCENARIO

India is one of the world‟s largest producers and consumer of fertilizers, both Phosphorescent
and Nitrogenous. The fertilizer industry in the country is also among the fast growing sector in
the world. There are around 25 chemical fertilizers used in the country at present. They fall
under four broad categories namely Nitrogenous, Phosphate and Potassium and Complex
fertilizers.

71% of the total fertilizer consumption during 1994-1995 was of the Nitrogenous variety
whereas the Phosphorescent and fertilizers accounted for 22% and 7% in the same order. While
Urea, Calcium and Ammonium Phosphate are the major Nitrogenous fertilizers, Single Super
Phosphate falls under the Phosphate category. Ammonium Phosphate is the main Complex
fertilizer are nine public sector under takings and two co-operative societies under the
administrative control of the Department of Fertilizers. At present, there are 63 large size

fertilizer units in the country, manufacturing a wide range of nitrogenous and

Prophetic/complex fertilizers. Of these, 38units produce urea whereas 9 units produce
Ammonium Sulphate as a by-product. Besides, there are about 79 small and medium scale units
producing single superphosphate.

STATE SCENARIO

Kerala has a high degree of the land and cropping industry. The states agriculture
productivity is decreasing year by year. The production and cultivation of rice is decreasing and
the farmers are attached to the cultivation of commercial crops like rubber etc. due to the

11
decrease in the cultivation of rice, the consumption of Nitrate and Potash has come down. Kerala
is one of the low ranking states in the consumption of fertilizers.

The state has good fertile land and suitable climate for agriculture. Even though the states
agricultural productivity is decreasing year by year. Especially production and cultivation of
commercial crops like rubber shows declining trend in production. Industry's production had
shown increasing trend during past few years. Industry leaders sought Governances support in
reducing the time period for mandatory environmental.

GENERAL HEALTH OF THE INDUSTRY

It is feared that several fertilizer units will be closed down in the process of switch over from the
present administrated pricing mechanism to a market based regime. This would mean substantial
loss of domestic fertilizer production and corresponding increase in import of raw material
(Urea) to meet the demand. Even under the present circumstances health of the industry is not
good and several units have become loss making. According to Expenditure Reform Committee
(ERC) recommendations, instead of unit wise retention price there will be a group wise lump
sum concession per ton of urea based on feed stock which will harm some units and benefit
others and there will be wide spread sickness in the Urea industry.

IMPLICATIONS FOR FUTURE

India has become third largest country with a total capacity of 14.07 million tonnes of P205in the
year 2000-2001 further capacity addition for N now been started for the time being due to very
narrow demand supply gap at present and costly feed stock. However there will be some addition
to the Phosphatic capacity. Domestic production of Nitrogen fertilizers were 11.004 million
tonnes in 2000-2001 whereas production of Phosphatic fertilizers were 4.703 million tonnes
which are marginal higher compared to the last year production.

All India capacity utilization has gradually improved over the years and was maintained at most
cent percentage level for N, however, during 2000-2001 Vestrichous were imposed on capacity
utilization of Urea at 92%. The increase in production of total Nis observed due to previous year.
The capacity utilization for P205 fertilizers were cent percentage.

12
2.2 COMPANY PROFILE

Name : The Fertilizers and Chemicals Travancore Limited.

Slogan : Pioneers in Progress

Establishment : 1944

Incorporation : 22 September, 1943

Promoters : Central Government and State Government

Head office : Udyogamandal, Eloor

Nature of business : Manufacturing and Production

Commencement of business : 26 June, 1947

Laison offices : Mumbai, New Delhi

Area office : Udyogamandal, Chennai, Bangalore, Hyderabad

Listing : NSE

Products :Ammonium Sulphate, Factomfos 20-20-0-13, Fact mix,

Caprolactum, Gypsum, Urea, Di- Ammonium Phosphate,
Anhydrous Ammonia, Sulphuric Acid, Nitric Acid, Bio
Fertilizers, Soda Ash, Ammonia, Synthesis Gas, Phosphoric
Acid, SO2 Gas

Divisions : Udyogamandal, Petrochemical & Cochin division

Trading of scrips : Electronic form, paper form

VISION

“With a decade FACT will emerge as a leader in the business of agricultural inputs,
industrial intermediaries and engineering consultancy and construction of industrial
infrastructure facilities”.

13
MISSION

“FACT‟s mission is to function as a dependable and competitive producer of fertilizers and other
allied products and to develop self-reliance in the field of engineering and technology especially
in the field of fertilizers, chemicals and petrochemicals, oil and gas industries”.

FACT DEPARTMENTS

There are six departments in FACT. They are:

 Human Resource Department

 Material Department
 Production Department
 Marketing Department
 Finance Department
 Quality Control Department

1. HUMAN RESOURCE DEPARTMENT

The main functions of Human Resource Department are:

 Organizational Planning And Development

 Recruitment And Selection
 Training And Development
 Wage And Salary Administration
 Welfare Programme
 Job Evaluation
 Employee Record Maintaining

The Human Resource Department of FACT consists of three sections. They are:

1. Establishment
2. Training and Industrial Engineering
3. Industrial Relation

14
2. 2. MATERIALS DEPARTMENT

Deputy General Manager heads Materials Department. Material Department is divided into three
sections. They are:

1. Raw Materials (RM)

2. Stores and Transportation Services (STS)
3. Equipment Spares and Supplies (ESS)

3. PRODUCTION DEPARTMENT

Annual production targets for the next year are prepared based on installed production
capacity of the plant and production data for the previous year. Necessary feedback is also taken
from marketing while fixing the production targets. The production targets is presented to the
corporate office for the review and approval by CMD, the Plant Manager are informed the same.

Various sections in Production Department are:

1. Ammonia Plant
2. Sulphuric Acid Plant
3. Phosphoric Acid Plant
4. Ammonium Complex Plant

4. MARKETING DEPARTMENT

The Marketing Division is headed by a GM who reports to the Director (Marketing). FACT
has two Marketing Departments namely: Petrochemical Marketing and Fertilizers Marketing
Departments. The Marketing Department consists of various sections organized on the basis of
their functions. They are:

1. Sales Department
2. Distribution Department
3. Marketing Research Department

15
5. FINANCE DEPARTMENT

The functions within the Finance Department are diverse with distinction procedure for
accounts related to personnel, purchase, costing, budgets, tax and duties, audit, general accounts,
bank and payrolls, bills, etc.

Main functions of Finance Department are:

 Preparation of final accounts

 Preparation of bank advice statements
 Budget preparation
 Payroll systems
 Preparation of monthly journal, ledger and trail balance
 Calculation of attendance bonus
 Auditing
 Preparation of cost sheet

6. QUALITY CONTROL DEPARTMENT

At FACT, quality has always been articles of faith and strictest international standards are
adhered to tin producing the various products. The sophisticated micro processors based digital
distribution control system brings about efficiency in information management and process
optimization. The process control based on time analysis, assures consistency in quality
throughout the manufacturing process and in the finished products.

OWNERSHIP PATTERN OF FACT

FACT, a „Schedule A‟ category Government of India enterprise, under the administrative

control of Department of Fertilizers in the Ministry of Chemicals and Fertilizers. FACT took
shape in 22 September, 1943 and in 1960‟s it came under Public Sector and the Government of
India became the major shareholder.

Board of Directors manages FACT. The Chairman of the Board is the Managing
Director. They have a full time Finance Director, a Technical Director, and a Managing .

16
 . There are also six part time directors on the Board, nominees of Central and State
Government. 97% of shares of the company are owned by Central and State Government and the
remaining 3% by public.

COMPETITORS OF FACT

 Southern Petro Industrial Chemicals

 Madras Fertilizers Limited
 Nagarjuna Fertilizers Limited
 Mangalore Fertilizers Limited
 Rastria Chemical Fertilizers
 India Farmers Fertilizers Cooperation

2.3 PRODUCT PROFILE

PRODUCT AT GLANCE

Fertilizers : Urea, Sulphate, Factamfose, Ammonium Sulphate, Fact mix

Petrochemicals : Caprolactum

Chemicals : Ammonia, Sulphuric Acid, Soda Ash, Nitric Acid

FACT manufactures Straight fertilizers, Complex fertilizers, Fert mixtures and Chemicals.
They are:

 Straight Fertilizers
 Ammonium Sulphate
 Urea
 Complex Fertilizers
 Factamfos 20-20-0-13
 Di- Ammonium Phosphate
 Fertilizer Mixtures

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  NPK Mixtures
 Rose Mixtures
 Vegetable Mixtures
 Garden Mixtures
 Chemicals
 Anhydrous Ammonia
 Sulphuric Acid
 Caprolactum
 Nitric Acid

FINISHED PRODUCTS

 Ammonium Sulphate - Udyogamandal Division

 Ammonium Phosphate – Udyogamandal and Cochin Division
 Urea – Cochin Division
 Caprolactum – Petrochemical Division
 Bio-fertilizers – R&D Division

BYPRODUCTS

 Gypsum – Udyogamandal and Cochin Division

INTERMEDIARY PRODUCTS
 Ammonia - Udyogamandal and Cochin Division
 Sulphuric Acid - Udyogamandal and Cochin Division
 Synthesis Gas - Udyogamandal Division
 Phosphoric Acid - Udyogamandal and Cochin Division
 So2 Gas - Udyogamandal Division
 Nitric Acid and Soda Ash – Petrochemical Division

EXPORTED PRODUCTS

 Caprolactum – Petrochemical Division

 Ammonium Sulphate - Udyogamandal Division

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 CHAPTER 3

THEORETICAL FRAMEWORK

19
 THEORITICAL FRAMEWORK

3.1 MEANING

The word motivation is derived from the Latin word “movere”, meaning to “move”. In simple
term, the term may be used as the state or condition of being induced to do something.
Essentially, motivation involves individual needs and the extent to which they are met by the
organisation or the extent to which they are met by the organisation or the extent to which the
workers perceive that his or her needs are met by the organisation. Motivation is an important
way of promoting productivity of employees.

