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A
PROJECT REPORT
ON

A STUDY OF PROMOTION AND REWARD POLICY IN

STATE BANK OF INDIA AND AXIS BANK

Submitted in partial fulfillment of the requirements for the award of the degree
of
MASTER OF BUSINESS ADMINISTRATION (HR)
(Session:2021-2023)

Submitted To:- Submitted By:-

Ms Navita Komal
(Asst. Prof. in Mgmt)

SSD WOMEN’S INSTITUTE OF TECHNOLOGY, BATHINDHA

(AFFLIATED TO PUNJABI UNIVERSITY, PATIALA )

|
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ACKNOWLEDGEMENT

No serious and lasting achievement or success one ever achieves without the
friendly guidance and cooperation of so many people involved in work.
Foremost of all, I express my gratitude to the almighty for his blessings. I wish
to take this privilege to express my profound sense of respect to teachers for
their enlightened inspiring guidance, keen supervision, persistence
encouragement, valuable suggestion and constructive criticism during the
completion of the project. I place my thanks to all those who spared their time
and made it convenient for me to complete the research. I deeply acknowledge
their concern for my research. I would like to thank our Principal Dr. Neeru
Garg (Principal) for her kind support from time to time. And I am thankful to
our Ms (Project Guide) under who’s able guidance this project has been
undertaken.

A part from that I express my deep gratitude to the employees of organizations

who extended their kind help and co-operation in filling my questionaries’.

Thanking
you all

KOMAL
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PREFACE

The aim of the project is the practical application of the managerial knowledge
and skill learned during the course work of this program.
This project Report represents the facts, findings and recommendations
resulting from my understanding of the activities of "A Detailed Study of
Promotion and reward Policy at SBI, AXIS BANK AND BANK OF
BARODA ."
The scope of the project report is limited to the study of the company on the
basis of the primary data collected from field trip, briefings by company/Bank
executives, etc., and the secondary data collected from information received
from written and published document, online journals and articles.
I acknowledge that being a first year student my report may be rudimentary in
nature and based on data collected during summer internship program only. In
spite of my best efforts, there may be errors or omissions, which may please be
excused.
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CHAPTERS
PARTICULARS PAGE NO

1 COMPANY PROFILE

INTRODUCTION TO TOPIC
2

LITERATURE REVIEW
3

4 RESEARCH METHODOLOGY

5
DATA ANALYSIS AND INTERPRETATION

6
FINDINGS AND SUGGESTIONS

7
CONCLUSION

8
BIBILOGRAPHY
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CHAPTER :- 1.

COMPANY PROFILE
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STATE BANK OF INDIA

The State Bank of India, the country‘s oldest Bank and a premier in
terms of balance sheet size, number of branches, market capitalization and
profits is today going through a momentous phase of Change and
Transformation – the two hundred year old Public sector behemoth is today
stirring out of its Public Sector legacy and moving with an agility to give the
Private and Foreign Banks a run for their money.

The bank is entering into many new businesses with strategic tie ups – Pension
Funds, General Insurance, Custodial Services, Private Equity, Mobile Banking,
Point of Sale Merchant Acquisition, Advisory Services, structured products etc
– each one of these initiatives having a huge potential for growth. The Bank is
forging ahead with cutting edge technology and innovative new banking
models, to expand its Rural Banking base, looking at the vast untapped
potential in the hinterland and proposes to cover 100,000 villages in the next
two years.
It is also focusing at the top end of the market, on whole sale
banking capabilities to provide India ‘s growing mid / large Corporate with a
complete array of products and services. It is consolidating its global treasury
operations and entering into structured products and derivative instruments.
The Bank is changing outdated front and back-end
processes to modern customer friendly processes to help improve the total
customer experience. With about 11448 of its own branches and another
6500+ branches of its Associate Banks already networked, today it offers the
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largest banking network to the Indian customer.

According to a senior SBI official, the spot for an ATM counter is

taken on lease. It requires Rs5.2-5.5 lakh to set up the infrastructure and
almost Rs 3.5 lakh for an ATM machine. "All put together, the cost is around Rs
9 lakh per counter," he said. Going by the estimate, SBI would require a
whopping Rs 1,350 crore for setting up 15,000 ATMs

The Bank is also in the process of proving complete payment solution to its
clientele with its ATMs, and other electronic channels such as Internet banking,
debit cards, mobile banking, etc. With four national level Apex Training
Colleges and 54 learning Centres spread all over the country the Bank is
continuously engaged in skill enhancement of its employees. Some of the
training programmes are attended by bankers from banks in other countries.

Objective of this study that to examine the influence between pay level and
work performance, and to examine between benefits and work performance,
also to examine the relation between raise satisfaction and work performance
and to examine the influence between raise satisfaction and work
performance. This Promotion and reward policy of State Bank OF India in
Marketing Project study is conducted in conceptual way. Each organization
needs to maintain s balance between the internal sources of personnel
promotion and external sources by means of recruitment. Hence, promotion
must be based on consistent, fair and clear-cut policy. Workers are both
inwardly and outwardly driven by neutral rewards. The incentive system must
consider the two motivation wellsprings to be viable. All incentive systems
depend on the expectations being drawn in, carried.

