Introduction of the company

HERO MOTORS

HERO Motor Company

Limited (BSE: 532343, NSE: HEROMOTOR) is the fourth largest two-

wheeler manufacturer in India. It is the flagship company of the parent

HERO Group employing over 40,000 people with an estimated 15 million

customers.[2] It manufactures motorcycles, scooters, mopeds and auto

rickshaws. It is India's only two-wheeler company to have won the Deming

Prize awarded for commitment to quality control, received in 2002.

History

HERO Motor traces its origins back to the entrepreneurial spirit of Trichur

Vengaram Sundaram Iyengar who gave up lucrative careers in the Indian

Railways and in banking to set up his own business. He began

with Madurai's first bus service in 1911 and founded T. V. Sundaram

Iyengar and Sons Limited, a company that consolidated its presence in

the transportation business with a large fleet of trucks and buses under

the name of Southern Roadways Limited.[3] When he died in 1955 his

sons took the company ahead with several forays in the automobile

sector, including finance, insurance, manufacture of two-wheelers, tyres

and components. The group has managed to run 33 companies that

account for a combined turnover of nearly $3 billion.

Early years

Sundaram Clayton, then the flagship company, was founded in 1962 in

collaboration with Clayton Dewandre Holdings, United Kingdom. It

manufactured brakes, exhausts, compressors and various other

automotive parts. The company set up a plant at Hosur in 1978 to

manufacture mopeds as part of a new division. A technical collaboration

with the Japanese auto giant resulted in the joint-venture Ind Hero

Limited in 1982 between Sundaram Clayton Ltd and Hero Motor

Corporation. Commercial production of motorcycles began in 1984.

HERO relationship

HERO and HONDA shared a 19 year long relationship that was aimed at

technology transfer to enable design and manufacture of two-wheelers

specifically for the Indian market. Rechristened Hero- Honda, the

company brought out several models such as the Hero Samurai, Hero

Shogun and Hero Fiero. Differences in opinion on how to run the join

venture eventually led to the partners going their separate ways in 2001

with the company being renamed HERO Motor, relinquishing rights to

use the Hero name. There was also a 30 month moratorium period during

which Hero promised not to enter the Indian market with competing two-
wheelers. The company also got over a period of labour unrest that

required Chairman Venu Srinivasan to take tough measures to resurrect

a company that was in a state of turmoil. He would go on to invest in

new technology, nurture in-house design, and implement Toyota-style

quality programs.

Recent

Over the years HERO Motor has grown to be the largest in the group,

both in terms of size and turnover, with four state of the

art[7] manufacturing plants in Hosur, Mysore and Nalagarh in India

and Karawang in Indonesia. HERO Motor is credited with many innovations

in the Indian automobile industry, notable among them being the

introduction of India's first two-seater moped, the HERO 110cc. The

company became the leader in its category of sub 125 cc mopeds,

having sold 7 million units. It also introduced the HERO Scooty, which is

India's second largest brand in the scootere segment. The HERO Jive

launched in November 2009 became India's first clutch-free

motorMESTRO SCOOTER aimed at a stress-free rider experience while

the unisex scooter HERO Deoo is targeted at urban couples, featuring

body-balance technology for easier handling.

Awards

HERO Motor won the Deming Application Prize in 2002, becoming the first

and only Indian two-wheeler company to win the award given to

companies that do outstanding work in the field of Quality Management. It

is considered to be one of the world's most prestigious quality awards.

The same year, the work done for the HERO Victor motorcycle won

HERO Motor the National Award for successful commercialization of

indigenous technology from the Technology Development Board, Ministry

of Science & Technology, Government of India. In 2004, HERO Scooty Pep +

won the 'Outstanding Design Excellence Award' from Business World

magazine and the National Institute of Design, Ahmedabad. The effective

implementation of Total Productivity Maintenance practices won HERO

Motor the TPM Excellence Award given by the Japan Institute of Plant

Maintenance in 2008.

HERO Motor has won several management awards, notable among

them being the Emerging Corporate Giant in the Private Sector awarded

by The Economic Times and the Harvard Business School Association of

India. Business Today magazine awarded HERO Motor the Best

Managed Company and the Most Investor Friendly Company awards. Its

advertising practices won it the Good Advertising award by Auto India

Best Brand Awards 2009. Company Chairman Venu Srinivasan is a

recipient of several awards for corporate excellence such as the Star of

Asia Award by Bloomberg Business Week and the JRD Tata Corporate

Leadership Award. The University of Warwick, United Kingdom gave him an

honorary Doctorate of Science degree while the Government of India

honoured him with the Padma Shri, one of India's highest civilian

distinctions.

Innovative implementation of Information Technology has won HERO Motor

the Ace Award for Most Innovative Net Weaver Implementation in 2007

awarded by technology major SAP AG and the Team Tech 2007 Award

of Excellence for Integrated use of Computer-aided

engineering Technologies.

TV Sundaram Iyengar and Sons Limited (HEROs) is the holding

company for the HERO Group of companies engaged in the

manufacturing of almost all kinds of automotive components, best two

wheelers and a few other industrial products. They are also into the

financial services sector. The turnover of the entire group was close to

$2 billion in 2003.

HERO was founded by T. V. Sundaram Iyengar in 1911. It is the

only automotive manufacturer in India to get the prestigious Deming

Prize. One of its subsidiaries Sundaram Clayton was the first company in

India to receive the Deming allowed by Sundaram Brake Linings also

getting the Deming Prize. This prize is "given to organizations or

divisions of organizations that have achieved distinctive performance

improvement through the application of TQM in a designated year."

Sundaram Clayton went on to be awarded the Japan Quality Medal.

The HERO group of companies is mainly situated in Padi,

Tamil Nadu, in the outskirts of Chennai (formerly Madras). HERO Motor

Company's first launch was 50 cc Moped HERO 50 in August 1980. It is

the first Indian company to introduce 100 cc Indo-Japanese Motorcycles in

India in 1984.

It was also the first Indian company to launch indigenous

scooterette in India in 1994. It has grown rapidly since it's beginning to

become one of the prominent two-wheeler manufacturers in India. Today

HERO is a well-known brand in the field of MESTRO SCOOTER

manufacturing. The manufacturing unit of HERO Motor is located at

Hosur and Mysore.

