A Study of Employee Motivation in Hindustan Uniliver Ltd

SUMMER TRAINING PROJECT REPORT ON

“A STUDY OF EMPLOYEE MOTIVATION IN HINDUSTAN UNILIVER LTD” In the partial fulfillment for the award of the degree of BACHELOR OF BUSINESS ADMINISTRATION Affiliated To: C.C.S. University, Meerut ACADEMIC SESSION (2014-2017)

SUBMITTED TO:

SUBMITTED BY:

Mr. Ankit Garg

Deepa Sharma

(H.O.D.)

BBA-VIth Roll No.: 8458517

INMANTEC INTEGRATED ACADEMY OF MANAGEMENT & TECHNOLOGY, GHAZIABAD

[1]

DECLARATION

I hereby declare that study of “A Study of Employee Motivation in Hindustan Uniliver Ltd.” has been exclusively done by me for the degree of Bachelor in Business Administration not for any other degree, diploma or fellowship. This is my own study done under the guidance of guide and managers of the company.

Date: Place :

Deepa Sharma Roll No.; 8458517 BBA-VIth Sem.

[2]

ACKNOWLEDGEMENT

I want to thank to those people to whom whenever I approached for help they gave me their valuable time. First of all I want to take the opportunity to give my sincere thanks to HR manager of HINDUSTAN UNILEVER LIMITED under whose able guidance and kind cooperation I was able to complete the project. I also want to thank Mr. Ashish Upadhaye (HR Executive) and all the employees of Hindustan Unilever Ltd. for their cooperation and suggestion given to me during my training period. Further I would like to thanks my Institute for giving the opportunity to interact with the corporate world. All the employees of Hindustan Unilever Ltd deserve special thanks for their cooperation and help in the collection of necessary and relevant material for this work. Also, I thank and remember all the members of company, for their effort and helping hand. Every effort has been made to enhance the quality of work.

(DEEPA SHARMA)

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PREFACE

Management’s basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned the project work entitled a STUDY ON EMPLOYEE MOTIVATION with special reference to Hindustan Unilever Limited; is mainly conducted to identify the factors which will motivate the employees and the organizational functions in Hindustan Unilever Limited.

TABLE OF CONTENTS [4]

S. No.

Name of Chapter

Page No.

1.

Executive Summary

6-7

2.

Introduction

8-10

3.

Company profile

11-34

4.

Theoretical Background

35-48

5.

Objective of Study

49-51

6.

Research Methodology

52-55

7.

Data Analysis & Findings

56-72

8.

Limitations

73-74

9.

Suggestions

75-76

10.

Conclusion

77-78

11.

Bibliography

79-80

12.

Appendices

81-84

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CHAPTER - 1 EXECUTIVE SUMMARY

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EXECUTIVE SUMMARY Motivation in simple terms may be understood as the set of forces that cause people to behave in certain ways. A motivated employee generally is more quality oriented. Highly motivated worker are more productive than apathetic worker one reason why motivation is a difficult task is that the workforce is changing. Employees join organizations with different needs and expectations. Their values, beliefs, background, lifestyles, perceptions and attitudes are different. Not many organizations have understood these and not many HR experts are clear about the ways of motivating such diverse work force. Now days employees have been hired, trained and remunerated they need to be motivated for better performance. Motivation in simple terms may be understood as the set or forces that cause people to behave certain ways. The primary objective of the study is to study the important factors which are needed to motivate the employees & their performance in Hindustan Unilever Limited. Research Methodology about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. While analyzing the data it has been found that HUL has a well defined organization structure. There is a harmonious relationship is exist in the organization between employees and management. The employees are really motivated by the management. They are satisfied with the present incentive plan and rewards scheme of the company. Most of the workers agreed that the company is eager in recognizing and acknowledging their work. The study reveals that there is a good relationship exists among employees. The major suggestions has been given on the basis of findings are to measure the effectiveness of motivational schemes in the employees of HUL & also the relationship of motivation to the effectiveness and efficiency of their work. The project describes the above mentioned points in detail.

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CHAPTER - 2 INTRODUCTION

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INTRODUCTION The factory manager heads the factory comprising a team of 4 managers, 23 officers, 22 Commercial Assistant and 441 workmen. The age profile of the workmen is about 41 years. All of them are skilled and have a technical training. A large number of them have computer operating knowledge. Shift Pattern: The factory works round the year in three shifts. There is a general shift for certain maintenance workmen and management team members. Studying, personality development etc. Family Day was celebrated with great enthusiasm and participation by all. Above initiatives have been strengthening the sense of belongingness amongst the employees and their families. Cultural programmes of the children’s were also organised on different occasions to build the relationship stronger. Many effort were done through the In-house trainings to enhance the personal skills and capabilities, Computer trainings courses were also provided by the factory for individual workmen to increase their in computers skills. At Etah HUL emphasis are also given to the CSR activities like the Educational and health camps in nearby villages, Road & safety programs for the employee’s families, etc.

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2, 5% 3, 7%

5, 12%

1, 2% 4, 10%

8TH CLASS HIGH SCHOOL

4, 10%

INTERMEDIATE

2, 5%

B.A.

1, 2%

I.T.I. ELECTRICIAN I.T.I. FITTER I.T.I. RAC I.T.I. WELDER

11, 27%

8, 20%

I.T.I.ELECTRONI CS I.T.I.WIREMEN

Enhancing Skill Flexibility The workmen in the factory are being continuously trained to handle at least 3-4 jobs, so as to increase the flexibility of deployment of the manpower. This required designing of innovative Reward and Recognition practices (viz. Best employee Scheme, OPL/Kaizen Awards, Multi Skill Allowance etc.) and building acceptance to the concept of Multi-Skilling. A conscious effort was made to encourage the experienced and semi-skilled workmen (non ITI) to take up skilled operations like machine operation, maintenance & processing etc. They were provided inputs both on the job and off the job by trained & experienced faculty on the fundamentals of skilled operations. HR initiatives aimed at increasing the engagement level of employee, various engagement programmes like Sports day, Annual day celebration were organised. Training programs were organised for employee spouses in areas of Home Safety, family budgeting, upbringing of children etc. Programs were also organised for employee children in areas Art-Beat Competition.

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Chapter - 3 COMPANY PROFILE

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COMPANY PROFILE Hindustan Unilever Limited (abbreviated to HUL) (BSE: HUL) formerly Hindustan Lever Limited, is India’s largest consumer products company and has an annual turnover of over Rs 13,000 crores (calendar year 2007). It was formed in 1933 as Lever Brothers India Limited and came into being in 1956 as Hindustan Lever Limited through a merger of Lever Brothers, Hindustan Vanaspati Mfg. Co. Ltd. and United Traders Ltd.. It is headquartered in Mumbai, India and has employee strength of over 15,000 employees and contributes for indirect employment of over 52,000 people. The company was renamed in late June 2007 to “Hindustan Unilever Limited”. In 2007, Hindustan Unilever was rated as the most respected company in India for the past 25 years by Business World, one of India’s leading business magazines. The rating was based on a compilation of the magazines annual survey of India’s Most Reputed Companies over the past 25 years. HUL is the market leader in Indian consumer products with presence in over 20 consumer categories such as Soaps, Tea, Detergents and Shampoos amongst others with over 700 million Indian consumers using its products. It has over 35 brands. Sixteen of HUL’s brands featured in the AC Nielsen-Brand Equity list of 100 Most Trusted Brands Annual Survey (2008). According to Brand Equity, HUL has the largest number of brands in the Most Trusted Brands List. It’s a company that has consistently had the largest number of brands in the Top 50 and in the Top 10 (with 4 brands). Hindustan Unilever distribution covers over 1 million retails outlets across India directly and its products are available in over 6.3 million outlets in India, i.e. nearly 80% of the retail outlets in India. It has 39 factories in the country. Two out of three Indians use the company’s products and HUL products have the largest consumer ssreach being available in over 80 per cent of consumer homes across India. The Anglo-Dutch company Unilever owns a majority stake (52%) in Hindustan Unilever Limited. HUL was one of the eight Indian companies to be featured on the Forbes list of World’s Most Reputed companies in 2007. History - Chronology In the summer of 1888, visitors to the Kolkata harbour noticed crates full of Sunlight soap bars, embossed with the words "Made in England by Lever Brothers". With it, began an era of marketing branded Fast Moving Consumer Goods (FMCG). Soon after followed Lifebuoy in 1895 and other famous brands like Pears, Lux and Vim. Vanaspati was launched in 1918 and the famous Dalda brand came to the market in 1937.