The National Institute of Personnel Management has suggested a promotion

policy on the following:- Make a chart to clear all the ladder of Promotion.
Where there is a job analysis and planned wage policy, such chart is quite easy
to prepare. Making the promotion system clear to all concerned who may
initiate and handle cases of promotion system clear to all concerned who may
initiate and handle cases of promotion. Every Company needs to maintain a
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balance through hiring between internal staff promotion and external sources.

KEY AREAS OF OPERATION:

The business operations of SBI can be broadly classified into the key income
generating areas such as National Banking, International Banking, Corporate
Banking, & Treasury operations. The functioning of some of the key divisions is
enumerated below:

a) Corporate banking:-
The corporate banking segment of the bank has total
business of around Rs1,193bn. SBI has created various Strategic Business Units
(SBU) in order to streamline its operations. These SBUs are as follows:
a.1) Corporate Accounts
a.2) Leasing
a.3) Project Finance

b) National banking: -
The national banking group has 14 administrative
circles encompassing a vast network of 9,177 branches, 4 sub-offices, 12
exchange bureaus, 104 satellite offices and 679 extension counters, to reach
out to customers, even in the remotest corners of the country. Out of the total
branches, 809 are specialized branches. This group consists of four business
group which are enumerated below:
b.1) Personal Banking SBU
b.2) Small & Medium Enterprises

c) International banking: _
SBI has a network of 73 overseas offices in
30 countries in all time zones and correspondent relationship with 520
international banks in 123 countries. The bank is keen to implement core
banking solution to its international branches also. During FY06, 25 foreign
offices were successfully switched over to Finacle software. SBI has installed
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ATMs at Male, Muscat and Colombo Offices. In recent years, SBI acquired 76%
shareholding in Giro Commercial Bank Limited in Kenya and PT Indomonex
Bank Ltd. in Indonesia. The bank incorporated a company SBI Botswana Ltd. at
Gaborone.

d) Treasury: _
The bank manages an integrated treasury covering both
domestic and foreign exchange markets. In recent years, the treasury
operation of the bank has become more active amidst rising interest rate
scenario, robust credit growth and liquidity constraints. The bank diversified its
operations more actively into alternative assets classes with a view to diversify
the portfolio and build alternative revenue streams in order to offset the losses
in fixed income portfolio. Reorganization of the treasury processes at domestic
and global levels is also being undertaken to leverage on the operational
synergy between business units and network. The reorganization seeks to
enhance the efficiencies in use of manpower resources and increase
manoeuvrability of banks operations in the markets both domestic as well as
international

e) Associates & Subsidiaries: -

The State Bank Group with a
network of 14,061 branches including 4,755 branches of its seven Associate
Banks dominates the banking industry in India. In addition to banking, the
Group, through its various subsidiaries, provides a whole range of financial
services which includes Life Insurance, Merchant Banking, Mutual Funds,
Credit Card, Factoring, Security trading and primary dealership in the Money
Market.

Benefits received by an SBI employee

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The largest commercial bank in India, SBI comes out with

advertisements almost every year to recruit in the posts of assistants
and probationary officers. SBI offers an attractive package in order to
attract and retain the best of talents in its fold. The largest commercial
bank in India, State Bank of India (SBI) comes out with advertisements
almost every year to recruit in the posts of assistants and probationary
officers. SBI offers an attractive package in order to attract and retain the
best of talents in its fold. The various facilities offered to an employee in
the premier bank are:

-Salary Structure:
The basic salary of a newly joined SBI PO is more
than that of a PO who has joined in any other public sector bank
because SBI offers four additional increments at the initial stage to the
officers. Therefore, whatever the basic salary is for other banks, you will
get more than that in SBI. For assistants, however, the basic salary is
same for all the banks. Apart from this, an employee is eligible to get
Dearness Allowance, House Rent Allowance, Special allowance on the
basic pay and City Compensatory Allowance as an employee of the
bank.

-Contributory Provident Fund:

The employees with the bank are
governed under the Defined Contributory Provident Funds Scheme in
which the bank will make contributions to the PF account of the
employee and as per the latest data, the monthly contribution from the
bank is Rs 1641

Lease Facility:
The officers are eligible to get lease accommodation in
their place of posting and in lieu of the lease accommodation provided
by the bank, the HRA component will not be credited to the employee.
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The lease rental ceiling is very attractive in SBI as it pays around

30000/- for lease accommodation in Mumbai, the highest among all the
public sector banks. However, there is no such facility for the clerks, as
of now

Perquisites:
Apart from salary, the officers in SBI are eligible for
various perquisites like newspaper allowance, petrol allowance,
entertainment allowance, house maintenance allowance, books and
magazine allowance, briefcase allowance, reimbursement of telephone
bills etc. The total monetary value of perquisites in the bank comes to
around 5000/- on a monthly basis. The clerks in SBI are also eligible for
petrol allowance, entertainment allowance, newspaper grant etc on a
monthly basis

Medical Benefits:
The employees in SBI enjoy a medical benefit
scheme, unmatched in the public sector. There is 100% reimbursement
for self treatment whereas 75% of the total amount is reimbursed if the
treatment has been done for the dependent of the employee. Moreover,
the bank has tie-up with some of the best medical facilities around the
country and employees are eligible for cashless treatment in these
places

Home Travel Concession / Leave Fare Concession:

The officers are
eligible for leave fare concession or leave travel concession and it can
be taken in a block of 2 years or 4 years according to the choice of the
employee. The officers in scale 1 are eligible for reimbursement of fare
in AC II-tier of trains.

