PROJECT REPORT

“An Analysis of Employees’ Motivation practices and Its Impact on Job

Performance in the IT Sector’’
 INDEX

Sr. No. Contents Page

No.

1 Introduction 1

2 Literature Review 36

3 Research Study

 Problem Definition

 Need of the study 39

 Objective of the Study

 Hypothesis 40

4 Research Methodology 41

5 Data Analysis and Interpretation 43

6 Conclusion 73

7 Limitations 75

8 Findings 76

9 Suggestions 77

10 Bibliography 78

Annexure 80
 CHAPTER - 1

INTRODUCTION
 “No great achiever – even those who made it seem easy – ever succeeded

without hard work.”

– Jonathan Sacks

1.1 Meaning of Motivation

Motivation is the process that initiates, guides, and maintains goal-oriented

behaviours. It is what causes you to act, whether it is getting a glass of water to

reduce thirst or reading a book to gain knowledge. Motivation involves the

biological, emotional, social, and cognitive forces that activate behaviour. In

everyday usage, the term "motivation" is frequently used to describe why a

person does something. It is the driving force behind human actions.

Motivation is a driving force which affects the choice of alternatives in the

behaviour of a person. It improves, stimulates and induces employees leading to

goal-oriented behaviour.

For example, promotion is a motivating factor as employees work to achieve

pre-set targets for getting a promotion. Motivation can be monetary, e.g.,

rewards given in the form of a car or a hike in the salary or it can be non-

monetary in the form of public appreciation.

1.2 Definitions of Motivation by Authors

1. Michael Jucious, ‘motivation is the act of stimulating someone or oneself

to get a desired course of action, to push the right button to get a desired

reaction’.

2. S. Zedeek and M. Blood define, ‘Motivation is a predisposition to act in a

specific goal-directed way’.

3. According to Dalton E. McFarland—”Motivation refers to the way in

which urges, drives, desires, aspirations, strivings or needs direct, control

or explain the behaviour of human beings.”

4. Robert Dubin has defined—”Motivation as something that moves the

person to action and continues him in the course of action already

initiated.”

5. Koontz and O’Donnell are of the view that “Motivation is a general term

applying to the entire class of drives, desires, needs, wishes and similar

forces that induce an individual or a group of people to work.”

1.3 Importance of the Motivation

1. Greater efficiency:

Motivation enhances the efficiency of the employees and of organization.

When employees are motivated, they can perform with commitment and

dedication.

2. Reduction in absenteeism and labour turnover:

Motivated employees may not remain absent or leave the organization. They

develop a sense of belonging towards the organization and thus improve

their overall performance.

3. Team spirit:

Motivation improves team spirit of employees, and this improves the work

environment and the overall performance of the employee and the

organization.

4. Reduction in wastages and breakages:

Motivated employees take great care in handling machines and other

resources. This will reduce wastages and breakages, thus resulting in

higher benefits to the organization.

5. Cordial relations:

Motivation enables cordial and healthy relationship in the organization.

Motivation helps reduce labour grievances and disputes. It ensures sound

relations between the management and the labour. It improves the overall

efficiency of the organization.

6. Promotion of innovation:

Motivated employees use their initiative to find out innovative ways in

the performance of their operations. Such employees are more creative

and help the organization to gain the competitive advantage.

7. Optimum use of resources:

Motivation leads to greater employee involvement and lesser wastages.

This leads to optimum utilization of resources.

1.4 Characteristics/Features of Motivation:

1. Interaction between the individual and the situation:

Motivation is not a personal trait but an interaction between the

individual and the situation.

2. Goal-directed behaviour:

Motivation leads to an action that is goal oriented. Motivation leads to

accomplishment of organizational goals and satisfaction of personal needs.

3. Systems oriented:

Motivation is influenced by two forces:

a) Internal forces:

These forces are internal to the individual, i.e., their needs, wants

and nature.

b) External forces:

These forces are external to the individual, which may be

organizational related such as management philosophy,

organizational structure, and superior-subordinate relationship, and

also the forces found in the external environment such as culture,

customs, religion and values.

1.5 Need of the Motivation

1. Motivation helps to improve performance levels of employees as well as

the organisation. Since proper motivation satisfies the need employees.

They in turn devote all their energies for optimum performance in their

work. A satisfied employee can always turnout expected performance.

Good motivation in the organisation helps to achieve higher levels of

performance as motivated employees contribute their maximum efforts

for organisational goals.

2. Motivation helps to change negative or indifferent attitudes of employee

to positive attitudes so as to achieve organisational goals. For example, a

worker may have indifferent or negative attitude towards his work, if he

is not rewarded properly. If suitable rewards are given and supervisor

given positive envisagement and praise for the good word done the

worker may slowly develop positive attitude towards the work.

3. Motivation helps to reduce employee turnover and therefore saves the

cost of new recruitment and training. The main reason for high rate of

employee turnover is lack of motivation. If mangers identify motivational

needs of employees and provide suitable incentives, employees may not

think of leaving the organisation.

 1.6 Types of Motivation

The two types of motivation are:

1. Intrinsic motivation

2. Extrinsic motivation
1. Intrinsic motivation

 Intrinsic motivation can arise from self-generated factors that

influence people’s behaviour.

 It is not created by external incentives.

 It can take the form of motivation by the work itself when

individuals feel that their work is important, interesting and

challenging and provides them with a reasonable degree of

autonomy (freedom to act), opportunities to achieve and advance,

and scope to use and develop their skills and abilities.

