Bank report bhaskar

2. CERTIFICATE OF COMPLETION

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3. ACKNOWLEDGEMENT

At the outset, I express my heartfelt thanks & gratitude to those who sincerely helped and

supported me throughout the project I have undertaken to do & without whose active

support & help it would not have been possible for me to complete the venture. As such, I

once again extend my sincere thanks & gratitude to all of them.

To this effect, at first I take the opportunity to express my profound gratitude and deep

regards to my guide Mrs. Archana Singh for her active guidance and constant supervision

together with time to time providing with necessary information connected with the

project following active support in completing the project.

I also take the opportunity to express my heartfelt gratitude to my Faculty, Dr. Bibhas

Chandra, assistant professor of Department of Management Studies, Indian School of

Mines, Dhanbad, for extending his cordial support, providing valuable information and

guidance, which helped me a lot in completing the task at various stages.

Finally, I would also like to express my earnest gratitude to my friends and family

members for their constant support & encouragement without which the assignment

would not have been completed, besides the constant blessings of Almighty.

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4. TABLE OF CONTENTS

Topic Page No.

1. INTRODUCTION:

Brief profile of student

Brief profile of project mentor at the bank

Brief profile of organization

Nature of the project

Brief objectives/ responsibilities assigned by the project

mentor.

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5

5

5

8

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2. FRAMEWORK OF STUDY

Theoretical framework

Specific objectives of the project

Scope of study

Limitations of study

Period of study

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10

12

13

13

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3. METHODOLOGY AND ANALYSIS

Methodology

Analysis

Conclusions

Recommendations

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15

18

50

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4. BIBLIOGRAPHY 52

5. LIST OF TABLES

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a) Tabulation for the List of Directors on the Central Board of State Bank of India as on

26.05.2015.b) Tabulation for within-subject effect of Method of Payment of incentive (Mauchly’s

Test of Sphericity)

c) Tabulation for the Result of Repeated Measures one way ANOVA.

d) Tabulation for the Pair wise comparison (Post-Hoc Analysis) consisting of pairs of

method of incentives which do not have significance of difference between their means.

e) Tabulation for the Descriptive Statistics of factor (different table for each factor)

f) Tabulation of the Multiple Response Analysis of factor (different table for each factor)

g) Tabulation of the Demographic Segmentation of respondents.

6. INTRODUCTION

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Brief profile of student

I, Bhaskar Kumar, undertook the project of ”Scope of Payment of incentives/bonuses through

Gift Cards/Achiever Cards to employees/Dealers/Channel partners by companies such as

Mobile Service Providers, Insurance Companies and other companies/factories needing to

pay incentives.”. I am a native of Darbhanga. In regard to my education, I did my schooling

and secondary education in Darbhanga, and B.Tech in Information Technology form

Hindustan College of Science and technology, Mathura. Currently I am pursuing my MBA

degree from ISM Dhanbad. I have maintained 7.02 CGPA in aggregate. Previously I did my

10th class with 83.2% aggregate and 12th with 62.2% aggregate in CBSE board and did my

B.Tech with 61.88%. Coming to my family background, My father is Professor at Marwari

college, Darbhanga and my mother, a perfect home-maker. My strengths are I am very

honest, optimistic and punctual. I can adapt myself to any environment and circumstances

and for that reason I can work with very ease .I am also quite good in team work .My hobbies

Swimming, Badminton, feeding stray animals and birds and travelling to unseen places. My

weaknesses are believing in others very easily coupled with a bit absent mindedness. But, If I

concentrate on anything I become so absorbed in that matter that I can’t listen even if

somebody calls me at that time. And that’s all about myself in brief.

Brief profile of project mentor at the bank

My project mentor at the bank is Mrs. Archana Singh, Chief Manager, State Bank of India,

ISM Campus Branch. She is the daughter of the Late Shri Giriraj Singh. She pursued

Bachelor of Arts (Honors) and joined SBI on September 1st 1994 as Probationary Officer in

S.K. Puri Branch, Patna. Then in 1996, she joined SBI ISM Campus Branch and has been

working till date. She has an illustrious career and vast experience of 21 years in Banking

sector.

Brief profile of organization

State bank of India is Indian multinational, Public Sector banking and financial services

company. It is a government-owned corporation with its headquarters in Mumbai,

Maharashtra. State Bank of India (SBI), with a 200 year history, is the largest commercial

bank in India in terms of assets, deposits, profits, branches, customers and employees. The

Government of India is the single largest shareholder of this Fortune 500 entity with 61.58%

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ownership. SBI is ranked 60th in the list of Top 1000 Banks in the world by "The Banker" in

July 2012. The State Bank of India’s root lies in the first decade of 19th century, when the

Bank of Calcutta, later renamed the Bank of Bengal, was established on 2 June 1806. The

Bank of Bengal was one of three Presidency banks, the other two being the Bank of Bombay

(incorporated on 15 April 1840) and the Bank of Madras (incorporated on 1 July 1843). All

three Presidency banks were incorporated as joint stock companies and were the result of the

royal charters. These three banks received the exclusive right to issue paper currency till 1861

when with the Paper Currency Act; the right was taken over by the Government of India. The

Presidency banks amalgamated on 27 January 1921, and the re-organised banking entity took

as its name Imperial Bank of India. The Imperial Bank of India remained a joint stock

company but without Government participation.