Concessional rate of interest for loans:

SBI employees are eligible for
loan under staff scheme in concessional rate of interest for housing
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loans, car loans etc. Moreover, the rate of interest for deposits is also
1% more than the general public for the staff members

Furniture Allowance:
This benefit is exclusively for officers as the bank
provides a one-time grant to the officers for furnishing of residence and
also an annual maintenance charge for the same. Presently, a scale I
officer is entitled to get Rs 150000 for furnishing of residence for which
the bank will recover a nominal rent on yearly basis

Two-year sabbatical to women staff:

Women employees of SBI can
take two-year sabbatical leave from work for purposes such as children's
education. Apart from all these monetary benefits and perquisites, SBI
offers the best promotion policy among all the public sector banks in
India and it rewards its top performers accordingly by giving them
challenging assignments. The learning opportunities are immense and
so the opportunities of growth in both personal and professional space.
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ICICI Bank
ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The
principal objective was to create a development financial institution for
providing medium-term and long-term project financing to Indian
businesses. Until the late 1980s, ICICI primarily focused its activities on
project finance, providing long-term funds to a variety of industrial
projects. With the liberalization of the financial sector in India in the
1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services
provider that, along with its subsidiaries and other group companies,
offered a wide variety of products and services. As India’s economy
became more market-oriented and integrated with the world economy,
ICICI capitalized on the new opportunities to provide a wider range of
financial products and services to a broader spectrum of clients. ICICI
Bank was incorporated in 1994 as a part of the ICICI group. In 1999,
ICICI became the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the New York Stock
Exchange. The issue of universal banking, which in the Indian context
meant conversion of long-term lending institutions such as ICICI into
commercial banks, had been discussed at length in the late 1990s.
Conversion into a bank offered ICICI the ability to accept low-cost
demand deposits and offer a wider range of products and services, and
greater opportunities for earning non-fund based income in the form of
banking fees and commissions. After consideration of various corporate
structuring alternatives in the context of the emerging competitive
scenario in the Indian banking industry, and the move towards universal
banking, the managements of ICICI and ICICI Bank formed the view that
the merger of ICICI with ICICI Bank would be the optimal strategic
alternative for both entities, and would create the optimal legal structure
for ICICI group's universal banking strategy. The merger would enhance
value for ICICI shareholders through the merged entity's access to low-
cost deposits, greater opportunities for earning fee-based income and
the ability to participate in the payments system and provide transaction-
banking services. The merger would enhance value for ICICI Bank
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shareholders through a large capital base and scale of operations,

seamless access to ICICI's strong corporate relationships built up over
five decades, entry into new business segments, higher market share in
various business segments, particularly fee-based services, and access
to the vast talent pool of ICICI and its subsidiaries. In October 2001, the
Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited,
with ICICI Bank. The merger was approved by shareholders of ICICI and
ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad
in March 2002, and by the High Court of Judicature at Mumbai and the
Reserve Bank of India in April 2002. Consequent to the merger, the
ICICI group's financing and banking operations, both wholesale and
retail, were integrated in a single entity.

Corporation of India (GIC), National Insurance Company Ltd., The New India
Assurance Company Ltd., The Oriental Insurance Company Ltd., and United
India Insurance Company Ltd. The shareholding of Unit Trust of India was
subsequently transferred to SUUTI, an entity established in 2003.

With a balance sheet size of Rs. 11,75,178 crores as on 31st March 2022, Axis
Bank has achieved consistent growth and with a 5-year CAGR (2016-17 to
2021-22) of 14% each in Total Assets & Advances and 15% in Deposits.
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 Half of the respondents (50 %) were satisfied with their salary

package which they are paid for their job. Salary happens to be
a satisfier for them.

• Interestingly, in case of training and development

programme almost equal response (a little over 40%) was
found regarding employees’ satisfaction and dissatisfaction.

• It appears that a little over 30 percent of respondents were

contented with the nature of job which includes flexibility,
workload on the employees, working hours etc. Those who
were not contented often felt overloaded with work of different
kinds in addition to their own work.

• In striking balance between responsibilities at work place and

family, that is, work-life balance, a little less than half
(48.75%) of the respondents were satisfied. They could realize
it along with their involvement in different tasks in the bank.
Those who found it difficult and felt unhappy were also in good
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number (36.25%).

• Majority (70.00%) of the respondent employees were happy

and satisfied with relationship with their colleagues at their
work place. This they felt is a healthy sign of development of
an organization. This they viewed leads to discharge their
responsibilities better and in this task they get cooperation and
guidance of other colleagues. Aarti et al. (2013) also reported
that employee’s relationship with management and other co-
employees as one of the major factor for improving job
satisfaction of employees.

• About one-third of the respondents (33%) were happy with

the provisions of job security in ICICI bank. But those who
were not satisfied with this were in higher proportion
(41.25%). This reflects that job security in ICICI bank is not up
to expectations of employees at large. Jagannathan and
Sunder (2011) in their study in Tamil Nadu opined that job
security has significant impact on job satisfaction of employees.