2. Extrinsic motivation

 Extrinsic motivation occurs when things are done to or for people

to motivate them.

 These include rewards, such as incentives, increased pay, praise, or

promotion; and punishments, such as disciplinary action,

withholding pay, or criticism.

 Extrinsic motivators can have an immediate and powerful effect,

but will not necessarily last long.

 1.7 Tools of Motivation to Boost Employee Morale

It is very important for an organization to have a happy and satisfied workforce.

Hence organizations use different motivational tools to boost the morale of their

employees. These can be physical or monetary rewards, or internal and intrinsic

that uses psychological measures to enhance the self-esteem of the employees.

Some of the Motivational Tools applied by the organizations are discussed

below:

1. Job Characteristic Model

This approach basically holds that each job has certain nature and

characteristics that combine to create meaningful work. The presence of

some of these characteristics can make a job more important and

worthwhile than the other.

They can be described in terms of five core dimensions as below:

 Skill Variety

 Task Identity

 Task Significance

 Autonomy

 Feedback
2. Job Redesign

While redesigning a job, responsibilities and duties is done in order to

inspire the employees. The aim is to place the right person at the right job

at the same time increasing their satisfaction levels. The process includes

increasing the variety of assignments and functions, reshuffling and

reforming in order to make the employees feel an important asset of the

organization. Below are the various approaches to job redesigning.

 Job Rotation

 Job Enlargement

 Job Enrichment

3. Alternative Work Arrangements

Apart from job redesigning as a tool to motivate employees, there are other

ways of motivating them by alternative work arrangements discussed

below:

 Flexible Work Timings

 Job Sharing

 Telecommuting
4. Empowerment

It means delegating more power to employees to make their own decisions

without the approval of their immediate seniors over areas of their work.

It is not necessary that it is accompanied with a monetary benefit as it is a

psychological tool and helps to boost the self-esteem of the employees.

Empowerment encourages employees to become innovators.

The employees are supported and encouraged to utilize their skills, ability

and creativity by accepting accountability for their work. This concept

works when the employees are adequately trained and provided with all

the relevant information.

There should be conducive conditions for empowerment. Employees must be

encouraged to take control of their work. Superiors must be receptive to

the employee’s innovative ideas. Trust levels should be high between the

employees and the superiors. And there should be frequent feedbacks

provided to the employees regarding their performance.

All of the above measures lead to an enhanced self-efficacy amongst the

employees, they tend to become more confident and self-assured. This

leads to increased and effective activity directed towards task

accomplishment.
5. Participative Management

Participative management means involving workers in the decision-

making process, it involves employees or employee representatives at all

levels of decision making. The aim is to involve those who are influenced

by the decisions in making decisions.

Since the worker gives his time, commitment and energy to the

workplace, he should be given a chance to participate in the decision-

making process. The employee should be given an opportunity to express

his views and due importance should be given to them by the

management while framing policies.

The various methods of participation are:

 Participation at the Board level.

 Participation through share ownership.

 Participation through joint councils and committees.

 Participation through job enlargement.

 Financial Participation.

 Empowered teams.

 Participation through Collective Bargaining.

6. Quality of Work Life (QWL)

It is determined by the environment at the workplace. It measures the larger

personal satisfaction that the employees are deriving from working in an

organization.

There are few factors that impact the quality of work-life of the employees in

a major way.

Some of them are stated below:

 Pay

 Benefits

 Job Security

 Job Enrichment

 Job Flexibility

 Other Measures
7. Mentoring

Mentoring is a formal or informal relationship between the two employees, a

senior mentor and a junior mentee. Generally the mentor is outside the

mentee’s chain of supervision. There are various mentoring programs that

are undertaken which help in motivating the mentee, boosting his morale,

enhancing his career development and increasing organizational

productivity.

In the words of B. H. Owens mentoring, “Is a supportive and nurturing

relationship between an expert and a notice”.

A mentor is a teacher, guide, friend and a great support system to the

mentee. Mentoring helps in skill enhancement, it enables experienced and

highly competent staff to pass their expertise to the young professionals

who need to acquire skills.

Mentoring helps in mentees career development, it paves a path for them to

manage and grow their careers. They also become resilient and self-

reliant in times of change. Mentoring helps develop leadership

competencies in the mentee.

This is more effectively gained through on job practical examples than in

theories. Mentoring influences staff retention as there are ongoing

interactions, coaching, learnings etc.

8. Employee Counselling

Sometimes employees might face some difficult time and their morale

may go down. They might feel demotivated because of several reasons

like unrealistic targets, excessive workload, tight deadlines, lack of team

spirit, interpersonal relationships, personal or family problems etc. In

such cases, HR managers, line managers, supervisors take the

responsibility of counselling the distressed employee.

In the counselling session, the managers sit with the counselee, listens to

his problems, addresses the issues, provides feedback and helps the

counselee to see a different viewpoint. He further suggests and

recommends solutions, reach conclusions, decides the right course of

action. Once the corrective action is taken he follows up on the

development.

The HR manager stays informed, discusses the issue with the relevant

supervisor, schedules a joint counselling session, continuously asks for

feedback and monitors development.

1.8 Theories of Motivation

There are several Theories of Motivation that are developed to explain the

concept of “Motivation”. The motivation is a drive that forces an individual to

work in a certain way. It is the energy that pushes us to work hard to accomplish

the goals, even if the conditions are not going our way.

With the establishment of human organizations, people tried to find out the

answer to, what motivates an employee in the organization the most. This gave

birth to several content theories and process theories of motivation.

