“A STUDY ON REWARDS AND RECOGNITION ON

EMPLOYEE MOTIVATION AT ICICI BANK LIMITED”

A project submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the Faculty of Commerce

Academic year 2024-25

Submitted By

Harsh Dinesh Apte

Seat No. IB66

Under the Guidance of

Asst. Prof. Aditi Damle

Janata Shikshan Mandal-

Sau Jankibai Dhondo Kunte Commerce College

Alibag, Raigad 402201

 DECLARATION

I the undersigned Mr. Harsh Dinesh Apte here by, declare that

The work embodied in this project work titled “A Study on Reward and Recognition on Employee
Motivation At ICICI Bank Limited.”

forms my own contribution to the research work carried out under the guidance of Prof. Aditi Damle is a
result of my own research work and has not been previously submitted to any other University for any other
Degree/ Diploma to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated as such and
included in the bibliography.

I, here by further declare that all information of this document has been obtained and presented in
accordance with academic rules and ethical conduct.

Name and Signature of the learner

Certified by

Prof. Aditi Damle

 ACKNOWLEDGEMENT

To list who have helped me is difficult because they are so numerous and the depth is so enormous.

I would like to acknowledgement the following as being idealistic channels and fresh dimension in the
completion of the project.

I take this opportunity to thanks The University of Mumbai for giving me chance to do this project.

I would like to thanks my principal Dr Sonali Patil for providing the necessary facilities required for
completion of the project.

I take this opportunity to thanks our Department In-charge Miss Shweta Mokal for her moral support and
guidelines.

I would also like to express my sincere gratitude towards my project guide Prof Aditi Damle whose
guidelines and care made the project successful.

Lastly,

I would like to thanks each and every person especially my parents and peers who supported me throughout
my project.

MR. HARSH DINESH APTE

 EXECUTIVE SUMMARY

This study explores the impact of rewards and recognition on employee motivation at ICICI Bank Limited,

one of India’s leading private sector banks. Employee motivation plays a crucial role in enhancing

productivity, job satisfaction, and overall organizational success. The research investigates how different

reward systems both monetary and non-monetary influence employee engagement, performance, and

retention.

The study examines key components of reward management, including financial incentives (bonuses, salary

increments, and performance-based pay) and non-financial rewards (appreciation, career growth

opportunities, and workplace recognition). By analyzing employee feedback, surveys, and case studies, the

research identifies the most effective strategies that drive motivation within ICICI Bank.

Findings suggest that a well-structured reward and recognition program significantly boosts employee

morale and loyalty, leading to higher efficiency and lower attrition rates. However, challenges such as

perceived fairness, consistency in reward distribution, and alignment with organizational goals need to be

addressed for maximum impact.

The study concludes that a balanced mix of financial and non-financial rewards fosters a positive work

culture, enhances motivation, and improves overall performance. Recommendations include customized

incentive programs, continuous feedback mechanisms, and transparent recognition systems to optimize

employee satisfaction and drive long-term success at ICICI Bank.

 INDEX

Chapter No Particular Page No.

1. Introduction 1-3

2. Industry Profile 4-19

Literature Review
3. 20-38

4. Research and Methodology 39-42

5. Data analysis and interpretation graphs 43-54
6. Finding 55-56

7. Conclusion 57

8. Bibliography 58-59

9.
Annexure 60-61
 CHAPTER 1

INTRODUCTION

This study is conducted to determine ― the reward and recognition system and its impact on employee
motivation. The organization selected for the purpose is ― ICICI Bank Limited, Kottayam.

Indian banking industry has a vital role in promoting public lending and public savings, and is widely
recognized as a significant factor for the economic development of the country. Now-a-days managing talent
in the banking sector is the most important Human Resource challenge all over the world. The employees
who are pleased with rewards are more motivated to contribute and can do more effectively. To retain well
experienced and efficient workforce in an organization human resources are most important. Motivated
employees can help in the development of organization performance and profits. The present study is to
know about the impact of rewards and recognition on employee.

Reward system is an important tool that management can use to channel employee motivation in desired
ways. In other words, reward systems seek to attract people to join the organization to keep them coming to
work, and motivate them to perform to high levels. The reward system consists of all organization
components including people processes rules and decision-making activities involved in the allocation of
compensation and benefits to employees in exchange for their contribution to the organization.

In order for an organization to meet its obligations to shareholders, employees and society, its top
management must develop a relationship between the organization and employees that will fulfill the
continually changing needs of both parties. At a minimum the organization expects employees to perform
reliably the tasks assigned to them and at the standards set for them, and

to follow the rules that have been established to govern the workplace. Management often expects more: that
employees take initiative, supervise themselves, continue to learn new skills, and be responsive to business
needs. At a minimum, employees expect their 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.

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The fundamental for the green functioning of an organisation is that its personnel work difficult and stay
motivated no matter how hard is the client to deal with. This can most effective take place if the employees
find a riding force in the direction of working in a better manner from within an agency. An organization can
reciprocate to its employees in no manner better than rewards and recognition. It has been statistically
proved that common indulgence of rewards and popularity along with regular appreciation and most
importantly constructive criticism were the cause for the employees of any organisation to work better than
they used to. By enforcing unique rewards and reputation, companies show that the employee is now not
noted and that their paintings are dearly valued. Organizational fulfilment is driven by way of satisfied and
motivated employees. Satisfaction and motivation may be enhanced through rewards and recognition.
Recognizes and rewards are achievements which have a first-rate impact on a program, to assignment and
person pastime that contributes to the vision and to the pursuit of excellence.

This study helps to analyze the attitude of employee towards the reward system at ICICI Bank. More
specifically it helped the company to investigate which of the reward system is most preferred and what
other reward motivate employees.

1.1 STATEMENT OF THE PROBLEM

The problem being discussed is current as well as relevant for any organization as employees are the main
resource for any organization and these rewards directly have an impact on them. Motivation is an intangible
and subjective term and is related to human behaviour while reward systems are objective and clearly well-
defined and attempting to relate one subjective concept to an objective one is a daunting task. The central
concern of this research is to examine the impact of reward systems as a motivation tool for employee’s
performance in ICICI Bank. This is a problem area as most employees in the banking sector is always
leaving one organization for another; mainly because they are not satisfied with the rewards they are being
given. It has been observed that the most talented employees are the ones who move out of the organization
which impacts the banking industry. Therefore, this study aims to discover, the type of rewards that motivate
employees and if there is a comprehensive total rewards system in the sector.

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1.2 RELEVANCE AND SCOPE OF THE STUDY

There are many factors, which lead to the success of an organization. Hence the present study is to attain a
deep insight into employee’s perception and understanding of the rewards system that is available to the
employees. This research hopes to articulate more knowledge that will enable organizations to pay better
attention when implementing reward strategies while also identifying ways to better motivate employees
better in this sector. The study focused on the different aspects covering employee motivation and the
various reward practices providedby the company, this might be helpful for the management to identify the
strengths, weakness, opportunities and threats of the company and also in assessing the growth potential of
the company and in framing future policies.

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 CHAPTER 2

INDUSTRY PROFILE

BANKING INDUSTRY

The Indian banking sector has emerged as one of the strongest drivers of India’s economic growth. The Indian

banking industry has made outstanding advancement in last few years, even during the times when the rest

of the world was struggling with financial meltdown. In any economy banking sector plays a vital role for

overall development of agriculture, small business and different industries. In the pre-nationalization period

bank had been managed by few people who were serving their vested interest for their personal gains.

Indian banking isthe lifeline of the nation and its people. Banking has helped in developing the vital sectors

of the economy and usher in a new dawn of progress on the Indian horizon. The sector has translated the

hopes and aspirations of millions of people into reality. India's economic development and financial sector

liberalization have led to a transformation of the Indian banking sector over the past two decades. For the

past decades India's banking system has several outstanding achievements to its credit. The most striking is

its extensive reach. It is no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian

banking system has reached even to the remote corners of the country. This is one of the main reasons for

India's growth process.

As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and well- regulated.

The financial and economic conditions in the country are far superior to any other country in the world.

Credit, market and liquidity risk studies suggest that Indian banks are generally resilient and have

withstood the global downturn well. Indian banking industry has recently witnessed the roll out of

innovative banking models like payments and small finance banks. RBI’s new measures may go a long

way in helping the restructuring of the domestic banking industry.

The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46 foreign banks, 56

regional rural banks, 1485 urban cooperative banks and 96,000 rural cooperative banks in addition to

cooperative credit institutions As of November 2020, the total number of ATMs in India increased to

209,282.

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2.1 BUISINESS PROCESS OF THE INDUSTRY

Banking is an industry that handles cash, credit, and other financial transactions. Banks provide a safe place

to store extra cash and credit. The banking sector is a competitive environment, where business process re-

engineering is constantly needed. Business process modelling and automation are effective tools towards

this direction, improving the performance of business activities and enabling enterprise-wide monitoring

and coordination.

Banking is an industry that handles cash, credit, and other financial transactions. Banks provide a safe place
to store extra cash and credit. The banking sector is a competitive environment, where business process re-
engineering is constantly needed. Business process modelling and automation are effective tools towards
this direction, improving the performance of business activities and enabling enterprise-wide monitoring and
coordination.

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Banking services are typically defined by industry analysts, advisors and leaders in the sourcing industry,
such as the set of discrete processes or transactional activities that support the lending lifecycle as follows:

 New customer acquisition services include telemarketing activities, application processing,

underwriting, customer or merchant credit evaluation and verification, credit approval, document
processing, account opening and customer care and on- boarding.

 Account servicing processes for credit cards or consumer loans. These most commonly include
payment processing systems and services, customer service or call center support operations (voice,
digital, email and mail services), product renewals, and loan disbursement; document management
services such as printing and mailing of statements, networked printing and storage solutions;
collections, recoveries processing, default management, risk management and foreclosure.

