Reward

A PROJECT
ON
“A STUDY ON IMPACT OF REWARDS AND RECOGNITION
IN HINDUSTAN UNILEVER LTD.”
Project Report Submitted in Partial
Fulfillment of the requirement for the degree of
award of Degree of
MASTER OF BUSINESS ADMINISTRATION (MBA)
Submitted by
Prakash Chandra Moharana
Reg No: 1702003295
Under the guidance of

H R Wadhwa
Guide Reg No: MBADL0052
MARCH 2019
BONAFIDE CERTIFICATE
Certified that this project report titled “A STUDY ON IMPACT OF REWARDS AND
RECOGNITION IN HINDUSTAN UNILEVER LTD” is the bonafide work of “Prakash
Chandra Moharana” who carried out the project work under my supervision in the partial fulfilment of
the requirements for the award of the MBA degree.
H R Wadhwa
Guide Registration Number MBADL0052
DECLARATION BY THE STUDENT
I Prakash Chandra Moharana bearing Reg. No 1702003295 hereby declare that this project report entitled
A STUDY ON IMPACT OF REWARDS AND RECOGNITION IN HINDUSTAN

UNILEVER LTD Has been prepared by me towards the partial fulfilment of the requirement for the
award of the Master of Business Administration (MBA) Degree under the guidance of H R Wadhwa
I also declare that this project report is my original work and has not been
previously submitted for the award of any Degree, Diploma, Fellowship, or other
similar titles.
Place: Kolkata (PRAKASH CHANDRA MOHARANA)
Date: 17 March 2019 Reg. No. 1702003295.

TABLE OF CONTENT
CONTENT PAGE
NO.
➢ Acknowledgement 2
➢ Preface 4
➢ CHAPTER-1 7
Introduction
➢ CHAPTER-2 31
Industry Profile
➢ CHAPTER-3 36
Company Profile
➢ CHAPTER-4 50
Background of The study
➢ CHAPTER-5 59
Data Analysis & Interpretation
➢ CHAPTER-6 74
Findings &Suggestions
➢ CHAPTER-7 89
References
CHAPTER-1
INTRODUCTION
INTRODUCTION
“What is for me?” That is a question every person consciously or

unconsciously asks before engaging in any form of behavior. Obviously then it
applies to all employees in an organization.
Whether dealing with monkeys, rats or human beings, it is hardly controversial

to state that most organisms seek information concerning what activities are
rewarded, and then seek to do (or at least pretend to do) those things.
Like a child being given a chocolate and a big hug after cleaning her room,
rewards and recognition can be powerful tools for employee motivation and
performance improvement. People are patrons of organization. It’s people who
make an organization a success or allow it to be handed over to Board for
industrial and financial reconstruction. So today the main thrust area of study
is to attract and retain people.
Reward System
“Fat pay package, quicker promotions and incentives are not enough any
more. Employers need to listen what employees want.”
A ‘reward’ or ‘incentive’ can be anything that attracts a worker’s attention

and stimulates him to work.
In the words of Bureckm and Smith “reward systems is a plan or

programme to motivate individual or group performance.” An incentive
programme is most frequently built on monetary rewards, but also includes a
variety of non-monetary rewards or prizes
On the other hand French says the incentive system has a limited meaning
that excludes many kinds of inducements offered to people to perform work,
or to work up to or beyond acceptable stands. It is related with wage payment
plans which tie wages directly or indirectly to standard productivity or to the
profitability of the organization or both criteria.
The use of incentives assumes that people’s actions are related to their
skills and abilities to achieve important longer run goals. Even though many
organization by choice or by tradition or contract. In fact rewards on non
performance criteria, rewards should be regarded as a “pay off” the

performance.
Jack Zigon defines rewards as “something that increase frequency of an
employee action”. This definition points to an obvious desired outcome of
rewards and recognition: to improve performance.
An incentive plan has following important features:-
1. An incentive plan may consist of both ‘monetary’ and ‘non-monetary’

elements. Mixed elements can provide the diversity needed to match the
needs of individual employees.
2. The timing, accuracy and frequency of incentives are the very basis of a
successful incentive plan.
3. The plan requires that it should be properly communicated to the employees to
encourage individual performance, provide feedback and encourage
redirection.
Determinants of Rewards
These features are contingencies, which affect the suitability and design of
rewards to varying degrees. The effective use of rewards depends on 3
variables.
➢ Individual
➢ Work situation
➢ Incentive plan
1. The individual and the rewards:
Different people value things differently. Enlightened managers realize that

all people do not attach the same value to monetary rewards, bonuses, prizes
or trips. Employees’ view these things differently be of age, marital status
economical need and future objectives .however even though employees’
reaction to rewards varies greatly, rewards must have some redeeming merits.
For e.g. there might be a no of monetary and non monetary rewards to
motivate employees.
2. The work situation:
This is made up of four important elements,
1) Technology:
Machine or work system, if speed of equipment operation can be

varied, it can establish range of the rewards.
2) Satisfying Job Assignment:
A worker’s job may important a number of activities that he finds

satisfying. Rewards may take the form of earned time off, greater flexibility in
hour worked, extended vacation time and other privileges than individual
values.
3) Feedback:-
A worker needs to be able to see connection between works and rewards.

These responses provide important reinforcement.
4) Equity:-
Worker considers fairness or reasonableness as part of the exchange for

his work.
Rewards in general are important motivator. Their effectiveness depends
upon 3 factors.
• Drives
• Preference value and
• Satisfying value of the goal objects.
Types of Rewards
There are a number of ways to classify rewards. We have selected three

of the more typical dichotomies: intrinsic versus extrinsic rewards,
financial versus non-financial rewards, and performance-based
rewards. These categories are far from being mutually exclusive.
Intrinsic versus Extrinsic Rewards
Intrinsic rewards are the satisfactions one gets from the job itself. These
satisfactions are self- initiated rewards, such as having pride in one’s work,
having a feeling of accomplishment, or being part of team. These techniques
of job enrichment, shorter work-weeks, flex-time and job rotation can offer
intrinsic rewards by providing interesting and challenging jobs and allowing
employee greater freedom.
Extrinsic rewards include money, promotions and fringe benefits. Their
common thread is that they are external to the job and come from an outside
source, mainly management. Thus, if an employee experiences feelings of
achievement or personal growth from a job, we would label such rewards as
intrinsic. If the employee receives a salary increase or write-up in the
company magazine, we would label those rewards as extrinsic.
Motivational researchers had generally assumed that intrinsic and

extrinsic rewards were independent; that is, the stimulation of one would not
affect the other. However, research conducted in the late 1960s and early
1970s suggested that this assumption might be in error.
Early experiments designed to test the independence assumption

tended to support the proposition that when extrinsic rewards like money,
promotions or fringe benefits were used as payoffs for superior performances,
the internal rewards, which are derived from the individual doing what he or
she likes, were reduced. The explanation for these occurrences went
something like this. For money or other extrinsic rewards to be used as
effective motivators, they should be made contingent on the employee’s
performance. But when this is done it decreases the internal satisfaction the
employee gets from doing the job. What has happened is that an external
stimulus has been substituted for an internal one.
Financial versus Non financial Rewards
Rewards may or may not enhance the employee’s financial well-

being. If they do, they can do this directly- through wages, bonuses, profit
sharing and the like; or indirectly- through supportive benefits such as pension
plans, paid
vacations, paid sick leaves and purchase discounts.
Nonfinancial rewards cover a smorgasbord of desirable “things” that

are potentially at the disposal of the organization. Their common link is that
they do not increase the employee’s financial position. Instead of making the
employee’s life better off the job, non financial rewards emphasize making life
on the job more attractive. The non financial rewards that we will identify
represent a few of the more obvious; however, the creation of these rewards
is limited only by managers’ ingenuity and ability to assess “payoffs” within
their jurisdiction that individuals within the organization find desirable.
The old saying “one man’s food is another man’s poison” applies to
entire subject of rewards, but especially to the area of non financial rewards.
What one employee views as “something I have always wanted,” another finds
superfluous. Therefore care must be taken in providing the “right” non
financial reward for each person; yet where selection has been done
assiduously, the benefits to the organization should be impressive.
Some workers are very status conscious. A paneled office, a

carpeted floor, a large walnut desk or a private bathroom may be just office
furnishing that stimulates an employee toward top performance. Similarly
status oriented employees may value an impressive job title, their own
business cards, their own secretary or a well- located parking space with their
name clearly pained underneath the “Reserved” sign.
Some employees value having their lunch between one and two
o’clock in the afternoon. If lunch is normally from eleven in the morning until
noon, the benefit of being able to take their lunch at another, more preferred,
time can be viewed as a reward. Having a chance to work with congenial
colleagues and achieving a desired work assignment or an assignment where
the worker can operate without close supervision are all non financial rewards
that are within the discretion of management and, when carefully used, can
provide stimulus for improved performance.
Performance-Based versus Membership-Based Rewards
The rewards that the organization allocates can be said to be based

on either performance criteria or membership criteria. While the managers in
the most organizations will vigorously argue that their reward system pays off
for performance. Few organizations actually reward employees based on
performance.
Performance-based rewards are exemplified by the use of

commissions, piecework pay plans, incentive systems, group bonuses or other
forms of merit plan. On the other hand, membership-based rewards include
cost-of-living increases, profit sharing, benefits and salary increases
attributable to labour market conditions, seniority or time in rank, credentials
(such as collage degree or a graduate diploma), or future potential (the recent
M.B.A out of a prestigious university). The demarcation between the two is not
always obvious. For instance, company paid membership in a country club or
use of company-owned automobiles and aircraft by executive may be given for
membership or performance. If they are available to, all middle and upper
level executives, then they are membership based. However, if they are made
available selectively to certain managers based on their performance rather
than their “entitlement,” which of course implies they can also be taken away,
we should treat them as performance-based rewards for those who might
deem them attractive.
Advantages of the Performance Related pay (PRP) scheme
➢ Incentives are linked to meeting targets or objectives, as well as to the

quality of performance as perceived by superiors. Linking pay to performance
that lends itself to measurement is considered fairer then awarding across-the-
board cost of living increases, which do not discriminate between high and low
performers.
➢ Where employees’ performance can be measured and the amount of money

available to reward performance is sufficient to module effort, it saves money
if the organization targets rewards on those who performs.
➢ High performers are attached to PRP culture in the knowledge that pay is
linked productive effort and that poor achievement is discouraged.
➢ Employees receive useful feedback on their performance.
➢ There is an emphasis on a result oriented culture, with the accent on effort

directed at activities that the organization values.
Disadvantages of the PRP scheme
➢ Behavior is rewarded, which one would expect to occur any way in

accordance with the employment contract. Here good performance is expected
and provision is made for it and where there is a poor performance it is job of
the management to sort it out.
➢ Open communication between managers and subordinates could be

discouraged, because subordinates are less likely to divulge information on
personal short comings just in case such disclosures act to their disadvantage.
➢ The rewarding of self-centered individualism can undermine the co-

operation and team work, which are necessary for coping with today’s climate.
Importance
Never assume a particular reward is universally important to all employees.