The content theories deal with “what” motivates people, whereas the process

theories deal with, “How” motivation occurs.

Thus, theories of motivation can be broadly classified as:

A. Content Theories

The content theories find the answer to what motivates an individual and

is concerned with individual needs and wants. Following theorists have

given their theories of motivation in content perspective:

1. Maslow’s Need Hierarchy

Maslow has given a framework that helps to understand the

strength of needs and how a person moves from one need to

the other when the basic needs are fulfilled. These needs are

arranged in the hierarchical form as shown below:

 i. Physiological Needs: These needs are the basic needs, a

prerequisite for the survival of the human being. Air, water, food,

sleep are the physiological needs which must be met, in order to

go further in the hierarchy. If these needs are not met, then an

individual will be highly motivated to satisfy these first, while the

other levels of needs would provide him with a little motivation.

ii. Safety Needs: Once the physiological or basic needs are

fulfilled, the other needs become important. The next comes the

safety or security needs. People begin to feel the need for a safer

place to live in, i.e. shelter, safe neighbourhood, steady

employment, etc. Thus, at this stage, the need for self-

preservation i.e. a need for being free of physical danger,

emerges.

iii. Social Needs: After the first two needs of the hierarchy are met,

people tend to move further and seeks to satisfy their social needs.

Since a human being is a social animal who lives in the society,

has an urge to belong to and be accepted by all. The need for love,

affection, and belonging emerges at this stage. Thus, the

relationships are formed at this level.

iv. Esteem Needs: Once the above needs are fulfilled, an individual

strives to achieve the esteem needs, concerned with self-respect,

self-confidence, a feeling of being unique, social recognition,

personal worth, etc. On the satisfaction of these needs, an

individual feels the sense of power and control and becomes

more confident.

v. Self-Actualization Needs: The next and the final need on the

Maslow’s Need Hierarchy is the Self Actualization Need. It refers

to the need to maximize one’s potential. These needs are related

to the development of one’s intrinsic capabilities that can be

utilized in different real life situations. It can be rephrased as, a

desire of becoming, what one is capable of becoming.

Thus, according to this theory, the behaviour of an individual is

determined by his strongest needs, i.e. a person is motivated to

fulfil the unsatisfied needs.

2. Herzberg’s Motivation-Hygiene Theory

The Herzberg’s Motivation-Hygiene Theory is given by

Fredrick Herzberg and his associates, who studied the

variables that are perceived to be desirable to achieve goals

and the undesirable conditions to avoid.

The first set of job conditions has been referred to

as maintenance or hygiene factor, wherein the same job

conditions provide the same level of dissatisfaction, in case

the conditions are absent, however, their presence does not

motivate in a strong way.

The second set of job conditions is referred to

as motivational factors, which primarily operate to build

strong motivation and high job satisfaction, but their absence

does not result in strong dissatisfaction.

 i. Hygiene Factors:

Herzberg identified ten maintenance or hygiene factors that are not

intrinsic parts of a job, but are related to the conditions in which the job

has to be performed. These are company policy and administration,

technical supervision, job security, working conditions, interpersonal

relationship with peers, subordinates and supervisors, salary, job security,

personal life, etc.

ii. Motivational factors:

These factors have a positive effect on the functioning of the employees

in the organization. There are six factors that motivate employees:

Achievement, Recognition, Advancement, Work-itself, Possibility of

growth and Responsibility. An increase in these factors satisfies the

employees and the decrease in these will not affect the level of

satisfaction.

Thus, Herzberg’s Motivation-Hygiene Theory studied the variables which

were responsible for the level of satisfaction and had been applied in the

industry that has given several new insights

 3. McClelland’s Needs Theory

McClelland’s Needs Theory was proposed by a

psychologist David McClelland, who believed that the

specific needs of the individual are acquired over a period of

time and gets molded with one’s experience of the life.

McClelland’s Needs Theory is sometimes referred to

as Three Need theory or Learned Needs Theory.

i. Need for Power (n-pow): What is Power? Power is the ability

to induce or influence the behaviour of others. The people with

high power needs seek high-level positions in the

organization, so as to exercise influence and control over

others. Generally, they are outspoken, forceful, demanding,

practical/realistic-not sentimental, and like to get involved in

the conversations.
ii. Need for Affiliation (n-affil): People with high need for

affiliation derives pleasure from being loved by all and tend to

avoid the pain of being rejected. Since, the human beings are

social animals, they like to interact and be with others where

they feel, and people accept them. Thus, people with these

needs like to maintain the pleasant social relationships, enjoy

the sense of intimacy and like to help and console others at

the time of trouble.

iii. Need for Achievement (n-ach): McClelland found that some

people have an intense desire to achieve. He has identified

the following characteristics of high achievers:

 High achievers take the moderate risks, i.e. a calculated

risk while performing the activities in the management

context. This is opposite to the belief that high

achievers take high risk.

 High achievers seek to obtain the immediate feedback

for the work done by them, so as to know their progress

towards the goal.

 Once the goal is set, the high achiever puts himself

completely into the job, until it gets completed

successfully. He will not be satisfied until he has

given his 100% in the task assigned to him.

4. Alderfer’s ERG Theory

Alderfer’s ERG Theory is the extension of Maslow’s

Needs Hierarchy, wherein the Maslow’s five needs are

categorized into three categories, Viz. Existence

Needs, Relatedness Needs, and Growth Needs.