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In 1931, Unilever set up its first Indian subsidiary, Hindustan Vanaspati Manufacturing Company, followed by Lever Brothers India Limited (1933) and United Traders Limited (1935). These three companies merged to form HUL in November 1956; HUL offered 10% of its equity to the Indian public, being the first among the foreign subsidiaries to do so. Unilever now holds 52.10% equity in the company. The rest of the shareholding is distributed among about 360,675 individual shareholders and financial institutions. The erstwhile Brooke Bond's presence in India dates back to 1900. By 1903, the company had launched Red Label tea in the country. In 1912, Brooke Bond & Co. India Limited was formed. Brooke Bond joined the Unilever fold in 1984 through an international acquisition. The erstwhile Lipton's links with India were forged in 1898. Unilever acquired Lipton in 1972 and in 1977 Lipton Tea (India) Limited was incorporated. Pond's (India) Limited had been present in India since 1947. It joined the Unilever fold through an international acquisition of Chesebrough Pond's USA in 1986. Since the very early years, HUL has vigorously responded to the stimulus of economic growth. The growth process has been accompanied by judicious diversification, always in line with Indian opinions and aspirations. The liberalisation of the Indian economy, started in 1991, clearly marked an inflexion in HUL's and the Group's growth curve. Removal of the regulatory framework allowed the company to explore every single product and opportunity segment, without any constraints on production capacity. Simultaneously, deregulation permitted alliances, acquisitions and mergers. In one of the most visible and talked about events of India's corporate history, the erstwhile Tata Oil Mills Company (TOMCO) merged with HUL, effective from April 1, 1993. In 1995, HUL and yet another Tata company, Lakme Limited, formed a 50:50 joint venture, Lakme Unilever Limited, to market Lakme's market-leading cosmetics and other appropriate products of both the companies. Subsequently in 1998, Lakme Limited sold its brands to HUL and divested its 50% stake in the joint venture to the company. The 1990s also witnessed a string of crucial mergers, acquisitions and alliances on the Foods and Beverages front. In 1992, the erstwhile Brooke Bond acquired Kothari General Foods, with significant interests in Instant Coffee. In 1993, it acquired the Kissan business from the UB Group and the Dollops Icecream business from Cadbury India. As a measure of backward integration, Tea Estates and Doom Dooma, two plantation companies of Unilever, were merged with Brooke Bond. Then in July 1993, Brooke Bond India and Lipton India merged to form Brooke Bond Lipton India Limited (BBLIL), enabling greater focus and ensuring synergy in the traditional Beverages business. 1994 witnessed [13]

BBLIL launching the Wall's range of Frozen Desserts. By the end of the year, the company entered into a strategic alliance with the Kwality Icecream Group families and in 1995 the Milkfood 100% Icecream marketing and distribution rights too were acquired. Finally, BBLIL merged with HUL, with effect from January 1, 1996. The internal restructuring culminated in the merger of Pond's (India) Limited (PIL) with HUL in 1998. The two companies had significant overlaps in Personal Products, Speciality Chemicals and Exports businesses, besides a common distribution system since 1993 for Personal Products. The two also had a common management pool and a technology base. The amalgamation was done to ensure for the Group, benefits from scale economies both in domestic and export markets and enable it to fund investments required for aggressively building new categories. In January 2000, in a historic step, the government decided to award 74 per cent equity in Modern Foods to HUL, thereby beginning the divestment of government equity in public sector undertakings (PSU) to private sector partners. HUL's entry into Bread is a strategic extension of the company's wheat business. In 2002, HUL acquired the government's remaining stake in Modern Foods. In 2003, HUL acquired the Cooked Shrimp and Pasteurised Crabmeat business of the Amalgam Group of Companies, a leader in value added Marine Products export

CORPORATE PURPOSE Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene and personal care with brands that help people feel good, look good and get more out of life. Our deep roots in local cultures and markets around the world give us our strong relationship with consumers and are the foundation for our future growth. We will bring our wealth of knowledge and international expertise to the service of local consumers - a truly multi-local multinational.

Our long-term success requires a total commitment to exceptional standards of performance and productivity, to working together effectively, and to a willingness to embrace new ideas and learn continuously. To succeed also requires, we believe, the highest standards of corporate behaviour towards everyone we work with, the communities we touch, and the environment on which we have an impact. This is our road to sustainable, profitable growth, creating long-term value for our shareholders, our people, and our business partners.

HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Unilever Research Centre (HURC) was set up in 1958, and now [14]

has facilities in Mumbai and Bangalore. HURC and the Global Technology Centres in India have over 200 highly qualified scientists and technologists, many with post-doctoral experience acquired in the US and Europe. HUL believes that an organisation's worth is also in the service it renders to the community. HUL is focusing on health & hygiene education, women empowerment, and water management. It is also involved in education and rehabilitation of special or underprivileged children, care for the destitute and HIV-positive, and rural development. HUL has also responded in case of national calamities / adversities and contributes through various welfare measures, most recent being the village built by HUL in earthquake affected Gujarat, and relief & rehabilitation after the Tsunami caused devastation in South India. In 2001, the company embarked on an ambitious programme, Shakti. Through Shakti, HUL is creating micro-enterprise opportunities for rural women, thereby improving their livelihood and the standard of living in rural communities. Shakti also includes health and hygiene education through the Shakti Vani Programme, and creating access to relevant information through the iShakti community portal. The program now covers 15 states in India and has over 45,000 women entrepreneurs in its fold, reaching out to 135,000 villages and directly reaching to 150 million rural consumers. By the end of 2010, Shakti aims to have 100,000 Shakti entrepreneurs covering 500,000 villages, touching the lives of over 600 million people. HUL is also running a rural health programme – Lifebuoy Swasthya Chetana. The programme endeavours to induce adoption of hygienic practices among rural Indians and aims to bring down the incidence of diarrhoea. It has already touched 84.6 million people in approximately 43890 villages of 8 states. The vision is to make a billion Indians feel safe and secure. Hindustan Lever Limited (HLL) is India's leading consumer goods supplier, with a focus on the Fast-Moving Consumer Goods (FMCG) category that includes detergents, soap, shampoo, deodorant, toothpaste, and other personal care items, and cosmetics. HLL's personal care brands include soap brands such as Lux, Lifebuoy, Liril, Breeze, Dove, Pear's, and Rexona; shampoos and hair coloring brands including Sunsilk Naturals and Clinic; skin care brands Fair & Lovely and Pond's; and oral care brands Pepsodent and Close-Up. The company's cosmetic line is led by the Lakme brand; HLL also produces a line of Ayurvedic personal and healthcare items under the Ayush brand. In addition to the FMCG segment, HLL has developed a line of food items, primarily under the Kissan and Knorr Annapurna brands, as well as the ice cream brand Kwality Wall's. In the early 2000s, HLL also acquired baked goods producer Modern Food Industries. In addition to its domestic brand family, HLL sells bulk foods, including maize, rice, salt, and atta. HLL is also an active exporter, shipping its FMCG and food brands, as well as rice; marine products including surimi, shrimp, crabsticks, and others; and castor oil. HLL has completed a restructuring of its business in the first half of [15]

the 2000s, streamlining its brand portfolio, from 110 brands to 35 "power" brands, while exiting a number of businesses, such as teas (sold to the Woodbriar Group in 2006) and specialty chemicals. HLL maintains a strong manufacturing presence in India, with some 80 factories located throughout the country; the company also subcontracts to more than 150 third-party producers. HLL is itself a subsidiary of Unilever, which controls 51.55 percent of the group. HLL is listed on the Mumbai Stock Exchange.

Indian Manufacturing Base Starting in 1931 England's Lever Brothers began importing their Sunlight brand soap into India in the late 1880s. By 1895, Lever had introduced another of its brands, Lifebuoy, which became the company's longest-running successful brand in India. Other Lever brands followed into the beginning of the next century, including the Lux soap flake brand in 1905; and scouring powder Vim as well as soap brand Vinolia in 1913. Lever Brothers, by then well into an international expansion that would see the company become one of the world's top multinationals, also acquired and introduced a number of other brands into the Indian market, including Pear's soap, in 1917. By 1930, Lever Brothers, which also had entered areas such as food production, including edible oils and margarine, had merged with The Netherlands' Margarine Unie, forming Unilever. Unilever's Indian sales were based on imports into the early 1930s. The company had begun planning, however, to establish a manufacturing presence in the Indian subcontinent as early as 1923. The company began talks with the British and Indian authorities, and finally received permission to build its first factory in 1931. In that year, the company incorporated a new subsidiary, Hindustan Vanaspati Manufacturing Company, to produce edible oils. That company opened a production facility in Sewri in 1932. Two years later, the company added another subsidiary, Lever Brothers India Limited, for the production of soap, and began construction of a factory next to its Vanaspati facility. That company launched production of Sunlight-branded soap at a factory in Bombay in 1934. In that year, as well, the company took over production at the Calcutta factory of another company, Northwest Soap, where it began producing the Lever brand family. That factory, known as the Garden Reach factory, added production of a line of personal care products in 1943. The transition of Unilever's multiple businesses to the single Hindustan Lever Limited began in the 1940s. In 1944, the three Indian companies were reorganized under a unified management. Nonetheless, the companies retained separate sales and marketing businesses. In the meantime, the company had launched an effort to transition the company from one led [16]