Money, for example, can have a very different meaning to different people. It
may represent basic security and love, power, a measure of one’s
achievements or merely means to a comfortable life style. To some employees
1000/- Rs –a-month raise would be very important. Other employees, in the
same job and at the same salary level might far prefer an extra week of
vacation.
This different among employees was substantiated in a study undertaken

at a public utility. One hundred and fifty employees were asked to rank their
performance for rewards. It was found that the employees in general, rated
extra vacation as most preferred, followed by pay, a pension increase, paid
family insurance, early retirement and work schedule rearrangements, in
decreasing order. But this ranking varied among different employee groups.
For instance, the preference for insurance plan decreased with age, while
desire for more pension benefits increases. Married employees also valued
insurance plan more
than single employees, and this preference increased with number of

dependents.
Research indicates that the preference for rewards will be significantly

affected by age, marital status and number of children the employee has.
Young
unmarried person desire more time off the job and young married men rated
more vacation lower than family health coverage, or that older employees
seek increased retirement benefits while younger workers opt for more cash.
In expectancy theory terms, motivation is optimized when employees

see rewards satisfying their individual needs. Therefore a good reward system
should be designed to offer heterogeneous rewards to a heterogeneous labour
force. Employees should be rewarded with what they individually consider
important.
One effort to broaden the idea of individualizing rewards has been

labeled ‘cafeteria compensation’. In contrast to the traditional manner in which
fringe benefits are allocated- all employees get the same package which best
satisfies his or her current needs. Specifically where cafeteria-type flexible
compensation exists, employees are told what their total compensation is, and
they can choose a mix salary, life insurance, deferred compensation and other
benefits suit their particular needs.
The advantages of flexible compensation go beyond merely allowing

employees to customize their own compensation package. This method
involves little in additional direct costs, it makes clear to employees how much
the organization is actually spending to compensate them and it ensure that
the money will be spent only on the rewards the employees want. On the
negative side, there is the tendency for employees to think in short- range
rather than long- range terms. Most organizations that have instituted a
cafeteria plan actually provides all employees with minimum insurance and
pension benefits and let each employees select additional rewards to suit his
or her own needs.
Equitable Distribution
Employees desire rewards that are distributed in what seems to be an

equitable manner. This means fairness among the organization’s employee
and
fairness relative to what people get for doing a similar job in another
organization. Equity theory has been proposed to explain what happens when
individuals perceive an imbalance between what they put into job and what
they get out of it relative to others’ give-and-get ratio.
It is no secret that employees make comparisons between themselves

and their peers. Employees perceive what they get from a job situation in
relation to what they must put into. They also compare their input-outcome
ratio with the input-outcome ratio of their peers. If a person’s ratio and that of
others are perceived to be equal, a state of equity is said to exist. If they are
unequal, in-equality exists. That is, the individual views herself or himself as
under rewarded or over rewarded. Equity theory argues that when an
inequality is seen as aversive, the individual will attempt to correct it.
Evidence indicates that the referent chosen by the employee is an

important variable in equity theory. The three referent categories have been
classified as “other”, “system” and “self”. The “other” category includes other
individuals with similar jobs in the same organization, as well as friends,
neighbors or professional associates. Based on information that employees
receive through word of mouth or through newspapers and magazines on such
issues as executive salaries or recent union contract, employees can compare
their pay relatively to that of others.
The “system” category considers organizational pay policies and

procedures and administration of this system. It considers organization wide,
implied and explicit, pay policies. Organization precedents in terms of
allocation of pay would be a major determinant in the category.
The “self” category refers to input-outcome ratios unique to the

individual that differ from the individual’s current input-outcome ratio. This
category is influenced by such criteria as past jobs or commitments that must
be met in terms of family role.
The choice of particular set of referents is related to the information
available about referents as well as their perceived relevance. Based on equity
theory, employees may choose one or more five alternatives.
1) Distort either their own or others’ input or outcomes
2) Behave in some way so as to induce others to change their inputs or
outcomes
3) Behave in some way as to change their own inputs or outcomes
4) Choose a different comparison referent
5) Leave the organization
6) Visibility
A reward that is not visible to the employee may fail to get the desired
motivating effect from employee. On the other hand, a truly visible reward
gets the attention not only of employees but also their peers. This latter
qualify means visible rewards can contribute to satisfying an employee’s
esteem and recognition needs.
In what ways can managers increase the visibility of rewards?

Possibilities include well-publicized bonuses, allocating annual salary increases
in a lump sum rather than spreading them out over the entire year, and
eliminating the secrecy surrounding pay by openly communicating everyone’s
compensation.
Some organizations have successfully maximized the value of rewards

by making them both impressive in size and highly visible. Probably the most
widely discussed and controversial approach to increasing the visibility of
rewards is to eliminate the traditional secrecy surrounding pay. The
proponents of openness argue that pay secrecy actually demotivates
employees. Secrecy may tend to work to the disadvantage of using money to
motivate managers because even most carefully derived pay schedule and
differentials may be seen as potentially less rewarding as they actually are.
The misperception of pay contributes to dissatisfaction with pay, and secrecy
regarding pay contributes to this misperception.
Complete openness about pay policies is indeed rare in organizations. If such

information were common knowledge, employees would undertake to compare
their salaries with those of everyone else and the inevitability of human error
would reveal any inequalities in pay system. There would be
misunderstandings, petty complaints, increased dissatisfaction and perceived if
not real inequalities. Whether it is true or not, almost everyone thinks him or
her worth more than the next person. On the other hand, an open pay system
demonstrates confidence by management in the structure of compensation
and hence it should increase the trust individuals have in the organization.
Flexibility
An effective reward is one that has the flexibility to vary with changes in
performance. If an employee’s job performance declines in 1987, the rewards
he received in 1986 should ideally have downside adjustment capability.
An effective reward would be flexible in terms of the amount given to
everyone in the organization. The annual performance bonus, for instant,

offers high flexibility. It can be adjusted upward or downward or eliminated,
each year depending on some measure of performance. Additionally, it can be
given selectively to those employees who have done a superior job.
Another attribute of flexible reward is that it be given frequently without

losing importance. Giving rewards frequently is often helpful foe sustaining
extrinsic motivation, yet some rewards diminish in importance when used over
time. As a case in point, praise is a flexible reward in that its amount can be
varied in allocation to and among individuals. However, it suffers from
diminishing returns. Continued use of praise results in the reward losing its
importance.
Low Cost
The final quality of an effective reward is low cost. Rewards are not free
goods, and the organization must consider the costs along with the benefits
from any rewards. A high-cost reward simply cannot be given out as often,
and when it is, it reduces organizational effectiveness as a result of its cost. All
other factors equal, the lowest-cost reward should be preferable to
management.
DESIGNING A REWARD PROGRAM
The keys to developing a reward program are as follows:
• Identification of company or group goals that the reward program will support
• Identification of the desired employee performance or behaviors that will
reinforce the company's goals
• Determination of key measurements of the performance or behavior, based on
the individual or group's previous achievements
• Determination of appropriate rewards
• Communication of program to employees
In order to reap benefits such as increased productivity, the
entrepreneur designing a reward program must identify company or group
goals to be reached and the behaviors or performance that will contribute to
this. While this may seem obvious, companies frequently make the mistake of
rewarding behaviors or achievements that either fails to further business goals
or actually sabotage them. If teamwork is a business goal, a bonus system
rewarding individuals who improve their productivity by themselves or at the
expense of another does not make sense. Likewise, if quality is an important
issue for an entrepreneur, the reward system that he or she designs should
not emphasize rewarding the quantity of work accomplished by a business
unit.
Properly measuring performance ensures the program pays off in terms of business
goals. Since rewards have a real cost in terms of time or money, small
business owners need to confirm that performance has actually improved
before rewarding it. Once again, the measures need to relate to a small
business' goals. As Linda Thornburg noted in HR Magazine, "Performance
measures in a rewards program have to be linked to an overall business
strategy…. Most reward programs use multiple measures which can include
such variables as improved financial performance along with improved
customer service, improved customer satisfaction, and reduced defects."
When developing a rewards program, an entrepreneur should consider

matching rewards to the end result for the company. Perfect attendance might
merit a different reward than saving the company $10,000 through improved
contract negotiation. It is also important to consider rewarding both individual
and group accomplishments in order to promote both individual initiative and
group cooperation and performance.
Lastly, in order for a rewards program to be successful, the specifics need to

be clearly spelled out for every employee. Motivation depends on the
individual's ability to understand what is being asked of her. Once this has
been done, reinforce the original communication with regular meetings or
memos promoting the program. Keep your communications simple but
frequent to ensure staffs are kept abreast of changes to the system.
REWARD VS. RECOGNITION
Although these terms are often used interchangeably, reward and

recognition systems should be considered separately. Employee reward
systems refer to programs set up by a company to reward performance and
motivate employees on individual and/or group levels. They are normally
considered
separate from salary but may be monetary in nature or otherwise have a cost
to the company. While previously considered the domain of large companies,
small businesses have also begun employing them as a tool to lure top
employees in a competitive job market as well as to increase employee
performance.
As noted, although employee recognition programs are often combined

with reward programs they retain a different purpose altogether. Recognition
programs are generally not monetary in nature though they may have a cost
to
the company. Sue Glasscock and Kimberly Gram in Productivity Today

differentiate the terms by noting that recognition elicits a psychological benefit
whereas reward indicates a financial or physical benefit. Although many
elements of designing and maintaining reward and recognition systems are the
same, it is useful to keep this difference in mind, especially for small business
owners interested in motivating staffs while keeping costs low.
Some Rewards which are used in different organizations
1. Best Agent/ consultant /employee / Star performer of the month /

quarter.
2. Best Management - For heads who right hand for management too in all
activities.
3. Best Technical Leadership - head of R & D, next level to management who

do mostly program & new projects.
4. Most Efficient Employee - middle level mgt, who does his work without
any expectation from mgt.
5. Best Loyalty - Who worked lot for co. benefit & growth as a friend.
6. Most Progressive Employee - Newly joined employee
7. Best New Comer - Newly joined employee
8. Best Employee of the department - best in embedded prg.
9. Extra miler of the team/ department - in respective field
10. High Value Sales - huge order in single (from one co.)
11. Best Contributor for the team / department
12. Perfect attendance award- who is not taken leave