3.2 VARIOUS DEFINITIONS OF MOTIVATION

 Dubin has defined motivation as,” complex of forces starting and keeping a person at
work in an organisation”.
 According to Dalton E. McFarland,” motivation refers to the way in which urges,
drisers, aspirations, strivings or needs direct, control or explain the behaviour of
human beings”

Management can do its job effectively through motivating people to work for the
accomplishment of organisational objectives. But according to authors like McGregor, Maslow,
Herzberg etc, it is difficult to motivate the people without considering what they want and expect
from the work. Maslow‟s theory is considered an important theory of motivation because it
highlights the need of people.

Human need can be classified into two categories

1) Basic psychological or primary need.

2) Social and psychological needs or secondary needs

Some of the psychological need are food, water, sleep, air to breath, sex, clothing and shelter.
These need arise out of the basic physiology of life and are important for the survival of people.

20
 Secondary motivation related to mind and spirit rather than the psychology of life. Many of
these need develop as one mature. Instances are belongingness, recognition, self –esteem, sense
of duty, self-assertion and so on.

The theories of motivation which explain human behaviour in terms of human needs are
called „content theories‟. For instance, Maslow‟s and Herzberg‟s models propose that human
beings are engaged in certain activities to satisfy their needs. But theories which explain how
motivation occur are known as process theory. For instances, Vroom‟s theory identifies the
variables that go into motivation and their relationship with each other.

3.3 THEORIES OF MOTIVATION

MASLOW’S NEED HIERARCHY THEORY.

This theory was developed by Abraham Maslow. He was a clinical psychologist in U.S.A.
Abraham Maslow saw human needs in the form of a hierarchy starting in an ascending order
from the lowest to the highest needs and concluded that when one set on need is satisfied, it
ceases to be a motivator. Therefore the next set of needs in the hierarchy takes its place. The
basic human needs as identified by Maslow in the ascending importance are as follows:

 Psychological Need.
These are the basic needs for sustaining human life- food, clothing, shelter, sleep and
sexual satisfaction. Until these needs are satisfied to the required extent, other need do not
motivate a person.
 Security or Safety Need
These are the needs to be free from physical dangers and fear of loss of job, property,
food, clothing, or shelter.
 Affiliation or Acceptance Need
Since human beings are social animals, they desire to belong to others and to be
accepted by others. Every person wishes to be affiliated to a particular social group.
 Esteem Need.

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 Once a person gets satisfied his needs to belong, he expected to be held in esteem both
by himself and by others. This kind of need produces satisfaction as power, prestige, status and
self-confidence.
 Need for self-actualisation
Maslow regarded this as the highest level need in his hierarchy. It is the desire to
become what one is capable of becoming to maximise one‟s potential and to accomplish
something in the life as cherished goal.

HERZBERG’S MOTIVATION- HYGIENE THEORY

The two factor theory (also known as Herzberg‟s motivation –hygiene theory )was developed
by Frederick Herzberg, a behavioural scientist.
Herzberg started his theory with a distinction between motivational and maintenance
factor in job situation. A research study was made by Herzberg and his associates based on the
interview of 200 engineers and accounts who worked in eleven different firms in Pittsburgh
areas. On the basis of these research, two job factors were identified ;
 Motivators or satisfiers
 Hygiene or maintenance factors

That‟s why, Herzberg‟s theory is also called two factor theory.

Some job conditions operate primarily to dissatisfy employees when the

condition are absent, but there presence does not motivate the employees in a strong way. Many
of these factors are traditionally perceived by the management as motivators, but these are really
more potent as dissatisfies .. The potent dissatisfies are called maintance factors in a job because
they are necessary to maintain a reasonable level of satisfaction among the employees. They are
also known as dissatisfies or „hygienic factors‟ because they support employees mental health.
Another set of job conditions operates primarily to build strong motivation and high job
satisfaction, but their absence rarely proves strong dissatisfies.

Hygiene factors include wages, fringe benefits, physical conditions, and

overall company policies, administration etc. The presence of these factors at a satisfactory level
prevents job dissatistisfaction, but does not provide motivation to the employees. So they are not
considered as motivational factors. Motivational factors on the other hand are essential for
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increasing the productivity of employees. They are also known as satisfiers and include such
factors as recognition, feeling of accomplishment and achievement, opportunity of advancement
and potential for personal growth, responsibility and sense of job and individual importance, new
experience and challenging work.

Herzberg further stated that managers have hitherto been very much concerned with
Hygienic factors. As a result, they have not been able to obtain the desired behaviour from
employees. In order to increase the motivation of employees, it is necessary to pay attention to
satisfiers or motivational factors.

Herzberg also said that to-day‟s motivators are tomorrow‟s hygienes because they stop
influencing the behaviour of persons when they get them. When a person gets one thing, then
something else will motivate him and the need which has been fulfilled will have only negative
significance in determining his behaviour.

McCLELLANDS’S THREE NEEDS MODEL

David C. McClelland model is concerned with three motives, namely,

 The need for achievement

 The need for power
 The need for affiliation
Everyone posses these need in varying degree. However, one of the needs will tend to be
more characteristics of the individual rather than the other two. Individuals with a high need for
achievement thrive on jobs and projects that tax their skill and abilities. Such individuals are
goal-oriented in their activities, seek a challenge and want relevant feedback. Individual with
high affiliation needs value interpersonal relationships and exhibit sensitivity towards other
peoples‟s feelings. But individuals with high power needs seeks to dominate, influence or have
control over people.
It appears that McClelland‟s concept of achievement motivation is related to Herzberg‟s
motivation –hygiene theory. People with high achievement motivation tend to be interested in
the motivators and with low achievement motivation rend to be interested in environment or
hygiene factors.

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 VROOM’S VALENCE-EXPECTANCY THEORY

This theory was offered by Vroom. According to him, a person‟s motivation towards an action at
any time would be determined by an individual‟s perception that a certain type of action would
lead to a specific outcome and his personal preference for this outcome.

There are three variables in Vroom‟s model given in the form of an equation. Since the
model is multiplicative, all the three variables must have high positive values to imply motivated
performance choices. If any of the variables approaches zero, the probability of motivated
performance approaches zero.

Motivation=Valence* expectancy *Instrumentality

Valence is the strength of an individual‟s preference for a reward, expectancy is the probability
that a particular action will lead to a desired reward and instrumentality denotes an individual‟s
estimate that performance will result in achieving the reward. Thus, if an individual has a
particular goal, some behaviour has to be produced in order to achieve that goal. He will weigh
the likelihood that various behaviours will achieve the desired goal and if certain behaviour is
expected to be more successful than other, that particular behaviour will be preferred by the
individual.Motivation is the product of valence, expectancy, and instrumentality. These three
factors in the expectancy model may exist in an infinite number of combinations depending upon
the range of valence and degree of expectancy and instrumentality. The combination of that
produces the strongest motivation is high positive valence, high expectancy and high
instrumentality. If all the three are low, the resulting motivation will be weak. In other cases,
motivation will be moderate similarly the strength of avoidance behaviour will be determined by
the negative valence and expectancy and instrumental factors.

As said above, the motivational force will be highest when expectancy,

instrumentality and valence are all height. The management must recognize and determine the
situation as is exists and take steps to improve upon these factors for behavioural modification so
that these three elements achieve the highest value individually.

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PORTER AND LAWLER EXPECTNCY MODEL

Porter and lawler model is an improvement over vroom‟s expectancy modal. It is

based on four assumption about behaviour in organisation;

(I) Behaviour is determined by a combination of factors in the individual and in the

environment.
(II) Individuals make-conscious decisions about there behaviour in the organisation.
(III) Individuals have different needs, desires and goals
(IV) Individuals decide between alternative behaviours on the basis of their expectations
that a given behaviour will lead to a desired outcome.

Porter and Lawler applied there model to study the behaviour of managers and concluded that
there exist a complex relationship between job attitude and performance.