• Sizeable proportion of respondents i.e. more than half

(62.00%) were satisfied with the communication in the ICICI
bank. In other words, most of the employees were happy and
satisfied by the communication channels at all levels within
organization.

• About one-third of the respondents (33%) were happy with

the provisions of job security in ICICI bank. But those who
were not satisfied with this were in higher proportion
(41.25%). This reflects that job security in ICICI bank is not up
to expectations of employees at large. Jagannathan and
Sunder (2011) in their study in Tamil Nadu opined that job
security has significant impact on job satisfaction of employees.

• More than half (62.00%) of the respondents were satisfied

with the communication in the ICICI bank. In other words,
most of the employees were happy and satisfied by the
communication channels at all levels within organization.

• On the dimension of autonomy i.e freedom to take

independent decision with regard to job related matters, clear
cut trend did not emerge as equal number of employees
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(37.50%) were satisfied and as well as dissatisfied with it.

Jagannathan and Sunder (2011) also reported similar results in
their study on 200 employees of LIC in Tamil Nadu. They found
that sizable proportion of employees were not satisfied with the
nature of job.

• Most of the employees were satisfied with the welfare

measures at the work place as they expressed of having no
anxiety, tension and breakdown of emotions in dealing with
their superiors and subordinates. This means there is
cooperative and helpful attitude among employees. Such
respondents accounted for 38.75 per cent.

• Sizeable proportions (48.75%) of employees were not

satisfied with the reward and recognition system of the ICICI
bank. They mentioned that the rewards and recognitions are
not commensurate with the nature of work i.e. workload,
flexibility and working hours.

CHAPTER:- 2.
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INTRODUCTION TO
TOPIC

PROMOTION
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Each organization needs to maintain a balance between the internal

sources of personnel promotion and external sources by means of
recruitment. Hence, promotion must be based on consistent, fair and
clear cut policy. The National Institute of Personnel Management
(NIPM) has suggested a promotion policy on the following lines:
Drawing up an organization chart to make clear to all the ladder of
promotion. Where there is a job analysis and a planned wage policy,
such chart is quite easy to prepare. Making the promotion system
clear to all concerned who may initiate and handle cases of
promotion. Though departmental heads may initiate promotion, the
final approval must lie with the top management, after the personnel
department has been asked to check from its knowledge whether
any repercussion is likely to result from the proposed promotion. All
promotions should be for a trial period to ascertain whether the
promoted person is found capable of handling the job or not.
Normally, during this trial period, he draws the pay of the higher
post, but it should be clearly understood that if ―he does not make
the grade‖ he will be reverted to his former post and former pay
scale.

Promotions :-
Promotion or upgrading maintains organisational
effectiveness through maintenance of employee morale and favourable
attitude towards the organisation. Promotion of employees also enables
the organisation to utilise expertise to the optimum level by providing
adequate opportunities to those who have developed it through training
and experience within the organisation. Promotion should be fair and on
the basis of merit of the employees, as promotion is a great morale
booster for an employee. Promotions are a major incentive for hard work
and better performance. They usually mean more power, salary and
perks along with the responsibilities of the job. A few characteristics of
Promotion are that it is: ⚫ a recognition of a job well done by an
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employee, a device to retain and reward and employee for his or her
years of service to the company, to increase individual and
organisational effectiveness, to promote a sense of job satisfaction in the
employee, to build loyalty, morale and a sense of belongingness in the
employee, and to impress upon others that opportunities are open to
them also.

Promotion Policy :-

As mentioned earlier, promotion is the incentive for getting motivated

and staying motivated. Sometimes favouritism is shown or else some
employees are discriminated against on the basis of sex, age and so on,
and are overlooked when promotion time comes up. Also if an employee
is being constantly bypassed for promotion, no matter for what reasons,
the employee will tend to be resentful, angry and hurt. So, it is very
important that all the promotions in an organisation are properly
monitored and for this there is the need of a promotion policy.
Organisational policy on promotion helps to state formally the
organisation's broad objectives, and to formulate both the organisation's
manpower and individual career plans. Such documents are being
increasingly issued by organisations in keeping with the changed
environment of employee awareness and the increasing emphasis on
career planning.
One of the first requirements of a promotion policy is a statement of the
ratio of internal promotions to external recruitment at each level, the
method and procedure of selection (trade-test, interview), and the
qualifications desired.
Such a statement would help individuals as well as manpower planners
to project numbers of internally available candidates for vacancies. In
some organisations, such a ratio is fixed by a collective bargaining
agreement, or in government and public sector it is laid down in rules.

REWARDS SYSTEMS
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―Fat pay package, quicker promotions and incentives are not enough
anymore. Employers need to listen what employees want. A reward or
incentive can be anything that attracts a worker ‘s attention and stimulates him
to work. In the words of Bureckm and Smith ―reward systems is a plan or
programme to motivate individual or group performance. An incentive
programme is most frequently built on monetary rewards, but also includes a
variety of non-monetary rewards or prizes

The use of incentives assumes that people ‘s actions are related to their skills
and abilities to achieve important longer run goals. Even though many
organizations by choice or by tradition or contract. In fact, rewards on non-
performance criteria, rewards should be regarded as a ―pay off the
performance.

Jack Zigon defines rewards as ―something that increase frequency of an

employee action‖. This definition points to an obvious desired outcome of
rewards and promotion: to improve performance.