 Consumer and commercial lending post origination transaction processing services, such as
check processing, clearance and settlement services, remittance, and records management. Back
office transaction process management for loans or credit card portfolios, including custody services,
fraud mitigation and detection, regulatory and program compliance, portfolio analytics, reporting,
conversions, management of technology platforms, interface for customer data and custom
development.

 SERVICES OFFERED BY BANKS:

 Advancing of Loans: Banks are profit-oriented business organizations. So they have to advance a
loan to the public and generate interest from them as profit. After keeping certain cash reserves,
banks provide short-term, medium-term and long-term loans to needy borrowers.

 Overdraft: Sometimes, the bank provides overdraft facilities to its customers through which they are
allowed to withdraw more than their deposits. Interest is charged from the customers on the
overdrawn amount

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 Discounting of Bills of Exchange. This is another popular type of lending by modern banks.
Through this method, a holder of a bill of exchange can get it discounted by the bank, in a bill of
exchange; the debtor accepts the bill drawn upon him by the creditor (i.e., holder of the bill) and
agrees to pay the amount mentioned on maturity. After making some marginal deductions (in the
form of commission), the bank pays the value of the bill to the holder. When the bill of exchange
matures, the bank gets its payment from the party, which had accepted the bill.

 Cheque Payment: Banks provide cheque pads to the account holders. Account holders can draw
cheque upon the bank to pay money. Banks pay for cheques of customers after formal verification
and official procedures.

 Collection and Payment of Credit Instruments: In modern business, different types of credit
instruments such as the bill of exchange, promissory notes, cheques etc. are used. Banks deal with
such instruments. Modern banks collect and pay different types of credit instruments as the
representative of the customers.

 Foreign Currency Exchange: Banks deal with foreign currencies. As the requirement of customers,
banks exchange foreign currencies with local currencies, which is essential to settle down the dues in
the international trade.

 Consultancy: Modern commercial banks are large organizations. They can expand their function to
a consultancy business. In this function, banks hire financial, legal and market experts who provide
advice to customers regarding investment, industry, trade, income, tax etc.

 Bank Guarantee: Customers are provided the facility of bank guarantee by modern commercial
banks. When customers have to deposit certain fund in governmental offices or courts for a specific
purpose, a bank can present itself as the guarantee for the customer, instead of depositing fund by
customers.

 Remittance of Funds: Banks help their customers in transferring funds from one place to another
through cheques, drafts, etc.

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 Credit cards: A credit card is cards that allow their holders to make purchases of goods and services
in exchange for the credit card’s provider immediately paying for the goods or service, and the
cardholder promising to pay back the amount of the purchase to the card provider over a period of
time, and with interest.

 ATMs Services: ATMs replace human bank tellers in performing giving banking functions such as
deposits, withdrawals, account inquiries. Key advantages of ATMs include:24-hour availability,
Elimination of labor cost, Convenience of location

 Debit cards: Debit cards are used to electronically withdraw funds directly from the cardholders’
accounts. Most debit cards require a Personal Identification Number (PIN) to be used to verify the
transaction.

 Home Banking: Home banking is the process of completing the financial transaction from one’s
own home as opposed to utilizing a branch of a bank. It includes actions such as making account
inquiries, transferring money, paying bills, applying for loans, directing deposits.

 Online Banking: Online banking is a service offered by banks that allows account holders to access
their account data via the internet. Online banking is also known as “Internet banking” or “Web
banking”. Online banking through traditional banks enable customers to perform all routine
transactions, such as account transfers, balance inquiries, bill payments, and stop- payment requests,
and some even offer online loan and credit card applications. Account information can be accessed
anytime, dayor night, and can be done from anywhere.

 Mobile Banking: Mobile banking (also known as M-Banking) is a term used for performing balance
checks, account transactions, payments, credit applications and other banking transactions through a
mobile device such as a mobile phone or Personal Digital Assistant

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  Accepting Deposit: Accepting deposit from savers or account holders is the primary function of a
bank. Banks accept deposit from those who can save money but cannot utilize in profitable sectors.
People prefer to deposit their savings in a bank because by doing so, they earn interest.

 Priority banking: Priority banking can include a number of various services, but some of the
popular ones include free checking, online bill pay, financial consultation, and information.

 Private banking: Personalized financial and banking services that are traditionally offered to a
bank’s digital, high net worth individuals (HNWIs). For wealth management purposes, HNWIs have
accrued far more wealth than the average person, and therefore have the means to access a larger
variety of conventional and alternative investments. Private Banks aim to match such individuals
with the most appropriate options.

2.2 MARKET DEMAND & SUPPLY – CONTRIBUTION TO GDP – REVENUE GENERATION

The Banking sector is nothing less than the backbone of any economy. This pertains to the Indian economy as
well, where the banking sector is displaying the potential for becoming the 5th largest banking industry
globally by 2020. With a continued boost in banking performance bolstered by numerous technological
advancements, the Indian banking sector is likely to assume the 3rd largest position in the world by 2025.

Not just globally, the Indian banking sector has proved its true worth back home as well. This can be inferred
from the valuable contribution of our banks, both nationalized and private, for boosting up the national
economy. Currently, the banking industry holds pride in contributing nearly 7.7% to the national GDP.
Besides that, our banks are the prime employment generators for almost 1.5 million people in the country.

The banking sector plays a significant role in lending financial support to the various components of our

economy – individuals and organizations alike. Without the banking structure, the financial growth experienced
by the Indian economy could have been inconceivable

Apart from income produced through credit-creation techniques, banks also generate revenue for the economy
in other ways. One example could be the income earned for lending services to the people of the country.
The income earned by bank employees in this case in the form of wages and the like also contributes to the
larger

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GDP pool. Besides, any expenditure incurred by banks in the name of various bills, rent, stationery, internet
cost, etc., also invariably contributes to the country’s GDP. India has only one bank in the global top 100.
Public sector banks (PSBs) account for 70% of the market share in Indian banking In 2020-21, India’s GDP
growth rate is expected to be in the range of 6.0%-6.5%.Banks contribute to economic growth in more ways
than one. They are significant credit generators for the economy and work in interesting ways. People
deposit their savings in banks, which are then channelised to entities/individuals in need of funds in the form
of different types of loans. Further, peopleuse the loan amount to make investments, which in turn generates
more income for the economy.

Public sector banks account for 61.21% of the total banking assets in FY19. In FY19, total assets in public
and private banking sector were $1,422.97 bn and $741.79 bn, respectively. Credit off-take has been surging
ahead over the past decade, aided by strong economic growth, rising disposable incomes, increasing
consumerism & easier access to credit. During FY07-19, credit off-take grew at a CAGR of 5.74 per cent.
As FY19, total credit extended surged to US$ 1,400.03 billion. Demand has grown for both corporate &
retail loans; particularly the services, real estate, consumer durables & agriculture allied sectors have led the
growth in credit.

2.3 LEVEL AND TYPE OF COMPETITION – FIRMS OPERATING IN THE INDUSTRY

Competition in banking is entirely different from other sectors of the economy due to the special function of
banks in the financial system. The standard competition paradigm in favor of competition regarding cost
minimization and allocative efficiency is not entirely valid for banking because many market failures distort
the nature of competition and its outcomes. The main market failures include asymmetric information,
switching costs and networks in retail banking and two-sided competition in deposits and loans.

The first market failure in banking is asymmetric information between banks and potential borrowers during
the process of providing loans. The effect of competition in the loan market and shows that the competition
mechanism does not work properly for banks. When a bank increases its loan rate above those of its
competitors, it increases its earnings. On the other hand, the quality of firms which apply for loans declines,
reducing the bank’s profits. Competition decreases the informativeness of signals that banks receive on the
borrower’s loan quality, which leads to decreased bank portfolio quality and financing of less efficient
investment projects. Moreover, Competition from new entries deteriorates bank portfolio qualities because
banks then reduce their investment on improving the quality of the borrower screening tests.

10
Banks also gather information on borrowers through the course of a relationship which creates another
informational asymmetry. When a borrower needs to reapply for a loan, he chooses the incumbent bank,
which grants that bank an informational monopoly. The borrower does not exert adequate effort, and the
expected return on the investment projects diminishes. The presence of adverse selection through
heterogeneous borrowers and the information acquisition through lending generate endogenous fixed costs,
keep other banks out of the market, and limit competition.

COMPETITOR INFORMATION

A competitive environment promotes allocative efficiency by encouraging the greatest supply of credit at the
lowest price. A banking system that exhibits some degree of market power, however, may improve credit
availability to certain firms, and it may provide incentives for banks to screen loans, which aids efficient
allocation of resources.

The bank customers can use different types of remote access, such as telephone or postal services.
Introducing remote access steals depositors from rival banks (stealing effect). On the other hand, the
substitutability of banks is promoted (substitution effect), and which of these two effects dominates defines
the equilibrium. Banks compete in deposit markets to attract new depositors and also compete in loan
markets to provide new loans to customers, which may lead to a final bias in competitive behaviour. The
banks aim for gaining market power in one of these markets and offer noncompetitive prices in the other
market.

The liberalization and deregulation process increased competition for banks from both inside and outside the
banking industry, mainly from non-bank financial intermediaries and market based finance. Borrowers have
access to funding directly from the market, which deteriorates the intermediary role of traditional banking,
and non-bank financial intermediaries and shadow banking capture market share from banks.

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 Competitor Information as on 20/MAY/2021

NAME NET INTREST INCOME NET TOTAL

(in cr) PROFIT ASSETS
(in cr) (in cr)
HDFC BANK 120,858.23 31,116.53 1,530,511.27
ICICI BANK 79,118.27 16,192.68 1,098,365.15
KOTAK 26,840.28 6,964.84 360,251.69
MAHINDRA
AXIS BANK 63,645.29 6,588.50 915,164.82
INDUSIND 28,999.80 2,836.39 307,057.56
BANK

Source:http://www.moneycontrol.com/competition/icicibank/comparison/ICI02

HDFC Bank Limited is an Indian financial services company based in Mumbai, Maharashtra that was
incorporated in August 1994. HDFC Bank is the fifth or sixth largest bank in India by assets and the second
largest bank by market capitalization as of February 24, 2012. The bank was promoted by the Housing
Development Finance Corporation, a premier housing finance company (set up in 1977) of India. HDFC
Bank has 1,986 branches and over 5,471 ATMs, in 996 cities in India, and all branches of the bank are
linked on an online real-time basis.