HERO WARRANTY POLICY

HERO Motor Company, (here in after called as HERO) offers

warranty for "Products" manufactured in its plant and sold through its

authorized dealers. HERO reserves the right either to replace or repair,

at their authorized dealer, free of cost, those parts which may be found

on examination to have manufacturing defect within 2 years from the

date of sale (or) first 30,000 kms whichever occurs earlier of its

operation.

CONDITION OF WARRANTY

The warranty coverage for Products will be valid only if the following are

availed & followed:

1. All 6 Free Services as per the given schedule

2. All 9 Paid Services as per the given schedule

3. Maintaining the service record given in the Owners Manual duly

signed by HERO authorized dealer for each of the 6 Free & 9 Paid

Services availed

The claim for ex-change (or) repair of parts shall be considered only

when:

1-Customer ensures that immediately upon the discovery of the defect

he approaches the nearest HERO authorized dealer with the affected

motorcycle.

2- The expenses if any for bringing the affected motorcycle to HERO

authorized dealer has to be borne by customer only.

3- Customer produces the Owner’s Manual in original, to enable HERO

authorized dealer to verify ownership & service record.

4- Warranty claims in respect of proprietary items like Tyres, Tubes,

Battery and Sparkplug are warranted by their respective manufacturers

and shall be claimed on them directly by the customer as per their

warranty terms and SMIPL shall not be liable in any manner to replace

them.

5-However HERO authorized dealer will give full assistance in taking up

the claims with respective manufacturers.

6- Warranty Claims in respect of shock absorbers (front & rear),

Speedometers etc though claimed through HERO are subject to the

acceptance of the respective manufacturers.

7-HERO reserves the right to carry out the replacement of the defective

part with the same part manufactured by another vendor, which is also

used by HERO.

8- Warranty Claims will only be handled through HERO authorized

dealers & will not be entertained directly by HERO at all.

9-HERO undertake no liability in the matter of consequential loss or

damage caused due to the failure of parts. Delay, if any, for carrying out

the repairs at HERO authorized dealer, shall not be a ground for

extending the warranty period, nor shall it give any right to the customer

for claiming any compensation for damages.

 LIMITATION OF WARRANTY

Warranty is not applicable to :

Normal maintenance operations such as Engine Tune-up, De-

Carbonizing, Carburetor cleaning, Wheels, Brakes and Clutch

adjustments as well as any other normal adjustments.

Normal service wear and tear items (i.e.) Brake Shoes, Brake

Pads, Shims / Fasteners, Drive Chain, Sprockets, Clutch Plates, Race

Bearing kit, Gaskets, Rubber Parts (or) Plastic components, Wheel Rims

(in case of misaligned or bent), Element Air Cleaner, Oil Filter and

Electrical items like Bulb If recommended Engine Oil/Lubricants are not

used or if they are not replaced at the recommended interval.

Use of non- genuine parts (or) accessories not approved by

SMIPL which affects the performance and reliability of the motorcycle

Premature wear of Engine parts such as Cylinder, Piston, Valves, and

Bearings due to adulteration of petrol/fuel If any of the free or paid

service is not done as per schedule, the warranty tends to stand void.

Parts of the vehicle have been subjected to misuse,

accident, and negligent treatment, use of bad quality parts which are not

manufactured (or) not recommended for use by HERO on their Products.

Parts of the motorcycle getting rusted or their plating or painting

coming off due to atmospheric condition like Sea Breeze and Industrial

Pollution. Motorcycle used for any Competition (i.e.) Rallies (or) Races, if
it is used for any commercial purposes like Hiring etc. HERO undertakes

no liability in the matter of any consequential loss (or) damage caused

due to failure of the parts. Parts repaired (or) replaced under this

warranty are warranted only for the original warranty period of HONDA

motorcycles. Consumables like Engine Oil, TFF Oil, Grease, used for the

warranty repair are not covered under the application of the warranty.

The company is not liable for any delay in servicing due to reasons

beyond the control of the company or any of HERO authorized dealer.

HERO reserves the right to make any changes in the design or to add

any improvement(s) on the motorcycle at any time without incurring any

obligation to make the same on the motorcycle previously supplied (or)

sold /manufactured.

Also the conditions of this warranty are subject to alterations without any

notice. This warranty is the entire written warranty given by HERO for

your motorcycle, and no employee, HERO authorized dealer (or) other

person is authorized to extend or enlarge the terms of warranty. Decision

regarding warranty settlement shall be taken by HERO and shall be final

and binding on all concerned.

Brand Reputation

Apart from these more traditional means of increase brand value, your business
should also be concerned with its brand reputation. A solid brand reputation will
directly affect revenue, as customers will feel safe and secure in purchasing
goods and services from your company. Reputation management is about
understanding the influence of customer perceptions on your business's revenue
prospects. The idea here is to manage customer expectations, to respond quickly
to problems or issues, and to always conduct your business in an ethical way.
This concern with reputation should extend through all forms of marketing and
advertising and your approach to customer service.

India is an emerging country with huge potential. The domestic economy is now
growing at around 9-10% per annum and India’s importance in global terms is
being reinforced by rapidly rising exports and domestic consumption. At a time
when numbers of a slowdown and overheating in the Indian economy have
started gaining momentum, the Indian rupee sprang a surprise by pushing the
GDP figure past the trillion-dollar (42,00,000 crore) mark.
The automotive industry is at the center of India’s new global dynamic. The
domestic market expanding rapidly as incomes rise and consumer credit
becomes more widely available. Manufacturer’s product lines are being
continually expanded, as is the local automotive manufacturing base.
Expectation are high that India can develop as a global hub for vehicle
manufacturers and as an outsourcing center that offers the global automotive
industry solution high up the automotive value chain.
 India eyes 25 million automotive jobs.

 India's GDP is set to double over the next decade

 In percentage terms, the automotive industry's contribution should also
double.

 In dollar terms, the sector's contribution is set to quadruple to some $145bn.

