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DECLARATION
We, the students of T.Y.B.B.A (HR) Zeel Choksi , Juhi Chorawala , Helina
Desai and Riddhi Desai hereby declare that the research report entitled IMPACT
OF MONETARY AND NON-MONETARY BENEFITS ON EMPLOYEE
PERFORMANCE presented herein ; submitted to NIM-BBA , Surat , is a record of an
original and genuine work done by us under the guidance of Mr.Baxis Patel, professor
for the subject RESEARCH METHODOLOGY a n d t h i s p r o j e c t w o r k i s
s u b m i t t e d i n t h e p a r t i a l f u l f i l l m e n t o f t h e s a m e s u b j e c t . The
results obtained through this research have not been submitted to any other University or
Institute for a similar purpose. Any literature, data or works done by others and cited
within this report have been listed in the reference section.

ACKNOWLEDGEMENT
We would like to express our gratitude towards our college principal Mr. Narendra Jadav,
Navnirman Institute of Management for giving us this opportunity for carrying out the research
on this topic. We sincerely thank our professor for Research Methodology-II, Mr.Baxis Patel, for
his constant guidance, help and support throughout the research work, without whom this project
wouldnt be possible. We also thank the respondents, friends, family and relatives for the support
by filling out the survey forms and giving their valuable opinion.

PREFACE
This research work was conducted in partial fulfillment of the requirement for the subject
RESEARCH METHODOLOGY-II of BBA Programme sem-VI to find out the impact of both
monetary and non-monetary incentives on the performance of employees. In the course of the
study some basic research questions include are: What are the incentives that motivate
employees to higher performance; How effective is the payment of incentives on employees
performance; Whether the payment of non-monetary incentive motivates employees to higher
performance; and What would be the attitude of employees towards job performance if they are
provided with security of job. In an attempt to find answers to the above questions, set of
questionnaire was designed for the study. Study of male and female employees of banking and
production sector was done. A total number of 80 employees were around at the time were
interviewed through questionnaire filling through personal interview and internet survey was
done. Thereafter, their responses were collated and analysed. Thus, the data used is primary data.
Secondary data used was theories.

EXECUTIVE SUMMARY
Project report on the study the impact of monetary and non monetary benefit on employee
performance we studied that the main objective of this research is to determine if
organizations are utilizing both monetary and non monetary rewards within their rewards
reward programmes as competitive advantage tool in motivating employees and how they
affect on employees performance this:What are the elements that form part of the reward and
incentive offering to employees in oraganisations? Do various rewards and incentive options
have specific impacts on employees from a motivation perspective? To what extent are
organistions utlising non monetary rewards and monetary rewards in their offering to
motivate employees?What are the rewards preferences by employees.The effect of intrinsic
rewards on employees performance.The effect of extrinsic rewards on employees
performance.The relationship between extrinsic and intrinsic rewards.Through what ways
increase employee s interest towards job and their motivation towards organizational
goals.Decide the role of intrinsic and extrinsic motivation to enhance organizational
performance.Also look into a matter that how status is more important than money and why
motivate employees towards the organizational goal is possible by assigning them good
status. The tool that has been chosen to collect data was a filling up questionnaire
Respondents were asked to fill in the questionnaire and they were able to read the
instructions on their own. questionnaires were filled personally by going through some of
the production related companies likes Reliance, Larsen and Turbo Nj India Invest and ca
institutes and banks like State Bank of India, ICICI, Bank Of Baroda. Some data we
collected for literature review and theories of motivation from website,books. Our sample
size in study of impact of monetary was 80.From this study we found out and concluded that
The maximum no. of respondents are freshers working for over a period of 0-5 years
constituting 41.25% of the total respondents
Maximum no. of respondents have monthly income of rs.20,000-50,000 . constituting of
38.75% of respondents. Only 8.75% respondents have monthly income of rs.10,000 or below
Maximum number of respondents , i.e. 90% respondents have a salary system for
remuneration

we can make out that PAY RISE, BONUS, PROMOTION, FINANCIAL BENEFITS ,JOB
UPGRADATION are the benefits which are provided in the highest number to the employees
by the organization
Among Non-monetary benefits CAREER DEVELOPMENT AND MANAGEMENT,WORK
PERFORMANCE AND RECONGNITION AND GOOD WORKING ENVIRONMENT top
the list
PROMOTION motivates most of the respondents highest , followed by APPRECIATION
LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally constituting a
15%.
74 respondents answered and We can see that Company Socials/ parties/celebrations)
motivates employees the most and performance motivates them the least
78.75% employees agree to the fact that incentives and benefits does affect their motivation
level , performance and productivity
most respondents are given insurance as the additional benefits , followed by vacation tours ,
gift vouchers and coupons and only a few respondents get education for children as a benefit
from work place.
48% of the employees agree to the fact that competing for rewards influences their
performance. On the other hand, about 31% people dont agree to the fact that competition
influences performance in any ways. 21% of the people agree upon not having any opinion
regarding the influence of competition for rewards on the performance.
54% of the people are entitled to benefits of getting a monetary bonus, whereas 46% of
employees are not entitled to getting a bonus.
According to this survey, 69% of people agree to the fact that they do get motivated by
bonus. Whereas, the other 31% say that getting a bonus is not a factor that would motivate
them.
According to this survey, people are retaining their present jobs due to various reasons, out of
which the most influencing reasons are challenging job assignments and a convenient
location of the organization. The least preferred reason being vacations and other reasons.

75% of the people are involved in the decisions taken related to their department. This survey
also tells us that 25% people are not involved or given any privilege of involvement in the
decision making of their departmental issues
Involvement in decision making effects the performance and improves it, says 81% of the
people that are surveyed, whereas 19% say that it does not really influence their performance
or improve it when these people are involved in the decision making process
1. 81% Repondents agree and are satisfied on being given different opportunities ,
competitive tasks to excel in the organsation.19% respondents deny the fact being given
competitive opportunities in the organsation
2. The percentage of respondents having an ongoing recongnition programme and not
having an recongnition programme is equal . ie. 50%
3. Maximum number of respondents have an annual recongnition programme ie. 45% ,
followed by a 27.5% respondents having a quarter recongnition programme. Respondents
having a monthly recongnition programme constitute 25%.
4. we conclude that out of 80 respondents 25 respondents ie. 31.25% were nominated for
employee of the year award and 20 respondents constituting about 25% have received
the award.
5. 75% respondents feel motivated about employee recongnition programmes whereas for
25% respondents such programmes do not create much pressure on performance
and non monetary benefit on employee performance was 80.

CHAPTER 3
Theoretical framework
And literature review

Theoretical framework
3.1 Definition of motivation
"Motivation is the art of getting people to do what you want them to do
because they want to do it."
--Dwight D. Eisenhower
Motivation is derived from a Latin word, movere, which means to move.
The author of book Motivation, beliefs, and organizational transformation
(1999), Dr. Green and Butkus (1999), says that motivation is derived from a
word motivate, which means to move, push or persuade to act for satisfying
a need. Further motivation can be explained as acting of such forces within a
person that cause a stimulation of effort, direction and goal direction.
Motivation is the total involvement of a person in his tasks to carry out with
dedication, devotion, happiness, excitements, and voluntarily, Mol (1992).
3.2Features of Motivation
1.