Kotak Mahindra Bank is an Indian financial service firm established in 1985. It was previously known as
Kotak Mahindra Finance Limited, a non-banking financial company. In February 2003, Kotak Mahindra
Finance Ltd, the group's flagship company was given the license to carry on banking business by the
Reserve Bank of India (RBI). Kotak Mahindra Finance Ltd. is the first company in the Indian banking
history to convert to a bank. Today it has more than 20,000 employees and Rs. 10,000 crore in revenue.

Axis Bank Limited is an Indian financial services firm headquartered in Mumbai, Maharashtra. It had
begun operations in 1994, after the Government of India allowed new private banks to be established. The
Bank was promoted jointly by the Administrator of the Specified Undertaking of the Unit Trust of India
(UTI-I), Life Insurance Corporation of India (LIC), General Insurance Corporation Ltd., National Insurance
Company Ltd., The New India Assurance Company, The Oriental Insurance Corporation and United India
Insurance Company UTI-I holds a special position in the Indian capital markets and has promoted many
leading financial institutions in the country.

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2.4 PRICING STRATEGIES IN THE INDUSTRY

Either a single strategy or multiple strategies can be initiated to combat the fierce competition of the market.
Some of the strategies include:

 Product differentiation strategy

 Market segmentation strategy

 Inference generating strategy

 Business opportunity strategy.

Product Differentiation Strategy: A bank's unique skill and knowledge can facilitate developing a product,
which is totally different from others in the eyes of the customers. Such product differentiation if achieved
would enable the bank to fix a relatively high price at which it can reap better profit. For example, the use of
derivative products in the foreign exchange business and innovative way of delivery would enable a bank to
enjoy an edge over its competitors. This might help a bank to charge relatively high price.

Market Segmentation Strategy: Based on elasticities of demand for the financial services products, the
markets are segmented. A banking firm can maximize its profits through price discrimination. This could be
done through fixing a relatively high price in the market where The product has inelastic demand and a
relatively low price for the product with high elasticity. Similarly, rating could also be used for charging
different prices for the same financial services. For example, bankscharge lower interest on loans given to a
company with triple “AAA” rating than that to the company with “A” rating.

Inference Generating Strategy: Inference generating strategy can be used gainfully for pricing financial
services. On the basis of scientifically researched findings coupled with sound judgments, predictions about
future developments in the money markets such as interest rate changes or exchange rate changes can be
made. These predictions could be used to bring about appropriate changes in financial services, cost of
generating services, pricing system and diversifying business into new areas.

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Business Opportunities Strategy : An appropriate pricing system can be used as one of the effective tools
for the purpose of expanding the size, diversifying into new areas of business and identifying possible scope
economies to avail business opportunities. Further, relatively large size of a banking firm, in turn, entails
generation of quality services at relatively lower cost, generate services which are in joint supply and
demand, create larger opportunities for diversifying into new areas of business and provides scale and scope
economies for benefits in future. In reality, scale and scope economies available to a banking firm provide
many options in pricing of banks' financial services. There are many factors that are to be taken into account
while pricing banks' financial services. To evolve comprehensive criteria for price determination of banks'
financial services, cost factor is just one among the several elements.

Relationship-based pricing

A few of the more progressive banks have gone even further and now rely on relationship-based pricing.
This still takes risk into account but also includes different approaches to rewarding customers for their
loyalty to the bank. Banks are also starting to differentiate in terms of the customer experience provided.

This approach is still under debate within the industry. Legacy systems and bank silos are also delaying the
adoption of this approach in many areas. Our survey suggests that Western European banks in particular are
still reluctant to move over to a relationship-based pricing strategy.

To explore this issue a little further, five in-depth interviews were conducted with five banks from different
geographical regions. For example, a respondent from Russia said that his bank was using all three of the
key approaches to pricing (product-based, risk-based and relationship-based). However, it’s focusing mostly
on relationship-based pricing and intends to try and develop a seamless approach that will enable all of its
business lines to access the same information.

2.5 PROSPECTS AND CHALLENGES OF THE INDUSTRY

There has been considerable widening and deepening of the Indian financial system in the recent years. The
enhanced role of the Banking sector in the Indian Economy, the increasing levels of deregulation and the
increasing levels of competition have placed numerous demands on our Banks. The adverse consequences of
malfunction of the Banking system could be more severe than in the past. Hence, focus of RBI, the regulator
& supervisor of Indian Banking system is at ensuring greater financial stability. While operating in this
highly demanding environment, the banking system is exposed to various risks and challenges.

14
Increasing NPA: Economic slow‐down and aggressive lending by the banks has turned loans into non‐
performing assets and thus impacting the profitability of the banks as they are required to have higher
provisioning amounts.

Licensing requirement: For setting up of a banking business in India, a banking license from the RBI has
to be acquired which has served as an associated protocol and formalities.

Improving Risk Management System: RBI had issued guidelines on asset liability management and Risk
Management Systems in Banks in 1999 and Guidance Notes on Credit Risk Management and Market Risk
Management in October 2002 and the Guidance note on Operational Risk Management in 2005. Though
Basel II focuses significantly on risks it implementation cannot be seen as an end in itself. The current
business environment demands an integrated approach to risk management. It is no longer sufficient to
manage each Risk Independently. Banks in India are moving from the individual segment system to an
enterprise wide Risk Management System. This is placing greater demands on the Risk Management skills
in Banks and has brought to the forefront, the need for capacity building, while the first priority would be
risk integrating across the entire Bank, the desirability of Risk aggregation across the Group will also need
attention. Banks would be required to allocate significant resources towards this objective over the next few
years.

Rural Coverage: Indian local banks specially state bank groups having a good coverage and many
branches in rural areas. But that is quite lacking technical enhancement. The services available at cities are
specifically not available to rural branches, which are necessary if banks want to compete now a day.

Technological Problems: In metro cities Indian local banks are having good comparable technology but
that cannot be supported and comparable by the whole network of other cities and village branches.

Corporate Governance: Banks not only accept and deploy large amount of uncollateralized public funds
in fiduciary capacity, but they also leverage such funds through credit creation. Banks are also important for
smooth functioning of the payment system. Profit motive cannot be the sole criterion for business decisions.
It is a significant challenge to banks where the priorities and incentives might not be well balanced by the
operation of sound principles of Corporate Governance. If the internal imbalances are not re-balanced
immediately, the correction may evolve through external forces and may be painful and costly to all
stakeholders. The focus, therefore, should be on enhancing and fortifying operation of the principles of
sound Corporate Governance.

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Customer Services: There are concerns in regard to the Banking practices that tend to exclude vast sections
of population, in particular pensioners, self-employed and those employed in unorganized sector. Banks are
expected to oblige to provide Banking services to all segments of the population, on equitable basis.
Further, the consumers interests are at times not accorded full protection and their grievances are not
properly attended to by Banks. Banks are expected to encourage greater degree of financial inclusion in the
country setting up of a mechanism for ensuring fair treatment of consumers; and effective redressed of
customer grievances.

Branch Banking: Traditionally Banks have been looking to expansion of their Branch Network to increase
their Business. The new private sector banks as well as the foreign banks have been able to achieve business
expansion through other means. Banks are examining the potential benefits that may accrue by tapping the
agency arrangement route and the outsourcing route. While proceeding in this direction banks ought not to
lose sight of the new risks that they might be assuming in outsourcing. Hence they have to put in place
appropriate strategies and systems for managing these new risks.

Competition: With the ever increasing pace and extent of globalization of the Indian economy and the
systematic opening up of the Indian Banking System to global competition, banks need to equip themselves
to operate in the increasingly competitive Environment. This will make it imperative for Banks to enhance
their systems and procedures to international standards and also simultaneously fortify their financial
positions. Intense competition due to a large number of players in the banking industry and other players
such as NBFCs (less regulation) has resulted in reducing market share of the existing banks.

Transparency and Disclosures: In order to bring about meaningful disclosure of the true financial position
of banks to enable the users of financial statements to study and have a meaningful comparison of their
positions, a series of measures were initiated by RBI. It covered a number of aspects such as capital
adequacy, asset quality, profitability, country risk exposure, risk exposures in derivatives, segment reporting
and related party disclosures etc. With a view to moving closer towards international best practices and
International Accounting Standards and the disclosure need under pillar 3 of Basel II, RBI has proposed
enhanced disclosures of certain qualitative aspects. Banks are required to formulate a formal disclosure
policy that addresses the banks’ approach for determining what disclosures it will make and the internal
controls over the disclosure process.

16
Known Your Customer Guidelines: The guidelines were revisited in the context of the recommendations
made by the financial action task force on Anti Money Laundering Standards and on Combating Financing
of Terrorism. Compliance with these standards both by the banks/financial institutions and the country has
become necessary for international financial relationships. Compliance with this requirement is a significant
challenge to the entire banking industry to fortify itself against misuse by anti-social persons / entities and
thus project a picture of solidarity and financial integrity of the Indian Banking system to the international
community.

2.6 KEY DRIVERS OF THE INDUSTRY

Mortgages to cross Rs 40 lakh crores by 2021: The total mortgages in the books of banks have grown
from 1.5% to more than 10% of the total bank advances/loans in the last period of 10 years. The total ratio
of outstanding mortgages, including the Housing Finance Companies to the GDP is 10%. Further, as per a
survey, by 2020, this ratio were to reach 20%, a number similar to that of China, then the mortgage industry
can be expected to grow at an average rate of over 20% during the next decade. The outstanding mortgages
are expected to cross Rs. 40 lakh crores by 2020.