3.4 TYPES OF MOTIVATION

Motivation is an important function which every manager performs for actuating the people to
work for the accomplishment of objectives of the organisation. In order to motivate workers to
work for the organisational goals, the manager must determines the need of the workers.

Motivation can be classified into two;

1. Financial motivation
2. Non financial motivation

FINANCIAL MOTIVATION

Following are the important financial motivation provided by FACT;

1) Bonus
2) Salary increment
3) Incentives
4) Welfare measures

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NON FINANCIAL MOTIVATION

1. Recreation
2. Workers participation in management
3. Communication
4. Suggestion

INCENTIVE SCHEMES
Following are the incentive schemes provided by FACT;
 Attendance bonus
 Incentives schemes for employees acquiring higher qualifications while in service
 Incentive schemes for employee passing Hindi and Hindi type writing/Hindi stenography
examination
 Schemes for utilisation of the service of employee acquiring specialised qualification
 Incentive bonus
 Incentive scheme for promoting “small family “norms
 Production incentives

ATTENDANCE BONUS

This scheme cover all non-managerial employees who have punch card attendance. Calculation
of attendance bonus will be based on the attendance of an employee during a leave year.
Attendance bonus of a leave year will be computed and paid during the succeeding leave year.
Leave year computed as per calendar year.

INCENTIVE SCHEME FOR EMPLOYEES ACQUIRING HIGHER QUALIFICATION

WHILE IN SERVICE.

It is available to managerial and non-managerial employees. It consistent with

management policy of encouraging employees to improve their academic achievement and
thereby their expertise and merits for career advancement. The incentive permissible under these
scheme will be in the form of a one time, lump sum payment after the employee has completed
the course of education and acquire the relevant degree or diploma.

26
INCENTIVE SCHEME FOR EMPLOYEES PASSING HINDI AND HINDI TYPE
WRITING /HINDI STENOGRAPHY EXAMINATION.
An incentive scheme for managerial and non-managerial employees passing Hindi and Hindi
typewriting /Hindi stenography examination.

SCHEME FOR UTILISATION OF SERVICE OF EMPLOYEES ACQUIRING

SPECIALISED QUALIFICATION.
The management is introduced this scheme for improving the career prospects and better
utilisation of service of the employees who acquires various qualifications in various disciplines.
INCENTIVE SCHEMES FOR PROMOTING “SMALL FAMILY” NORMS
Government of India introduced a scheme in the form of a special increment to
employees undergoing sterilisation for promoting ”small family” norms. A similar scheme was
introduced with the approval of our board of directors for the benefit of our employees who
undergo sterilisation operation.
INCENTIVE BONUS
It is the bonus for bulk shipment was introduced in Udyogamandal. The bonus cover
various class of labour working on the operation of unloading and payment of this bonus is based
on the contribution of employee to the unload operation.
PRODUCTION INCENTIVES
The scheme of Fact Udyogamandal division is a multi factor group incentive scheme.
The factors on which incentive scheme are ;
 Production capacity utilisation
 Material efficiency utilisation
 Man power utilisation

The objective of the scheme are ;

 To increase output
 To increase production
 To reduce production cost
 To improve material efficiency‟

27
The scheme cover all managerial employees .
ANNUAL INCREMENT AND PROMOTION
Annual increment is provided for both managerial and non-managerial employees. Grand of
increment is conscious and positive acting of management .It is not automatic. The performance
and conduct of the personnel concerned is taken into account by the recommending and
sanctioning authority. In FACT increment are sanctioned only within scale of pay.

SPECIAL INCREMENT FOR EXCELLENCE

Management at its discretion may grant to a special increment for achieving excellence in
national and international events. None of them can demand it as a right and it is purely of the
discretion of management.

WELFARE ACTIVITIES.
Welfare activities can be classified into two
 Statutory schemes
 Non-statutory schemes

STATUTORY SCHEMES

Following are the statutory welfare schemes:

 Dispensary
 Canteen
 Locker for employees

 Dispensary.
These are well equipped dispensaries within the factory premises managed by qualified
staff for administrating first aid ,and medicines for minor ailments.
 Canteen
Vegetarian cafeterias cater to employees in all the 3 shifts. Tiffin items are supplied to those
who worked in the night shift(12-8)

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Locker for employees

Lockers for employees working in the shift are given for keeping their working uniform and
tools.
NON –STATUTORY SCHEMES
Following are the non statutory welfare schemes;
 Benefits for medical treatment.
Normally workers who are covered under the Employees State Insurance or contributory Health
Scheme should avail medical facilities and other benefits offered by the scheme.
Financial aid from the fund shall be given only on loan. Loan above Rs.500 shall be give
only recommendation of WFA committee or at the direction of Chairman.
 Benefits for education.
Members shall be eligible for loan from the fund for their own or their dependants
education.
 Pre-degree course –Rs.300 p.a
 Degree-Rs.400 p.a
 diploma -Rs 300 p.a
 Post graduation course- Rs.500 p.a
 Professional course-Rs750 p.a
 ITI-Rs.200 p.a

Education in outside university (other than Kerala state) shall be given Rs.450 loan for graduate.
Application fee for education should be submitted in the prescribed form supported by the
certificate from the Head of the institution concerned.

 Benefits towards damages to dwelling house.

Benefits from the fund shall be given for damages to the dwelling house owned by the
members due to natural calamities like fire, flood etc. Aid shall be given as loan on the basis of
assessment of real damages and only to own house and not for rental house.
 Benefit on retirement of superannuation.

29
 The member shall be eligible for Rs.4000 as ex-gratia from the welfare fund when he \she
retires on superannuation irrespective of whether the member receive any benefit or from the
welfare fund during his /her service .the amount shall be paid one month prior to retirement.
 Benefit of death while in service.
The dependants of member shall be eligible for Rs. 2000 as ex-gratia from the fund when
the member dies while in service.
 Benefits for family planning.
The amount of Rs.151will be given as ex-gratia benefit towards family planning
operation adopted by member or their spouse.
 Benefit on special cases.
Benefit from welfare fund shall be given to member‟s on special cases. Who actually
deserve aid on genuine ground. This shall be only given on the advise of welfare fund advisory
committee.

OTHER WELFARE FACILITIES

Following are the other welfare facilities provided by FACT;
 Sports and Recreation
The Sports Control Board was setup in 1984.the sports control board wikk co-ordinate and
promote all sports activities in all the division of the company. To encourage participation in
sports and games the members of the participating games are granted special leave with pay
when they play for tournaments at state or inter state level. Those who sustain injuries at sports
and game are provided medical attention at companies expenses.
There are 2 FACT Sports Association at Udhyogamandal AND COCHIN DIVISION
respectively. They promote sports and recreation activities.
The FACT sports association at Udyogamandal and Cochin division provides sports
games and other recreation facilities. Both associations have been provide rent free building by
the company. The building have facilities for Table Tennis, Caarms, Chess, Cards, and such
indoor games. Besides there are play ground in both places for food ball, cricket, hockey, volley
ball etc..
 FACT Lalithakala Kendra

30
 The FACT Lalithakala Kendra setup in 1966 with the object of promoting fine arts and
cultural activities.
The objectives of Kalakandra are as follows;
 Arranging music, drama programme
 Organise meeting, competition, seminar, lectures, discussion, classes etc on fine arts and
other allied subjects
 Organise and conduct exhibition and film shows
 Running well equipped library and reading room.
 Consumer co-operative society
FACT Co-operative Society is dealing provisions ,textiles, stationery, and routine good.
It as also running a medical store and a flour mill. The company is providing rent free
accommodation, free power, and water to the society. The society gives credit to the employees
which are settled by monthly payroll deduction.
 School facilities
The company has setup schools to educate the children of employees.
 Uniform and food wear
It is given to all non- managerial employees. They also given washing allowance, switching
charge and food wear as well
 Aid facilities for funeral expense
RS.300 to family of those employees who died while in service.
 Aid for family planning
Rs.50 to family planning operation to employees. The company also will give additional
increment if he/ she or spouse undergo family planning operation
 Special leave for Blood Donation
One day special leave for donating blood to meter employees who undergo medical
treatment

 Sleeping shed
Sleeping shed have 100 birth for employees who work in shift
.
 Free milk supply

31
 The employees who are working in the hazardous area in the factory are given quarter litre
milk at free of cost in all the 3 shifts.
 Calcium Tablet Supply
The employees who working in certain plants like phosphate plant are supplied calcium tablets
every day. It is issued through company dispensaries.
 Meals Subsidy
It is provided to workmen who are not provided with canteen facility will be given meals
subsidy.
Other welfare facilities include Provision for Sleeping Centres, Temples and other places for
worship, Waiting Shed,
SUGGESTION SCHEME
The suggestion scheme is to encourage creative potential of employees, in order to effect
economy improvement in production and productivity in material and labour and to improve
working condition. The suggestion scheme offer recognition and reward for constructive ideas
which can be effectively translated into practice. Managerial and non- managerial employees can
participate in the suggestion scheme.
Suggestion are accepted if they are anonymous and deposited in the suggestion box.
PARTICIPATIVE MANAGEMENT

FACT is a government of India undertaking and one of the leading companies in this sector. The
company has two production units at Udhyogamandal and Ambalamedu. FACT is the producer
of Fertiliser, Chemicals and Petrochemicals.
FACT always gives importance to the welfare of employees and workers
participation in management. Some of the common form of workers participation in management
is Working Committee, Joint Management Council, Joint Labour Management Action Group,
Shop Committee

32
 CHAPTER 4

RESEARCH METHODOLOGY

33
 RESEARCH METHODOLOGY

4.1 OBJECTIVES

 To find out the relationship between Motivation and employee performance

 To find out the factors influencing Motivation
 To know the effectiveness of motivation on employee performance
 To provide suggestions to improve the satisfaction level of the employees

4.2 HYPOTHESIS

The word hypothesis is a compound of two words “hypo” and “thesi”. Literally hypo means
under or below and thesis means a reasoned theory or rational viewpoint. Accordingly,
hypothesis would mean a theory which is not fully reasoned. In other words, hypothesis is a
theory entertained in order to study the facts and examine the validity of the theory

To determine there is any relationship between Job satisfaction and employee performance.

