INTRODUCTION

1.1 COMPANY PROFILE OF ITC

ITC is one of India's foremost private sector companies with a market capitalization of nearly US $
14 billion and a turnover of over US $ 5 billion. ITC is rated among the World's Best Big
Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among
India's Most Respected Companies by Business World and among India's Most Valuable Companies
by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study
conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50
best performing companies compiled by Business Week.

ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging,
Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel,
Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding
market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and AgriExports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods &
Confectionery, Branded Apparel, Personal Care and Stationery.

As one of India's most valuable and respected corporations, ITC is widely perceived to be
dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a
commitment beyond the market". In his own words: "ITC believes that its aspiration to create
enduring value for the nation provides the motive force to sustain growing shareholder value. ITC
practices this philosophy by not only driving each of its businesses towards international
competitiveness but by also consciously contributing to enhancing the competitiveness of the larger
value chain of which it is a part."
ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of
growth anchored on its time-tested core competencies: unmatched distribution reach, superior brandbuilding capabilities, effective supply chain management and acknowledged service skills in
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hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant
share of these emerging high-growth markets in India.

ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the
country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'eChoupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by
empowering Indian farmers through the power of the Internet. This transformational strategy, which
has already become the subject matter of a case study at Harvard Business School, is expected to
progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the
Company's marketing reach.

ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is aggressively
pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services
and business process outsourcing. ITC's production facilities and hotels have won numerous national
and international awards for quality, productivity, safety and environment management systems. ITC
was the first company in India to voluntarily seek a corporate governance rating.

ITC employs over 25,000 people at more than 60 locations across India. The Company continuously
endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently
reward more than 3, 60,000 shareholders, fulfill the aspirations of its stakeholders and meet societal
expectations. This over-arching vision of the company is expressively captured in its corporate
positioning statement: "Enduring Value, for the nation, for the Shareholder."

FORMATION AND EVOLUTION

ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India
Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre
of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by
purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata,
for the sum of Rs. 310,000. This decision of the Company was historic in more ways than one. It
was to mark the beginning of a long and eventful journey into India's future. The Company's
headquarter building, 'Virginia House', which came up on that plot of land two years later, would go
on to become one of Kolkata's most venerated landmarks. The Company's ownership progressively
Indianised, and the name of the Company was changed to I.T.C. Limited in 1974.

In recognition of the Company's multi-business portfolio encompassing a wide range of businesses Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers,
Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the
Company's name were removed effective September 18, 2001. The Company now stands
rechristened 'ITC Limited'.

Though the first six decades of the Company's existence were primarily devoted to the growth and
consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings
of a corporate transformation that would usher in momentous changes in the life of the Company.

ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for
ITC's Cigarettes business. It is today India's most sophisticated packaging house.

In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which
was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels
business was rooted in the concept of creating value for the nation. ITC chose the hotels business for
its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large
scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a
position of leadership, with over 100 owned and managed properties spread across India.

In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards
Limited, which today has become the market leader in India. Bhadrachalam Paperboards
amalgamated with the Company effective March 13, 2002 and became a Division of the Company,
Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's
Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards'
technology, productivity, quality and manufacturing processes are comparable to the best in the
world. It has also made an immense contribution to the development of Sarapaka, an economically
backward area in the state of Andhra Pradesh. It is directly involved in education, environmental
protection and community development. In 2004, ITC acquired the paperboard manufacturing
facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai
Unit allows ITC to improve customer service with reduced lead time and a wider product range.

In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since
inception, its shares have been held by ITC, British American Tobacco and various independent
shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its
name was changed to Surya Nepal Private Limited (Surya Nepal).

In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a
major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni
Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the
5

Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in
November 2002.

Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for
export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and
now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh.
Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened
'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal
Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.

In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In
2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and
Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of
greeting cards in eight languages and 'Expressions Paperkraft', a range of premium stationery
products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery
segment.

ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality
relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later
expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear
(2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players,
in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the
single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a
special 'Celebration Series', taking the event forward to consumers. In 2007, the Company
introduced 'Miss Players'- a fashion brand in the popular segment for the young woman.

In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC
Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC
Infotech is one of Indias fastest growing global IT and IT-enabled services companies and has
established itself as a key player in offshore outsourcing, providing outsourced IT solutions and
services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking,
Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel,
Hospitality and Transportation) and Media & Entertainment.

ITC's foray into the Foods business is an outstanding example of successfully blending multiple
internal competencies to create a new driver of business growth. It began in August 2001 with the
introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the
confectionery and staples segments with the launch of the brands mint-o and Candyman
confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the introduction of Sunfeast as the
Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with
Bingo! in 2007. In just seven years, the Foods business has grown to a significant size with over 200
differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly
growing market share and a solid market standing.

In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain
found yet another expression in the Safety Matches initiative. ITC now markets popular safety
matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.

ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its
partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep
across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and
Nagchampa.

ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care
products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills
provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women
(Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers
the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in
September, October and December 2007 respectively. The Company also launched the 'Superia'
range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and
Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.

HISTORY AND DEVELOPMENT OF COMPANY AND INDUSTRY

ITC constantly endeavours to benchmark its products, services and processes to global standards.
The Company's pursuit of excellence has earned it national and international honours. ITC is one of
the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of "the world's best big
companies". Forbes has also named ITC among Asia's'Fab 50' and the World's Most Reputable
Companies.
ITC has several firsts to its credit:
ITC is the first from India and among the first 10 companies in the world to publish its Sustainability
Report in compliance (at the highest A+ level) with the latest G3 guidelines of the Netherlands-based
Global Reporting Initiative (GRI), a UN-backed, multistakeholder international initiative to develop
and disseminate globally applicable Sustainability Reporting Guidelines.
ITC is the first Indian company and the second in the world to win the prestigious Development
Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing ITC e-Choupal
initiative which has achieved the scale of a movement in rural India. The Development Gateway
Award recognizes ITC's e-Choupal as the most exemplary contribution in the field of Information
and Communication Technologies (ICT) for development during the last 10 years. ITC e-Choupal
won the Award for the importance of its contribution to development priorities like poverty
reduction, its scale and replicability, sustainability and transparency.
ITC has won the inaugural 'World Business Award', the worldwide business award
recognising companies who have made significant efforts to create sustainable
livelihood opportunities and enduring wealth in developing countries. The award
has been instituted jointly by the United Nations Development Programme
(UNDP), International Chamber of Commerce (ICC) and the HRH Prince of Wales
International Business Leaders Forum (IBLF).

ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact
Award in 2007 for its invaluable contribution to the triple bottom line benchmarks
of building economic, social and natural capital for the nation.
ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility
(Asia)' in 2007, the Award for CSR in Emerging Economies 2005 and
Excellence in Corporate Governance' in the same year. These Awards have been
instituted by the Institute of Directors, New Delhi, in association with the World
Council for Corporate Governance and Centre for Corporate Governance.
The Company's Green Leaf Threshing plants at Chirala and Anaparti in Andhra Pradesh are the first
units of their kind in the world to get ISO 14001 environment management systems certification.
ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality certification
and the first among cigarette factories in the world to be awarded the ISO 14001 certification.
ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001 Environment
Management Systems certification.
ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in the
world.
ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first independent R&D
centre in India to get ISO 9001 accreditation and certified with ISO 14001 for Environment
Management Systems by DNV. The R&D Centre is also certified for the standard
ISO/IEC17025:2005, by National Accreditation Board for Testing and Calibration Laboratories
(NABL). This certification is awarded for "General requirement for the competence of Testing &
Callibration Laboratories".