almost entirely by foreign and, in large part, European management, to one staffed primarily by Indians. This effort began in 1942, when the company began training Indians for its junior and then senior management positions. By 1951, the company appointed an Indian, Prakash Tandon, to the managing director's position. Tandon led the merger of the three Indian subsidiaries into a single entity, Hindustan Lever Limited (HLL), in 1956. By the end of the decade, Tandon had taken over the chairman's position as well. By then, nearly all of the group's management positions were filled by Indians. HLL was then taken public, as Unilever reduced its stake in the company in favor of domestic shareholders. By 1980, Unilever's stake in HLL had dropped to less than 52 percent. National Consumer Goods Giant in the Second Half of the 20th Century HLL already produced a wide range of consumer goods for the Indian market by the early 1960s. In 1962, the company launched its own export operations as well, in a move made in part to bring foreign exchange capital into the struggling Indian economy. HLL's exports reflected the company's own multifaceted operations. In addition to producing and supplying raw materials and finished products, including a number of specialty chemicals and tea, in the support of the international Unilever brand family, HLL also developed a bulk goods export business. For this the company focused on Indian-specific goods, such as castor oil, Basmati rice, and a variety of marine products, including shrimp and surimi. HLL set up a new headquarters in Mumbai in 1963. The following year, the company entered the dairy industry, establishing its Etah dairy and launching the Anik brand of ghee (a prepared butter product used in Indian cooking). The company also began producing animal feed that year. Meanwhile, HLL launched a new shampoo, Sunsilk, for the Indian market. By the end of the decade, HLL had launched a number of other successful brands, including Signal toothpaste, Taj Mahal tea, Bru coffee, and Clinic shampoo, launched in 1971. By then, the company had firmly established itself as the leading producer of so-called "fast-moving consumer goods." Part of the company's success came from its highly active sales network. A significant proportion of India's population, which would top one billion before the dawn of the 21st century, still lived in rural regions and in extreme poverty. For much of this population, personal care products remained luxury items. Yet the company recognized the importance of building its brands in this region as well, and as such the company developed a vast sales network. Much of this network was based on an army of independent, direct sales agents, who hawked the company's products in the country's more than 150,000 villages. Into the 1970s, HLL also began diversifying beyond its consumer goods operations. The company opened the Hindustan Lever Research Center, in Mumbai, in 1967. This led the group to begin producing fine chemicals in 1969. By 1971, the company had received [17]

permission from Unilever to enter the production of industrial chemicals. The company began construction of a pilot plant for this operation in Taloja in 1974. This unit was completed in 1976. In that year, HLL launched the construction of a larger chemicals complex, at Haldia. That facility began producing sodium tripolyphosphate in 1979. The production of these chemicals enabled HLL to begin producing synthetic detergents at Jammu in 1977. Through the 1980s, HLL continued to develop its businesses. In 1986, the company set up an agri-products business, based in Hyderabad, which began producing hybrid seeds that year. HLL also added a new soap production facility in Khamgaon, and a personal products factory in Yavatmal that year. HLL's growth had nonetheless been limited by restrictions put into place by the Indian government's quasi-socialist economic policies. In 1991, however, in the face of a major economic crisis, the government was forced to liberalize the country's economy. This opened up a new era of opportunity for HLL. Power Brand Focus into the 21st Century A major step forward for the group came in 1993, when the company acquired its leading rival, Tata Oil Mills. By then, HLL also had met with success in the detergents category, with the launch of its Surf Ultra brand. This brand targeted the country's middle class, which, with the liberalization of the country's economy, was also becoming one of the fastest growing segments of India's population. In a further move to target this population, the company launched a new, high-end detergent brand, Surf Excel, in 1996. By the mid-1990s, HLL's revenues had topped $540 million. The company also had launched its first foreign subsidiary, establishing Nepal Lever Limited. That unit began producing soaps and detergents and other products within the HLL brand family, both for the Indian and Nepal market, as well as for the larger export market. HLL also began developing a series of joint venture partnerships in the 1990s. In 1995, the company teamed up with Tata, this time forming a 50-50 joint venture with Tata's Lakme cosmetics group. HLL bought the Lakme brand family just three years later, taking full control of Lakme Lever. By then, the company also had formed a joint venture with Kimberly-Clark, which began marketing the Huggies diaper and Kotex sanitary pad brands in India. HLL also deepened its food brands during the 1990s and into the 2000s. The company acquired Kwality and Milkfood, which included the Kwality Wall's ice cream brand. In 2000, HLL marked the beginning of a new era in India's economy, when it acquired 74 percent of Modern Food Industries Limited. A major baked goods business in India, Modern Food had previously been owned by the Indian government, and marked HLL's extension into an entirely new product category. HLL subsequently acquired full control of Modern Food in 2002. [18]

By then, HLL appeared to have once again moved into a growth phase, posting revenue gains of 9 percent, and net profit growth of some 23 percent, over the previous year. HLL also prepared to enter a new management era; in 2006, the company appointed Douglas Baillie, who previously headed Unilever's operations in Africa, as the company's CEO. That appointment placed a non-Indian at the head of the company for the first time in more than 40 years. HLL appeared certain to clean up in India's consumer goods market for decades to come. Principal Subsidiaries Bon Limited; Daverashola Tea Company Limited; Hindlever Trust Limited; Indexport Limited; Indigo Lever Shared Services Limited; International Fisheries Limited; KICM (Madras) Limited; Kimberly-Clark Lever Private Limited (50%); Lever India Exports Limited; Levers Associated Trust Limited; Levindra Trust Limited; Lipton India Exports Limited; Merryweather Food Products Limited; Modern Food and Nutrition Industries Limited; Modern Food Industries (India) Limited; Nepal Lever Limited (Nepal) (80%); Ponds Exports Limited; Quest International India Limited (49%); Thiashola Tea Company Limited; TOC Disinfectants Limited.

Principal Competitors Nirma Ltd.; Jocil Ltd.; Nahar Industrial Enterprises Ltd.; Shrihari Laboratories P Ltd.; Ruchi Infrastructure Ltd.; Procter & Gamble Hygiene and Healthcare Ltd.; Amrit Banaspati Company Ltd.; Henkel SPIC India Ltd.; K S Oils Ltd.;

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WELFARE In order to ensure the welfare of workers, appropriate provisions have been made under Section 46 of the Factories Act, 1948. Under these provisions State Governments are empowered to frame Rules requiring that in every factory, wherein more than two hundred fifty workers are ordinarily employed, the occupier for the use of workers shall maintain a canteen. Similarly, Section 47 envisages that every factory, wherein more than one hundred fifty workers are ordinarily employed, adequate and suitable shelters or rest rooms and a lunchroom with the provisions of drinking water, where workers can take meals, should be provided and maintained for the use of workers. Section 48 provides that in every factory, wherein more than thirty women are ordinarily employed should be provided and maintained a suitable room for the use of children under the age of six years of such women workers. The information relating to canteens, crèches, shelters and lunch rooms by States and Industries for the year 2002 has been presented in Table 8.1 and 8.2. Most of the factories in all the States/U.T’s except Goa and Tripura, even though all of them were not statutorily required to provide Canteen, Creche and Shelter or rest rooms etc, provided these facilities.

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COMPANY PROFILE Overview The Factory was commissioned in 1996 for the manufacture of instant tea as a 100% EOU. It manufactures Cold Water Soluble (CWS) and Hot Water Soluble (HWS) Instant Tea. The powders are exported to customers across the world.

Etah is 200 Km east of Delhi on the Delhi-Kanpur GT Road, and the factory is situated in a Seven Acre plot (the site is leased out from M/s. Anik Industries private Limited), which is 3.5 Km from Etah town in the Etah-Kasganj main road.

Initially this factory started production of Cold water Soluble (CEY DARK & CEY BRITE) and Hot water Soluble (HIT). The factory is ISO 9000 certified. In the last three years unit has faced lots of challenges and meets the business demand by successfully stabilizing the new products like Saint & IGT for Europe.

Year

Event

1995:

Factory set up.

1996

Production Started

1998:

Inception of Union

1999:

Sale of HLL Etah Dairy to Nutricia

2000:

First Long term Settlement

2002:

Certification from BVQI

2004:

Second Long term settlement

2005:

Implementation of Du Pont safety

2006:

Introduction of new product (saint)

2007:

Introduction of Instant green tea

IR Condition in HUL Etah Initially Etah was a cluster of three HUL factories i.e. Etah Dairy (now sold), Etah Instant Tea (IT) Factory (100% EOU) and the Etah Tea factory. IT unit is only 3 km away from the Etah Tea packing unit. Instant Tea, though falls under a different business but has commonality in terms of employees base and the geographical proximity. The Union is a registered union and has got the external affiliation with Bhartiya mazdoor Sangh (BMS).