The automobile industry in India accounts for a business volume of $45 billion
and has the potential to grow much faster both through Indian as well as
international manufacturers who have established huge facilities in the country.
With the world’s second largest and fastest-growing population, there is no
denying India’s potential in both economic and population terms and the effect
it will have on the auto industry in the years to come.
The country is already off to a good start, with a well-developed components
industry and a production level of 1 million four-wheeled vehicles a year, plus a
further 5 million two- and three-wheelers.
The implications, market drivers and scope of a future massive Indian vehicle
market are covered in the India Strategic Market Profile, a brand-new forecast
of Indian automotive and related activity to 2020. Based on Max Pemberto's
unique relational long-term forecasting model, it forecasts car and CV sales,
demographics, materials usage, auto industry employment, and explains their
inter- year of healthy growth in auto industry.
INDUSTRY GROWTH:

Future of the Automobile in the Economy:

US based consultancy, keystone predicts that India will become world’s third
largest automobile market by 2030. Overall size expected to exceed 20 million
with compounded annual growth rate of over 12%.
INDIA THEN & NOW
1983
 Number of brands 2

 Number of models 2

2009
 Number of brands 30

 Number of models 70

Services have been studied extensively since 1980s. The idea of linking

service value and customer satisfaction has existed for a long time.

Customer satisfaction has been studied and recognized as an important

factor in the management literature for the past few decades. Studies

indicate that there are links among customer satisfaction, customer

loyalty, and profitability.

During recent years, there have been studies that have established

mechanisms that attempt to link customer satisfaction and customer

loyalty. Many studies additionally attempt to establish connections

between service quality, customer satisfaction, customer loyalty and

profitability.

Many studies related to customer satisfaction during the 1990's have

been conducted in the area of consumer markets. Even though there are

many studies in the area of services, after sales services and after sales
activities generally have represent an overlooked area of the

management literature and only a few researchers have paid attention

on it. For the most part, issues related to after sales activities and after

sales services have been given only partial attention in those studies.

After-sales services are often provided and consumed by two different

organizations (i.e., the OEM and the customer), the issue of contracting

between them becomes important .While contracts for maintenance

services of simpler products (electronics, automobiles) involve fixed

payments for warranties, there are many instances of complex systems

that require more sophisticated relationships between service buyers

and suppliers.

A critical element of after sales services is that clear separation between

the buyer’s expectations of service (the performance goal) and the

supplier’s implementation (how it is achieved).

In the words of Macfarlan and Mansir, “The contract explicitly identifies

what is required, but the contractor determines how to fulfill the

requirement. ”The importance of after sales service can be significant to

customer satisfaction, particularly in the automobile business

environment, if the customer’s capital expenditure on the equipment is

significant.
 It is expected that the importance of well-managed

services in after sales phase, i.e., care phase will increase, particularly in

environments where high capital investments are required and such

investments are made over longer periods of time.

Services:

Kotler (1997) defines service as follows:

“Service is any act or performance that one party can offer to

another that is essentially intangible and does not result in the ownership

of anything. Its production may or may not be tied to a physical product.”

Mathe and Shapiro (1993) define service as follows:

“Service is all of the activities undertaken by the firm to

provide value in use over time, measured by increased customer

satisfaction with a tangible product or series of products.”

Services are more or less intangible .Services are activities

or a series of activities rather than a thing. The customer participates, at

least to some extent, in the production process. Services are at least to

some extent produced and consumed simultaneously.

Services have four unique characteristics: intangible;

more difficult to define and subject to alternative expectations and

perceptions, heterogeneity; subject to human variability and often the

customer is involved, perishability; once a service has been created, it

has no value and inseparability of production and consumption;

consumed as it is produced. Every service company must be able to

satisfy three goals: to deliver outstanding customer service, to fulfill

employee satisfaction, and to achieve financial success.

Customer Satisfaction

Kotler (1997) defines customer satisfaction as follows:

“Satisfaction is a person's feelings of pleasure or

disappointment resulting from comparing a product's perceived

performance (or outcome) in relation to his or her expectations.”

Brown (1992) defines customer satisfaction as:

“The state in which customer needs, wants and expectations

throughout the product or service's life are met or exceeded resulting in

repeat purchase, loyalty and favorable worth-of mouth.”

According to Jones and Sasser (1995), four basic elements affect

customer satisfaction. They are the basic elements of the product or

service, basic after sales services, a recovery process for counteracting

bad experiences, and extraordinary service. There are many definitions

of the key elements of the services, but this one is considered

appropriate in the context of care or after sales services.

Jones and Suh (2000) differentiate between transaction-specific

satisfaction and overall satisfaction. Overall satisfaction is based on the

information from all previous experiences with the service provider and is
viewed as a function of all previous transaction-specific satisfactions.

Transaction-specific satisfaction refers to a single service encounter. In

general, transaction-specific satisfaction may not be perfectly connected

to overall satisfaction.

The empirical results support that transaction-specific

satisfaction can be empirically distinguished from overall satisfaction.

Overall satisfaction is a better indicator of a customer’s repurchases

intentions than transaction-specific satisfaction.

Transaction-specific satisfaction directly influences a customer's

repurchase intentions, but only when overall satisfaction is low. In such a

case, consumers allow their evaluation of the last service encounter to

influence repurchase decisions. When a customer has had a bad

experience, the service manager may wish to remind the customer of

his/her previous overall satisfaction. Particularly at the early stages of

the customer relationship, high levels of transaction-specific satisfaction

are particularly important.

After Sales service:

Lele (1986) identifies the following aspects in the after sale service area:

1. Suppliers are manufacturing more reliable and more easily fixable

equipment

2. Customers are becoming more sophisticated about buying product

support services and demand for service "unbundle"

3. Customers do not like to deal with a multitude of service providers

4. Service contracts are becoming an endangered species

5. Customer service choices are increasing and this holds down the

profits on service

At the time of sale, the buyer and seller have different

kind of expectations. For the seller, the sales is a culmination of a long

sales negotiation; it is time to collect monetary reward for the labors.

Sales closure opens new opportunities with new potential customers and

matters shift from the sales team to the production team. From the

buyer’s point of view, a sale is an initiation of a new Relationship; the

buyer is frequently concerned about support and the attention it will get

wishes to continue to interact with the sales team. After sales services

include maintenance, repair, and upgrading. If these services can be

offered at a fixed or guaranteed rate, they could be a significant

competitive advantage. In maintenance, it is to be remembered that one

way of solving the repair problem is to have defect-free products and

then service can be bundled into the product price, which can also be of

strategic value.

According to Wellemin (1984), after sales support

has changed drastically in recent decades. Customers have become

more dependent on efficient operation of suppliers’ equipment, services

are labour intensive and cost of labor has risen, products intended for
the same markets are becoming more similar, customers are

increasingly selective as they seek value for money, and social changes

have reflected to services.