10

ITC Chairman Y C Deveshwar has received several honours over the years. Notable among them
are:

Year

Award

2010

Crystal Award to Bukhara for best Indian Restaurant

2008

Hewit Best Employer Award

2007

SAM/SPG Sustainability Leadership Award conferred at the International

Sustainability Leadership Symposium, Zurich.

2006

2006
2005
2001

1998
1996
1994

Business Person of the Year from UK Trade & Investment, the UK

Government organization that supports overseas businesses in that country.
Inducted into the `Hall of Pride' by the 93rd Indian Science Congress.
Honoured with the Teacher's Lifetime Achievement Award.
Manager Entrepreneur of the Year from Ernst & Young Retail Visionary of
the Year from Images, India's only fashion and retail trade magazine.
Honorary Fellowship from the All India Management Association
Distinguished Alumni Award from IIT, Delhi.
Marketing Man of the Year from A&M, the leading marketing magazine.

ITC CORPORATE STRATEGIES

11

ITC is a board-managed professional company, committed to creating enduring value for the
shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect
for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong
corporate governance policies and systems.

ITCs corporate strategies are:

Create multiple drivers of growth by developing a portfolio of world class businesses that best
matches organizational capability with opportunities in domestic and export markets.
Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri
Business and Information Technology.
Benchmark the health of each business comprehensively across the criteria of Market Standing,
Profitability and Internal Vitality.
Ensure that each of its businesses is world class and internationally competitive.
Enhance the competitive power of the portfolio through synergies derived by blending the diverse
skills and a capability residing in ITCs various businesses.
Create distributed leadership within the organization by nurturing talented and focused top
management teams for each of the businesses.
Continuously strengthen and refine Corporate Governance processes and systems to catalyze the
entrepreneurial energies of management by striking the golden balance between executive freedom
and the need for effective control and accountability.

Flowing from the concept and principles of Corporate Governance adopted by the Company,
leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of
shareholders, carries the responsibility for strategic supervision of the Company. The strategic
12

management of the Company rests with the Corporate Management Committee comprising the
whole time Directors and members drawn from senior management. The executive management of
each business division is vested with the Divisional Management Committee (DMC), headed by the
Chief Executive. Each DMC is responsible for and totally focused on the management of its
assigned business. This three-tiered interlinked leadership process creates a wholesome balance
between the need for focus and executive freedom, and the need for supervision and control.
BOARD OF DIRECTORS

CHAIRMAN
Y C Deveshwar

EXECUTIVE DIRECTORS
Anup Singh
K Vaidyanath

Anil Baijal

NON-EXECUTIVE DIRECTORS
R K Kaul

S H Khan

S B Mathur

D K Mehrotra

H G Powell

P B Ramanujam

Anthony Ruys

Basudeb Sen

B Vijayaraghavan

ITC MISSION

13

To enhance the wealth generating capability of the enterprise in a globalizing environment,

delivering superior and sustainable stakeholder value.

ITC VISION
To sustain ITCs position as one of Indias most valuable corporation through world class
performance, creating growing value for the Indian economy and the companys stakeholders

WELCOME MISSION
To be recognized as a premier professional organization providing the finest tourism, hospitality and
travel related consumer service in the country and there by contributing to the achievement of the
following national and corporate priorities.

CORPORATE MISSION
Generating adequate economic surplus to meet expectation of all stakeholders.

NATIONAL MISSION
Maximizing foreign exchange earnings, development of human resources and employment generation.

ITC MOTTO
A WOW at every moment of truth

THE WELCOM GROUP SLOGAN

14

Nobody Gives You India The Way WE do.

LOGO

ITC CORE VALUES

ITC's Core Values are aimed at developing a customer-focused, high-performance organization
which creates value for all its stakeholders:

Trusteeship
As professional managers, we are conscious that ITC has been given to us in "trust" by all our
stakeholders. We will actualize stakeholder value and interest on a long term sustainable basis.

Customer Focus
We are always customer focused and will deliver what the customer needs in terms of value, quality
and satisfaction.

Respect for People

We are result oriented, setting high performance standards for ourselves as individuals and teams.
We will simultaneously respect and value people and uphold humanness and human dignity.

15

We acknowledge that every individual brings different perspectives and capabilities to the team and
that a strong team is founded on a variety of perspectives.
We want individuals to dream, value differences, create and experiment in pursuit of opportunities
and achieve leadership through teamwork.

Excellence
We do what is right, do it well and win. We will strive for excellence in whatever we do.

Innovation
We will constantly pursue newer and better processes, products, services and management practices.

Nation Orientation
We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals,
we will make no compromise in complying with applicable laws and regulations at all levels

16

PRODUCTS AND SERVICES

Take an abiding commitment to world-class quality. Add deep market insight; cutting-edge
technology; a pervasive culture of innovation. And you have ITC brands that do India proud across a
range of products and services: Aashirvaad, Sunfeast, Kitchens of India, mint-o, Candyman, Bingo!,
Wills Lifestyle, John Players, Miss Players, Essenza Di Wills, Fiama Di Wills, Vivel Portfolio,
Superia, ITC-Welcomgroup, Classmate, Paperkraft, Expressions, AIM, Mangaldeep, Expressions
Aromatic Candles

17

ABOUT ITC HOTELS

ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai,
which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand
has become synonymous with Indian hospitality. With over 100 hotels in more than
80 destinations, ITC-Welcomgroup has set new standards of excellence in the hotel
industry in Accommodation, Cuisine, Environment and Guest Safety. ITC's Hotels business is one of
India's finest and fastest growing hospitality chains. ITC Hotels' commitment to delivering globally
benchmarked services, embedded in a culture deeply rooted in India's rich tradition of hospitality,
gives it a unique and distinct identity. A leader in the premium hospitality segment, ITC Hotels have
had the privilege of hosting world leaders, Heads of State and discerning guests from across the
world and within.

ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation' in

the hospitality industry. It was the first to launch the idea of a 'Hotel within a
Hotel' by segmenting, customizing and branding hotel services like 'ITC One',
'Towers' and the 'Executive Club'. Each of these caters to specialized needs of the
global business traveler with unmatched quality and a range of custom-made
services.

ITC-Welcomgroup was the first to introduce branded cuisine. Its restaurants Bukhara, Dakshin and
DumPukht are today powerful cuisine brands. ITC-Welcomgroup also
showcases international cuisine in its specialty restaurants West View and Pan
Asian.

18

ITC has strategically customized its hotels and appropriately categorized them to fulfill the service
and budgetary needs of travelers. ITC-Welcomgroup has an exclusive tie-up with global partner
Starwood for its top of the line premium brand, the 'Luxury Collection'. ITC Hotels was also
instrumental in bringing the 'Sheraton' brand to India, with which it enjoyed a three-decade exclusive
partnership.

ITC-Welcomgroup's properties are classified under four distinct brands:

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ITC MAURYA, DELHI

Overview
The ITC Maurya, New Delhi has been the preferred residence of visiting heads of state and global
business leaders for over 25 years. This extraordinary hotel combines an historic aura with
contemporary facilities to create an unrivalled luxury hotel experience.

Situated in the heart of the exclusive Diplomatic Enclave and surrounded by views of Delhis green
belt the forested ridge, our business hotel is a convenient 14 kilometers (25 minutes) from the
International Airport. An imposing structure of timeless luxury boasts inspiring architecture and a
majestic ambiance a tribute to the age of the great Mauryan Dynasty, which created the golden era
of Indian history.