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The union and management relations are very cordial and union exhibit the mature behavior in running the daily business of the factory

Business Outlook: (A)

Flexibility HUL Etah has increased the no of shifts and the change over time to meet the targets of the production which all comes from the across the world for catering there instant tea business. But with introduction of these products and proving the manufacturing capability, Etah is capable of producing all varieties of Instant Tea Powder.

With the demand for increased flexibility, the challenge has been to manage frequent changeovers effectively in order to deliver business requirements promptly. (B)

Quality In spite of having complex process, Etah Factory, always tried to achieve high standards in quality.

The factory is ISO 9001-2000 certified by BVQI and always tries to maintain high standards of quality. With the implementation of the various elements of UQCSRM guidelines & new Quality PHC systems, the factory has been able to consistently better its performance on the quality front. The factory cleared the UQCSRM Audit with an A rating and ISO 9001-2000 .

(C)

Safety In HUL safety is the working condition for employment.

Factory has done significant improvement in safety and environment front. Factory always strived to create safety awareness amongst the people & contractor workmen through the implementation of various activities and adopting & adhering to DuPont culture. Factory has done remarkable improvement in environmental care by installing the rain water harvesting system. [22]

MILESTONES YEAR 1888 1895

MILESTONES Sunlight soap introduced in India. Lifebuoy soap launched; Lever Brothers appoints agents in Mumbai, Chennai, Kolkata, and Karachi.

1902

Pears soap introduced in India.

1903

Brooke Bond Red Label tea launched.

1905

Lux flakes introduced.

1913

Vim scouring powder introduced.

1914

Vinolia soap launched in India.

1918

Vanaspati introduced by Dutch margarine manufacturers like Van den Berghs, Jurgens, Verschure Creameries, and Hartogs.

1922

Rinso soap powder introduced.

1924

Gibbs dental preparations launched.

1925

Lever Brothers gets full control of North West Soap Company.

1926

Hartogs registers Dalda Trademark.

1930

1931 1932 1933

Unilever is formed on January 1 through merger of Lever Brothers and Margarine Unie. Hindustan Vanaspati Manufacturing Company registered on November 27; Sewri factory site bought. Vanaspati manufacture starts at Sewri. Application made for setting up soap factory next to the Vanaspati factory at Sewri; Lever Brothers India Limited incorporated on October 17. Soap manufacture begins at Sewri factory in October; North West Soap

1934

Company's Garden Reach Factory, Kolkata rented and expanded to produce Lever brands.

1935

United Traders incorporated on May 11 to market Personal Products.

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1937 1939

1941

1942 1943 1944 1947 1951 1955 1956

Mr. Prakash Tandon, one of the first Indian covenanted managers, joins HVM. Garden Reach Factory purchased outright; concentration on building up Dalda Vanaspati as a brand. Agencies in Mumbai, Chennai, Kolkata and Karachi taken over; company acquires own sales force. Unilever takes firm decision to "train Indians to take over junior and senior management positions instead of Europeans". Personal Products manufacture begins in India at Garden Reach Factory. Reorganisation of the three companies with common management but separate marketing operations. Pond's Cold Cream launched. Mr. Prakash Tandon becomes first Indian Director. Shamnagar, Tiruchy, and Ghaziabad Vanaspati factories bought. 65% of managers are Indians. Three companies merge to form Hindustan Unilever Limited, with 10% Indian equity participation.

1957

Unilever Special Committee approves research activity by Hindustan Unilever.

1958

Research Unit starts functioning at Mumbai Factory.

1959

Surf launched.

1961

Mr. Prakash Tandon takes over as the first Indian Chairman; 191 of the 205 managers are Indians.

1962

Formal Exports Department starts.

1963

Head Office building at Backbay Reclamation, Mumbai, opened.

1964 1965 1966

Etah dairy set up, Anik ghee launched; Animal feeds plant at Ghaziabad; Sunsilk shampoo launched. Signal toothpaste launched; Indian shareholding increases to 14%. Lever's baby food, more new foods introduced; Nickel catalyst production begins; Indian shareholding increases to 15%. Statutory price control on

[24]

Vanaspati; Taj Mahal tea launched. 1967 1968 1969 1971 1973 1974

Hindustan Unilever Research Centre, opens in Mumbai. Mr. V. G. Rajadhyaksha takes over as Chairman from Mr. Prakash Tandon; Fine Chemicals Unit commissioned at Andheri; informal price control on soap begins. Rin bar launched; Fine Chemicals Unit starts production; Bru coffee launched Mr. V. G. Rajadhyaksha presents plan for diversification into chemicals to Unilever Special Committee - plan approved; Clinic shampoo launched. Mr. T. Thomas takes over as Chairman from Mr. V. G. Rajadhyaksha. Pilot plant for industrial chemicals at Taloja; informal price control on soaps withdrawn; Liril marketed. Ten-year modernisation plan for soaps and detergent plants; Jammu project work

1975

begins; statutory price control on Vanaspati and baby foods withdrawn; Close-up toothpaste launched.

1976

1977

Construction work of Haldia chemicals complex begins; Taloja chemicals unit begins functioning. Jammu synthetic Detergents plant inaugurated; Indian shareholding increases to 18.57%.

1978

Indian shareholding increases to 34%; Fair & Lovely skin cream launched.

1979

Sodium Tripolyphospate plant at Haldia commissioned.

1980

Dr. A. S. Ganguly takes over as Chairman from Mr. T. Thomas; Unilever shareholding in the company comes down to 51%.

1982

Government allows 51% Unilever shareholding.

1984

Foods, Animal Feeds businesses transferred to Lipton. Agri-products unit at Hyderabad starts functioning - first range of hybrid seeds

1986

comes out; Khamgaon Soaps unit and Yavatmal Personal Products unit start production.

1988

Launch of Lipton Taaza tea.

1990

Mr. S. M. Datta takes over as Chairman from Dr. A. S. Ganguly.

[25]

1991

Surf Ultra detergent launched.

1992

HUL recognised by Government of India as Star Trading House in Exports. HUL's largest competitor, Tata Oil Mills Company (TOMCO), merges with the

1993

company with effect from April 1, 1993, the biggest such in Indian industry till that time. Merger ultimately accomplished in December 1994; Launch of Vim bar; Kissan acquired from the UB Group. HUL forms Unilever Nepal Limited, HUL and US-based Kimberley-Clark Corporation form 50:50 joint venture - Kimberley-Clark Lever Ltd. - to market

1994

Huggies diapers and Kotex feminine care products. Factory set up at Pune in 1995; HUL acquires Kwality and Milkfood 100% brandnames and distribution assets. HUL introduces Wall's. HUL and Indian cosmetics major, Lakme Ltd., form 50:50 joint venture - Lakme

1995

Lever Ltd.; HUL enters branded staples business with salt; HUL recognised as Super Star Trading House. Mr. K. B. Dadiseth takes over as Chairman from Mr. S. M. Datta; Merger of

1996

Group company, Brooke Bond Lipton India Limited, with HUL, with effect from January 1; HUL introduces branded atta; Surf Excel launched.

1997

Unilever sets up International Research Laboratory in Bangalore; new Regional Innovation Centres also come up. Group company, Pond's India Ltd., merges with HUL with effect from January 1,

1998

1998. HUL acquires Lakme brand, factories and Lakme Ltd.'s 50% equity in Lakme Lever Ltd. Mr. M. S. Banga takes over as Chairman from Mr. K. B. Dadiseth, who joins the

2000

Unilever Board; HUL acquires 74% stake in Modern Food Industries Ltd., the first public sector company to be disinvested by the Government of India.

2002

HUL enters Ayurvedic health & beauty centre category with the Ayush range and Ayush Therapy Centres.

2003

Launch of Hindustan Lever Network; acquisition of the Amalgam Group

2005

Launch of "Pureit" water purifiers

2006

Brookefields food operations moved to Mumbai

[26]

Company name formally changed to Hindustan Unilever Limited after receiving 2007

the approval of share holders during the 74th AGM on 18 May 2007 Sales of Brooke Bond and Surf Excel each cross the Rs 1,000 crore mark

2008

HUL completes 75 years on 17th October 2008

[27]

ORGANISATION STRUCTURE

FACTORY MANAGER

QUALITY EXECUTIVE

SAFETY EXECUTIVE

1

1

FACTORY ENGINEER

HR MANAGER

QUALITY ASSISTANT 1

LAB ASSISTANT 1

MANUFACTURING

COMMERCIAL MANAGER

MANAGER

PRODUCTION EXECUTIVE

TECHNICAL EXECUTIVES

4

4

COMMERCIAL EXECUTIVES

HR EXECUTIVE

3

MECHANICAL-2 ELECTRICAL-1

COMMERCIAL ASSISTANT

WORKMEN 33

2

FITTERS/ELECTRICIAN/ TECHNICIANS

STORE INCHARGE

6

1

[28]

MISSION & VISION MISSION Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. Unilever's mission is to add Vitality to life. We meet everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.