Pursuant to the provisions of the State Bank of India Act of 1955, the Reserve Bank of India,

which is India's central bank, acquired a controlling interest in the Imperial Bank of India. On

30 April 1955, the Imperial Bank of India became the State Bank of India. The government

of India recently acquired the Reserve Bank of India's stake in SBI so as to remove any

conflict of interest because the RBI is the country's banking regulatory authority.

In 1959, the government passed the State Bank of India (Subsidiary Banks) Act, which made

eight state banks associates of SBI. A process of consolidation began on 13 August 2008,

when the State Bank of Saurashtra merged with SBI.

SBI has acquired local banks in rescues. The first was the Bank of Bihar (est. 1911), which

SBI acquired in 1969, together with its 28 branches. The next year SBI acquired National

Bank of Lahore (est. 1942), which had 24 branches. Five years later, in 1975, SBI acquired

Krishnaram Baldeo Bank, which had been established in 1916 in Gwalior State. . The bank

had been the Dukan Pichadi, a small moneylender, owned by the Maharaja. The new banks

first manager was Jall N. Broacha, a Parsi. In 1985, SBI acquired the Bank of Cochin in

Kerala, which had 120 branches. SBI was the acquirer as its affiliate, the State Bank of

Travancore, already had an extensive network in Kerala. There has been a proposal to merge

all the associate banks into SBI to create a "mega bank" and streamline the group's

operations.

On October 7, 2013, Arundhati Bhattacharya became the first woman to be appointed

Chairperson of the bank.

The SBI group has an extensive network, with over 20,000 plus branches in India and another

190 foreign offices spread over 36 countries across the world. As of 31st March 2014, the

group had assets worth USD 400 billion, deposits of USD 307 billion and capital & reserves

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in excess of USD 24.60 billion. SBI’s non-banking subsidiaries/joint ventures are market

leaders in their respective areas and provide wide ranging services, which include life

insurance, merchant banking, mutual funds, credit cards, factoring services, security trading

and primary dealership, making the SBI Group a truly large financial supermarket and India’s

financial icon. SBI has arrangements with over 1500 various international / local banks to

exchange financial messages through SWIFT in all business centres of the world to facilitate

trade related banking business, reinforced by dedicated and highly skilled teams of

professionals.

List of Directors on the Central Board of State Bank of India as on 26.05.2015

Sr. No. Name Designation

1 Smt. Arundhati Bhattacharya Chairman

2 Shri P. Pradeep Kumar Managing Director

3 Shri B. Sriram Managing Director

4 Shri.V.G.Kannan Managing Director

5 Shri Rajnish Kumar Managing Director

6 Shri Sanjiv Malhotra Director

7 Shri Sunil Mehta Director

8 Shri M.D. Mallya Director

9 Shri Deepak I. Amin Director

10 Shri S.K. MukherjeeOfficer Employee

Director

11 Dr. Rajiv Kumar Director

12 Shri Harichandra Bahadur Singh Director

13 Shri Tribhuwan Nath Chaturvedi Director

14 Dr. H.S. AdhiaDirector

15 Dr. Urjit R. Patel Director

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Vision, Mission, Values of State Bank of India (SBI). Vision

My SBI.

My Customer first.

My SBI: First in customer satisfaction.

Mission

We will be prompt, polite and proactive with our customers.

We will speak the language of young India.

We will create products and services that help our customers achieve their

goals.

We will go beyond the call of duty to make our customers feel valued.

We will be of service even in the remotest part of our country.

We will offer excellence in services to those abroad as much as we do those in

India.

We will imbibe state-of-the-art technology to drive excellence.

Values

We will always be honest, transparent and ethical.

We will respect our customers and fellow associates.

We will be knowledge driven.

We will learn and we will share our learning.

We will never take the easy way out.

We will do everything we can to contribute to the community we work in.

We will nurture pride in India.

Nature of the project

This study is conducted to understand the scope of payment of incentive through gift cards by

various types of organisation needing to pay incentives to their

employees/distributors/channel partners. Basically we have described the perception of

employees, distributors and channel partners about gift cards in comparison with other

methods of payment of incentives. The nature of this project is to find whether gift card as a

method of payment of incentive satisfies organisations objectives to motivate, satisfy, attract

and retain existing as well as future human resource. Incentive system of an organisation

needs to be robust in order to nurture the most vital resource, i.e. human resource. As

perceived by many of us, cash is seems to be most preferable mode of payment of incentive.

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But the study reveals that cash might not be most suitable option for many factors. Gift card

on other hand has got characteristics of both ‘gifts’ and cash. It is also more suitable

financially as it provides more monetary value to user than its actual cost bearded by

organisation. The study is useful in determining acceptance level of gift cards as incentives in

various organisations belonging to different sectors of market. It will give an insight about

employees perception towards various method of payment of incentive. The perception of

employees categorised by age , gender , type of organisation , experience, position and other

demographic factors are described. This study may help the organisation in understanding

the perception of work force towards incentives for motivating them to exert more effort so

that it increases productivity of the firm.

