Roopa Project

A STUDY ON MONETARY INCENTIVES AND EMPLOYEE
PERFORMANCE
Project work submitted to the

UNIVERSITY OF MADRAS
In Partial Fulfilment for the award of the degree of
MASTER OF COMMERCE
Submitted by
ROOPAVATHY BAKTHAVACHALAM
Register No: 531900334
Under the Supervision and guidance of
MS.P.SELVI, M.COM.,M.BA.,NET.,
ASSISTANT PROFESOR
POST GRADUATE DEPARTMENT OF COMMERCE
NAZARETH COLLEGE OF ARTS AND SCIENCE

AFFLIATED TO UNIVERSITY OF MADRAS
REACCREDITED WITH ‘B’ GRADE BY NAAC
AVADI, CHENNAI - 600062
MARCH 2021
1
CERTIFICATE
This is to certify that the project work entitled “A STUDY MONETARY

INCENTIVES AND EMPLOYEE PERFORMANCE”, submitted by
ROOPAVATHY BAKTHAVACHALAM Reg. No. 531900334 in partial fulfilment of
the requirement for the award of the degree of Master of Commerce, is based on the
result of research work carried out by her under my guidance and supervision. This is
the original work of the candidate. In my opinion, the work is fit for the award of the
degree of “Master of Commerce” University of Madras, during the year 2020-2021.
HEAD OF THE DEPARTMENT SIGNATURE OF THE GUIDE
PRINCIPAL EXTERNAL
EXAMINER
2
DECLARATION
This is to certify that project work entitled “MONETARY INCENTIVES AND

EMPLOYEE PERFORMANCE”, submitted for the award of degree of Master of
Commerce, University of Madras is the outcome of my personal and original research
work done by me under the guidance of MS. P. SELVI, M.COM., M.BA., NET., and
no part of this work has been submitted for any Degree, Diploma, and fellowship of
other academic courses.
Roopavathy Bakthavachalam
DATE:
PLACE: REDHILLS
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ACKNOWLEDGEMENT
First and foremost I am grateful to God for the good health and wellbeing that
were necessary to complete my research work.
I acknowledge my profound gratitude to our Secretary Mr. A.N. HENRY
MARIS, M.TECH, PGDHRM. Nazareth College of Arts and science, Kovilpathagai,
Chennai-62 for permitting me to carry out my project work successfully.
I express my sincere thanks to Principal Dr.E.MARY ANGELINE
SANTHOSAM, MSW (SW), PGDHRM, NET, Ph.D. for allowing me to carry on the
project work in this esteemed institution.
I extend my sincere thanks to Vice Principal Ms.E.MANO RANJTHAM,
M.Sc. (CS), M.SC., (Psy), MCA, M.Phil.
I am extremely grateful to MS. S.DHIVYA., M.com., NET., MBA., Head in-
charge Department of Commerce for providing the effective initiation and valuable
suggestion to do and complete this project.
I would like to express my special thanks to my Guide Ms.P.SELVI .M.Com.,
NET., M.B.A., Assistant professor, PG Department of Commerce for being a
tremendous mentor for my research work. His advices on both project works as well as
on my career have been price less.
I express my sincere thanks to all the faculty members of PG Department of
Commerce for their guidance which helped me in completing the project successfully.
I am indebted to the entire respondents for supporting me to complete my
project work which has helped me in providing the necessary information for preparing
this project.
I owe my thanks to the University of Madras for creating this invaluable
opportunity for the students of PG Department of Commerce for having included the
project study in this curriculum.
Finally, I express my thanks to my parents and friends and all my well-wishers
who had extended their support to me toward performing this project study in a
successful manner.
Roopavathy Bakthavachalam
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LIST OF CONTEXT
CHAPTERS TITLE PAGE NO
I INTRODUCTION 8-13
II REVIEW OF LITERATURE 13-19
III CONCEPTUAL FRAMEWORK 20-28
IV COMPANY PROFILE 29-38
V RESEARCH METHODOLOGY 39-43
VI DATA ANALYSIS AND INTERPRETATION 44-71
FINDINGS, SUGGESTIONS AND

VII 72-77
CONCLUSION
BIBLIOGRAPHY 78-79
ANNEXURE 80-81
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LIST OF TABLES
TABLE PAGE
NO. TITLE NO.
6.1 GENDER OF THE RESPONDENTS 44

6.2 AGE OF THE RESPONDENTS 45
6.3 EDUCATIONAL QUALIFICATION OF THE 46
RESPODENTS
6.4 OCCUPATION OF THE RESPONDENTS 47
6.5 MARTIAL STATUS OF THE RESPONDENTS 48
6.6 EXPERIENCE OF THE RESPONDENTS 50
6.7 MONETARY INCENTIVES OF THE RESPONDENTS 51
6.8 EXTRA ALLOWANCES OF THE RESPONDENTS 52

6.9 MEDICAL FACILITY OF THE RESPONDENTS 53
6.10 AMOUNT OF BONUS OF THE RESPONDENTS 54
6.11 SATISFIED WITH EMPLOYEE WELFARE FACILITY 55

6.12 AUTOMOBILE FACILITY OF THE RESPONDENTS 56
6.13 FREQUENCY OF BONUS OF THE RESPONDENTS 57
6.14 PERFORMANCE BONUS IS BETTER THAN 57
RECOGNITION
6.15 CHI-SQUARED (X2) TEST SHOWING THE RESULT OF 58
HYPOTHESIS ONE
6.16 COMPUTATION OF CHI-SQUARE TEST STATISTIC 62

FOR HYPOTHESIS ONE
6.17 CHI-SQUARED (X2) TEST SHOWING THE RESULT OF 66

HYPOTHESIS TWO
6.18 COMPUTATION OF CHI-SQUARE TEST STATISTIC 68
FOR HYPOTHESIS TWO

6.19 ANOVA 71
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LIST OF CHART
TABLE PAGE
NO. TITLE NO.
6.1 GENDER OF THE RESPONDENTS 44
6.2 AGE OF THE RESPONDENTS 45
6.3 EDUCATIONAL QUALIFICATION OF THE 47

RESPODENTS
6.4 OCCUPATION OF THE RESPONDENTS 48
6.5 MARTIAL STATUS OF THE RESPONDENTS 49
6.6 EXPERIENCE OF THE RESPONDENTS 50
6.7 MONETARY INCENTIVES OF THE RESPONDENTS 51
6.8 EXTRA ALLOWANCES OF THE RESPONDENTS 52
6.9 MEDICAL FACILITY OF THE RESPONDENTS 53
6.10 AMOUNT OF BONUS OF THE RESPONDENTS 54
6.11 SATISFIED WITH EMPLOYEE WELFARE FACILITY 55
6.12 AUTOMOBILE FACILITY OF THE RESPONDENTS 56
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A STUDY ON MONETARY INCENTIVES AND EMPLOYEE PERFORMANCE
CHAPTER I
1.1 INTRODUCTION:
The purpose of the study was to establish the relationship between monetary
incentives and employee performance in G UTILITY SERVICES Private Limited. The
research objectives were; to establish the level of employee performance, to establish the
relationship between the monetary incentives and employee performance and to
establish the monetary incentives used in G UTILITY SERVICES Private Limited.
The above mentioned objectives were achieved using stratified sampling and simple
random sampling to select respondents. A sample size of 80 respondents was taken basis
on the proportion of 50% on each stratum depending on their respective samples. The
appropriate design which was used to collect data was descriptive research design
because it describes both qualitatively and quantitatively.
From the study it was found that the Company offers a number of incentives such as
salaries, allowances, bonuses, air time and lunch allowances. Employee performance
findings indicated that they had improved as evidenced by reports of achieved targets of
2008-2010. The relationship between monetary incentives and employee performance
was strong-positively relationship of 0.99.
The researcher made a number of recommendations that; pay should be increased to

enable the workers meet their economic obligations and making employees being more
committed to the company, employee development programs like training and
promotions should be adequately implemented, working conditions should be improved
upon for example the supervisors should be loosen of the harsh attitudes towards lower
level workers and punishment should be proportional to errors committed, employees
should be allowed to participate in decision making especially decisions that affect them
and a two way communication should be encouraged in the organization. Complaints
received from employees should be responded to.
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1.2 MONETARY INCENTIVES:
Monetary incentives refer to the exchange prices for labour. They are the base
payments which employers use to compensate time and effort spent by employees
towards attaining organizational goals.
Monetary incentives can be understood as payment packages that individual workers

earn by virtue of their employment by the organization. Generally monetary incentives
are economic benefits given to employees for the services they render to the
organization. Performance is defined as the ability to meet the set targets in the
organization.
Employee performance is defined as how an employee fulfills their job duties and
executes their required tasks. It refers to the effectiveness, quality, and efficiency of their
output. Performance also contributes to our assessment of how valuable an employee is
to the organization.
“Incentive” plays the key role of motivator in any kind of organization be it production
or service sector. It can add to the efficiency level of any employee and create a desire
amongst the employees to give their best to the organization by putting in more energy
and working with better accuracy. These concepts of “incentive”, “reward” and
“recognition” can be aptly applied to any sector be it production or service sector.
‘Monetary incentives’ as the name itself explains is the system of giving rewards
directly in the form of cash by giving away payments or additional benefits bonuses etc.
Human resourse is the most valuable asset of any organization to be cherished and
groomed in order to achieve the desired optimization by the firm. Hence, the success of
any organization depends heavily on the performance of its employees. Thus, any
factors existing in the organization that could affect the performance of the employees
cannot be ignored.
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1.3 IMPORTANCE OF THE STUDY
Income has been accepted as a fundamental way to obtain enjoyable wants of folks.
Income can be helpful to satisfy the interpersonal requirements simply by possessing
different material objects. Thus, income besides paying subconscious requirements also
fulfills the particular safety measures and interpersonal requirements.
Money related impetuses considered as to be the foundation of today's representative

inspiration and transforms administration agendas. The rationale is basic as well as
direct- alter the money related motivations and the craved conduct will happen. The
hypothetical premise for cash as a powerful inspiration is all around investigated. By and
large, a few studies have demonstrated that cash is compelling in drawing in, rousing,
and holding workers, and making a superior society.
Money related motivators encompass an affinity to be supreme when there is a

reasonable plus swift causal bond among a person’s deed with the required result, and
when the preferred result is efficiently quantifiable.
Financial motivating forces are powerful in promising improved agreement

movements, for instance, incentivizing security machinists (independently or like
clusters) to tender safeguard substances, or in speculation companies. At the same time,
in different circumstances, they may be counterproductive.
Monetary motivators can likewise decrease wanted social conduct, for example,
cross-unit joint effort. In a study conducted in 2002, “Ernst Fehr of the University of
Zurich and Armin Falk of the University of Bonn” demonstrated that financial
motivators focused on advancing good conduct might accomplish the inverse and,
indeed, demoralize ethical conduct. Financial motivators utilized improperly can change
the desires of what individuals consider good conduct. At the point when money related
impetuses supplant good motivating forces.
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1.4 STATEMENT OF THE PROBLEM:
G UTILITY SERVICES Private Limited has tried to create a motivating
environment for its workers through putting up monetary incentives such as allowances,
bonuses, payments of salaries and wages in order to motivate them work towards the set
targets but the poor incentive system of the company like delays in payments has led to
demotivated work force leading to the poor performance levels of employees hence the
company not achieving most of its targets in time.
1.5 OBJECTIVES OF THE STUDY:

PRIMARY OBJECTIVE:
To study the employees opinion towards the recruitment and selection process of
G UTILI TY SERVICES
SECONDARY OBJECTIVE:
 A study on monetary incentives and employee performance followed by G
UTILI TY SERVICES.
 To analyse the effectiveness of on monetary incentives on employee performance.
 The study is to find satisfactory level of employees towards various factors of
monetary incentives.
 To find out valuable suggestions.
 To enquire the new technology/techniques adopted by the company.
 To analyse relevant strategies for the employee performance.
1.6 HYPOTHESIS:
1.6.1 HYPOTHESIS 1
H0: : There are no significant differences among performance incentives used to
encourage employees
H1: There are significant differences among performance incentives used to encourage
employees
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1.6.2 HYPOTHESIS 2
H0: There are no significant effects of financial performance incentives on employee
efficiency G UTILITY SERVICES Private Limited
H1:There are significant effects of financial performance incentives on employee
efficiency in G UTILITY SERVICES Private Limited.
1.7 SCOPE OF THE STUDY:
1.7.1 Geographical scope
The study was carried out at G UTILITY SERVICES Private Limited head
offices along Sriperumbatur road because it had the necessary data for the study.
1.7.2 Content scope
The study focused on monetary incentives as an independent variable and

employee performance as the dependent variable.
1.7.3 Time Scope
The researcher considered records relating to the monetary incentives and the
employee performance levels in G UTILITY SERVICES Private Limited from the
periods of 2008-2011.
1.8 SIGNIFICANCE OF THE STUDY
The study was of importance to the organizations in understanding the

relationship between the monetary incentives and employee performance.
The research was of useful to the future researchers on monetary incentives as a

form of motivating factor to employee performance.The study was to provide the
researcher with more research knowledge and skills in monetary incentives and
employee performance in the company and how to conduct research.
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1.9 LIMITATIONS OF THE STUDY:
• The time period of the study is one months.
• The result of the study may not be generalized for the other organization.
• It was difficult to get the answers from respondents due to work load of employees and
they take so much of time to fill the survey form
CHAPTERIZATION
 The First chapter deals with the general introduction about the topic,
importance of the study statement of the problem, objectives of the study,
hypothesis of the study, scope of the study, need for the study.
 The Second chapter deals with the review of the literature that relates to the
study.
 The Third chapter deals with the conceptual framework like meaning,
definition, concepts of MONETARY INCENTIVES and EMPLOYEE
PERFORMANCE system, importance, process, advantage and disadvantage of
MONETARY INCENTIVES and EMPLOYEE PERFORMANCE system.
 The Forth chapter deals with the profile of the company in detail.
 The Fifth chapter deals with the research methodology, sources of data,
selection of sample respondents, tools used for the study, formulae used, period
of the study and limitations of the study.
 The Sixth chapter deals with the data analysis and interpretations of the study.
 The Seventh chapter deals with the findings of the study, suggestions to the
organization from the study and the conclusion of the study.
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CHAPTER-II
2.1 REVIEW OF LITERATURE
Garba Bala Bello et al. (2017), study on Monetary Rewards and Teacher Performance
in Selected Public Schools in Kano State, Nigeria. The study considered three
dimensions of monetary reward i.e. salary, allowances, benefit to examine the
relationship between monetary rewards and teacher performance in selected public
schools in kano state, Nigeria. The study shows that teacher preferred allowances as top
priority because it accounts for more variation especially in teacher performance.it also
concludes that monetary rewards significantly affect teacher’s performance.
Olayinka C.oloke et al. (2017), study on incentive package, employees productivity

and performance of real estate firms in Nigeria found that there is a powerful
relationship between incentive and organization performance. The study reveals that
employees are not satisfied with the incentives package offered by the majority of real
estate firms in Nigeria. However, it observes that incentives package is not the most
important determinants of employee’s productivity in real estate firms. A weakness with
this explanation is that the researcher failed to mention the types of incentives package
offered by the majority of firms and the reason for dissatisfied by the employees.
Elumah Lucas O et al. (2016), examine the impact of financial and moral incentives on
organizational performance of Nigerian Universities found that there is adequate level of
incentives provided to employees due to which organizational performance is high. The
study concludes that employees choose financial incentives ranked in 1st place while
moral incentives ranked in 2nd place.
Hasan Salih Suliman Al-Qudah (2016), on impact of moral and material incentives on
employees performance by shows that there is weakness of incentives provided to
employees in Hospitals, but the study reveals, there is no difference approach on moral
and material incentives for employees to improve their performance when it comes to
14
variables like gender, age, education qualifications. He concludes hospital should
develop a strong incentive scheme.
Er. Prakash Kumar Sen (2016), Study on Factor Affecting Motivation of Employees
reveals that employees are happy with the freedom given by management and most of
the employees focus on performance appraisal as a motivator. The study concludes non-
financial reward systems are preferred by the employee.
Dr. Ravi T.S. (2015), study on impact of labor incentives on productivity in selected
Chennai based manufacturing companies, described management should design
incentive scheme in order to motivate employees. He concludes employees had no
objection both monetary and non-monetary incentives. Majority of employees opted
monetary incentives.
Dr. Ashraf and Dr. Md.shabieb (2014), the role of the incentives and reward system in
enhancing employees performance for the employees of the Jordanian tourism and travel
institutions found that the significant impacts on employee performance relay on four
factors i.e., moral incentives, rewards, efficiency of reward system and promotions.
They conclude that most significant impacts on the employee performance are rewards
system while promotion ranked in the last place. Their study, however, was limited in its
application as they choose to focus on less number of respondents as sample size i.e. 44
respondents.
Dr. MM. Jadhav (2014), on effect of monetary incentives in higher education reveals
that the factors like job security, good relationship with principal, pay scale, work itself
and career advancement creates job satisfaction. He also suggests the factors to use skill
and abilities, safe environment also help in job satisfaction of professor. The study
concludes that by considering all factors found that monetary incentives are moderate in
job satisfaction.
15
Sarah Maslen and Andrew Hopkin (2014), “Do incentives work? A qualitative study
of manager’s motivation in hazardous industries”, focuses on to what extant senior
managers are motivated by incentives. He concludes that senior manager and executive
manager choose to evaluate the performance and recognized for that in monetary terms.
If incentives continue to be used as a motivation strategy for financial and business
performance, safety –particularly as it relates to major accidental prevention must also
be incentivized.
Kongala Ramprasad (2013), on motivation and workforce performance in Indian

industries, argues that some managers do not believe in effective motivation of workers
results high performance and goal of the organization can be accomplished and in doing
so, suggest that to understand the critical importance of people in the organization is to
recognize that human element and organization are synonymous. He reported that
current economic and labor market situation in India shows that supply of labor is
greater than its demand. Due to which some managers believe that workers can retain
without being properly motivate since there is scarcity of job in the market. The study,
however, was limited in its application as he did not mention sample size and industries.
He concludes that motivation is one of the strategies that enhance job performance
among workers.
Pankaj Chaudhary (2012), Conducted on Effects of employees’ motivation on

organizational performance, correctly explain that motivation play an important role in
increasing employee job satisfaction, productivity and performance of organization.it
recommended that motivation will work if the right person is made responsible for the
right job or otherwise it will be waste of resources and time. The findings may have
been more applicable if the researcher find out the types of motivation applied in the
organization. He concludes that most of the respondents have satisfactory relationship
with their superiors.
Quratul- Ain Manzoor (2012), Study on Impact of Employees Motivation on

Organizational Effectiveness. Researcher found that recognition and empowerment play
16
an important role in improving employee motivation towards organizational tasks. He
concludes employee motivation and organizational effectiveness are directly related.
James Arrowsmith and Paul Marginson (2010), study on the decline of incentive pay
in British manufacturing. They explained the part of motivating factor of employee
called variable payments systems (VPS) have been declined in UK manufacturing
industries.it also conclude that employee prefer on profit-share bonuses and also called it
as modernization of manufacturing workplace practices and management system.
Nandanwar M.V. et al. (2010), study on intervening factors affecting the relationship
between incentives and employee motivation of pharmaceutical manufacturing
organization in Navi Mumbai expressed in the views of Indian, non- monetary
incentives were preferred over the monetary incentives due to the self- esteem and socio-
cultural values. The incentives in the organization are paid equally to the employee of
the same group. The study reveals that the incentives should be offered on the basis of
employee’s age and gender regardless of his / her designation.
Pardupa Martin (5, October 2010) study on monetary and Non-monetary incentive
measures: which work better in the Czech betting firm reveals that there is a positive
effect of the introduction of the monetary incentives than non-monetary incentives.
K.K Jain et al. (2007), a case study of Indian oil on job satisfaction as related to
organizational climate and occupational stress. The sample size of the study is 158
employees of managerial category in Indian oil corporation Ltd. The findings were the
lower income manager less satisfied than high income manager and the reason is
monetary compensation. It is the most important motivator for employees. The age
factor of the manager does not affect the motivation and job satisfaction. The most
important findings is that employees emotions and attitude feelings towards organization
play an important role in determining performance.
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Dale S. Rose et al. (April 2007), study on a penny for your thoughts: Monetary
Incentives Improve Response Rates for company-sponsored employee surveys. The
findings state that there was a remarkably improvement in employees response with
increased incentives. It concludes that prepaid monetary incentives in employees survey
can reduced the cost of survey research.
Andreas Ortmenn, Ralph Hertwing (2006), study on monetary incentives: usually