 Null Hypothesis (Ho)

There is a significance relationship between Job satisfaction and employee performance.

 Alternative Hypothesis

There is no significance relationship between Job satisfaction and employee performance

4.3 RESEARCH DESIGN

A research is a plan of the proposed research work. It is a systematic self-critical enquiry. This
enquiry is aimed at understanding a thing, or phenomenon or solving a problem. The research
designs simply a specific presentation of the various steps in the process of research. Design
adopting that type of technique of research which is most suited for the research and study of the
problem. It constitutes the blue print for the collection, measurement and analysis of data.

After selecting the topic and problems, defining concepts, and frame hypothesis, a researcher has
to think about the research design.

34
4.4 SOURCES OF DATA

For the study purpose both primary and secondary data are used. The primary data collected
from sales men of the companies, customers and dealers dealing in the products of the company.
The secondary data collected from records of the company, retailers and dealers. The data of past
sales also have been collected. The primary and secondary data have been collected to cover
every aspect of the study. The primary data are related to behaviour and response of employees,
dealers and customers. The secondary data shows the sales of the company product wise. These
data used in combination as per need of the study. These data having different merits and
demerits and have serves our purpose of the research study. The sources of data are:

4.5 PRIMARY AND SECONDARY DATA

(a) Primary Data

Primary data are information collected by a researcher specifically for a research assignment.
In other words, primary data are information that a company must gather because no one has
compiled and published the information in a forum accessible to the public. Companies
generally take the time and allocate the resources required to gather 8 primary data only
when a question, issue or problem presents itself that is sufficiently important or unique that
it warrants the expenditure necessary to gather the primary data. Primary data are original in
nature and directly related to the issue or problem and current data. Primary data are the data
which the researcher collects through various methods like interviews, surveys,
questionnaires etc.
The primary data have own advantages and disadvantages:
(i) Advantages of primary data:
Advantages of primary data are as follows:
• The primary data are original and relevant to the topic of the research study
so the degree of accuracy is very high.
• Primary data is that it can be collected from a number of ways like
interviews, telephone surveys, focus groups etc. It can be also collected
across the national borders through emails and posts. It can include a large
population and wide geographical coverage.

35
 • Moreover, primary data is current and it can better give a realistic view to
the researcher about the topic under consideration.
• Reliability of primary data is very high because these are collected by the
concerned and reliable party.
(ii) Disadvantages of primary data
Following are the disadvantages of primary data:
• For collection of primary data where interview is to be conducted the
coverage is limited and for wider coverage a more number of researchers are
required.
• A lot of time and efforts are required for data collection. By the time the
data collected, analysed and report is ready the problem of the research
becomes very serious or out dated. So the purpose of the research may be
defeated.
• It has design problems like how to design the surveys. The questions must
be simple to understand and respond.
• Some respondents do not give timely responses. Sometimes, the
respondents may give fake, socially acceptable and sweet answers and try to
cover up the realities.
• With more people, time and efforts involvement the cost of the data
collection goes high. The importance of the research may go down.
• In some primary data collection methods there is no control over the data
collection. Incomplete questionnaire always give a negative impact on
research.
• Trained persons are required for data collection. In experienced person in
data collection may give inadequate data of the research.

(b) Secondary Data

Secondary data are the data collected by a party not related to the research study but collected
these data for some other purpose and at different time in the past. If the researcher uses these
data then these become secondary data for the current users. These may be available in written,

36
typed or in electronic forms. A variety of secondary information sources is available to the
researcher gathering data on an industry, potential product applications and the market place.
Secondary data is also used to gain initial insight into the research problem. Secondary data is
classified in terms of its source – either internal or external. Internal, or in-house data, is
secondary information acquired within the organization where research is being carried out.
External secondary data is obtained from outside sources. There are various advantages and
disadvantages of using secondary data.

(i) Advantages of Secondary Data:

Advantages of secondary data are following:

• The primary advantage of secondary data is that it is cheaper and faster to access. •
Secondly, it provides a way to access the work of the best scholars all over the
world.

• Thirdly, secondary data gives a frame of mind to the researcher that in which
direction he/she should go for the specific research.

• Fourthly secondary data save time, efforts and money and add to the value of the
research study.

(ii) Disadvantages of Secondary data:

Following are the disadvantage of secondary data:
• The data collected by the third party may not be a reliable party so the
reliability and accuracy of data go down.
• Data collected in one location may not be suitable for the other one due
variable environmental factor.
• With the passage of time the data becomes obsolete and very old
• Secondary data collected can distort the results of the research. For using
secondary data a special care is required to amend or modify for use.
• Secondary data can also raise issues of authenticity and copyright.

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4.6 POPULATION

A population is the entire set of cases in which a study is interested. It is the full set of individual
or of objects having some common characteristics

The target population shall comprise of all the 150 employees in FACT.

4.7 SAMPLE DESIGNS

Sampling is a subset of the total population. It is the act, process or techniques of selecting a
suitable sample, or a representative part of population for the purpose of determining parameters
or characteristics of whole population.

Sample Unit

In this study the sample unit is taken from the different department of FACT

Sample size

The sample size of the study is 150

4.8 SAMPLING METHODS

There are different types of sample design based on two factor namely the representation basis
and the element selection technique. On the representation basis, the sample may be probability
sampling or it may be non-probability sampling. Probability sampling is based on the concept of
random selection, whereas non-probability sampling is non-random sampling. On element
selection basis, the sample may be restricted or unrestricted. When each sample element is drawn
individually from the population at large, then the sample so drawn as unrestricted sampling
where as all other forms of sampling are covered under the term restricted sample. Sample
design suggests how many items are to be included in the sample i.e. it gives about the size of
the sample .Thus, sample designs are basically of two types:-

Probability Sampling

Non-probability Sampling

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 PROBABILITY (RANDOM/CHANCE) SAMPLING
It is also known as random sampling or chance sampling. Under this sampling design, every
item of the universe has an equal chance of inclusion in the sample. Probability sampling is
based on the concept of random selection; the sample may be either unrestricted or restricted.
The most frequently used probability samples are:

Simple Random Sampling: A simple random sample is a sample selected from a

population in such a way that every member of the population has an equal chance of being
selected and the selection of individual does not influence the selection of any other. It consists
of two methods: lottery method and table of random numbers.

Stratified Sampling: In this method, population is divided into different sub populations
known as strata such that the items in each strata are homogeneous.

Systematic Sampling: This method is popularly used where complete list of the
population from which sample is to be drawn is available.

Cluster Sampling: In this, sample is chosen from the population in groups or clusters
rather than singly.

Area Sampling: Under this, total geographical area (when it is large) is divided into a
number of smaller non-overlapping areas and then some of the smaller areas are selected and all
units of the selected areas constitute the sample.

Quota Sampling: In this method, the investigator engaged in the primary collection of
data is assigned a quota for investigation.

Multistage Sampling: Sampling procedure is conducted in several stages.

Sequential Sampling: This method is adopted in acceptance with the sampling plans in
Statistical Quality Control

 NON-PROBABILITY SAMPLING

Non-probability sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has of being included in the sample.

39
 Purposive (Judgement / Deliberate) Sampling: Under this method, the investigator
exercises his discretion in the matter of selecting the items that are to be included in the sample.

Convenience (Accidental) Sampling: It is based on the convenience of the researcher

who is to select a sample. This type of sampling is also called „accidental sampling‟ as the
respondents in the sample are included in it, merely on account of their being available on the
spot, where the survey is in progress.

Non-Stratified Sampling: A sampling technique where a group of subjects (a sample)

for study is selected from a larger group (a population). Each individual is chosen entirely by
chance and each member of the population has an equal chance of being included in the sample.

Haphazard Sampling: In this method, the investigator selects the sample without
following a structured technique.

In this study convenient sampling is used to form the sample for conducting the study.