Brief objectives/ responsibilities assigned by the project mentor

The research which I am asked to do is to find out The scope of incentive payment by gift

card in different organisations. To know that, first of all my project mentor asked me to

identify the respondents such as employees, distributor, channel partners of various

organization belonging to different sector such as banking, insurance, automobile, retail and

other such sectors in Dhanbad. The methods of payment of incentives to employees by

organizations has been evolving over time. A quote from David Ridell, Vice President of

certificate marketing at Marriott International echoes this sentiment: “We think companies

should use cash sparingly because it can be confused with compensation” (Incentive, 2000).

Incentive distribution system is a complex process that is unique to organisation. It is one of

the most critical decisions as it affects Human Resource , which is the most vital resource of a

business organisation. Due to its uniqueness, management has to reassess the system from

time to time to satisfy and adjust with the changing business environment. Due to change in

business scenario after globalisation and advent of information technology, there is cut throat

competition between organisations to retain talented workforce. An incentive system must be

evolving with time to satisfy both employer and employee. Thus, understanding why and

when to use tangible non-monetary incentives is an important endeavor, since U.S. firms

spent over $20 billion on tangible non-monetary incentives in 1999 (Incentive Federation,

2000). While this is a small fraction of the $4 trillion U.S. payroll, it is still a substantial

amount of money, and represents between 5% and 10% of total spending on employee

incentives.

Apart from research the work, I was asked to do is to meet the managers of various

organization of dhanbad and to know their views about insentive payment system in their

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company. I observed that every company wants to retain its existing employees as well as

attract fresh talent. For that they have to understand the current incentive payment practices

in market place and needs of their employees’.

I was also asked to visit channel partners of SBI such as SBI LIFE, SBI Mutual Fund etc. in

order to get a clear perception of employees of SBI family about existing method of payment

of incentive. I was able to visit 11 different company apart from SBI group such as Tata

Motors, Hyundai, HDFC life, Vodaphone, Airtel, Bajaj Allianz, Big Bazar, Pantaloons, Max

Life Insurance, Tata AIA Life Insurance, and Birla Sun Life Mutual Fund.

7. FRAMEWORK OF STUDY

A theoretical framework is a collection of interrelated concepts like a theory but not

necessarily so well worked out. A theoretical framework provides a well supported rationale

to conduct the study and helps to understand the perspective. A good theoretical framework

assures that the type of investigation propose is not based solely on your personal instincts or

guess, but supported by established theory and empirical facts obtained from credible studies.

So in this study the various factors which the builders should kept in mind while selecting his

financer is extracted from relevant research work and some previous studies. It is as

follows:-

Reference of various studies and projects conducted on related topic suggested that factors

influencing of employee’s behavioral outcomes and characteristics of methods of incentive

payment needs to be identified for determining the scope of gift cards as incentives.

Motivation is the set of psychological processes that cause the arousal, direction, and

persistence of individual’s behavior toward attaining a goal (Greenberg and Baron, 2003;

Robbins and Judge, 2008,).Motivation is the internal processes that activates, guides and

maintains behavior (especially goal directed behavior)(Baron, 1991). Public sector managers

must motivate their employees to perform at the highest levels of productivity and

effectiveness and get “more for less” (Perry and Porter, 1982) Corporate employees still

consider financial incentives to be highly motivating (Wright, 2003, p.4). In fact, recently

Weibel, Rost, and Osterloh (2010) showed how the notorious pay-for-performance scheme

can successfully boost public personnel efforts, given the right circumstances and proper

implementation.

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The general hypotheses of the principal-agent theory and especially that employee

satisfaction is determined exclusively by the level of salary received is criticized (Locke,

1999).Job satisfaction is assumed to derive from a composed mix of incentives received on

the job, equity perceived and employee motivations. The various determinants of job

satisfaction can be summarized by exploiting the study by Locke (1969, 1976) and by

integrating his approach with notions of behavioral theory and results of empirical analyses.

job satisfaction depends on the estimation of many dimensions, which are classified in three

groups: the work, the context, and the rewards.

The wage is the central focus of the incentive scheme, which aims at inducing workers to

exert the optimal effort level. Most attention was devoted therefore to pay-for-performance,

deferred compensation and team production (Prendergast, 1999). Nevertheless, the main

inefficiencies in these contractual schemes are linked to the costs of contracting (starting

from Coase, 1937; Williamson, 1985, 1996) and incompleteness (starting from Grossman and

Hart, 1986; Hart and Moore, 1982). The main obstacles to the achievement of first-best

contracts emerge especially in multi-tasking activities, where employee performance consists

of both quantitative and qualitative activities. Meyer et al. (1993, 2002) argue that strong

affective commitment to an organization arises because employees share values with both the

organization and its members and it is therefore predicted to be positively associated with job

performance.

“Employees with a strong affective commitment continue employment with the organization

because they want to do so.” Meyer et al. (1993, 2002). Moreover, establishing a committed

and loyal workforce may be associated with enhanced firm performance through less

opportunistic behavior on the part of employees (Green, 2008). In addition, the WERS

commitment measure is found to be positively correlated with measures of job satisfaction

and employee well-being (Bryson and White, 2008).