neither necessary nor sufficient? Expressed about how the earlier studies on benefits of
monetary incentives per experimental work were misrepresented their analysis as they
call for an empirical analysis of the impact of monetary incentives.
Dalita Balassanian (2006), on incentive system expressed that negative elements can be
overcome by introducing motivational factor. The study show that incentive system
influence employee performance, leads to the organizational productivity.
Debashish Bhattacherjee (2005) discusses the effects of group incentives in an Indian

firm on productivity, pay and employment in large unionized firm in India. This paper
analyze based on group incentive i.e. productivity index plan scheme (PIP) and
departmental incentive scheme (DIS). He found that both the scheme increased worker
productivity and lowered both labor costs per unit output and absenteeism rates. But the
worker gain monetary from productivity index plan scheme (PIP) than departmental
incentive scheme (DIS), as it involved variables work effort. It also mentions that unions
in India that attempt to maximize the wages bill rather than incentive payment scheme.
It concludes that there is free-rider problem with the scheme but did not identify which
of the incentives i.e. PIP or DIS are more effective on solving the free riding problem.
S.E. Bowner and G.B. Sprinkle (2002), study on the effects of monetary incentives on
effort and task performance: theories, evidence and a framework for research. They
choose specific variable i.e., task, environmental and incentive scheme to check the
positive effect of monetary incentives.it concludes monetary incentives effect positively
to employees.
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Virginie Perotin and Andrew Robinson (2000), in an exploratory study on employee
participation and equal opportunities practices: productivity effect and potential
complementarities found a positive overall association between equal opportunities
policies and productivity. It also benefits both female and minority employees in the
workforce.
Banker R. D. et al. (1996), a field study of the impact of a performance based incentive
plan. The authors analyze data for 15 retail outlets over 66 months shows that sales
increase when plan is implemented and performance of employee also improved. The
author did not find out the overall performance of the organization.
H. Barum et al. (1995), study on incentives and provider payment methods, has
realized that there is no single optimal method for paying providers and therefore
desirability of a specific approach depends on the economic, social and institutional
context of a particular setting. They conclude that to create greater incentives for
efficiency, global budgets must be linked to performance.
Chrish J. Berger and Donald P. schwab (1980), studied on pay incentives and pay
satisfaction. The study consists of two types of pay system i.e. hourly based and
performance based. The payment on latter one was delivered on two ways i.e. a
continuous schedule and variable ratio schedule. Their research findings shows
incentives pay does not have direct impact on pay satisfaction and even the variable ratio
does not show negative impact on satisfaction. The study is limited to 77-part time
employees.
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CHAPTER – III
3.1 CONCEPTUAL FRAME WORK
Whether dealing with accountants or experimental subjects, both accounting

firms and researchers need to understand how monetary incentives affect performance.
The authors begin by explaining the relationship between monetary incentives, effort
and performance and then discuss 4 theories applicable to this relationship. Next, they
present a literature review of laboratory or field experiments that study the effects of
monetary incentives on individual effort or performance. Such studies include one of the
4 theories or other variables identified by the authors such as person variables
(characteristics of individuals), task variables (characterize the task), environmental
variables (characteristics of the surroundings of the person performing the task),
incentive scheme variables (characterize the incentive scheme) as well as other variables
related to affect, expectancies, self-interest, and arousal.
Generally, it is thought that monetary incentives will increase effort and performance;
but research has been inconclusive. The more important question is how monetary
incentives affect effort and performance. To that end, the authors present a framework of
the effects of monetary incentives on effort and task performance. Each construct is
explained in further detail.
Below, I attempt to summarize some of the salient points in literature reviewed by the
authors. In other words, I’m being overly simplistic because the authors’ presentation of
prior research, while succinct, is voluminous. For many of the points I summarize
below, the authors have discussed references to studies that may in some other context
not hold. This piece of work is very rich and any effort to summarize it would be
inadequate. However, to give an idea of some of the issues it covers, the following is
provided using some of the same subject headings as used in the paper.
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3.1 Effort
Effort can have two directions – towards a task or towards learning. Both will eventually
lead to performance, but while effort towards a task (direction, duration, and intensity)
results in immediate performance, learning delays performance and is an important
characteristic of strategy development.
Effort Direction – refers to what task a person chooses to do.
Effort Duration – “refers to how long a person works”
Effort Intensity – “refers to how hard a person works”
In general, if monetary benefits are seen to outweigh the time and other resources that
must be expended for a task, then performance-based incentives should increase effort
on that task.
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Strategic Development – person is not directly working on the task, but is doing other
activities (for example, problem solving, planning, or innovation) that will allow for
future performance of the task. It is thought that monetary incentives lead to strategic
development when immediate performance at the required level is not immediately
possible.
3.2 Theories for Incentive-Effort Relationship
The authors present 4 theories to explain how incentives affect effort, although there are
more, and are: expectancy theory, agency theory (via expected utility theory), goal-
setting theory, and social-cognitive (self-efficacy) theory.
3.2.1 Expectancy Theory
“People act to maximize expected satisfaction with outcomes. “People are motivated by
two things: (1) what they think the payoff is for a particular behavior and (in this case,
money) and (2) how much they value that payoff (research shows people value
monetary payoff over non-monetary payoff). The combination of these two factors is
what motivates people. In other words, people make more effort when performance-
based incentives are used because they believe they will get money when they perform
as expected and they really like money.
3.2.2 Agency Theory
“Individuals have utility for increases in wealth.” Agency theory assumes that people are
rational and will make choices based on the choice’s ability to increase either their
wealth or leisure. If a task does not add to economic well-being, people will shirk the
task.
3.2.3 Goal-setting Theory
“…proposes that personal goals are the primary determinant of, and immediate
precursor to, effort .” Prior research has shown that challenging and specific goals are
most effective at increasing effort because they require more effort to be achieved. Goals
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have a main effect on effort, separate from expectancy, and are themselves affected by
monetary incentives in that monetary incentives may cause people to “set goals when
they otherwise would not,” “set more challenging goals than they otherwise would, and
have “higher goal commitment.”
3.2.4 Social-cognitive theory (self-efficacy theory)
Self-efficacy directly affects effort when a person expends effort (direction, intensity,
duration, and learning) on a task that he or she believes he/she is able to accomplish. The
belief that one can achieve a task also indirectly affects effort via goal setting such as
when people who believe they are able to accomplish much, set high goals for
themselves, which according to goal-setting theory would immediately precede effort.
The authors also discuss how self-efficacy indirectly affects effort through other
“cognitive, motivational, affective, and task mechanisms (p. 309).”
3.3 Person Variables
The authors review prior literature and provide many personal variables that can impact
the relationship between monetary incentives, effort, and task performance. Those
variables identified include the person’s “knowledge content, knowledge organization,
abilities, confidence, cognitive style, intrinsic motivation, cultural values, and risk
preferences (p. 312).” These variables affect a person’s “memory retrieval, information
search, problem representation, hypothesis generation, and hypothesis evaluation .”
They focus a major part of the remaining discussion of this section on how a person’s
skills impacts the relationship between monetary incentives, effort, and performance and
then provide some further discussion on other variables that also have an effect.
3.4 Direct role of skill on incentives-effort-performance relation
Basically, the level of task knowledge a person has can negatively affect an otherwise
positive relationship between effort and performance. In other words, incentives may
increase a person’s effort, but that effort will not necessarily lead to increased
performance if the individual is lacking the requisite skills. In some cases, when subjects
23
lacked adequate skills to perform the task, monetary incentives only increased certain
dimensions of effort. While it would seem rather obvious and simple, there is much
unknown about how and when this attenuation occurs. The authors provide quite a few
research ideas that would help illuminate the relationship between monetary incentives,
skill, effort, and performance.
3.5 Indirect role of skill on incentives-effort-performance relation
Skill can indirectly affect performance by its affect on self-efficacy. In other words, if a
person has the requisite skills, then he/she should tend to believe that the task could be
accomplished. As a result of increased self-efficacy, a person may then set higher goals
and/or be more committed to those goals. Therefore, it is important that accounting
firms and experimenters take skill level into consideration when assigning people to
tasks. Otherwise, people who would otherwise be positively motivated by monetary
incentives to increase their effort may instead “give up” and not even try.
Skill can also work as a method for weeding-out those who do not have requisite skills
for a task because those people will self-select non-contingency remuneration whereas
those with requisite skills will likely choose performance-based incentives for
completing a task in which they are skilled. In other words, if a firm or experimenter
gives people a choice in incentive structure, it is likely that those who chose the
performance-based incentives will actually be able to perform the task. The authors also
talk about research that has investigated prior research that explores whether ability to
choose the type of monetary incentive will affect performance. It has also been found in
some research that performance-based incentives will attract high-skilled workers, but
specific incentive schemes have not been studied thoroughly. Examples of other factors
that would be relevant to a discussion on skill’s indirect affect on the incentive-effort-
performance relation are: risk, differences in perceptions based on gender, complexity of
the tasks, and any factors that would explain the process that occurs when someone
“gives up” on a task for which they are unskilled.
24
3.6 Effects of other person variables on the incentives-effort performance relation
Other variables that the authors recommend studying include need for high achievement
(intrinsic motivation) and dimensions of cultural background.
3.7 Task Variables
There are many possible task variables including: task complexity, effort-sensitivity,
framing, presentation format, processing mode, response mode, and attractiveness. The
authors focus on task complexity in their review of the literature.
3.8 Effects of task complexity on the incentives-effort-performance relation
Task complexity has to do with the amount of a task’s structure and required processing.
The more structure a task has and the less processing it requires, the less complex a task
is. Task complexity can affect dimensions of effort (duration, intensity, or strategy
development) or it can affect the relationship between monetary incentives, effort, and
performance indirectly through its impact on skill requirements, self-efficacy, expected
benefit over cost of expending effort, and level of arousal. In general, one would expect
that an increase in task complexity would ultimately lead to a decrease in the effect of
monetary incentive’s impact on performance, unless a person has a high enough level of
self-efficacy and skills to offset task complexity’s effect. The authors discuss the results
of two accounting studies that could be understood to have contradictory findings.
3.9 Effects of other task variables on the incentives-effort-performance relation
The authors discuss the dimensions of accounting information (clarity and amount),
preference reversals, prospect theory, framing, and categorization and how these factors
affect the relationship between monetary incentives, effort, and performance.
3.10 Environmental Variables
Environmental variables are all the things surrounding the person who is doing a task
and monetary incentives is one such variable. Additional variables that either have been
25
or should be studied would include “time pressure, accountability relationships, assigned
goals, and feedback (p. 325)” as well as a firm’s accounting system. The authors focus a
large portion of their discussion to assigned goals, as it is a part of an organization’s
control mechanism.
3.11 Effects of assigned goals on the incentives-effort-performance relation
Generally, monetary incentives and goals can both affect performance independent of
one another; however, they have a larger effect when both are brought to bear on the
situation. Generally, it is thought that assigned goals have an indirect positive affect on
effort by its positive direct affect on both personal goals and self-efficacy. Self-efficacy
also has a relationship with personal goals and personal goals can directly affect all four
dimensions of strategy. However, if assigned goals are so extreme that they cannot be
accomplished, then they will have a negative impact on performance. Furthermore,
specific goals lead to greater effort than vague ones. Monetary incentives, combined
with assigned goals, can also affect all four dimensions of effort such as when
compensation is tied to accomplishment of goals.
3.12 Effects of other environmental variables on incentives-effort-performance

relation
Several environmental variables discussed are accounting methods and feedback