An incentive plan has following important features: -

1. An incentive plan may consist of both monetary ‘and non-monetary‘

elements. Mixed elements can provide the diversity needed to match the
needs of individual employees.
2. The timing, accuracy and frequency of incentives are the very basis of a
successful incentive plan.
3. The plan requires that it should be properly communicated to the
employees to encourage individual performance, provide feedback and
encourage redirection.

EXPLAIN DETERMINANTS OF REWARDS?

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These features are contingencies, which affect the suitability and design of
rewards to varying degrees.
The effective use of rewards depends on 3 variables.

- Individual
-Work situation
- Incentive plan

1. The individual and the rewards:

Different people value things
differently. Enlightened managers realize that all people do not attach the
same value to monetary rewards, bonuses, prizes or trips. Employees ‘view
these things differently be of age, marital status economical need and future
objectives. however even though employees ‘reaction to rewards varies
greatly, rewards must have some redeeming merits. For e.g., there might be a
no of monetary and non-monetary rewards to motivate

2. The work situation:

This is made up of four important elements,

1) Technology:
Machine or work system, if speed of equipment operation
can be varied, it can establish range of the rewards.

2) Satisfying Job Assignment:

A worker ‘s job may important a number
of activities that he finds satisfying. Rewards may take the form of earned time
off, greater flexibility in hour worked, extended vacation time and other
privileges than individual values.
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
3) Feedback: -
A worker needs to be able to see connection between
works and rewards. These responses provide important reinforcement.

4) Equity: -
Worker considers fairness or reasonableness as part of
the exchange for his work. Rewards in general are important motivator.
Their effectiveness depends upon 3 factors.

- Drives
- Preference value
- Satisfying value of the goal objects.

Types of Rewards:

The achievement and advantage got by workers for their job

performance in bank is known as reward. Employees join the Bank inside
certain desire for reward. Some might expect for better pay and wages.

 Like as, financial prizes while other might look for offices like settlement,
transportation, health, security and different advantages as reward.
Accordingly, monetary and non-financial advantages provided by Bank
to representatives to their performance regardless of their expectation
are known as reward.

 Rewards can be anything in the form of pay, benefits, facility and or

status paid by organization to employees that motivates employees for
the best performance. Rewards can be classified on the various bases.
Some of them are discussed as below:
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1. Classification on the basis of feelings:

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• Intrinsic reward:
The Reward connected with the internal satisfaction of an employee for
their performance saw from their side is known as intrinsic reward. This
reward is experienced by employees himself or herself saw from the
results of their activity performance.
This reward isn't related to what bank or an organization provides to an
employee. This type of reward can be intangible (not touchable or felt or
seen by employees). This is achievement-oriented reward. Employees
feel pleasure or proud for this type of reward. Job satisfaction, sense of
achievements, considering oneself as an important member of any bank
or an organization in some of the outcomes of this type of rewards.
There are some types of job responsibility realize intrinsic reward to the
employees:
• Interesting job
• Challenging job
Job autonomy

Extrinsic reward:
Reward was gotten by an employee from an outer source is known as
extrinsic reward. Salary, Wages, recognition, praise, bonus, facilities
medal, certificate of appreciation, promotion etc. provided by bank or an
organization for job performances are the examples of extrinsic reward.
This reward has a physical appearance and can be unmistakable
(tangible) which is touched or felt and seen by an employee. This type of
reward affects many employees, special attention should be provided
while making the arrangements for the extrinsic reward. This type of
reward must be transparent, genuine, true & fair, and on the
performance based.

2. On the basis of Economic Value:-

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Financial Reward :-
If the employees are financially rewarded for their
performance Is known as financial, it reward.
Financial reward is related to the improvement of
employee's financial well-being. It helps to fulfil the basic and other
requirement of employees. It is known as the most
important and effective tool for motivation. It includes:

a. Salary and wages

b. Bonus, commission, grade
c. Paid leave
d. Pension, gratuity, insurance facility
e. Accommodation, transportation
f. Profit sharing

Non-Financial Reward: -
Rewards which are not related to Finance are called non-financial
reward.
Financial reward doesn't always motivate the employees. This
reward is not related with the economic well-being. An organization or bank
has to make an appropriate combination of financial and non-financial reward.
Non-financial rewards include:

• Favourable work environment

Standard and well facilitated workplace

Attractive position

Responsibility of choice

3. On the Basis of Evaluation: -

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Performance based reward: Which Reward is based on the job

performance is Known as performance-based reward.
This provision, high produce employees will be
rewarded highly and low produce employees will be rewarded at low
level. Like as, employees produce higher quality will receive high level of
reward and employees produce lower level of quality will receive Lower
level of reward.
It is not just distributed because of being associated of spending more
time in an organization or bank. It was paid for the outstanding
performance or remarkable contribution made by an employee.
Performance based reward are as under:

• Piece rate system:

Reward which is based upon the produced unit is
known as piece rate system. In this method, rate is fixed in advance.
Various types of piecework pay plans are in practice.

• Additional wages:
Minimum work standard and the rate of reward
is priory fixed to be paid for an employee. Employees who produce
above the pre-decided minimum level of output will be paid additionally.
For example, if an employee is to produce 100 units in a day for which
Rs. 5.00 per unit is fixed and suppose if she produces 140 units in a day
then, she receives Rs. 200.00 extra for extra unit production. This is
motivating other employees and also to produce higher level of output.
This may deteriorate the quality and optimal utilization of resources.