This led to the formation Alderfer’s ERG theory, which

comprises of the condensed form of Maslow’s needs.

i. Existence Needs: The existence needs comprises of all those needs

that relate to the physiological and safety aspects of human beings and

are a prerequisite for the survival. Thus, both the physiological and

safety needs of Maslow are grouped into one category because of their

same nature and a similar impact on the behaviour of an individual.

ii. Relatedness Needs: The relatedness needs refer to the social needs,

that an individual seeks to establish relationships with those for whom

he cares. These needs cover the Maslow’s social needs and a part of

esteem needs, derived from the relationship with other people.

iii. Growth Needs: The growth needs cover Maslow’s self-actualization

needs as well as a part of esteem needs which are internal to the

individual, such as a feeling of being unique, personnel growth, etc.

Thus, growth needs are those needs that influence an individual to

explore his maximum potential in the existing environment.

B. Process Theories

The process theories deal with “How” the motivation occurs, i.e. the

process of motivation and following theories were given in this context:

1. Vroom’s Expectancy Theory

Vroom’s Expectancy Theory was proposed by Victor. H. Vroom, who

believed that people are motivated to perform activities to achieve some

goal to the extent they expect that certain actions on their part would help

them to achieve the goal.

The algebraic representation of Vroom’s Expectancy theory is:

Motivation (force) = ∑Valence x Expectancy

 i. Valence:

It refers to the value that an individual places on a particular outcome or a

strength of an individual’s preference for the expected rewards of the

outcome. To have a positive valence, one should prefer attaining the

outcome to not attaining it. For example, if an employee gets motivated

by promotions, then he might not value offers of increased incentives.

The valence is zero if an individual prefers not attaining outcomes to

attaining it. In the above example, an employee agrees with the increased

incentives.

ii. Instrumentality: Another major input into the valence is the

instrumentality of first level outcome in obtaining the second level

outcome, i.e. a degree to which the first level leads to the second level

outcome. For example, suppose an employee desires promotion and he

feel that superior performance is a key factor to achieve the goal. Thus,

his first level outcomes are superior, average and poor performance and

the second level outcome is the promotion.

iii. Expectancy: Expectancy, another factor that determines the motivation,

refers to the probability that a particular action will lead to the desired

outcome. The expectancy is different from the instrumentality in the

sense; it relates efforts to the first level outcome, whereas the

instrumentality relates to first and second-level outcomes to each other.

2. Adam’s Equity Theory

The Adam’s Equity Theory posits that people maintain a fair relationship

between the performance and rewards in comparison to others. In other

words, an employee gets de-motivated by the job and his employer in

case his inputs are more than the outputs.

The Adam’s Equity Theory was proposed by John Stacey Adams, and is

based on the following assumptions:

 Individuals make contributions (inputs) for which they expect

certain rewards (outcomes).

 To validate the exchange, an individual compares his input and

outcomes with those of others and try to rectify the inequality.

There are three types of exchange relationships that arise when an

individual input/outcomes are compared with that of the other

persons.
i. Overpaid Inequity: When an individual perceives that his

outcomes are more as compared to his inputs, in relation to

others. The overpaid inequity can be expressed as:

ii. Underpaid Inequity: When an individual perceives that his

outcomes are less as compared to his inputs, in relation to

others. The Underpaid Equity can be expressed

as:

iii. Equity: An individual perceives that his outcomes in relation to

his inputs are equal to those of others. The equity can be

expressed as

Thus, Adam’s equity theory shows the level of motivation

among the individuals in the working environment.

3. Reinforcement Theory of Motivation

The Reinforcement Theory of Motivation was proposed by B.F.

Skinner and his associates. This theory posits that behavior is the function

of its consequences, which means an individual develops a behavior after

performing certain actions.

The reinforcement theory of motivation is based on the “Law of

Effect” concept, i.e. an individual is likely to repeat those actions having

the positive consequences, and will avoid those behaviors that result in

negative or unpleasant outcomes. The behaviors that elicit consequences

is called as operant behavior and reinforcement theory work on the

relationship between the operant behavior and the associated

consequences and, therefore, is often called as Operant Conditioning.

Operant conditioning means, the change in the behavior caused due to the

reinforcement (Positive reward or punishment) given after the response.

The reinforcement theory lay emphasis on the environmental factors that

shape the behaviors.

Thus, the reinforcement theory of motivation mainly focuses on what

happens when an individual takes some action. It is observed, that people

tend to repeat those activities which gives them pleasure and avoid the

activities with negative consequences.

4. Carrot and Stick Approach of Motivation

The Carrot and Stick Approach of Motivation is a traditional

motivation theory that asserts, in motivating people to elicit desired

behaviour’s, sometimes the rewards are given in the form of money,

promotion, and any other financial or non-financial benefits and

sometimes the punishments are exerted to push an individual towards the

desired behaviour.

The Carrot and Stick approach of motivation is based on the principles of

reinforcement and is given by a philosopher Jeremy Bentham, during the

industrial revolution. This theory is derived from the old story of a

donkey, the best way to move him is to put a carrot in front of him and

jab him with a stick from behind. The carrot is a reward for moving while

the stick is the punishment for not moving and hence making him move

forcefully.

Thus, an individual is given carrot i.e. reward when he performs

efficiently and is jabbed with a stick or is given a punishment in case of

non- performance. While giving the punishments, the following points

need to be taken care of:

 i. Punishment is said to be effective in modifying the behaviour if an

individual selects a desirable alternative behaviour.

ii. If the above condition does not occur the behaviour will be

temporarily suppressed and may reappear after the punishment is

over.

iii. The punishment is more effective when given at the time the

undesirable behaviour is actually performed.

iv. The management should make sure, that punishment is properly

administered and does not become a reward for the undesirable

behaviour.