Psychological Process: Motivation is a psychological process useful for

encouraging employees to take more interest in the work assigned. It relates to
human relations.

2.

Initiative by Manager: The initiative for motivation is by the manager by

offering guidance and also by other methods like appreciation of good work or
offering incentives. Management has to adopt special measures for motivating
employees. They include monetary as well as non-monetary.

3.

Continuous activity: It is a continuous and circular process. Subordinates

need motivation in a continuous manner as their needs and expectations change
from time to time. A manager has to study the needs of workers and use the

technique of motivation accordingly. The process of motivation must be made

a regular and continuous one.
4.

Goal-oriented and action-oriented: Motivation diverts human behavior

towards certain goals. Attainment of organizational and individual goals
depends on the motivational plans.

5.

Broad concept: Motivation covers needs, human relations and satisfaction

of employees. For employee motivation, monetary and other incentives need to
be offered. Job satisfaction is one such need and is useful for their motivation.

6.

Essence of management process: Motivation is an essential function of a

manager. He has to motivate his subordinates for achieving organizational
objectives. Motivated labour force is an asset of a business unit. Motivated
employees bring prosperity to a business unit.

7.

Beneficial to employees and management: Motivation offers benefits to

employees and Organization. It avoids crashes and encourages cooperative
outlook among employees. Motivation leads to cordial labour-management
relations. It provides more profit to management and better welfare to
employees.

8.

Varied measures available for motivation: For motivation, various

monetary and non monetary incentives can be offered to employees by the
management. Attractive wages, welfare facilities, job satisfaction, appreciation
of good work, encouragement to self-development, job security and fair
treatment are some measures of motivating employees.

9.

Motivation is different from satisfaction: Motivation implies a drive

towards a result while satisfaction involves result already experienced and
achieved. 'When desire is satisfied, employee is motivated'.

10.

Related to a person in totality: An employee is motivated in totality and

not in part. Employee's basic needs are interrelated. Management must fulfill
all the needs through monetary and non-monetary incentives.

3.3 Importance of Motivation

Motivation occupies an important place and position in the whole management
process. This technique can be used fruitfully for encouraging workers to make
positive contribution for achieving organizational objectives. Motivation is
necessary as human nature needs some sort of inducement, encouragement or
incentive in order to get better performance. Motivation of employees offers
may benefits to the Organization and also to the employees. This suggests the
importance of motivating employees. Motivation acts as a technique for
improving the performance of employees working at different levels.
Motivation of employees is one function which every manager has to perform
along with other managerial functions. A manager has to function as a friend
and motivator of his subordinates. Motivation is useful in all aspects of life and
even our family life. The same is the case with business. This dearly suggests
that motivation is extremely important. It is an integral part of management
process itself.
3.4Motivational Factors / Incentives

(fig3.1)
(A) Monetary or Financial Incentives
Monetary incentives are offered in terms of money. Such incentives provide
more cash or purchasing power to employees. Monetary incentives are
extremely attractive to employees (particularly those working at lower levels)
as they get the benefit quickly and in concrete terms. At the higher levels of
management, non-monetary incentives are more important than monetary
incentives. Workers prefer monetary incentives as compared to non-monetary
incentives. Managements also offer liberal monetary incentives to all
categories of workers.
Monetary incentives may be further classified as following:1.

Individual Monetary Incentives: The benefit of individual monetary

incentive is available to concerned worker only. For example, F. W. Taylor
suggested differential piece rate system which offers different wage rates to
different workers as per their production efficiency. Different incentive wage
plans are the examples of individual monetary incentives as the benefit is
offered individually to every worker. Here, a worker is paid as per his
efficiency, productivity or as per the production given by him. Efficient/sincere

workers give more production and get higher reward in terms of wage
payment.
2.

Group Monetary Incentives: In the group monetary incentives, the

monetary benefit is not given individually but to a group of workers or to all
workers in the Organization. Workers have to work jointly/collectively as a
team in order to secure the benefits of group monetary incentives. Bonus
payment, pension, P.F, production/productivity bonus, profit sharing, etc. is the
examples of group monetary incentives. For the employer/management, group
incentives are more important as they offer many benefits to the management.

(B) Non-monetary Incentives for Employee Motivation

1.

Job security and job enrichment: Job security is useful for the
motivation of employees. Such security keeps the employee away from the
tension of becoming unemployed. Job enrichment provides an opportunity for
greater recognition and advancement. Job enrichment refers to redesign of
jobs.

2.

Fair treatment to employees: Employer should give attention to the

needs, difficulties and grievances of employees. Small work groups and
effective communication are useful for solving the problems of workers.
Employees must be given decent treatment. They will be co-operative only
when they are treated with sympathy and love, affection and dignity.
Employees should also be given help in personal matters.

3.

Recognition of good work: Recognition of good work at an appropriate

time gives encouragement to employees to show better performance in future.

As an appreciation of good work, prizes, rewards, promotions, etc. should be

given.
4.

Encouragement to self-development and career development:

Employees should be given varied training facilities. Training facilitates selfdevelopment and also provides opportunities for career development. Every
employee has a desire to grow, develop and rise higher. This desire should be
exploited fully for motivating employees. For this, training as well as
management development programmes should be introduced.

5.

Delegation of authority: Due to delegation of authority, a subordinate

employee feels that superior has faith in him and also in his ability to use
authority in a proper manner. Employees get mental satisfaction when
authority is given to them. They take interest and initiative in the work and try
to prove that they are competent to work at the higher levels. Thus, delegation
of authority becomes a motivating factor.

6.

Congenial working conditions: It is a non financial incentive for

motivation. Employees should be given various facilities and conveniences at
the work place. The work environment should be pleasant and safe. This
creates desire to work efficiently.

7.

Helpful attitude of management: The helpful attitude of management

towards its employees creates a sense of affinity for the Organization. Fair
treatment to workers creates better understanding among workers. Cordial
industrial relations also motivate employees. Thus, enlightened and proemployee attitude of management acts as a motivating factor.

8.

Fair opportunity of promotion: Fair opportunity of promotion to all

eligible workers is one more method useful for motivating employees. They
take interest in the work as they feet that they will be rewarded in the form of
promotions. Training facility should be provided to employees in order to
make them eligible for promotion.

9.

Labour participation in management: Labour participation in

management is useful for the motivation of employees. Workers get higher
status and better scope for expressing their views through such participation.
Even the formation of quality circles or joint management councils is useful
for motivating employees.

10.

Designation and status: When an employee is provided with a better

designation, it adds to his status. Employees are proud to reveal their attractive
and high-sounding designations.
3.5Theories on Motivation
There are two classes of theory of motivation;
Content Theories: Content also called as need theories of motivation basically
emphasis on internal factors of an individual that strengthens and gives the
direction to the behavior.
3.5.1Maslows Hierarchy of needs:
Abraham Maslow (1943, 1954), unsatisfied needs creates de-motivation, there
are following needs that must be satisfied, these are called as deficiency
needs. As these needs are fulfilled the person is satisfied and move towards
growth and self actualization.