Commission:
In these types of reward, specified commission is paid to
the employees. This type of reward is generally related on sales figure.
For example, if sales commission is 3% then employees will receive Rs.
3000.00 for the sales of Rs. 100,000.00.

• Bonus:
If an organization or bank distributes certain percentage of profit
to an employee, the lump sum pay paid in addition is the regular pay as an
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incentive for performance, it is known as a bonus. For e.g., if 10% of bonus

amount of Rs. 5000.00 will be distributed to each of the employees.

CHAPTER :-3
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LITERATURE
REVIEW

There is a large body of literature, including research literature, on reward and

recognition programmes. Many of the studies focus on the effects of rewards
on task interest and performance and are found in the literature concerned
with motivation: both intrinsic and extrinsic motivation in intrinsically
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motivated behaviour there is no reward except with the task itself. Reward and
recognition programmes come within the discussion on extrinsically motivated
behaviour that occurs when an activity is rewarded by incentives not inherent
in the task (Deci, 1971).Many contemporary authors have also defined the
concept of motivation. Motivation has been defined as: the psychological
process that gives behaviour purpose and direction (Kreitner, 1995); a
tendency to behave in a purposive method to achieve specific, unmet desires
an inner force to gratify an unsatisfied need (Higgins, 1994);and the will to
accomplish (Bedeian, 1993). For this paper, motivation is operationally defined
as the inner force that drives individuals to achieve personal and organizational
goals. Understanding what motivates employees is one of the key challenges
for managers. Although it is not possible directly to motivate others, it is none
the less important to know how to influence what others are motivated to do,
with the overall aim of having employees identify their own welfare with that
of the organization (Bruceand Pepitone, 1999).In general terms rewards
programmes come within the overall concept of compensation strategies
which are defined as the “deliberate utilization of the pay system as an
essential integrating mechanism through which the efforts of various sub-units
or individuals are directed towards the achievement of an organization’s
strategic objectives”(Gomez-Mejia and Balkin, 1992). They are management
tools that hopefully contribute toa firm's effectiveness by influencing individual
or group behaviour (Lawler and Cohen,1992). All businesses use pay,
promotion, bonuses or other types of rewards to encourage high levels of
performance .At a minimum, employees expect the organization to provide fair
pay, safe working conditions, and fair treatment. Like management, employees
often expect more, depending on the strength of their needs for security,
status, involvement, challenge, power, and responsibility. Just how ambitious
the expectations of each party are vary from organization to organization. For
organizations to address these expectations an understanding of employee
motivation is required .They postulate that as it is people who make a business
succeed – or fail – it is the organization’s chief responsibility to motivate their
people so that they will assure success. The authors believe that each human
being has the potential for creativity and for achieving goals. The infinite
question is how organizations reach this potential and how they stimulate
creativity and foster in their people the desire to succeed and to achieve self-
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fulfilment through their work. The common theme of the above authors is the
belief that people need to be respected and treated as precious human capital,
more essential to an organization’s effectiveness than its financial capital.
People are now seen as the primary source of a company’s competitive
advantage. Therefore, the way people are treated increasingly determines
whether an organization will prosper or even survive (Lawler,2003).
Organizations are under constant pressure to enhance and improve their
performance and are realizing that an interdependent relationship exists
between organizational performance and employee performance. In the
following section the focus will be on the motivational theories and the impact
that these theories have on enhancing employee performance

One example is Vodafone Australia. When Vodafone introduced the live your
life reward and promotion program, they had turnover rates around 30 per
cent per year. That rate has reduced to just 18 per cent (Human Resources
2005) predominantly due to the company focusing on its culture and its
people. The live your life incentive program is a major part of the people
retention initiative. By offering experiential benefits as part of their
remuneration structure, the dynamic Managing Partner encouraged Gardens
to be known as an innovative, progressive and fun law firm. The National
Australia Bank approached live your life to customize a team based
experiential reward program for a project that involved employees in every
branch of the Bank across Australia, including remote regional areas. Live your
life customized a specific team-based reward program including the
development of specific team experiences for branches in regional areas. The
customized live your life team-based reward program was delivered with great
success.

CHAPTER:- 4.
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DATA ANALYSIS AND

INTERPRETATION

1. I am aware of various rewards monetary and non monetary reward

schemes of SBI.
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Category No. of respondents Percentage

Strongly Disagree 10 10%

Disagree 35 35%
Neither Agree or 30 30%
Disagree

Agree 20 20%
Strongly Agree 5 5%
Total 100 100%

Interpretation:
The above pie chart indicates that 10% of the employees strongly disagreed,
35% disagreed,30% neither agreed nor disagreed ,20% agreed and 5% strongly agreed that they
were aware of the various rewards schemes (monetary & non monetary) of ABC Corp. Since the
sample size was 100, the percentage is equal to the no. of employees

2. I am aware about the basic criteria on which various awards are based.
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Category No. of respondents Percentage

Strongly Disagree 5 5
Disagree 15 15
Neither Agree or 35 35
disagree
Agree 40 40
Strongly Agree 5 5
Total 100 100%

Interpretation:
The above pie chart indicates that 5% hence 5 employees
strongly disagreed, 15% disagreed, 35%neither agreed nor disagreed, 40%
agreed, 5% strongly agreed that they were aware of the basic criteria on which
rewards were based.
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3. Rewards are based on clear and objective criteria

Category No. of respondents Percentage

Strongly Disagree 5 5
Disagree 5 5
Neither Agree or 40 40
disagree
Agree 30 30
Strongly Agree 20 20
Total 100 100%
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Interpretation:
The above pie chart indicates that 5% of the employees and
hence 5 employees strongly disagreed, 5% disagreed, 40% neither agreed nor
disagreed, 30% agreed and 20% strongly agreed that the rewards were based
on the objective criteria in ABC Corp.