(outcome, cognitive, and task-properties), training, accountability, decision rights, and
time pressure. Feedback can positively affect motivation, learning, and self-efficacy and
it can interact with monetary incentives such as when people use feedback to increase
their performance. Or, if information asymmetry exists, feedback can assist people in
shirking.
3.13 Incentive scheme variables
Examples of incentive schemes highlighted by the authors include “timing of the

incentive, whether it embodies competition, what dimensions of performance the
incentives reward, and payoff magnitude (p. 331).” The authors go into more detail on
26
the “performance dimensions that the incentive scheme rewards (p. 331)” because
employees’ job duties often entail various tasks.
3.14 Effects of the rewarded dimension of performance on incentives -effort-

performance relation
Discussion includes the benefits and drawbacks of monetary incentives directed at one
dimension of performance when other dimensions are not rewarded. Another issue of
interest is how to structure monetary incentives so that employees not only are
encouraged to increase performance, but also are motivated to take appropriate risk.
3.15 Effects of other incentive scheme variables on the incentives-effort-

performance relation
The authors discuss existing research on how the level of pay affects the relationship
between incentives, effort, and performance as well as the impact of timing of
introducing monetary incentives. Future research would include “predictive ability of
various efficiency wage theories,” “effects that payoff magnitude has on employees’
propensity to take risks and innovate,” and “attention to person variables (skill) and task
variables (complexity) that might interact with payoff magnitude (p. 335).” Other
dimensions of incentive schemes are also discussed.
In conclusion, this paper is so information packed, that I could only scratch the surface.
It is an excellent literature review with many ideas for future research.
27
28
CHAPTER-IV
4.1 COMPANY PROFILE
G UTILITY SERVICES Private Limited is Started in 2016 by team of professional

who has worked in various function areas in a organization of repute, G UTILITY
SERVICES Private Limited is pioneer of organized recruitment solution in India and
abroad. Over the periods, we have acted as preferred recruitment associate to
multinational and Indian leading business house for their end to end recruitment
solution.
G UTILITY SERVICES Private Limited management expertise in consulting enabled us

to bring a unique approach to talent hunt. During very short span of our operation we
have been rewarded as preferred recruitment partner to many multinational and India’s
leading business houses. We recruit across various business verticals across all
functional areas for multinational and Indian Business Houses. In Past years, we have
helped to shape the carriers of many professionals.
G UTILITY SERVICES Private Limited have a panel of domain Expert who provide
customized recruitment solution to all our client of different industry verticals. We have
excellent infrastructure to meet the demand of large volume recruitment to selected
senior position.
G UTILITY SERVICES Private Limited is proud to mention that their 80% revenue
comes from existing client which shows service and relationship level and indirectly
reflect testimonial of happy Client
G UTILITY SERVICES visualize, plan and create solutions before deploy them for
you.
G UTILITY SERVICES provides personalized services to its clients and maintains

confidentiality on need basis.
29
G UTILITY SERVICES is adept in formulating and aligning organization’s people,
strategy and operations with a focus on value maximization.
4.2 PRESENT DIRECTOR DETAIL
Director Name Designation Appointment Date
Managing
Priya Director 24/01/2016
4.3 COMPANY DETAILS
CIN U51502TN2016PTC058902
Company Name G UTILITY SERVICES Private Limited

Company Status Active
RoC RoC-Chennai
Registration Number 58902

Company Category Company limited by Shares
Company Sub Category Non-govt company
Class of Company Private

Date of Incorporation 24th January 2016
Age of Company 5 Years, 2 Months, 2 Days
Activity HUMAN RESOURCES OUTSOURCING
30
4.4 ESTABLISHMENT DETAILS
Pin
Establishment Name City code Address
NO.3 /1120, Thiruvallur Road, Molachur
G UTILITY SERVICES Village,Sungavarchathram,
Private Limited Chennai 602 106 Kancheepuram district 602 106
4.5 COMPANY MOTTO
With the Co-operation of Employers, G UTILITY SERVICES has been a law-

abiding establishment following strictly the minimum Wages fixed by the Government
and the revision of D.A. applicable every year wherever the employment is cover under
the schedule of employment by the labour & Employment dept.,
Government of Tamil Nadu and in other Industries the wages as fixed by the
company concerned. Some Employers also provide Bonus, Leave with Wages to
contract Employees
31
4.6 HUMAN RESOURCES OUTSOURCING
HR outsourcing generally happens in the areas like payroll, employee benefits

administration, network, fixed assets administration, receivable and logistics
management, hardware maintenance, telemarketing, call centers and database
management. In India, the common processes which are outsourced are generally
related to training and development, payroll processing, surveys, benchmark studies
and statutory compliance.
HR outsourcing continues to grow in the future. More and more HR functions

will be outsourced. As per the survey conducted in 2005 by Hewitt Associates, a global
human resource services firm on 129 large companies found that 94% respondents
outsource at least one HR function. Further their study highlights that the most
commonly almost fully outsourced HR functions are:
32
4.7 Exhibit 1: Functions of HR outsourcing
HR Functions % of Respondents
1. Outplacement Services 91%
2. Employee Assistance Programs 89%
3. Defined Contributions 401(K) 84%
4. COBRA administration 77%
5. Defined (Pension) 68%
6. Health benefits 69%
By 2008, companies plan to expand outsourcing into the following areas, listed in
order: leave management, learning and development, payroll, recruiting, health and wel-
fare, and global mobility.
4.8 SERVICES PROVIDED BY THE COMPANY
33
As organizations work on improving and lowering the cost of their overall operations,
the need for hiring temporary and specialized manpower supply increases significantly.
As of December 2019, on average, 63% of a company’s staff was temporary.
However, with ample talent available, it can get challenging to find the perfect
individual for your company. 3 Point Human Capital is a manpower agency that
understands this and helps you hire the best and most talented temporary staff so that
you can focus your energy on important business operations.
We are experts at manpower services of two kinds:
 Temporary: working condition limited to a specific amount of time

 Gig: specialized workforce on a contractual basis
4.9 Key Features and Benefits of Manpower Supply Services
As one of India’s most trusted manpower supply companies, G UTILITY SERVICES

offers a number of benefits and features to our clients. With our top-notch services, your
HR team will be able to focus all their energies on other core functions. Here are a few
important benefits of availing manpower services:
 Save 30% in operational cost

 Save significant time to focus your energy on core operations
 Strategic 7 S hiring process, reducing any iterations in manpower recruitment
 Choose from a huge pool of talent from across India
 Instant accessibility to the right candidate
Whether you are looking for specialized or temporary manpower solutions, you can
expect us to come up with the right workforce to fit your needs.
34
4.10 Offering Customized Solutions of Manpower Supply Services:
At G UTILITY SERVICES, we understand that each company has its own unique set of
requirements, and so, we aim to offer customized manpower solutions to help you save
time on training the hired individual.
4.11 Custom manpower services, you get the following benefits:
 Get access to talented manpower in 100+ leading cities in India

 Find the talent that is socio-culturally settled in your preferred location
 Hire candidates that have experience not just in the profile you’re looking for but
also in your company’s domain
 Top-notch talent that fits your organization needs perfectly
 We can become your trusted manpower supply company by giving you exactly the
candidates that you need to run your business smoothly.
4.12 How Does Manpower Recruitment Process Work?
G UTILITY SERVICES Private Limited is a pioneer at providing organizations with

hassle-free manpower recruitment services. It follows a strategic three-step process to
help our clients find the right fit for their company needs.
 Defining the right specifications for faster and targeted sourcing

 Coming up with a categorical selection process to ensure right temporary manpower
recruitment
 Designing a robust onboarding process to minimize the number of candidate drop-
outs
G UTILITY SERVICES Private Limited is a manpower recruitment agency that

understands the importance of hiring the right talent for an organization. It start by
getting a thorough understanding of your organizational needs and help you zero down
the most appropriate fit for your specialized operation.
35
The next step includes the valuation of the shortlisted candidates’ skills and ensuring
they suit the profile. Finally, we forward the profile for you to peruse and make the final
decision.
4.13 Why to Choose G UTILITY SERVICES for Manpower Supply Services?
G UTILITY SERVICES Private Limited is one of the most trusted manpower

recruitment agencies in the country, the testimony to which are our happy clients and
their smooth business operations.
It aim to offer the best customized and tailored manpower solutions and bring you talent
from over 100 cities. As a manpower supply company, we strive to exceed our clients’
expectations.
4.14 G UTILITY SERVICES Private Limited offers the following:
 A highly experienced team of recruitment professionals that have expertise in hiring

talent for different industry requirements
 A lot of time to allow you to focus on core business operations
 Savings in terms of operational costs and recruitment processes
 The right fit for the right profile
4.15 SPECIAL FEATURES:
Many organizations haven’t recognized the importance of manpower services and how
they can immensely benefit their organization.
Manpower planning is a crucial aspect. Failing to do an adequate job will mean that a
company will suffer from not getting quality employees and not acquiring the right
workers for the right job at the right time. In making an organization better, manpower
planning cannot be left out of this process. Almost every big company started with
manpower services at some stage and the importance of manpower services can be better
appreciated when you look at the benefits in depth.
36
4.16 Productivity
The connection between company projects and manpower is legitimately simple:

manpower is directly proportional to productivity. With more workers available at work,
the faster tasks will be completed. Equally, when business lacks sufficient manpower; it
hinders them from accomplishing tasks. We all understand what a lack of productivity
mean. It means reduction in profit and revenue, which in several cases signifies that the
company won’t be operational.
4.17 Safety
When companies seek manpower services from contract staffing agencies, they will
have sufficient workers. Workers don’t need to work overtime hours. The workload
assigned is more suitable because more people are available to handle tasks. Workers
don’t have stress issues and are more alert because they have more time to rest. There is
more adherences to safety policies and regulations because more workers are working
on the clock. Manpower helps in preventing problems such as injury and burnout.
Workers’ compensation and lawsuits claims can be reduced.
4.18 Options and Innovation
Adequate manpower in a company means that the business has more options in how it
operates. There is flexibility in terms of how employees cover shifts. More manpower
means that organization can get people to fill in for other positions. The company has
37
more workers to make a strong team and with employees having more knowledge, skills
and ability in solving current problems of the company. More manpower services also
mean that the organization has employees who can share their perspectives and ideas to
solve various issues.
4.19 Cus tome r Re lations and Finance
A good manpower service gives room to companies to deliver promises made and keep
the flow of production going. Companies who involve in these manpower services can
maintain and establish good client relationships. Additional sales can be the outcome of
this. When companies keep to their promises, they can prevent paying of penalties and
fines, which keeps profit higher.
4.20 Accountability
Most firms in the United State operate under a form of traditional master/servant
relationship. This denotes that the shots are made by the employer and with employee is
thought to work for the sole benefit of the company. However, if not kept in check,
some employers abuse the power this type of relationship allows. If there is a large
amount of manpower in a company, employees are better able to band together and
lobby for fair treatment.
4.21 CLIENTS
 DAECHANG INDIA SEAT COMPANY PVT LTD.