Wealth management to boost the growth: Further, wealth is expected to get further concentrated in the
hands of a few. The top band of income distribution is expected to grow most rapidly over the next decade.
By the end of this decade, the top 5% house‐holds, predominantly residing in the metros and Tier I cities,
will account for 30% of the total disposable income. In such a situation, wealth management services will be
an integral part of the product portfolio for both private as well as public sector banks.

Rapid growth of branches and ATMs: India’s penetration rate of branches and ATMs is very low as
compared to other developed and developing nations. Currently there are 85 ATMs for one lack population,
i.e. 1,04,500. Further, the ATMs are expected to grow and double their number in the next two years. As
such, most of the new ATMs, 50‐65 % will be deployed in tier 2 and 3 cities, while tier 1 cities will grow at
around 20%.

Mobile banking to grow exponentially: The Internet is widely used by all banking segments around the
world to purchase financial services products. Further, by 2015, it is estimated that the mobile banking
transaction volume worldwide will reach US$500 mn. and on domestic front, mobile banking transactions
are expected to result in a cost savings of US$ 22 mn ( Rs 1,100 crore).

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Infrastructure financing: Currently, Banking sector is the major financer for the infrastructure in India,
accounting for more than half of the funding of this segment. Further, to sustain India’s economic growth,
the Planning Commission envisages that $1 trillion (about 10% of GDP) will be spent on infrastructure
during the 12th plan from 2012 to 2017, thus providing huge opportunity for banking industry.

New Models to serve the Small & Medium Enterprises (SME): As per a survey, large customers in
banking segment are more satisfied than the medium and small sized ones. Due to higher risk and lower
ticket size, SMEs typically get less attention. This provides the opportunity to create innovative models to
serve SMEs with sufficient and timely credit at the right price. By converting threats into opportunities, the
bank can have better advantages these opportunities are as under:-

 Offering of innovative products

 Door to door service approach

 Customer relationship management

 Professional approaches

 Managerial excellence

 Marketing and technological advancement

 Customized and cyber services

 Branch expansion

 Deposit Mobilization

 NPA management

 Asset reconstruction

 Motivational HRM policies

 Change in lending process

 Merger and acquisition

 Total quality management concept

 Mobile banking is expected to become the second largest channel for banking after ATMs

 New channels used to offer banking services will drive the growth of banking industry

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High growth of Indian Economy

 The growth of the banking industry is closely linked with the growth of the overall economy. India is
one of the fastest growing economies in the world and is set to remain on that path for many years to
come. This will be backed by the stellar growth in infrastructure, industry, services and agriculture.
This is expected to boost the corporate credit growth in the economy and provide opportunities to
banks to lend to fulfil these requirements in the future.

Rising per capita income

 The rising per capita income will drive the growth of retail credit

 With an increase in disposable income and increased exposure to a range of products, consumers

have shown a higher willingness to take credit, particularly, young customers

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 CHAPTER 3

LITERATURE REVIEW

3.1 BRIEF THEORETICAL CONSTRUCT RELATED TO THE

PROBLEM REWARDS

Rewards have positive outcome that are earned as a result of an employee’s performance. Reward may not be
possible without a performance measurement system that tries to monitor and score employee against
assigned targets. These rewards are aligned with organizational goals. When an employee helps an
organization in the achievement of one of its goals, a reward often follows.

All Organizations have goals and vision. In order to reach them they have to get their work towards the same
goals and vision. As individuals, employees rely on different factors, and it can be very difficult to know
how to get the employees to perform their best.

Employees are motivated by the reward systems when they contribute to their organization’s effectiveness. This
can lead to for example a seller making an extra visit on a Friday afternoon, instead of taking an early
weekend, hoping to reach monthly sales quota in order to be rewarded. This form of reward has proven to be
highly motivating that we human strive to do perform better if we are able to acquire when we want.

In order to ensure effectiveness of an organization it is required that employees are motivated and this can be
facilitated with the help of reward system. Rewards can get individuals to perform better and it also
promotes motivation and satisfaction. It may also be a good way to retain important employees in the
organization and the reward can also get the employees to feel important and needed. If the good
performance in the organization is rewarded, it will most likely to happen again.

Companies that choose to reward the employees, perform better than companies do not use any reward. They
also believe that reward systems could get more people to become interested in working at the companies
and above all it means that they want to stay in company.

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Rewards should be viewed by managers as a tool to attract motivate and retain exceptional employees. A
reward system must reflect fairness and goodwill to the employee. It should give much is coming from it
should be non -discrimination in application and should embrace the equity diversity and inclusion in
approach

Exceptional employees most time are entrepreneurs who possess diverse skill that an enterprise are in need
of that work with minimal or no supervision and most time work to achieve and score above their assigned
target to matter how difficult or unachievable the measurement parameters have been set by seldom
employers with exploitative tendencies. A good organization ordinarily should identify these categories of
employees reward and promote them to strategic position within the organizations. These categories of
employees should be the ones heading the divisions, directorates and even technical assistance to the
managing directors and executive directors and with the assume these positions. There will be synergetic
effects within the organization if strategic position is manned by competent individual and leaders who have
been grown within an organization over time. The benefit accrued from such synergy may include.

 Increased Productivity
 Sustained Productivity
 Sustained and even increased profit
 Minimal employee turnover
 Will ful sharing of knowledge by employees Motivated Workforce
 Perpetual Succession
 Gaining competitive advantage

The right people must be originally selected into the organization, motivated to works and sound personnel
promotion and training decisions must be made in filling no entry level. An effective personnel performance
evaluation system is crucial corner stone in this process, as it provides the data needed for most of the
required administrative decisions. This system plays a key role in motivating people to utilize their abilities
in pursuing the organization’s goals.

Rewards represent important mechanism by which employee behaviours can be aligned with the interests of
the organization. Particularly pay-for-performance is a reward practice that links one’s pay increase to one’s
performance and could be used to direct, sustain, and motivate desirable behaviour’s such as knowledge
sharing, creativity, quality and customers satisfaction.

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Pay-for-performance establishes the behavioural criteria by which rewards are allocated and in doing so
underpins the alignment of employee behaviour with organizational values and objectives. Therefore if an
employee achieves his or her performance objectives then employee receives a pay increase. This simple
and visible link between pay and performance recognizes an employee for a specific level of
accomplishment therefore nurturing favorable work attitudes, such as satisfaction and commitment. Thus,
the effectiveness of pay-for-performance has a direct influence on high levels of service quality and
desirable work attitudes.

3.1.2 The selection of a Reward system

It is important that the business chooses the reward system that is working for their organization. The
situations may be different from company to company and an example of this could be if a company wants
to motivate, recruit and retain skilled staff with the company.

As mentioned before there is no optimal reward system that can be used in every organization and in every
situation. However, there are some things a company should consider before choose which reward system
they intent to use. There are two types of reward and they are external reward and internal reward. The inner
covers their own satisfaction when an employee performs or provides for the company.

There are a lot of different types of reward systems, For example Salaries and incentive pay

 Stock option
 Stock in the company
 Other benefits

Salaries and stock are considered as financial reward, which are external. However, other benefits can be
acknowledgement, receiving free time work, which are considered as interior reward. Some people prefer
external rewards while other interior or a combination of two.

As mentioned before different companies use different forms of reward systems depending on what they
want to accomplish and also due to cost factors.

According to Rahman & Hoque there are five dimensions that are very important for an employee in order
to feel motivated and satisfied in their work place. These are the work itself, pay promotion opportunities,
supervision and co-employees.

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3.1.3 TYPES OF REWARDS

Besides verbal appreciations, token of appreciation, rewards (award trophies framed certificates, special
parking spaces, gift cards, pen or a free day off) etc. generally given to employees.

When employers praise their employee’s performance it is appositive experience for both the manager and
the employee. Appraisal enhances motivation, keeps employees goal oriented and morale high. With high
morale and a feeling of worth employee will want to exceed in the workplace.

Various categories of rewards that are given and can be given are:

 Basic Pay- Pay is an essential factor which is closely factors which is closely related to job
satisfaction and motivation. Although pay may not be a reward as this is a static amount which an
employee will be paid every month, it will be considered as a reward if similar worker is paid less.

 Additional Hour’s Rewards- This is similar to that of overtime. However, it is paid to employees if
they put in an extra hour of work for working at unsocial hours or for working long hours on top of
overtime hours.

 Commission- Many organizations pay commission to sales staff based on the sales that they have
generated. The commission is based on the number of successful sales and the total business revenue
that they have made. This is a popular method of incentive.

 Bonuses- Bonuses will be paid on employees who meet their targets and objectives. This is aimed at
employees to improve their performance and to work harder.

 Profits Related Pay- Profits related pay is associated with if an organization is incurring a profit
situation. If the organization is getting more than the expected profits, then employees receive an
addition amount of money that has been defined as a variable component of the salary.

 Payment related Pay- This is typically paid to employees who have met or exceeded their targets
and objectives. This method of reward can be measured at either team or department level.

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 Payments by results- This is similar to that of profits related pay. This reward is based on the
number of sales and total revenue generated by the organization.

 Price Rate Reward- Piece rate reward is directly related to output. The employees get paid on the
number of pieces that they have produced. These pieces will be closely inspected to make sure that
the quality standards are being met.

 Recognition- Employees will not always be motivated by monetary value alone. They do not require
recognition to be motivated and to perform well in their work

 Job enrichment- This is the common type of recognition that is aimed at employees to get
motivated. Job enrichment allows more challenging tasks to be included in the day-to- day tasks
performed by the employee

 Job Rotation- Unlike job enrichment, job rotation refers to shifting employees between different
functions. This will give them more experience and sense of achievement.