Fig 3.2
Physiological needs: These are the basic needs for example food, water, air, and
all other things that are necessary for the survival. In order to enhance
workplace motivation by achieving the target of fulfilling the needs of
employee give proper breaks for lunch, and offer such salary to employees that
enable them to buy basic needs of life. Provide ample breaks for lunch
and recuperation and pay salaries that allow workers to buy life's essentials.
Security needs: it includes security regarding the physical environment, living in
a safe area, medical insurance, and job security. These needs can simply be
fulfilled by giving all these securities to employees.
Belongingness needs: it includes friendships trust and satisfaction, feeling right
in a group, giving and receiving care and love. It can be achieved by
generating a feeling of acceptance.
Esteem needs: It includes recognition, attention, social status, accomplishment,
self-respect. It can be achieved by recognizing the achievements of the
employee, by assigning them some projects, make them feel important and
valued asset for organization.
Self-actualization needs: it includes ones own potential, creative capabilities
etc, it can be achieved by offering challenging and meaningful work

assignments which enable innovation, creativity, and progress according to

long-term goals.
.
Maslow's Hierarchy of Needs theory has had a substantial influence on
organizational approaches to motivation.thefollowing is the reasons which have
resulted in Maslows theory being popular amongst the organizations:
Its simplicity
Its inferences are strong and clear
It forms settings in which employees lower level needs can be fulfilled so that
they are motivated to reach their full potential
It offers a corridor to self actualization.
Implications
Maslows theory highlights that organizations must identify the level of needs
at which employee is present at, and then the needs must be addressed as a
drive for motivation. If the basic needs such as physiological and safety needs
are not met, organisations will not be able to fulfill the other level of needs
indicated. Not all employees are directed by similar set of needs. It is through
this realization that organization is required to tailor rewards programmes that
suite an employees needs.
3.5.2Alderfers ERG Theory:
The Alderfers ERG theory (1969) is an extension of Maslow's theory of needs.
He suggested that needs can be divided into three components; existence
(similar to physiological needs and security needs), relatedness (similar to
belongingness needs and esteem needs) and growth (similar to selfactualization).
It differs from Maslow hierarchy of needs theory in a way that according to
Alderfers it may happen that more than one need may be motivated at the same
time, lower motivators is not necessary to be significantly fulfilled before

moving towards higher motivators, the order of needs may differ from person
to person, there is a frustration- regression principle and according to it if
high order need is frustrated a person may regress to increase the satisfaction
of a lower need which appears easier to satisfy.
3.5.3Frederick Herzbergs Motivator hygiene theory:
Herzbergs motivator hygiene theory (1959) is closely related to Maslow's
theory but it is more closely related to how to motivate individuals at their
workplace. According to him individuals are influenced by two sets of factors;
Hygiene factors: These are said to be lower level of needs by Herzberg.
Motivator factors: These are said to high level of needs by Herzberg.

Fig3.3
According to him meeting hygiene factors will not motivate individuals to put
their effort or to improve their performance, it will just help them from being
getting dissatisfied, but if motivator factors will be combined with this it will
help individuals to motivate.

3.5.4McClellands learned needs theory: acquire

McClelland's theory states that individuals learn needs from their culture and
life experiences. There are three basic needs of an individual;
Need for affiliation it is the need of establishing social relationships with the
people, communities, getting accepted by them.
Need for power It is divided in two parts, desire to control ones environment
and second to influence others.
Need for achievement It involves the aspiration to take accountability, set
challenging goals and get feedback of their performance.
McClelland states that a person has full strong capability in any one of the
above categories, thus it has prospective to motivated people that leads to
satisfaction. Management should understand these needs of the individuals and
then structure their jobs to satisfy them. Those who have high n Aff such
people perform well in customer service jobs or where customer interaction is
involved. Those who have high n Pow management should provide them the
opportunity to manage others. Those who have high n Ach such people should
be given challenging but achievable goals.
Process Theories: These theories of motivation focus on known human
decision behaviors for the explanation if motivation. These theories determine
that how an individuals behavior can be energized, maintained in willed and
self directed cognitive process.
3.5.5Victor Vrooms Expectancy Theory:
Victor Vroom (1964), theory is based on three beliefs;
Valence: is the extend of the expected outcomes of an individual are attractive
or unattractive.

Expectancy: is the extend to which employees believe that they are giving
enough effort that they will achieve the target of given level of performance.
Instrumentality: is the level to which employees believe that achieving a given
performance level resulting in the form of certain reward.
Motivation = Valence x Expectancy (Instrumentality)
If even one of these is zero the employee will have not motivation for the task,
so managers ensure increase in effort will improve performance and improved
performance will result in high rewards.
The theory says employees have different goals to achieve and can be
motivated if they believe that; there exists a positive correlation between
efforts and performance, good performance will result in a reward, and this
reward will satisfy an important need, and the wish for satisfying that need is
powerful enough to make effort valuable.

Fig3.5

3.5.6Equity Theory:
Equity theory was first time developed by John Stacey Adams in 1963.
Individuals in the society make comparison of their efforts (inputs) and
rewards (outputs) that they get. The fairness regarding the rewards influences
the level of motivation of individuals a lot. Equity exists when individuals
identify that the ratio between there efforts and rewards is similar to whom
they are comparing.
Individuals Rewards (output) / Individuals Efforts (Input) = other persons
Rewards (output) / other persons Efforts (Input)
Similarly inequity occurs when there is difference in ratio in comparison to
others. Inequity has two types;
Under-Reward: this type occurs when an individual starts believing that he is
putting more efforts as compare to others, but receiving the same rewards that
others are getting for relatively less effort.
Over-Reward: this type occurs when an individual starts believing that his
equity ratio is higher other individuals. Thus getting more rewards by putting
less efforts.
Under-Rewarded individual may get motivate to do more work to meet his
performance level while on the other hand he may get dis-hearted from this.
Over-Reward individual start putting less efforts as he may assume that he is
getting much more rewards from little effort. For managers equity theory states
that rewards should be fair to all employees.
3.5.7Gary Latham and Edwin Lockes goal setting theory:
E. Locke and G. Latham (1990), states that goals are important factors in
affecting the behaviors and motivation levels of employees. Motivated
behavior of employees can be achieved by setting challenging goals for them

that usually involve the quantitative targets. Such goals of performance are
better than those in which you just say, you did a great job, well done.
Researches have shown that challenging goals are more motivational than any
other goals that are easily achievable. The more the dedicated is employee the
more he will put his effort to achieve those goals. Researchers show that
individuals that perform in goal setting have increases goal commitment. If an
individual has high self-efficiency he will respond more positively to achieve
goals rather than those who are low-efficient.
3.5.8B.F. Skinners Reinforcement Theory:
In Reinforcement theory B.F. Skinner (1957), considered a motivation theory
along with learning theory. The theory state that motivated behavior is the
outcome of reinforces which are actually the resultants from the behavior that
cause it more likely to occur again. It further says that it is essential to measure
the consequences of behavior rather than to understand cognitive or processes
motivation. Such behavior that was previously rewarded will be continued in
future as well from an individual rather than that behavior which was not
rewarded or for which he was being punished. The theory suggests to
managers that they can handle the behavior modifications by reinforce desired
behaviors and punish undesired behaviors.
3.6Importance of Rewards and Motivation
Searle, John G. (1990), rewards is basically to motivate the behaviors of
employees towards their work. Rewards should be given as a result to effective
performance. Following are some conditions that are necessary for the creation
of motivation among employees; Employees must have faith that their
effective performance will surely be appreciated and rewarded.
The rewards that will be being offered by management are attractive. The
believe of employees that their effort is really contributing worthwhile to attain
the organizations goals.