The product-service package must be defined so that it

maintains costs at a level acceptable to the market. It is necessary to

develop economic analysis that enables estimates of life-cycle costs.

After sales service is more than merely fixing what

has gone wrong, this appears to be the primary function of many after

sales service functions. Manufacturers should anticipate the after sales

needs in product design, but experience shows that manufacturers do

not incorporate customers’ concerns actively enough at the product

design phase.

In the case of durable goods, at least customer,

dealer, third party provider of service, the manufacturer of the tangible

product, and the supplier of parts and components can be involved in the

after sales service operations. The traditional approach to after sales

service center is on technical intervention, where the focus is on

improving technical tools and work methods.

Business Definition for: After-sales Service Customer support following

the purchase of a product or service. In some cases, after-sales service

can be almost as important as the initial purchase. The manufacturer,

retailer, or service provider determines what is included in any warranty

(or guarantee) package. This will include the duration of the warranty

traditionally one year from the date of purchase, but increasingly two or

more year’s maintenance and/or replacement policy, items

included/excluded, labor costs, and speed of response. In the case of a

service provider, after-sales service might include additional training or

help desk availability.

Of equal importance is the customer's perception of

the degree of willingness with which a supplier deals with a question or

complaint, speed of response, and action taken. Quality, price, and

service are three factors are critical to the success of any export sales

effort. Quality and price are addressed in earlier chapters. Service, which

is addressed here, should be an integral part of any company's export

strategy from the start. Properly handled, service can be a foundation for

growth. Ignored or left to chance, it can cause an export effort to fail.

Service is the prompt delivery of the product. It is courteous sales

personnel. It is a user or service manual manual modified to meet your

customer's needs. It is ready access to a service facility. It is

knowledgeable, cost-effective maintenance, repair, or replacement.

Service is location. Service is dealer support. Service varies by the

product type, the quality of the product, the price of the product, and the

distribution channel employed. For export products that require no

service - such as food products, some consumer goods, and commercial

disposables - the issue is resolved once distribution channels, quality

criteria, and return policies have been identified.

On the other hand, the characteristics of consumer

durables and some consumables demand that service be available. For

such products, service is a feature expected by the consumer. In fact,

foreign buyers of industrial goods typically place service at the forefront

of the criteria they evaluate when making a purchase decision.

All foreign markets are sophisticated, and each has its own

expectations of suppliers and vendors. U.S. manufacturers or

distributors must therefore ensure that their service performance is

comparable to that of the predominant competitors in the market. This

level of performance is an important determinant in ensuring a

reasonable competitive position, given the other factors of product

quality, price, promotion, and delivery. An exporting firm's strategy and

market entry decision may dictate that it does not provide after-sale

service. It may determine that its export objective is the single or multiple

opportunistic entry into export markets. Although this approach may

work in the short term, subsequent product offerings will be less

successful as buyers recall the failure to provide expected levels of

service. As a result, market development and sales expenditures may

result in one-time sales.

 INDIAN 2 WHEELER INDUSTRY

India is the second largest producer and manufacturer of two-wheelers

in the world. Indian two-wheeler industry has got spectacular growth in

the last few years. Indian two-wheeler industry had a small beginning in

the early 50's. The Automobile Products of India (API) started

manufacturing scooters in the country.

The hero is a bike from Hero Motocorp. It comes as the second

scooter from what was traditionally a motorcycle company. The scooter was

unveiled at the O2 Arena in London along with Hero’s new corporate identity in

2011, and was launched in the market in 2012.

In terms of positioning, the Maestro is pitted against the Hero Pleasure, Hero’s

first offering in the scooter segment. Communicating itself as a boy’s scooter, it

is marketed as a vehicle for young riders that captures all the little quirks that

define boys. Aptly bearing the tagline of “It’s a boy thing”, the Maestro caters

to the male section of a gender polarized scooter market.

Hero's sales momentum amid the slowdown is being propped up in no small

terms by its two scooter brands. Maestro has been able to crank up volumes to

the tune of 28,000 units per month in a year's time. The Pleasure which brought
in the tagline of 'Why should boys have all the fun' grosses sales of 30,000 units

a month and is a mainstay for Hero.[1]

The Maestro is powered by a more powerful 109c engine, and has a dry clutch

with variomatic drive..

Hero bike are a major segment of Indian two wheeler industry, the

other two being scooters and mopeds. Indian companies are among the

largest two-wheeler manufacturers in the world. HERO and Bajaj Auto

are two of the Indian companies that top the list of world companies

manufacturing two-wheelers.

The two-wheeler market was opened to foreign companies in

the mid 1980s. The openness of Indian market to foreign companies

lead to the arrival of new models of two-wheelers into India. Easy

availability of loans from the banks, relatively low rate of interest and the

discount of prices offered by the dealers and manufacturers lead to the

increasing demand for two-wheeler vehicles in India. This lead to the

strong growth of Indian automobile industry.

Key players in the Two-wheeler Industry :

After facing its worst recession during the early 1990s, the two-wheeler

industry bounced back with a 25% increase in volume sales in February

1995. The scooters are considered as family vehicles. There are many

two-wheeler manufacturers in India. Major players in the 2-wheeler

industry are HERO Motors Ltd (HHML), Hero Group, Bajaj Auto Ltd

(Bajaj Auto) and HERO Motor Company Ltd (HERO).

The other key players in the two-wheeler industry are Kinetic Motor

Company Ltd (KMCL), Kinetic Engineering Ltd (KEL), LML Ltd (LML),

Yamaha Motors India Ltd (Yamaha), Majestic Auto Ltd (Majestic Auto),

Royal Enfield Ltd (REL) and HERO Motorcycle & Scooter India (P) Ltd

(HMSI).
 INTRODUCTION

The term “
Motivation program” was brought to limelight by Hoppock. According to him, Motivation
program is the combination of psychological, physiological and environmental factors that
makes a person to admit, “I am happy at my job”. It has also been defined as the ‘end state of
feeling’. It is an important dimension of morale and not morale itself.

CONCEPT OF SKILL DEVELOPMENT &

MOTIVATION PROGRAM:

Motivation program is the end feeling of a person after performing a task

to the extent that a person’s job fulfills his dominant needs and is consistent
with his expectations and values, the job will be satisfying. The feeling would
be positive or negative depending upon whether need is satisfied or not.