13. Best Software Support
14. Best System Support
You can also give them gifts like T-shirt with company logo Jackets,
Mementos, Movie tickets, concert tickets, certificates.
Planning the compensation strategy
Most senior managers wish, at least at times, that they could ignore
compensation. No other organizational system is so weighed with values and
emotions, so visible to employees or so much the subject of internal dissent.
Nearly everyone has opinions—usually strong opinions—about rewards. Any
change in compensation usually attracts loud complaints from employees
who feel disadvantaged by the change.
The topic of rewards is rife with myths that are widely accepted but
contradicted by extensive research. In view of these difficulties, can busy
senior managers safely take the easy way out and leave compensation
decisions to their compensation specialists? Or should they devote significant
personal attention to compensation? Senior managers should be heavily
involved in getting the strategic direction for compensation, and there are
some fundamental choices senior managers need to make during this
process.
Compensation systems demanded less senior management attention

only a few years ago. At that time, senior managers generally left the design
of employee compensation systems to technical specialists. This was
possible partly because professionally managed compensation systems
looked very much alike from one company to another.
For most firms, the goal of compensation design was simply to avoid
a competitive disadvantage by keeping labour costs in line with those of
competitors, and the goal of compensation administration was to keep
employee noise down. The picture has changed greatly during the past
decade, as companies throughout the economy have begun to rethink their
compensation systems in search for competitive advantage.
Base pay, incentives, benefits and pay for corporate performance all
have changed dramatically. Studies of Fortune 1000 firms (Lawler, Mohrman
and Ledford) from 1986 to 1997 show large increases in the percentage of
Fortune 1000 using a variety of compensation innovations.
For example, there has been a 50 percent increase in companies
using pay for skills, knowledge and competencies. A 50 percent increase in
companies using work group or team incentives; and a 100 percent increase
in firms using flexible benefit systems.
The strategic demands of new competitive forces, new organizational

forms, and increase in knowledge work and recognition of the importance of
compensation to organizational effectiveness have largely driven these
changes. Top managers can no longer afford to leave compensation solely in
the hands of compensation professionals.
There are some basic principles of compensation strategy senior

managers need to understand. The alignment of compensation with business
needs, the goals of the compensation system, reward system levers and
basic choice managers need to make are among these principles. A
foundation of knowledge will help senior managers use compensation as an
important tool for managing the business.
Myths about rewards that never die #1:
Money doesn’t motivate, it’s only a hygiene factor
Bad ideas about compensation never die, they just re-circulate.
The idea that money doesn’t motivate employees has been around
since decades. It received its most famous formulation in the work of
Fredrick Herzburg. He claimed that intrinsic sources of motivation rising from
the design of work are much more important than the extrinsic sources,
such as pay, in determining the level of employee motivation. In Hertzberg’s
view extrinsic sources are “hygiene” factors that can have anegative effect
but not a positive effect on motivation, while intrinsic sources are true
motivators. However, while Hertzberg is remembered for his emphasis on
the importance of intrinsic motivation, contemporary motivation in scholars
almost universally reject his claim that extrinsic rewards do not motivate.
A more recent view is expressed by Alfie Kohn, a polemicist whose

highly biased and incomplete review of the reward literature might have
remained obscure had it not been excerpted in the Harvard Business Review.
Kohn argues that extrinsic rewards cannot work for several reasons. He
argues that extrinsic rewards such as pay need not be provided continually
to be effective, whereas intrinsic rewards such as work design are available
to employees without continuous management action.
However, we are unimpressed with the discovery that you can’t pay
employee for performance just once—you have to keep paying them.
Kohn rehashes Hertzberg’s discredited arguments about motivators

and hygiene factors.
Myths about rewards that never die #2:
A happy worker is a productive worker
One of the most enduring myths about rewards systems is “a happy

worker is a productive worker.” That is, if we just make employees happier
(or more modestly, if we just increase job satisfaction), productivity will
follow as day follows night.
This myth dates back to at least to the dawn of the industrial

revolution. It has great appeal for a number of reasons. It lets managers
ignore pay system issues altogether. Why bother with costly, complicated
pay systems if a friendly management style or an employee-centered
culture, or generous benefits can make workers both happier and more
productive? In fact, management may hope that employees will work for
less money if they are happier (while being more productive).
Employees also adopt this myth and use it to turn the tables on
management, arguing that any improvement in pay or working conditions
will reward management with higher productivity, ultimately making the
added rewards “free”. This is like asking Santa Claus for presents. Seemingly
no one has to pay for them.
Unfortunately, the popular belief that happiness leads to productivity

is not supported by the evidence. Literally, hundreds of studies have
examined the relationship between employee attitudes such as job
satisfaction and productivity. (Of course, satisfaction is not the same thing
as happiness, but the two obviously are closely related).
In every decade since the 1950s a major review of this ever-growing

literature has reached the same conclusion: that is, the relationship between
satisfaction and productivity is detectable, but too small to be of practical
significance. Well the relationship exists, it may well be because more
productive people tend to be rewarded for their higher performance, and this
happiness may be the indirect result rather than the cause of productivity.
Making people happier makes them stay in the organization longer—that is,
it reduces turnover—but it does not necessarily make them more productive.
.
CHAPTER-2
INDUSTRY PROFILE
INDUSTRY PROFILE
The fast moving consumer goods (FMCG) segment is the fourth

largest sector in the Indian economy. The market size of FMCG in India is
estimated to grow from US$ 30 billion in 2011 to US$ 74 billion in 2018.
Food products is the leading segment, accounting for 43 per cent of the overall
market. Personal care (22 per cent) and fabric care (12 per cent) come next in
terms of market share.
Growing awareness, easier access, and changing lifestyles have been the key
growth drivers for the sector.
What are FMCG goods?

FMCG goods are popularly known as consumer packaged goods. Items in this
category include all consumables (other than groceries/pulses) people buy at
regular intervals. The most common in the list are toilet soaps, detergents,
shampoos, toothpaste, shaving products, shoe polish, packaged foodstuff, and
household accessories and extends to certain electronic goods. These items
are meant for daily of frequent consumption and have a high return.
Rural – set to rise

Rural areas expected to be the major driver for FMCG, as growth continues to
be high in these regions. Rural areas saw a 16 per cent, as against 12 per cent
rise in urban areas. Most companies rushed to capitalise on this, as they
quickly went about increasing direct distribution and providing better
infrastructure. Companies are also working towards creating specific products
specially targeted for the rural market.
The Government of India has also been supporting the rural population with
higher minimum support prices (MSPs), loan waivers, and disbursements
through the National Rural Employment Guarantee Act (NREGA) programme.
These measures have helped in reducing poverty in rural India and given a
boost to rural purchasing power.
Hence rural demand is set to rise with rising incomes and greater awareness of
brands.
Urban trends
With rise in disposable incomes, mid- and high-income consumers in urban

areas have shifted their purchasing trend from essential to premium products.
In response, firms have started enhancing their premium products portfolio.
Indian and multinational FMCG players are leveraging India as a strategic
sourcing hub for cost-competitive product development and manufacturing to
cater to international markets.
Top Companies
According to the study conducted by AC Nielsen, 62 of the top 100 brands are
owned by MNCs, and the balance by Indian companies. Fifteen companies own
these 62 brands, and 27 of these are owned by Hindustan UniLever.
The top ten India FMCG brands are:
1.Hindustan Unilever Ltd.

2. ITC (Indian Tobacco Company)
3. Nestlé India
4. GCMMF (AMUL)
5. Dabur India
6. Asian Paints (India)
7. Cadbury India
8. Britannia Industries
9. Procter & Gamble Hygiene and Health Care
10. Marico Industries
What the millenniums expect
According to a study by TMW and Marketing Sciences that surveyed 2,000

people across different age groups ranging, young consumers are the most
‘rational’ and likely to spend more time weighing up potential purchases. The
survey also suggests that younger people are using recommendations from
their peers about products and services in order to make rational purchase
decisions. According to the study, shoppers aged 18 to 24 are 174 per cent
more likely to use recommendations on social media than shoppers aged 25
and over.
Another key factor today is – speed. Today's consumer wants packaged goods
that work better, faster, and smarter. The “ need for speed" trend highlights
the importance of speed as a potentially decisive purchase factor for packaged
goods products in a world where distinctions between products are shrinking.
Younger consumers express the greatest need for speed, not a huge surprise
for the smartphone generation. Datamonitor's 2013 Consumer Survey found
that younger consumers those in the 15-24 year old age group were twice as
likely to say that "results are achieved quickly" has a "very high amount of
influence" on their health and beauty product choices than consumers in the
oldest age group, those aged 65 or older. Speed matters, and 2014 will almost
certainly see the introduction of new game-changing timesavers.
Road Ahead
FMCG brands would need to focus on R&D and innovation as a means of

growth. Companies that continue to do well would be the ones that have a
culture that promotes using customer insights to create either the next
generation of products or in some cases, new product categories.
One area that we see global and local FMCG brands investing more in is health
and wellness. Health and wellness is a mega trend shaping consumer
preferences and shopping habits and FMCG brands are listening. Leading
global and Indian food and beverage brands have embraced this trend and are
focused on creating new emerging brands in health and wellness.
According to the PwC-FICCI report Winds of change, 2013: the wellness

consumer, nutrition foods, beverages and supplements comprise a INR 145
billion to 150 billion market in India, is growing at a CAGR of 10 to 12%.
Investments −
FMCG sector witnessed healthy FDI inflows of USD 11,628.76 million, during
April 2000 to December 2016. − Within FMCG, food processing was the largest
recipient having a share of 64.36% − US based dairy giant - Schreiber
Dynamix Dairies, opened its 1st fully-automated infant nutrition plant, at
Baramati, Maharashtra, with an investment of USD 37.18 million. − Britannia
signed a MoU with a Greek baker – Chipita, to produce bakery items such as
croissants, rolls & various dough products. The venture is worth an investment
of USD 11 million, where Britannia will be looking after functions like logistics
costs, supply-chain & distribution network.
CHAPTER 3
COMPANY PROFILE
COMPANY PROFILE
Hindustan Unilever Limited (HUL) is India's

largest Fast Moving Consumer Goods company
with a heritage of over 80 years in India. On
any given day, nine out of ten Indian
households use our products to feel good, look
good and get more out of life – giving us a
unique opportunity to build a brighter future.
HUL works to create a better future every day

and helps people feel good, look good and get more out of life with brands and
services that are good for them and good for others.
With over 35 brands spanning 20 distinct categories such as soaps,

detergents, shampoos, skin care, toothpastes, deodorants, cosmetics, tea,
coffee, packaged foods, ice cream, and water purifiers, the Company is a part
of the everyday life of millions of consumers across India. Its portfolio includes
leading household brands such as Lux, Lifebuoy, Surf Excel, Rin, Wheel, Fair &
Lovely, Pond’s, Vaseline, Lakmé, Dove, Clinic Plus, Sunsilk, Pepsodent,
Closeup, Axe, Brooke Bond, Bru, Knorr, Kissan, Kwality Wall’s and Pureit.
The Company has about 18,000 employees and has a net sales of INR 33895
crores (financial year 2016-17). HUL is a subsidiary of Unilever, one of the
world’s leading suppliers of Food, Home Care, Personal Care and Refreshment
products with sales in over 190 countries and an annual sales turnover of
€52.7 billion in 2016. Unilever has over 67% shareholding in HUL.
HUL History
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.
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 67.25%
equity in the company. The rest of the shareholding is distributed among
about three lakh 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 1996, 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.
HUL formed a 50:50 joint venture with the US-based Kimberly Clark
Corporation in 1994, Kimberly-Clark Lever Ltd, which markets Huggies Diapers
and Kotex Sanitary Pads. HUL has also set up a subsidiary in Nepal, Unilever
Nepal Limited (UNL), and its factory represents the largest manufacturing
investment in the Himalayan kingdom. The UNL factory manufactures HUL's
products like Soaps, Detergents and Personal Products both for the domestic
market and exports to India.
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
1994, 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 BBLIL launching the Wall's range of