Unscheduled absences, often termed absenteeism, are associated with lower levels of

organizational productivity (Dilts, Deitsch, & Paul, 1985; Harrison & Price, 2003; Huczynski

& Fitzpatrick, 1989; Rhodes & Steers, 1990; Steers & Rhodes, 1978). Absenteeism is

“nonattendance of employees for scheduled work when they are expected to attend”

(Huczynski & Fitzpatrick, 1989). Because absenteeism involves nonattendance from

scheduled work in terms of hours and days rather than minutes, it is distinguishable from

being late or tardy to work (Rhodes & Steers, 1990). There are various reasons why a person

may not attend work, such as an illness, family emergency, or just to have a day off from

work. Thus, not all use of sick leave is for actual illnesses. Absenteeism is generally seen as

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the result of situational, contextual, and dispositional factors rather than an inherent trait

(Martocchio & Jimeno, 2003). Organizations can push or pull employees to be absent. The

work environment has been found to impact absenteeism, especially in terms of producing

differing levels of job satisfaction and organizational commitment. organizations may turn to

operant conditioning by providing punishments for being absent and rewards for attending

work (Rhodes & Steers, 1990). Incentives for not being absent are generally seen as reasons

or pressures to attend work (Mowday et al., 1982). An employee may find the lack of

incentives and reinforces to attend work as a reason to be absent (Robins & Lloyd, 1983)

People want to belong (to a family, to a sports team, to a work group); so branding helps

build that belonging It gets employees or customers feeling that they’re getting premium

treatment. Name brand means name recognition and customers remember your company

provided a gift to them which was a name brand easy to remember and tell others about.

( Rick Ebel, Saritha Kuruvilla 2011). price and value are not synonymous. Brand does add

value, is certainly appreciated, and buyers in particular tend to relate it to their organization’s

reputation.

If an item is something that an employee values highly but would never purchase on his or

her own, then the opportunity to earn it as a reward for hard work provides a way to obtain

the desired object without violating one’s standards of justification (Hsee, 1996). To increase

the perceived value of earning the award, the prize should be something that is infrequently

purchased. In addition, items that are not frequently purchases are likely to attract the

attention of colleagues, increasing the so-called “trophy value” of the award.( Scott

Jeffrey,2002). Tangible non-monetary incentives are also remembered longer and more

clearly than a cash bonus (Hein, 1999).

Standard economic theory says that cash is always best due to option value(flexibility of

usage) and this result is also found in survey results which confirm that most people state a

preference for cash incentives (Hein, 1998) Economists would claim that money is always

better (or at least no worse) than any non-monetary incentive of equal market value because

cash has option value (List & Shogren, 1998; Waldfogel, 1993, 1996) .However if the

employee believes that the value of the award is high, then they will be motivated to enjoy it

as much as they predicted (Bem, 1967; Festinger, 1958; Quattrone, 1985).

Effectiveness is one of the major factor in determining value of reward and incentive for

employees. The uncertain value of tangible non-monetary incentives could make them less

effective if employees do not trust the firm. For example, employees may think that the firm

is just trying to save money by somehow cheating workers. This would have a negative effect

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on the motivational power of the incentive and negative long term consequences for the

employees’ relationship with the firm (Guzzo, 1979). Non-cash rewards are more “effective”

with certain types of employees. Those employees who place high personal relevance on cash

might not respond well to non-monetary incentives (Mitchell & Mickel, 1999).

Specific objectives of the project

1) To identify the factors which affect the perception of employees/distributors/channel

partners towards methods of payment of incentive.

2) To determine the scope of payment of incentive by gift cards.

3) To understand perception of different categories of respondents based on their

demographic features.

Scope of Study

This study focuses on perception of respondents towards method of payment of incentive and

thus determining the scope of gift cards for payment of incentive.

Market analysis has been carried out in city of Dhanbad to identify the

employees/distributors/channel partners for getting their response. Responding ranging from

age below 25, 26-35,36-45 years and above 45 years are selected for the research, specially

those in category of 26-35 years of age grabs the lion’s share of the research. Both male and

female respondents participated in survey. More than 70 responses are taken into account

and then analyzed. They were asked to fill up a questionnaire which includes 15 factors apart

from 7 question related to their demography. Out of the 15 factors 5 factors are about the

behavioral outcomes of the employees and remaining 10 factors are about characteristics and

features of various methods of payment of incentive. 1 question is about the satisfaction level

of the builders whether they are satisfied with their financer. These 7 questions and 15 factors

will help in finding the perception of the respondents towards various method of payment of

incentives.

Limitations of study

The constraints faced to complete the Project are as under:-

1. Due to academic study there is time constraint to complete such a project. Moreover,

the cost to complete the Project is considered meager considering its importance.

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2. The employees are almost reluctant to share their views. However, after active

insistence, those who shared their views had also not done it properly.

3. Format of the questionnaire was lengthy. A respondent roughly was required to

devote 20 minutes of precious time in order to understand and respond to questions.

4. This study is confined to only one city (Dhanbad).

5. The sample size of respondents was only 70.

Period of study

The data collection process of my study followed an action research spiral that involved four

phases. During each phase a theory and questions were first diagnosed then followed by

planned projects and initiatives. Each project or initiative was then evaluated. These

evaluations then served as the basis for more specific exploration in the next spiral.

Each phase of research adopted a different strategy in order to observe and analyze creative

policy in action. During the first fifteen days of my two months research an in-depth review

of the factors consider important for selecting the financer was studied. A brief literature

review of the factors was studied. The theory that emerged from this first experience was

then formulated and documented into a preliminary exploratory theoretical framework.