Organizations must pay attention towards the Monetary as well as NonMonetary rewards, because the balanced combination of both creates
motivation. An individuals goals and organizations goals are independent
goals that are linked by the work motivation. Individuals provide their services
to organizations to attain organizations goals in order to meet their personal
goals. So, we can say that an individuals goals are directly proportional to the
organizational goals.
Mosley, Megginson, Pietri (2001), reports that the there are three levels of
employee motivation;
Behavior: the direction of those behaviors of an employee that he selects to
perform.
Effort: the level of willingness of an employee to put their effort on their work.
Persistence: the level of willingness to work regardless of difficult situations.
3.7Reward Systems:
This study involves intrinsic and extrinsic rewards as independent variables. In
independent variable extrinsic reward includes three dimensions such as basic
pay, merit pay and performance bonus. As for the intrinsic reward, it includes
four dimensions such as recognition, learning opportunity, challenging work
and career advancement
Employees Performance:
This study involves employees performance as dependent variable. In
dependent variable employee performance encompasses threedimensions such
as productivity, job quality and job accomplishment.

Motivation underlies employee enthusiasm and commitment. Employees

who are motivated to perform their job duties usually are conscientious

workers whose pride shows in the quantity and quality of their work.
Enthusiasm, commitment, pride and productivity are cornerstones of employee
engagement. Although these all may sound like ambiguous and extremely
subjective aspects of employee performance, they constitute employee
engagement, an aspect of employment that can indeed be measured.
Recognition

Professor and management consultant Frederick Herzberg's theories on

employee motivation illustrate the effect that motivation has on recognition,
and vice versa. Recognition, according to Herzberg's motivation-hygiene
theory, is what employees need from their supervisors. They need to be
recognized for demonstrating their capabilities, which, in turn, creates better
performance. Nonmonetary forms of recognition are useful in this case:
Promoting employees to leadership roles or assigning employees more
complex duties are two essential forms of nonmonetary recognition.
Promotion

When recognition consists of promoting an employee to a leadership

role, the employee is motivated to show she's worthy of the role. Therefore,
employees who receive promotions have a zealousness about their new
responsibilities that complacent employees may have lost. Recognition also
may be subtle, showcasing employees' talents by using them to train new or
inexperienced workers. When employees are charged with responsibilities such
as assisting with orientation for their colleagues, they also sustain high
performance levels.

Competitiveness

Recognition at work is what employees seek, whether it's feedback from

a supervisor, a glowing performance evaluation or a commendation from the
company president. When recognition credits an employee for doing a great

job, the natural tendency is to continue the performance that garners attention.
There also is a competitive spirit that emerges throughout the workforce when
recognition is the prize. Competition itself fosters ingenuity and innovation,
both of which are factors that improve performance.
Satisfaction

Satisfaction is a byproduct of motivation. Employees who receive the

type of motivation they need to achieve high performance levels also exhibit
signs of greater job satisfaction. The best way to explain this is by looking at
the inverse of motivation and recognition. Employee dissatisfaction is evident
when employees don't receive some sort of recognition from their supervisors
or when their accomplishments aren't recognized.

LITERATURE REVIEW
1. According to Jon-Chao Hong, Sung-De Yang, Li-Jung Wang, En-Fu Chiou, Fan-Yin
Su, sui-Lan Huang, (1995) "Impact of employee benefits on work motivation and
performance", International Journal of Career Management, Vol. 7 Iss: 6, pp.10
14 publisher : MCB UP Ltd. To understand the impact of employee benefits on

employees' work-motivation and performance, questionnaires were sent to corporations

which had undertaken employee benefit programmes. Some of the significant results of
this study are: employee benefit programmes have greater impact on work-motivation
than on performance; monetary benefit programmes are most highly valued by both
executives and employees; there is a cognitive gap between management and employee
on the importance of employee benefit programmes; different genders have different
benefit demands; Employees with different education levels and positions perceive
different employee benefit impacts; and employee benefit programmes have greater
influence on younger employees' job performance.
2. According to Luthans (2002) financial rewards are an important form of rewarding
employees for their exceptional performance but other forms of recognition are often
overlooked as part of an organisations reward system. Nienaber, R. (2009 Nov). The
Relationship between Personality Types and Reward Preferences. (Doctoral dissertation).
Johannesburg: University of Johannesburg argues that organizations need to understand
the preferences and needs of employees and offer more than just a good pay-check when
responding to todays workplace demands. According to Ferguson, R. & Brohaugh, B.
(2009). The Talent Wars. Journal of Consumer Marketing, 26 (5), 358-362 what really
impacts employee is the quality of their work experience. Effective reward management
involves a close understanding of employee references. Sarvadi, P. (2005). The best way
to reward employees. Solutions for growing Business. Retrieved February 27, 2005, from
http:www.entrepreneur.com .,arguing for the importance of non-monetary rewards says
that organizations sometimes miss the most important reward elements of appreciation
and recognition, which are the inexpensive and high return elements to a reward
programme.

Wycombe, J. (2002). Rewards get results: Put away your cash. Workforce, 8(1), 42-47
study suggests evidence that there exists a robust relationship between non-monetary
rewards and better job performance. An organizations reward system is an important tool
that can lead to employee motivation. Understanding the impact of both monetary and
non-monetary rewards, based on employee preferences, is crucial for an organization to

deliver growth and shareholder value. Lawler, E.E., (2003). Treat employee right. San
Francisco: Jossey-Bass Inc argues that for a reward programmed to work, it must be
developed with a few limitations. A reward programme must provide necessary rewards
to motivate employees; provide employees with a clear view of their roles going into the
near future; give employees the authority to influence their performance and deliver on it.

3. Syptak, J. M., Marsland, D. W., & Ulmer, D. (1999). Job satisfaction: Putting theory
into practice. Family Practice Management, 6(9), 2630. Fulfilled and motivated
employees incline to be more committed and productive to their organization. Edward P.
Lazear, 2000. "Performance Pay and Performance," American Economic Review,
American Economic Association, vol. 90(5), pages 1346-1361, December identifies the
causal impact of different prize schedules on effort and outcome quality in a real-world
elite coding challenge. Past studies by Lazear 2000; Dohmen and Falk 2011 have found
evidence that higher-skilled employees tend to have a greater likelihood of preferring
competitive environments and high-powered incentive schemes
4. Employee benefits have grown in importance over the past several decades. Employee
benefits are the membership-based and nonfinancial rewards offered to attract and keep
employees. Along with the increasing costs of employee benefits, the effects of such
programs have received more attention. Much research has explored issues related to
effects of employee benefits at individual levels. Articles or case studies examined the
impact of employee benefits on firm performance. Beam and McFadden, 1988; Evers,
1998; Federico and Goldsmith, 1998; Steere, 2000; Laabs, 2000; Kurlander and
Barton, 2003. Benefits may be valuable in recruiting and retaining employees, but are
typically unrelated to performance Adigun and Stephenson, 1992; Mondy et al., 2002.
Furthermore, citing various studies, Hennessey (1989) argued that benefits cannot help
firms achieve competitive advantages. Similarly, Huseman et al. (1978), Sutton (1986),
and McCaffrey (1987) argued that benefits can be seen a means to meet organizational
objectives, such as increasing morale and retaining and attracting good employees;