440 rooms, including 29 uniquely-designed suites, are available in a bouquet of room categories,
from the Executive Club which pioneers a tradition in corporate hospitality to the Towers eight
luxurious floors of elegance and tranquility. The Luxury Room combines the best of opulence,
space, and service standards and the ITC One our premium room category offers magnificent
decor, impeccable service, and the latest in modern conveniences and amenities. Behind the
lavishness is a crisp efficiency and a deep understanding of the needs of the global traveler.

One of the most popular dining destinations in the city, ITC Maurya, New Delhi additionally offers
an assortment of internationally acclaimed cuisine including the Bukhara, which is a world
renowned restaurant.

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SUPPORTING DEPARTMENTS

HUMAN
RESOURCES

TECHNICAL
SERVICES
LEARNING
SERVICES
FINANCE
DEPARTMEN
T

HORTICULTUR
E

Supportin
g
Departme
nts

LOSS
PREVENTATION

21

SALON- DIWILLS
(BEAUTY
PARLOUR)
HEALTH
CLUB
(KAYA
KALP)

SIX
SIGMA
SALES &
MARKETING

SWOT ANALYSIS

STRENGTH

WEAKNESS

Based on Indian Value

Affordable only for high profile guests

Different categories of room

Inflexibility in room rates

available like GPS (Especially for

HOS)

Special EVA floor for Single lady

travelers
OPPORTUNITY

Close to Airport

Good numbers of rooms as

THREAT

Near by Competitors Like Taj

compared to the other hotels

Diversified business, therefore can

use ITC FMCG products in the
hotel

RESEARCH METHODOLOGY

22

2.1 STATEMENT OF THE PROBLEM

To investigate and analyze the factors which motivate employees, under consideration of individual
characteristics.

2.2 OBJECTIVE AND SCOPE OF THE STUDY

PRIMARY OBJECTIVE

To find out the most critical factors for motivation and job satisfaction.
To study the extent of these factors present in the selected company
ITC Maurya.

SECONDARY OBJECTIVE

To study the importance of these factors for the employees.

To study enlighten the area where motivation is needed the most.
23

2.3 MANAGERIAL USELFULNESS OF STUDY

The project is based to study and identify the motivational factors in the employees working in ITC
Maurya. On the basis of study evaluation will be done to know different motivational factors with
which employees are satisfied & engaged and which are the factors where Maurya is lacking the
most.

2.4 TYPE OF RESEARCH AND RESEARCH DESIGN

The following chapter provides the reader with information about the research process in
order to enable him/her to understand and to evaluate the investigation and the results. For these
purposes a short overview about the research process, positivism and hermeneutics, the quantitative
and qualitative research, the data collection, a reflection on objectivity, reliability and validity as
well as criticism towards the chosen methods are presented.

The first step in doing this research was the formulation of the problem and the creation of
the research questions. Secondary data was gathered in the form of books and articles in order to
improve the understanding of the research problem. The questionnaire about motivation and work

24

was created, based on the knowledge of the theoretical research. Thereby, several decisions such as
the form of the questions and the language used in the questionnaire had to be made.

The questionnaires were collected and a period of editing and analyzing the data started. During the
entire time between determining the methodology and the end of writing down the analysis the
frames of reference was created. Finally, the research report was completed by adding the conclusion
and the closing comments.

2.4.1 THE RESEARCH PROCESS - A SHORT OVERVIEW

Each research problem is in some way unique, and therefore requires a tailored research procedure.
In the following, the research process of this study is shown.

25

Formulation of the
problem and the
research questions
Methodology

Questionnaire

Frames of
Reference

Analysis

Conclusion

Figure 2.4.1: Stages in the research process (own creation)

2.4.2 QUESTIONNAIRE ABOUT MOTIVATION AND WORK

The primary advantage of questionnaires is the opportunity to reach a high number of respondents.
Moreover, there is no interviewer bias and the costs are relatively low. In addition, respondents may
be more willing to provide information about certain issues, have time to answer questions, and may
answer the questions at times that are convenient (Bickman and Rog, 1998). On the other hand, it
26

may consume a lot of time when waiting for answers, non response rates may be high, existing bias
due to non response, especially where response is slow, and certain types of questions cannot be
asked (Douglas and Craig, 1983). Furthermore, misinterpretations and misrepresentations are
common with questionnaires.

The questionnaire about motivation and work was based on a job description questionnaire created
by Hackman and Oldham (1980) and was addressed to a sample of employees of the company. The
questionnaire comprised of three pages, and was divided in four parts. In the first part the
respondents

were

asked

to

describe

their

job

and

to

evaluate

their

extent

of

satisfaction/dissatisfaction with the respective job feature. For that purpose, the persons had to
choose a number out of a scale from one ("little extent" or "dissatisfied") to eight ("much" or
"satisfied"). The second section included statements about certain job aspects, which had to be
evaluated by the respondents according to the extent of importance that they attach to them. The
persons had the opportunity to choose a figure out of a scale from one ("less important") to eight
("very important"). To sum up, the first part was aimed to investigate the extent of the presence of
certain job features as well as the employees' level of satisfaction with them, whereas the second part
was used to realize the strength of certain work motives. Part three deals with certain kinds of
benefits that are offered by the company. The respondents had to evaluate how important these
benefits are for them. A scale from one ("less important") to eight ("very important") was used as
well. Furthermore, they had the opportunity to propose additional benefits. The last part was
dedicated to gather general information such as the current age range, the gender, the marital status,
the years a person has been working in that company as well as the work area and the position within
the company.
This individual data comprised the subgroups that represent the basis for the analysis. Finally, the
respondents had the possibility to write down additional information about their job that could be
helpful to understand that job.

27

In order to minimize misinterpretations and misrepresentations, the questions as well as the

instructions have been designed in a clear and precise way so that different persons would not
interpret them differently.

Predominantly fixed-alternative questions but also open-ended questions, albeit only to a minor
extent, were used to gather information. Therefore, the structure of this questionnaire can be
described as some kind of intermediate. Most of the fixed-alternative questions employed a scale
from one to eight to capture the responses. The other fixed-alternative questions are questions, which
permit the respondents to choose an alternative out of several possible answers. Only a limited
amount of open-ended questions allowed the respondents to answer in their own words.

2.4.3 QUANTITATIVE AND QUALITATIVE RESEARCH

Research methodology is often divided into the quantitative and qualitative research. Both of
these types of research are considered in research design, data collection, analysis, and reporting
(Bickman and Rog, 1997). As mentioned before, the quantitative method allows the measurement of
relationships between variables in a systematic and statistical way and is therefore best suited for the
positivistic researcher.

The qualitative method, on the other hand, is most appropriate for the

hermeneutic researcher in order to gain a deeper understanding of a special research problem

(Cassell and Symon, 1995).

According to Bickman and Rog (1997), a researcher has to find the tools which best fit the
research questions, context, and resources at hand. Thereby, multiple tools are often needed to
research a topic thoroughly and to provide results that can be used. Cassell and Symon (1995)
pointed out that a combination of quantitative and qualitative methods in the same study is called the
pragmatic view. That means tools that are available and appropriate to best serve the research
problem should be used. Furthermore, Gordon and Langmaid (1988) argued that the results of
28

quantitative and/or qualitative research might permit various interpretations. In other words, there is
no 'right way' or 'only way' to interpret the findings of the research.