For the next five days a proper questionnaire was framed in order to get the responses from

the builders. During the next phase of research for fifteen days the questionnaires were made

to fill up by the builders.

My findings, analyses, conclusions and recommendations sections are the outcomes of the

remaining twenty five days of my research. This method permitted an in-depth analysis of a

real world situation and gave rise to recommendations which helped in writing the

conclusion.

Total research Period 11th May 2015 to 11th July 2015

Theoretical framework 12thMay to 26thMay

Framing of questionnaire 27th May to 31st May

Getting responses from builders 1st June to 15th June

Analyzing and completing 16th June to 10th July

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8. METHODOLOGY AND ANALYSIS

Methodology

The study is quantitative and exploratory in nature, which aims to measure and compare the

impact of various methods of payment of incentive on different behavioral factors and

characteristics, in order to determine scope of Gift cards. Factors were identified by

Literature Review of the problem.

The Questionnaire is segregated into three parts. First part consists of 7 questions about

demographic profile of respondent. It includes Gender, Age, Type of Organisation, Type of

Association with Organisation, Department, Position and Experience.

Second part of questionnaire consists of 5 factors of behavioral outcomes. Motivation, Job

Satisfaction, Job Performance, Job Commitment, and Absenteeism are to be rated by

respondents.

The third part consists of 8 characteristics of method of payment of incentives namely

Branding, Personalization, Trophy Value, Flexibility of Usage, Secure to use, Easier to

Handle, Redemption, Effectiveness, Prevalent Method in my Organisation, and My Personal

Preference.

5 point Likert type scale ranging from 1 to 5 is used to gather perceptions of respondents. In

second section of questionnaire, respondents were required to compare 5 methods of payment

against each factor. Each method has to be ranked from 5(most likely) to 1(most unlikely),

based on its impact on behavioral outcomes (factors). In third section each method of

payment has to be ranked from 5(very high) to 1(very low) based upon possessiveness of

characteristics.

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Primary data as well as secondary data has been used for the purpose of study. Questionnaire

is the source of primary data and various journals and research papers were referred for

secondary data.

Total 70 questionnaires were distributed to respondents belonging to different market sector

such as Banking and Insurance, Retail, Telecom and others, out of which all were valid

generating a response rate of 100 %. Respondents were employees, channel partners, and

distributers of 15 different organisations. Respondents within an organisation were chosen

randomly. The survey was conducted in Dhanbad.

The questionnaire which was distributed among the respondents is shown below

QUESTIONNAIRE

Objective of the Study: To understand perception of employees, distributers, channel partners towards various methods of receiving incentives vis-a-vis gift cards.

Demographic Data1. Gender male female

2. Age below 25 26-35 36-45 above 45

3. Type of organisation Retail Banking and Insurance

Hospitality Telecom Others

4. Type of association Employee Distributerwith organisation Channel partner

5. Department H.R Sales and marketing IT finance

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Operations

6. Position Operative employee Supervisor Manager others

7. Experience less than 1 year 1-3 years 3-7 years More than 7 years

Please rate the likelihood of behavioral outcomes corresponding to each method of payment of incentives. Rate the alternatives as 1. Most Unlikely

2. Unlikely 3. Neutral 4. Likely 5. most likely

Parameters

Factors

Giftitems

Giftcards

cash InsurancePolicy/

RetirementBenefits

others

B OE UH TA CV OI MO EU SRAL

Motivation

Job satisfaction

Job performance

Job commitment

Absenteeism

Please rate the possessiveness of following features corresponding to each method of payment of incentive.Rate the alternatives as 1. Very Low 2. Low 3. Neutral 4. High 5. Very High

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Parameters

Factors

Giftitems

Giftcards

cash InsurancePolicy/

RetirementBenefits

others

CHARACTERISTICS

Branding

Personalization

Trophy value

Flexibility of usage

Secure to use

Easier to handle

Redemption

Effectiveness

Prevalent method in my organisation

My personal preference

Analysis

The data of survey were analyzed using Descriptive Statistics, One Way ANOVA (Repeated

Measures), Post-Hoc Analysis, and Multiple Response Analysis. The data were analysed

using IBM SPSS version 20 Statistical Package for windows. Comparative analysis for each

method of payment of incentive was done and honesty of their significance was also checked.

The report of each factor summarizes results of each statistical tool used and presents most

preferred method of payment of incentive affecting the factor.

In this project, Repeated Measures ANOVA is used as we have taken data from respondents

for different conditions (different method of payment of incentives) from same set of entities

(same set of respondents), which means that data from different conditions is related, so we

have to make an additional assumption of sphericity as Repeated Measures ANOVA is

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susceptible to violation of assumption of sphericity. So before discussing repeated measures

ANOVA we need to test sphericity.

The assumption of sphericity states that the relationship between pairs of experimental

conditions is similar, i.e. the level of dependence between pairs of condition is roughly equal.

Hence, the hypothesis needs to be tested to affirm whether assumption of sphericity holds

(for every behavioral outcome and characteristics) or not.

H0: The variance of the differences between conditions was significantly different.

H1: The variance of the differences between conditions was not significantly different.

Here, ‘conditions’ means different methods of payment of incentives such as Gift Cards ,

Cash, etc.