Frozen Desserts. By the end of the year, the company entered into a strategic
alliance with the KwalityIcecream 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 H
UL, 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
Productsexports.
HUL launched a slew of new business initiatives in the early part of 2000’s.
Project Shakti was started in 2001. It is a rural initiative that targets small
villages populated by less than 5000 individuals. It is a unique win-win
initiative that catalyses rural affluence even as it benefits business. Currently,
there are over 45,000 Shakti entrepreneurs covering over 100,000 villages
across 15 states and reaching to over 3 million homes.
In 2002, HUL made its foray into Ayurvedic health & beauty centre category
with the Ayush product range and Ayush Therapy Centres. Hindustan Unilever
Network, Direct to home business was launched in 2003 and this was followed
by the launch of ‘Pureit’ water purifier in 2004.
In 2007, the Company name was formally changed to Hindustan Unilever

Limited after receiving the approval of share holders during the 74th AGM on
18 May 2007. Brooke Bond and Surf Excel breached the theRs 1,000 crore
sales mark the same year followed by Wheel which crossed the Rs.2,000crore
sales milestone in 2008.
HUL completed 80 years of corporate existence in India on October 17th,

2013.
BOARD OF DIRECTORS
Mr Harish Manwani
Chairman
MrSanjiv Mehta
CEO & Managing Director
MrSrinivasPhatak
Executive Director, Finance and IT and Chief Financial Officer
MrPradeep Banerjee
Executive Director, Supply Chain
MrAditya Narayan
Independent Director
Mr S. Ramadorai
Mr O. P. Bhatt
DrSanjivMisra
MsKalpanaMorparia
Product range of the company includes:

Home & Personal care
Personal wash
• Lux
• Breeze
• Lifebuoy
• Dove
• Liril
• Pears
• Hamam
• Rexona
Laundry
• Surf Excel
• Rin
• Wheel
• Sunlight
Hare care
• Sunsilk Naturals
• Clinic
Deodorant
• Axe
• Rexona
Ayurvedic Personal & Health Care
• Ayush
Skin Care
• Fair & Lovely
• Pond's
• Vaseline
• Aviance
Oral Care
• Pepsodent
• Closeup
Colour Cosmetic
• Lakme
Foods
Tea
• Brooke Bond
• Lipton
Coffee
• Brooke Bond Bru
Foods
• Kissan
• Annapurna
• Knorr
Ice Cream
• Kwality Wall's
Hindustan Unilever Foundation
According to estimates, by 2030 the supply of water in India will be half its
demand. To understand and partake in meeting this challenge, we set up
Hindustan Unilever Foundation (HUF) in 2010, a not-for-profit company that
acts as a vehicle to anchor water management related community
development and sustainability initiatives of Hindustan Unilever Limited. HUF
operates the ‘Water for Public Good’ programme, with specific focus on water
associated livelihoods, in 54 districts across India in partnership with 20 NGOs
and encouraging them to tie up various co-funding arrangements. HUF also
supports several knowledge initiatives in this area.
water conservation programme undertaken through collective action and in

partnership with NGOs, communities, other co-funders and partners across
India has achieved the following by 2016:
• Water conservation: A potential of more than 300 billion litres has been created
through improved supply and demand management of water
• Agriculture and Biomass yield: The projects undertaken by the Company have
generated additional agriculture and biomass production of more than six lakh
tonnes.
• Person days: These projects have generated more than 37,00,000 person days
of employment.
• Capacity building: Over 1,70,000 persons have been trained in water
conservation activities, better agricultural practices and related areas.
• The cumulative impact of these projects initiated by HUF have been
independently assured.
The ambition of HUF is to create 500 billion litres of water conservation

potential in a cumulative and collective way.
Corporate governance
I believe that nothing can be greater than a business, however small it may
be, that is governed by conscience; and that nothing can be meaner or more
petty than a business, however large, governed without honesty and without
brotherhood.”
-William Hesketh Lever
Transparency and accountability are the two basic tenets of Corporate

Governance. We, at Hindustan Unilever, feel proud to belong to a Company
whose visionary founders had laid the foundation stone for good governance
long back and made it an integral principle of the business, demonstrated in
the words above.
HUL policies
HUL is committed to providing the very best not only to our customers but also
to the environment.
Corporate Social Responsibility Policy
HUL is committed to operate and grow its business in a socially responsible

way. Our vision is to grow our business whilst reducing the environmental
impact of our operations and increasing our positive social impact.
Environment Policy
The aim of the Policy is to do all that is reasonably practicable to prevent or
minimise, encompassing all available knowledge and information, the risk of
an adverse environmental impact arising from processing of the product, its
use or foreseeable misuse.
Quality Policy
Our Quality Policy describes the principles that everyone in Unilever follows,
wherever they are in the world, to ensure that we are recognised and trusted
for our integrity, the quality of our brands and products, and the high
standards we set.
Safety & Health Policy

Hindustan Unilever Limited (HUL) supplies high quality goods and services to
meet the daily needs of consumers and customers.
Affirmative Action Policy
HUL is a signatory to the CII Code of Conduct on Affirmative Action and affirms
its recognition.
Corporate Information
Registered Office & Hindustan Unilever Limited,

Research Centre Unilever House,
B. D. SawantMarg,
Chakala, Andheri (E),
Mumbai - 400 099.
Tel : + 91 (22) 3983 0000
Executive Director, DevBajpai,

Legal & Email :
Corporate Affairs and [email protected]
Company Secretary Tel nos. : +91-22-398
32557/32532/32312
Statutory Auditors B S R & Co. LLP

1st Floor, LodhaExcelus
Apollo Mills Compound
N M Joshi Marg, Mahalakshmi
Mumbai – 400 011
Solicitors Crawford Bayley& Co.

State Bank Building
N.G.N. VaidyaMarg
Mumbai – 400 023
Registrar and Share Karvy Computershare Private

Transfer Agents Limited
Unit : HINDUSTAN UNILEVER
LIMITED
Karvy Selenium, Tower B,
Plot No. 31 & 32, Gachibowli,
Financial District, Nanakramguda
Hyderabad – 500 032
Phone : +91- 40 - 67161700
Fax : +91- 40 - 67161680
Toll Free no. : 1800-345-4001
Email : [email protected]
Website : www.karvy.com
Subsidiary Unilever India Exports Limited

Companies Unilever Nepal Limited
Lakme Lever Private Limited
Pond’s Exports Limited
Daverashola Estates Private Limited
Jamnagar Properties Private Limited
Levers Associated Trust Limited
Levindra Trust Limited
Hindlever Trust Limited
Hindustan Unilever Foundation
Bhavishya Alliance Child Nutrition
Initiative
CHAPTER-4
BACKGROUND OF THE STUDY

BACKGROUND OF THE STUDY
REVIEW OF LITERATURE
“…The pay package is one of the most obvious and visible expressions of
employment relationship, it is main issue in exchange between employees and
employer expressing connection between individual work and performance
employing organization itself”
HegeWisch and Ganguli O, N, (1967), in his study found "pay and allowances
as the most important factor causing satisfaction or dissatisfaction to workers"
Singh ET. al. (1977) in a study of organizational culture and its impact
on managerial remuneration concluded that the demands for money was
significantly influenced by the quality of organizational culture and that it can
substantially be reduced by improving the quality of organizational
culture. Findings such as those suggest that satisfaction, task involvement,
demand for money and commitment are largely determined by organizational
culture.
According to Fred Luthans (1981), "inequality occurs when an individual

perceives that the ratio of his outcomes to input and the ratio of relevant
others outcome to input are unequal"
Rowlinson (1988) one of the American vice presidents whose company

observed and concluded that recognition speaks to the employee receiving it
and awards and only one aspect of it. The symbolism, meaning and intrinsic
value attached to the reward are equally important. Although the gold plated
carriage clock, watch all engraved tinkered in recognition of long service is
probably most prominent form of recognition award in U.K.
Judy L. Agnew and William K. Redmon, (1992), indicates that the organization
may have the latest technology, well -thought out strategic plans, detailed job
descriptions and comprehensive training programmes, but unless the people
are rewarded for their performance-related behaviours, the "up-front" variable
(technology, plans and so on) or the rules that govern their behaviour have
little impact". Pay and allowances as the most important factor causing
satisfaction or dissatisfaction to workers
Steve Williams and Fred Luthans (1992) stated that, "the choice of reward
interacting with feed back had a positive impact on task performance".
Simon (1992) after thorough study suggested that employees should be given
cash bonuses and prizes for meeting sales targets, customer services and
cleanest store. For special yearly competition when only few people gain prizes
should be precious and can range from holiday voucher, a set of 2 tickets for
an all expense paid trip to Hollywood.
One example is Vodafone Australia. When Vodafone introduced the liveyourlife

reward and recognition program they had turnover rates around 30 per cent
per year. That rate has reduced to just 18 per cent (Human Resources 2005)
predominantly due to the company focusing on its culture and its people. The
liveyourlife incentive program is a major part of the people retention initiative.
By offering experiential benefits as part of their remuneration structure, the
dynamic Managing Partner encouraged Gardens to be known as an innovative,
progressive and fun law firm.
The National Australia Bank approached liveyourlife to customize a team based

experiential reward program for a project that involved employees in every
branch of the Bank across Australia, including remote regional areas.