however, they claimed that benefits can affect employee attitudes and performance
through operation of benefit programs..
5. Performance in multi-action settings has been the focus of an increasing amount of
research. It was studied that though employees exerted the desired level of effort but still
not benefit the firm because they do not allocate their effort well. Therefore Considerable
analytic and empirical research by Kachelmeier, Reichert, & Williamson 2008;
Brggen & Moers 2007; Dataret al. 2001 has focused on the ability to motivate the
desired mix of effort by using monetary incentives tied to multiple measures. A rich
literature in economics Dataret al. 2001; Feltham & Xie 1994; Banker & Datar 1989;
Holmstrom 1979 explore how the monetary incentives associated with measures of
performance influence actions. Dambisya, 2007 investigated that the use of nonfinancial
incentives for health leads to satisfaction of employees. This study was conducted in
health sector and found that non--financial rewards affect the performance of an
individual.

Chapter 4
Research
Methodology

4.1Problem definition
The objective of this research is to determine if organizations are utilizing both monetary and
non monetary rewards within their rewards reward programmes as competitive advantage tool in
motivating employees and how they affect on employees performance and following resesearch
questions will assist in the exploration of this:

What are the elements that form part of the reward and incentive offering to employees in
organizations?

Do various rewards and incentive options have specific impacts on employees from a

motivation perspective?
To what extent are organizations utilizing non monetary rewards and monetary rewards in

their offering to motivate employees?

What are the rewards preferences by employees?

4.2 Main objective and secondary objective

Primary objective:
The main Objective of this research is to determine either the monetary benefits or non-monetary
benefits have great impact on motivation and how they affect on employees performance.

Secondary objectives:

The effect of intrinsic rewards on employees performance.

The effect of extrinsic rewards on employees performance.
The relationship between extrinsic and intrinsic rewards

Through what ways increase employee s interest towards job and their motivation
towards organizational goals.

Decide the role of intrinsic and extrinsic motivation to enhance organizational

performance.
To find out whether Pay dissatisfaction has numerous undesirable consequences or not

and see how pay satisfaction increases organizational commitment

Also look into a matter that how status is more important than money and why motivate
employees towards the organizational goal is possible by assigning them good status.

4.3Nature of research:
Basic research

Basic research is conducted to expand the knowledge and understanding by developing or testing
theorey.Basic research is also known as fundamental or pure research. Basic research is driven
by scientists curiosity o interest in scientific way. Basic research lays down the foundation for
the applied science.

Applied research
Applied research is research conducted to further redevelopment of effective policies and
programme. Applied research is designed to solve practical problems. Goals of applied research
are to improve the human conditions.
So here in our study impact of monetary and non monetary benefits on employees performance
in surat city the nature of research is applied research because we are doing research is to
discover whether a reward programme or framework results in the motivation of the employees
and strategic fit between employee and the organization. How we can improve on the basis of
basic research by studying theories of motivation models programmes.

4.4 Scope
This applies to all going academic and professional and technical employees all the type of
companies. this helps us to know how are employees are motivated affected with different
benefits whether it is monetary rewards or whether it is non monetary rewards what types of
benefits affects the most to the employees performance in this way organization can know what
type of rewards affects the performance and in this way they can design their programmes of
giving rewards.

4.5 Data collection

There are two methods data can be collected they are as follow:

Primary data
Secondary data

Primary data
The tool that has been chosen to collect data was a filling up questionnaire .respondents were
asked to fill in the questionnaire and they were able to read the instructions on their own.
questionnaires some were filled personally by going through some of the production related
companies likes Reliance Larsen and Turbo Nj India Invest and ca institutes and banks like
State Bank of India,ICICI, Bank Of Baroda and some questionnaire were filled by calling
respondents.
Secondary data
We have also kept questionnaire online through www.google.docs.com. Some data we collected
for literature review and theories of motivation from website and books.

4.6 Sampling Design:

Sampling is the process of selecting units (e.g., people, organizations) from a population of
interest so that by studying the sample we may fairly generalize our results back to the
population from which they were chosen.

i. Sample size:
Total no of selected units from the population for the study is called sample size. Our sample
size in study of impact of monetary and non monetary benefit on employee performance was 80.

ii. Sample frame:

List of all units which represents target population and in case of list not possible then they can
consider some geographical boundaries in our study we selected employees particularly from
mainly 5 to 6 companies likes Reliance Larsen and Turbo NJ India Invest and ca institutes
and banks like State Bank of India,ICICI, Bank Of Baroda.

iii. Sample element:

Selection of some units from the population which represent the behavior pattern of the
population. In our study we selected employees mostly from lower level and middle level
employees.

iv. Sampling method:

In our study we used Convenience sampling which is a no probability method. This means
that subjects are chosen in a nonrandom manner, and some members of the population have no
chance of being included. With no probability sampling, researchers have no way of calculating
how well their sample represents the population as a whole.

V.Survey tool:
We used structured questionnaire to do our survey. A questionnaire is a series of questions asked
to individuals to obtain statistically useful information about a given topic. When properly
constructed and responsibly administered, questionnaires become a vital instrument by which
statements can be made about specific groups or people or entire populations.

vi. Survey method:

The broad area of survey research encompasses any measurement procedures that involve asking
questions of respondents. A "survey" can be anything forms a short paper-and-pencil feedback
form to an intensive one-on-one in-depth interview.
We'll begin by looking at the different types of surveys that are possible. These are roughly
divided into two broad areas: Questionnaires and Interviews. Next, we'll look at how we select
the survey method that is best for your situation. Once selected the survey method, we have to
construct the survey itself. Here, we will be address a number of issues including: the different
types of questions; decisions about question content; decisions about question wording; decisions
about response format; and, question placement and sequence in your instrument. We turn next to
some of the special issues involved in administering a personal interview
In a survey, researchers sample a population. A population is any set of persons or objects that
possesses at least one common characteristic. Data are usually collected through the use of
questionnaires, although sometimes researchers directly interview subjects. Surveys can use
qualitative (e.g. ask open-ended questions) or quantitative (e.g. use forced-choice questions)
measures. There are two basic types of surveys: cross-sectional surveys and longitudinal surveys.
Cross-sectional surveys are used to gather information on a population at a single point in time.
We conducted our survey by personally visiting in offices and some questionnaire was filled
through telephone and some through online survey (google.docs.co.in).

RESPONSE RATE
The targeted population for conducting this survey was general. The sample size, meant to be a
100 people filling the questionnaire, we approached the same for the responses regarding the
effects of monetary and non-monetary incentives on the job performance of individuals in an
organization.