The quantitative research approach focuses on questions such as "How many?" and "How
often? which is easily processed in the form of numbers. In other words, the collected material can
be expressed and analyzed in numbers. However, according to Gordon and Langmaid (1988), the
quantitative research holds not only the advantage of statistical and numerical measurement, but also
the advantages of sub-group sampling or comparisons. Moreover, the quantitative research offers the
possibility to repeat the survey in the future and to compare the results.

In this study quantitative as well as qualitative methods (triangulation) were employed. The
questionnaire provided predominantly quantitative data and to a minor extent qualitative data.

2.5 DATA COLLECTION METHOD

The collection of data represents a prerequisite for carrying out a research and can be derived
from a number of different sources. These sources are classified into secondary and primary data
(Clarke and Dawson, 1999).

McNeill (1985) pointed out that secondary data is material that has been gathered previously,
and primary data consists of new material collected by the researcher for the purpose at hand by the
use of questionnaires, interviews, and participant observation.

2.5.1 SECONDARY DATA

Secondary data, in comparison with primary data holds the advantage that it is cheap and
most of the time easy to access (Churchill, 1995). However, it may also entail a large amount of

29

flawed and/or inappropriate data (Bickman and Rog, 1997). According to the literature, the
researcher should first focus on secondary data in the process of data collection.

Although a problem is not completely solved by secondary data, it contributes to a better

statement of the problem under investigation. It offers improved methods or data.

Several forms of secondary data have been used in this research. These include books, articles and
course literature with useful information for this study.

Thereby, it helped in gaining a deeper understanding of the presented research problem .This
secondary data was then used for writing the theoretical framework and the background.

2.5.2 PRIMARY DATA

As mentioned above, secondary data rarely solves a research problem completely. Therefore,
additional information to the problem at hand primary data - is needed. Once secondary data has
been examined, primary data can be selected by communication or observation. Communication
involves the asking of questions to respondents in an oral or written form by the use of
questionnaires.

According to Churchill, communication may be served by mail questionnaires and interviews

conducted either in person or over the telephone. Observation means that the researcher observes
particular situations in order to record facts, actions, or behaviors that may be of interest for solving
the research problem.

30

The selection of primary data by communication is faster and cheaper than observation, and
holds the advantage of versatility. On the other hand, according to Churchill, observational data is
more objective and accurate due to the fact that the collected information is not influenced by a
person's memory, mood, or reluctance to provide the desired data.

As mentioned before, the combination of several methods allows the researcher to consider
the units under study from several directions and to enhance the understanding. The methodology
employed in this research consisted of a questionnaire. For instance, the questionnaire gathers data
about issues, which are a part of it.

The use of observations was not considered since the extent to which an individual perceives
satisfaction with his/her job features as well as the importance, which is attached to certain job
features by this person, may be difficult to observe, particularly, in such a short time span that was
available to accomplish this study.

2.6 LIMITATIONS OF STUDY

Tool used to identify Motivational factor of the employee, doesnt give any idea about De
motivational factors which are existing in the employees.

Tool used to identify Motivational factor is Questionnaire, which sometimes doesnt give fair
idea and sometimes respondents hide their views.

Time frame of two months is very short for such type of study.

31

CONCEPTUAL DISCUSSION

3.1 REVIEW OF LITERATURE

32

Work provides products and services, which represent the basis for a company's success
(Steers, 1991), but it is also an important and highly central aspect in the lives of individuals (Hall,
1994) due to several reasons.

First, persons receive some kind of reward, extrinsic (such as money) or intrinsic
(satisfaction coming from the work), in exchange for their performance (Steers and Porters, 1991).
The individual holds certain personal expectations in terms of form and amount of reward, which
he/she should receive for the provided service. Thereby, the performance of a person as well as the
decision to remain in the company is influenced by the extent to which such expectations are met.

Second, the workplace presents opportunities for socialization with other people (Hall, 1994).
Third, the job is often a source of rank, or status, in the society in general (Steers, 1991). In other
words, the work may provide a source of social differentiation. Fourth, Steers and Porter (1991)
pointed out that work has an individual meaning for each person. This can range from a source of
identity and self-esteem, to a source of frustration, boredom, and a feeling of meaninglessness,
caused by the nature of the task and the characteristics of the person.

As mentioned before, for some people work is a source of great satisfaction; for many others
it is the reason for dissatisfaction. Regarding the fact that employees spend a large part of a day at
work for 40 to 45 years, it is important that those employees experience positive feelings towards
their tasks. Otherwise, it would be a long time to be frustrated, dissatisfied and unhappy. Moreover,
these negative feelings may affect the family or social life as well as the physical and emotional
health of an individual. Herzberg, Mausner, and Snyderman (1999) pointed out that an employee,
irrespective of if he/she is working in an office or on a bench, will experience his/her tasks, as well
as the workday totally differently if the attitudes toward the job are good or if they are bad. In
addition, they argued that the employees' feelings toward their work have a significant influence on
the success and failure of the company. For instance, during hard times the level of morale within the

33

work force may determine whether a company will survive. In other words, motivated employees
contribute to a company's survival.

Employees are a valuable resource that may contribute in several different ways to a company's
activities, provided that the company gives them an appropriate chance (Morgan, 1997). In order to
be successful, a company needs employees who act toward the goals of the organization and have a
strong desire to remain in the company. Such loyalty and commitment may be generated by
motivation. Furthermore, motivation is aimed to achieve increases in work productivity and job
satisfaction (Schultz and Schultz, 1998).

Particularly, the impacts of motivation on the work performance and productivity attracted
attention towards motivation in the work environment (Huddleston and Good, 1999). Highly
motivated persons tend to work harder and perform more effectively in their jobs than less motivated
individuals. In addition, several studies showed that job satisfaction leads to a better performance as
well as to more customer orientation. However, according to Molander (1996) and Westerman and
Donoghue (1989), the accumulated research evidence suggests that the relation between job
satisfaction and performance is quite weak.

The knowledge about needs and expectations of employees at work represents the basis for
their motivation. Moreover, the structure of the work and the employees' degree of satisfaction with
the job are important in order to increase the actual motivation and satisfaction with their work.

Thereby, the differences regarding what people want and actually perceive from their job are of
significance. The strongest motivator is, according to Wiley (1997), something that people value, but
lack. The knowledge about those strong motivators is of great value and may serve as a starting point
for the re-design of work, in order to increase an employee's motivation and satisfaction.

34

3.1.1 MOTIVATION

Motivation is a highly complex phenomenon (Bent, et al., 1999) that influences and is influenced
by a large number of factors in the organizational environment (Porter and Steers, 1991). The study
of motivation is concerned with why individuals think and behave as they do (Mullin, 1999; Weiner,
1992; Wagner, 1999). A great amount of definitions are presented by literature, e.g. Vignali points
out that motivation is a process that triggers individuals to act as they do.

Moreover, Westerman and Donoghue refer to motivation as

"a set of processes which energize a person's behavior and direct him or
her towards attaining some goal, or put more simply getting people to do willingly and well those
things which have to be done." .
Generally, motivation deals with forces, which initiate, direct and sustain behavior towards
the attainment of certain goals (Bent et al., 1999).
Particularly, in terms of the organizational aspect, motivation focuses, according to Molander (1996),
on an individual's willingness to put efforts into his/her work, and on the amount of efforts, which
are made in order to obtain incentives or a special form of incentives.

The discussion of motivation in the literature (recent and less recent) refers to three aspects:
(1) What is the arousal or energizing source of the individual behavior?
(2) What directs or channels such behavior (Vroom, 1964; Wagner, 1999;
Atkinson et al., 1975), and
(3) The maintenance and sustain of this behavior (Bent et al., 1999).