 AJAY POLY PVT LTD.
 JK FENNER INDIA PVT LTD.
 VARROC LIGHTING SYSTEMS INDIA PVT LTD.
 RISING STAR MOBILES INDIA PVT LTD.
 AXLES INDIA LTD.
38
CHAPTER-V
5. RESEARCH METHODOLOGY
5.1 RESEARCH
The term research is composed of two words “re” & “search” which mean to
search again. Research is for finding new fact or to modify the existing fact. Research
methodology is one of the important chapter which helps to do research work in
systematic way. Research is an original contribution to the existing stock of knowledge
making for its achievement. Research is the pursuit of truth with the help of study,
observations, comparison and experimenting.
Research refers to a critical, careful and exhaustive investigation or inquiry or

experimentation or examination having as its aim the revision of accepted conclusions,
in the light of newly discovered facts. Research is the process. A process is a set of
activities that are performed to achieve a targeted outcome.
According to John W. Best, “Research may be defined as the systematic and objective
analysis and recording of controlled observations that may be lead to the developments
of generalisations, principles, or theories, resulting in prediction and possibly ultimate
control of events”.
5.2 RESEARCH DESIGN
A research design is a specification of methods and procedures for acquiring the

information needed to structure or to solve problem. It is the overall operational pattern
of framework of the project that stipulates procedure. A research design indicates a plan
of action to be carried out in connection with a proposed research work. It provides only
a guideline for the researcher to enable him to keep track of his actions and knowing he
is moving in the right direction in order to achieve his goal.
39
5.3 SAMPLE
A sample has the name implies is smaller representation of a large hold, in other words,
the section of the population selected from the later in such a way that they are
representative of the universe called as sample. A single member of a population is
referred to as a population element. When some of the elements are selected with the
intention of finding out something about the population from which they are taken, that
group of elements is referred as a sample and the process of selection is called sampling.
5.4 SAMPLE DESIGN
A sample design is a definite plan for obtaining a sample from a given population.
Convenience Sampling as the name implies, is based on the convenience of the
researcher who is able to select a sample. Respondents in the sample are included in it
merely on account of their being available on the spot where the survey was in progress.
5.5 SOURCES OF DATA
The task of data collection begins after the research problem has been defined and
research design chalked out. While deciding the method of data collection to be used for
the study, the researcher should keep in mind two types of data viz. Primary and
secondary data.
5.6 PRIMARY DATA
The primary data is gathered for a specific purpose or a research project the primary data
are those which are collected fresh and for the first time thus happen to be original in
character is collected for the first time by the reference of the company. It refers to
information that is generated to meet the specific requirements of the investigation at
hand. The primary data were collected through well-designed and structured
questionnaires based on the objectives.
40
5.7 SECONDARY DATA
The secondary data on the other hand are those which have already been passed through
satisfied process. Secondary data are those which area referred through the primary data
they are referred from the already existing records. This information is collected for a
purpose other than to solve the specific problem under investigation. The secondary data
required of the research was collected through various newspapers, internet etc.
5.8 AREA OF THE STUDY
The study covers the West -Chennai region only. The study focuses on G UTILITY
SERVICES Pvt.Ltd. in Molachur Village, Sungavarchathram, Kancheepuram district
(Chennai Circle).
5.9 SAMPLING
An integral component of a research design is the sampling plan. Specifically, it

addresses three questions.
 Whom to survey (The Sample Unit)

 How many survey (The Sample Size)
 How to select them (The sampling Procedure)
A sample is a portion of the total employee strength. According to Yule, a famous

statistician, the object of sampling is to get maximum information about the parent
population with minimum effort.
5.10 METHODS OF SAMPLING
Probability sampling is also known as random sampling or chance sampling.

Under this sampling design every individual in the organization has an equal chance, or
probability, of being chosen as a sample. This implies that the section of sample items is
independent of the persons making the study that is; the sampling operation is controlled
objectively so that the items will be chosen strictly at random.
41
Non-Probability Sampling is also known as deliberate sampling, purposeful and
judgemental sampling. Non probability sampling is that which does not provide every
individual in the organization with a known cause of being included in the sample.
5.11 TOOLS FOR DATA COLLECTION
The tool used in this study is a structured questionnaire. A questionnaire is a

sheet or sheets of paper containing questions relating to certain specific, regarding which
the researcher collects the data. The questionnaire is given to the respondents to be filled
in up.
5.12 TOOLS FOR DATA ANALYSIS

The data so collected through questionnaire were tabulated and analyzed specific tools
were also applied to yield accurate result.
5.13 Statistical tools used:
The statistical tools used by the researcher for the study is as follows:
 Percentage Analysis
 Chi Square Test
 ANOVA
5.14 PERCENTAGE ANALYSIS
The research tools used are percentage analysis waited frequency distributed
ranking and statistical chart
42
5.15 CHI- SQUARE TEST
The chi-square test is one of the simplest and most widely used statistical tools.
The chi-square test was first used by “Karl Pearson” in the year 1890.
It is the most important test among the several test developed by statistician. It is
non-parametric test. It can be used to determine if categorical data shows dependence
are the two classifications are independent. It can also be used to make comparisons to
be theoretical population and actual data categories used.
5.16 Uses of chi-square test:

 It is a non –parametric test, which is used for testing the hypothesis, when
distribution of population is not known and when the nominal data is to be
analyzed.
 With the help of chi-square test, we can find out whether two of more attributes
is associated or not.
5.17 ANOVA (Analysis of Variance)
ANOVA was developed by R.A Fisher in 1920 and it is mainly used for research
in economics, agriculture, business etc. The test is used mainly to test the significance
between two or more sample and the means of these samples.
ANOVA is where the data is classified and tabulated according tone criteria and
following steps are followed.
5.18 SAMPLE SIZE
The sample size of this study is Eighty respondents.
5.19 PERIOD OF THE STUDY:
The period of the study was one month.
43
CHAPTER-VI
6. DATA ANALYSIS AND INTERPRETATION
6.1 GENDER OF THE RESPONDENT:
The respondents are segmented into two categories namely Male and Female.
TABLE NO: 6.1
NO.OF.
S.NO GEND ER
RESPON CE NC E PERCENTAGE
1 Male 65 81
2 Female 15 19
3 Total 80 100
SOURCE: Primary Data
CHART NO: 6.1
6.1.1 INTERPRETATION:
From the above table, it is observed that the majority of the respondents are male
81 % and female are 19 %. In the organization male employees are employed than the
female employees.
44
6.2 AGE OF THE RESPONDENT:
The respondents are categorized based on the age as below 25 years, 25-40 years,
40 & above.
TABLE NO. 6.2
S.NO NO.OF.
AGE
RESPON DE NC E PERCENTAGE
1 Below 25
22 27.5
years
2 25-40 years 47 58.8
3 40 & above 11 13.8
Total 80 100.0
CHART NO: 6.2
45
From the above table and chart the majority 58.75 % of respondents belongs to
the age group of 25-40 years, 27 % of respondents belonging to the age group of below
25 years and remaining 13.75 % of respondents belong to the age group of 40 & above.
So it is clear that majority of the respondents belonging to the age group of 25-40 year.
6.3 EDUCATIONAL QUALIFICATION OF THE RESPONDENT:
Educational qualification plays a vital role in the organization that determines

career goal and growth. Here the qualifications of the employees are segmented into four
categories.
TABLE NO. 6.3

NO.OF.
S.NO EDUCA TIO N
RESPON DE NC E PERCENTAGE
1 School
27 34
education
2 IT/diplom a 16 20
3 UG 22 28
4 PG 15 18
Total 80 100.0
46
CHART NO: 6.3
From the above table and chart majority of the respondents are belonging to the
level of school education of 34%, the respondents belong to the IT/Diploma category of
20%, the respondents are belong to the Under Graduation level of 28% and the remaining
respondent are belonging to the category of Post Graduation 18% . So it is clear that the
majority of the respondents are belonging the school education level.
6.4 OCCUPATION OF THE RESPONDENTS:
The respondents are categorized according to their occupation they are HR, Finance and
Labour.
TABLE NO. 6.4
S.NO OCCUPATION NO.OF. RESPONDENCE PERCENTAGE
1 HR 12 15
2 Finance 4 5
3 Labour 64 80
Total 80 100.0
47
CHART NO: 6.4
From the above table and chart majority of the respondents i.e. 80 % are
belonging to the labour category and respondents are belonging to the finance department
of 5 % and the remaining of the respondents are belonging to HR 15%. So it is clear that
the majority of the respondents are comes under labour category.
6.5 MARTIAL STATUS OF THE RESPONDENTS:
The respondents are segmented into two categories namely married and unmarried.
TABLE NO. 6.5
NO.OF.
S.NO MARITAL RESPON DE NC E PERCENTAGE
1 Married 64 80
2 Unm arried 16 20
Total 80 100.0
48
CHART NO: 6.6
From the above table, shows that the majority i.e.80% of the respondents is
married and the remaining i.e.20 % of the respondents are unmarried. So it is clear from
the table the majority of the respondents are married.
49
6.6 EXPERIENCE OF THE RESPONDENTS:
Experience is one of the factors that determine employee’s work efficiency,