4.9 METHOD OF DATA COLLECTION

(a) Questionnaire

Questionnaire is a set of questions has been prepared to ask a number of questions and collect
answers from respondents relating to the research topic. A number of questions usually in printed
or electronic form are to be answered by the individuals. The forms often have blank spaces in
which the answers can be written. Sets of such forms are distributed to groups and the answers
are collected relating to research topic. A questionnaire is a series of questions asked to
individuals to obtain statistically useful information about a given topic. When properly
constructed and responsibly administered, questionnaires become a vital instrument by which
statements can be made about specific groups or people or entire populations. Inappropriate
questions, incorrect ordering of questions, incorrect scaling, or bad questionnaire format can
make the survey valueless.

(b) Telephone

40
Mobile Phone and Facsimile Telephone and other devices can be used for collecting data
verbally and written on fax from respondents located away from the researcher and having these
facilities plus the researcher having their contact numbers. Use of interviewers encourages
sample persons to respond, leading to higher response rates. Interviewers can increase
comprehension of questions by answering respondents' questions. It is fairly cost efficient,
depending on local call charge structure. It is good for large national or international respondents
and gives wider coverage. It cannot be used for non-audio information (graphics,
demonstrations, taste/smell samples) this instrument is not suitable for the respondents where the
telephone facility is not available.

(c) Mails

Mail For collection of data from the respondents who are located at a long distance and do not
have any communication facility. They can be contacted through mailed questionnaire. Only
thing is required that the researcher should have the postal addresses of the respondents. The
questionnaire may be handed to the respondents or mailed to them, but in all cases they are
returned to the researcher via mail. The cost involved is very less but no clarification can be
given to the respondents if required. Respondents can answer at their own convenience. The
respondents cannot be biased by the researchers and the detail information can be collected 12
for the research purpose. Only one disadvantage this instrument gives is that the response rate is
very less due to lack of interest in the topic of respondents and low literacy rate.

(d)Interview

In this method the interviewer personally meets the informants and asks necessary questions to
them regarding the subject of enquiry. Usually a set of questions or a questionnaire is carried by
him and questions are also asked according to that. The interviewer efficiently collects the data
from the informants by cross examining them. The interviewer must be very efficient and tactful
to get the accurate and relevant data from the informants. Interviews like personal
interview/depth interview or telephone interview can be conducted as per the need of the study.

(e) Observation Method

41
The production process in the company is come into view through method of observation. The
healthy relationship between the workers and the managers is also an example of observation
method of data collection.

4.10 DRAFTING A QUESTIONNARE

Questionnaires are commonly used to gather first-hand information from a large audience,
in the form of a survey. There are different types of questionnaires in practice and the type
of questionnaire to be used usually depends on the purpose of the survey and the type of
data that has to be collected.

Questionnaires are highly practical and can be carried out by any number of people, and
the results can be quickly quantified as well. Over the years, this form of conducting
research has also been proven to be more scientifically accurate, as compared to other
quantitative research tools.

Questionnaire Formats

Depending upon the nature of the questions in a questionnaire, there can be different types
of questions in questionnaire -

1. Questions in Open Ended Format

Questions that allow the target audience to voice their feelings and notions freely are
called open-format questions or open-ended questions. These questions are not based on
pre-determined responses, giving respondents an opportunity to express what they feel is
right, and often provide real, perceptional, and at times, startling proposals. Open -ended
questions placed at the end of a questionnaire tend to draw accurate feedback and
suggestions from respondents as well.

2. Questions in Closed Ended Format

Questions which have multiple options as answers and allow respondents to select a single
option from amongst them are called closed-format or closed-ended questions. This type
of questionnaire is especially useful when conducting preliminary analysis. As a fixed

42
answer set is provided, these are ideal for calculation of statistical information and
percentages of various types. Closed-ended questions help to arrive at opinions about a
product or service, and sometimes, about a company, in a more efficient manner.

Types of Closed Format Questions

Closed-ended questions which are aimed at collecting accurate statistical data can be
classified into the following seven types:

Leading Questions
A question forcing the target audience to opt for a specific kind of answer is calle d a
leading question. All answers for a leading question are almost similar. Leading
questions are usually prepared to derive audience opinion within a set of limited words.

Importance Questions
Questions which ask respondents to rate the importance of some specific matter on a
rating scale of 1 to 5 are called importance questions. Such questions facilitate drawing
what respondents consider significant - enabling vital business decision-making.

Likert Questions
The degree to which respondents agree to a specific statement can be ascertained using
Likert questions. Customers' feelings about a topic, product or service can be easily
gauged by asking them these questions.

Dichotomous Questions
Questions that make respondents answer with a simple "yes" or "no" are called
dichotomous questions. These questions carry one disadvantage-there is no other way of
analyzing the answer between a "yes" and "no". A middle perspective is not possible.

Bipolar Questions
Questions that have two answers with different levels of extremities, written at opposite
ends of a scale, are called bipolar questions. Respondents have to mark their response
anywhere between these two extremities, showing their opinion.

43
Rating Scale Questions
Questions that ask respondents to provide a rating on a specific matter on a scale of 1 to
10 or on a scale of "poor" to "good" are called rating scale questions. Normally, these
questions have an even number of choices, so as to prevent respondents to choose a
middle way out.

Buying Propensity Questions

These are aimed at assessing customers' future intentions, determining their propensity
toward buying a specific product or service. Buying propensity questions help marketers
to understand the needs of customers and the probability of their buying a cer tain product
or a service.

4.11 PILOT SURVEY

A pilot survey is a strategy used to test the questionnaire using a smaller sample compared to the
planned sample size. In this phase of conducting a survey, the questionnaire is administered to a
percentage of the total sample population, or in more informal cases just to a convenience
sample.

Advantages of a Pilot Survey

Conducting a pilot survey prior to the actual, large-scale survey presents many benefits and
advantages for the researcher. One of these is the exploration of the particular issues that may
potentially have an antagonistic impact on the survey results. These issues include the
appropriateness of questions to the target population.
A pilot survey also tests the correctness of the instructions to be measured by whether all the
respondents in the pilot sample are able to follow the directions as indicated. It also provides
better information on whether the type of survey is effective in fulfilling the purpose of the
study. Practically speaking, pilot surveys save financial resources because if errors are found in
the questionnaire or interview early on, there would be a lesser chance of unreliable results or
worse, that you would need to start over again after conducting the survey.

44
All in all, the main objective of a pilot study is to determine whether conducting a large-scale
survey is worth the effort.

TYPES OF PILOT SURVEY

A. According to Organization

There are two types of pilot survey according to organization – external and internal. An external
pilot survey intends to administer the questionnaire to a small group of target participants who
will not be included in the main survey. On the other hand, an internal pilot survey will consider
the respondents in the pilot as the first participants in the main survey.

B. According to Respondent Participation

There are two types of pilot survey according to the participation of the respondents – undeclared
and participatory. In an undeclared pilot survey, you administer the survey to a certain number of
respondents as if it is the real and full scale survey, not a pretest one. On the other hand,
participatory pilot surveys involve informing the respondents that they are in the pre-test phase.
The respondents are to be asked what they can say about the questionnaire, specifically their
reactions, comments and suggestions.

Validity and Reliability

Validity and reliability are two factors which any researcher should be concerned about while
designing a study, analyzing results and judging the quality of the study.

validity , explain that validity determines whether the research truly measures that which it was
intended to measure or how truthful the research results are. It estimates how accurately the data
obtained in the study represents a given variable or construct in the study. The questionnaire will
be given to other experts in research to seek their opinion about the adequacy and
representativeness of the instrument to ensure it covers all the variables being measured as a way
of eliminating content validity. The study has ensured reduction of construct validity by deriving
the research variables from existing theoretical frameworks. The study has adequately reviewed
related literature and modelled the study on sound theoretical models. 30 A pilot study will also

45
be conducted on the data collection instrument to pre-test the instrument before the main survey.
Saunders et al, (2009), agree that in any research, it is expedient as a matter of validity and
reliability to check that the instrument is pre-tested before the final administration. The pilot
study will enable the researcher to assess the clarity of the questionnaire so that those items
found to be redundant and misunderstood will be either discarded or modified to improve the
quality of the research instrument, thus increasing its validity.

Reliability, assert that reliability is the extent to which results are consistent over time and an
accurate representation of the total population under study. Cronbach‟s Alpha will be used as a
measure of reliability and internal consistency. Cronbach‟s Alpha is a reliability coefficient that
indicates how well items in a set are positively correlated to one another. It measures the
intercorrelations among test items, with a measure of 1 being higher in terms of internal
consistency and reliability and 0.7 to 0.9 being acceptable.

The following mathematical formula for Cronbach‟s alpha will be used to measure the
reliability and internal consistency.

Where: K is the number of test items is the average variance, and is the average of all covariance
between the components across the current sample.

4.12 DATA ANALYSIS TECHNIQUE

Statistical techniques are to obtain findings and analysing information in logical sequence
from the questionnaire

After tabulation of data research have used the following quantitative technique.