Thus, carrot and stick approach of motivation should be applied

carefully such that, both have the positive motivational effect on

the people in the organization.

1.9 Employee Motivation in IT sector

I. TCS

TCS try to keep motivate their employees by a good work

culture in the organization and compensating well with

the employee’s.
II. Amazon
AMAZON motivates employees to do work hard and work

promptly towards achieving the future goals by providing career

growth opportunities, positive work environment, etc.

 CHAPTER - 2

LITERATURE REVIEW
2.1 Literature Review

Author/Researcher Title of the Objectives & Gap/s

Article/Study Outcome Identified

Irum Shahzadi and Impact of Employee To study factors that The data was

Ayesha Javed Motivation on are influencing collected based on

Employee employee motivation old questionnaires

(2014)
Performance. and find the effect of and literatures.

employee motivation

on employee

performance.

Nnaeto Japhet Impact of Reason for the

To identify the
Olusadum & Ndoh motivation on dissatisfaction of the
difference and
Juliet Anulika employee employees were not
relationship between
(2018) performance: A clear from the
performance
Study of Alvan collected data.
appraisal and
Ikoku Federal
performance
College of
management.
Education
Bono, J. E. (2001) Relationship of To understand and As it was small

core self- analyse the employee budget project only

evaluations traits job satisfaction and small sample size

self-esteem, job performance: was targeted and

generalized self- data were collected.

efficacy, locus of

control, and

emotional stability

with job

satisfaction and

job performance:

A meta-analysis.

Ngari Mediating To determine the The impact of

Evelyne,Stephen Effect of effect of task demographic factors

Muathe,James Motivation on identity, skill such as age,

Kilika(2018) Employee variety, autonomy, education and

Performance in feedback and task psychological state

Private Equity significance on of employee could

Firms ,Kenya employee have been also tested

performance in the to determine the

organization. performance as a

result of motivation.

Maja Rozman,Sanja Motivation and To investigate the Majority of the

Treven,Vesna Satisfaction of difference between respondents were

Cancer(2017) Employees in the satisfaction and mostly from the age

Workplace motivation of 26-32 years old.

employees with

different age group.

Quratul-Ain Impact of To identify the The study is

Manzoor(2015) Employees relationship between completely

Motivation on employee motivation theoretical; real time

Organizational and organizational application is not

Effectiveness effectiveness. emphasized.

Jacqueline Mayfield Effective leader talk To analyse the Research needs to

(2018) in work place impact of leaders include more

effective longitudinal and

communication on experimental design

employee’s for broader outcome.

performance at work

place.
 CHAPTER – 3

RESEACH STUY
3.1 Problem Definition

Employees motivation allows management to meet the company's goals

and the motivated employees can also lead to increased productivity and

allow an organisation to achieve higher levels of outputs but if the

employees are not motivated then the employees becomes demotivated

and it is difficult for the organisation to meet its goals.

Hence, the fundamental nature of this study is to find out that what are

the monetary and non- monetary motivational factors that motivates the

employee’s and its impact on the job performance of the employee’s in

the IT Sector.

3.2 Need of the Study

The basic need of the study is to identify the motivational factors and its

impact on employee’s performance as motivation plays a vital role on

employee’s performance and productivity of the organisation.

Hence, a project is conducted to see how different variables motivate

employees and support the organization to improve the performance of

employees.
3.3 Objectives of the Study

1. To study the key factors which are needed to galvanize employees

in the IT Sector.

2. To study the effect of monetary and non-monetary benefits

provided by the organizations on the employee's performance.

3. To assess the relationship between the motivation and performance.

4. To find strategies to enhance the motivation level.

3.4 Hypothesis

There is a positive correlation between the Employee’s Motivation

and Employee’s Performance.

 CHAPTER – 4

RESEARCH METHODOLOGY
1.1 Research Design

The type of research design used in this study is “Descriptive

Research”. Descriptive research design involves summarizing and

organizing of the data so that they can be easily understood.

The main purpose of this descriptive statistics is to provide a brief

summary of the samples. This generally means that the descriptive

statistics is not developed on the basis of probability theory.

DATA SOURCE

1. Primary data

Primary data was collected from the employees of the IT sector

organization by using the close ended self-designed Questionnaire

which as 19 statements on employees motivation.

 2. Secondary data

It is gathered from the internet, journals, past records and reports.

i. Sampling Methodology:

The sampling methodology used is convenient sampling.

ii. Sample size:

The sampling size undertaken for this research is

50 employees of the different organizations comes under IT sector.

iii. Research Tool:

Percentage and correlation using SPSS software is used as a

statistical tool to identify the positive correlation between

employees motivation and employee performance.