35

The first issue deals with driving forces inherent in the individual that leads to a certain behavior,
and with environmental forces that often cause these drives (Porter and Steers, 1991). The second
feature involves the direction of behavior towards a goal (Wagner, 1999). Furthermore, Porter and
Steers (1991) refer to the third matter as forces within the individual and environmental forces that
provide the individual with feedback. This feedback either reinforces the individual to intensify
his/her drive and the direction of his/her energy, or discourages the individual to pursue his/her
course of action and redirects his/her efforts.

Thereby, according to Steers and Porter (1991), the individual will be provided with feedback
about the impact of his/her behavior. That, in turn may induce the individual to alter his/her present
behavior, or may reassure the individual that his/her current way of acting is correct and may
confirm the person in pursuing this course of action.

Figure 3.1.1: A simplified illustration of the basic motivational model

The motivational process is not as simple and straightforward as it seems. It is, according to
Atkinson et al. (1975), a far more complex study. Porter and Steers (1991) refer to Dunnette and
Kirchner (1965) and others who identified four aspects, which complicate the simplicity of the
model.
36

The first aspect refers to the fact that motives cannot directly be observed and therefore a
need to deduce them exists (Baron, 1983). However, the inference of motives from observed
behavior is associated with difficulties traced back to at least five reasons mentioned by Atkinson et
al. (1975). These five reasons are:
(1) Several motives may be expressed through any single action;
(2) Motives may occur in disguised forms;
(3) Similar or identical actions may represent several motives;
(4) Different behavior may embody similar motives; and
(5) The modes of expression of certain motives may be mitigated by

personal and cultural

variations.

The second complication of the model deals with the fact that any person has a host of
motives. These motives may change over time and conflict with each other (Baron, 1983). Third,
Porter and Steers (1991) point out that the selection of certain motives over others, as well as the
intensity with which such motives are pursued, may differ from person to person. In addition, they
refer to the fourth complication, the fact that an attainment of certain needs, desires and expectations
may prompt a person to direct his/her attention to other motives, or to intensify the pursuit of these
motives.

3.1.2 NEEDS AND EXPECTATIONS AT WORK

Individuals are different and therefore also have different needs and expectations, which they
attempt to fulfill in many different ways. These needs and expectations, altering and often
37

conflicting with each other over time, may be classified in several ways. Two out of the variety of
classifications will be explained more detailed in the following.

Intrinsic and extrinsic motivation

Needs and expectations (motivators) are often considered in terms of being internal or external
to an individual. Internal motivators are, according to Mak and Sockel (2001), concerned with
intrinsic needs that satisfy a person, whereas external motivators are considered as environmental
factors brought by the company to the individual.

Intrinsic motivation is the desire of an individual to perform his/her work well, in order to achieve
the satisfaction of intrinsic needs. In other words, an individual performs a task in order to achieve
certain types of internal states, which he/she experiences as rewarding. Intrinsic motivation relates to
psychological rewards such as the recognition of a task completed (Mullins, 1999).

External rewards such as food, money, praise, and so on, are not the main reason for a person
to engage in activities (Deci, 1975). Intrinsic motives can be satisfied by the work itself. In other
words, the task itself is the main source of motivation, since it provides interest, stimulation,
challenges, and opportunities for personal growth and achievement to the individual (Molander,
1996). Deci (1975) refers to intrinsically motivated behavior as behavior that is determined by an
individual's need for feeling competent and self determining. On the one hand, a person will seek out
challenges that allow him/her to behave in ways that provide him/her with a sense of competence
and self-determination. On the other hand, an individual is engaged in a process of conquering
challenges.
Extrinsic motivation, on the other hand, refers to tangible rewards such as pay, fringe
benefits, work environment, work conditions, and job security (Mullins, 1999). Extrinsic motives
cannot only be satisfied by the work itself. That means pleasure comes from something the task leads
to, such as money. According to Jung (1997,) the effects of work as well as its contributing factors

38

are also of importance for the need satisfaction. Thereby, the work is seen as a means to pursue other
motives.

3.1.3 BROAD CLASSIFICATION FOR MOTIVATION TO WORK

According to Mullins (1999), needs and expectations can be distinguished in economic
rewards, intrinsic satisfaction, and social relationships.
Economic rewards such as pay, fringe benefits, and material goods are an instrumental
orientation to work. Intrinsic satisfaction is provided by the work itself and represents a personal
orientation to work. Friendships, teamwork, and the need for affiliation are part of the social
relationship that constitutes the relational orientation to work. The relative strength of all these
categories of needs and expectations together with the extent to which they are satisfied determines
an individuals motivation, job satisfaction and job performance. People differ in their preferences,
e.g. some persons may prefer economic rewards, whereas other individuals will favor intrinsic
satisfaction and/or social relationships. These preferences may change over time.

3.1.4 JOB SATISFACTION

Satisfaction is an internal state (Mullins, 1999). Various authors define it as the outcome of a
motivational process. Job satisfaction is the positive and negative feelings and attitudes which an
individual holds about his/her work (Schultz and Schultz, 1998). In other words, it is the extent to
which an individual favors his/her job.

Positive attitudes toward the job are equivalent to job satisfaction, whereas negative attitudes
represent job dissatisfaction. Job satisfaction is a complex phenomenon and depends on many workrelated as well as personal factors. That means personal factors such as age, gender, and job
experience as well as the characteristics of the job influences a person's degree of job satisfaction
(Lawler and Porter, 1967).

39

Even though personal characteristics are unchangeable by the company, they can be used for
predictions of satisfaction among groups of employees. The redesign of the work, as well as of the
work environment, may lead to increases in job satisfaction and productivity (Schultz and Schultz,
1998). For example, a redesign of work may provide an employee with the opportunity for personal
growth and development. Individuals may be satisfied with some aspects of their work and
dissatisfied with others.

However, all attitudes are not measured by the overall job satisfaction.
Therefore, it might be of use to break down an individuals attitude toward his/her work as a whole,
into attitudes held toward single facets of the job such as pay, security, social conditions, and so on .
In other words, since the overall job satisfaction does not measure all positive and negative attitudes
of a person toward his/her work, it would be of avail to measure single facets of job satisfaction.
Job satisfaction is a main factor for the motivation of employees and is closely related to
customer-orientation.

According to Blankertz and Robinson, individuals who are satisfied with their job to a high
extent, are very motivated and do not prefer to leave their job. The relationship between job
satisfaction and work performance is not explicit. Some theorists think that job satisfaction leads to a
better performance. However, the accumulated research evidence only suggests a quite weak
correlation between job satisfaction and performance (Molander, 1996). Vroom (1964) pointed out
that there exists no simple relationship between job satisfaction and performance. Correlation
between these two variables varies to a large extent, with an average of 0.14.
According to Vroom (1964), this figure is too low to be of theoretical or practical relevance.
Moreover, the opinions of theorists differ in terms of whether job satisfaction leads to improved
productivity or the reverse (Mullins, 1999).

40

Lawler and Porter (1967), for instance, described the fact that increased performance leads to
satisfaction with the help of a third variable - rewards. They assumed that good performance leads to
rewards either in the form of extrinsic or intrinsic rewards, which in turn will cause satisfaction.

Furthermore, job satisfaction and life satisfaction are related positively and reciprocally to
each other. That means a person with positive feelings about his/her family and personal life will be
likely to develop positive attitudes toward his/her job and vice versa (Schultz and Schultz, 1998). In
addition, several studies, for instance Vroom (1964), have shown that a negative relation between job
satisfaction and labor turnover exists. The more satisfied an individual is with his/her work, the less
likely he/she will change the employer. However, there are a lot of other factors such as the
organizational commitment of an employee, and the state of the labor market, which have an
influence on the turnover behavior as well.