 Teamwork- Teamwork is also considered as recognition. Creating teamwork between team

members will improve performance at work. Social relationships at work are essential for any
organization

 Empowerment- Empowerment refers to when employees are given authority to make certain
decisions. This decision making is restricted only to the day to day tasks.

 Training- Many Organization places a greater emphasis on training. This is considered as

recognition for employees. Training could vary from on the job training to personal development
training.

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  Awards- This again is an important type of recognition given to employees who perform better.
Organization has introduced award systems such as best performer of the month etc. and this will
lead employees to perform better.

Rewards are basically methods to extrinsically motivate employees. These awards can be Monetary and non-
monetary. Some of the commonly given awards in various organizations are:-

 Service Awards

Each year that an employee commits to an employer, he offers great Advantages to the business or organization.
Employees gain more knowledge of their position and responsibilities over time, and the company does not
have to set aside time and money hiring and training new employees. Employers often reward employees
who remain committed with a recognition pin or a certificate acknowledgement the number of years of
continuous service.

 Employee of the month

Some employees will consider being designated Employee of the Month a great honor. This award is commonly
given to the one employee each month that has given exceptional service had perfect attendance and gone
the extra mile for the company to ensure all customers are given the service they expect. These employees
are often recognized during monthly staff meeting with a plaque or certificate recognizing their efforts. A
designated parking space is another good idea, and displacing the plaque where customers can see it adds to
the honor. Employees should take care in choosing employees in a manner that shows no favoritism. If other
perceives that employees are choosing unfairly, the award can be counterproductive.

 Attendance Award

Companies depend on employees to be punctual and perform tasks to their potential so that the work load can be
evenly distributed. Employees who strive to be working during every scheduled shift and never come in late
deserve to be recognized in a special way. Perfect attendance awards can be given in the form of a
certificate, plaque or even as a cash bonus. Sometimes employers will give employees with perfect
attendance a day off with pay or a gift certificate to a local restaurant in appreciation for their commitment to
a company.

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  Safety Awards

Safety awards are a great way for employers to recognize employees or teams for their continued adherence
to safety guidelines. This kind is typically awarded when an employee or a group files no incident reports
over a given period of time, such as a month or year. These acknowledgements are often expressed in terms
of time, such as a month or year.

These acknowledgements are often expressed in terms of the man or women hours. Since the team last
experienced an injury. Cash bonus or gifts as tickets to popular local events make great safety awards.

 Company Advancement

The ultimate reward that every employee tends to strive for is company advancement. Employees generally
work hard to earn recognition in an attempt to be promoted to a higher position within the company or
receive an annual raise in pay. Employers should choose candidates for advancement carefully, avoiding
favoritism and ensuring that the most reliable and skilled employees are advanced to higher position.

 Special operating Unit award

Individual bureaus may establish award program which are appropriate to their particular interests in
recognizing certain groups of employees. There are a large variety of programs, ranging from recognition for
scientific accomplishments to employee of the year. These award programs can cash be cash or non-
monetary.

 Cash-in-Your-Account Award

A small cash award designed to recognize employees for going the extra mile in getting the job done. These
awards do not recognize overall performance, but rather specific instances of exemplary performance.

 Suggestion Award

Under the suggestion program, employees are granted an award for formal suggestions which have been
evaluated and adopted by the amount of the award is determined by the amount of tangible and intangible
benefits of the idea.

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  On-the-spot Award

A small award which is granted as a means to recognize employees for the day- to- day efforts which
contribute “in a special way” to get the job done.

 Certificates of Appreciation

Certificates granted to employees who have made outstanding contributions or who have performed
significant services to the department.

 External Rewards

Awards sponsored by other agencies and non-Government organizations given to corporate employees.

3.1.4 Benefits of Reward System

 Enhancing the employment relationship: The employment relationship created by reward

approach must contain both aspect of traditional and relational reward to order for a reward to appeal
more to individual.
 Attraction and Retention: This illustrates the relational rewards help to convey a positive
psychological contract. The organization can turn into an “employer of choice” and “an incredible
work environment”, thus attracting the talented individuals it requires.
 Flexibility to meet individual’s need: Milkovich and bloom “Relational reward may bind
individuals more strongly to the organization because they can answer those special individual
needs”
 Greater impact: The mutual effect of the different types of rewards will make a Profound and
longer- ending impact on the motivation and commitment of individuals.

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3.1.5 Effect of Poor or Weak reward System

 Employee turnover-When employees do not see a clear relationship between work and pay they
become demoralized due to the poor compensation system and inequality. Performing employees
feel cheated and tends to fall out for greener pastures. Some of this exist become entrepreneurs who
directly compete with the business or end up becoming machineries of competitors who hire to crush
out former employers.

 Brain drain- Due to the grievance, rift and mistrust between the employee and employer a
demotivated will deliberately refuse to share any knowledge has to other employees or may even
with hold sensitive information that will amount to financial or reputational loss on the path of the
employer.

 De-motivated work force- when worker morale is low it affect productivity of individual, groups
and even the organization at large.

 Increase in wastage- employee reaction to unfair labour practice may be passive. Passive reactions
of employee are much more dangerous and have a disastrous effect on organizations as the long run.

 Increase in time offs- A demoralize sales personnel officer may decide to spent more time at home
under the guise that he is in the field.

 Negative attitude to work- Poor attitude to work are synonymous with a demoralized worker.

 Dwindling profits- the overall impact of having unproductive or demoralized workers must always
reflect on profit. Once productivity is altered is directly impact on profit.

 Increased competitive activity- as they buy you’re turned over employees so they possess your
business secret.

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 3.1.6 MOTIVATION

The effectiveness of work depends on the willingness of employees to do assigned tasks with involvement and
enthusiasm. Therefore, Motivation is one of the most important factors affecting human behaviour and
performance. Motivation is something inside the person that drives them to action. Motivation represents an
energy which guides the employees towards fulfilling a goal. Motivation emerges in current theories, out of
needs, values, goals, intentions, and expectation. Motivation represents an energy which guides us towards
fulfilling a goal.

According to Robert Dubin, “Motivation is something that moves the person to action and continues him in the
course of action already initiated”. Mullins defined Motivation as “a driving force within a person which
stimulates the individual to do something up to the target level in order to fulfill some need or expectation”.
Lillis observes motivation as “it is the stimulation of any emotion or desire, operating upon one’s will and
prompt or driving it to action”.

According to Kressler, “It is a complex issue of human behaviour which varies from person to a person; as a
result, different people are motivated in different ways”. It is the work of every employer to inspire and
encourage his employees to take a required course of action. In short, motivation in an organization is
effective if employees fulfill their personal needs and goals through organizational goals. A highly
motivated employee knows what to do and how to reach the predetermined goal in the most effective
manner. Modern management is increasingly aware of the importance of employee motivation.

In short, motivation in an organization is effective if employees fulfill their personal needs and goals through
organizational goals. A highly motivated employee knows what to do and how to reach the predetermined
goal in the most effective manner. Modern management is increasingly aware of the importance of
employee motivation and is handled with great care and attention.

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3.1.7 TYPES OF MOTIVATION

Self-Determination Theory (SDT) is a psychological theory, which deals with internal or external and also
called intrinsic or extrinsic motivation as related to the level of competence or incompetence the people feel.
This theory was developed by Edward. L. Deci and Richard M. Ryan and redefined by many researchers.

According to this theory, Motivation can be

a. Intrinsic Motivation

b. Extrinsic motivation

a. Intrinsic Motivation

Intrinsic motivation stems from motivations that are inherent in the job itself and which the individual
enjoys as a result of successfully completing the task or attaining his goals (McCormick and Tifflin, 1979).
It is the self- generated factors that influence people to behave in a particular way or to move in a particular
direction. Intrinsic motivation is defined as doing an activity for its inherent satisfactions rather than for
some separable consequence. Intrinsic motivation reflects the internal desire of a person to satisfy the inner
needs.

b. Extrinsic Motivation

Extrinsic motivation refers to motivation that comes from outside an individual. It is concerned with the
external factors which employees enjoy. Extrinsic motivation involves executing an action to achieve
external rewards or reinforcements. Extrinsic motivation can be defined as, “it pertains to a wide variety of
behaviours that are engaged in as a means to an end and not for their own sake” Extrinsic motivators can
have an immediate and powerful effect, but it will not necessarily last long. The intrinsic motivators, which
are concerned with the „quality of work life‟, are likely to have deeper and longer-term effect because they
are inherent in individual and not imposed from outside.

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3.1.8 FACTORS OF MOTIVATION

Based on the intrinsic and extrinsic motivation and several theories of motivation, in the present study the
factors of employee motivation are broadly categorized as:

1. Monetary Motivational Factors and

2. Non-Monetary Motivational Factors.

1. Monetary Motivational Factors

The Monetary Motivational factors are the extrinsic factors to work and are offered in terms of money. Such
factors provide more cash or purchasing power to the employees. The monetary factors are the mean to
recruit, attract and retain the employees. These factors serve as the most important factor as money satisfies
the basic need of survival and security. The monetary motivational factors taken in this present study are:

a. Emoluments

b. Fringe Benefits

c. Rewards

Emoluments

Emoluments refer to the compensation received by the employee in virtue of holding an office or having
employment. It is the compensation for the service rendered in the organization. It is the monetary
compensation structure that is divided into various components to address the needs and aspirations of the
employees at different hierarchical levels. The emoluments includes: Basic salary and mandatory
allowances, Shot-term incentives like bonus, commission, overtime pay and Long term incentives like
retirement benefits, provident funds and gratuity. The emoluments offered should be adequate, equitable,
balanced, secured. It is influenced by external factors like labor market, economic condition, government
regulation, and internal factors like age, size and labor budget of the organization. The emolument as all
forms of payments given to employees arises from their employment.