Mauchly’s Test of sphericity tests the Null Hypothesis stated above. Ideally, value of

Mauchly’s W is equal to 1, which means that data has perfect sphericity. As the value of

Mauchly’s W decreases from 1, the condition of sphericity decreases.

If the Mauchly’s test of sphericity is statistically significant (Significance < 0.05), we reject

null hypothesis.

If data does not violate the assumption of sphericity, we need to modify degrees of freedom.

If, the assumption of sphericity is violated, the F-statistic is positively biased rendering it

invalid and increasing the risk of a Type I error. To overcome this problem, corrections must

be applied to the degrees of freedom (DOF), such that a valid critical F-value can be

obtained. Correction is applied by calculating ‘Epsilon’. Both the Greenhouse-Geisser and

the Huynd-Feldt procedures attempt to estimate epsilon (ε). If value of sphericity is less

than .75 we use Greenhouse-Geisser correction for calculating epsilon (ε), otherwise Huynd-

Feldt corrections is used.

Repeated measures ANOVA is the equivalent of the one-way ANOVA, but for related, not

independent groups, and is the extension of the dependent t-test. It compares the means

between related groups and determines whether any of those means are significantly different

from each other. It is a test to detect any overall differences between related means. So to

establish a relationship between method of payment of incentives (dependent conditions) to

different factors of behavioral outcomes and characteristics of methods, this statistical tool is

used. In this study , same set of respondents were exposed to different but dependent set of

conditions, Repeated measures one way ANOVA is the most suitable tool to accomplish the

objective of study.

After comparison of overall means by repeated measures ANOVA, we perform pair-wise

comparison of conditions (methods of payment of incentive) to check honesty of significance

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value by performing POST-HOC Analysis. It provides us whether differences between mean

values of between pair of conditions is significant or not. This test is compulsory as overall

result of ANOVA might not hold true for all distinct pair of condition.

Further, Multiple Response analysis of data is done to understand difference of perception of

respondents based on their demographic features. MRA output shows frequencies of most

favored condition (method of payment of incentive) by respondents, for each factor

( behavioral outcomes and characteristics of payment methods). Demographic segmentation

of respondents is based on Gender, Age, Type of Organization, Type of Association with

Organization, Department, Position and Experience.

Following table explains within subject effect of method of payment of incentives.

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Table 1- Within subjects effect of Method of Payment of incentive (Mauchly’s Test Of Sphericity)

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Following table shows type of correction method and corrected degree of freedom.

Table 2- Result of ANOVA

Following table shows pair wise comparison of method of payment of incentives whose mean

difference is not significant. Overall their are 10 different pairs that are compared. All the

pair that are not shown in table have significant differences between their means (at

significance level .05). Here i and j are methods that are being compared. Methods are named

from 1 to 5 as gift items, gift cards, cash, insurance policy/ retirement benefits and others.

22

Table 3- Pair wise comparison (Post-Hoc Analysis)

23

1.) MOTIVATION

Descriptive Statistics

Descriptive statics shows cash as most preferred method. But Significance of these values is

to be tested in further analysis of data.

Table 4.1- Multiple Response Analysis for motivation

MRA output shows demographic segmentation of sample size and frequency of their most

favorable method. The table clearly shows preference of cash and gift cards by all categories.

(Table 1 – Sphericity)

Chi square = 9.045, p= .433 (>0.05), so we must accept HO and reject H1.

(Table 2 – Result of ANOVA)

24

For test of within subjects effect, E=.874 (>0.75), therefore we Huyhn- Feldt value is being

used. F is significant because its p value is 0.00, which is less than criterion of .05. Moreover,

results are same for all corrections.

Thus we can say that there is a significant difference in motivation induced to respondents by

different methods of payment of incentives.

(but this test doesn’t specify which method was most motivating).

(Table 3- Post-Hoc Tests)

By looking at values, we see that differences between pair wise comparison of mean are

insignificant only between gift-cards & cash and between insurance policy/retirement

benefits & others.

REPORT of one-way Repeated Measures ANOVA

As shown by Descriptive Statistics, Repeated measures ANOVA Also shows that there is

significant difference between motivation effects of method of payment of incentives. Then

after checking for honesty of significance value we find that Cash and Gift cards have better

motivating effect than rest of methods.(tough difference between there means are not

significant so we cannot comment on the best method)

2.) Job Satisfaction


Descriptive statics shows cash as most preferred method. But Significance of these values are


25

Table 1.1- Multiple response Analysis for Job Satisfaction




Chi square = 19.460, p= .022 (<0.05), so we must reject HO and accept H1.





26

Thus we can say that there is no significant difference in motivation induced to respondents

by different methods of payment of incentives.




benefits & others.


Contrary to findings of Descriptive Statistics, Repeated measures ANOVA also shows that

there is no significant difference between satisfaction effects of method of payment of

incentives. Then after checking for honesty of significance value we find that Cash and Gift

cards have better satisfying effect than rest of methods.

3.) Job Performance


Descriptive statics shows cash as most preferred method. But Significance of these values is


27

Table 1.3- Multiple response Analysis for Job Performance




Chi square = 18.583, p= 0.029 (<0.05), so we must reject HO and accept H1.








28




benefits & others.



there is no significant difference between performance effects of method of payment of



4.) Job Commitment




29

Table 1.4- Multiple response Analysis for Job Commitment




Chi square = 10.418, p= .318 (>0.05), so we must accept HO and reject H1.







