International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume VII, Issue VI, June 2018 | ISSN 2278-2540
Impact of Rewards and Recognition on Employees in
the Banking Sector
Dr Saritprava Das1, Prof Preeti Narendra2
1
Dean, Academics, ITM B School, Kharghar, Navi Mumbai, Maharashtra, India
2
Assistant Professor, HR, ITM B School, Kharghar, Navi Mumbai, Maharashtra, India
Abstract: - The most important motivating factor in an II. LITERATURE REVIEW
organization is how well the policies and processes related to
Rewards and Recognition are in place. In banking sector, we Many of the studies focus on the effects of rewards on task
observe that in most of the Banks, this has been taken an interest and performance and are found in the literature
important and various initiatives have been taken towards it. concerned with motivation: both intrinsic and extrinsic
Also, it’s observed that with this implementation various issues motivation. In intrinsically motivated behavior there is no
related to people management have got addressed /resolved. We reward except with the task itself. Reward and recognition
have also seen that attrition issue in an organization have got programs come within the argument on extrinsically
addressed. HDFC Bank and Kotak Mahindra Bank were taken motivated behavior that occurs when an activity is rewarded
into study to understand how Reward and Recognition has been
implemented and how it has been accepted by the employees.
by incentives not inherent in the task. Bonus systems also
Several types of rewards and recognition have direct costs differ in that bonuses are a flexible reward provided after the
associated with them, such as cash bonuses, stock awards, and a achievement of a goal (making it reactive). Motivation has
wide variety of company-paid perks, like car allowances, paid been defined as the psychological process that gives behavior
parking, and gift certificates. Other types of rewards and purpose and direction. Understanding what motivates
recognition may be less tangible, but still very effective. These employees is one of the key encounters for managers.
"non-monetary" rewards include formal and informal Although it is not possible directly to motivate others, it is
acknowledgement, assignment of more enjoyable job duties, nonetheless important to know how to influence what others
opportunities for training, and an increased role in decision- are motivated to do, with the overall aim of having employees
making. This paper is basically to understand that which types
of rewards and recognitions are meaningful to the employees in
identify their own welfare with that of the organization? In
the banking sector and how this can have an immensely positive general terms rewards programs come within the overall idea
impact on performance, productivity, and ultimately company of compensation strategies which are defined as the
profits. “deliberate utilization of the pay system as an essential
integrating mechanism through which the efforts of various
I. INTRODUCTION subunits or individuals are directed towards the achievement
of an organization’s strategic objectives. They are
A sound and effective banking system is the backbone of
an economy. This research project is based on
handling the problem at HDFC Bank regarding attrition
management tools that hopefully contribute to a firm's
effectiveness by influencing individual or group behavior. All
businesses use pay, promotion, bonuses or other types of
situation pertaining there with respect to the rewards and rewards to encourage high levels of performance. At a
recognition system in the bank. The economy of a country minimum, employees expect the organization to provide fair
can function smoothly and without any hassles only if the pay, safe working conditions, and fair treatment. Like
banking system operates functionally well. And for the management, employees often expect more, depending on the
functional operation of the banks, employees are one of the strength of their needs for security, status, involvement,
most important participants of the success. For the employee challenge, power, and responsibility. For organizations to
dedication and motivation, rewards and recognitions play one address these hopes an understanding of employee motivation
of the major parts. Rewards and Recognitions form the basis is required. The infinite question is how organizations reach a
of motivation for any employee in any organization across potential and how they stimulate creativity and foster in their
varied industries. The impact of rewards and recognitions can people the desire to succeed and to achieve self-fulfillment
be immense. The desired outcome of rewards and through their work. Employee recognition is the timely,
recognitions is to improve performance, motivate an informal or formal acknowledgement of a person’s or team’s
employee, engage him in his work, and help in building a behavior, effort or business result that supports the
feeling of confidence and satisfaction. Another important goal organization’s goals and values, and which has clearly been
is retaining top-performing workers. beyond normal expectations.
www.ijltemas.in Page 160
International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume VII, Issue VI, June 2018 | ISSN 2278-2540
Appreciation is a fundamental human need. Employees success, Giving them a free pass, Electing them to the Wall of
respond to appreciation expressed through recognition of their Fame.
good work because it confirms their work is valued. When
III. RESEARCH METHODOLOGY
employees and their work are valued, their satisfaction and
productivity rises, and they are motivated to maintain or The method of data collection used in this survey is through
improve their good work. the Questionnaires: which are the forms which are completed
and returned by respondents. It is an inexpensive method that
is useful where literacy rates are high, and respondents are co-
operative. Questionnaires may be used to collect regular or
infrequent routine data, and data for studies. Some of the data
often obtained through questionnaires include demographic
characteristics, fishing practices, opinions of stakeholders on
According to studies, Benefits received are as follows: fisheries issues or management, general information on fishers
Increased individual productivity – the act of and household food budgets. The information that can be
recognizing desired behavior increases the repetition obtained through questionnaires consists of almost any data
of the desired behavior, and therefore productivity. variable. In an open-ended format, keywords and other
This is classic behavioral psychology. The reinforced structuring procedures should be imposed later to facilitate
behavior supports the organization’s mission and key database entry and analysis, if necessary.
performance indicator Sample Size
Greater employee satisfaction and enjoyment of
work - more time spent focusing on the job and less Researcher has taken a sample size of 215 employees of
time complaining. HDFC Bank and 135 employees of Kotak Mahindra Bank.