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Fringe Benefits

Fringe Benefits are the employee benefits that focus on maintaining and improving the quality of life for
employees. It provides a level of protection and financial security for employees and for their family
members. Organizations use fringe compensation programs to attract, retain and motivate qualified and
competent employees. According to the standard point of accounts, the fringe benefits can be classified as -
Payment for time on job embracing overtime payment, Payment for time cost on job like paid holiday,
vacation, sick leave and Payment for varied benefits like insurance, subsidised lunch. These employee
benefits are found to be the integral part of a total compensation system. Employee benefits like child care,
retirement plans, paid holiday etc., had proved to improve the job satisfaction of the employees. The
employers should provide improved fringe benefits along with the mandatory benefits to increase the
productivity level of the employees.

Rewards

The Reward can be defined as “an external agent administered when a desired action or task is performed,
that has controlling and informational properties”. The Rewards can be verbal, physical or tangible.
Organizations usually use increased pay, promotion, bonus and other types of reward to encourage staff to
increase productivity. An appropriate designed reward system would create a performance culture in the
organization. Studies have proved that the reward system of the company helps in steering and motivating
the employees towards attainment of the mission of the organization. Verbal rewards, like praise, tend to
have a positive reinforcing effect on both the task and attitudes. The reward system in the workplace can be
used as a powerful tool by employers to create a motivational environment. These rewards will help them
work at their optimal levels to accomplish the organizational objectives.

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 2. Non-Monetary Motivational Factors

The Non-Monetary motivational factors are the tangible and job-related factors that are used in the
organization to motivate the employees without direct payment of money. These factors are intrinsic to
work. These non-monetary factors have the potential to satisfy the employee’s needs and motivate them
without necessitating significant amounts of the use of financial sources. At a higher-level position, the
employees give more importance to the non-monetary factors than monetary factors. These factors create an
opportunity to provide immediate recognition to the employee who performs above the expectation that
contributes to the organizational objective. Based on the National and International literature reviews, the
non-monetary factors are identified as follows:

 Work Environment
 Performance Appraisal
 Training and Development
 Job Rotation
 Career Development
 Employee Participations
 Promotion Policies
 Job Autonomy

 Work Environment

Work Environment refers to the work organization, which enables the employees at all levels to actively
participate in shaping the organization’s environment, methods and outcome. The work environment
exercises a significant influence on the productivity of the employees. Further, the work environment
contains job with sufficient variety of tasks to provide challenges and to utilize the talents of the employee.
A working environment with highly supportive supervisor, good interpersonal relationship and better
grievance handling method motivates the employees to give high productivity. A Work environment which
includes actors like getting on well with their colleagues and experiencing a positive and supporting attitude
from their superiors had influenced the motivation level of the employees.

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  Performance Appraisal

Performance appraisal can be defined as a process typically delivered annually by the superior to a
subordinate, designed to help employees to understand their roles, objectives, expectations and performance
success. It is a systematic evaluation of personality and performance of employees by his superior. From the
point of employees, the appraisal provides feedback which is essential for discussing the strength and
weakness as well an improving their performance. Currently, companies are redesigning their performance
appraisal system to focus more on employee development and learning. The appraisal process creates a
competitive spirit among employees. It encourages the employee to participate in setting the goal and
objectives of the organization and motivated them to perform better. Privacy in the appraisal process, trust
between employee and supervisor should be followed to make it effective appraisal systems.

 Training and Development

Training refers to the process of providing employees with specific skills and helping them in correcting
their deficiencies in the performance. On the other hand development is an effort to provide employees with
the abilities, the organization will need in the future. The two terms tend to be combined into a single phrase,
"Training and Development" – to recognize the combination of activities that the organizations use to
increase the skill base of the employees. The primary reasons the companies train their employees to bring
their knowledge, skills and abilities up to the level required for satisfactory performance. Training motivates
the employees in attempting the new tasks and eliminates fear. A sound training program helps to improve
the organizational climate. Training offered to employees helps them to reduce their anxiety or frustration,
brought on by work demands that they are not familiar with and they are lacking the skills to handle
effectively.

 Job Rotation

Job rotation has been defined as a systematic movement of employees from one job to another at planned
intervals. It involves periodic shifting of employees from one task to another where each task requires
different skills and responsibilities. The employees avail promotion opportunities after successful
completion of job rotation program. Job rotation practice enhances the job involvement of the employees
and improves employee’s problem-solving abilities and shared understanding of the job. In the present era
organizations design customized job rotation programs according to their employees‟ career aspirations. The
skill variety, task significance, task identity, feedback and empowerment which are inherent in job rotation
significantly enhance employee motivation, commitment and job involvement.

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  Career Development

Career Development is an ongoing organized and formalized effort that focusses on developing enriched and
more capable employees. Career development has evolved from an isolated tool for individual growth to a
key strategic asset for many far-sighted organizations. It meets the needs of both the individual and the
organization.

Traditionally, it has been assumed that every employee wants, or should want, the same thing in a career,
usually a direct path up the organizational ladder. Career Development helps the employees in finding a
place in an organization where they can express excellence and contribute to the goals of the organization.
An employee develops his/her career through a continuous acquisition of managerial or professional skills
and experience which may bring about rewards and promotion.

 Employee Participation

Employee participation consists basically in creating opportunity under suitable conditions for people to
influence decisions which affect them. Operationally, the term employee participation can be divided into
two primary categories: financial and work-related participation. In the present study employee participation
is taken in the context of non-monetary factor and implies work-related participation. Employee
participation allows for employees‟ involvement in the initiation, formulation and implementation of
decisions within the company. It improves employee’s loyalty, bring co-operation between management and
employees and encourages the employees to take initiative to give ideas and suggestions on the productivity
of the company. It is frequently assumed in the management literature that the informational effects of
participative forms of work organization lead not only to more worker participation in organizational
decision making, but also, as a consequence, to greater job satisfaction, higher employee motivation and a
harmonious labor relations climate

 Promotion Policies

Promotion is the advancement of an employee within an organization as to rank, salary, job activity and
designation. Promotion is said to happen when an employee tries to shift the upward direction in
organizational hierarchy and moves to a place of greater responsibility. Promotion policies of an
organization bring new responsibility to the employees, which would enhance the performance level of the
employees. These promotional policies give recognition for the employee’s effort and commitment level.

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It can be used as a tool for motivating and rewarding the employees for meeting the organizational goal and
thus it serves as a mean of synchronizing organizational goals with personal goals. Promotion opportunities
motivate the employee better than salary or wages, especially in a competitive environment Apart from the
job satisfaction, the employees‟ motivation and satisfaction are determined by the satisfaction of promotion
policies of a company.

 Job Autonomy

Job autonomy is defined as the degree to which the job offers considerable liberty, proving free hand and
choice to the individual in scheduling the work an also defining the means to achieve the tasks; .Autonomy
involves responsibility for the outcomes of the work, which results in high work efficiency and higher levels
of intrinsic motivation. Autonomy has an impact on work methods, work pace and goal setting. Employees
with autonomy have the liberty to control the pace of work and to regulate work processes and evaluation
procedures. Autonomy and independence are not the same as autonomous workers may depend on
interpersonal communication in order to complete the interdependent tasks. Job autonomy improves
performance since employees have provided a support to exercise job autonomy and are trusted to perform
the task. This perception leads to an increased level of intrinsic motivation and the outcome is the
effectiveness in work.

36
3.2 AN OVERVIEW OF EARLIER STUDIES

Abraham Maslow (1943), according to which there is a certain hierarchy for individual needs, and more
basic human needs need to be satisfied in order for the next level needs to serve as motivators.

Bruce and Pepitone (1999) propose an interesting viewpoint according to which managers cannot motivate
employees; managers can only influence what employees are motivated to do.

Lawler (2003) described that there are two aspects that decide how much a reward is attractive, the quantity
of reward which is provided and the weight age an employee gives to a specific reward.

Wylie (2004), according to which members of management primarily should be able to maintain the level of
their own motivation at high levels in order to engage in effective motivation of their subordinates.

Roshan Levina Roberts (2005), on his study investigated the impact of rewards and recognition on
employee motivation and explored that the factor rewards had great impact on the employees. The study on
the employees working in insurance companies in Western Cape proved that the motivational level of the
employee changes correspondingly with the alteration made on the reward and recognition.

Akanbi (2008), through his study investigated the influence of intrinsic and extrinsic factors of motivation
on the performance level of the employees. On analysis, it was found that with an increase in the external
motivation factor, namely salary, a corresponding increase was found in the workers ‟performance level.

Ali & Ahmad, (2009) - Investigated that there is positive relationship between “recognition and reward”,
“performance”. They stated that if reward and recognition are given to employee then there is a huge change
in their employee performance

37
Victoria Okojie (2009), focused on the various factors that influenced employee motivation in the National
Library of Nigeria and also tried to find the impact of reward policies on the employees‟ satisfaction level.
On analysis, the study concluded that an effective and efficient reward policy would greatly enhance
employee motivation, which in turn leads to greater productivity.

Nandanwar. M.V and Surnis S.V (2010) on their study found salary might retain good employees, but an
effective reward encourages the employees to improve their work

efficiency and getting their best result. According to them, more monetary rewards could lead to more
differences among employees and might have a negative impact on motivation level.

Lockley (2012) offering training and development programs that effectively contributes to personal and
professional growth of individual is another effective employee motivation.

Christine Bradler (2013) in an innovative study focused on the effect of public recognition on employee
motivation and experimented whether recognition should be given to all employees or only according to
their performance.

3.3 UNIQUENESS OF RESEARCH STUDY

The present study is to attain a deep insight into employee’s perception and understanding of the rewards
system that is available to the employees. This research hopes to articulate more knowledge that will enable
organizations to pay better attention when implementing reward strategies while also identifying ways to
better motivate employees better in this sector. The study focused on the different aspects covering
employee motivation and the various reward practices provided by the company, this might be helpful for
the management to identify the strengths, weakness, opportunities and threats of the company and also in
assessing the growth potential of the company and in framing future policies.