VISION: To earn the love and respect of India by making a real difference to every Indian

[29]

PERFORMANCE IMPROVEMENT People will do always that work what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus: Job performance =f (ability) (motivation) Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation. The strategies for motivation. •Positive reinforcement / high expect •Effective discipline and punishment •Treating people fairly •Satisfying employees needs •Setting work related goals •Restructuring jobs •Base rewards on job performance There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to or otherwise motivated to do. Essentially, there is a gap between an individual’s actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap.

[30]

PRODUCT The company has a distribution channel of 6.3 million outlets and owns 35 major Indian brands. Some of its brands include Kwality Wall's ice cream, Lifebuoy, Lux, Breeze, Liril, Rexona, Hamam, Moti soaps, Pureit Water Purifier, Lipton tea, Brooke Bond tea, Bru Coffee, Pepsodent and Close Up toothpaste and brushes, and Surf, Rin and wheel laundry detergents, Kissan squashes and jams, Annapurna salt and atta, Pond's talcs and creams, Vaseline lotions, Fair & Lovely creams, Lakmé beauty products, Clinic Plus, Clinic All Clear, Sunsilk and Dove shampoos, Vim dishwash, Ala bleach and Domex disinfectant.Rexona,Modern Bread and Axe deosprays

Leadership HUL has produced many business leaders for corporate India, one of these, Manvinder Singh Banga has become a member of Unilever's Executive (UEx). HUL is referred to as a 'CEO Factory' in the Indian press for this reason. It's leadership building potential was recognized when it was ranked 4th in the Hewitt Global Leadership Survey 2007 with only GE, P&G and Nokia ranking ahead of HUL in the ability to produce leaders with such regularity.

[31]

[32]

BRANDS-FOODS TEA In a nation of tea drinkers, the one brand that signifies tea in India is Brooke Bond – ever since the launch of Brooke Bond Red Label in 1903. It is India's single largest tea brand. It has touched millions of consumers with a range of tea offerings appealing to the diversity of their tastes.It has the strongest foothold amongst any of the tea brands in India and touches the homes of over 500 million consumers. To de-commoditise the tea category, Brooke Bond is focusing its efforts on building four powerful sub-brands, namely, Brooke Bond Taj Mahal, Brooke Bond Red Label, Brooke Bond Taaza & Brooke Bond 3 Roses. The range offers a full variety of propositions as well as price points to appeal to various sections.

LIPTON Lipton, the world's largest selling tea brand, is an iconic brand for the youth through both its hot and cold formats. Lipton Yellow Label is Unilever's global tea brand and sells in many countries across the world, with tea bags, packet tea and Lipton Ice Tea. Lipton Ice Tea, the international ice tea drink, is available in India in Lemon and Peach flavours. It is available in 250 ml glass bottles, 200 ml vending cups, 245 ml cans and one litre tetra packs. The company has created an alliance with Pepsi to market, sell and distribute Lipton Ice Tea. The company itself has over 15,000 vending machines. The alliance will further strengthen the out-of-home consumption of tea and coffee.

[33]

Present Stature Hindustan Unilever Limited (HUL) is India's largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tonnes and sales of nearly Rs.13718 crores. HUL is also one of the country's largest exporters; it has been recognised as a Golden Super Star Trading House by the Government of India. The mission that inspires HUL's over 15,000 employees, including over 1,300 managers, is to "add vitality to life." HUL meets everyday needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life.. The rest of the shareholding is distributed among 360,675 individual shareholders and financial institutions. HUL's brands - like Lifebuoy, Lux, Surf Excel, Rin, Wheel, Fair & Lovely, Pond's, Sunsilk, Clinic Plus, Pepsodent, Close-up, Lakme, Brooke Bond, Kissan, Knorr-Annapurna, Kwality Wall's – are household names across the country and span many categories - soaps, detergents, personal products, tea, coffee, branded staples, ice cream and culinary products. They are manufactured over 40 factories across India. The operations involve over 2,000 suppliers and associates. HUL's distribution network, comprising about 4,000 redistribution stockists, covering 6.3 million retail outlets reaching the entire urban population, and about 250 million rural consume

[34]

CHAPTER - 4 THEORETICAL BACKGROUND

[35]

MOTIVATION OVERVIEW Rensis Likerthas called motivation as the core of management. Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force .It is the major task of every manager to motivate his subordinate or to create the will to work among the subordinates .It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work .creation of a will to work is motivation in simple but true sense of term.

Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization. Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them.

Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively. In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction.

If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization .There will be better utilization of resources and workers abilities and capacities

The concept of motivation The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned.

[36]

Motive can be known by studying his needs and desires. There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time.

In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior.

What is motivation?

AROUSE A PURPOSI VE BEHAVIO R TO ACHIEVE UNMET NEED

GIVE BEHAVIOR PURPOSE & DIRECTION

PSYCHOLO GICAL PROSS

WILL TO ACHIEV E

INTERNEL DRIVE TO SATISFY AN UNSATISFIE D NEED

Definition of Motivation According to Edwin B Flippo, “Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward.” “The inner force that derives Individuals to accomplish personal & organizational goals” According

to encyclopedia,” Motivation is the internal condition that

activates behavior and gives it direction; energizes and directs goal-oriented [37]

behavior”. The term is generally used for human motivation but, theoretically, it can be used to describe the causes for animal behavior as well. This article refers to human motivation. “Motivation is not the same thing as enthusiasm When you have no enthusiasm, When you are discouraged, When things look bleakest, & You still take action towards your goal is Motivation”

DIRECTIN INTENSITI

PERSISTEN CE

MOTIVATION Significance of Motivation One of the most important factors that lead one to their goals is the drive. This drive is known as motivation. It is a zest and determination with a kind of excitement that leads one to persevere to reach greater heights, in no matter what avenue of their life; be it – personal or professional. The drive may come from an internal or external source. The individual determines this.

The factors that motivate an individual keep changing as one climbs the ladder of age and maturity. And also, achievement of one goal sets the ball rolling for another one to be achieved. Thus, to be motivated is a constant need. There are

[38]

times when one faces a period of de-motivation and everything seems bleak. It is then that they need to find what would motivate them back into action.

For every individual there is a variable driving force. In fact, it is not just a single factor, but a combination of factors that lead people to achieve their goals. The fact is that with routine monotony steps in and then everything seems like stagnant waters. It feels like there is nothing new.

Breaking this cycle of monotony has helped many bounce back with enthusiasm. This is why human resource managers create a training calendar, which will take away employees from the routine they are stuck to, as well as enhance their skills in various areas.

PROCESS OF MOTIVATION

[39]

Theories of Motivation The following motivation theories are often applied to increase productivity in construction projects:

Theory of Maslow (1954) based on hierarchy of human needs

Two-factor Theory of Herzberg et al. (1959) based on hygiene factors and job enrichment Factors. workers Theory X and Theory Y of McGregor (1960) based on ways of perceiving

Expectancy theories of Vroom (1964) and Lawler (1973) McClelland’s Achievement Need Theory.

Behavioral Modification Theory.

Abraham H Maslow Need Hierarchy Or Deficient theory of Motivation.

The intellectual basis for most of motivation thinking has been provided by behavioral scientists, A.H Maslow and Frederick Heizberg, whose published works are the “Bible of Motivation” . Although Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslow’s theory to interpret specific problems in personnel administration and industrial relations. The crux of Maslow’s theory is that human needs are arranged in hierarchy composed of five categories.

The lowest level needs are physiological and the highest levels are the self actualization needs. Maslow starts with the formation that man is a wanting animal with a hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of values.

[40]

As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard economic theory of diminishing returns.

The hierarchy of needs at work in the individual is today a routine tool of personnel trade and when these needs are active, they act as powerful conditioners of behavior- as Motivators.

Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs, social needs, ego needs and self actualization needs, as shown in order of their importance

SELF ACTUALIZATION NEED

Higher needs

EGO NEED

SOCIAL NEED

SAFETY NEED lower needs PSYCOLOGICAL NEED

The above five basic needs are regarded as striving needs which make a person do things. The first model indicates the ranking of different needs. The second is more helpful in indicating how the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how the number of person who has experienced the fulfillment of the higher needs gradually tapers off.

