Summer Internship Project Report

On

“A Study on Effectiveness of Reward and recognition of employees in the organization”

At
Magnetic Engineering

Submitted to
Institute Code: 123
C K SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT

Under the Guidance of

Faculty Guide Company Guide

Dr. Ranjita Banerjee Mr. Nikunj Patel
Associate prof. Director

In partial Fulfillment of the Requirement of the award of the degree of

Master of Business Administration (MBA)
Offered By
Gujarat Technological University
Ahmedabad

Prepared by:
Patel Dhara
187050592062
MBA (Semester ‐ III)
Month & Year:
July 2019
 Student’s Declaration

I hereby declare that the Summer Internship Project Report titled in Magnetic Engineering is a result of
my own work and my indebtedness to other work publications, “A study on effectiveness of Reward and
Recognition of employees in the organization” references, if any, have been duly acknowledged. If I am
found guilty of copying from any other report or published information and showing as my original work, or
extending plagiarism limit I understand that I shall be liable and punishable by the university, which may
include “Fail” in examination or any punishment that university may decide.

Enrollment no. Name Signature

Place: Date:
 CERTIFICATE OF EXAMINER

This is to certify that project work embodied in this report entitled “A study on impact of reward and
recognition of employee in organization” was carried out by Patel Dhara and Enrollment no.
187050592062 of C K SHAH VIJAPURWALA INSTITUTE OF MANAGEMENT & Institute code
123.

The report is approved / not approved. Comments of

External Examiner

This Report is for partial fulfillment of the requirement of the award of the degree of Master of Business
Administration offered by Gujarat Technological University.

Examiner’s sign
 Table of Contents

I. Preface
II. Acknowledgement
III. Executive Summary

Sr No. Particular PAGE NO.

1 PART 1 – GENERAL INFORMATION
1.1 About the industry
1.2 History And Evaluation
1.3 World market
1.4 India Market
1.5 Growth of the Industry
2 2.1 About the Company
2.2 About Major Companies in the Industries
3 3.1 Product Profile
Part 2 – Primary Study
4 4.1 Introduction of the Study
4.2 Literature Review
4.3 Background Of The Study
4.4 Objectives Of Study
5 5.1 Research Design
5.2 Sources of Data
5.3 Data collection method
5.4 Data collection Instrument
6 Data analysis and interpretation
7 Results and findings
8 Limitations of study
9 Conclusion
 PREFACE

This project reports attempt to bring under one cover the entire hard work and dedication put forward by us
for the completion of the project work on all the subjects which can related to topics in ‘Magnetic
Engineering’. As it is all base on theoretical aspects and practical aspects are written in the report.
 ACKNOWLEDGEMENT

I would like to express our sincere thanks to our parents and god to give us such strength to study.
Teachers of CKSVIM who stood with us for support, encouragement and guidance which helped us to
understand the scenario in better way and helped to fulfill our objectives successful.
I would like to thank our director Dr. Rajesh Khajuria to give us good opportunity to enhance our practical
knowledge.
I would be thankful to our company guide Mr. Nikunj Patel & Faculty guide Dr. Ranjita Banarjee.
I would also like to thank all my friends who helped us in finding necessary information and provided their
guidance and support.
 Executive summary

This project is done on the practical schedule of Summer Internship Project Report
of for the fulfillment of MBA. Including all the subjects in mind. Have studied in the
‘Magnetic Engineering’ where in it’s a small firm located at POR GIDC. This report
shows the relation of some topics which are interesting in all the subjects shows how
Company are using those into practical schedule.
 1. Part I : GENERAL INFORMATION

1.1 About the Industry

The Electric industry covers the generation, transmission, distribution, and sale of electric equipments to
the various industries. By the middle of 20th century electricity was seen as natural monopoly, only few
numbers of organizations participated in market as per government rules and regulations. Since 1990s, many
industries are broken up the generation and distribution of electric equipments to provide more competitive
electricity market.