Motivation program is different from motivation and morale. Motivation

refers to the willingness to work. Satisfaction on the other hand, implies a
positive emotional state. Morale implies a general attitude toward work and
work environment. It is a group phenomenon where as motivation program is an
individual feeling. Motivation program may be considered a dimension of
morale and morale could also be a source of satisfaction. Thus Motivation
program is an employee’s general attitude towards his job.
HOW TO MEASURE MOTIVATION PROGRAM

Like intelligence, measure of motivation program is difficult. Most studies

have measured motivation program through a questionnaire. Hoppock
developed four terms, each one with seven alternative responses, developed one
of the earliest scale of measuring motivation program.

In India, Pestonjee developed a S-D (satisfaction-dissatisfaction) inventory

consisting of cointerogatery statements, the items leading to yes-no type of
responses. There are four areas including both on job and off the job factors.
Each area includes 20 items some of which are given below:

1. Job: Nature of work, hours, fellow workers, overtime regulations,

physical environment, machines and tools, interest in work, opportunities
for promotion and advancement etc.

2. Management: Rewards and punishment, praise and blame, leave policy,

test as a whole reveled significant discriminatory potential. Favoritism,
participation, supervisory treatment, etc.

3. Social Relations: Neighbors, friends and associates, caste barriers,

participation in social activities, attitude toward people in community,
etc.

4. Personal Adjustment: Health, home and living conditions, finances,

relation with family members, emotionalism, etc.
 Statically treatments of the individual item in the four areas are given
above.

MOTIVATION PROGRAM AND WORK BEHAVIOURS

Motivation program is an integral component of organizational health and

an important element in industrial relations. The level of motivation program
deems to have some relation with various aspects of work behaviour such as
accidents, absenteeism turnover and productivity.

Several studies have revealed varying degrees of relationship between

motivation program and these factors of work behaviors. But whether work
behaviors is the cause or effect of motivation program is not clear.

Research on the relationship between motivation program and accidents

generally shows that satisfied employees cause fewer accidents. Studies on the
relationship between motivation program and absenteeism have yielded
inconclusive results. Most of these studies showed that low absentee employees
were more satisfied with their jobs. Research also reveals that unionized
workers tend to be more satisfied whereas employees of disturbed organizations
were generally less satisfied. Less satisfied employees are more likely to quit
their jobs than more satisfied employees.

It is generally assumed that satisfied employees are more productive. But

research reveals no relationship between motivation program and productivity.
Studies revealed that workers with positive attitude job attitudes were more
productive than those with negative attitudes. In other studies job attitudes and
productivity are not related and in some studies there was negative correlation
between job attitudes and productivity. After reviewing several studies Bray
Field and Crockett concluded that motivation program did not necessarily go
together. Employees in highly productive group were not more likely than
employee in the low productivity groups to be satisfied with their jobs. A
worker may be satisfied with the work environment but may produce more to
prove his abilities to management. On the other hand, a highly satisfied worker
may not produce more and get away with it because he may be friendly with the
supervisor.

DETERMINANTS OF MOTIVATION PROGRAM

The various factors influencing motivation program may be classified into

two categories:
I. Environmental factors , and
II. Personal factors.

Environmental Factors:
These factors relate to the work environment, main among which are as
follows:

1. Job Content: Herzberg suggested that job content in term of

achievement, recognition, advancement, responsibility, and the
work itself tend to provide satisfaction but their absence does not
cause dissatisfaction. Where the job is less repetitive and there is
variation in job content, motivation program tends to be higher.

2. Occupational Level: The higher the level of the job in

organization hierarchy the greater the satisfaction of the individual.
These is because positions at higher levels are generally better
paid, more challenging and provide greater freedom of operation.
Such jobs carry greater prestige, self-control and need satisfaction
 3. Pay and Promotion: All other things being equal, higher pay
and better opportunities for promotion lead to higher motivation
program.

4. Work group: Man is a social animal and likes to be associated

with other’s interaction in the work group help to satisfy social
psychological needs and, therefore, isolated worker tend to be
dissatisfied. Motivation program is generally high when an
individual is accepted by his peer and he has a high need for
affiliation.

5. Supervision: Consideration supervision tends to improve

motivation program of workers. Considerate supervisor takes
personal interest of his subordinates and allows them to participate
in the decision making process.

Personal Factors:
Personal life exercises a significant influence on motivation program.
The main elements of personal life are given below:

1. Age: Some research studies reveal a positive correlation between age

and motivation program. Workers in advanced age group tend to be
more satisfied probably because they have adjusted with their job
conditions. However, there is a sharp decline after a point perhaps
because an individual aspires for better and more prestigious jobs in
the later years of his life.
2. Sex: One study revealed that women are less satisfied than men due
to fewer job opportunities for females. But female workers may be
more satisfied due to their lower occupational aspirations. But this
statement may not be applicable now at presents level.

3. Educational level: Generally more educated employees tend to be

less satisfied with their jobs probably due to their higher job
aspirations. However, research does not yield conclusive relationship
between these two variables.

4. Marital status: The general impression is that married

employees are more dissatisfied due to their greater
responsibilities. But such employees may be more satisfied because
they value their jobs more than unmarried workers.

5. Experience: Motivation program tends to increase with

increasing years of experience. But it may decreases after twenty
years of experience particularly among people whohave not
realized their job expectations.
 THEORIES OF MOTIVATION PROGRAM

The main theoretical approaches to motivation program are as follows:

1. Need fulfillment theory.
2. Equity theory.
3. Discrepancy theory.
4. Equity discrepancy theory.

NEED FULFILLMENT THEORY~

According to this theory a person is satisfied when he gets from his job
what he wants. The more he wants something or the more important it is to him,
the more satisfied he is when he received it. In other words, “motivation
program will vary directly with the extent to which those needs of an individual
which can be satisfied actually”.