Out of a total of 100 people approached, about 80 people responded by correctly filling the
questionnaire and provided the right information needed in order to find the solutions to the
problems, for which the survey had been undertaken. The responses of these 80 people have been
properly analyzed to reach up to an appropriate conclusion.
The method used for the survey was partly individual and partly electronic means. The responses
of people approached directly face to face were quick and they readily agreed to provide their
valuable time to fill it up. These people, approached directly, had to be explained in detail
regarding the motto and aim behind conducting the survey. While on the other hand, the people
approached via Electronic means were not so prompt in responding to filling the questionnaire.
There had to be some persuasion and promotion of the survey, to make people aware about it and
draw their attention towards the importance of responding to the survey.
Thus, the response rate of the people, not being 100% but it was still quite co-operative of them
to help carry out this research on Effects of Monetary and Non-monetary benefits on Job
performance.
Total Response Rate in this research survey: 80%

PILOT SURVEY (PRETESTING)

A Pilot Survey is a scientific tool of study that allows us to conduct a preliminary analysis before
committing to a final study or experiment. This survey is done in order to check the feasibility or
to improve the design of the research

The pilot survey that was conducted regarding the Effects of Monetary and Non-Monetary
benefits on job performance, turned out to be very helpful in finding the errors in the designing
of the questionnaire.
A total of 5 questionnaires were used for the pilot survey on friends. This survey was conducted
individually and through this we found certain errors which we later improvised upon. Following
were some of the errors that were pointed out:
1)
2)
3)
4)

Questions not easily understandable to the respondent.

Grammatical mistakes.
Use of very complicated wordings in forming the questionnaire
Lack of space (lines) provided for certain open ended questions

These errors were then taken care of and a perfect questionnaire was then formed through which
we could generate appropriate responses from the individuals.
Thus, Pilot Survey turned out to be of great importance in designing the right kind of
questionnaire for carrying out the survey research.

LIMITATIONS
There were certain problems faced during the conduction of the research on the effects of
monetary and non-monetary benefits on job performance of individuals in an organization. These
limitations were mostly pertaining to the respondents that were approached for the survey. The 2
main limitations being:
1) Unawareness of the respondent on the topic of survey

2) Unwillingness of the respondent to respond to the survey

1) UNAWARENESS: Out of the total individuals approached (100); few were of the
kind who was not at all aware about the different types of rewards and benefits that they
can be entitled to. They had no knowledge regarding the same and seemed to be
confused. Hence, they could not be given the questionnaire to be filled out for the right
kind of answers.
2) UNWILLINGNESS: A few individuals we also came across, who knew everything
about the survey, and had appropriate knowledge too. Still due to the embarrassment of
answering correctly they might specifically change their answers and provide a different
response. This is a huge drawback in conducting an effective research.

Other than these, we also faced limitations of Electronic method used for conducting the survey.
Many of the people, in this day and age do not possess a PC or internet at their homes. Hence,
they are unable to fill out such surveys and give their valuable responses to the same. Hence, a
justice cannot be made to few of these people who are willing to, but are unable to respond the
questionnaire.
Thus, as a result of a few such limitations the survey couldnt get a cent percent response and
hence provisions should be made in order to find solutions and eradicate such limitations faced
in conduction of such research.

CH: 5

ANALYSIS AND INTERPRETATION

OF DATA

1) Since how many years you have been working in this organization?

Responses

No. of Respondents

Percentage

0-5 years

33

41.25%

10-15 years

25

31.25%

15-20 years

10%

More than 15 years

14

17.5%

TOTAL

80

responses
35

33

30
25

25
20

14

15
8

10
5
0

0-5 years

10-15years

15-20years

15+years

INTERPRETATION:
From the above figures we find that the maximum no. of respondents are freshers working for
over a period of 0-5 years constituting 41.25% of the total respondents.

2) What is your monthly income?

Responses

No. of Respondents

Percentage

below 10,000 Rs
10,000 20,000
20,000-50000

7
15
31
27
80

8.75%
18.75%
38.75%
33.75%

50000 and above

TOTAL

monthly income

9%
34%

19%

below 10,000
10,000-20,000
20,000-50,000
50,000+

39%

INTERPRETATION:
Maximum no. of respondents has monthly income of rs.20, 000-50,000. Constituting of 38.75%
of respondents. Only 8.75% respondents have monthly income of rs.10, 000 or below.

3) By which method do you earn wages?

Responses

No. of Respondents

Percentage

Hourly
Salary
Other:

3
72
5

3.75%
90%
6.25%

TOTAL

80

remuneration

6% 4%

hourly
salary
other

90%

INTERPRETATION:
Maximum number of respondents, i.e. 90% respondents has a salary system for remuneration.

4) What kind of benefits are you entitled in the organization? (Multiple checks is
allowed)
Monetary
Responses

No. of Respondents

Financial benefits
Pay rise
Bonus
Cash rewards
Promotion
Personal bonus

32
47
35
19
34
15

Job upgradation
Cash recognitions
INTERPRETATION:

25
6

From the above table we can make out that PAY RISE, BONUS, PROMOTION,
FINANCIAL BENEFITS, JOB UPGRADATION are the benefits which are provided in
the highest number to the employees by the organization.
Non monetary
Responses

No. of Respondents

Org. benefits
Career development and management
Work life benefits
Work performance & recognition

20
39
28
35

Coaching / mentoring
Working environment
INTERPRETATION:

25
33

Among Non-monetary benefits CAREER DEVELOPMENT AND MANAGEMENT,

WORK PERFORMANCE AND RECONGNITION AND GOOD WORKING
ENVIRONMENT top the list.
5) How far you are satisfied with the incentives provided by the Organization??
40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%

37%
31%

32%
30%

26%

15%
9% 8%

monetary benefits

4%

non-monetary benefits
0%

Responses

No. of Respondents

Percentage

Monetary

Non-monetary

Monetary

Non-

Highly agree

25

18

31.25%

monetary
15%

Agree

24

26

30%

32.

Neutral

21

30

26.25%

37.5%

Disagree

8.75%

7.5%

Highly Disagree

3.75%

0%

TOTAL

80

100%

INTERPRETATION:
Here we compare the satisfaction level of employees with the benefits provided by the
organization.

6) Which type of incentives motivates you more?

Responses

Preferences

Incentive Awards
Promotion

15%
40%
10%
20%
15%

non-monetary
Appreciation letters
Monetary

incentive preferances

15%

incentive awards

15%

promotion
non-monetary
appreciation letters

20%

10%

monetary
40%

INTERPRETATION:
PROMOTION motivates most of the respondents highest, followed by APPRECIATION
LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally
constituting a 15%.

7) Please rank the following incentives from Most Motivating to Least Motivating by
giving 1- 8 rankings.
Responses

Averages

Benefits( stock, health insurance)

4.2

Company Socials/ parties/celebrations)

5.3

Opportunities for promotion

4.2

Performance

3.8

Based bonuses

Recognition for good work

Salary /hourly wage

4.5

Scheduled flexibility

5.3

responses
6
5
4
3
2
1
0

5.3
4.2

4.2

5
3.8

4.5

5.3

responses

INTERPRETATION:
74 respondents answered and we can see that Company Socials/ parties/celebrations) motivates
employees the most and performance motivates them the least.