Higher loyalty, satisfaction, Teamwork, Retention of
quality employees, lower employee turnover, Better IV. DATA ANALYSIS AND INTERPRETATION
safety records, fewer accidents on the job and Lower This survey questionnaire consists of both closed and open-
absenteeism ended questions:
There are various types of rewards and recognition provided This questionnaire was surveyed 215 employees of HDFC
by the managers to their employees, they can be: A pat on Bank and 135 employees of Kotak Mahindra Bank. The
their back, praising them before all the other employees, following were the findings from the data from this survey.
acknowledgement mail sent to the concerned person keeping
all the other employees in CC, awarding the employee for his 1. How is the Reward system in your organization?
contributions in various annual functions of the company, -Monetary
Flexing those hours, Sending a handwritten note, Making
work fun, Helping them connect, Loosening the shoes, -Non-Monetary
Sending them to the showers, Rewarding effort as well as -Both
Chart Title
HDFC Bank Kotak Mahindra Bank
128
65
56
40
31 30
Monetary Non Monetary Both
www.ijltemas.in Page 161
International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume VII, Issue VI, June 2018 | ISSN 2278-2540
Findings: The researcher could also see that 14 % of employees were
not clear on the policies of the bank as they had opted for an
The total sample size of 215 employees was taken into
option of “BOTH” in the questionnaire.
consideration and the said questionnaire was administered. I
could observe 59 % of employees confirmed that the benefits Thus, it is very important for an organization to have clear
were towards monetary gains as far as the policies of reward defined R&R policies in place as well as its more essential
and recognition in the organization. A similar percentage of that these are disseminated to the employees on time as well
48 % was also seen in Kotak Mahindra bank employees. as benefits of these are read and understood.
2. What are the various Non monetary rewards practiced in
your organization?
HDFC Bank Kotak Mahindra Bank
Cash Bonus Stock Awards Car Allowances Cash Bonus Stock Awards
Paid Parking Gift Certificates
7%
30%
22% 22%
63% 26% 30%
FINDINGS: I could observe that both the organizations In case of HDFC Bank, car allowance is one aspect that
believe in having an aggressive stock option R&R policy in forms a part of the policy there. Whereas in case of Kotak
place. In case of HDFC Bank, its 63% and for Kotak Mahindra Bank, “Paid parking and also gift certificates” are
Mahindra Bank it is 30%. In only certain verticals bank has a given to the employees which motivate them .
process to give cash bonus allowances in both the
3. Is the reward system practiced in the organization properly
organizations which accounts to 30% in case of HDFC Bank
communicated to all the employees in the organization?
and 22% in Kotak Mahindra Bank.
HDFC Bank Kotak Mahindra Bank
Yes No Yes No
37%
49%
51%
63%
www.ijltemas.in Page 162
International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume VII, Issue VI, June 2018 | ISSN 2278-2540
FINDINGS: having much knowledge and visibility towards these policies
(63% as compared to 51% of HDFC bank). Therefore, it is
Both the organizations need to work on having much
always advisable that, the rewards and recognition programs
aggressive methods of communicating about the R&R
need to be communicated to all the employees in time.
methods to all its employees. While in this survey what was
observed was that Kotak Mahindra Bank employees are 4. How often are the employees rewarded?
FINDINGS: In HDFC Bank, the frequency for giving a larger motivation to the recipient of the reward. The
rewards and recognitions is more on quarterly basis as policies followed by Kotak Bank are quite good and
compared to Kotak Mahindra Bank which is on monthly aggressive as we can observe that they use a monthly
basis. frequency model.
The organization should ensure that the rewards and 5. In your organization employees are considered for Reward
recognition are given instantly to the employees, so that it has and Recognition mostly for?
www.ijltemas.in Page 163
International Journal of Latest Technology in Engineering, Management & Applied Science (IJLTEMAS)
Volume VII, Issue VI, June 2018 | ISSN 2278-2540
Findings: In HDFC Bank, % of employees are rewarded choose satisfying working relationships and challenging work
only if customer gets satisfied in our sample survey. While in assignments over monetary rewards. An employee rewards
Kotak Mahindra Bank, it gives more focus and importance to program that bribes employees ultimately will fail, and the
employees who give across innovative and creative ideas company will have very little to show for its efforts except
along with increase in the level of their productivity towards evidence of poorly spent human resources funds. High-
the business of the same. In order to get the best out of the performing employees that value money and other monetary
employees the R&R methods should have all important perks might find that nonmonetary reward systems lack the
parameters covered which leads to cost saving, TAT incentives needed to bolster motivation and increase their
improvement, productivity, and reduction in complaints. productivity. Not all employees value handwritten notes or
Thus, in HDFC Bank, the R&R method should get reviewed walls that display the employee of the month. Some
each year by HR Department so that it has direct correlation employees might also feel that their company is not willing to
with the business policies. pay for their hard work.
6. How is the company benefited from the rewards and Scope for Future Study
recognition?
There are many areas where there is scope for further studies
Findings: for example in this study only few parameters have been
taken so future study can add more questions and study
In case of HDFC Bank, we can observe that, effective
extensively and increase the sample size also.
rewards and recognitions results into increase in teamwork
and reduces the absenteeism level of the employees. Whereas
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