 Percentage analysis
 Chi-square analysis
 Correlation coefficient,
Percentage Analysis

46
A percentage is a way of expressing a number, especially a ratio, as a fraction of 100.
Percentages are used to express how large/ small one quantity is relative to another quantity. The
first quantity usually represents a part of, or a change in, the second quantity, which should be
greater than zero and one, any ratio can be expressed as a percentage. The present value is
computed by multiplying the numeric value of the ratio by 100. To calculate a percentage of a
percentage, convert both percentage to fractions of 100, or to decimals, and multiply them.

Chi-square Test

This test is used when we are dealing with the collection of values that include adding up
squares. Variance of samples requires adding a collection of squared quantities and thus having
distribution that is related to chi-square distribution. This method is used for judging the
significance of difference between observed and expected frequencies.

Chi-square is an important non-parametric test as such no test is necessary in respect of the type
of population. We require only the degree of freedom (implicitly of course the size of the
sample) for using this test. As a non-parametric test, chi-square can be used (1) as a test of
goodness of fit and (2) as a test of independence. Chi-square test enables us to explain whether or
not two attributes are associated. In order that we may apply the chi-square test either as attest to
judge the significance of association between attributes, it is necessary that the observed as well
as theoretical or expected frequencies must be grouped in same way and theoretical distribution
must be adjusted to give the same total frequencies as we find the case of observed distribution.
Karl Pearson developed a test for testing the significance of discrepancy between the
experimental value and the theoretical value obtained under some theory or hypothesis. This test
is as chi-square test of goodness of fit, Karl Pearson that the statistics
( )

Chi- square is used to test whether the different between observed and expected frequencies are
frequent. Observed frequencies are available in a given problem. But expected frequencies are to
be computed. To find chi-square table value degree of freedom should be calculated. Degree of
47
freedom is calculated using the formula (r-1)(c-1). The table of this degree of freedom is seen
using 5% or 1% of significance. If chi-square table value is greater than chi-square calculated
value, Null hypothesis is accepted or Null hypothesis is rejected.

Correlation

Correlation means relationship between two variables. When two variables move together then
we called it as correlated. When the one variable changes and if there is a corresponding change
in another variable then that is called correlation. It can be defined as "Tendency of two or more
variables of items varies together directly or indirectly." That means an increase or decrease in
one variable is found in connection with an increase or decrease of other variable. There are
several methods and formulas are used to measure correlation. Among that Karl Pearson
coefficient of correlation is widely used.

Karl Pearsons coefficient of correlation is denoted by using the symbol „r‟. It can be expressed in
the following way.

Conditions;

Where,

r = 0; there is no correlation between the variables

r = -1; there is negative perfect correlation

r = + 1; there is positive perfect correlation

r = 0.9; there is high positive correlation

r = 0.2; there is low positive correlation

r = 0.5; there is moderate positive correlation

48
CHAPTER 5

DATA ANALYSIS

49
 5.1 DATA ANALYSIS

Table No: 5.1 Employees opinion about management support.

Particulars Respondents Percentage

Highly Satisfied 12 8
Satisfied 88 59
Neutral 26 17
Dissatisfied 14 9
Highly Dissatisfied 10 7
Total 150 100

Source –Primary data

100
90
80
70
60
50
40
30
20
10
0
Highly satisfied Satisfied Nutral Dissatisfied Highly
dissatisfied

Figure No:5.1

INTERPRETATION

From the above data it is clear that 59% of the employees are satisfied with management
support. 17% of the employees are of neutral opinion. 8% says that they are highly satisfied with
management support. 9%of the employees are dissatisfied and 7% of the employees are highly
dissatisfied with the management support.

50
 Table no:5.2 Employees satisfaction level at present job

Particulars Respondents Percentage

Highly Satisfied 15 10
Satisfied 91 61
Neutral 20 13
Dissatisfied 10 7
Highly dissatisfied 14 9
Total 150 100
Source –Primary data
100
90
80
70
60
50
40
30
20
10
0
Highly Satisfied Neutral Dissatisfied Highly
satisfied dissatisfied

Figure no:5.2

INTERPRETATION

Respondents says that, 61% of the employees are satisfied with the present job. 13% of them
have neutral opinion. 10% of them are highly satisfied and 9% of them are highly dissatisfied
with present job.

51
 Table No:5.3 .Employees opinion about salary and perks provided by the organisation.

Particulars Respondents Percentage

Highly Satisfied 12 8
Satisfied 90 60
Neutral 20 13
Dissatisfied 18 12
Highly Dissatisfied 10 7
Total 150 100
Source –Primary data
100
90
80
70
60
50
40
30
20
10
0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

Figure No:5.3

INTERPRETATION

From the above data, 60% of the employees are satisfied with salary and perks provided by the
organization . 13% of them have neutral opinion. 12% of them are dissatisfied, 8% of them are
highly satisfied and 7% of them are highly dissatisfied with the salary and the perks
provided by the organization.

52
 Table No: 5.4 Employees opinion about promotion avenues provided by the organisation

Particulars Respondents Percentage

Highly Satisfied 6 4
Satisfied 42 28
Neutral 44 29
Dissatisfied 40 27
Highly Dissatisfied 18 12
Total 150 100
Source –Primary data
50
45
40
35
30
25
20
15
10
5
0
Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied

Figure No:5.4

INTERPRETATION

From the above data 29% of the employees says that they have neutral opinion about the
promotion avenues provided by the organisation. 28% of them are satisfied. 27% of them are
dissatisfied then 12% of the employees are highly dissatisfied with the promotion avenues. 4% of
the are highly satisfied.

53
 Table no:5.5 Support from co- workers and management

Particular Respondents Percentage

Highly Satisfied 22 15
Satisfied 87 58
Neutral 20 13
Dissatisfied 16 11
Highly Dissatisfied 5 3
Total 150 100
Source –Primary data
100
90
80
70
60
50
40
30
20
10
0
Highly satisfied Satisfied Neutal Dissatisfied Highly dissatisfied

Figure No:5.5

INTERPRETATION

Respondents says that 58% them are satisfied with the support of co-workers and management.
15% of them are highly satisfied. 30% of them have neutral opinion and 11% them are
dissatisfied and 3% of them are highly dissatisfied with the support of co-workers and
management.

54
 Table No: 5.6 Employees opinion about Communication channel exist in the
organisation.

Particular Respondents Percentage

Highly Satisfied 10 7
Satisfied 90 60
Neutral 30 20
Dissatisfied 12 8
Highly Dissatisfied 8 5
Total 150 100
Source –Primary data

100
90
80
70
60
50
40
30
20
10
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied

Figure no :5.6

INTERPRETATION

From the above data, 60% of the employees are satisfied with the communication channel
exist in the organisation. 20% of them have neutral opinion. 8% of them are dissatisfied
with the communication channel exist in the organisation. 5% of the employees are highly
dissatisfied with the same.

55
 Table No: 5.7 Employees opinion about grievance redressal system in the Organisation

Particulars Respondents Percentage

Highly Satisfied 8 5
Satisfied 75 50
Neutral 40 27
Dissatisfied 21 14
Highly Dissatisfied 6 4
Total 150 100
Source –Primary data

80
70
60
50
40
30
20
10
0
Highly satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Figure No:5.7

INTERPRETATION

Respondents says that 50% them are satisfied with the grievance redressal system exist in the
organisation. 27% of them have neutral opinion and 14% them are dissatisfied and 5% of them
are highly satisfied and 4% of the employees are highly dissatisfied with the same.

56
 Table No:5.8 Employees opinion about the welfare and safety measures provided by the
organisation.

Particulars Respondents Percentage

Highly Satisfied 8 5
Satisfied 90 60

Neutral 34 23
Dissatisfied 10 7
Highly Dissatisfied 8 5
Total 150 100
Source –Primary data

100
90
80
70
60
50
40
30
20
10
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Figure No5.8

INTERPRETATION

From the above data 60% employees are satisfied with the welfare and safety measures
provided by the organisation, 23% of them are of neutral opinion , 7% employees are
dissatisfied and 5% employees are highly satisfied and dissatisfied.

57
 Table No: 5.9 Employees opinion about employees participation in management

Particulars Respondents Percentage

Highly Satisfied 10 7
Satisfied 68 45
Neutral 52 35
Dissatisfied 15 10
Highly Dissatisfied 5 3
Total 150 100
Source –Primary data

80
70
60
50
40
30
20
10
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Figure No:5.9

INTERPRETATION

From the above data 45% employees are satisfied with the workers participation in
management, 35% employees are of the opinion neutral , 10% employees are dissatisfied and
7% are highly satisfied with the workers participation in management, 3% employees are highly
dissatisfied with the same.

58
 Table No:5.10 Employees opinion about interpersonal relationships exist in the
organisation

Particulars Respondents Percentage

Highly Satisfied 22 15
Satisfied 72 48
Neutral 32 21
Dissatisfied 16 11
Highly Dissatisfied 8 5
Total 150 100
Source –Primary data

80
70
60
50
40
30
20
10
0
Highly Satisfied Satisfied Neutral Dissatisfied Highly Dissatisfied

Figure No:5.10

INTERPRETATION

This table shows that 48% employees are satisfied with the interpersonal relationship exist in the
organisation, 21% of them are of neutral opinion ,15% of employees are highly satisfied ,11%
employees are dissatisfied with the interpersonal relation exist in the organisation and 5%
employees are highly dissatisfied.