8) Do you think that the incentives and other benefits will influence your
performance??
Responses

No. of Respondents

Percentage

Yes
No
TOTAL

63
19
80

78.75%
21.25%

performance influence
78.75%
80.00%
70.00%
60.00%
performance influence

50.00%
40.00%
21.25%

30.00%
20.00%
10.00%
0.00%
yes

no

INTERPRETATION:
78.75% employees agree to the fact that incentives and benefits do affect their motivation level,
performance and productivity.

9) Does the company provide any other additional benefits?

Responses

Benefits Ranked

Education for children

Insurance for family
Vacation Tours
Gift vouchers & Coupons
Others

4
1
2
3
5

INTERPRETATION:
The table shows Additional benefits provided to the respondents. We can see that most
respondents are given insurance as the additional benefits, followed by vacation tours, gift

vouchers and coupons and only a few respondents get education for children as a benefit from
work place.

Q.10) does competition for rewards influence your performance?

Responses

No. of

Percentage

YES

respondents
38

48%

NO

25

31%

NO OPINION

17

21%

TOTAL

80

100%

RESPONSES

YES

21%

NO
48%

NO OPINION

31%

INTERPRETATION:
48% of the employees agree to the fact that competing for rewards influences their performance. On the
other hand, about 31% people dont agree to the fact that competition influences performance in any
ways. 21% of the people agree upon not having any opinion regarding the influence of competition for
rewards on the performance.

Q.11) Do you get bonus?

Responses

No. of

Percentage

YES

respondents
43

54%

NO

37

46%

TOTAL

80

100%

RESPONSES

YES
NO

46%

54%

INTERPRETATION:
54% of the people are entitled to benefits of getting a monetary bonus, whereas 46% of employees are not
entitled to getting a bonus.

Q.12) Do you get motivated by bonus?

Responses

No. of

Percentage

respondents
YES

55

69%

NO

25

31%

TOTAL

80

100%

RESPONSES

YES

31%

NO
69%

INTERPRETATION:
According to this survey, 69% of people agree to the fact that they do get motivated by bonus. Whereas,
the other 31% say that getting a bonus is not a factor that would motivate them.

Q.13) what are the reasons that you stay at your present job?
REASONS

No. of Responses

Challenging job assignments

37

Vacation

Salary/ Security

50

Interesting work hours

25

Good boss

28

Promotional opportunities

25

Training

28

Work assignments vary

12

Retirement benefits

10

Location is convenient

37

Vacation leave

16

Other

REASONS
60
50
40
30
20
10
0

REASONS

INTERPRETATION:
According to this survey, people are retaining their present jobs due to various reasons, out of which the
most influencing reasons are challenging job assignments and a convenient location of the organization.
The least preferred reason being vacations and other reasons.
Q.14) Does the management includes you in the decision making which are connected to your
department?
Responses

No. of respondents

Percentage

YES

60

75%

NO

20

25%

TOTAL

80
100%

RESPONSES

25%

YES
NO

75%

INTERPRETATION:
75% of the people are involved in the decisions taken related to their department. This survey also tells us
that 25% people are not involved or given any privilege of involvement in the decision making of their
departmental issues.

Q.15) Does involvement in decision making improve your performance?

Responses

No. of respondents

Percentage

YES

65

81%

NO

15

19%

TOTAL

80

100%

RESPONSES

19%

YES
NO

81%

INTERPRETATION:
Involvement in decision making effects the performance and improves it, says 81% of the people that are
surveyed, whereas 19% say that it does not really influence their performance or improve it when these
people are involved in the decision making process.

Q.16) Are you given opportunities to enhance your skills by doing a different task within
your company/organization?

Responses

No. of

Percentage

Respondents
YES

65

81%

NO

15

19%

TOTAL

80

100%

RESPONSE

YES

15

NO

65

INTERPRETATION:

Responses

No. of

Percentage

Respondents
YES

40

50%

NO

40

50%

TOTAL

80

100%

Q.17) A) Does your department have an ongoing

recognition programme?

RESPONSES

YES
40

81% Respondents agree and are satisfied on being

given different opportunities, competitive tasks to
excel in the organsation.19% respondents deny the
fact being given competitive opportunities in the
organization.

NO
40

INTERPRETATION:
The percentage of respondents having an ongoing recognition programme and not having a
recognition programme is equal. I.e. 50%

Q.17) B) Does department have an ongoing recognition programme ?

If YES, how often???
Responses

No. of

Percentage

Respondents
MONTHLY

10

25%

QUARTERLY

11

27.5%

ANNUALLY

18

45%

OTHER

2.5%

TOTAL

40

100%

INTERPRETATION:

Maximum number of respondents has an annual recognition programme i.e. 45%, followed by
27.5% respondents having a quarter recongnition programmes. Respondents having a monthly
recognition programme constitute 25%.

Q.18) A) Have you ever been nominated for EMPLOYEE OF THE YEAR award?
B) Have you ever received EMPLOYEE OF THE YEAR award?
Responses

No. of

No. of

Percentage of

Percentage of

Respondents

respondents

Respondents

Respondents

nominated

received award

nominated

received

YES

25

20

31.25%

25%

NO

55

60

68.75%

75%

TOTAL

80

80

100%

100%

70
60

60

55

50
40
YES
30

NO

25
20

20
10
0
NOMINATED

RECEIVED

INTERPRETATION:
From the above given figures we conclude that out of 80 respondents 25 respondents i.e. 31.25%
were nominated for employee of the year award and 20 respondents constituting about 25%
have received the award.

Responses

No. of

Percentage

Respondents
YES

60

75%

NO

20

25%
Q.19) Do you feel motivated about the
programme?

TOTAL

80

100%

RESPONSES

YES

20

NO

60

INTERPRETATION:
75% respondents feel motivated about employee recognition programmers whereas for 25%
respondents such programmes do not create much pressure on performance

Q.20) what would be the greatest additional employee benefits, your employer could
implement that would assist in moral enhancement?
20 out of 80 respondents i.e. 25% respondents answered this question.
Major answers include:
MONETARY

NON-MONETARY

1.Promotion

1.appreciation and recognition of work

2. pay rise / higher pay scale

2.public holidays

3.cash rewards

3.complain box

4.incentives , bonus , awards

4.more leaves

5.achievable targets

5.coaching

6.employee stock ownership plans ESOPS

6.team party on successful completion of

targets

7.achievable targets

7.awards for different targets

8.regular advances

8.better facilities

9.performance based incentives

9.better infrastructure

10.good salary

10.monitoring and supervision

CH: 6
FINDINGS

FINDINGS
From the above analysis and interpretations we find the following:
6. The maximum no. of respondents are freshers working for over a period of 0-5 years constituting
41.25% of the total respondents

7. Maximum no. of respondents has monthly income of rs.20, 000-50,000. Constituting of

38.75% of respondents. Only 8.75% respondents have monthly income of rs.10,000 or
below
8. Maximum number of respondents , i.e. 90% respondents have a salary system for
remuneration
9. we can make out that PAY RISE, BONUS, PROMOTION, FINANCIAL BENEFITS
,JOB UPGRADATION are the benefits which are provided in the highest number to the
employees by the organization
10. Among Non-monetary benefits CAREER DEVELOPMENT AND
MANAGEMENT,WORK PERFORMANCE AND RECONGNITION AND GOOD
WORKING ENVIRONMENT top the list
11. PROMOTION motivates most of the respondents highest, followed by APPRECIATION
LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally
constituting a 15%.
12. 74 respondents answered and We can see that Company Socials/ parties/celebrations)
motivates employees the most and performance motivates them the least