4. Rewards are given as per criteria

Category No. of respondents Percentage

Strongly Disagree 25 25%
Disagree 15 15%
Neither Agree or 40 40%
disagree
Agree 15 15%
Strongly Agree 5 5%
Total 100 100%
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Interpretation:
The above chart indicates that 25% and hence 25 employees
strongly disagreed, 15% disagreed, 40% neither agreed nor disagreed, 15%
agreed, 5% strongly agreed that the rewards were given as per the criteria.

5. Favoritism prevails when it comes to giving away awards

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Category No. of respondents Percentage

Strongly Disagree 30 30%
Disagree 10 10%
Neither Agree or disagree 45 45%
Agree 10 10%
Strongly Agree 5 5%
Total 100 100%

Interpretation:
The pie chart indicates that 30% employees hence 30, strongly
disagreed, 10% disagreed, 45% neither agreed nor disagreed,10% agreed and
5% strongly agreed that favoritism prevails while giving away the rewards.

6. Deserving people are rewarded

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Category No. of respondents Percentage

Strongly Disagree 5 5%
Disagree 15 15%
Neither Agree or disagree 30 30%
Agree 40 40%
Strongly Agree 10 10%
Total 100 100%

Interpretation:
The pie chart indicates that 5% employees hence 5 strongly disagreed, 15%
disagreed, 30% neither agreed nor disagreed 40% agreed and 10% strongly agreed that deserving
people were rewarded in the organization.

8. Awardees get adequate Publicity

Category No. of respondents Percentage

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Strongly Disagree 5 5%
Disagree 10 10%
Neither Agree or disagree 30 30%
Agree 40 40%
Strongly Agree 15 15%
Total 100 100%

Interpretation:
The above pie chart indicates that 5% employees hence 5,
strongly disagreed, 10% strongly disagreed, 30% neither agreed nor disagreed,
40% agreed, 5% strongly agreed that the awardees get adequate publicity.

9. Good performance is appreciated and recognized by top

management
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Category No. of respondents Percentage

Strongly Disagree 5 5%
Disagree 10 10%
Neither Agree or disagree 30 30%
Agree 40 40%
Strongly Agree 15 15%
Total 100 100%

Interpretation:
The above pie chart indicates that 5% strongly disagreed, 10%
disagreed, 30% neither agreed nor disagreed, 40% agreed, 15% strongly agreed
that good performance is recognized and appreciated by top management.

11. Quantum of rewards is proportionate to one‘s achievement.

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Category No. of respondents Percentage

Strongly Disagree 5 5%
Disagree 20 20%
Neither Agree or disagree 40 40%
Agree 20 20%
Strongly Agree 15 15%
Total 100 100%

Interpretation:
The above data indicates that 5% employees strongly
disagreed, 20% diagreed,40% strongly neither agreed nor disagreed, 20%
agreed,15% strongly agreed that quantum of rewards is proportionate to one‘s
achievement in ABC Corp.

12. Performance linked monetary rewards are reasonable at the

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company.

Category No. of respondents Percentage

Strongly Disagree 10 10%

Disagree 5 5%
Neither Agree or disagree 45 45%
Agree 35 35%
Strongly Agree 5 5%
Total 100 100%

Interpretation:
The above data indicates that 10% employees strongly
disagreed, 5% disagreed, 45% neither agreed nor disagreed 35% agreed and
5% strongly agreed that the performance linked monetary rewards are
reasonable in the company.
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RESEARCH AND METHODOLOGY

1.1) Title of Study:-

A detailed study of promotion and reward policy of
different Banks.

1.2) Need and Significant of Study:-

In today‘s business scenario
promotion and rewards is most effective tool of motivating employees. People
mostly leave job because of compensation factor.

1.3) Why Reward System Is Required:-

These components will be designed, developed and maintained on the basis of

reward strategies and policies which will be created within the context of the
organizations between strategies, culture and environment: they will be
expected to fulfil the following broad aims;
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1. Improve Organizational Effectiveness:

Support the attainment of the
organization's mission, strategies, and help to achieve sustainable, competitive
advantage

.2. Support and change culture:

Under pin and as necessary help to change
the organizational culture as expressed through its values for performance
innovation, risks taking, quality, flexibility and team working

3. Achieve Integration:
Be an integrated part of the management process of
the organization. This involves playing a key role in a mutually reinforcing and
coherent range of personal policies and process

4. Supportive Managers:
Support individual managers in the achievement of
their goals.

5. Motivate Employees:
Motivate employees to achieve high levels of quality
performance

.6. Compete in the Labour market:

Attract and retain high quality people

1.4) Objectives of the Study :-

Primary -
To study various factors relating to Rewards and promotion in
bank.
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Secondary:-
Study about Criteria for rewards and promotion

.To know about the Eligibility for rewards and promotion

To study the Impact of Rewards and promotion on behaviour of employees.
To study the Benefits derived by Rewards and promotion
.To give Recommendation and Suggestions to the company

1.5) Research and Design:-

This is descriptive study including various factors of
Rewards and promotion like criteria for promotion and rewards, eligibility,
impact on behaviours of employees, frequency for rewarding, benefits derived
and recommendation and suggestions

1.6) Universe:-
Universe is employees of State Bank of India

1.7) Sample and Sampling Procedure:-

Sample taken from the study consist of
employees of SBI. Samples were selected from various departments like
Administration, Development, quality control, Customer support, research and
development, finance and accounting, information and technology, training,
human recourse and marketing

1.8) Tools of Data Collection :-

An interview schedule was used for

data collection, apart from personal interview

1.9) Limitation of Study:-

Sample size:
The present study is carried out for academic purpose,
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so sample size is restricted.

1. No generalization:
The study is restricted to an organization under
study, so it cannot be generalized for all employees in other
organization.
2. Rewards and promotion are complex problem and researcher has
attempted to study most appropriate factors but chances cannot be
ruled out that some areas may have been untouched or not adequately
touched

CHAPTER-6

FINDINGS
AND SUGGESTIONS
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MAJOR FINDINGS:

- All most Employees are agreed that they were aware of the basic
criteria on which rewards were based.

- Few most Employees are strongly agreed that the rewards were based
on the objective criteria in Abhyudaya Co-operative Bank Ltd.

- Few most Employees are strongly disagreed that favouritism prevails

while giving away the rewards.

- Few most Employees are agreed that the awardees get adequate
publicity.
Some most Employees are agreed that good performance is recognized
and appreciated by top management.

- Some most Employees are agreed that seniors shared the credit of
good work with their subordinates.
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- 60% Employees are agreed that quantum of rewards is proportionate

to one's achievement in Abhyudaya Co-operative Bank Ltd.

- Some most Employees are agreed that the performance linked

monetary rewards are reasonable in the company.

- Some most Employees are agreed that the Promotion is based on

Knowledge and Skill in the Bank.

- 45% Employees are agreeing that the rewards were given as per the
criteria.

- 55% Employees are strongly agreed that the rewards were based on
the objective criteria Bank

- All Employees are agreed or strongly agreed that good performance is

recognized and appreciated by top management.

- Most of Employees are agreed or strongly agreed that seniors share

the credit of good work.

SUGGESTIONS:

1. It is clear from the finding of the survey that most of the employees are
aware about and satisfied with policies regarding Promotion and Reward
offered by the Bank and consider them to be fair enough. However, it was
understood that actual reward provided to them are not up to level of
performance of some of the employee.

2. Apart from the survey conducted with various employees, I have had
discussion with them regarding the survey subject. It was understood and hence
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suggested that Bank should employ such reward structure that is directly linked
to performance of the employee. Further, such reward system may affect
performance of the employee in a positive manner.

3. It was also understood during tenure at your Bank and especially during
Survey that many of old employees have already retired or are going to retire in
near future. It is suggested that liberal promotion policy should be employed to
fill vacant posts on account of retirement and more vacancy should be filled on
the basis of merit.

4. When I interact with employees i come to know that the reward is common
for all but bank have to give reward on the performance base.

5. In addition to surveys, interaction of HR officers with the employees should

also be given space if possible.

6. Suggestions and discrepancies regarding the various reward schemes should

be openly invited from the employees and should be materialized into action as
soon as possible should not be dumped as paperwork.

7. Formal and Informal meetings: should be conducted to judge the employee

satisfaction, regarding various services & new way out should be searched to
tackle the same
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CONCLUSION:

The responses obtained indicate that the employees were fairly satisfied
with the reward system of bank ltd.
Although a small sample size was taken to analyse it, every proportion
of population was represented by the sample appropriately.

The questions were designed using basic principles into consideration

i.e. fairness, openness, timeliness etc.
The responses thus obtained were then analysed to arrive at the
conclusion.
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The responses obtained in the two extremes were very less, i.e. every
question was responded by the employees avoiding the two extremes of
strongly agree & strongly disagree this can be justified by the fact as
explained above in the limitations that the employees were hesitant and
behaved as if some confidential information was being extracted from
them or that it indicates that employees were fairly satisfied with the
management regarding the various reward system schemes.

Majority of the responses obtained were that of agree; i.e.

approximately 30 to 40% of the employees responded to the questions
like rewards are given as per a criterion that indicates that etc.,
indicating that organization had been fairly successful in keeping the
reward system schemes balanced and satisfactory.
Also it was observed that most of the executives took a lot of time in
responding and were less cooperative and open as compared to the non-
executive employees, also the satisfaction level was high in the higher
grade above.
The SBI and Axis bank It’d. Employees were enthusiastic and
cooperative in their responses as well as interactive.
After detailed analysis done band wise or grade wise it can be
conducted that the satisfaction level of the employees as well as their
awareness regarding rewards & promotion schemes was fairly well, i.e.
the employees were fairly satisfied with the reward System.