1.1 World Market

1.2 Indian Market :

1.3 Growth of the industry :

 2.1 About the company

Magnetic engineering is a transformer manufacturing company in India. The company is offering distribution
transformers and power transformer. Their manufacturing plant is located at Por GIDC in Vadodara.
Magnetic engineering was established in the year 2011 in Vadodara. The company was jointly promoted by the
families of Nikunj V Patel and Virendra K Patel to manufacture transformers. In the year 2011, they
commenced manufacture of transformer up to 10,000 Kilo volt, 66 Kilo volt for industrial clients. In the
year2011, the company commenced manufacture of 132 Kilo watt Class Transformer and in The year 2012,
they started manufacture of 50 Megavolt amps, 132 Kilo watt Class Power Transformers. The company
Increased the installed capacity to 5600 Megavolt amp in the financial Year 2015-16. During the year 2016-17,
the company increased the manufacturing capacity from 5600 Megavolt amp to 7400 Megavolt amp.
During the year 2017-18, the company made their investment in into overall installed capacity getting increased
from 7400 Mega Volt amp to 9000 Megavolt amp.

2.2 About major Companies in the Industry

One of the most important components of the growth of the economy in India is the
electronics industry. There is a massive need for products produced by electronics
companies. There is an enormous growth in the many research and development
departments seeking to create new and better performing electronic products.
Listed below are the best organizations occupied with assembling and supply of
Transformer and has endless involvement in designing, manufacturing, engineering and
advancement of the Transformers.

1. ABB India
The corporate office is situated in the city of Bangalore, Karnataka. It was set up in the year 1889 and is
included in the business of power and LV items. It is the main transformer maker in India which is
headquartered in Bangalore. It offers to you an extensive variety of power and distribution transformers
alongside fluid field and dry sort transformers. The organization has conveyed more than 14,500 power
transformers starting at this point. It has various assembling units in Pan India and all are outfitted with
advanced technology.

2. Siemens India :

The corporate office is situated at Mumbai, Maharashtra and was set up in the year 1867. Siemens Group
contains up to 13 organizations in India and has more than 21 fabricating plants. The organization is a world
pioneer in gadgets and electrical equipments and it works in more than 100 nations and supplies different
sorts of transformers the whole way across the globe.

3. Alstom T&D India :

Alstom is a worldwide pioneer in the field of Transformer Manufacturing. The corporate office is situated at
Noida. Alstom was built up in 1911 in Kolkata, West Bengal. Alstom is having a rich involvement in
Transformer producing and has provided various Transformers to national and global clients. The
organization is dependable and trusted name in transformer industry in India with generation limit of 130000
MVA. It has showcasing workplaces in all the metro urban communities of India

4. Transformers & Rectifiers India Ltd :

The corporate office is located in Gujarat and was built up in the year 1994. It manages the matter of
transformers and reactors. It is an extremely popular name in the business of transformer and is likewise one
of the main transformer producers in India. It is set up in the year 1994 and has more than 30 years of
experience. Its driving assembling plant is situated in Ahmadabad and equipped with present day machines.
The organization is ISO 9001 &14001 &BS OHSAS 18001 certified and has various customers crosswise
over Canada and United States.

5. Kirloskar Electric Company Limited :

Kirloskar Electric Company Limited corporate office is situated at Bangalore, Karnataka. It was built up in
1946 and give fantastic services to customers for more than 50 years. Organization portfolio has more than
70 items that make crosswise over 9 fabricating units crosswise over India. More than 15000 Transformers
items have been so far provided in India.
2.1 Introduction of the Study