perfection and related stress in the organization.
TABLE NO. 6.6
NO.OF.
S.NO Experience RESPON DE NC E PERCENTAGE
1 Less than 2 years 21 26.2
2 2 to 5 years 31 38.8
3 More than 5 years 28 35.0
Total 80 100.0
CHART NO: 6.6
6.6.1.1INTERPRETATION:
From the above table and chart the majority of the respondents i.e. 38.75 % are
belonging to the experience of 2 to 5 years, the respondents having more than 5 years’
experience is around 35 % and the remaining of respondents are belonging to less than
2 years’ experience is around 26.25% . So it is clear that the majority of the respondents
are belonging to the experience of 2 to 5 years.
50
6.7 MONETARY INCENTIVES OF THE RESPONDENTS
TABLE NO. 6.7
Strongl
Frequency/Per y Disagre Neutra Agre Strongly Tota
Factors cent Dis e l e l
agree Agree
Medica Frequency 2 5 11 46 16 80
l
Facility
Percentage 1.5 6.2 14.2 58.2 20 100
CHART NO: 6.7
Above Table gives a picture of the viewpoint of different respondents regarding

the Medica l Facilities provided by their companies and whether they facilitate effective
performance. It was found that 7.7 % of respondents were strongly disagree or disagree,
14.2% respondents were neutral while 78.2% respondents were agree or strongly agree
that the Medical facilities provided by their companies works as an icing on the cake.
51
6.8 EXTRA ALLOWANCES OF THE RESPONDENTS
TABLE NO. 6.8
Strongly
Factors Frequency/ Strongly Disagre Neutral Agree Total
Percent Disagree e Agree
Frequency 2 4 13 40 21 80
Extra
Allowances
Percent age 1.7 5.2 16.5 50.5 26.2 100
CHART NO: 6.8
6.8.1 INTERPRETATION
Above table and chart depicts the perspective about Extra Allowances, it was
observed that 6.9% of total respondents were strongly disagree or disagree, 16.5%
were neutral while 76.7% were agree or strongly agree that the extra allowances
provided by their company helps to boost their performance
52
6.9 MEDICAl FACILITY OF THE RESPONDENTS
TABLE NO. 6.9
Strongly
Disagree Neutral Strongly
Factors Frequency/Percent Disagree Agree Agree Total
Medical Frequency 3 9 15 32 21 80
Facility Percentage 3.7 10.5 19.3 40 26.5 100
CHART NO: 6.9
Above Table and Chart gives a picture of the viewpoint of different respondents
regarding the Medica l Facilities provided by their banks and whether they facilitate
effective performance. It was found that 7.7 % of respondents were strongly disagree
or disagree, 14.2% respondents were neutral while 78.2% respondents were agree or
strongly agree that the Medical facilities provided by their banks works as an icing
on the cake.
53
6.10 AMOUNT OF BONUS OF THE RESPONDENTS
TABLE NO. 6.10
Strongly
Amount Frequency 4 6 15 27 28 80
of Bonus Percentage 4.8 7.2 18.7 34.0 35.3 100
CHART NO: 6.10
With the help of above chart and table it was discovered that 12 % of total
respondents found Amount of Bonus not at all effective or not so effective, 18.7%
were neutral while 69.3% of respondents found it effective or highly effective and
admitted that it is always welcomed by them and their family.
54
6.11 SATISFIED WITH EMPLOYEE WELFARE FACILITY
TABLE NO. 6.11
Strongly
Satisfied Frequency 2 9 20 43 6 80
with
Employee
Percentage
Welfare
Facility 2.7 10.7 24.8 54.2 7.7 100
CHART NO: 6.11
The next variable was the Satisfaction Level of the Bankers with the
Employee Welfare Facilities provided to them. From above chart and table it was
revealed that out of the total number of employees, 13 4% were strongly disagree or
disagree, 24.8% were neutral while 61.9 % of respondents were agree or strongly
agree that they are happy with the employee welfare facilities provided to them
55
6.12 AUTOMOBILE FACILITY OF THE RESPONDENTS
TABLE NO. 6.12
Strongly
Disagre Neutra
Frequency/Percen e Disagre l Agre Strongl Tota
Factors t e e y Agree l
Frequency 6 19 19 33 5 80
Automobil
e Facility Percentage 7.0 23.5 23.3 40.2 6.0 100
CHART NO: 6.12
Chart and table shows the responses regarding Automobile Facility or the
reimbursement of petrol charges provided by the bank. It showed that 30.5% of
respondents were strongly disagree or disagree, 23.3% were neutral while 46.2%
respondents were agree or strongly agree and were pleased with the automobile
facility provided by their bank.
56
6.13 FREQUENCY OF BONUS OF THE RESPONDENTS
TABLE NO. 6.13
Strongly
Frequency Frequency 3 8 16 32 21 80
of Bonus Percentage 3.7 10.5 19.3 40 26.5 100
6.13.1 INTERPRETATION: Above Table depicts the next variable- Frequency of

Bonus. It shows that 14.2% of total respondents considered it as not at all effective
or not so effective, 19.3% were neutral while 66.5% of respondents considered it
effective or highly effective and were in favor of the view that frequent bonus
boosts their performance.
6.14 PERFORMANCE BONUS IS BETTER THAN RECOGNITION
TABLE NO. 6.14
Response Frequency Percent
Strongly Disagree 1 1.5
Disagree 10 12.2
Neutral 19 24.0
Agree 38 47.7
Strongly Agree 12 14.7
Total 80 100.0
6.14.1 INTERPRETATION: Table supports the universal fact that money is above
all the worldly things. It has been concluded that 13.7% of respondents were strongly
disagree or disagree, 24% were neutral and 6 2.4% were agree or strongly agree that
performance bonuses (monetary) are much liked by the employee s rather than public
recognition for outstanding work.
57
II. STATISTICAL ANALYSIS (CHI – SQUARE TEST)
ASSOCIATION OF GENDER
HYPOTHESIS
H0 : here are no significant differences among performance incentives used to
encourage employees
H1 : There are significant differences among performance incentives used to encourage
employees
2
TABLE NO. 6.15 Chi-Squared (X ) Test Showing the Result of Hypothesis One
STATEMENT SD D U A SA TOTAL
The company provides its

employees 1 5 9 21 16 52
with a basic payment that
is
commensurate to their
respective
grade levels.
When an employee meets up

with or 7 9 9 18 9 52
exceeds targets, this company
gives them
some amount of money other
than the
basic pay as a form of gain
sharing.
The Company provides benefits

such as 0 7 9 16 20 52
official car, official house, life
assurance, private medical care
and
annual holiday entitlement to its
employees.
The Company rewards its

employees for 4 8 17 18 5 52
using their own initiatives when
they
are faced with challenges as
regards
the task assigned to them.
58
59
The Company gives its employees
special 3 11 17 14 7 52
rewards in form of an all-
expense-
paid trip to a specific place of
interest
and tickets to sports
events/cinemas.
The Company gives its

employees 1 3 16 16 16 52
feedback on how efficient they
are
with regard to the tasks assigned to
them.
The Company gives due

recognition such 4 10 8 14 16 52
as employee of the
month/year,
"thank you", certificate of
recognition
and gift items to employees who
efficiently do their work.
In the Company, employees

participate in 4 5 14 19 10 52
decisions regarding their job
design
and other decisions as they
affect
employees’ work.
The working environment in this 0 5 8 22 17 52

company, such as
supervisor’s/branch
manager’s support is okay.

employees 5 7 10 19 11 52
enough opportunity to develop
their
careers.
60
employees 2 2 9 19 20 52
relevant trainings so that the
employees can
acquire necessary
knowledge & skills required
in
carrying out the task assigned
to
them.
TOTAL 36 78 143 212 155 624
The Company provides its

employees e11 e12 e13 e14 e15 52
with a basic payment that is
comm ensurat
e to their respective
grade levels.
The Company pays its

employees a e21 e22 e23 e24 e25 52
proportion of its profit before
interest
and tax (PBIT) as a form of profit
sharing.
When an employee meets up with

or e31 e32 e33 e34 e35 52
exceeds targets, this company
gives them
some amount of money other
than the
basic pay as a form of gain
sharing.
The Company provides benefits

such as e41 e42 e43 e44 e45 52
official car, official house, life
61
assurance, private medical care
and
annual holiday entitlement to its
employees.
The Company rewards its

employees for e51 e52 e53 e54 e55 52
using their own initiatives when
they
are faced with challenges as
regards
the task assigned to them.
The Company gives its employees

special e61 e62 e63 e64 e65 52
rewards in form of an all-
expense-
paid trip to a specific place of
interest
and tickets to sports
events/cinemas.

feedback on how efficient they
are
with regard to the tasks assigned
to
them.
The Company gives due

recognition such e81 e82 e83 e84 e85 52
as employee of the
month/year,
"thank you", certificate of
recognition
and gift items to employees
who
efficiently do their work.
In this company, employees

participate in e91 e92 e93 e94 e95 52
decisions regarding their job
design
employe es’ work.
62
The working environment in e10
this e101 e102 e103 4 e105 52
company, such supervisor’s/bra
as nch
manager’s support is
okay.
The Company gives its e11

employees e111 e112 e113 4 e115 52
enough opportunity to develop
their
careers.
The Company gives its e12

employees e121 e122 e123 4 e125 52
relevant trainings so that
the
employe e necessar
s can acquire y
knowledge & skills required
in
carrying out the task assigned
to
them.
TOTAL 36 78 143 212 155 624
TABLE NO. 6.16 Computation of Chi-square Test Statistic for