( but this test doesn’t specify which method was most motivating).




benefits & others.


30


significant difference between job commitment effects of method of payment of incentives.

Then after checking for honesty of significance value we find that Cash and Gift cards have

better motivating effect than rest of methods.(tough difference between there means are not


5.) Absenteeism




31

Table 1.5- Multiple response Analysis for Absenteeism






For test of within subjects effect, E=.602 (<0.75), therefore we Greenhouse-Geisser value is

being used. F is significant because its p value is 0.00, which is less than criterion of .05.

Moreover, results are same for all corrections.







benefits & others.


As shown by Descriptive Statistics, Repeated measures ANOVA Also shows that there is significant difference between absenteeism effects of method of payment of incentives. Then after checking for honesty of significance value we find that Cash and Gift cards have better motivating effect than rest of methods.(tough difference between there means are not significant so we cannot comment on the best method)

32

6.) Branding




Table 1.6- Multiple response Analysis for Branding




33

Chi square = 26.935, p= .0.001 (<0.05), so we must reject HO and accept H1.


For test of within subjects effect, E=0.671 (<0.75), therefore we Greenhouse-Geisser value is







insignificant only between gift items & gift cards, gift items & cash and between gift card &

cash.

REPORT of one-way Repeated Measures ANOVAContrary to findings of Descriptive Statistics, Repeated measures ANOVA also shows that there is no significant difference between branding of method of payment of incentives. Then after checking for honesty of significance value we find that Gift cards and Gift items have better satisfying effect than rest of methods.

7.) Personalization




34

Table 1.6- Multiple response Analysis for Personalization






For test of within subjects effect, E=.663 (<0.75), therefore we Greenhouse-Giesser value is






35


insignificant only between gift-cards & gift items and between insurance policy/retirement

benefits & others.



there is no significant difference between personalization of method of payment of

incentives. Then after checking for honesty of significance value we find that Gift items and

Gift cards have better satisfying effect than rest of methods.

8.) Trophy Value




36

Table 1.6- Multiple response Analysis for Trophy Value






For test of within subjects effect, E=.695 (<0.75), therefore we Greenhouse-Geisser value is








insignificant only between gift-cards & gift items.


Contrary to findings of Descriptive Statistics, Repeated measures ANOVA shows that there

is no significant difference between trophy value of method of payment of incentives. Then

after checking for honesty of significance value we find that Gift Items and Gift cards have

better satisfying effect than rest of methods

37

9.) Flexibility of Usage




Table 1.6- Multiple response Analysis for Flexibility Of Usage





38


For test of within subjects effect, E=.739 (<0.75), therefore we Greenhouse-Giesser value is







insignificant only between gift-cards & cash, gift item & gift card and between insurance

policy/retirement benefits & others.



there is no significant difference between flexibility of use of method of payment of



10.)Secure to Usage




39

Table 1.6- Multiple response Analysis for Secure To Use






For test of within subjects effect, E=0.713 (<0.75), therefore we use Greenhouse-Geisser

value is being used. F is significant because its p value is 0.00, which is less than criterion

of .05. Moreover, results are same for all corrections.





40


insignificant only between gift-cards & cash, gift items & cash and between insurance

policy/retirement benefits & others.



there is no significant difference between security of usage of method of payment of



11.)Easier to Handle




41

Table 1.6- Multiple response Analysis for Easier To handle




Chi square = 11.118, p= 0.268 (>0.05), so we must accept HO and reject H1.









42


insignificant only between gift-cards & cash.



significant difference between handling of method of payment of incentives. Then after

checking for honesty of significance value we find that Cash and Gift cards have better



12.)Redemption




43

Table 1.6- Multiple response Analysis for Redemption




Chi square =12.907, p= 0.167 (>0.05), so we must accept HO and reject H1.









44



benefits & others.



significant difference between redemption of method of payment of incentives. Then after




13.)Effectiveness




45

Table 1.6- Multiple response Analysis for Effectiveness




Chi square = 10.972, p=0.278 (>0.05), so we must accept HO and reject H1.


For test of within subjects effect, E=0.850 (>0.75), therefore we Huyhn- Feldt value is being







46


insignificant only between gift-cards & cash.



significant difference between effectiveness of method of payment of incentives. Then after




14.)Prevalent method in my organization




47

Table 1.6- Multiple response Analysis for Prevelant Method






For test of within subjects effect, E=0.75 (>=0.75), therefore we Huyhn- Feldt value is being







48


insignificant only between gift-cards & cash, gift item & gift card, gift item & and cash and

between insurance policy/retirement benefits & others.



significant difference between prevalence of method of payment of incentives. Then after


motivating effect than rest of methods

15.)My personal Preference


Descriptive statics shows cash as most preferred method. But Significance of these values

are to be tested in further analysis of data.

49

Table 1.6- Multiple response Analysis for Personal preference




Chi square = 13.477, p= 0.142 (>0.05), so we must accept HO and reject H1.











benefits & others.



significant difference between preference of method of payment of incentives. Then after




50

Conclusions

Figure: Demographic Segmentation of respondents

The table mentioned above shows demographic categorization of respondents and is self

explanatory. This study considers 15 factors which are divided into two categories namely

behavioral outcomes and characteristics of method of payment of incentive. The findings of

the study reveals that cash and gift cards are most favored method among all behavioral

factors but we cannot comment on best method between them as difference between their

means is not significant. Further investigation of factors based on characteristics, reveals that

gift cards and gift items were more favorable than cash for factors like branding, trophy value

and personalization. For rest of characteristics, cash and gift cards were most favored

alternative.