Vroom views satisfaction in terms of the positively valued outcomes that

a job provides to a person. Thus, motivation program is positively related to the
degree to which one’s needs are fulfilled. What may satisfy one individual may
not satisfy the other due to

difference in their expectations. The strength of an individual’s or his level of

inspiration is an important determinant of motivation program. Thus, motivation
program is a function of the degree to which the employee’s needs fulfilled in
the job situation.
EQUITY THEORY~
Under this theory, it is believed that a person’s motivation program
depends upon
his perceived equity as determined by his input-output balance of others. Every
individual compares his rewards with those of a ‘reference group’. If he feels
his rewards are equitable in comparison with others doing similar work, he feels
satisfied, motivation program is thus a function of the degree to which job
characteristics meet the desires of the reference group. For example, one study
of the effects of community features on motivation program revealed that
workers living in a well to do neighborhood felt less satisfied then those living
in poor neighborhoods.

Equity theory takes into account not only the needs of an individual but
also the opinion of the reference group to which the individual looks for
guidance.
 Perceived
A=B
Perceived outcomes
Satisfaction
Personal actually
A<B
inputs received
Dissatisfaction
A
A>B
Guilt
Discomfort

Perceived Perceived Perceived

inputs of outcomesof personal
comparison comparison others outcomes that
others B should be
perceived

Fig F1: Equity theory of Motivation program

DISCREPANCY THEORY~

According to this theory, motivation program depends upon what a

person actually receives from his job and what he expects to receive. When the
rewards actually received are less than the expected rewards it causes
dissatisfaction. In the words of Locke, “motivation program and dissatisfaction
are function of perceived relationship between what one wants from his job and
what one perceives it is actually offering. In other words, satisfaction is the
difference between what one actually received and what he feels he should
receive. This theory fails to reveal whether over-satisfaction is or is not a
dimension of dissatisfaction and if so, how dies it differ from dissatisfaction
arising out of the situation when received outcomes one less than the outcomes
one feels he should receive.

Perceived outcomes
received A=B
B Perceived Satisfaction

A>B
Perceived Dissatisfaction

A<B
Outcomes one feel he Perceived Over satisfaction
should received
A

Fig F2 : Discrepancy Approach to Motivation program

\

EQUITY-DISCREPANCY THEORY~

This is a combination of equity and discrepancy theories. Lawler has

adopted the difference approach of discrepancy theory rather than the ratio
approach of equity theory. From equity theory the concept of comparison has
been selected to serve as an intervening variable. Under this theory satisfaction
is defined as the difference between the outcomes that one perceives he actually
received and outcomes that one feels he should receives in comparison with
others, when the individual feels that what he actually received is equal to what
he perceives he should received there is satisfaction. Thus an individual’s
reception of his reward is influenced by more than just the objective amount of
that factor. Because of this psychological influence the same amount of reward
often can be seen quite differently by two people, to one it can be a larger
amount, while to another person it can be a small amount.

This model reveals that a person’s perception of what he should

receive is influenced by the inputs and outputs of others. If his inputs are similar
to those of referent groups but outcomes is less he is likely to be dissatisfied.
Lawler suggested that those individuals are likely to be more satisfied who
perceive:

a) Their inputs are low;

b) Their job are less demanding;

c) Their reference groups have favorable input-output balance;

d) They are receiving a high outcome level; and

e) Their referent groups are receiving fewer outputs.

 Perceived
personal job
inputs
Perceived
amount that
should be
Perceived received A=B
inputs and Satisfaction
outcomes of A>B
different Dissatisfaction
groups A<B
Guilt inequity
discomfort
Perceived
outcomes of
different
groups Perceived
amount
received

Actual
Outcomes
received

Fig F3: Determinants of Motivation program

 RESEARCH METHODOLOGY ADOPTED FOR
CONDUCTING THE SURVEY

A) RESEARCH DESIGN
Experience survey.

B)TOOLS FOR RESEARCH

The questionnaire method has been used to analyse and assess the

motivation program of hero` employees, Hardwar.

The questionnaire was distributed to 60 employees {it includes

Executives(15%), Supervisors(35%) & worker class(50%) of hero} of

different departments.(Includes CFFP and HEEP)

Questionnaires comprises of 15 questions.

C)SAMPLE SIZE

A total number of questionnaires distributed was 60.

ANSWERS BASED ON QUESTIONAIRES
Q1. Do you feel that employees are satisfied in the job assigned to them?

Employees Response

40
40 35
30
25 28
20 22
15 17
10
5
3
0

Fully Satisfied Partially dissatisfied

Satisfied Satisfied

Graph 1
Response: The above graph shows out of 60 people 28 people are fully
satisfied, 22 people are satisfied and again 17 people are partially satisfied while
3 persons was dissatisfied with
the job.
Q2. What actually you have understood by motivation program?
40 40
35 32
30
25
20 15
15
10 7
4 2
5
0
salary wc knowledge cant say not replied

Graph 2
Response: The above graph shows that out of the 60 employees 32 measures
motivation program as salary,15 as working condition, for 7 it means
knowledge, 4 were not able 2 define and 2 were not willing to reply for the
above question asked.

But actually motivation program means that the amount of pleasure or

contentment associated with a job. If you like your job intensely you will
experience high motivation program. If you dislike your job intensely, you will
experience job dissatisfaction.
Q3. How well you like your job?

Employees Response

45
40
45
35
30
25
20
15
10
5 8 7

Fully satisfied partially dissatisfied

satisfied satisfied
Graph 3

Response: The above graph shows that out of the 60 employees, 45 employees
are fully satisfied, 8 are satisfied, 7 are partially satisfied and none of the
employee is dissatisfied with their job.

So, it is clear from the graph that most of the employee’s are satisfied
with their job.
Due to fulfillment of there needs and is consistent with his expectations and
values, the job will be satisfying.

The feeling would be positive or negative depending upon the need is satisfied
or not.
Thus, motivation program is an employee’s general attitude towards the job
Q4. Are you satisfied with the medical facility in hero?

Employees Response

40 39
40 35
30
25
20
15
10
5 11
7
3
0

Fully Satisfied Partially Dissatisfied

Satisfied Satisfied

Graph 4

Employees Response: The above graph shows that out of the 60 employees, 39
people are fully satisfied, 11 people are satisfied and 7 people are partially
satisfied while 3 people are dissatisfied with the medical facility given by
HERO.

According to me, the medical facility is very good.