 CHAPTER – 5

DATA ANALYSIS AND

INTERPRETATION
5.1 Analysis and Data Interpretation

A. Demographic Information:

1. Analysis:-

Characteristics Frequency Percentage

(Sample
Size=50)
Gender  Female 20 42%
 Male 30 58%
Age  20-30 42 86%
years
 31-40
8 14%
years
 More
than 41 0 -
years
Experience  Less than 14 36%
1 year
 1 to 3
28 44%
years
 3 to 5
years 8 12%
 5 to7
years
 More 0 -
than 7
years
0 -

Table No. 5.1 – Showing the demographic Information about

Respondents
2. Charts Representation:-
 3. Interpretation of Demographic Information:-

From the above analysis and charts representation, it is concluded that 58% of
employees were Male and 42% were Female’s. Whereas, 86% of employees
were in the age group of 20-30 years and others 14% were in 31-40 years of age
group. 36% of employees had less than 1 years of experience while, 44% had 1
to 3 years of experience and remaining 12% had experience of more than 3
years in the IT sector.
B. Employees Motivation Factors:-

4. Is motivation required at Workplace?

Particulars Frequency Percentage (%)

Yes 38 78

No 4 6

May be 8 16

Total 50 100

Table No. 5.2 - Showing requirement of motivation at

workplace

Chart Representation:
Interpretation:

From study conducted, it was found that majority of the

respondents in the organisation considered that motivation is

required at the workplace. 78% employees said Yes, 6% said

No and 16% employees were on may be side.

2. What is opinion about management system is

interested in motivating the employees’ in your

organization?

Particulars Frequency Percentage (%)

Strongly Agree 21 36

Agree 16 34

Neutral 11 26

Disagree 1 2

Strongly 1 2

Disagree

Total 50 100

Table No. 5.2 – Showing results for management

system interest in motivation

Chart Representation:

Interpretation:

From the study, it is found that, 36% employees were

strongly agree, 34% were agree, 26% were on neutral

side and other 2% are strongly disagreeing for

motivating employees in their organization.

3. What types of incentives motivates you more?

Particulars Frequency Percentage (%)

Monetary 20 40

Non- Monetary 5 10

Both 25 50

Total 50 100

Table No. 5.3 – Showing results for types of

incentives motivates employees

Chart Representation:
Interpretation:

From the study, it is found that, Both Monetary and

Non-Monetary incentives motivates employees which

were 50% of respondents, where 40% employees only

for monetary incentives and remaining 10% were only

for Non-Monetary incentives.

4. What is your satisfaction with present incentives

schemes about your organization?

Particulars Frequency Percentage (%)

Very Satisfied 7 16

Satisfied 31 58

Neutral 7 16

Not Satisfied 4 8

Very 1 2

Dissatisfied

Total 50 100

Table No. 5.4 – Showing results for satisfaction with

present incentives schemes

Chart Representation:

Interpretation:

From the study, it is concluded that, 16% employees

were very satisfied, 58% employees were satisfied,

16% employees were neutral, 8% employees were not

satisfied, and remaining 2% employees were very

dissatisfied for present incentives schemes going in

their organization.
5. What is opinion regarding the company is

showing eagerness in recognizing and

acknowledging employees work?

Particulars Frequency Percentage (%)

Strongly Agree 6 18

Agree 19 38

Neutral 23 40

Disagree 1 2

Strongly Disagree 1 2

Total 50 100

Table No. 5.5 – Showing results for

acknowledgement of employees work

Chart Representation:
Interpretation:

From the study, it was revealed that, 18% respondents

strongly agree, 38% respondents agree, 40%

respondents were on neutral platform, and remaining

2% respondents were disagreeing for showing

eagerness towards recognizing and acknowledging

employees work.

6. What is opinion regarding periodically increases

in the salary?

Particulars Frequency Percentage (%)

Strongly Agree 11 26

Agree 14 32

Neutral 22 36

Disagree 2 4

Strongly Disagree 1 2

Total 50 100

Table No. 5.6 – Showing results for periodically

increases in the salary

Chart Representation:

Interpretation:

From the study, it is concluded that 26% respondents

strongly agree, 32% respondents agree, 36%

respondents were on neutral platform, and remaining

6% respondents were disagreeing for periodically

increment in their salary.

7. What is opinion regarding Job Security

existing in the company?

Particulars Frequency Percentage (%)

Strongly Agree 11 28

Agree 21 36

Neutral 15 30

Disagree 2 4

Strongly Disagree 1 2

Total 50 100

Table No. 5.7 – Showing results for Job Security

existing in the company

Chart Representation:
Interpretation:

Further revealed that, 28 % respondents strongly agree,

36% respondents agree, 30% respondents were on

neutral platform, and remaining 6% respondents were

disagreeing for Job Security existing in the company.

8. What is opinion regarding good relation with co-

workers?

Particulars Frequency Percentage (%)

Very Satisfied 20 38

Satisfied 16 30

Neutral 12 28

Not Satisfied 1 3

Very 1 1

Dissatisfied

Total 50 100

Table No. 5.8 – Showing results for good relation

with co-workers
Chart Presentation:

Interpretation:

From the study, it is concluded that, almost 38% of

respondents were very satisfied, 30% of respondents

were satisfied, 28% of respondents were on neutral

side, and remaining 4% were disagreeing for having

good relation with co-workers.

9. What is opinion regarding Effective

Performance Appraisal System using in your

Company?

Particulars Frequency Percentage (%)

Strongly Agree 11 24

Agree 15 34

Neutral 21 38

Disagree 2 3

Strongly Disagree 1 1

Total 50 100

Table No. 5.9 – Showing results for Effective

Performance Appraisal System using in the

Company
Chart Presentation:

Interpretation:

Further revealed that, 24 % respondents strongly agree,

34% respondents agree, 38% respondents were on

neutral platform, and remaining 4% respondents were

disagreeing for presence of Effective Performance

Appraisal System in their company.

10. What is opinion regarding Effective

Promotional Opportunities in your job?