Liveyourlife customized a specific team based reward program including the
development of specific team experiences for branches in regional areas. The
customized liveyourlife team based reward program was delivered with great
success.
Other liveyourlife clients who have successfully used the liveyourlife program
in unique and innovative ways include leading organizations across a range of
industry fields including the finance, insurance, professional services,
telecommunications, FMCG and manufacturing. Our liveyourlife clients are
happy to talk about their experiences, so please contact liveyourlife if you
would like further details.
Problem Statement:
Productivity is a vital component in every organization and its people are the
effective means for improving productivity. Without a dedicated, committed

and enthusiastic workforce, the objective of optimum level of productivity
cannot be achieved. But these traits cannot be bought from the market. They
have to be developed in the people comprising the organization. Therefore, the
enlightened and progressive management has to create conductive work
environment where people are continuously motivated to realize their
potentialities. That‘s why human resource development seeks to achieve in an
organization. Liberalization in the Indian insurance sector has opened the
sector to private competition. A number of Steel companies have set up
representative offices in India and have also tied up with various asset
management companies. All these developments have forced the Steel
companies to be competitive. What makes a firm best is not just technology,
bright ideas, masterly strategy or the use of tools, but also the fact that the
best firms are better organized to meet the needs of their people; to attract
better people who are more motivated to do a superior job. In this manner the
management of human resources becomes very crucial.
SIGNIFICANCE OF THE STUDY
The above study is made for the participants who are involved in the routine
activities of the industries. The participants are as follows. Management,
investors, creditors, government, employees and trade unions, societies and
others.
MANAGEMENT’S VIEW
The above study plays a vital role in providing such information. This in turn
would create foundation for its decision making and will also control the
activities. Management can construct its future plan based on the facts and the
figures of the report. Management can also do the analysis of what worked
and what not based on the output achieved. Irrespective of changing needs,
cost, financial conditions, availability of resources, technologies etc. employees
are only responsible for the higher productivity in the organization. If
employees are engaged, satisfied and motivated; labour productivity will also
be higher.
INVESTORS
The financial position of the company which is reflected in earning per share
ROI (Return on Investment) helps to attract investors. The labour productivity
plays a crucial role to gain the recognition and confidence in market.
CREDITORS
Creditors who are involved in the business with the company studies its
performance by credit ratio, acid test ratio, equity and capitalization. Etc. The
study of it describes real features of the business organization to creditors.
GOVERNMENT
Government has significant role to study labour productivity and financial

efficiency of individual organization. As it is involved in taxation, revenue
control, sanction and other activities.
EMPLOYEES AND TRADE UNIONS
Human resources are most important and valuable resources for any
organizations that are involved and interested to study financial position and
profit of the company. They analyze comparison of past and present actors to
find growth and opportunities in the organization.
Productivity acts as an effective tool for assessing employee performance
and evaluation of machine, system, team, section, division, industry and
national economy.
Productivity plays a role of yardstick for comparing the effectiveness at

work.
Productivity helps to guide to find problematic unit and which further helps
to identify possible remedial measures.
Organizations can have competitive advantage if productivity is high.
It helps to create benchmark which further helps to increase market share

and higher sales can be achieved.
The ultimate goal of any business is to earn goodwill in the market and to
become leader in the market which is possible through increasing productivity.
The contribution to excel in the performance, profits, progress and goodwill

is possible through improving productivity.
OBJECTIVE OF THE STUDY
1) To study rewards and recognition system of Hindustan Unilever Ltd.

2) To study the effect of extrinsic rewards (remuneration, bonus, salary and
promotion) in organization performance.
3) To study the effect of intrinsic rewards (praise and recognition) on
organization performance.
4) To study employees’ view toward rewards and recognition system.
REWARD & RECOGNITION SCHEMES OF HUL
PURPOSE:
1) To recognize the achievements of theemployees
2) To motivate the employees to perform better
3) To increase the sales revenue and the profit margins of thecompany

CATEGORIES:
ON THE
SPOT
MONTHLY QUARTERLY
SOM CUSTOMER A-T BOOK

DELIGHT
SAQ TOTB
IN BRIEF:
1) SOM
This is a performance based award

Rating of the employees is done on the grade basis
These grades are given on the basis of achievements of targets, best five
should be selected.
2) CUSTOMER DELIGHT:
This is a performance based award

This award should be given to the employees: with least number of
complaints, with most speedy delivery, with most accurate data, with
most orderly data
3) A-TBOOK:
All achievements of the employees can be talked in this monthly book This is a
very good way of public recognition
This book will be circulated at the beginning of every month.
4) SAQ:
This is a performance based award Rating system is required
These grades are given on the basis of achievements of targets, best five
should be selected
5) TOTB:
This is the way of idea/suggestion management

An issue can be put up and employees can be asked to give their suggestions
or ideas on the concerned issue
Web based applications like emails can be used to collect and evaluate the
suggestions/ideas.
Idea/suggestion board can be put up in the cafeteria and learning center, as
these places are easily accessible to all employees.
Best ideas would be collected on the monthly basis but rewarded on the
quarterly basis.
Feedback can be given to the employee through web or through phone, voice
mails etc.
6) ON THE SPOT:
This is an on the spot award

This award can be given to the employees for their on the spot attitude
towards some particular situation
This is a mere recognition for good and humble gestures towards peer and
presence of mind throughout
Their managers give this award to the employee as they can keep a constant
observation on their employees.
IN DETAILS
1) SOM:
SOM is performance-based award, which is measured completely on the

basis of an employee s performance within the working place. The employee is
awarded on the basis of the rating given to him and this rating of the employees
is done on the grade basis, which already exist within the organization. These
grades are given to the employees on the basis of their achievements of targets
set by their managers or supervisors. This is a monthly award where employees
are rated for a month and then the deserving candidate is awarded. The best five
are selected.
The ratings are as follows:
E Exceeded thetargets
i.e achieved targets more than assigned.
F Fully achieved the targets

i.e achieving exact targets as assigned.
P Partially achievedtargets
i.e achieving some of the assigned targets
N Not achieved the targets at all
Customer delight is again a performance-based award, which is given to

the employees for performing well. As we know that an employee not only has
external customers but also internal customersi.e the employee of the other
departments An employee has to deal with various other employees within the
branch, they can be from the same department as well as other department.
Thus the employee
With the least number of complaints
With most speedy delivery of data
With most accurate data
With most orderly data
Is awarded the customer delight award. The employees get to fill a customer
delight form on basis of which the most suitable candidate is selected for this
award. Maximum of 5 employees can be selected for the award.
3) A-TBOOK:
A-T Book is a monthly issue of a book, which is circulated in all

departments of the office. This book talks about the achievements of the
employee and gives them the peer recognition in this form. As every employee
loves to be recognized at his working place and amongst the people he works
with, this is a very effective form and way of recognizing ones performances. This
book consists of:
Detailed information about the employees who have achieved some milestone
during the month
The detail of the day and month of the achieved milestone.
Birthday wishes are sent to the employees through this book.
Various articles or precious experiences of employees.
4) SAQ:
SAQ award is again a performance-based award, which is measured
completely on the basis of an employee s performance within the working place.
The employee is awarded on the basis of the rating given to him and this rating
of the employees is done on the grade basis, which already exist within the
organization. These grades are given to the employees on the basis of their
achievements of targets set by their managers or supervisors. This is a quarterly
award where employees are rated for a quarter and then the deserving candidate
is awarded. The best five areselected.
The ratings are as follows:

E Exceeded thetargets
i.e achieved targets more than assigned.
F Fully achieved the targets

i.e achieving exact targets as assigned.
P Partially achieved targets
i.e achieving some of the assigned targets
N Not achieved the targets at all
5) TOTB:
Every individual in this world has a viewpoint and has an idea or a

suggestion waiting to pop out of his/her brain. So if these suggestions or ideas of
the employees in the organization are used in a fruitful and an effective manner
can work wonders for an organization. Thus it is really important to have an
idea/suggestion management in an organization. This scheme of TOTB is a
quarterly award. According to this scheme an issue can be put up in the cafeteria
and learning center as the employees have a frequent and easy access to these
places, and hence the employees can present these ideas and suggestions. Now
since collecting and evaluating the ideas is a major work, it can be done through
web base applications like: emails, intranet etc.
The ideas would be collected on the monthly basis but the best ideas will
be rewarded on the quarterly basis. Feedback should be given to employees who
send their suggestions and these feedbacks can be sent through web, phone,
voice mails etc.
6) ON THE SPOTAWARD:
Some deeds of employees on a daily basis are so humble that they need to
be recognized. It is sometimes not possible to recognize every individual on a
daily basis, thus at such time recognizing an individual on the spot is an
important and a sensible thing to do. According to this scheme employees can be
awarded:
To the employees for their on the spot attitude towards some particular situation
For good and humble gestures towards peer and presence of mind throughout
Their managers give this award to the employee as they can keep a constant
observation on their employees.
REWARDING AND RECOGNIZING:
1) SOM:
PURPOSE:
SOM award is the STAR OF THE MONTH award, which is given as per the
ratings of an employee. This is a quarterly based award. As we have already seen
the ratings, we ll further see what are the rewards that are given to the
employees for their performances according to this scheme.
First of all work plan of an employee of each department is allotted the targets
for the month.
The work plan of an employee consists of PARAMETERS and the
MILESTONES to be achieved.
These MILESTONES have some POINTS allotted

WHO GIVES AWAY THE AWARDS:
The department head takes the final decision and gives away the award to
the employees on the ceremony-honoring employee ceremony.
REWARDS:
Example of a monthly work plan of an employee:
PARAMETERS MILESTONES
Running Claims E: 100% downloaded
claims in 7 days F:
100% downloaded
claims in 8 days P:
100% downloaded
claims in 10 days
N: 100% downloaded
claims in more than 10
days
Expenses E: Statements
prepared and
submitted with finance
department in 7 days
F: Statements
prepared and
P: Statements
prepared and
N: Statements
prepared and
department in more
than 10 days
Incentives F: Credited to next
month s salary
N: Not credited to next

month s salary
Salary E: Complete input to

HR by 1st of every
month
N: Job not done
POINT SYSTEM:
RAT POI AMO RE

ING NTS UNT WA
IN RD
Rs.
E 5 500 Cash
F 4 300 Cash
/gift
P 1 50 Gift
coup
on
N 0 0 Nil
Thus the best 5 employees with maximum points are eligible for
the SOM award. If there are more people with same number of points, it
will be considered as one category.
PURPOSE:
Customer delight is an award to promote and recognize employees for

outstanding customer service. Thus according to this scheme we have a
customer delight form, which is filled by the employees on a monthly basis, and
the employee getting maximum votes in his/her favor is eligible for the
CUSTOMER DELIGHT AWARD.
WHO GIVES AWAY THE AWARD:
Department heads makes the final decision. A ceremony-honoring
employee is conducted where the 3 employees are awarded for their
outstanding customer service.
The head of the branch would give away the award on the ceremony day.
1 DELIGHTED CUS TOMER = 1 0 NEW CUSTOMERS
REWARDS:
NUMBER AMOUNT REWARD

OF VOTE IN Rs.
Highest 500 Cash
Second 300 Cash/Gift
highest
Third 150 Gift
highest coupon
***The best 3 employees with maximum votes would be eligible

for this award. If there are more people with same number of votes it
3) A-TBOOK:
PURPOSE:
A-T book is an ACHIEVEMENT - TALK BOOK, which provides an

employee, with the public recognition amongst the peers in the organization. This
book is a great means of boosting the confidence and recognizing the
performances and deeds of an employee in public. This recognition makes
him/her feel recognized and motivated and definitely proves to be a boon in
improving or increasing onesperformances.
WHO GIVES AWAY THIS AWARD:
No one gives away this award as this recognition comes in a book form
and talks about people s achievements.
ACHIEVEMENTS ARE NOT COINCIDENCES, THEY ARE

HARD WORK
REWARDS:
Public recognition to all the achievers.
4) SAQ:
PURPOSE:
SAQ award is the STAR OF THE QUARTER award, which is given as

per the ratings of an employee. This is a quarterly based award. As we have
already seen the ratings, we ll further see what are the rewards that are given to
the employees for their performances according to thisscheme.
First of all work plan of an employee of each department is allotted the targets
for the quarter.
The work plan of an employee consists of PARAMETERS and the
MILESTONES to be achieved.
These MILESTONES have some POINTS allotted
WHO GIVES AWAY THE AWARDS:

The department head takes the final decision and the branch head gives
away the award to the employees on the ceremony-honoring employee
ceremony.
ALL STARS DO NOT TWINKLE!!!
REWARDS:
Example of a quarterly work plan of an employee:
PARAMETERS MILESTONES
Damage Claims E: All claims coming
with 100% accuracy
F: At least 1 claim made
every quarter
N: No claims doing
RS ledger E: Once a quarter for all
RSS
N: Nil
JC Returns E: Common format
(Recorded every month) updated before 1st of
every month with 100%
accuracy
F: Common format
updated by 1st of every
month with 100%
accuracy
P: Common format
updated by 1st week of
the month.
Expenses E: Rectification made
(Recorded every month) and salary advance
cleared and available for
dispatch by 15th of every
month
F: Rectification made
and salary advance
cleared and available for
dispatch after 15th of
every month
N: Job not done

Leave Update E: Updating and
submitting to HR with
100% accuracy before
time (15th of first month
of every quarter)
F: Updating and
100% accuracy on time
(15th of first month of
every quarter)
P: Updating and
100% accuracy after
time (15th of first month
of every quarter)
N: Job not done
Medical E: Ensured settlement in

2nd month salary
N: Settlement not done

Transfer update E: Letter issued with 1
week of transfer and
disturbance allowance
put in next month
ssalary
N: Job not done

POINT SYSTEM:
RAT POI AMO RE

ING NTS UNT WA
IN RD
Rs.
E 5 2000 Cash
F 4 1500 Cash
/gift
P 1 700 Gift
coup
on/d
inner
N 0 0 Nil
Thus the best 5 employees with maximum points are eligible for
the SAQ award. If there are more people with same number of points, it
5) TOTB:
PURPOSE:
The TOTB award is THINKING OUT OF THE BOX AWARD. This award is
given to the employee/employees for their capability of giving some much
needed extraordinary suggestion or idea to the branch management, the
suggestion which is helps the management come out of crisis or helps the
management to save the maximum and gets implemented is the best suitable for
this award.
This award is to foster employee suggestions to improve a work place,
which can definitely help in some financial savings.

Department head makes the final decision, and the branch head
aw
gives away the
ard.
KNOWLWDGE WORKERS ARE VOLUNTEERS
REWARDS:
PARAMET AMOUNT REWARD

ER IN Rs.
Most 2500 Cash Gift
Extra Passes
Ordinary Dinner
suggestion
(implemen
ted)
Maximum 3% of Cash and
saving amount certificate
suggestion saved
1) ON THE SPOTAWARD:
PURPOSE:
The on the spot award is neither a monthly nor a quarterly award, as the
name suggests it is an on the spot, instant, spontaneous award. It is not even a
performance- based award. As per this award the first level managers would
recognize the employee. The purpose of this award is to recognize the employees
who go extra mile or who perform above and beyond the call of duty
,and many such exceptionalcourtesies.

The first level manager or supervisor can recognize the eligible employee,
as he/she can very well observe the employees and their deeds at the working
place.
REWARD:
PARAMET AMOUNT REWARD

ER IN Rs.
Making 200 T-Shirt
high Mugs and
quality Certificates
contributio Congratula
n to a tory Cards
difficult or
important
assignmen
t
Producing 200 T-Shirt
exceptiona Mugs and
lly high Certificates
quality Congratula
work tory Cards
under a
tight
underline
Demonstra 100 Certificates
ting Congratula
exceptiona tory Cards
lly Public
courtesy Recognitio
or n T-
responsive shirts/Mug
ness in s
dealing
with
public,
clients or
colleagues
Going 100 Certificates
Extra mile Congratula
tory Cards
Public
Recognitio
n T-
Shirts/Mug
s
Extraordinary 100 Certificates
initiative in Congratula
a difficult tory Cards
problem Public
Recognitio
n T-
Shirts/Mug
s
IT S NOT IMPORTANT WHAT YOU DO, BUT HOW YOU DO!!!
Research methodology:-
Research Design:-
This is descriptive study including various factors of Rewards and Recognition like
criteria for rewards and recognition, eligibility, impact on behaviors of employees,
frequency for rewarding, benefits derived and recommendation and suggestions.
Universe:-
Universe is employees of Hindustan Unilever Ltd.
Sample and sampling procedure:-
Sample taken from the study consist of employees of HUL Works. Samples were
selected from various departments like production, quality control, maintenance,
vendor development, research and development, finance and accounting,
information and technology, training, human recourse, auto component,
fabrication, press shop, marketing, tool room, chemical, purchase, paint shop,
cab weld, and procurement.
Tools of data collection:-

An interview schedule was used for data collection, apart from personal inventory.
Research period:-
Study is conducted in June – July 2009.
Limitations of study:-
Sample size: the present study is carried out for academic purpose, so sample size
is restricted.
1. No generalization: the study is restricted to an organization under study,

so it can not be generalized for all employees in other organization.
2. Rewards and Recognition are complex problem and researcher has attempted
to study most appropriate factors but chances can not be ruled out that some
areas may have been untouched or not adequately touched.
CHAPTER- 5
DATA ANALYSIS AND INTERPRETATION
Page | 57
DATA ANALYSIS AND INTERPRETATION
1. What are the various rewards and recognition you

recommend in HUL?
Particulars Frequency Percentage
Monetary 09 17.66
rewards
Non 06 11.76
monetary
recognition/
appreciation
reward
Best 11 21.57
suggestion/
best kaizen
reward
Team/ Group 06 11.76

reward
Employee of 08 15.69
the
month/year
reward
Departmental 03 05.88
reward
Cost 03 05.88
reduction
reward
Recreational 02 03.92
Page | 58
reward
Attendence 05.88
reward 03
Total 51 100
The above table shows that 21.57% i.e majority of

respondents have recommended best suggestion or best kaizen
reward, 17.66% of respondents have recommended monetary
rewards, 15.69% of respondents have suggested for employee of the
month/year reward, 11.76% of respondents believes in non-
monetary recognition/appreciation type of reward scheme also
11.76% of respondents has recommended for team or group reward
while 5.88%,5.88%,3.92% and 5.88% of respondents have
recommended for departmentalreward, cost reduction reward,
recreational reward, and attendance reward type of schemes
respectively.
Page | 59
2.How often do you think should be rewarded ?
Monthly 09 17.65
Quarterly 13 25.49
Half Yearly 06 11.76
Yearly 16 31.37
Occasionally 07 13.73
based on extra
ordinary
accomplishments
Total 51 100
The above table shows that 31.37 % majority of respondents

feels that employees should be rewarded on yearly basis while
25.49% ofrespondentsthink that employees should be rewarded on
quarterly basis, while 17.65%, 13.73% and 11.76% of respondents
are of the view that employees should be rewarded on monthly,
occasionally based on extra ordinary accomplishments and half
yearly basis respectively.
Page | 60
3. What are the behaviors that you are trying to encourage in
employees through the award scheme you recommend?
Motivation, 14 27.46
dedication and
sincerity
Hard working 07 13.73
Self discipline/ 06 11.76

punctuality
Team building 05 09.80

and group
cohesiveness
Sense of 05 09.80
belongingness,
loyalty and
honesty
Morale 03 05.88
boosting
Competition 02 03.92
Others 09 17.65
Total 51 100
The above table shows that, behaviors that could be

encouraged in employees through the reward and recognition
schemes, in which majority of respondents i.e. 27.46% thinks that
motivation, dedication and sincerity could be encouraged where as
13.73% of respondents believes that hard working could be
Page | 61
encouraged, while 11.76% of respondents are of the view that self-
discipline and punctuality could be encouraged, 9.80% thinks that
sense of belongingness, loyalty and honesty can be encouraged
where as 5.88% of respondents feels that it encourages morale
boosting while only 03.92 % respondents think that it can lead to
competition among the employees on the other hand 17.65% of
other respondents are of the opinion as follows such as improvement
in thinking process, achievements of targets, innovative ideas and
problem solving techniques and optimum utilization of individuals
ability and capacity.
4. Are the entire employee should be eligible for Reward and

Recognition?
Yes 44 86.27
No 07 13.73
Total 51 100
The above table shows that 86.27 of respondents feel that all
employees should be eligible for reward and recognition while on the
other hand 13.73% of respondents do not feels the same.
5. If No, which level of employees should be eligible?
In the above table 13.73% of respondents do not agree to the

statement “Are allthe employees should be eligible for rewards
Page | 62
and recognition” they are of the view that employees below MMC
level should only be eligible for rewards and recognition schemes.
6. What should be the criteria for rewards and recognition?
Performance 27 52.94
and out-put
Cost saving 10 19.61
Quality 08 15.69
improvement
Achievements 06 11.76
of targets
Total 51 100
The above table shows that majority of respondents i.e. 52.94% of

respondents thinks that performance and output should be the
criteria for rewards and recognition, where as 19.61% of respondents
feels that cost saving should be the criteria, while 1569% of
respondents believes that quality improvement should be the criteria
and 11.76% of respondents thinks that achievements of targets
should be the criteria for rewards and recognition.
7. How is an employee should be selected for a reward? Is it

through?
Page | 63
Group Vote 11 21.57
Decision 17 33.33
from top
officials
Decision 23 45.10
from a
single
manager
None of 00 00.00
above
Total 51 100
The above table shows that 45.10% i.e. majority of

respondents thinks that an employee should be selected for a reward
is through the decision from a single manager or in other words from
the immediate supervisor, while 33.33% and 21.57% of respondents
are of the view that employees should be selected for reward through
decision from top officials and group vote respectively.
8. How is the company benefited from rewards and

recognition?
Improved 34 66.67
performance
Page | 64
Reduced 04 07.84
absenteeism
Others 13 25.49
Total 51 100
The above table shows that 66.67% of respondents believes

that improved performance is the benefit that company derives from
rewards and recognition, while 07.84% of respondents feels that it
can reduce absenteeism while 25.49% of respondents have came up
with several other ideas which includes cost reduction, improvement
in work culture, boosting morale of the employees, loyalty, sense of
belongingness, improved thinking process, internal competition, self-
motivation and self discipline, punctuality, profitability, optimum
utilization of human resources, sincerity etc…
9. Are the Employees suggestion should be considered while

reviewing the reward programme?
Yes 22 43.14
No 29 56.86
Total 51 100
The above table shows that a majority i.e. 58.86% of

respondents feels that employee’s suggestion should not be
Page | 65
considered while reviewing the reward programme while 43.14% of
respondents do not feels the same.
10. Do you think the Reward and Recognition scheme should

be restricted to MMC level?
Yes 20 39.22
No 31 60.78
Total 51 100
The above table shows that 60.78% of respondent believes

that reward and recognition scheme should not be restricted to MMC
level only while 39.22% of respondents do not feels the same.
11. Do you feel the Reward and Recognition scheme like