59
 Table No: 5.11 Employees opinion about the incentives provided by the company

Particulars Respondents Percentage

Strongly Agree 30 20
Agree 76 51
Neutral 18 12
Disagree 15 10
Strongly Disagree 11 7
Total 150 100
Source –Primary data

80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure No:5.11

INTERPRETATION

This table shows that 51% employees agree that motivation will affect employees performance,
20% employees strongly agree, 12% of them are of neutral opinion, 10 % employees disagree
that motivation will not affect employees performance, 7% employees strongly disagree with the
same.

60
 Table No:5.12 Employees opinion about the motivation factors

Particulars Respondents Percentage

Salary increase 9 6
Promotion 10 7
Leave 48 32
Motivational Talk 26 17
Recognition 57 38
Total 150 100
Source –Primary data

60

50

40

30

20

10

0
Salary increase Promotion Leave Motivational Recognition
Talk

Figure No:5.12

INTERPRETATION

This table shows that 6% of the employees are of the opinion that salary increase is the
motivating factor. 7% of employees says it is promotion. 32% are of the opinion that leave is the
motivating factor for them. 17% says it is motivational talks and remaining 38% are of the
opinion that the motivating factor is recognition

61
 Table No:5.13 Employees opinion about most motivating type of benefit

Particulars Respondents Percentage

High Salary 16 11

Challenging jobs 22 15
Job Recognition 60 40

Rewards 25 16

Other benefits 27 18

Total 150 100

Source –Primary data

70
60
50
40
30
20
10
0
High Salary Challenging Job Recognition Rewards Other benefits
jobs

Figure No:5.13

INTERPRETATION

From the above table it shows that 11% of employees are of the opinion that high salary is the
most motivating type of benefit. 15% of employees says it is challenging jobs. 40% are of the
opinion that job recognition is the most motivating type of benefit. 16% says rewards and
remaining 18% says other benefits.

62
 Table No:5.14 Employees opinion about their role in decision making in the department

Particulars Respondents Percentage

Yes 30 20
No 72 48
Occasionally 48 32
Total 150 100
Source –Primary data

80

70

60

50

40

30

20

10

0
Particulars Yes No
Occasionally

Figure No:5.14

INTERPRETATION

From the above table 20% employees says that they are having role in decision making in the
department , 48% says no role and remaining 32% says they gets role occasionally in decision
making.

63
 Table No:5.15 Opinion of employee relating to highly motivating incentive

Particulars Respondents Percentage

Financial incentives 53 35
Non- Financial incentives 32 22
Both 65 43
Total 150 100

Source –Primary data

70

60

50

40

30

20

10

0
Financial incentives Non- Financial Both
incentives

Figure No:5.15

INTERPRETATION

This shows that, 53% employees says financial incentives are highly motivating incentive, 22%
employees says non-financial incentives and remaining 43% says both financial and non-
financial incentives are highly motivating incentive.

64
Table No:5.16 Employees opinion about periodic increment in salary as a motivating factor

Particulars Respondents Percentage

Strongly Agree 22 15
Agree 80 53
Neutral 16 11
Disagree 24 16
Strongly Disagree 8 5
Total 150 100
Source –Primary data

90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Figure No:5.16

INTERPRETATION

This shows that 53% of employees agree about periodic increment in salary as a motivating
factor, 16% disagree with it and 15% strongly agree that periodic increment in salary as a
motivating factor , 11% of them are of neutral opinion remaining 5% strongly disagree with the
opinion regarding periodic increment in salary as a motivating factor.

65
 Table No:5.17 Employees opinion about job security as a motivating factor

Particulars Respondents Percentage

Strongly Agree 18 12
Agree 86 57
Neutral 24 16
Disagree 16 11
Strongly Disagree 6 4
Total 150 100
Source –Primary data

100
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure No:5.17

INTERPRETATION

From the above data 57% of employees agree that job security as a motivating factor, 16% of
them have neutral opinion. 12% of employees strongly agree and 11 % disagree with it,
remaining 4% strongly disagree with the same.

66
Table No:5.18 Employees opinion about interpersonal relationship as a motivating factor.

Particulars Respondents Percentage

Strongly Agree 22 15
Agree 80 53
Neutral 24 16
Disagree 16 11
Strongly Disagree 8 5
Total 150 100
Source –Primary data

90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure No:5.18

INTERPRETATION

This shows that 15% employees strongly agree about interpersonal relationship as a
motivating factor, 53% employees agree, 16% employees are of the opinion neutral, 11%
disagree about the interpersonal relationship as a motivating factor, remaining 5% employees
strongly disagree with the same.

67
 Table No:5.19 Employees opinion about existence of effective performance appraisal
system.

Particulars Respondents Percentage

Strongly Agree 18 12
Agree 86 57
Neutral 24 16
Disagree 16 11
Strongly Disagree 6 4
Total 150 100
Source –Primary data

100
90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure No:5.19

INTERPRETATION

This shows that, 12% employees strongly agree about existence of effective performance
appraisal system , 57% employees agree, 16% employees are of the opinion neutral ,11%
employees disagree about existence of effective performance appraisal system, 4% employees
strongly disagree with the same.

68
 Table No:5.20 Opinion about performance appraisal as a motivating factor.

Particulars Respondents Percentage

Strongly Agree 22 15
Agree 82 54
Neutral 24 16
Disagree 16 11
Strongly Disagree 6 4
Total 150 100
Source –Primary data

90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly
Disagree

Figure No:5.20

INTERPRETATION

This shows that 54% employees agree about performance appraisal as a motivating factor,
16% employees are saying its neutral , 15% employees strongly agree with it. 11% employees
disagree about performance appraisal as a motivating factor remaining 4% employees strongly
disagree with the same.

69
Table No:5.21 Opinion about safety measures adopted by the organisation as a motivating
factor.

Particulars Respondents Percentage

Strongly Agree 12 8
Agree 74 49
Neutral 40 27
Disagree 14 9
Strongly Disagree 10 7
Total 150 100
Source –Primary data

80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly disagree

Figure No:5.21

INTERPRETATION

This shows that , 49% employees agree about safety measures adopted by the organisation as a
motivating factor, 27% employees are of the opinion neutral ,9% employees disagree , 8% of
employees strongly agree and remaining 7% employees strongly disagree agree about safety
measures adopted by the organisation as a motivating factor.

70
Table No: 5.22 Employees opinion about recognition and acknowledgement provided by
the company

Particulars Respondents Percentage

Strongly Agree 12 8
Agree 76 51
Neutral 32 21
Disagree 20 13
Strongly Disagree 10 7
Total 150 100
Source –Primary data

80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure No:5.22

INTERPRETATION

This shows that 8% employees are strongly agree about recognition and acknowledgement
provided by the company, 51% employees agree,21% employees are of the opinion neutral,
13% employees disagree about recognition and acknowledgement provided by the company, 7%
employees strongly disagree.

71
 Table No:5.23 Employees opinion about welfare measure as a motivating factor

Particulars Respondents Percentage

Strongly Agree 15 10
Agree 85 57
Neutral 20 13
Disagree 18 12
Strongly Disagree 12 8
Total 150 100
Source –Primary data

90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure No:5.23

INTERPRETATION

This shows that ,10% employees strongly agree about welfare measure as a motivating factor,
57% employees agree, 13% employees are of the opinion neutral , 12% disagree about welfare
measure as a motivating factor, 8% employees strongly disagree with the same.

72
 Table No: 5.24 Employees opinion about the interest of management in motivating the
performance of employees

Particulars Respondents Percentage

Strongly Agree 14 9
Agree 76 51
Neutral 32 21
Disagree 18 12
Strongly Disagree 10 7
Total 150 100
Source –Primary data

80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure No:5.24

INTERPRETATION

From the above data 51% employees agree about the interest of management in motivating the
performance of employees, 21% of them are of neutral opinion ,12% employees disagree about
the interest of management in motivating the performance of employees, 9% strongly disagree
and remaining 7% employees strongly disagree with the same.

73
 Table No:5.25 Employees opinion about the satisfaction of working environment in the
organisation

Particulars Respondents Percentage

Strongly Agree 15 10
Agree 82 55
Neutral 23 15
Disagree 17 11
Strongly Disagree 13 9
Total 150 100
Source –Primary data

90
80
70
60
50
40
30
20
10
0
Strongly Agree Agree Neutral Disagree Strongly Disagree

Figure No:5.25

INTERPRETATION

This shows that 55% employees agree that welfare measures affect employee motivation, 55%
employees agree, 15% employees are of the opinion neutral , 11% employees disagree,10%
strongly agree about the satisfaction of working environment in the organisation and remaining
9% employees strongly disagree with the same.

