“ REWARD SYSTEM – AN EFECTIVE

MOTIVATIONAL TOOL”

(A CASE STUDY ON ICICI BANK IN BENGALURU CITY)

A PROJECT REPOERT

Submitted in partial fulfillment of the

requirements of MBA programme of

Periyar University

BY:

MR. SHWETASAIBAL SAMANTASAHOO

REG NO: 06DBIA3091

UNDER THE GUIDANCE OF:

PROF. N MEENA RANI

MBA, M.Phil, (PhD)

Faculty-PG Dept. of Commerce, S. Nijalingappa College, Bengaluru

PERIYAR INSTITUTE OF DISTANCE EDUCATION

PERIYAR UNIVERSITY

SALEM-636011

YEAR: 2009

Periyar Institute of Distance Education (PRIDE)

Periyar University, Salem-636011________________________________________________________________________

Certificate

This is to certify that the project entitled “Reward System- An Effective

Motivational Tool” is a bonafide work done by Mr. Shwetasaibal Samantasahoo

bearing Reg. no. 06DBIA3091, during the year 2009 submitted to the Periyar Institute of

Distance Education (PRIDE), Periyar University in Partial of the requirement for the

award of the Degree of. “Master of Business Administration”. This project is as a

result of his independent project work and has not been previously submitted for award of

any Degree, Diploma, Associate ship, Fellowship or similar title to any candidate of any

University/ Institution.

Signature of the Candidate Signature of the Supervisor

Signature of the Co-ordinator

Prof. N Meena RaniFaculty-PG Department of CommerceKLE’s. S. Nijalingappa College,Bengaluru-560010________________________________________________________________________

Certificate from the

Supervisor

This is to certify that the Project Report entitled “Reward System- An

Effective Motivational Tool” is a bonafide work done by Mr. Shwetasaibal

Samantasahoo bearing Reg. no. 06DBIA3091, a student of Periyar University,

Salem, under my guidance and supervision. The project has been carried out as partial

fulfillment of his M.B.A Degree course.

This project is as a result of his independent project work and has not been previously

submitted for awards of any Degree, Diploma, Associate ship, Fellowship or similar

title to any candidate of any University/ Institution.

I wish him all the success in future endeavors.

Place: Bengaluru Supervisor

Date:

Declaration

I hereby declare that this Project Report entitled “Reward System- An

Effective Motivational Tool” submitted in partial fulfillment of the requirement of

award of degree of Masters of Business Administration (MBA) is my original

work, under the guidance and supervision of Prof. N Meena Rani. The findings and

suggestions given are based on the data collected by myself. So, I confidently declare

that this is not duplication, and it has not been previously submitted for the award of

any other Degree, Diploma, Associate ship, Fellowship or other similar title or prizes

to any candidate of any University / Institution.

Place: Bengaluru Mr. Shwetasaibal Samantasahoo

Date: Reg. No.06DBIA3091

Acknowledgement

I am grateful to Prof. Nagendra Nath Giri, Principal, SSR College and Co-

ordinator of PRIDE, Bengaluru Study Center for his valuable guidance and

encouragement in bringing out this Project Report

I am thankful to the Management and staff of ICICI Bank, Bengaluru for

giving me the opportunity to complete my project in a healthy and co-operative

atmosphere.

I feel it is a great pleasure to express my deep sense of indebtness profound thanks to

my project guide Prof. N Meena Rani for her continuous encouragement and

unrelenting assistance which helped me to complete the project successfully

Place: Bengaluru Mr. Shwetasaibal Samantasahoo

Date: Reg. No.06DBIA3091

Preface

The project was undertaken keeping in view the employee’s motivation and

retention factors. As we all are familiar that now-a-days retention is the major factor

which every organization is confronting. Retention is not only the factor but retaining the

competent staff is the basic problem. Apart from retention, the motivational factor is

another important factor which can’t be ignored. The retained employees if not motivated

then organization is not making a fair deal with their capabilities and performance. In this

study the main emphasis is on motivational related factors. The motivation is one of the

key factor which helps the employees in using their capabilities to their fullest. So there

are many factors for motivating the employees but reward is one of the important factors

which plays a vital role in motivating the employees. In lieu of this factor the project

“Reward System was undertaken.

The reward system is basically used to motivate the employees for better performance

by offering them rewards; and allows for focus on all the levels in the organization.

The main objective is to study about the reward system used in the organization, which

type of rewards are to be more emphasized, how to motivate the employees in the

organization and how reward system put an impact on the behaviour of the employees.

It will assist you in your efforts to isolate and identify those attributes, which affect

reward system within your company. This project is developed to provide customized

reward system, which includes knowledge, questionnaire development, testing,

implementation and analysis.

It will help you to motivate their employees by providing the fair and effective reward

system. In this project an attempt has been made to incorporate new developments in the

reward system. A customized survey is designed specifically to assist in the efficient and

effective allocation of funds, effective reward system. Targeted to enhance the

performance by motivating and stability of human resources.

ContentsPage no.

CHAPTER 1. Introduction to the topic 1-27

Introduction

Reward

Reward System

Assumptions under Reward System

Type of Rewards

Motivation

Motivational theories based on reward system

CHAPTER 2. Research Methodology 28-35

Objectives of the study

Significance of the study

Review of literature

Scope of the study

Research Design

Sample design

Collection of the data

Analysis of the data

Limitation of the study

CHAPTER 3. Industry Profile 36-44

Introduction

Early History

World War I to Independence

Post Independence

Nationalization

Liberalization

Major Private Banks

CHAPTER 4. ICICI BANK- A Corporate Profile 45-51

Introduction

ICICI Bank Group

Awards & Recognitions

List of ICICI Bank in Karnataka

CHAPTER 5. Data analysis and interpretation 52-77

Motivational Factors

Data analysis and interpretation on motivational

related factors

CHAPTER 6. Findings & Suggestions 78-83

Findings of the study

Suggestions of the study

Conclusion 84

Bibliography 85

Annexures 86-98