INTRODUCTION

The extent of training is PepsiCo India Holdings Pvt. Ltd. Bazpur. The main objective of this training is to make prevails in the organization, and try to learn, to perform tasks & as required at the time allotted. This training also makes the students more practical in their work approach. They are made to undertake a project & to do some study on the concerned topic & arrive at feasible solution. The organization is a bottling plant of PepsiCo. It was very enthusiastic to do the summer training in such an esteemed organization because it is one of the largest profit making companies in World. PepsiCo is one of the companies that are having a very result oriented work approach with highly learned & experienced employees with great skills & knowledge. The topic for study was HR Practices and Their Motivational Impacts. This topic was
2. Searches selected because it helps the HR department to know the effectiveness of its HR practices which for needs To satisfy creates the interest of HR department for the study. Hence it was very interesting & fascinating 1. Identifies the needs Needs to do the project in HR Practices and Their Motivational Impacts. needs

Motivation: A basic principle is that the performance of an individual depends on his or her ability backed by motivation, algebraically the principle is: Performance= f (ability motivation)
3. Engages in 6. Reassess goal Motivation is the complex forces starting and keeping a person at work in an organization. Employee needs Directed Deficiencies behaviour Motivation is something that moves the person to action, and continues him in the course of

action already initiated. The framework shown in figure helps us to understand better.

5. Receives either rewards or punishment

4. Performs

Fig-1 Framework of Motivation

HR Practices: A Best Practice in HR is a particular method, approach, or practice of managing people which has a positive impact on a companys overall business performance by improving employee satisfaction, employee motivation, and customer Satisfaction, and/or bottom-line business performance.

Organisational Effectivity

Communication Initiatives

Processes & systems

Fig-2 Best Practices: An Overview

Some Good HR Practices at Bazpur Pepsi Plant: Pepsi Bazpur, are committed towards a mode of management that aims at building a workforce that is motivated and aligned to organizational objectives. They believe that satisfied employees are effective employees. Hence, it is their endeavor to proactively anticipate their needs and deal with them in a systematic and sustainable manner. Over the years, this approach has helped the management team at Pepsi Bazpur to arrive at a comprehensive package of employee welfare activities that it offers to its employees. The attempt is to make working in the plant enjoyable, and also lend support in meeting demands that life puts on individuals outside of workplace. These activities have been result of their continual interaction with other employees and have increased in number over the years. At Pepsi Bazpur plant many HR practices are used for the employees, but these practices can be categorized on the following basis:

Financial

Non-Financial

1.Salary advance/ Loan Facility 2.Uniform 3. Reward and Recognition 4. Occasional Gifts 5.Hospitalization Insurance 6.Free Doctor Consultancy 7.Annual free medical checkup 8.Scholarship Program 9.Learn smart( Training

1. Performance Appraisal (i) MBO for Staff

(ii) 360 degrees for workers 2. System of half yearly appraisal review 3. Employee Recognition program 4. Home Visit/Nanhe Sitare 5. Safety related Training 6. Training Hut and 7. Sports day 8. Annual Day 9. Small Ongoing Celebrations 10.Community Development in villages of associates 11.Monthly employee communication: Sankalp 12.Birth day celebration Of employees 13.Idea Acceptance Award 14. Employee of the Month

development facilities) 10. Domiciliary reimbursement

Table 1:- Financial and Nonfinancial practices (A) Financial Activities:4

1.

Salary advance/ Loan Facility: This facility is extended to all confirmed associates. An interest free salary advance of maximum Rs 5000/- is granted to associates in case of a medical emergency in family or marriage of employee/ close relative. The amount is recovered in 10 equal installments over a period of 10 months.

2.

Uniform: All associates (confirmed/ probationers/ trainees) are provided with summer uniform once a year in March. The kit includes 2 half-sleeve shirts, I full sleeve shirt, 2 pairs of trousers, 1 pair of shoes. They are also provided a pullover/ jacket for winters once in every two years.

3.