[41]

Physiological or Body Needs: The individual move up the ladder responding first to the physiological needs for nourishment, clothing and shelter. These physical needs must be equated with pay rate, pay practices and to an extent with physical condition of the job. Safety: The next in order of needs is safety needs, the need to be free from danger, either from other people or from environment. The individual want to assured, once his bodily needs are satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety needs may take the form of job security, security against disease, misfortune, old age etc as also against industrial injury. Such needs are generally met By safety laws, measure of social security, protective labor laws and collective agreements.

Social needs: Going up the scale of needs the individual feels the desire to work in a cohesive group and develop a sense of belonging and identification with a group. He feels the need to love and be loved and the need to belong and be identified with a group. In a large organization it is not easy to build up social relations. However close relationship can be built up with at least some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is not an alien facing a hostile group.

Ego or Esteem Needs: These needs are reflected in our desire for status and recognition respect and prestige in the work group or work place such as is conferred by the recognition of ones merit by promotion, by participation in management and by fulfillment of workers urge for self expression. Some of the needs relate to ones esteem e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this means praise for a job but more important it means a feeling by employee that at all times he has the respect of

his

supervisor as a contributor to the organizational goals.

Self realization or Actualization needs:This upper level need is one which when satisfied provide insights to support future research regarding strategic guidance for organization that are both providing and using reward/recognition programs makes the employee give up [42]

the dependence on others or on the environment. He becomes growth oriented, self oriented, directed, detached and creative. This need reflects a state defined in terms of the extent to which an individual attains his personnel goal. This is the need which totally lies within oneself and there is no demand from any external situation or person

Two-factor Theory of herzberg et al. (1959) based on Hygiene factor The two factor theory also called “motivation hygiene theory” was proposed by psychologist Frederick Herzberg .This theory relates intrinsic factor to job satisfaction ,while associating extrinsic factors with dissatisfaction Intrinsic factor, such as advancement, recognition, responsibility and achievement seems to be related to job satisfaction, respondent who felt good about their work tended to attribute these factors to themselves. however dissatisfied respondents tended to cite extrinsic factors ,such as supervision, pay ,company policies and working conditions. According to Herzberg the factors leading to job satisfaction are separate and distinct from those lead to job dissatisfaction therefore managers who seek to eliminate factors that can create job dissatisfaction may bring about peace but not necessarily motivation. They will be placating their workforce rather than motivating them.as a result ,conditions surroundings the job such as quality of supervision, pay, company policies, physical working conditions, relations with others, and job security were characteristic by herzberg as hygiene factor.

WORKERS Theory X and Theory Y of McGregor 1960 based on ways of perceiving McGregor (1960) postulates Theory X and Theory Y based on extreme assumptions about People and work.

[43]

THEORY X Individuals inherently dislike work and whenever possible, will attempt to avoid it.

Employees dislike the work, they must be coerced, controlled, or threatened with punishment to achieve goal.

Employees will avoid responsibilities.

.People prefers to be directed.

THEORY Y People view work as being as natural as play and rest

People will exercise self direction and control towards achieving objectives they are committed to the objectives.

People learn to accept and seek responsibility.

The ability to make innovative decisions.

Expectancy theories of Vroom (1964) and Lawler (1973) The expectancy theories of Vroom (1964) and Lawler (1973) are regarded by

Maloney

(1986) Vroom’s theory is based on the belief that employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). Reward may be either positive or negative. The more positive the reward the more likely the employee will be highly motivated. Conversely, the more negative the reward the less likely the employee will be motivated

The most useful approach to analyzing the three important variables (the individual, the job and the work environment) that affect motivational schemes, in particular, in the use of incentives in construction projects.

To relate performance and motivation in mathematical form, Vroom (1964) expresses performance (P) as a function of the product of motivational force (M) and workers’ ability (A). [44]

That is

P = MA

These probabilistic models are useful in motivation programs to evaluate the morale of employees in construction projects.

McClelland’s Achievemenent Need Theory. According to McClelland’s there are three types of needs; Need for Achievement (n Ach); This need is the strongest and lasting motivating factor. Particularly in case of persons who satisfy the other needs. They are constantly pre occupied with a desire for improvement and lack for situation in which successful outcomes are directly correlated with their efforts. They set more difficult but achievable goals for themselves because success with easily achievable goals hardly provides a sense of achievement.

Need for Power (n Paw) It is the desire to control the behavior of the other people and to manipulate the surroundings. Power motivations positive applications results in domestic leadership style, while it negative application tends autocratic style. Need for affiliation (n Aft) It is the related to social needs and creates friendship. This results in formation of informal groups or social circle.

Behavioral Modification Theory; According to this theory people behavior is the outcome of favorable and unfavorable past circumstances. This theory is based on learning theory. Skinner conducted his researches among rats and school children. He found that stimulus for desirable behavior could be strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this theory may be found in the installation of financial and non financial incentives. More immediate is the reward and stimulation or it motivates it. Withdrawal of reward incase of low standard work may also produce the desired result. However, researches show that it is generally more effective to reward desired behavior than to punish undesired behavior. [45]

Types of Motivation There are various types of motivations that can influence a person. These include the following: Primary or Basic Motivation

This mainly pertains to motives involved with our need for self-preservation. This includes needs such as hunger and thirst, warmth, sex, avoidance of pain and other primary motives which influence a person's behavior at a very basic level.

Secondary Motivation

More known in psychology as "learned" motivation, this type of "drives" differ from one person to another. In many ways they involve a person's own sense of values and priorities in life.

Many of the behavior derived from secondary motivation are conscious ones. That is, a person consciously desires a particular goal or result, and behaves in a way that brings them closer to that particular goal. What drives them to do something or to act in a particular way is the longing for something which they currently do not have or possess.

This kind of motivation generally falls into two basic types: intrinsic and extrinsic motivation.

Extrinsic MOTIVATION

Extrinsic motivation is likely to involve the concept of rewarded behavior. Thus, by engaging in a particular type of activity or behaving in a particular manner, you are "rewarded" by a desired end result.

For instance, you are motivated to save money for a vacation. Hence, you resist the urge to make impulsive purchases and in general become more discriminating in how you spend your money. After a time you find that you have a steadily growing amount of savings which you set aside. When you find that you have saved enough for that trip, you utilize

[46]

your savings for the intended purpose and go on vacation. The external motivation is the vacation, which is also the reward for your act of saving for it. Internal Motivation On the other hand, there are other less-visible types of motivation.

It would be a mistake to say that such behavior does not come without its own rewards. To be more precise, the end goal is not a visible or external thing, but more internal and psychological. The achievement of these goals - by itself also correctly seen as a reward - is in general not visible to other persons.

Thus, for instance, a student is motivated to get good grades (external motivation) or simply, he desires to know more about a particular subject (intrinsic motivation). Getting good grades is the reward visible to others. For the student, the fact that he has become an expert in a particular subject or lesson is also a psychological reward for his intrinsic desire to learn.

Successful Motivated Behavior

Good and effective actions or behavior usually involves the harmonizing of these two types of motivation. If one is driven by both intrinsic and extrinsic motivations, then inner conflict is reduced and a person is more likely to devote uninterrupted and harmonious actions towards a particular task.

The inner and external rewards too, are good reinforcing mechanisms. For many people, this is really the means towards success. By choosing goals that you desire - both in its intrinsic and extrinsic rewards - you can harmonize your own actions and devote your energies to your goals. In such instances, the chances of achievement increases greatly.

BENEFIT A financial or nonfinancial benefit is something which stimulates a person towards some goal. It activates human needs and creates the desire to work. Thus, an incentive is a means of motivation. In organizations, increase in incentive leads to better performance and vice versa.

Need of benefits [47]

Man is a wanting animal. He continues to want something or other. He is never fully satisfied.

If one need is satisfied, the other need arises. In order to motivate the employees, the management should try to satisfy their needs. For this purpose, both financial and non financial incentives may be used by the management to motivate the workers. Financial incentives or motivators are those which are associated with money.

They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators are those which are not associated with monetary rewards. They include intangible incentives like ego-satisfaction, self-actualization and responsibility

[48]

CHAPTER - 5 OBJECTIVE OF THE STUDY

[49]

OBJECTIVE OF THE SUTUDY PRIMARY OBJECTIVE To study the important factors which are needed to motivate the employees.

SECONDARY OBJECTIVE. To study the effect of monetary and non-monetary benefits provided by the organization on the employee’s performance. To study the effect of job promotions on employees. To learn the employee’s satisfaction on the interpersonal relationship exists in the organization. To provide the practical suggestion for the improvement of organization’s performance.

[50]

RESEARCH PROBLEM Problem here in this study is associated with the motivation of employees the research of HINDUSTAN UNILEVER LIMITED, Etah. There are a variety of factors that can influence a person’s level of motivation; some of these factors include problem here in this study is associated with the motivation of employees

1. Quality of the working conditions, 2.

Leadership and social relationships,

3. .Employee recognition 4.