Employee of the Month be chosen by voting from the
Department?
Yes 17 33.33
No 34 66.67
Total 51 100
Page | 66
The above table shows that 66.67% of respondents thinks that
reward and recognition scheme like employee of the month should
not be chosen by voting from the department, while 33.33% of
respondents does not feel the same.
12. If you have any other suggestion?
Should be 16 31.37
immediately
provided [
Tatkaal ]
Should be 11 21.57
equally
applicable to
all
Should be 08 15.69
tangible and
transparent
Should be 07 13.73
properly
communicated
Others 09 17.65
Total 51 100
The above table shows employees suggestion of employees

regarding rewards and recognition programme where majority of
Page | 67
respondents i.e. 31.27% have suggested immediate reward on the
spot basis and sum schemes like tatkal while 21.57% of respondent
have suggested that it should be equally applicable to all the
employees, where as 15.69 % of respondents think that reward and
recognition schemes should be tangible and transparent enough, and
13.73% of respondents thinks that the schemes should be properly
communicated to all the level vertically and horizontally along with
their feedback. 17.65% of other respondents has have various
suggestion which are as under,
• Cash rewards should be provided to the employees below MMC level

and above the level employees should be provided with status,
authority, self esteem, appreciation and recognition.
• Effective implementation and continuous feedback and assessment of
whatever schemes is approved by the management.
• Reward and recognition schemes should be used as effective tool for
retention of key employees.
• Basic facilities should be improved as a part of reward system.
• Reward and recognition schemes should be implemented in such a
way that a sense of job security is inculcated among the employees.
Page | 68
TABLE SHOWING DISRTIBUTION OF RESPONDENTS WITH
EDUCATIONAL QUALIFICATION
QUALIFICATI FREQUEN PERCENTA

ON CY GE
Diploma 15 29.41
holders
Graduate’s 24 47.06
Post Graduate’s 12 23.53
TOTAL 51 100
Diploma Holders
Graduates
Post Graduates
The above table deals with distribution of educational

qualification of respondents. Out of total respondents 29.41% of
respondents are diploma holders, 47.06% of respondents are
graduates and 23.53% of respondents are post –graduates.
Page | 69
TABLE SHOWING DISRTIBUTION OF RESPONDENTS WITH
DESIGNATION
DESIGNATIO FREQUENC PERCENTA

N Y GE
Assistant 19 37.25
Manager
Deputy 10 19.62
Manager
Manager 16 31.37
Deputy 03 05.88
General
Managers
General 02 03.92
Managers
Chief 01 01.96
Operating
Officer
TOTAL 51 100
Assistant Manager
Deputy Manager
Manager
Deputy General
Manager
General Managers
Page | 70
The above table deals with distribution of respondents as per
their designation. Out of total respondents 37.25% are assistant
mangers, 19.62% of respondents are deputy managers, 31.37% of
respondents are managers, 5.88% of respondents are deputy
general managers, 3.92% of respondents are general managers and
1.96% of respondent is chief operating officer [COO].
TABLE SHOWING RESPONDENT WITH THEIR TOTAL WORK

EXPERIENCE WITH HUL
WORK FREQUENC PERCENTAG

EXPERIENC Y E
E
BELOW 1 03 05.88
YEAR
1-2 YEARS 22 43.14
2-3 YEARS 18 35.29
3-4 YEARS 06 11.77
4 YEARS 02 03.92
AND ABOVE
TOTAL 51 100
Page | 71
Below 1 Years
1-2 Years
2-3 Years
3-4 Years
4 Years and above
The above table deals with distribution of respondents

with their total work experience with HUL. Out of the total
respondents 5.88% of respondents have below 1 year of experience,
while majority of respondent’s i.e. 43.14% have experience more 1
year but less than 2 year, 35.29% respondents have more than 2
year of experience but less 3 years, while 11.77% of respondents
have between 3-4 years of experience and only 3.92% of
respondents above 4 years of their total experience with HUL.
Page | 72
CHAPTER-6
FINDINGS AND SUGGESTIONS
Page | 73
FINDINGS AND SUGGESTIONS
FINDINGS
Whenever a company is involved in a implementing any policy,

apartform the financial and organizational policy changes, the human
resources of the organization are also deeply affected. If there is no
clarity of communication between the top management and the
employees down the hierarchy, it results in lot of misunderstandings
and cause of major worry amongst the employees. In such a changing
scenario, some of the major causes of concern for the employees are
job security, compensation, opportunities for career growth,
adaptability to the changed organizational strategies and policies etc.
Rewards and Recognition can prove to be an important measure for
betterment and upliftment of any organization.
Findings regarding criteria for Rewards and Recognition
Opinion regarding the criteria for rewards and recognition that

employees recommended while performing their jobs were quite
content with their lives and jobs. While there are many positive ideas
came up to their organizational culture the main ideas as a part of
findings regarding appropriate criteria for rewards and recognition are:-
1. Performance and out-put

2. Cost saving
3. Quality improvement and achievements of targets
Page | 74
• The most appropriate way to select an employee for a reward is
through decision from the immediate supervisor or from a single
manager.
• The best alternative for selection of an employee for a reward is to
form a reward and recognition committee consisting of top officials as
the members of the committee.
• Suggestion from each and every employee should not be entertained or
considered while reviewing reward programme.
• It should be based on tangible and transparent criteria and should be
properly communicated vertically and horizontally through the
organization.
• Reward and Recognition schemes like employee of the month or any
other scheme should avoid the criteria of been chosen from the
department.
Findings regarding Eligibility for Rewards and Recognition
A very straight forward response is received regarding the

eligibility of employees for rewards and recognition are as under.
• All the employees should be eligible for any reward and recognition
scheme comes into implementation.
• Rewards and Recognition schemes should not be equally applicable to
all, as it should have different criteria’s as per department, designation
and cadre and nature of the job.
• Employees below the MMC level should be given the priority for
rewards and recognition and should be largely awarded through
monetary benefits or cash incentives.
Page | 75
• Employees above MMC level should provided with non-monetary
recognition at large departmental gatherings or annual day functions.
Findings regarding Frequency for Rewarding
• On the frequency for rewarding front the employees had contradictory

views. In response to rewarding as 31.37% of respondents think that
employees should be rewarded on yearly basis. While 25.49% of
respondents have suggested for quarterly basis along with 17.65% of
respondents have suggested rewards on monthly basis, The above
mentioned category of 25.49% and 17.65% which together sums up to
43.04% shared one thing in common and that was rewarding
employees those who are working on contract basis as they only work
for 3 months in the organization, that’s why monthly or quarterly would
be the suitable time gap to reward those employees, while on the other
hand majority of respondents are of the view that employees should be
rewarded on yearly basis to those employees working on permanent
basis with organization.
Findings regarding Benefits derived from Rewards and

Recognition
There are several benefits company can derive through Reward

and Recognition Schemes, some of them are as under
Page | 76
• The first and foremost benefit of Reward and Recognition scheme is
that it can lead to improvement in performance of employees as
believed by 66.67 % that is majority of respondents.
• It can be used as an effective tool to avoid absenteeism.
• It can improve work culture of the organization as it boosts up morale
of the employees.
• It leads to improvement in thinking process of employees and
generation of new innovative and dynamic ideas hence can lead to cost
reduction and consequently increase in profitability.
• It inculcates a sense of belongingness, loyalty and honesty in the
employees.
• It encourages self discipline, punctuality, and self motivation to work
harder with self initiative ness and extra efforts. Individual tends to
stretch himself to the optimum utilization of his own ability and
capacity; hence achievement of individuals and group targets can be
achieved at ease.
Findings regarding Recommendation and Suggestions for

Rewards and Recognition
Various schemes have been suggested and recommended by

employees depending upon their designation department, department,
cadre and nature of the job some of them are as under.
• Best kaizen or best suggestion should be rewarded which can simplify

complexities of job or could help in cost reduction and such reward
should be monetary in nature.
• There should be a common programme along with separate schemes
each department wise.
Page | 77
• Not only individuals but teams and groups should also be rewarded for
any extra ordinary accomplishments.
• Attendance and Recreational rewards schemes should be implemented
to increase coverage and effectiveness of reward and recognition
programme.
• Employees should be immediately rewarded by the immediate
supervisor or scheme like TATKAAL should be implemented, which
should be equally applicable, tangible and transparent enough and
properly communicated to all.
• Cash rewards should be provided to the employees below MMC level
and above the level employees should be provided with status,
authority, self esteem, appreciation and recognition.
• Effective implementation and continuous feedback and assessment of
whatever schemes is approved by the management.
• Reward and recognition schemes should be used as effective tool for
retention of key employees.
• Basic facilities should be improved as a part of reward system.
• Reward and recognition schemes should be implemented in such a way
that a sense of job security is inculcated among the employees.
SUGGESTIONS
Under this sub title, the researcher has presented few

suggestions which are based on the conclusions reached. If acted upon,
these suggestions may prove fruitful in improving reward system in
organization which further leads to employees’ motivation and job
satisfaction. Effective treatment of post the scheme is implemented and
integration process cannot be advanced without sound theoretical
Page | 78
understanding of the employees’ psychological and behavioral
responses to the essential properties and processes inherent in reward
and recognition-driven organizational change. Rewards and recognition
have a great impact on the individuals or groups working in an
organization and on the working conditions. Organizations must
effectively develop and implement assistance programmes for displaced
employees. Such programmes should include advance notification,
extended benefits, and outplacement activities. A company not only
needs to select a right target, but also must have the right culture in
place that accepts the programme as quickly as possible.
In this context the role played by effective communication

becomes very important. This entails devising a comprehensive
communication strategy and implementing it with care and diligence by
a pro-active, clear and direct communications strategy, one that
regularly acknowledges the significant role employees have played in
the business and explains their important, ongoing role in the future
counseling interventions can address issues pertaining to job insecurity
on a number of systematic levels. Career counseling can be providing
to help employees define their personal goals, development needs and
career paths in the organization.
1) Management must need to redesign promotion policy because

employees are not satisfied with it.
2) Transparency in rewards system or promotion policy is very much
needed.
3) Rewards and recognition could prove to be an efficient and
effective HR sub system if implied with as larger coverage as possible
4) Non-monetary rewards and extra benefits are to be given to
employees so that play very important role in motivation of employees.
Page | 79
5) All supervisors and mangers must need to appraise their subordinate
when they do good job which increase motivation of employees.
6) Money is the biggest motivator so increments in salaries can help to

improve motivation level among employees.
7) Reward and Recognition must be reaching in all departments so that

employees can be part of it and feel important part of organization.
CONCLUSION
Prioritize employee recognition to ensure a positive, productive,

organizational climate. Provide employee recognition to say “thank you”
and to encourage more of the actions and thinking you believe will
make the organization successful. People who feel appreciated are
more positive about themselves and their ability to contribute. These
beliefs about employee recognition are common among employers - if
not commonly carried out. Why then is employee recognition so closely
guarded at work?
Employee recognition is limited in most organizations. Employees

complain about the lack of recognition regularly. Managers ask, “Why
should I recognize or thank him? He’s just doing his job.” And, life at
work is busy, busy, and busy. These factors combine to create work
places that fail to provide recognition for employees. Managers who
prioritize employee recognition understand the power of recognition.
Page | 80
Every person has different reasons for working. The reasons for
working are as individual as the person. But, we all work because we
obtain something that we need from work. The something obtained
from work impacts morale, employee motivation, and the quality of life.
To create positive employee motivation, treat employees as if they
matter - because employees matter. These ideas will help you fulfill
what people want from work and create employee motivation.
Today’s corporate leaders realize non financial recognition is not a perk

but a strategic necessity, says RPI executive director Christi Gibson.
"They find it decreases turnover, it does increase profitability, it creates
a positive work environment and it elevates customer service," she
says. "It also attracts a better recruiting pool and improves retention of
the top performers."
Daily means of providing recognition:
• Saying "Thank you

• Telling them they did a good job.
• Suggesting they join you for coffee.
• Asking for their opinions.
• Greeting them when they come in the morning.
• Showing interest in their personal interests.
• Smiling when you see them.
• Bragging about them to your boss (in their presence).
• Jotting small thank you notes to them.
• Having refreshment with them after work.
• Saying something positive about their personal qualities.
Page | 81
Intermediate means of providing recognition:
• Taking them to lunch.