The relation between job satisfaction and absenteeism inclines to be negative and less
consistent. However, Verhaegen argued that turnover and absenteeism are related to satisfaction in
some way, but since many other factors influence these variables as well, an explicit relationship can
only be identified in some concrete situations. Finally, the more a person identifies himself/herself
psychologically with the job, the higher the job satisfaction seems to be. Thereby, according to
Schultz and Schultz

(1998), job involvement depends on personal factors such as age and growth needs, job
characteristics like autonomy, variety, stimulation, and feedback, and social factors such as group
work.

3.1.5 WORK MOTIVATION THEORIES

Since motivation deals with factors that energies direct and sustain behavior, there are a lot of
important variables, which may influence an individuals motivation at work. These variables can be
41

distinguished in three groups: characteristics of the individual, job characteristics, and work
environment characteristics (Steers and Porter, 1983). These sets of variables were considered in the
Steers study as well. Steers developed a model, which shows the antecedents and consequences of
organizational commitment.

Figure 3.1.5: Hypothesized antecedents and outcomes of organizational commitment

Organizational commitment can be described as the extent to which an individual identifies

himself/herself with and is involved in the company (Mak and Sockel, 2001). Schultz and Schultz
(1998) mentioned that organizational commitment includes the fact that a person has to accept the
goals and values of the company, has to be willing to expend efforts for the enterprise, and has the
desire to remain in the company. According to Steers and Porter (1983), two types of commitment
can be found in the literature - the attitudinal and behavioral commitment. The attitudinal
commitment contains an individual's identification with the company and his/ her wish to remain in
the organization. The behavioral commitment, on the other hand, deals with the aspect that a person
feels bound to the company, but there is no personal identification with the company goals and
values (Schultz and Schultz, 1998). Payment and benefits are, according to Torrington and Hall

42

(1995), means to commit people to the company, but will not necessarily lead to high levels of
performance.

According to Steers (1977), mentioned in Dessler (1986), the antecedents of organizational

commitment are personal characteristics (need for achievement, age and education), job
characteristics (feedback, interesting and meaningful work), and work attitudes (for instance group
attitudes).

All antecedents together determine a person's organizational commitment, which in turn

influences, among others, a person's job performance and the desire to stay in membership with the
company.
Moreover, Steers and Porter (1983) pointed out that
"Individuals enter organizations with certain needs, desires, skills, and so forth and expect to find a
work environment where they can utilize their abilities and satisfy many of their basic needs. Where
the organization provides such opportunities (e.g., where it makes effective use of its employees, is
dependable, etc.), the likelihood of increasing commitment is apparently enhanced. However, where
the organization is not dependable, or where it fails to provide employees with challenging and
meaningful tasks, commitment levels tend to diminish."

3.2 CURRENT ISSUES FOR COMPANY AND INDUSTRY

43

44

45

DATA ANALYSIS

46

4.1 METHOD AND TECHNIQUES OF DATA ANALYSIS

This part of the project deals with the results of the questionnaire the evaluation of the job situation
and the satisfaction with certain job features, how much importance employees attach toward certain
job features, and the evaluation of the benefits offered by the company. Moreover, the results of the
interviews are presented in order to provide a better understanding of the questionnaire findings.
Additionally, the empirical findings are analyzed in connection to the theoretical background.

First, the examined factors are explained in order to make it easier for the reader to understand the
meaning of those terms.

The factor skills contain to do many different things, to use a number of skills and talents to perform
the work, and to have challenges in the work.
Task identity means that a person does an entire piece of work from beginning to end.
Task significance deals with the importance and meaningfulness of the work and its effects
on other people's life.
Autonomy refers to an individuals freedom and independence to schedule and organize
his/her work.
Feedback can be received directly from the work itself as well as from superiors, co-workers,
and customers.
The factor environment includes the relationship to co-workers, the co-operation with other
persons, and the work condition.
Job security deals with the fear to lose the job.
The last factor compensation considers the salary and wages, as well as the benefits offered
by the company. These benefits are the profit-sharing (referred in the tables and figures as
47

benefit), subsidized lunch price and free coffee (food), sport activities paid by the company
(sport), and free work clothes including the washing (work).

Skills, task identity, task significance, autonomy and feedback are job characteristics according to
the model by Hackman and Oldham. They represent intrinsic motivation factors and can be related
to the motivators in Herzberg's theory and the higher level needs in Maslow's hierarchy of needs.
These motivators influence an employee's internal motivation and satisfaction with the job.
Environment, job security, and compensation are factors, which concern the work context according
to Hackman and Oldham (1980). Moreover, they are related to the hygiene factors in Herzberg's
theory and the lower level needs in Maslow's hierarchy of needs. These needs have, according to the
before mentioned theories, to be fulfilled to a certain degree before higher level needs may occur to a
higher extent. Furthermore, they do not lead to satisfaction with the work, but decrease the level of
dissatisfaction of an employee and influence a person's willingness to take advantage of challenges
in the work. Likewise, the importance of the environment was emphasized by the Hawthorne
studies, which identified social relations as the source of motivation. The link among the Hawthorne
studies, Maslow's, Herzberg's.

48

4.2 PRIMARY AND SECONDARY DATA ANALYSIS

The factors examined in this study are analyzed according to individual characteristics of the sample
- age, gender, marital status, blue-collar/white-collar worker, leading/non-leading position, and the
years in the company.

SUBGROUPS

SAMPLE
In numbers

AGE

in %

< = 30 years
31-45 years
>=46 years

36
15
12

57
24
19

MALE

36

57.1

FEMALE

27

43

< 2 years
2-5 years
>5-10 years
>10 years

24
9
9
21

38
14
14
33.33

FOTH

39

62

BOTH

24

38

MARRIED

33

52.3

UNMARRIED

30

47.6

GENDER

YEARS IN THE
COMPANY

WORK AREA
MARITAL
STATUS

49

AGE (MEAN)

AGE

SKILLS

TASK IDENTITY

FEEDBACK

JOB SECURITY

COMPENSATION

<=30

2.485

1.5

1.56

0.8

1.2

31-45

3.1

2.6

1.36

0.8

1.54

>=46

2.82

0.4

1.43

0.9

1.4

INTRINSIC FACTORS

It can be stated that people experience their work as more meaningful (skill variety, task identity)
when their age is between 31-45 years.
Older people experience more responsibility for the outcomes of the work, and have a higher
knowledge of the actual results of the work activities (feedback) with increasing age. That leads in
turn to a higher internal work motivation and satisfaction with the work, which increases in the age.
50

EXTRINSIC FACTORS

AGE

BENEFITS

FOOD

SPORTS

WORK

<=30

7.3

5.2

6.3

31-45

7.4

5.5

6.2

6.8

>=46

7.3

5.6

6.8

6.9

The evaluation of the importance of the benefits (compensation) offered by the company showed
little differences among the age groups.