Hero is providing comprehensive health care services to it’s

employee’s; it provides preventive and promotion health services to its entire
employee’s of both (HEEP & CFFP) plants. It has 9 sector dispensaries; main
gate dispensaries one in HEEP and one is in CFFP.
Q5. Are you satisfied with the housing facility at hero?
Employees Response

40 49
40 35
30
25
20
15
10 10
5
1 0
0

Fully Satisfied Partially Dissatisfied

Satisfied Satisfied

Graph 5

Employees Response: The above graph shows that out of the 60 employees, 49
employees are fully satisfied, 10 are satisfied and 1employee is partially
satisfied while no employee is dissatisfied with the housing facility given by to
their employees.

So, most of the people are receding in company’s quarters.

has full-fledged township with in the campus devised in sectors.
Q6. Do you agree with the promotion policy ?
Employees Response

40 39
40 35
30
25
20
15
10 14
5
7

Agree Disagree Strongly

disagree
Graph 6

Employees Response: The above graph shows that out of the 60 employees,14
are agree, 39 are disagree and 5 employees are strongly disagree, with the
promotion policy adopted by hero for their employees.
Hero employee’s in general they are not aware of the promotion policy.
They have mentioned a different opinion that is partially not correct.
Q7. Are you satisfied with the working conditions particularly at your
workplace?
Employees Response

40
40 35
30
25
25
20 22
15
10
5
7 6

Fully Satisfied Partially Dissatisfied

Graph 7

Employees Response: The above graph shows that out of the 60 employees, 25
are fully satisfied, 22 are satisfied ,7 are partially satisfied while 6 employees
are dissatisfied with the job working conditions.
According to me, hero working conditions are very good. With reference
to factory act (1948).
In my view the working conditions in any organization are follows, and
hero is fully met with:
 Proper lightening.
 Noise.
 Ventilation and temperature.
 Mental environment.
 Social environment.
Q8. To what extent you are motivated by your job?
The graph have been shown in 5-point scale.
Employees Response

40 37
40 35
30
25
20
15 15
10
5 7
0 1
0

1 Point 2 Point 3 Point 4 Point 5 Point

Graph 8

Employees Response:The above graph shows that out of 60 employees ,1 is

satisfied in 2-point scale, 15 are satisfied in 3-point scale, 37 in 4-point scale,
and 7 employees rated their job in terms of motivation in 5-point scale.
So, from the above graph it is clear that employees with more than 3-point
scale are satisfied with the job while less than 3-point scale are not satisfied
with the job assigned to them.
Q9. How is your relationship with other people in the organization?
Employees Response

52
5540
35
30
25
20
15
10
5 6
2
0
0

Fully Satisfied Partially Dissatisfied

Satisfied Satisfied
Graph 9

Employees Response: The above graph shows that out of the 60 employees, 52
are fully satisfied,7 are satisfied and 1employee is partially satisfied while no
employee were dissatisfied with the relation with other people.

So, we can say that most of the employees have good relations among
themselves. For better productivity of organisation they should maintain good
relations.
Q10. The amount of participation, which you feel with other management
people in decision-making?
Employees Response

40
40 35
30
25
25
20
15 18
10
5 12
5

Fully Satisfied Partially Dissatisfied

Satisfied Satisfied

Graph 10

Employees Response: The above graph shows that out of the 60 employees, 18
are fully satisfied, 25 people are satisfied and 12people are partially satisfied
while 5 employees are dissatisfied.
.
Hero is the pioneer in participative management in India. Most of the
people not understood the question and replied in different manner, which I
believe people have not understood in the right perspective. However, they
replied decision-making as the participative management.
Q11. What are the career opportunities given to you by your job?
Employees Response

40
40
35
31
30
25
20
15
10 12
10
5 7

Promotion Transfer Higher Increment

Pay

Graph 11

Executives Response: The above graph shows that out of the 60 employees, 10
view career opportunity in as a promotion, 7 view as a transfer ,12 as higher
pay while 31 employees view it as increment .
According to me they are not much aware of the career opportunities.
Q12. Are you satisfied with the educational facilities provided by HERO
for employee’s children?
Employees Response

40 40
35 29
30
25 16
20 10
15 5
10
0 5

Fully Satisfied Partially Dissatisfied

Satisfied Satisfied
Graph 12

Employees Response: The above graph shows that out of the 60 employees, 5
employees are fully satisfied, 10 are satisfied ,29 are partially satisfied while 16
are dissatisfied with the educational facilities provided to the wards of the
employees.

According to me people availing these educational facilities. There are

approximately one college and 12 schools . The organization is trying to give as
much better education to the children, the reason for the dissatisfaction for
some of the employees may be the quality of the education.
Q13. What other measures you would like to give for motivation program?
Since the employees which were taken under the prior consideration includes
the executives(15%),supervisors(35%) and the worker class(50%). So the
responses for the above question asked shows variety in thinking.

 management should give some opportunity for change in jobs as per skill
and attitude.(suggested by many of the worker class employees)

 Advance job training should be provided.(suggested by worker class

employees)

 Job rotation should be provided.(suggested by both supervisors and

worker class)

 More Cooperation of seniors.(by all three categories)

 Trade union activities must be minimized.(by the executives)

 Respect and regard of superiors.(by executives and supervisors)

 Fear and pressure on workers.(very few agreed in context with fear but
maximum favoured the pressure of work)

 Placement according to abilities & competitiveness.(by executives)

 Participation in management.(by supervisors)

 Proper communication should be implemented.(by supervisors and

workers)
 The wide knowledge should be given to workers.(by supervisors)

 Recognition, appreciation, involvement in job gives satisfaction.(by

supervisors and workers)
Q14. What other facilities you expect from the management?

This question was more accurately answered by the worker class and
supervisors up to some extent, so the main focus was paid towards the worker
class and they have expressed the following facts:

 Proper sitting facility in offices as per designation.(by supervisors)

 Job opportunity to the freshers.(by workers)

 Pension schemes for old age are made for HERO employees.( by
workers)

 Advance technical knowledge course. (by workers)

 Good housing for employees, free electricity to some limit.( by

workers )

 Freedom of job.( by workers and supervisors )

 Management should flow proper policies to ensure good working

conditions.( by workers)

 Availability of manpower and material and above all cares for

employees.(by supervisors)

 Better relationship should be developed between the workers of the

plant. (by supervisors)
  Management people should have cooperative nature.(by workers)

Q15. What other perks you expect for motivation, other than the salary?
This question again reveals ,that what according to them can motivate
them, keeping the perks aside. Some of the finest views are shared by the
workers and this was the question which took the maximum time for its
completion and here the views :-------

 Incentive schemes should be implemented in the plant.