38
 CHAPTER 4
RESEARCH AND METHODOLOGY

4.1 RESEARCH APPROACH AND DESIGN

The success of research mainly depends on the methodology used by the researcher. The appropriate
methodology will improve the validity and authenticity of the findings. Research methodology is a
systematic method used in research to solve various problems that arise during the time of research work. It
may be defined as a science of studying how research is done scientifically. So that the observation provided
by the research is capable of being evaluated by the researcher himself or others who are interested in the
research.

The nature of study is descriptive. Both primary and secondary data were used for the study. Primary data
were collected through distribution of structured questionnaire. Psychologist Rensis Likert„s five level likert
scale is used for collection of primary data. Secondary data were mainly collected from the websites
provided by the company.

DATA COLLECTION

 Primary Data

Primary data is collected with the help of an online structured questionnaire and questionnaire is actually
created in Google forms and circulated among the employees. Likert Scale statement is been used to
measure the satisfaction level of the employees. The information obtained from this method will in finding
out the current happening in the organization.

 Secondary Data

Secondary data are those which have been collected by some other person his purpose and published.
Secondary data means the data which are already available. This includes:

 Google Scholar
 Wikipedia
 Various publications of central and state government.
 Magazines, newspapers, technical and trade journal books, and also with publications related with
business and industry.
 Company website.

39
 4.2 SOURCES OF ONLINE DATA

Online data storage refers to the practice of storing electronic data with a third party service accessed via the
Internet. It is an alternative to traditional local storage (such as disk or tape drives) and portable storage
(such as optical media or flash drives). It can also be called "hosted storage," "Internet storage" or "cloud
storage.”. For this study various data has been collected from the internet. Some of the websites are:

 Literature Review of motivation and Reward Systems.(2020, May, 13) retrieved from
https://www.ukessays.com/essays/business/literature- review-of- motivation- and-reward-systems-
business-essay.php

 Rewards and Recognition at ICICI Bank Volume IX, Issue VI, JUNE/2020)
http://shabdbooks.com/gallery/601-june2020.pdf

4.3 SAMPLING DESIGN

 Population

The Population of this study covers the employees of ICICI Bank Limited, at Kottayam.

 Sample size

A total number of 100 samples were selected from the employees of ICICI Bank Limited, Kottayam.

 Sampling Technique

The method of sampling was convenience sampling. Convenience sampling technique is used for this study. It is
a type of sampling where the first available primary data source will be used for the research without
additional requirements. In other words, this sampling method involves getting participants wherever you
can find them and typically wherever it is convenient. In convenience sampling no inclusion criteria
identified prior to the selection of subjects. All subjects are invited to participate.

40
4.4 DATA ANALYSIS TOOLS

Research can only complete with use of tools and techniques for the interpretation and analysis. They are
most powerful weapons to can up with exact or accurate result or hypothesis. After the data is collected
statistical tools used to analyse and interpret the data. Z-test and ANOVA are used to test the hypothesis and
draw inferences.

 Correlation Test

Correlation is a statistical technique that can show whether and how strongly pairs of variables are related.
The correlation is one of the most common and most useful statistics. A correlation is a single number that
describes the degree of relationship between two variables. In this study correlation analysis is used to study
to find the relationship between reward system and employee motivation.

 Percentages

Percentages refer to a special kind of ratio. Percentages are used in making comparison between two or
more series of data. Percentages are used to describe relationships; it is expressed as:

Percentage of Respondents = (No. of Respondents/Total No. of Respondents)*100

 Bar Charts

The bar chart is commonly used for presentation of qualitative data. The data can be continuous or discrete
data, which are plotted against discrete data intervals. The vertical bar diagram, also called bar chart where
the length or height of bars represent the numerical value of the event or measurement. Width or gap
between the bars is of no significance to the bar chart data, but they are uniform in a diagram.

 Pie Charts

A pie chart (or a circle chart) is a circular statistical graphic, which is divided into slices to illustrate
numerical proportion. In a pie chart, the arc length of each slice (and consequently its central angle and
area), is proportional to the quantity it represents. While it is named for its resemblance to a pie which has
been sliced, there are variations on the way it can be presented. The earliest known pie chart is generally
credited to Play fair’s Statistical Breviary of 1801.

41
4.5 REPORT STRUCTURE

The report is presented in seven chapters as given below;

Chapter 1 – Introduction

Chapter 2 – Industry profile

Chapter 3 – Review of literature

Chapter 4 – Methodology of the study

Chapter 5 – Data analysis, interpretation and inferences

Chapter 6 – Findings of the study

Chapter 7 – Conclusion

BIBLIOGRAPHY

ANNEXURES

4.6 LIMITATIONS OF THE STUDY

 The study was mainly based on primary data using questionnaire. Therefore, data collected was
limited.
 Because of the busy schedule of various heads, information couldn’t be gathered.
 The reluctance on the part of the employees in disclosing confidential information.
 Lack of available data, due to the Lockdown restrictions.

42
 CHAPTER 5

DATA ANALYSIS AND INTERPRETATION

ANALYSIS AND INTERPRETATION OF DATA

Data analysis and interpretation is the process of assessing meaning to the collected information and
determining the conclusion, significance and implications the findings. Data interpretation refers to the
implementation of the processes through which data is reviewed for the purpose of arriving at an
informational conclusion.

5.1 DESCRIPTIVE ANALYTICS

Descriptive Statistics is used to describe the demographic characteristics of the study. Pie charts are used for easy
understanding of the descriptive statistics.

43
 5.1 DESCRIPTIVE STATISTICS BASED ON GENDER

Table 5.1 Showing gender of respondents

SI.NO GENDER NO. OF PERCENTAGE

RESPONDENTS
1 Male 78 78%
2 Female 22 22%
Total 100 100%

Figure 5.1 Showing gender of respondents

GENDER OF RESPONDENTS

22%

Male
Female

INTERPRETATION

The above table and figure shows that out of 100 respondents from whom responses were obtained, 78% (78
respondents) are male and 22% (22 respondents) are female. The percentage of male respondents is much
higher than that of female respondents obtained with sample random sampling.

44
 5.2 DESCRIPTIVE STATISTICS SHOWING AGE OF RESPONDENTS

Table 5.2 showing the age of the respondents

SI.NO AGE NO. OF PERCENTAGE

RESPONDENTS

1 20-30 47 47%

2 30-40 30 30%

3 40-50 15 15%

4 Above 50 8 8%

100 100%

Figure 5.2 Showing Age of Respondents

AGE OF RESPONDENTS

8%

20-30
15%
47% 30-40
40-50

30%

INTERPRETATION

From the above table and figure it is found that 47% of respondents belong to the age group between 20-30
years, 30% of respondents belong to the age group between 30-40 years, 15% of respondents belong to the
age group 40-50 years and the rest of 8% belongs to the category above 50 years. Majority of the
respondents belongs to the age group between 20-30 years.

45
 5.3. DESCRIPTIVE STATISTICS SHOWING MARITAL STATUS OF RESPONDENTS

Table 5.3 Showing Marital Status of Respondents

SI.NO MARITAL NO. OF PERCENTAGE

STATUS RESPONDENTS
1 Married 22 22%

2 single 78 78%

100 100%

Figure 5.3 Showing Marital Status of Respondents

MARITAL STATUS OF RESPONDENTS

22%

Married
Single

78%

INTERPRETATION

The above table and figure shows that out of 100 respondents, 78% of respondents are unmarried and 22%
of are married. Majority of the respondents are married.

46
 5.4 DESCRIPTIVE STATISTICS ON GROUPS BASED ON QUALIFICATION

Table 5.4 Showing Qualification of Respondents

SL. NO QUALIFICATION NO. OF PERCENTAGE

RESPONDENTS
1 UG 66 66%
2 PG 34 34%
TOTAL 100 100%

Figure 5.4 Showing Qualification of Respondents

QUALIFICATION OF RESPONDENTS

34%

UG
PG

66%

INTERPRETATION

The above table and figure shows that out of 100 respondents, 66% of respondents are UG graduates and
34% of respondents are PG graduates.

47
 5.5 DESCRIPTIVE STATISTICS BASED ON TYPE BEST PREFFERED TYPE OF REWARD

Table 5.5 Showing Preferred Reward Type of Respondents

SL.
Reward type NUMBER OF PERCENTAGE
NO. RESPONDENTS
1 Monetary 80 80%
2 Non-monetary 20 20%
TOTAL 100 100

Figure 5.5 Showing Preferred Reward type of Respondents

REWARD TYPE

20%

Monetary

Non-monetary

80%

INTERPRETATION

From the above graph it is clear that, about 88 % of the respondent’s prefer monetary rewards to 22% who
prefer non-monetary rewards as well.

48
 5.6. DESCRIPTIVE STATISTICS SHOWING CATEGORY OF EMPLOYEE

Table 5.6 Showing Category of Employee

SL.
CATEGORY NUMBER OF PERCENTAGE
NO. RESPONDENTS
1 Permanent 65 65%
2 Probationary 30 30%
3 Others 5 5%
TOTAL 100 100

Figure 5.6 Showing Employee Category of Respondents

EMPLOYEE CATEGORY

5%

Permanent
30%
Probationary
Others
65%

INTERPRETATION

The above graph depicts that, majority of the respondents accounting to 65% respondents are permanent
employees and 30% are probationary employees and only 5% falls into others category

49
5.7 DESCRIPTIVE ANALYTICS BASED ON WORK EXPERIENCE OF THE EMPLOYEE
WITH ICICI BANK

Table 5.7 Showing Experience of the Respondents

SL.
EXPERIENCE NUMBER OF PERCENTAGE
NO. RESPONDENTS
1 0-2 years 30 30%
2 2-5 years 33 33%
3 5-10 years 26 26%
4 Above 10 years 11 11%
TOTAL 100 100

Figure 5.7 Showing experience of the respondents

EXPERIENCE
11%
0-2 years
30%
2-5 years
26%
5-10 years

Above 10 years
33%

INTERPRETATION

The graph clearly depicts that, majority of the employee community falls in 2-5 years category. The second
largest segment has 30% of employees who belong to 0-2 year’s community. It is therefore clear that, those
probationary employees will constitute approximately 30% of the chosen sample. We can also see that, 37%
of the sample has been working in ICICI Bank for 5 years or more.