51

GENDER (Mean)
INTRINSIC FACTORS

GENDER

SKILLS

TASK IDENTITY

FEEDBACK

JOB SECURITY

COMPENSATION

MALE

2.94

1.65

1.61

0.88

1.41

FEMALE

2.35

1.48

1.32

0.8

1.16

Men evaluated the job factors higher than women. There are no significant differences in
terms of job security and task identity.
Therefore, it can be stated that men and women perceive their work as meaningful to the
same extent. In addition, in view of autonomy and feedback it can be said that men give more
importance to feedback than women. Hence, there seem to be a slight difference in the motivation
and satisfaction with the work regarding the gender. Men always attached more importance to the
respective job features than women. However, weak differences can be seen between men and
women.
52

EXTRINSIC FACTORS

GENDER

BENEFITS

FOOD

SPORTS

WORK

MALE

7.3

5.3

6.1

FEMALE

7.7

6.4

6.3

Women always attached more importance to the respective benefits than men do. Taking into
consideration the comparative strength of the economic rewards, extrinsic satisfaction, and social
relationships, and the extent to which they are fulfilled, slight differences in the work motivation and
satisfaction can be noticed in reference to the gender. Women attach more importance to extrinsic
factors than men.

53

MARITAL STATUS (Mean)

INTRINSIC FACTORS
MARITIAL STATUS

SKILLS

TASK IDENTITY

FEEDBACK

JOB SECURITY

COMPENSATION

MARRIED

3.07

1.69

1.54

0.9

0.84

UNMARRIED

2.27

1.52

1.51

0.82

0.72

The responses in terms of the situation at work and the satisfaction with work, analyzed
regarding the marital status, showed that married people evaluated the job factors, even if only to a
minor extent, higher than unmarried.
Referring to Hackman and Oldham's model, it is interesting to note that married people
perceive the use of a variety of skills, task identity, and the significance of the tasks in their job to a
higher extent than unmarried people. Nevertheless, these differences are less than 1, and therefore it
may be noted here that unmarried persons experience all factors similar to married people.
Furthermore, married and unmarried persons evaluated the extent to which feedback is present at
work as similar.

54

EXTRINSIC FACTORS

MARITAL STATUS

BENEFITS

FOOD

SPORTS

WORK

Married

7.6

5.9

6.4

6.8

Unmarried

7.3

5.2

Given the comparative strength of economic rewards, intrinsic satisfaction, and social relationships,
as well as the satisfaction of those needs, slight differences in the work motivation and satisfaction
regarding the marital status can be identified.
Married people always attached more importance to the respective benefits than unmarried people.

55

WORK AREA (Mean)

INTRINSIC FACTORS
WORK AREA

SKILLS

TASK IDENTITY

FEEDBACK

JOB SECURITY

COMPENSATION

FOTH

3.07

1.65

1.51

0.91

0.79

BOTH

2.27

1.48

1.54

0.79

0.76

*FOTH FRONT OF THE HOUSE

*BOTH BACK OF THE HOUSE

The received data shows a clear tendency that FOTH workers are more satisfied and perceive
all investigated job factors to a higher extent than BOTH workers. In particular, weak differences
can be noticed in skills, task identity and task significance.
Comparing the intrinsic job factors according to the actual work situation, the following can
be stated.
Skill variety, task identity, and task significance, which contribute to the feeling of doing a
meaningful job, are to a weak extent, perceived as lower by the BOTH workers than by the FOTH
workers. In addition, BOTH workers evaluated the extent to which they can decide how and when to
perform the work as lower. That means the responsibility for work outcomes is experienced to a
lower degree as well. There are no differences between both the workers regarding the feedback,
which influences a person's knowledge of the actual work results.
56

EXTRINSIC FACTORS

WORK AREA

BENEFITS

FOOD

SPORTS

WORK

FOTH

7.3

5.4

6.3

7.1

BOTH

7.3

5.4

5.8

6.3

*FOTH FRONT OF THE HOUSE

*BOTH BACK OF THE HOUSE

Taking into consideration the comparative strength of all factors economic rewards, intrinsic
satisfaction factors, and social relationships - and their degree of fulfillment, it may be noted here
that there is very little difference on how the workers perceive the benefits and other extrinsic
factors. Furthermore, a comparison of the data concerning the job situation and the job satisfaction
with the importance attributed to the job factors suggests a very slight difference.

57

YEARS IN A COMPANY (Mean)

INTRINSIC FACTORS
YEARS IN COMPANY
<2 years
2-5 years
5-10 years
>10 years

SKILLS
2.49
3.1
2.82
3.2

TASK IDENTITY
1.5
2.6
0.4
2.7

FEEDBACK
1.56
1.36
1.43
2

JOB SECURITY
0.8
0.8
0.9
0.9

COMPENSATION
1.2
1.54
1.4
2

When the responses were analyzed with regard to the years people have been working in the
company, some interesting findings can be seen. After more than 10 years a sharp increase in the
satisfaction of employees can be recognized in terms of using a variety of skills, task identity, and
the meaningfulness and interest of the job.
Comparing the variety of skills, task identity, and task significance regarding the years in the
company, it may be noticed that these three dimensions show major differences in the range from up
to 2 years to 10 years.
Those employees experienced the meaningfulness of the work, which in turn contributes to the
extent of the internal motivation and job satisfaction, similarly. Persons who have been working in
the company more than 10 years experienced these three dimensions, to a weak extent, higher than
the other employees did. In other words, they experienced their jobs as more meaningful.
Considering the aspect of job security in the range from up to 2 years to 10 years and more, no
differences can be recognized. That means they experienced the responsibility for the work results to
nearly the same extent. The feedback suggests no major differences from up to 2 years to 10 years.
58

EXTRINSIC FACTORS

YEARS IN COMPANY
<2 years
2-5 years
5-10 years
>10 years

BENEFIT
7.2
7.6
7.7
7

FOOD
5
6.3
4.9
5.4

SPORTS
6.3
6.5
5.6
6

WORK
7.3
6.8
6.9
6.5

Taking into consideration the comparative strength of all factors economic rewards, intrinsic
satisfaction factors, and social relationships - and their degree of fulfillment, it may be noted here
that there is very little difference on how the workers perceive the benefits and other extrinsic
factors. Furthermore, a comparison of the data concerning the job situation and the job satisfaction
with the importance attributed to the job factors suggests a very slight difference.

59

FINDINGS AND RECOMMENDATIONS

60

5.1 FINDINGS

General Managers tea.

It is organized on quarterly basis. Employees who are appreciated by the guests are given due

recognition by giving the appreciation letter and a gift by the general manager

Employee of the month

Departmental heads nominate one staff member from their respective departments.
Finally one staff member is chosen from FOTH and BOTH. Photographs of these employees
along with a write up about his/her contribution are placed on the notice board. They are also
facilitated at the general managers tea.

Instant Recognition
Any staff member whose name features in the guest comments are called to the daily
morning meeting and are appreciated.

Good morning Maurya

It is sent to everyone in Maurya in the morning. It contains the birthday list of the
employees, Welcomcafe menu, platinum standard of the day etc.

Maurya Gazette
It is published on monthly basis and contains the general managers important
activities of the previous month, photographs and write ups of the month, monthly WOW
ratio, etc.

61

Welcome on board
Welcome letter by the general manager is given to the new employees. A brief note along
with their photographs is placed on the notice board.

Meet the manager

Periodic feedback sessions of new employees with their respective head of departments are

conducted after one to three months.

Buddy system

A buddy is assigned to a new employee who would be there to guide them.

Retirement ceremony
The hotel follows a ceremony for the retired employees which makes them feel happy and

increases the level of engagement for the other employees in the organization. The employees at
the time of retirement are given a lot of respect from the overall staff along with a shawl and
some gifts by the general manager. This ceremony gives the retired employees a sense of pride,
achievement and accomplishment which again motivates the existing employees.

New year celebration

The New Year is celebrated with a couple of games for the entertainment of employees and

various gifts are rewarded to them. The lucky draw is organized at the New Year function where
the employees are presented with various gifts.