13. 78.75% employees agree to the fact that incentives and benefits does affect their
motivation level , performance and productivity
14. Most respondents are given insurance as the additional benefits, followed by vacation
tours, gift vouchers and coupons and only a few respondents get education for children as
a benefit from work place.
15. 48% of the employees agree to the fact that competing for rewards influences their performance.
On the other hand, about 31% people dont agree to the fact that competition influences
performance in any ways. 21% of the people agree upon not having any opinion regarding the
influence of competition for rewards on the performance.
16. 54% of the people are entitled to benefits of getting a monetary bonus, whereas 46% of
employees are not entitled to getting a bonus.
17. According to this survey, 69% of people agree to the fact that they do get motivated by bonus.
Whereas, the other 31% say that getting a bonus is not a factor that would motivate them
18. According to this survey, people are retaining their present jobs due to various reasons, out of
which the most influencing reasons are challenging job assignments and a convenient location
of the organization. The least preferred reason being vacations and other reasons.
19. 75% of the people are involved in the decisions taken related to their department. This survey
also tells us that 25% people are not involved or given any privilege of involvement in the
decision making of their departmental issues
20. Involvement in decision making effects the performance and improves it, says 81% of the people
that are surveyed, whereas 19% say that it does not really influence their performance or improve
it when these people are involved in the decision making process

21. 81% Respondents agree and are satisfied on being given different opportunities ,
competitive tasks to excel in the organsation.19% respondents deny the fact being given
competitive opportunities in the origination
22. The percentage of respondents having an ongoing recognition programmed and not
having a recognition programmed is equal. i.e. 50%
23. Maximum number of respondents have an annual recognition programmed i.e. 45%,
followed by a 27.5% respondents having a quarter recongnition programme. Respondents
having a monthly recognition programmed constitute 25%.
24. We conclude that out of 80 respondents 25 respondents i.e. 31.25% were nominated for
employee of the year award and 20 respondents constituting about 25% have received the
award.
25. 75% respondents feel motivated about employee recognition programmers whereas for
25% respondents such programmers do not create much pressure on performance

CONCLUSION

PROMOTION motivates most of the respondents highest , followed by APPRECIATION

LETTERS and INCENTIVE AWARDS and MONETARY BENEFITS equally

Incentives and benefits does affect employee motivation level , performance and
productivity

Challenging job tasks , competitive environment , responsibility with authority ,

recongnition programmes , participation in management and decision making should be
there to retain talented employees

Organisations should focus on providing benefits to the employee and his family

Organisations should know that bonus works as one of the major motivational tool

ANNEXURE

Dear Respondent ,
I , the Student of Auro University, Surat is conducting a survey to study the Impact of
Monetary and Non-Monetary Benefits on Employees Performance in Surat city . Data
which I collect from you will be used for academic purpose only .
Thank You
1) Since how many years you have been working in this organization?
0-5 Years

10-15 Years

5-10 Years

More than 15 Years

2) What is your yearly income?

below 10,000 Rs.

10,000 20,000

20,000-50000

50000 and above

3) By which method do you earn wages?

a. Hourly
b. Salary
c. Other: _______
4) What kind of benefits are you entitled in the organization? (Multiple checks is allowed)
Monetary:
Financial benefits

Promotion

Pay rise
Bonus
Cash rewards

Personal bonus
Job upgradation
Cash recongnitons

Non-monetary:
Org. benefits
Work performance &recongnition
Career development and management
Coaching / mentoring
Work life benefits
Working environment
5) How far you are satisfied with the incentives provided by the Organization?
Monetary:

Highly Satisfied

Non-monetary:

Highly Satisfied

Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

Satisfied
Neutral
Dissatisfied
Highly Dissatisfied

6) Which type of incentives motivates you more?

(Multiple tick check is allowed)
Incentive Awards
Promotion

Appreciation letters
monetary

non-monetary
7) Please rank the following incentives from Most Motivating to Least Motivating by giving
1- 8 rankings.
Benefits( stock,health insurance)
Company Socials/ parties/celebrations)
Opportunities for promotion
Performance
Based bonuses
Recognition for good work
Salary /hourly wage
Scheduled flexibility

8) Do you think that the incentives and other benefits will influence your performance??
Yes

No

9) Does the company provide any other additional benefits? (Check any if applicable)
Education for children

Insurance for family

Vacation Tours

Gift vouchers & Coupons

Others
10) Does competition for rewards influence your performance?

Influence
Does not influence
No opinion
11) Do you get bonus??
Yes

No

12) Do you get motivated by bonus??

Yes

No

13) What are the reasons that you stay at your present job?
(Check all that apply)
Challenging job assignments
Promotional opportunities
Vacation
Training Opportunities
Salary/Benefits Stability/Security
Work assignments vary
Interesting Work Hours
Retirement Benefit
Good boss
Location is convenient
other_________________
Vacation leave
14) Does the management involve you in decision making which are connected to your
department?
Yes
No
15) Does that affect your performance?
Yes
No
16) Are u given opportunity to enhance your skills by doing a different task within the
company??
Yes
No
17) Does your Ministry/Department have an ongoing Recognition Programme?
Yes

No

(If the answer is 'YES', how often?)

Monthly
Annually
Quarterly
Other:_____________
18) Have you ever been nominated or received an Employee of the Quarter/Employee of the
Year award?
Nominated :
Yes
Received :
Yes

No
No

19) Do u feel motivated about the program?

Yes

No

If no, would you change something about the reward system?

20) What would be the greatest additional employee ben efits your employer could implement
that would assist in morale enhancement?
Monetary: _______________________
Non monetary: ___________________________
PERSONAL DETAILS
Name:
Gender: Female
Age:
20-30
40-50
Educational qualification:
graduate
MPhil
Designation in the organisation:

Male
30-40
50+
post graduate
Phd

REFERENCES
1 Naresh Malhotra
2 Ashwathaapa
3 http://www.ukessays.com/essays/business/motivation-throughmonetary-and-non-monetary-benefits-business-essay.php
4 http://www.ehow.com/info_8190209_important-factor-employeemotivation.html
5 http://kalyan-city.blogspot.com/2010/06/frederick-herzberg-two-factortheory.html
6 http://kalyan-city.blogspot.com/2010/06/david-mcclellandachievement-motivation.html
7 http://lh6.ggpht.com/_iFIztPmvqg8/TCV1ifbPCTI/AAAAAAAAC3g/5gdwb
BhtK3M/s420/Maslow-Hierarchy-of-Needs-Motivation-Theory.jpg
8 http://kalyan-city.blogspot.com/2010/06/maslow-hierarchy-of-needstheory-of.html
9 http://kalyan-city.blogspot.in/2010/06/motivation-motivationalfactors.html
10 http://www.ehow.com/how-does_5407144_employee-motivationimpact-organizational-performance_.html
11 http://isearch.babylon.com/?
q=impct+of+benefits+on+employee+motivtion&babsrc=NT_ss&s=we
b&as=3&ac=0