Particulars Frequency Percentage (%)

Strongly Agree 9 20

Agree 23 42

Neutral 15 32

Disagree 2 4

Strongly Disagree 1 2

Total 50 100

Table No. 5.10 – Showing results for Effective

Promotional Opportunities
Chart Representation:

Interpretation:

From study, it is concluded that, 20 % respondents

strongly agree, 42% respondents agree, 32%

respondents were on neutral platform, and remaining

6% respondents were disagreeing for presence of

Effective Promotional Opportunities in the job.

11. Are the Performance Appraisal activities helpful

for getting motivated in your company?

Particulars Frequency Percentage (%)

Yes 33 65

No 3 6

Sometimes 14 27

Never 1 2

Total 50 100

Table No. 5.11 – Showing results for Performance

Appraisal activities

Chart Representation:
Interpretation:

From the study conducted it is found out that almost

65% of respondents were finding performance appraisal

activities helpful for getting motivated and 27 % are

agreeing on that sometimes it is helpful during the

working period in an organization.

12. Are the Career Development opportunities

helpful for employees to get motivated?

Particulars Frequency Percentage (%)

Yes 33 84

No 3 3

May be 14 12

Never 1 1

Total 50 100

Table No. 5.12 – Showing results for Career

Development opportunities for motivation

Chart Representation:

Interpretation:

From the conducted survey, it is found out that, most of

the respondents were said yes for finding career

development opportunities helpful to get motivated

whereas, 12% of them thinks that may be they feel

motivated at some point.

13. Which of the factors motivates you the most?

Interpretation:

Following are the factors which motivates employees

the most:

 Salary Increase - 24%

 Promotion - 19%

 Paid Vacations - 9%

 Paid Leaves - 9%

 Motivational Talks - 13%

 Recognition - 13%

 Incentives - 12%
 17. Have you been promoted at work in the last two

years?

Particulars Frequency Percentage (%)

Yes 32 56

No 18 44

Total 50 100

Table No. 5.13 – Showing results for promotion of

employees in the last two years

Chart Representation:
Interpretation:

It is founded that in the past 2 years, 56% of employees

were gets promoted while 44% were on same position

in an IT sector company.

18. Is the Management involves you in decision

making which is connected to your department?

Particulars Frequency Percentage

(%)