Job security

5.

Career development opportunities.

6.

The level of pay and benefits,

7. .The perceived fairness of promotion system within a company

Motivated employees are a great asset to any organization. It is because the motivation and Job satisfaction is clearly linked.

Hence this study is focusing on the employee motivation in the organization. “What are the factors which help to motivate the employe

[51]

CHAPTER - 6 RESEARCH METHODOLOGY

[52]

RESEARCH METHODOLOGY Research is a systematic method of finding solutions to problems. It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford woody, “research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions, testing conclusions to determine whether they fit the formulated hypothesis” Sampling Design A sample design is a finite plan for obtaining a sample from a given population. Simple random sampling is used for this study. Universe The universe chooses for the research study is the employees of Hindustan Unilever Limited. Sample Size Number of the sampling units selected from the population is called the size of the sample. Sample of 40 respondents were obtained from the population.

Methods of Data Collection The data’s were collected through Primary and secondary sources Primary sources Primary data are in the form of “raw material” to which statistical methods are applied for the purpose of analysis and interpretations. The primary sources are discussion with employees, data’s collected through questionnaire. Secondary source Secondary data’s are in the form of finished products as they have already been treated statistically in some form or other. The secondary data mainly consists of data and information collected from records, company websites and also discussion with the management of the organization. Secondary data was also collected from journals, magazines and book Nature of Research About the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. Questionnaire [53]

A well defined questionnaire that is used effectively can gather information on both overall performance of the test system as well as information on specific components of the system. A defeated questionnaire was carefully prepared and specially numbered. The questions were arranged in proper order, in accordance with the relevance.

Nature of Questions Asked The questionnaire consists of open ended, dichotomous, rating and ranking questions. Pre-testing A pre-testing of questionnaire was conducted with 10 questionnaires, which were distributed and all of them were collected back as completed questionnaire. On the basis of doubts raised by the respondents the questionnaire was redialed to its present form. Sample A sample is a subset of the population. Sample is the process of selecting a sufficient number of elements from population. Studying a sample rather the entire population is sometimes to lead to more reliable results, mostly because fatigue is reduced, resulting in fewer errors on collection data. (Time, cost, human resources) Surveys are useful and powerful in finding answers to research question but if data are not collected from the people or objects that can provide the correct answers to solve the problem; the survey will be in vain.

Variables of the Study The direct variable of the study is the employee motivation Indirect variables are the incentives, interpersonal relations, career development opportunities and performance appraisal system. Presentation of Data The data are presented through charts and tables. Tools and Techniques for analysis. Correlation is used to test the hypothesis and draw inferences.

[54]

SCOPE FOR FUTURE RESEARCH The present study on employee motivation helps to get clear picture about the factors which motivates the employees. This in turn helps the management to formulate suitable policy to motivate the employees. Hence, the motivational level of the employees may also change.

The factors that motivate the employees may change with change in time because the needs of employees too change with change in time. So continuous monitoring and close observation of factors that motivate the employees is necessary to maintain a competent work force. Only with a competent work force an organization can achieve its objective. Moreover, human resource is the most valuable asset to any organization.

A further study with in dept analysis to know to what extent these factors motivate the employees is required

[55]

CHAPTER - 7 DATA ANALYSIS & FINDINGS

[56]

DATA ANALYSIS & FINDINGS DESCRIPTIVE STATISTICS HR DEPARTMENT PROVIDES SUPPORT TO THE ORGANISATION. SL NO

PARTICULAR

NUMBER

OF PERCEN

RESPONDENTS

TAGE

1

Strongly Agree

24

60

2

Agree

12

30

3

Neutral

4

10

4

Disagree

0

0

Total

40

100

NO OF RESPONDENTS 100

0

HIGHLYAGREE

AGREE NEUTRAL DISAGREE

NO OF RESPONDENTS

Fig No. 1 INTERPRETATION-The above table

shows that 60% of the employees are highly agreed

that HR department provides support to them.

[57]

‘

MOTIVATION HELP IN SATISFYING NEED OF AN EMPLOYEE :SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly Agree

20

50

2

Agree

8

20

3

Neutral

8

20

4

Disagree

4

10

Total

40

100

Fig No. 2 INTERPRETATION- The above table shows that 50% of the employees highly agree that motivation helps in satisfying needs of employees.

[58]

MOTIVATION CAN INCREASE THE EFFECTIVENESS AND EFFICIENCY OF AN EMPLOYEE SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS

40%

1

Strongly Agree

16

40

2

Agree

8

20

3

Neutral

12

30

4

Disagree

4

10

Total

40

100

20% 0%

Fig No. 3

INTERPRETATION- The above table shows that 40% of the employees are highly agree that motivation can increase the efficiency and effectiveness of the employees.

[59]

EMPLOYEE NEEDS PERSONAL PRAISE TIME TO TIME SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly Agree

24

60

2

Agree

8

20

3

Neutral

4

10

4

Disagree

4

10

Total

40

100 70 60 50 40 30 20 10 0

HIGHLY AG

Fig No. 4

INTERPRETATION- The above table shows that 60% of the employees are highly agree that personal praise is necessary time to time.

[60]

RELATIONSHIP EXIST BETWEEN REWARDS AND PERSONAL GOALS ACHIEVEMENT SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly agree

20

50

2

Agree

12

30

3

Neutral

4

10

4

Disagree

4

10

Total

40

100

NO OF RESPONDENTS 10% 10% 50%

HIGHLYAGREE AGREE

30%

NEUTRAL DISAGREE

Fig No. 5

INTERPRETATION – The above table shows that 50% of the employees are highly agree that there is relationship between rewards and personal goals.

[61]

INCENTIVES MOTIVATE THE EMPLOYEE SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly satisfy

28

70

2

Agree

8

20

3

Neutral

4

10

4

Disagree

0

0

Total

40

100

100

Fig No. 6

INTERPRETATION- The above table shows that 70% of the employees are highy agree that incentives motivates them.

[62]

TYPES OF INCENTIVES MOTIVAT THE EMPLOYEES MORE SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Financial

24

60

2

Nonfinancial

12

30

3

Both

4

10

Total

40

100 70 60

Axis Title

50 40 30 20 10 0

Fig No. 7

INTERPRETATION- The above table shows that 60% of the employees are highly motivated by financial incentives.

MOTIVATION WILL EFFECT THE PRODUCTIVITY

SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly Agree

20

50

2

Agree

12

30

3

Neutral

4

10

4

Disagree

4

10

Total

40

100

[63]

NO OF RESPONDENTS 50 0 NO OF RESPONDENTS

Fig No. 8

INTERPRETATION- the above table shows that 50% employees are highly agree that motivation increase the productivity.

[64]

SATISFACTION WITH PRESENT INCENTIVES SCHEME $ REWARDS SCHEME:SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly satisfy

24

60

2

Satisfy

8

20

3

Neutral

4

10

4

Dissatisfy

4

10

Total

40

100

NO OF RESPONDENTS 100

0 HIGHLYSATISFY

SATISFY

NEUTRAL DISSATISFY

NO OF RESPONDENTS

Fig No. 9

INTERPRETATION- the above table shows that 60% of the employees are highly satisfy with present incentive and reward scheme of the company.

[65]

SATISFACTION WITH JOB SECURITY EXISTING IN THE COMPANY:SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly satisfy

36

90

2

Satisfy

4

10

3

Neutral

0

0

4

Dissatisfy

0

0

Total

40

100

NO OF RESPONDENTS 100

50

0 HIGHLYSATISFY

SATISFY NEUTRAL

DISSATISFY

NO OF RESPONDENTS

Fig No. 10

INTERPRETATION- the above table shows that 90% of the employees are highly satisfy with job security existing in the company.

[66]

GOOD RELATION WITH CO-WORKERS SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly Agree

32

80

2

Agree

4

10

3

Neutral

4

10

4

Disagree

0

0

Total

40

100

HIGHLYAGREE

AGREE NEUTRAL DISAGREE

Fig No. 11 INTERPRETATION- the above table shows that 80%of the employees are highly agree that there exist good relationship among co-workers.

[67]

EFFECTIVE PERFORMANCE APPRAISAL SYSTEM SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly Agree

24

60

2

Agree

12

30

3

Neutral

4

10

4

Disagree

0

0

Total

40

100

NO OF RESPONDENTS 100 50 0 HIGHLY AGREE

AGREE NEUTRAL DISAGREE

NO OF RESPONDENTS

Fig No. 12

INTERPRETATION- the above table shows that 60% of the employees highly agree that There is effective performance appraisal system.