Hypothesis One
2 ( Σ(Fo − Fe)2 –
Fo Fe Fo – Fe (Fo – Fe) )
Fe
1 3.00 -2.00 4.00 1.3333
5 6.50 -1.50 2.25 0.3462
9 11.92 -2.92 8.5264 0.7153
63
21 17.67 3.33 11.0889 0.6276
16 12.92 3.08 9.4864 0.7342
5 3.00 2.00 4.00 1.3333
6 6.50 -0.50 0.25 0.0385
17 11.92 5.08 25.8064 2.1650
16 17.67 -1.67 2.7889 0.1578
8 12.92 -4.92 24.2064 1.8736
7 3.00 4.00 16.00 5.3333
9 6.50 2.50 6.25 0.9615
9 11.92 -2.92 8.5264 0.7153
18 17.67 0.33 0.1089 0.0062
9 12.92 -3.92 15.3664 1.1893
0 3.00 -3.00 9.00 3.00
7 6.50 0.50 0.25 0.0385
9 11.92 -2.92 8.5264 0.7153
16 17.67 -1.67 2.7889 0.1578
20 12.92 7.08 50.1264 3.8798
4 3.00 1.00 1.00 0.3333
8 6.50 1.5 2.25 0.3462
17 11.92 5.08 25.8064 2.1650
18 17.67 0.33 0.1089 0.0062
5 12.92 -7.92 62.7264 4.8550
3 3.00 0.00 0.00 0.00
64
11 6.50 4.50 20.25 3.1154
17 11.92 5.08 25.8064 2.1650
14 17.67 -3.67 13.4689 0.7622
7 12.92 -5.92 35.0464 2.7126
1 3.00 -2.00 4.00 1.3333
3 6.50 -3.50 12.25 1.8846
16 11.92 4.08 16.6464 1.3965
16 17.67 -1.67 2.7889 0.1578
16 12.92 3.08 9.4864 0.7342
4 3.00 1.00 1.00 0.3333
10 6.50 3.5 12.25 1.8846
8 11.92 -3.92 15.3664 1.2891
14 17.67 -3.67 13.4689 0.7622
16 12.92 3.08 9.4864 0.7342
4 3.00 1.00 1.00 0.3333
5 6.50 -1.50 2.25 0.3462
14 11.92 2.08 4.3264 0.3630
19 17.67 1.33 1.7689 0.1001
10 12.92 -2.92 8.5264 0.6599
0 3.00 -3.00 9.00 3.00
5 6.50 -1.50 2.25 0.3462
8 11.92 -3.92 15.3664 1.2891
22 17.67 4.33 18.7489 1.0611
65
17 12.92 4.08 16.6464 1.2884
5 3.00 2.00 4.00 1.3333
7 6.50 0.50 0.25 0.0385
10 11.92 -1.92 3.6864 0.3093
19 17.67 1.33 1.7689 0.1001
11 12.92 -1.92 3.6864 0.2853
2 3.00 -1.00 1.00 0.3333
2 6.50 -4.50 20.25 3.1154
9 11.92 -2.92 8.5264 0.7153
19 17.67 1.33 1.7689 0.1001
20 12.92 7.08 50.1264 3.8798
Σ(Fo − Fe)2
= 71.29
Fe
6.16 Interpretation:
Reject Null Hypothesis (H0) if computed chi-squared is greater than the tabulated or
critical value (i.e. X2 > X2α(r−1)(c−1)), otherwise accept H0.
df = (r – 1)(c – 1) = (12 – 1)(5 – 1) = (11)(4) = 44
X2α(r−1)(c−1) = X20.05(12 − 1)(5 − 1) = X20.05(11)(4)
X20.05(44) = 60.48
X2 = Σ(Fo−Fe)2 = 71.29
Fe
2
Since the computed chi-squared (X ) is greater than the critical value (i.e. 71.29 > 60.48),
then, there is no evidence to support the assumption that there are no significant
differences among performance incentives used to encourage employees
66
6.17 Hypothesis Two
H0 : There are no significant effects of financial performance incentives on employee
efficiency G UTILITY SERVICES Private Limited.
H1 : There are significant effects of financial performance incentives on employee
efficiency in G UTILITY SERVICES Private Limited.
2
Table 6.17 Chi-Squared (X ) Test Showing the Result of Hypothesis Two
The financial incentives the company

gives 2 11 16 18 5 52
its employees, such as base pay, profit
sharing, gain sharing, benefits,
initiative
rewards and special rewards are

adequate.
Before the company gives the

financial 4 12 20 12 4 52
incentives, employee efficiency
remains
the same.
67
As soon as the company gives its
employees 0 4 11 20 17 52
financial incentives, employee
efficiency improves.
Without the financial incentives, 6 7 22 12 5 52

employees in this company are not
willing to
increase the speed at which they work.
Employees in this company do their

works 2 6 19 16 9 52
with no errors because of the financial
incentives given to them.
This company should continue

giving its 3 0 9 25 15 52
employees financial performance
incentives in order to make the
employees increase their efficiency.
TOTAL 17 40 97 103 55 312
The financial incentives the company

gives e11 e12 e13 e14 e15 52
its employees, such as base pay, profit
sharing, gain sharing, benefits,
initiative
rewards and special rewards are
adequate.
Before the company gives the

financial e21 e22 e23 e24 e25 52
incentives, employee efficiency
remains
the same
68
As soon as the company gives its
financial incentives, employee
efficiency improves.
Without the
financial incentives, e41 e42 e43 e44 e45 52
employees in this company are
not willing to
increase the speed at which they
work.
Employees in this company do

their works e51 e52 e53 e54 e55 52
with no errors because of the
financial
incentives given to
them.
This company should continue

giving its e61 e62 e63 e64 e65 52
performan
employees financial ce
incentives in order to make
the
employees increase their
efficiency.
TOTAL 21 56 122 87 26 312
312 312 312
Table 6.18 Computation of Chi-square Test Statistic for

Hypothesis Two
Fo - (Fo – (Fo-
Fo Fe Fe Fe)2 Fe)2 /Fe
2 2.83 - 0.83 0.6889 0.2434
11 6.67 4.33 18.7489 2.8109
16 16.17 - 0.17 0.0289 0.0018
18 17.17 0.83 0.6889 0.0401
69
5 9.17 - 4.17 17.3889 1.8963
4 2.83 1.17 1.3689 0.4837

12 6.67 5.33 28.4089 4.2592
20 16.17 3.83 14.6689 0.9072
12 17.17 - 5.17 26.7289 1.5567
4 9.17 - 5.17 26.7289 2.9148
0 2.83 - 2.83 8.0089 2.8300
4 6.67 - 2.67 7.1289 1.0688
11 16.17 - 5.17 26.7289 1.6530
20 17.17 2.83 8.0089 0.4664
17 9.17 7.83 61.3089 6.6858
6 2.83 3.17 10.0489 3.5508
7 6.67 0.33 0.1089 0.0163
22 16.17 5.83 33.9889 2.1020
12 17.17 - 5.17 26.7289 1.5567
5 9.17 - 4.17 17.3889 1.8963
2 2.83 - 0.83 0.6889 0.2434
6 6.67 - 0.67 0.4489 0.0673
19 16.17 2.83 8.0089 0.4953
16 17.17 - 1.17 1.3689 0.0797
9 9.17 - 0.17 0.0289 0.0032
3 2.83 0.17 0.0289 0.0102
0 6.67 - 6.67 44.4889 6.6700
9 16.17 - 7.17 51.4089 3.1793
70
25 17.17 7.83 61.3089 3.5707
15 9.17 5.83 33.9889 3.7065

6.19 Interpretation
Reject Null Hypothesis (H0) if computed chi-squared is greater than the tabulated or
critical value (i.e. X2 > X2 α(r−1)(c−1)), otherwise accept H0.
df = (r – 1)(c – 1) = (6 – 1)(5 – 1) = (5)(4) = 20
= 31.41
2
Since the computed chi-squared (X ) is greater than the critical value (i.e. 54.97 > 31.41),
then, there is no evidence to support the assumption that there are no significant effects of
financial performance incentives on employee efficiency in G UTILITY SERVICES
Private Limited. Hence, we reject the null hypothesis and accept the alternate hypothesis
and then conclude that there are significant effects of financial performance incentives on
employee efficiency in G UTILITY SERVICES Private Limited.
71
ANOVA ANALYSIS
6.20 HYPOTHESIS
H0 : There are no significant differences among performance incentives used to encourage
employees
H1 : There are significant differences among performance incentives used to encourage
employees
6.20 ANOVA
Sum of Mean
Model Df F Sig.
Squares Square
Regression 14.632 1 14.632 67.065 .000b
Monetary Residual 130.472 598 .218
Total 145.104 599
Regression 15.143 1 15.143 69.679 .000b
Non-
Residual 129.961 598 .217
Monetary
Total 145.104 599
a. Dependent Variable: Employee Performance
b. Predictors: (Constant), Monetary & Non-Monetary Incentives
6.20.1 Interpretation:
Determine the linear relationship among the variables in regression by
examining the Analysis of Variance (ANOVA). A monetary incentive has a F-
statistic value67.065 and its significance level is 0.000, this shows that the
monetary incentives statistically significantly predict the employee
performance. In non-monetary incentives F-statistic value is 69.679 and its
significance level is 0.000, this shows that the non-monetary incentives
statistically significantly predict the employee performance.
72
CHAPTER - VII
7.1 FINDINGS:
 Majority 81% of the respondents are male; Males are employed than female.
 Majority 58.8% of respondents are belonging to the age group of 25-40 years.
 Majority 34% of the respondents are belonging to the level of school education.
 Majority 80% of the respondents are belonging to the occupation as labour.
 Majority 80% of the respondents are married.
 Majority 38.8% of the respondents are belonging to the experience of 2 to 5 years..
 Majority 58.2% of the respondents feel that, they are satisfied with the monetary
incentives.
 Majority 50.5% of the respondents feel that, they are satisfied with the extra
allowances.
 Majority 26.5% of the respondents feel that, they are satisfied with the medical
facility.
 Majority 35.5% of the respondents feel that, they are satisfied with the amount of
bonus.
 Majority 54.2% of the respondents feel that, they are satisfied with the employee
welfare.
 Majority 40.2% of the respondents feel that, they are satisfied with the automobile
facility.
 Majority 40% of the respondents feel that, they are satisfied with the frequency of
bonus.
 Majority 47.7% of the respondents feel that performance bonus is better than
recognition.
 The study investigated the effect of performance incentives on employee
efficiency with specific reference to the G UTILITY SERVICES Private Limited
and drew from previous related studies. Consequently, following significant
results were found.
73
 Firstly, the results showed that basic pay, profit sharing, gain sharing, benefits
(such as official car, official house, life assurance, private medical care and annual
holiday entitlement), initiative rewards, special rewards (such as an all-expense-
paid trip to a specific place of interest and tickets to sports events/cinemas),
feedback to employees, employee recognition, employee participation, better
working environment, career development opportunities and training were all
adopted by the G UTILITY SERVICES Private Limited to encourage employees.
 This finding supports the finding of also found that there are significant
differences in the performance incentives used in the microfinance industry to
improve efficiency, which also promoted employee efficiency and that they were
effective ways of compensating employees for better performance in the
microfinance industry.
 Furthermore, the finding is in line with the finding of G UTILITY SERVICES
Private Limited who has also found that incentives have significant differences on
employee performance, although, there is not much variation in the importance of
different incentives.
 Furthermore, the results revealed that the financial incentives G UTILITY