Thus we may conclude that apart from cash, gift cards are best method of payment of

incentive.

51

This study also attempts to examine these factors along with the demographic factors of the

respondent. As Repeated Measures one way ANOVA test was used to establish a relationship

between methods of payment and factors, it was found out that respondents perceived each

and every method differently. It was found that there is no significant difference between

impact of cash and gift cards over various behavioral factors.

Recommendations

The organization should provide incentive according to preferences of employees

depending upon their demographic preferences as shown in multiple response

Analysis Output.

The organization should provide gift cards instead of cash wherever required as there

is no difference between acceptances of both of them as shown by study.

The organization should provide gift items for incentives whose main aim is to

provide trophy value to recipient.

As most of employees prefer Gift cards and cash over rest of alternatives,

management should try to give them gift cards wherever convenient or possible.

9. Bibliography

Journals

52

i. Amabile, T. M., Hennessey, B.A., and Grossman, B.S. 1986. Social influences on

creativity: The effects of contracted-for reward, Journal of Personality and Social

Psychology, Vol.50, pp 14-23.

ii. Brooks, c., Holtom Terence, R.,T, Mitchell.,W lee.,(2006) Increasing human and social

capital by applying job embeddednes theory, Organizational Dynamics, Vol. 35, No.

4, pp. 316–331

iii. Brown, S., McHardy, J., McNabb, R., & Taylor, K. Workplace Performance, Worker

Commitment and Loyalty, University of Sheffield Discussion Paper No. 5447

iv. Depedri, S., Tortia, E. and Carpita, M. (2010), Incentives’ Job Satisfaction and

Performance: Empirical Evidence in Italian Social Enterprises,(2011). Euricse

Working Papers, Vol 10, No. 12 pp. 33-45.

v. H,Chen-Jung., F,Tung., H,Sue-Chen.(2014). A study of the Effect of Incentive

System on Job Performance: An Example of Hotel’s IT Staffs in Taiwan, The Journal

of Global Business Management Vol. 10, No. 2, pp 57-66.

vi. Hochwarter, W. A., Perrewe, P. L., & Ferris, G. R. (1999). Job satisfaction and

performance: The moderating effects of value attainment and affective position.

Journal of Vocational Behavior, 54, 296-313.

vii. J, Gary.(2010). Presenteeism in the workplace: A review and research agenda

Journal of Organizational Behavior Vol 31, pp. 519–542.

viii. K, Tung-Sheng., L, Mei-Mei. & L, Chun-Hsiung.(2013). Volunteer Turnover at

Nonprofit Organizations: A Study of Lifeline in Taiwan, Asian Social Science; Vol. 9,

No. 1.

ix. Matthew, C. Bloom., George., T. Milkovich.(1997). Cornell The Relationship

Between Risk, Incentive Pay, and Organizational Performance, Managerial

Compensation Research, Vol. 20, pp 1-26.

x. Steven J, Condly., Richard, E., Clark Harold. & D. Stolovitch. ( The Effects of

Incentives on Workplace Performance: A Meta-analytic Review of Research Studies

Steven, Performance Improvement Quarterly, Vol.16, No.3. pp 46-63.

xi. U,Ugwu., Coker.M.A.(2012). Incentive Schemes, Employee Motivation and

Productivity In Organizations In Nigeria: Analytical Linkages, IOSR Journal of

Business and Management ,Vol 1, No. 4, pp 32-39.

53

xii. Yukl, G.A., Latham, G.P., & Pursell, E.D. (1976). The effectiveness of performance

incentives under continuous and variable ratio schedules of reinforcement. Personnel

Psychology, Vol 29,pp. 221-231.

Books

i. Malhotra, N.K.(2005),Marketing Research: An applied orientation, New Delhi:

Pearson Education..

ii. Robbins, Stephen P.,(2008). Organizational Behavior, 9th ed., New Delhi: Prentice-

Hall.

iii. Mamoria, C.B., Rao V.S.P.,(2012) Personnel Management, 13th

ed..Mumbai:Himalaya Publishing house.

Annual Reports

i. State Bank of India. (2015). 2013-14 annual report of the State Bank of India.

Retrieved from http://www.sbi.co.in/portal/web/corporate-governance/annual-report-

2013-14.

ii. Vodaphone India Ltd. (2015). 2013-14 annual report of the Vodaphone India.

Retrieved from http://www.vodaphone.co.in/web/about-us/annual-report-2013-14

Electronic Version

i. Introduction about the organization. Retrieved July 1, 2015,

https://www.sbi.co.in/portal/web/about-us/evolution-of-sbi

54

https://www.sbi.co.in/portal/web/about-us/evolution-of-sbi

http://www.vodaphone.co.in/web/about-us/annual-report-2013-14

http://www.sbi.co.in/portal/web/corporate-governance/annual-report-2013-14

http://www.sbi.co.in/portal/web/corporate-governance/annual-report-2013-14

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