[68]

MANAGEMENT INVOLVES YOU IN DECISION MAKING WHICH ARE CONNECTED TO YOUR DEPARTMENT SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

YES

24

60

2

NO

8

20

3

OCCASIONALLY

4

10

Total

40

100

50 40 30 20 10 0

Fig No. 13

INTERPRETATION- The above table shows that 50%of the employees say that management involves them in decision making.

BENEFITS AND OTHER INCENTIVES INFLUENCE YOUR PERFORMANCE SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Influence

28

70

2

Does not influence

8

20

3

No opinion

4

10

[69]

Total

40

100

NO OF RESPONDENTS 70 60

50 40 NO OF RESPONDENTS

30 20 10 0 INFLUENCE

DOES NOT INFLUENCE

NO OPINION

Fig No. 14 INTERPRETATION- the above table shows that 70% of the employees are influenced by employee benefits.

[70]

GOOD SAFETY MEASURES EXISTING IN ORGANIZATION :SL NO

PARTICULAR

NUMBER

OF PERCENTAGE

RESPONDENTS 1

Highly Agree

24

60

2

Agree

8

20

3

Neutral

4

10

4

Disagree

4

10

Total

40

100

Fig No. 15 INTERPRETATION- The above table shows that 60% of the employees are highly agree that there is good safety measures exist in the organization.

[71]

FINDINGS The findings of the study are follows:The Hindustan Unilever Limited, Etah has a well defined organization structure. There is a harmonious relationship is exist in the organization between employees and management. The employees are really motivated by the management. The employees are satisfied with the present incentive plan and rewards scheme of the company. Most of the workers agreed that the company is eager in recognizing and acknowledging their work. The study reveals that there is a good relationship exists among employees. Majority of the employees agreed that there job security to their present job. The company is providing good safety measures for ensuring the employees safety. From the study it is clear that most of employees agrees to the fact that performance appraisal activities and support from the coworkers in helpful to get motivated. The study reveals that increase in the salary will motivates the employees more. The study reveals that motivation can affect the productivity of organization. The incentives and other benefits will influence the performance of the employees

[72]

CHAPTER - 8 LIMITATIONS

[73]

LIMITATION The limitations of the study are the following The data was collected through questionnaire. The responds from the respondents may not be accurate.

The sample taken for the study was only 40 and the results drawn may not be accurate.

Since the organization has strict control, it acts as another barrier for getting data.

Another difficulty was very limited time-span of the project.

Lack of experience of Research. The study concludes that, the motivational program procedure in HINDUSTAN UNILEVER LTD is found effective but not highly effective. The study on employee motivation highlighted so many factors which will help to motivate the employees. The study was conducted among 40 employees adopted in the present study is probability sampling, which is also known as chance sampling. Under this sampling design, every item of the frame has an equal chance of inclusion in the sample The human resources can play an important role in the realization of the objectives. Employees work in the organization for the satisfaction of their needs. If the human resources are not properly motivated, the management will not be able to accomplish the desired results. Therefore, human resources should be managed with utmost care to inspire, encourage and impel them to contribute their maximum for the achievement of the business objectives.

[74]

CHAPTER - 9 SUGGESTIONS

[75]

SUGGESTIONS The suggestions for the findings from the study are follows

COMMUNICATION: Organization should give importance to communication between employees and gain co-ordination through it which improve working style.

OPPOURTUNITIES: Better career development opportunities should be given to the employees for their improvement and effect ultimately on organization.

IMPLEMENTATION: On financial incentive plans should also be implemented; it can improve the productivity level of the employees.

SKILLS: Skills of the employees should be appreciated based on skilled and unskilled criteria

PERFORMANCE: Most of the employees agree that the performance appraisal activities are helpful to get motivated, so the company should try to improve performance appraisal system, so that they can improve their performance

MANAGEMENT: If the centralized system of management is changed to a decentralized one, then there would be active and committed participation of staff for the success of the organization.

COOPERATION AND COORDINATION: In the organization, there should be proper cooperation and coordination among employees and employers.

COUNSELLING: Better career development opportunities should be given to the employees for their improvement and effect ultimately on organization working.

[76]

CHAPTER - 10 CONCLUSION

[77]

CONCLUSION

Collected information through structured questionnaire. The study helped to findings which were related with employee motivational programs which are provided in the organization. The performance appraisal activities really play a major role in motivating the employees of the organization. It is a major factor that makes an employee feels good in his work and results in his satisfaction too. The organization can still concentrate on specific areas which are evolved from this study in order to make the motivational programs more effective. Only if the employees are properly motivated- they work well and only if they work well the organization is going to benefit out it. Steps should be taken to improve the motivational programs procedure in the future. The suggestions of this report may help in this direction’s part of the During my study I found that SPRL considers its employees organization and is ready to do everything for the benefit of its employees without paying any heed to the amount a spent. Through health check up

camps,

suggestion scheme ,Get together ,giving Award and Rewards to their children and families and to them company ensures full participation of employees and thus motivating them which is clearly shown with the continuous growth of the company. It also realize it responsibility towards society which is reflected various Community Development Programs it organize.

[78]

CHAPTER - 11 BIBLIOGRAPHY

[79]

BIBLIOGRAPHY BOOKS 1. KOTHARI CR, RESEARCH METHODOLOGY, ,New Age International Publishers,2ND Revised edition 2012 2. RAO VSP, HUMAN RESOURCE MANAGEMENT, Excel books, 8thEDITION 2008 3. FLIPPO EDWIN B, PERSONAL MANAGEMENT,McGraw-Hill,3RD Rev EDITION 3RD Rev EDITION,1971 4. PRASAD LM,PRINCPLES & PRACTICE OF MANAGEMENT,SULTAN CHAND & SONS,2009

WEBSITE www.hul.co.in. www.businessstandard.com

[80]

CHAPTER - 12 APPENDICES

[81]

QUESTIONNAIRE

1. DO YOU AGREE THAT HR DEPARTMENT SUPPORT THE EMPLOYEE? A. HIGHLY AGREE B. AGREE C. NEUTRAL D. DISAGREE

2. DO YOU THINK THAT MOTIVATION HELP IN SATISFYING THE NEED OF AN EMPLOYEE? A. HIGHLY AGREE B. AGREE C. NEUTRAL D. DISAGREE

3. ARE U AGREE THAT MOTIVATION CAN INCREASE THE EFFECTIVENESS AS WELL AS EFFICIENCE OF AN EMPLOYEE ? A. HIGHLY AGRE B. AGREE C. NEUTRAL D. DISAGREE

4. DO EMPLOYEE NEED PERSONAL PRAISE TIME TO TIME? A. HIGHLY AGREE B. AGREE C. NEUTRAL D. DISAGREE

5. IS THERE ANY RELATIONSHIP EXIST BETWEEN REWARDS AND PERSONAL GOAL ACHIEVEMENT? A. HIGHLY AGREE B. AGREE C. NEUTRAL D. DISAGREE

[82]

6, ARE YOU SATISFYING THAT INCENTIVES MOTIVATE EMPLOYEES? A. HIGHLY SATISFY B. SATISFY C. NEUTRAL D. DISSATISFY 7, WHICH TYPE OF INCENTIVES MOTIVATES THE EMPLOYEES MORE? A. FINANCIAL INCENTIVES B. NON FINANCIAL INCENTIVES C. BOTH

8 , DO YOU AGREE THAT MOTIVATION WILL EFFECT THE PRODUCTIVITY? A. HIGHLY AGREE B. AGREE C. NEUTRAL D. DISAGREE 9, UPTO WHAT EXTENT YOU ARE SATISFIED WITH THE COMPANY INCENTIVES & REWARD SCHEME? A. HIGHLY SATIFY B. SATISFY C. NEUTRAL D. DISSATISFY 10, ARE YOU SATISFIED BY JOB SECURITY EXISTING IN THE COMPANY? A. HIGHLY SATISFY B. SATISFY C. NEUTRAL D. DISSATISFY 11, DO YOU HAVE GOOD RELATION WITH THE CO_WORKER? A. HIGHLYAGREE B. AGREE C. NEUTRAL D. DISAGREE [83]

12, IS THE PRESENT PERFORMANCE APPRAISAL SYSTEM EFFECTIVE FOR THE EMPLOYEE? A. HIGHLY AGREE B. AGREE C. NEUTRAL D. DISAGREE 13, WHETHER THE MANAGEMENT INVOLVES YOU IN DECISION MAKING WHICH ARE CONNECTED TO YOUR DEPARTMENT? A. YES B. NO C. OCCASIONLLY

14, DO YOU THINK THAT INCENTIVES AND OTHER BENEFITS WILL INFLUENCE YOUR PERFORMANCE? A. INFLUENCE B. DOES NOT INFLUENCE C. NO OPINION 15

DO YOU AGREE WITH SAFETY MEASURES EXISTING IN THE ORGANIZATION? A. HIGHLYAGREE B. AGREE C. NEUTRAL D. DISAGREE

[84]