• Providing food at volunteer meetings.
• Letting them put their names on the products they produce.
• Buying the first round of beer for "the best crew of the month."
• Writing them a letter of commendation (with copies to personnel file
and other appropriate people.)
• Getting a local radio station to mention them.
• Putting them on important task forces or committees.
• Giving the best parking space to the "employee of the month."
• Posting graphic displays, showing progress toward targets.
• Mentioning major contributors by name in your status reports to upper
management.
• Having them present their results to higher-ups.
• Giving permission to go to a seminar, convention, or professional
meeting, if possible at the organization’s expense.
• Writing articles about their performance for newsletters or newspapers.
• Having them present a training session to co-workers.
• Decorating their work area on their birthday.
• Having your boss write them a letter of thanks.
• Celebrating major accomplishments.
• Having them represent you at important meetings.
• Putting their picture on the bulletin board with news of their
accomplishments.
• Cutting out articles and cartoons they might be interested in.
• Organizing informal chats with organization leadership.
Major means of providing recognition:
Page | 82
• Making special caps, shirts, belt buckles or lapel badges honoring the
group.
• Encouraging them to write an article about some accomplishment at
work.
• Giving a plaque, certificate, or trophy for being best employee, best
crew, most improved results, etc.
• Getting their picture in the paper for outstanding accomplishment.
• Giving additional responsibilities and a new title.
• Renting newspaper space to thank them.
• Putting up a banner celebrating a major accomplishment.
• Honoring them for years of service to the organization.
• Enlisting them in training staff and other volunteers.
• Involving them in the annual planning process.
Looking at the responses obtained by the respondents following

reward and recognition policy can prove to be an effective one.
REWARDS & RECOGNITION
Purpose:
To reduce Attrition Rate and improve Employee Loyalty & Motivation

and positive behavior.
Objectives:
Page | 83
To provide guidelines to recognize specific, unique, value added and
critical performance incidents within or beyond expected & predefined
performance objectives
To align employee performance and achievements in line with

Company’s Value Charters & Mission Objectives
To reward these performance incidents in monetary or non-monetary

terms indicating organizational recognition and appreciation towards
the employees
Scope Applicability:
All employees
General Rules:
Nomination: (Individuals / Teams / Groups):
All Managers / Department Heads (along with inputs from Immediate

Superiors / Reporting Authorities wherever applicable) can nominate
employees/teams who have shown reward-worthy performance,
behavior, skills or competence.
Periodicity:
Assessments and recommendations can be done on Quarterly / Half

yearly / Yearly basis and one employee can be nominated multiple
times in different quarters.
Further spot achievement awards can be recommended during shorter

terms of quarterly for associates, who work on contract basis.
Page | 84
For ongoing performance achievements these awards can be assessed
either half yearly or yearly basis.
Performance Management Link:
A special consideration and weightage can be given in PLI

(Incentives/Bonus) for employee’s winning Rewards & Awards in
Appraisal year.
This can be an additional 5% to 10% Incentives increase over and

above the recommended PLI by Appraisers during yearly Appraisal
process.
Benchmarking Reward-worthy
Performance/Behavior/Competence
In order to align employee performance to Company’s Values & Mission

Objectives, the standards can be set against the 4 value & mission
objectives. Employee showcasing exceptional examples of following up
these values can be considered for Rewards & Recognition Program.
Assessment Parameters
Some of the parameters can be listed as under.
EOQ- Employee of Quarter
The Employee of the quarter Award publicly recognizes a staff

employee for superior performance have an exceed rating or better on
performance evaluation at the time of nomination, have specific or
sustained accomplishments that exceed normal expectations.
Reward & Award:
Page | 85
Cash Reward
Certificate of Appreciation (by COO/ Head HR)
EOY- Employee of year
Should have been nominated as EOQ at least twice during the

assessment year and should have been selected at least once during
the assessment year.
Reward & Award:
Cash Rewards
Certificate for Appreciation (by COO/ Head HR)
Lunch / Dinner with President
Print on the business card for one year as “EOY”.
Spot Excellence Award
Contribution beyond expected deliverables / Key Responsibility Areas

which benefits the organization.
Reward & Award:
Gift Vouchers
OI – Outstanding Innovation
Finding out a creative and innovative ways to improve the

performance.
Page | 86
Reward & Award:
Sponsorship for Pleasure Trip.
TOY-Team of Year
Based on customer feedback on issues resolved, comfort level with

customer, Support provided or any such incidents / behaviors bringing
in significant impact on Customer’s perception and Company’s image
building etc.
Reward & Award:
Team Trophy (for individual members as well as whole team with

each team member’s name embossed on the trophy)
Team Lunch / Dinner with HOD or COO
BAY- Behind the Scene Award of Year
Based on the Extra-Ordinary Performance of functional support

employees (HR, Finance, IMG and Administration functions)
Reward & Award:
Gift Vouchers
Certificate for Appreciation (by COO/ Head HR)
Sponsorships for specific seminars / Trainings.
Page | 87
CHAPTER-7
REFERENCES
Page | 88
REFERENCES
Website:
www.unilever.com
www.google.com
www.wikipedia.com
Books:
• Ashok Chanda and ShlipaKabra, HR Strategy (Architecture for

Change), Response Books, A Dlvision of Sage Publication, Delhi,
2000. 2
• Chinchankar P.Y, Wages and Productivity in Indian Industries,
Vora&Co.Publisher (P) Ltd Bombay-2. 3.
• David A hume, Improving Employee Performance, Motivation
and PayThroughReward Management, Infinity Books, 2000.
• KOTHARI C.R.: Research Methodology –methods and
techniques, WishwaPrakashan
Page | 89
Questionnaire
(Identification of the respondents will not be disclosed))
General profile of Respondents:
1. Sex: male female

2. Age group: 25-35 36-45 46+
3. Designation:
PERSONAL INVENTORY
Name:-
Department:-
Educational qualification:-
1. What are the various rewards and recognition you recommend

in HUL?
2. How often do u think should be rewarded?
a) Monthly
b) Quarterly
c) Half yearly
d) Yearly
e) Occasionally based on extra ordinary accomplishments.
Page | 90
3. What are the behaviors that you are trying to encourage in
employees through the award scheme you recommend?
4. Are all the employees should be eligible for the Reward and
Recognition?
Yes No
5. If No, which level of employees should be eligible?
6. What should be the criteria for rewards and recognition:
Page | 91
7. How an employee should be selected for a reward? Is it through
a) Group vote
b) Decision from top officials
c) Decision from a single manager
d) None of the Above
8. How is the company benefited from the rewards and

recognition?
a) Improved performance
b) Reduced absenteeism
c) Others
9. Should the employee suggestions be considered while reviewing

the Reward program?
Yes No
10. Do you think the Reward and Recognition scheme should be

restricted to MMC level?
Yes No
11. Do you feel the R&R scheme like Employee of the Month be
chosen by voting from the department?
Page | 92
Yes No
12. If you have any other suggestion?
THANK YOU
Page | 93

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A PROJECT

“A STUDY ON IMPACT OF REWARDS AND RECOGNITION

IN HINDUSTAN UNILEVER LTD.”

Project Report Submitted in Partial

Fulfillment of the requirement for the degree of

MASTER OF BUSINESS ADMINISTRATION (MBA)

Reg No: 1702003295

Under the guidance of

Guide Reg No: MBADL0052

A STUDY ON IMPACT OF REWARDS AND RECOGNITION IN HINDUSTAN

Place: Kolkata (PRAKASH CHANDRA MOHARANA)

Date: 17 March 2019 Reg. No. 1702003295.

“What is for me?” That is a question every person consciously or

Whether dealing with monkeys, rats or human beings, it is hardly controversial

A ‘reward’ or ‘incentive’ can be anything that attracts a worker’s attention

In the words of Bureckm and Smith “reward systems is a plan or

performance criteria, rewards should be regarded as a “pay off” the

An incentive plan has following important features:-

1. An incentive plan may consist of both ‘monetary’ and ‘non-monetary’

1. The individual and the rewards:

Different people value things differently. Enlightened managers realize that

This is made up of four important elements,

Machine or work system, if speed of equipment operation can be

A worker’s job may important a number of activities that he finds

A worker needs to be able to see connection between works and rewards.

Worker considers fairness or reasonableness as part of the exchange for

There are a number of ways to classify rewards. We have selected three

Intrinsic versus Extrinsic Rewards

Motivational researchers had generally assumed that intrinsic and

Early experiments designed to test the independence assumption

Financial versus Non financial Rewards

Rewards may or may not enhance the employee’s financial well-

vacations, paid sick leaves and purchase discounts.

Nonfinancial rewards cover a smorgasbord of desirable “things” that

Some workers are very status conscious. A paneled office, a

Performance-Based versus Membership-Based Rewards

The rewards that the organization allocates can be said to be based

Performance-based rewards are exemplified by the use of

Advantages of the Performance Related pay (PRP) scheme

➢ Incentives are linked to meeting targets or objectives, as well as to the

➢ Where employees’ performance can be measured and the amount of money

➢ Employees receive useful feedback on their performance.

➢ There is an emphasis on a result oriented culture, with the accent on effort

Disadvantages of the PRP scheme

➢ Behavior is rewarded, which one would expect to occur any way in

➢ Open communication between managers and subordinates could be

➢ The rewarding of self-centered individualism can undermine the co-

Never assume a particular reward is universally important to all employees.

This different among employees was substantiated in a study undertaken

than single employees, and this preference increased with number of

Research indicates that the preference for rewards will be significantly

In expectancy theory terms, motivation is optimized when employees

One effort to broaden the idea of individualizing rewards has been

The advantages of flexible compensation go beyond merely allowing

Employees desire rewards that are distributed in what seems to be an

It is no secret that employees make comparisons between themselves

Evidence indicates that the referent chosen by the employee is an

The “system” category considers organizational pay policies and

The “self” category refers to input-outcome ratios unique to the