Yes 29 62

No 7 12

Occasionally 14 26

Total 50 100

Table No. 5.14 – Showing results for involvement of

employees in the decision making

```
Chart Representation:

Interpretation:

From the study, it is found that, 62% of employees were

getting involved in the decision making which are

connected with the department and 26% of employees

are occasionally involved and remaining 12% were not

involve in decision making process in an organization.

19. Do you think that incentives and other benefits

will influence your performance?

Particulars Frequency Percentage

Influence 34 72

Does not Influence 2 6

No opinion 14 22

Total 50 100

Table No. 5.15 – Showing results for providing

incentives and other benefits on the performance

Chart Representation:
Interpretation:

It is concluded that, about 72% of respondents gets

influenced for improving their performance by getting

incentives and other benefits from the company,

whereas, 6% does not get influenced and other 22%

respondents had no opinion on the particular question.

5.2 Hypothesis Testing

The correlation between the employee’s motivation and employee’s

performance is positive or not?

Table No. 5.15: Showing the correlation between employee performance and

motivational factors

Particulars Salary Promotion Motivational Recognition Incentives

Talks

Employee

Performance 0.24 0.19 0.13 0.13 0.12

Pearson Sig. 0.04 0.03 0.03 0.02 0.01

N 50 50 50 50 50

Correlation Positive Positive Positive Positive Positive

Conclusion hypothesis hypothesis hypothesis hypothesis hypothesis

Proved Proved Proved Proved Proved

Analysis:

From the above correlation table, it is found that, the significance value of

salary, promotion, motivational talks, recognition and incentives with respect to

employee’s performance is less than 0.05 and it is positively correlated. Hence,

there is a positive correlation between employee’s motivational factors (salary,

promotion, motivational talks, recognition, incentives) and employee’s

performance in the organisation. As a result of this the hypothesis is accepted.

Interpretation:

Using SPSS software correlation was found between the employee’s

motivational factors such as salary, promotion, motivational talks, recognition

and incentives for the work performed and employee’s performance and from

the results it was proved that there is a positive correlation and significant

relation between the motivational factors and employee’s performance.

CHAPTER – 6

CONCLUSION
6.1 Conclusion of the Study

This study was carried at different organizations which comes under IT

sector. Various aspects of the organization related to employee motivation such

as salary, increments, promotion, recognition, etc. were studied as part of

project.

A study was also carried out on the topic “An Analysis on Employees

Motivation and Its Impact on Employees Performance in the IT sector”.

The study was conducted to understand the various motivational factors

implemented in organisation in order to motivate the employees.

The most important objective of the study were to analyse about the various

factors leading to motivation of employees and to assess the relationship

between the motivation and performance at different organizations which comes

under IT sector.

Using SPSS software correlation was found between the employee’s

motivational factors such as salary, promotion, motivational talks, recognition

and incentives for the work performed and employee’s performance and from

the result it was proved that there exist a positive correlation and also significant

relation among the motivational factors and employee’s performance.

Hence, the major findings of the study are the motivational factor such as

salary, promotion, motivational talks, recognition and incentives as a

significant relation on the employee’s performance at organisation

Overall the study was very helpful. It helped for understanding various

employees’ motivational factors aspects of the organization. It enhanced my

knowledge about work culture and style of an organization and gave me

practical exposure to the theoretical aspects learned.

CHAPTER – 7

LIMITATION
7.1 Limitations of the Study

1. The study was restricted to 50 sample size only.

2. Process of Primary data collection is time consuming.

3. The study was limited to short period only.

4. It was difficult to fill the form from the respondents and gain

information as they were busy with their work.

CHAPTER – 8

FINDINGS
8.1 Findings of the Study

1. Most of the employees agreed on that the motivation is required at

the workplace.

2. Monetary as well as Non-Monetary both are important for the employees.

3. Companies are showing interest in recognizing and acknowledging

employees work at the workplace.

4. Most of the employees agreed on the periodically increment in the

salary in their organization.

5. Career Development Opportunities, Job Securities in the IT

sector companies are found out on priority basis.

6. Most of the employees are satisfied on the good relation with their co-

worker in an organization.
CHAPTER – 9

SUGGESTIONS
9.1 Suggestions

Following are the some of the suggestions to the companies who comes under

IT sector, based on the findings and conclusion of this study on employee

motivation and its impact on employee’s performance for the purpose of

increasing the performance of the employees in organisation.

1. Promote internal employees rather than external recruitment.

2. Encourage open end communication.

3. Provide hybrid mode facility to the employees’.

4. Arrange more Management Games for employees’ involvement.

5. Provide employees’ Professional Development Training for

enhancement of their Professional Skills.

CHAPTER – 10

BIBLIOGRAPHY
10.1 Bibliography

1. https://businessjargons.com/motivation.html

2. https://www.academia.edu/33931545/THEORIES_OF_MOTIVA

TION_THEORIES_OF_MOTIVATION

3. https://sintelly.com/articles/motivation-theory-top-motivation-

theories-explained

4. https://www.yourarticlelibrary.com/motivation/top-8-

characteristics-of-motivation-business-management/5377

5. https://qsstudy.com/characteristics-motivation/

6. https://www.hindawi.com/journals/bmri/2016/3815976/

7. https://www.thehumancapitalhub.com/articles/Employee-

Motivation
8. https://www.forbes.com/sites/forbescoachescouncil/2019/12/16/em

ployee-motivation-it-really-does-matter/

9. https://www.academia.edu/32407094/EMPLOYEE_MOTIVATIO

N_A_STUDY_ON_MODERN_WORKPLACE_MOTIVATION

10. https://www.ccl.org/articles/leading-effectively-articles/3-ways-to-

boost-employee-motivation/

11.https://www.researchgate.net/publication/343236413_Employee_

Motivation
ANNEXURE
11.1 Questionnaire of employee’s motivation and employee’s

performance survey

(Note: This research is part of MBA academic project. Identity of

the respondent will be kept confidential and information will not be

disclosed anywhere.)

A. Demographic Information

1. Name (optional): .....................................................

2. Age:

 20-30 years

 31-40years

 Others

3. Gender:

 Male

 Female

4. Company Name:

 TCS

 Infosys

 HCL Technologies

 Cognizant

 Others
5. Designation:

 Executive

 Functional

 Assistant

 Senior

 Junior

 Manager

 Associate

 Others

6. Experience:

 Less than 1 year

 1 to 3 years

 3 to 5 years

 5 to 7 years

B. Factors that Motivates Employees

1. Is Motivation required at Workplace?

 Yes

 No

 Maybe
2. What is opinion about management system is

interested in motivating the employees’ in your

organization?

 Strongly Agree

 Agree

 Neutral

 Disagree

 Strongly Disagree

3. What types of incentives motivates you more?

 Monetary (Financial) Incentives

 Non- Monetary (Non -Financial) Incentives

 Both

4. What is your satisfaction with present

incentives schemes about your organization?

 Very Satisfied

 Satisfied

 Neutral

 Not Satisfied

 Very Dissatisfied
5. What is opinion regarding the company is showing

eagerness in recognizing and acknowledging

employees work?

 Strongly Agree

 Agree

 Neutral

 Disagree

 Strongly Disagree

6. What is opinion regarding periodically increases

in the salary?

 Strongly Agree

 Agree

 Neutral

 Disagree

 Strongly Disagree
7. What is opinion regarding Job Security existing

in the company?

 Strongly Agree

 Agree

 Neutral

 Disagree

 Strongly Disagree

8. What is opinion regarding good relation with co-

workers?

 Very Satisfied

 Satisfied

 Neutral

 Not Satisfied

 Very Dissatisfied
9. What is opinion regarding Effective Performance

Appraisal System using in your Company?

 Strongly Agree

 Agree

 Neutral

 Disagree

 Strongly Disagree

10. What is opinion regarding Effective Promotional

Opportunities in your job?

 Strongly Agree

 Agree

 Neutral

 Disagree

 Strongly Disagree

11. Are the Performance Appraisal activities helpful

for getting motivated in your company?

 Yes

 No

 Sometimes

 Never
12. Are the Career Development opportunities helpful

for employees to get motivated?

 Yes

 No

 Maybe

 Never

13. Which of the factors motivates you the most?

 Salary Increase

 Promotion

 Paid Vacations

 Paid Leaves

 Motivational Talks

 Recognition

 Incentives

14. Have you been promoted at work in the last two

years?

 Yes

 No
15. Is the Management involves you in decision making

which is connected to your department?

 Yes

 No

 Occasionally

16. Do you think that incentives and other benefits will

influence your performance?

 Influence

 Does not Influence

 No Opinion