The general objective of the research was to study the effectiveness of rewards and recognition on
employee motivation. And the specific objectives were to identify the most effective means of rewards
and recognition, to study the behavioral differences between appreciated and non-appreciated
employees, to understand the extent to which motivation enhances employee's performance, to identify if
the motivation has an effect on individual and organizational growth and to study if rewards and
recognition results in emotional conflicts between employees. The descriptive research design was
adopted for this study. Various employees from the companies were the respondents. It is evident from
the study that a variety of factors influence employee motivation and satisfaction. It was also significant
to discover that there is a direct and positive relationship between rewards and recognition and job
satisfaction and motivation. Hence, if rewards and recognition offered to employees were to be altered,
then there would be a corresponding change in work motivation and satisfaction. The direct translation
of this could be that the better the rewards and recognition, the higher the levels of motivation and
satisfaction, and possibly therefore, the greater the levels of performance and productivity. In the event
of major inconsistencies, especially for emotional conflicts between performers and non performers, the
organization should make an effort to reassess and rectify this situation. In the event that the
organization does not reassess this situation, it could have a resultant negative impact on job
performance and productivity as well as on the retention of minorities. In accordance with Maslow's
hierarchy of needs, the lower level needs such as salary and benefits must first be met before the higher
level needs, which impacts motivation can be satisfied. The research study has shown that managers can
employ different strategies to motivate employees, but that it is important that managers keep in mind
that different strategies would have a different motivational impact on different people. To get optimum
results from a motivational strategy, the manager has to realize and understand issues, which requires
recognition of each individual's unique values, beliefs and practices.
 1. Introduction :
As manpower constitute the core of any business and ultimately employees are the main focus of human
resource management, with the constant changes occurring in the world today, especially with regards to
technology and innovation, there is a need for companies to reassess the manner in which they communicate
to their employees which would increase their morale and will act as a driving force towards an integrated
workforce. Thus, apart from financial compensations there are other means to reward employees, some of
which include the praise that employees are able to acquire from their managers, the opportunity to take on
important projects or tasks, and even leadership attention which helps them climb Maslow's pyramid of
needs to attain motivation for better performance.

Employee recognition is a judgment on a worker's contribution, in terms of the work process as well as
dedication and motivation It also involves evaluating and acknowledging the results of this work In short, it
looks at the unique contribution of each worker and stresses the value of his or her professional expertise
and experience By creating a culture of recognition, employees become more engaged employees are happy,
loyal, and productive Everyday there is an opportunity to recognize someone for their service without
spending a lot of money Informal rewards are the icing on the cake that keeps employees motivated,
engaged and coming back for more But it is also essential to study and understand the extent workforce
considering all the positive and negative effects appreciations have on individual and organizational growth.

The primary need of the study is to introduce innovative methods of appreciations for employees. The study
would help companies frame newer employee engagement programs.

6. Conceptual Definition :

Reward: Jack Zigon defines rewards as "something than increases the frequency of an employee action".

Recognition: It is constructive. Genuine feedback based on acknowledging people as Sincere, Worthy of

respect, having needs and equipped with their own personal expertise.
7. Operational Definition :

Reward: A formal, impartial, and equitable exchange. A material or financial expression of appreciation
that is conditional on results.
Recognition: A relationship between two or more people Recognition is a return on an employee's effort
and dedication at work, as well as his or her results.
 2.2 Literature Review:

An organization in present day’s environment requests to determine the sensible balance between
employee satisfaction and work commitment and performance of the organization.
Oosthuizen (2001) says that it is one of the functions of managers to motivate the employees successfully
and influence their behavior to achieve greater organizational efficiency.
Lawler (2003) argued that affluence and endurance of the organizations is definite through human resources
and how they are treated. There are two factors which determine how much a reward is attractive, first is
the amount of reward given which is given and second is the influence of certain reward in the
individual.
Morris (2004) says that in today’s dynamic environment the highly motivated employees serve as a synergy
for accomplishment of company’s goals, business plans, high efficiency, growth and performance.
Motivation is also required when the organizational workforce has no good relationship pattern.
Employee’s relationship with another employee and with supervisor is a key ingredient of the inner
strength of the organization. The ability of supervisors to provide strong leadership has an effect on job
satisfaction of employees. Eastman (2009) researched and consistently found that intrinsic motivation is
conductive to producing creative work, while extrinsic motivation is unfavorable to producing creative
work.
Gagne (2009) suggested a new model of knowledge sharing motivation which provides suggestion for
designing five important human resource management (HRM) practices including staffing, job design,
Performance and compensation systems, managerial styles and training.
Yanhan Zhu (2012) state that job satisfaction is an academic idea in his study. Now-a-days organizations are
focused on management, psychological factor and practical operation. In this research they discuses the
measurement of job satisfaction in several model. They analyzed and discussed the achievement of
satisfaction level and mentioned a model to describe the performance of employee.
Abdulwahab S. Bin Shmailan (2016) analyzed in their research, about the factors that contribute to job
satisfaction. Every successful organization should know the job satisfaction, employee performance and
employee engagement which is very vital. Employee performance and satisfaction are related to the
business improvement. This is an another key success factor for the organization which would help to
understand the performance as well as job satisfaction and employee performance using the power to be
competitive and profitable.