 Human behaviour other than perks.

 Other than salary perks like provident fund, bonus, & other allowances
help motivation to some extent.
FINDINGS
According to me some findings on the issues are as below:

 Out of the 60 employees, all most all the executives are quite satisfied
with the job they withhold, but in contrast , the other two categories
shows the variation. The supervisors make the 35% contribution to the
data ie, about 21 in number & out of these 16 were quite satisfied
which makes 76% approx. and the worker class which constitutes
about 50% of the total sample ie, 30 in number & out of these 18-19
were quite satisfied which makes 60-63% approx.

 Almost all the employees of HERO are very much satisfied with the
medical facility that they get from HERO Hardwar. The reason for
some dissatisfaction that has been shown by some of the employees
that includes the worker class(they are 3 in number).

 The housing facility which the employees of HERO Hardwar are

getting are according to them are the best which the organization can
provide, well ventilated and good houses are there with the better
sanitation facilities and as the result of this the percentage of the fully
satisfied employees are to the larger side ie, 98% approx.

 The interesting and quite mixed responses had come into light when
the question regarding the promotion policy was asked form the
employees. About 23% of the employees(ie, about 14 in number)
were agreed to the promotion policy adopted by HERO, about 65% of
the employees(ie 39 in number ) were disagreed(it includes worker
class to the maximum extent) and about 12% of the employees(ie, 7
in number) were strongly disagreed to the fact that the promotion
policy adopted by HERO is not appropriate upto the great extent(it
 includes some supervisors and some worker class employees)

 According to me, HERO working conditions are good and is fully met
with: Proper lightening, Noise, Ventilation and temperature, Mental
environment, Social environment.

 Most of the employees have good relations among themselves.

 When asked from the employees that how they rate their job on the 5-
point scale the responses were towards the positive side, very few had
rated their job under 3 point except one, who belonged to the quality
control department of HERO, when asked why he is rating his job to
such a low point on scale the answer was quite shocking, he said that
the major reason for his low rating is that he has not work to do in the
department.

 HERO provides good educational facilities to the employees children

and there are approximately 1 college and 12 schools at HERO.
SUGGESTIONS

 HERO should make arrangement for the workers to skill them in all fields
& in all kinds of job regular training & education programs should be
arranged for the supervisor and executive so as to uplift them as multi-
skilled & to end monotony. In this way, the workers would also enjoy
their work.

 It is suggested that organization should make arrangement for routine,

energizing scheduled and should also be made compulsory for all class of
employees. This will also help the employees to remain fresh & healthy
at there work place.

 The management is requested to educate the employees about the policies

of the organization. Even there are some policies, which are to be
amended as per suggestions of employees.

 It is suggested that the procedure should be made more transparent to the

employees.

 Not only in papers but in practical employees should be strictly allowed

to participate in policymaking. It is suggested that there should be proper
communication establishment within the company right from top to lower
level so that the employees can convey there problems & give suggestion
to the top management & they should also be accepted accordingly this
will indeed also motivate the employees.

 It is suggested to the HERO organization to make perfect in same areas,

such as policies & procedures, working conditions & environment,
incentive to the workers, training and a better, effective union to workers.
 BIBLIOGRAPHY

1. http://www.managementhelp.org/email/form-to-add-content.htm

2. http://en.wikipedia.org/wiki/steam.

3. http://rd1.hitbox.com/rd? acct=WQ5907226K7DEMENo&p=S.

4. http://en.wikipedia.org/wiki/Motivation program .

5. http://www.aafp.org/fpm/accessories.

6. http://www.quintcareers.com/

7. http://www.herompc.co.in/tqm/Pc%20Position%20 Report%202004.doc.

8. Ashwathappa. k.(2007), Tata McGraw-Hill, Human Resource and Personnel

Management.
 ANNEXURE

Questionnaires Copy
Topic name: Motivation program of HERO employees
Focus group: Executives and Supervisors and worker.

Q1. Do you feel that employees in HERO are satisfied in job assigned to
them?
a. Fully Satisfied ( ) b. Satisfied ( )
c. Partially Satisfied ( ) d. Dissatisfied ( )

Q2. What actually you have understand by Motivation program.

Ans:………………………………………………………………………………
…………………………………………………………………………

Q3. How well you like your job?

a. Fully Satisfied ( ) b. Satisfied ( )
c. Partially Satisfied ( ) d. Dissatisfied ( )

Q4. Are you satisfied with the medical facility in HERO?

a. Fully Satisfied ( ) b. Satisfied ( )
c. Partially Satisfied ( ) d. Dissatisfied ( )

Q5. Are you satisfied with the housing facility at HERO?

a. Fully Satisfied ( ) b. Satisfied ( )
c. Partially Satisfied ( ) d. Dissatisfied ( )

Q6. Do you agree with the promotion facility in HERO? If so, at what
extent?
Ans:………………………………………………………………………………
…………………………………………………………………………

Q7. Are you satisfied with the working condition particularly at your work
place, also with the prevalent working condition?
a. Fully Satisfied ( ) b. Satisfied ( )
c. Partially Satisfied ( ) d. Dissatisfied ( )

Q8. To what extent you are motivated by your job? Give in 5-point scale?

1 2 3 4 5

Q9. How is your relationship with other people in organisation?

a. Fully Satisfied ( ) b. Satisfied ( )
c. Partially Satisfied ( ) d. Dissatisfied ( )

Q10. The amount of participation that you fell with other management
people in decision-making is adequate?
a. Fully Satisfied ( ) b. Satisfied ( )
c. Partially Satisfied ( ) d. Dissatisfied ( )

Q11. What are career opportunities given to you by your job?

Ans………………………………………………………………………………
……………………………………………………………………………..
Q12. Are you satisfied with the education facilities provided by HERO for
employee’s children?
a. Fully Satisfied ( ) b. Satisfied ( )
c. Partially Satisfied ( ) d. Dissatisfied ( )

Q13. What other measure you would like to give for motivation program?
Ans………………………………………………………………………………
……………………………………………………………………………...

Q14. What other facilities you expect from the management?

Ans………………………………………………………………………………
……………………………………………………………………………..

Q15. What other perks you expect for motivation, other than the salary?
Ans………………………………………………………………………………
……………………………………………………………………………...

Name of employee…………………………
Designation………………………………...