74
CHI-SQUARE TEST

To determine there is any relationship between motivation and employee performance.

Null Hypothesis (Ho)

There is a significance difference between motivation and employee performance

Alternative Hypothesis

There is no significance difference between motivation and employee performance.

QUESTION;

Do you think motivation will affect your performance?

Particulars Respondents
Strongly Agree 30
Agree 78
Neutral 18
Disagree 15
Strongly Disagree 9
Total 150

X2= ∑ ( ) ∕E

Where “E” Is the expected frequency.

“O” is the observed frequency

75
 O E O-E (O-E)2 (O-E)2/E
30 30 0 0 0
78 30 48 2304 768
18 30 -12 144 4.8
15 30 -15 225 7.5
9 30 -21 441 14.7
795

E =150/5

30

Degree of Freedom =N-1

5-1

Table Value =9.448

Calculated value = 795

Table value < Calculated value

So motivation will affect employee performance.

Interpretation:

From the above hypothesis we identify that the calculated value of the chi square is 795 and the
table value is 9.448. So we reject the null hypothesis. So, it can be concluded that motivation will
affect employee performance.

76
CORRELATION

The relationship between managements interest in motivating employees and welfare measures
as a motivating factor

x y X2 Y2 xy
9 15 81 225 135
57 82 3249 6724 4674
48 23 2304 529 1104
26 17 676 289 442
10 13 100 169 130

∑X = 150

∑Y=150

∑X2 = 6410

∑Y2 = 7936

∑XY = 6485

n =5

77
Conditions;

Where,

r = 0; there is no correlation between the variables

r = -1; there is negative perfect correlation

r = + 1; there is positive perfect correlation

r = 0.9; there is high positive correlation

r = 0.2; there is low positive correlation

r = 0.5; there is moderate positive correlation

r= 5 x 6485 - (150 x 150)

√ 5 x 6410 – ( 150 x150) x √ 5 x7936 – 150 x15

r= 32425-22500

√ 9550 x √ 17180

r = 9925

7630

r= 1.300

Interpretation

From the above analysis r is 1.300 from that we can interpret that there is positive perfect
correlation between management and welfare measures.

78
CHAPTER 6
FINDINGS

79
 FINDINGS

 Fertilisers and Chemicals Travancore Limited has well- defined organisational structure.
 The study indicates that there is a relationship between motivation and employee
performance.
 59% employees says that they are satisfied with the managements support.
 In FACT 61% employees are satisfied with their present job.
 FACT provide good remuneration to its employees. 60% employees are satisfied with
salary and perks provided by the organisation.
 Since promotion opportunities is an important factor which can motivate employees.
Employees in FACT is not highly satisfied with promotion and career development
opportunities provided by the organisation.
 There is a good interpersonal relationship exist in the company.58% employees are
satisfied with the interpersonal relationship exist in the company . Interpersonal
relationship exist in the company is an important factor which motives employee
performance.
 There is a good communication cannel exist in the company.60% employees are satisfied
with the communication channel exist in the company. It is also an important factor
which can influence employee performance. 55% employees agree that communication
channel exist in the organisation motives them.
 50% Employees are satisfied with the grievance redressal system exist in the
organisation. FACT give considerations to employees grievance and it takes various
measures redress employee grievance.
 Employees in FACT has good opinion about the welfare and safety measures provided by
the organisation. 60% employees are satisfied with the welfare and safety measures
provided by the organisation. Welfare and safety measure are important factors which
influence employee performance.

80
 Employees in FACT are not highly satisfied with employees participation in
management. Company should try to give more opportunities for employee participation
in management.
 Both the financial as well as non- financial incentives motivates the employees in FACT
 FACT provides various types of incentives for motivating the employees, 61 %
employees are satisfied with the incentives provided by the organisation. Incentives
provided by the organisation is also an important factor of motivation.
 Since FACT is a public organisation and there is large of job security exist in the
organisation. It is also an important factor of motivating the employees.

81
 CHAPTER 7
RECOMMENDATIONS

82
 RECOMMENDATIONS

 This study reveal that both financial and non- financial incentives motivates an employee.
So the company should try to provide more effective financial and non- financial
motivations to the employees.
 Employees should be identified by their better performance and should give some type of
incentives, promotions etc. So that employee will be boosted up and will work better.
 Management should try to include employee‟s opinion in decision making.
 Promotions should be given on the basis of performance only.
 Company should try to provide incentives by considering the needs and wants of
employees.
 The motivation review discussion should be practiced well to encourage the open
communication between both the appraiser and appraise.
 Better development opportunities should be given to the employees for their improvement
 The management should study motivation theories for better motivation.
 Employees in FACT are not satisfied with the promotion and career development
opportunities provided by the organisation, so the company should try to give more
promotion and career development opportunities to the employees.

83
CHAPTER 8
CONCLUSION

84
 CONCLUSION

The study concluded that motivational programmes in FACT are highly effective and it make
impact on employees performance. THE STUDY ON EMPLOYEE MOTIVATION AND ITS
EFFECTIVENESS ON EMPLOYEE PERFORMANCE IN FACT LTD,UDYOGAMANDAL
identify various motivational factors which influence employee performance. The study also
reveal that both financial and non-financial incentives motives the employees. The study was
conducted among 150 employees and collected information through structured questionnaire.
The incentives, salary increments, promotions play a major role in motivating the employees of
the organisation. It is major factor that make employee feel good in workplace make changes in
employee performance. The organisation can concentrate on specific area which are evolved
from the study in order to make motivation programme more effective . Only if the employee are
properly motivated – they work well and only if they work well the organisation is going to
benefit out of it. Steps should be taken to improve the motivational programme in future. The
suggestion of this report may help in this direction.

85
REFERENCES

86
 BIBILIOGRAPHY

 Kothari C.R “Research Methodology‟‟,New Age International Private Limited, New

Delhi
 Meyer , J.P, Allen, N. J & Smith ,C.A “Commitment to organization and occupations:
Extension and test of a three- component conceptualization‟‟ Journal of applied
psychology , 1993.
 Robbins ,S.P. “Organizational Behaviour‟‟,14/e :Pearson Education
India,2001
 Chahbra T.N, “Human Resource Management- Concept and Issues New Delhi: Dhanpant
Ra&CO (P) Ltd ,2008
 Silverthorne, C. “The Impact of Organizational I Commitment Job satisfaction,‟‟ The
Leadership and Organization Development Journal, 2004

WEBLIOGRAPHY

www.factltd.com

www.slideshare.net/employeecommitment

87
APPENDIX

88
APPENDIX A

89
 A STUDY ON EMPLOYEE MOTIVATION AND ITS EFFECTIVENESS
ON EMPLOYEE PERFORMANCE IN FACT LTD, UDYOGAMANDAL..

QUESTIONNAIRE

Dear Sir/Madam,

I ARYA R NAIR, MBA student of Mangalam college of Engineering conducting a project study
on “EMPLOYEE MOTIVATION AND ITS EFFECTIVENESS ON EMPLOYEE
PERFORMANCE IN FACT LTD, UDYOGAMANDAL”.

I will be grateful if you kindly fill up the below questionnaire. I assure that all the data I collect
will be kept strictly confidential and will use them only for academic purpose.

ARYA R NAIR

90
  Name:

 Age:

 Sex:
Male
Female

 Department:

 Experience:

0-10 Years 10-20 Years 20-25 Years

25-30 Years 30 above

 Please Tick (  ) one box per phrase.

Highly
Factors Satisfied Neutral Dissatisfied Highly
Satisfied
dissatisfied

1. Support from
management

2. Present job

3. Salary and
perks
4. Promotion
avenues

91
 5. Support from
co-workers and
management
6.
Communication
channel
7. Grievance
redressal system
8. Welfare and
safety measures
9. Employee
participation in
management
10. Interpersonal
relationship

11. Incentives
provided by the
organization

12. Rank the following factors which motivate you most ?

1 , 2, 3, 4, 5 respectively.
Salary increase Promotion Leave

Motivational talk Recognition

13. What factor motivates you?

High Salary Challenging jobs Job Recognition

Rewards Other benefits (like insurance, bonus, loan facility)

92
14. Does the management involve you in decision making which are connected to your
department?

Yes No Occasionally
15. Which type of incentives motivates you more?
Financial incentives Non-financial incentives Both

 Please Tick (  ) one box per phrase.

Strongly Agree Neutral Disagree Strongly

Factors
agree disagree
16. Do you think
Reasonable periodic
increase in salary influence
your performance?

17. Do you think job

security exist in the
company influence your
performance?
18. Do you think good
interpersonal relationship
motivates you?

19. Do you think effective

performance appraisal
system exist in the
organization?
20. Performance appraisal
activities are helpful to get
motivated?

21. Do you think safety

measures adopted in the
organization motivates you?

93
22. Do you think company
recognise and acknowledge
your work?

23. Does welfare measures

motivates you?

24. Do you think

management is really
interested in motivating
the Performance of
Employees?

25. Are you satisfied with

the working environment in
the organization?

94