50
 5.8 DESCRIPTIVE STATISTICS BASED ON EXCELLENCE OF REWARD SYSTEM AT
ICICI BANK

Table 5.8 Showing Reward System Rating

Statement: The bank has an NUMBER OF

SL.N excellent reward and PERCENTAGE
O. recognition system. RESPONDENTS

1 Strongly Disagree 5 5%
2 Disagree 7 7%
3 Neutral 19 19%
4 Agree 39 39%
5 Strongly Agree 30 30%
TOTAL 100 100

Figure 5.8 Showing Reward System Rating

Reward System Rating

Strongly Agree 30

Agree 39

Neutral 19
Number of Respondents

Disagree 7

Strongly Disagree 5

INTERPRETATION

The graph shows that, an average of 69% of the respondents agree that, the bank has an excellent reward
system. Only 12% of the respondents seem to be dissatisfied of the existing reward system maintained by
the bank. Whereas 19% of the respondents does not feel anything specific with respect to the reward
system.

51
 5.9 DESCRIPTIVE STATISTICS BASED ON EMPLOYEE PREFERENCE OF REWARD

Table 5.9 Showing Employee Preference of Reward

Statement: The bank NUMBER OF

SL.NO. provides both monetary and PERCENTAGE
non-monetary rewards. RESPONDENTS

1 Strongly Disagree 5 5%
2 Disagree 12 12%
3 Neutral 22 22%
4 Agree 36 36%
5 Strongly Agree 25 25%
TOTAL 100 100

Figure 5.9 Showing Employee Preference of Reward

Monetary and Non-monetary Rewards

Strongly Agree 25
Agree 36
Neutral 22
Number of Respondents
Disagree 12
Strongly Disagree 5

0 10 20 30 40

INTERPRETATION

The response to the statement, “The bank provides both monetary and non-monetary rewards” came up to
conclude that majority of the employees according to about 61% of the sample agrees to the statement. Only
a small segment consisting of 17% does not agree to the statement.

52
 5.10 DESCRIPTIVE STATISTICS BASED ON AWARENESS OF REWARDS

Table 5.10 Showing Awareness of Rewards

I am aware of the NUMBER OF

SL.NO rewards associated with PERCENTAG
. RESPONDEN E
my work.
TS
1 Strongly Disagree 7 7%
2 Disagree 10 10%
3 Neutral 26 26%
4 Agree 45 45%
5 Strongly Agree 12 12%
TOTAL 100 100

Figure 5.10 Showing Awareness of Rewards

Reward Awareness

Strongly Agree 12

Agree 45

Neutral 26 Number of

Disagree Respondents
10
Strongly Disagree 7

INTERPRETATION

The study shows that, about 57% of the respondents are aware of the rewards and other benefits offered by
the bank. Only 17% seems to have no idea about the working of reward system and additional benefits.

53
INFERENTIAL STATISTICS

Inferential statistics, unlike descriptive statistics, tell inferences about the phenomenon understudy with
respect to the selected sample (n=100). The statistical techniques such as correlation has been used to draw
inferences with regard to the objective of the study.

CORRELATION

Table 5.27 showing significant relationship between reward systems and employee motivation

REWARDS & EMPLOYEE

RECOGNITION MOTIVATION
Pearson Correlation 1 0.9462
REWARDS & Sign (2 tailed) 0.0000
RECOGNITION N 100 100
Pearson Correlation 0.9462 1
EMPLOYEE Sign (2 tailed) 0.0000
MOTIVATION N 100 100

Correlation results reveal that there is a very high positive and significant relationship between Rewards &
Recognition and Employee Motivation at 99% confidence level (r=0.9462, p=0.000; a=0.01). From the
results, it is clear that the employees who are rewarded and recognized for their work are highly motivated
to showcase better performance. The study findings are in agreement with past research findings that found
out that Reward and Recognition has a positive impact on Employee Motivation.

54
 CHAPTER 6

FINDINGS

 The reward system is effective at ICICI Bank.

 The number of male employees is 78%. That is, higher compared to that of female employees who are

22% of the sample.

 47% of the sample belong to 20-30 age category, 30% in 30-40 years age category, 15% in 40-50 age

category and only 8% falls into the category of people who is aged above 50 years.

 22% of the respondents are married and 78% are single.

 Majority of the employees, accounting to 66% are undergraduates and only 34% are post graduates.

 There is high preference for monetary benefits compared to non-monetary benefits. Only 20% prefer

to have additional non-monetary benefits.

 Majority of the employees at ICICI Bank are permanent employees, accounting to about 60%.

 An average of 69% of the employees agree that, the bank has an excellent reward system.

 About 57% of the respondents are aware of the rewards and other benefits offered by the bank. Only

17% seems to have no idea about the working of reward system and additional benefits.

 It is very clear that, the bank is very punctual in issuing rewards and recognition on time.

 The type of reward system followed by the bank is Basic pay plus incentives policy.

 A majority of about 72% of the employees are satisfied with the rewards and recognition provided by

the bank and only 13% is dissatisfied with the rewards they receive.

55
 The employees are well-focused and motivated by the career growth and professional development

opportunities provided by the bank.

 There is a greater claim that, reward has a positive impact on employee performance.

 It is evident that, the top management has an appreciable role in motivating employees.

 ICICI Bank has nurtured an excellent work culture and hygiene.

 Majority of the employees, accounting to more than 34% of employees are self- accomplished

working with ICICI Bank.

 The bank maintains an admirable channel for business communications and employee awareness.

 It is noted that, more than 60% of the employees working with ICICI Bank look forward to continue

working with ICICI Bank in future.

 Based on the correlation coefficient analysis it is found that there is a high positive relationship

between reward system and employee motivation with the value of 0.9462 (p value=0.000).

56
 CHAPTER 7

CONCLUSION

Reward system always act as a positive indicator for employee motivation. It is one of the most essential parts in
an organization only motivated employee can help in company’s development and success. Reward acts as a
factor for employee performance. The main objective of the study was to analyze if there is significant
relationship between reward system and employee motivation. And the level of satisfaction employee has
with reward system. Hopefully reward systems could motivate employees to give their maximum efforts
toward assigned work. The most effective way to motivate employees to achieve the desired goals of the
organization include creating an environment with strong, respectful and supportive relationship with the
organizations managers and employees and focus a genuine expression of appreciations for specific
employee achievements, service milestones and a day to day acknowledgement of performance excellence.

The study helps to analyze the attitude of employee towards the reward system in ICICI Bank. More specifically
it helped the company to investigate which of the reward system is most preferred and what other rewards
motivate its employees. It is found that reward system and employee motivation is having a significant
relationship.

57
 CHAPTER 8

BIBLIOGRAPHY

 Akanbi. (2008). Influence of Extrinsic and Intrinsic Motivation on Employees’ Performance.

Academy of Management Review, vol.29, no.3,1-4.

 Ali, R., & Ahmad, M. S. (2009). “The impact of reward and recognition programs on employee’s
motivation and satisfaction: an empirical study.” International Review of Business Research Papers,
5 (4), 270-279.

 Bruce, A. Pepitone, J.S. (1999) “Motivating Employees” McGraw-Hill International

 Christiane Bradler. (2013). Employee Recognition and Performance: A Field Experiment. CESIFO,
Center for Economic studies and IFO institute, working paper no.4164, category 4- labour market, 1-
30.
 Guide to Pricing Accounting Services (Fixed & Value Pricing) October 24, 2019(2020, May, 17).
Retrieved from https://futurefirm.co/guide-to-pricing- accounting-services/

 ICICI Bank Private Limited, https://www.icicibank.com/

 Lawler, E. E. (2003). Treat people right. San Francisco: Jossey-Bass Inc. McGraw- Hill Irwin.

 Literature Review of motivation and Reward Systems.(2020, May, 13) retrieved from
https://www.ukessays.com/essays/business literature-review- of-motivation- and-reward-systems-
business-essay.php

 Lockley,M. (2012)” The Secret to Motivating a Team” The Guardian, January 6,2012

58
 Maslow, A.H. (1943) “The Theory of Human Motivation” Psychological Review, 50(4)6

 Nandanwar. M.V, Surnis S.V, and Nandanwar L.M. (2010). Intervening Factors Affecting the
relationship between Incentives and Employee Motivation – A case study of Pharmaceutical
manufacturing organization in Navi Mumbai. Journal of Business Excellence, Vol. 1, Issue 2, 6-11.

59
 Annexure

QUESTIONNAIRE

1. Gender

a) Male b) Female

2. Age

a) 20-30 b) 30-40 c) 40-50 d) Above 50

3. Martial Status

a) Married b) Single

4. Qualificationa)

a) UG b) PG

5. What kind of reward do you feel more effective?

a) Monetary b) Non–Monetary

6. Category of employee

a) Permanent employee b) Probationary employee c) Others

7. Work experience with ICICI Bank

a) 0-2 years b) 2- 5 years c) 5 to 10 years d) Above 10 years

8. The bank has an excellent reward and recognition system

a) Strongly Disagree
b) Disagree
c) Neutral

d) Strongly agree

e) Agree

60
9. The bank provides both monetary and non monetary rewards.

a) Strongly Disagree
b) Disagree
c) Neutral

d) Strongly agree

e) Agree
10. I am aware of the rewards associated with my work.

a) Strongly Disagree
b) Disagree
c) Neutral

d) Strongly agree

e) Agree

61