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Diwali Tambola
Every year on Diwali, Tambola game is organized for the employees and prizes are

distributed to the winners, which creates an excitement in the minds of employees and boots their
morale.

Annual day
The annual day is celebrated where all the employees with their families are invited and a

function is organized to celebrate it.

Yoga and meditation camps

The organization also organizes yoga and meditation camps for the fitness for employees. T his
practice really benefits the employees and gives them an opportunity to remain fit and healthy.

Open forum

This is a practice in the organization where the employees of different departments address their
problems they are facing. These problems are discussed in the morning meeting in front of heads
of various departments and various remedies are taken by the HR manager in consultation with
various other heads of the department.

Long service awards.

The Employees who have been working in the organization since a long period and have always
performed well in their jobs are rewarded and given some gifts.

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5.2 RECOMMENDATION

Build sufficient flexibility into the employment cycle and emphasize different rewards
and cultural elements to motivate them emotionally and intellectually.

Put mechanisms in place to ensure that all employees can see and understand senior
managements concern for them collectively and its vision for the future of the
organization. Essentially, this comes down to two-way communication. Keeping
employees informed is a prerequisite. Employees want from management is their concern
and focus, ability to comment, share ideas and give input. Communication on this level
requires a willingness to listen as well as inform, and to present both good and bad news
with sufficient context for the news. It requires adherence to a consistent set of messages
about the organization and its vision for growth, and frequency in getting those messages
out across multiple channels.

Challenging work Associate should find his / her job challenging. It can be
developed by the employer by encouraging associates to take initiative, being open to
change, tolerating uncertainty, coaching and developing peoples skills, and holding
people accountable for their performance.

Decision-making authority Associates should have appropriate amount of decision

making authority related to their job description. Otherwise, associate start feeling being
underestimated at work place. Associates are much more willing to accept increased risk
if they perceive they also have control over decisions relating to that risk as well as
relevant information and tools to make good decisions. Essentially, this comes down to
an employers responsibility to provide employees with information. To the extent a
company consistently keeps employees fully informed, it provides the necessary
64

foundation for employees to behave responsibly and accept accountability for making
their own decisions.

Career advancement opportunities - If the associates start feeling that within in the
company there is no scope of growth and they will not get better opportunities in their
future, then start moving away from their job, and gradually become an disengaged and
de motivated employee.

The companys reputation as a good employer also motivates the associate to remain in
the organization and actively work for the success of the company.

A collaborative work environment where team members work well in teams, form
friendly environment and compensate each others deficiencies in a team gives successful
team and work also get accomplished within stipulated time period.

65

CONCLUSION AND SUGGESTIONS

66

CONCLUSION

According to the literature research, skill variety, task identity, task significance, autonomy,
feedback, environment, job security, and compensation are the most critical factors for the
motivation of employees and their satisfaction with the job. These factors represented the basis for
the empirical research.

Factors, which may cause a higher motivation and job satisfaction in the company
Since the strongest motivators seem to be things that people value but lack, the following motivators
can be identified in order to increase the internal motivation and job satisfaction for the respective
subgroups. The motivators are listed according to their motivating strength.
Age
< = 30: (1) feedback, (2) skills, task significance, and (3) compensation
31 - 45: (1) feedback, (2) skills, and (3) compensation
> = 46: (1) feedback

Gender
Male:

(1) feedback, (2) skills, task significance, and (3) compensation

Female: (1) feedback and (2) compensation.

Marital status
Married:

(1) feedback, (2) task significance, (3) skills, and (4) compensation
67

Unmarried: (1) feedback, (2) skills, and (3) compensation

Work area
Blue-collar worker: (1) feedback, (2) skills, and (3) compensation
White-collar worker: (1) feedback, and (2) environment

Years in the company

< = 2 years:

(1) feedback, (2) skills, and (3) compensation

2 - 5 years:

(1) feedback, (2) skills, and (3) compensation

> 5 - 10 years: (1) feedback, (2) skills, (3) compensation, and (4) task identity
> 10 years:

(1) feedback, and (2) compensation

68

SUGGESTIONS

(1)The strongest motivator regarding all subgroups is the feedback. Therefore, special attention
should be given to that factor in order to increase the internal motivation and job satisfaction.

(2) One should have in mind that the environment and compensation do not actually present
motivators. However, their fulfillment to a certain extent provides the basis for taking advantage of
challenges in the job and to reduce job dissatisfaction.

(3)In addition, special attention should be given to the skill aspect and the compensation, since they
make a contribution to the well being of humans and provide the basis for the use of challenges
offered by the job.

(4) Furthermore, all factors examined in this study contribute to the organizational commitment of
employees. The intrinsic factors, on the one hand, may influence a person's willingness to expend
considerable efforts toward the goals of the company and to remain in the company (attitudinal
commitment). The extrinsic factors, on the other hand, may contribute to the behavioral
commitment. Factors external to the work situation such as the economic situation, mobility, and
other employers may influence an individual's desire to stay in the company as well

ITC is a board-managed professional company, committed to creating enduring

value for the shareholder and for the nation. It has a rich organizational culture rooted in its core
values of respect for people and belief in empowerment. Its philosophy of all-round value creation is
backed by strong corporate governance policies and systems.

69

The results of this research offer a starting point to think about the actual work conditions
and their changes in order to provide a basis for a higher motivation of employees. Not only
differences and similarities in the work motivation and satisfaction of employees regarding certain
individual characteristics, but also the reasons for that are examined in this study.
Moreover, factors that have to be enhanced at work in order to increase the motivation and
therefore the commitment toward the company are figured out and presented.

Similarities and differences regarding certain individual characteristics are shown and this
knowledge can be used to motivate a group of employees, sharing the same individual characteristic,
in the same way.

The use of quantitative as well as qualitative methods enabled me to investigate the problem
under research in more depth and to increase the quality and the value of the research and its results.
Thereby, the collection of the quantitative data and their analysis by the use of the mean count
ensured objectivity and reliability of the research.

70

BIBLIOGRAPHY

Books

Cassell, C, and Symon, G. (1994): Qualitative Methods in Organizational

Research: A Practical Guide, Sage Publications, London

Churchill, G. A., Jr. (1995): Marketing Research - Methodological

Foundations, sixth edition, The Dryden Press, Fort Worth

Clarke, A., & Dawson, R. (1999): Evaluation Research: An introduction to

Principles, Methods and Practice, Sage Publications, London

Deci, E. L. (1975): Intrinsic Motivation, Plenum Press, New York

Dessler, G. (1986): Organization Theory: Integrating Structure and

Behavior, Second edition, Prentice Hall, Englewood Cliffs

Douglas, S. P. and Craig, C. S. (1983): International Marketing Research,

Prentice Hall, Englewood Cliffs

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http://www.itcportal.com/

http://www.itcportal.com/sets/itc-research-development.htm

http://www.itcportal.com/products-microsite/products.html

http://www.itcportal.com/sets/leadership_frameset.htm

http://economictimes.indiatimes.com/rssarticleshow/msid-3195390,prtpage-1.cms

http://economictimes.indiatimes.com/rssarticleshow/articleshow/3183056.cms

http://www.itcwelcomgroup.in/Hotels/itcmaurya.aspx

http://www.itcwelcomgroup.in/Others/OthersABT.aspx

http://www.itcwelcomgroup.in/Hotels/ITCMaurya.aspx?CS

http://www.itcportal.com/global_honours/global_honours.html - top#top

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