SERVICES Private Limited give their employees (such as base pay, profit sharing,
gain sharing, benefits, initiative rewards and special rewards) were adequate.
 But it was uncertain if employee efficiency remains the same before the
companies give their employees financial incentives. In like manner, it was
uncertain if employee will be willing to increase the speed at which they work
without the financial incentives given them.
 However, as soon as these companies give their employees financial incentives,
employee efficiency improves and employees do their works with no errors owing
to the financial incentives given them while they would also want the companies
to continue giving them financial performance incentives in order to make them
increase their efficiency.
74
 This finding is in line with the finding of G UTILITY SERVICES Private Limited
who found that there is a significant relationship between financial & moral
incentives and performance. Furthermore, the finding supports the finding of G
UTILITY SERVICES Private Limited who has also found that monetary
incentives are important to employees as they improve employee performance.
 Finally, the results further showed that the non-financial performance incentives
(such as training, feedback to employees, career development, recognition,
employees’ participation and better work environment) the employees in G
UTILITY SERVICES Private Limited enjoy are adequate.
 But, it was uncertain if employee efficiency, in terms of speed and accuracy, did
not increase before employees started enjoying the non-financial performance
incentives given them.
 In like manner, it was uncertain if employee efficiency improved as soon as the
employees started enjoying the non-financial performance incentives given them
or whether they will not be willing to increase their efficiency without the non-
financial performance incentives they currently enjoy.
 However, employees in G UTILITY SERVICES Private Limited do their work
with no errors due to the non-financial incentives they enjoy and would like the
companies to ensure that employees continue to enjoy non-financial performance
incentives in order to make them increase their efficiency.
 Conclusively, on the bases of the formulated hypotheses, all the null hypotheses of
the study were rejected, thereby, giving room for the acceptance of all the alternate
hypotheses because the calculated values were all greater than the critical values at
2
5% level of significance using chi-squared (X ) test.
75
7.2 SUGGESTIONS:
1. Automobile Facility: Not many of the employees were satisfied with the
automobile facility or the reimbursement of petrol charges provided by their bank.
Hence, measures should be taken to improve the automobile facilities. Also, in this
era of sky high fuel prices, the reimbursement policies should be on time and
frequent. Another important step which can be taken into consideration is to
encourage the employees to go for more environment friendly and pocket friendly
plans like vehicle pooling or the vehicles which can run on comparatively cheaper
fuels such as on CNG.
2. On the other hand company employees living in prime locations of the city who
have easy access to the local or public transport, can be inspired to take local
means of transport and such employees should be given concessional monthly 204
passes by the company. This would not only reduce environmental vehicular
pollution to some extent but may also promote other employees to board on public
transport which besides supporting their pockets, also leads to sustainable
development of the nation.
3. A significant number of employees regard that in this fast changing world of
technologies and advancements they are lagging behind in job related trainings.
.Hence, more frequent and tech based training sessions must be conducted by the
employer.
4. Good furnishing, cleanliness and healthy work environment should be maintained
all the year long, at any cost. As it not only inspires all to work effectively but also
improves their performance.
5. Research has revealed that job security is the ultimate deciding factor. Thus, the
assurance of a permanent job in the employee’s mind accompanied with timely
promotions, monetary incentives and a word of appreciation will result in nothing
but faithful, loyal and most hardworking employees.
6. Employer should make all necessary provisions to provide regular feedback from
management about ongoing events. This will accelerate employee participation
towards achieving higher goals.
76
7. Company management should try to provide a motivational boss to its employees
as employees prefer getting motivated by an inspirational leader who supports
them in their work rather than the one who let them independently complete their
work & award them with money accordingly.
8. Satisfaction level of the employees can be highly increased only if the employee
welfare facilities provided to them are little bit upgraded.
9. Regarding the vacation trips provided to the employees, if they are made a bit
more frequent and flexible, would make a whole world of difference in the
employer’s performance.
10. It is an established fact that well paid employees perform better Thus, additional
allowances for extra or good work done would prove to be highly beneficial.
11. A man works for his family but in this highly competitive era especially in
companying sector the employees could not spare time for their families so to
make the employees free from mental pressure; they must be rewarded with some
family outings or picnics against of some remarkable achievements.
12. Increments are valued more and motivate the employees to perform better. So,
regular increments should be an essential feature of the HR practices.
13. A person with a stable job rather than the one, who gets higher salary, gives better
results and services. Thus, employer should aim to retain its present employees by
assuring them with job stability along with the additional facilities.
14. Employees must be handed over with authority to some extent to perform their job
as restrictions may limit the performance.
15. Employees must have a say in the process of decision as well as policy making, to
make them feel a member of inner circle.
16. All these suggestions will definitely lead to enhanced work potential and thus
better results in employer performance.
77
CONCLUSION
The study provided a direction for future research as the future research can also be
conducted to examine areas such as: effect of performance incentives on employee
efficiency in a service sector, using the same variables as those of this study, so that
results can be comparable; effect of financial performance incentives on employee
efficiency, using the same variables as those of this study, so that results can be
comparable; effect of non-financial performance incentives on employee efficiency, using
the same variables as those of this study, so that results can be comparable; impact of
performance incentives on employee efficiency, using the same variables as those of this
study, in order to know whether it is performance incentives that lead to employee
efficiency or vice versa; a comparative study between the level of financial performance
incentives and non-financial performance incentives provided to employees in the G
UTILITY SERVICES Private Limited to raise employee efficiency; effect of performance
incentives on non-financial performance of organization with a mediating role of
employee efficiency, using the same variables as those of this study, so that results can be
comparable.
78
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80
ANNEXURE
Questionnaire:
1. Name(OPTIONAL):
2. Gender : a.) Male b.) Female
3. Age : a.) Below 25 yrs. b.) 25-40 yrs. c.) 40&above
4. Education : a.) School education b.) IT/Diploma c.) UG d.) PG
5. Experience : a.) Less than 2 years b.) 2 to 5 years c.) More than 5 yrs
6. Occupation : a.) HR b.) Finance c.) Labour
7. Marital status : a.) Married b.) Unmarried
8. How do you feel about monetary incentives?
a.) Strongly Agree b.) Agree c.) Neutral d.) Disagree Strongly e.) Disagree
9. How do you feel about extra allowances?
10. How do you feel about frequency of bonus?
11. Do you feel about performance bonus is better than recognition?
12. How do you feel about medical facility?
13. How do you feel about amount of bonus?
14. Are you Satisfied with Employee Welfare Facility?
15. How do you feel about automobile facility?
81
16. I generally feel that the company is good work-life balance
a.) Yes b.) No c.) Sometimes
17. How you decided to leave the job due to in sufficient bonus?
18. I am proud to tell people where I work because the monetary facility is good.
19. I feel to move from this company because of various reasons
82

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A STUDY ON MONETARY INCENTIVES AND EMPLOYEE

Project work submitted to the

POST GRADUATE DEPARTMENT OF COMMERCE

NAZARETH COLLEGE OF ARTS AND SCIENCE

This is to certify that the project work entitled “A STUDY MONETARY

HEAD OF THE DEPARTMENT SIGNATURE OF THE GUIDE

This is to certify that project work entitled “MONETARY INCENTIVES AND

CHAPTERS TITLE PAGE NO

II REVIEW OF LITERATURE 13-19

III CONCEPTUAL FRAMEWORK 20-28

IV COMPANY PROFILE 29-38

V RESEARCH METHODOLOGY 39-43

VI DATA ANALYSIS AND INTERPRETATION 44-71

FINDINGS, SUGGESTIONS AND

6.1 GENDER OF THE RESPONDENTS 44

6.8 EXTRA ALLOWANCES OF THE RESPONDENTS 52

6.11 SATISFIED WITH EMPLOYEE WELFARE FACILITY 55

6.16 COMPUTATION OF CHI-SQUARE TEST STATISTIC 62

6.17 CHI-SQUARED (X2) TEST SHOWING THE RESULT OF 66

6.18 COMPUTATION OF CHI-SQUARE TEST STATISTIC 68

FOR HYPOTHESIS TWO

6.1 GENDER OF THE RESPONDENTS 44

6.2 AGE OF THE RESPONDENTS 45

6.3 EDUCATIONAL QUALIFICATION OF THE 47

6.5 MARTIAL STATUS OF THE RESPONDENTS 49

6.6 EXPERIENCE OF THE RESPONDENTS 50

6.7 MONETARY INCENTIVES OF THE RESPONDENTS 51

6.8 EXTRA ALLOWANCES OF THE RESPONDENTS 52

6.9 MEDICAL FACILITY OF THE RESPONDENTS 53

6.10 AMOUNT OF BONUS OF THE RESPONDENTS 54

6.11 SATISFIED WITH EMPLOYEE WELFARE FACILITY 55

6.12 AUTOMOBILE FACILITY OF THE RESPONDENTS 56

The researcher made a number of recommendations that; pay should be increased to

Monetary incentives can be understood as payment packages that individual workers

Money related impetuses considered as to be the foundation of today's representative

Money related motivators encompass an affinity to be supreme when there is a

Financial motivating forces are powerful in promising improved agreement

1.5 OBJECTIVES OF THE STUDY:

H0: There are no significant effects of financial performance incentives on employee

efficiency G UTILITY SERVICES Private Limited

H1:There are significant effects of financial performance incentives on employee

efficiency in G UTILITY SERVICES Private Limited.

1.7 SCOPE OF THE STUDY:

1.7.1 Geographical scope

1.7.2 Content scope

The study focused on monetary incentives as an independent variable and

1.7.3 Time Scope

1.8 SIGNIFICANCE OF THE STUDY

The study was of importance to the organizations in understanding the

The research was of useful to the future researchers on monetary incentives as a

• The time period of the study is one months.

Olayinka C.oloke et al. (2017), study on incentive package, employees productivity

Kongala Ramprasad (2013), on motivation and workforce performance in Indian

Pankaj Chaudhary (2012), Conducted on Effects of employees’ motivation on

Quratul- Ain Manzoor (2012), Study on Impact of Employees Motivation on

Andreas Ortmenn, Ralph Hertwing (2006), study on monetary incentives: usually

Debashish Bhattacherjee (2005) discusses the effects of group incentives in an Indian

3.1 CONCEPTUAL FRAME WORK

Whether dealing with accountants or experimental subjects, both accounting