Reward and Recognition: The top 3 suggestions in the monthly suggestion contest are awarded gifts worth Rs 200, Rs 150, and Rs 100. These are also household utility items like a set of knifes, coffee mugs etc

4.

Occasional gifts: On the marriage of an associate, a gift worth Rs 700 is presented on behalf of the organization. Generally these gifts are household utility items like dinner set etc and occasional gifts are also distributed to the employees on special occasions like Holi, Diwali, and Annual Day.

5.

Hospitalization Insurance: All associates, their spouse and children are covered under hospitalization insurance with new India insurance company up to Rs 20,000 per head for hospitalization and Rs 4,000 for pre and post domiciliary medical.

6.

Free Doctor Consultancy: All associates are eligible for free medical checkup and prescription in case of any such need by a Medical practitioner who has been retained by the Company.

7.

Annual free medical checkup: All associates go through an annual general physical examination, blood test and eye check in the plant premises by doctors retained by the company.

8.

Scholarship for workmen wards: We will call this The "Nanhe Sitare" Program. Mechanics:

Children of employees who have completed 5 years of service in this plant will be eligible on 1st April 2004 will be eligible for this scholarship.

Only one child would be eligible per family. Only those children who are among the top 5 in their class and have scored above 75% in annual examination in 2004 will be eligible for the scholarship.

Two children will be selected from standard 1 and 2. We will bear 100% tuition fee for the top scorer and 75% of the tuition fee for the second.

Two children will be selected from standard 3 and 4. We will bear 100% tuition fee for the top scorer and 75% of the tuition fee for the second.

The payout will be directly to the school. Performance of the 4 children will be reviewed after 6 months, and the scholarship will be continued only if they score above 75% in their half yearly examinations.

9.

Learn Smart: learn smart is a training and development program which is provided to the staff employee. In this scheme an annual amount is provided to the employees on the basis of their designation, by which they can join training and development programs according to their needs. In training program all the expenses are provided to the employees.

10. Domiciliary reimbursement: All Associates (Trainees/ probationers and confirmed) are eligible for Rs 50 per month or Rs 600 per annum for medical bills reimbursement from the company on production of bills. (B) Non Financial Activities:-

1.

Performance Appraisal: In Pepsi the method of performance appraisal is different from staff members and workers. 6

(a) MBO for staff members: - For staff members Performance is appraised by Management By objective once in a year. In this method each employee is assigned by its some objectives which he/she has to fulfill within the year. And promotions are given on that basis.

Fig-3 Process of MBO

(b)

360 Degree performance Appraisal for workers:- 306 degree technique is understood as systematic collection of performance data on an individual or group, derived form number of stakeholders-the stakeholders being the immediate supervisor, team members, customers, peers and self. The performance of associates is appraised by this method

2.

System Of half yearly appraisal review: In Pepsi performance appraisal is done by the Management by Objective, hence the each employee has its own goals which he has to complete in a year, and then the promotions are provided on that basis. So an half yearly appraisal review is done in the organisation which appraise the performance of an employee after completing six months by which the employee comes to know that how much task he has to achieve is the next coming months to complete his objectives. 7

3.

Employee Recognition Program: Exemplary performance and contributions, suggestions etc are recognized through putting it up on common notice boards on an ongoing basis.

4.

Home Visit/ Nanhe Sitare: It is a special Practice which is exercised the Pepsi. In this practice the staff members visit the house of the workers, give some gifts to their children and take pictures of their small kids with the products of Pepsi. And these pictures are pasted in the manufacturing area. So by this a good relationship is maintained between the worker and staff members, which leads to the healthy environment in the organisation.

5.

Safety related training (Fire Fighting Training): All associates are covered at least once a year in training on how to use different kinds of fire extinguishers. The plant has up to 70 extinguishers placed at various points. They are also provided with other training like material handling equipment. Video shows are organized on special occasions like the Safety Day, Electrical Safety week.

6.

Training Hut: The plant has an aesthetically built training center that we term as the training hut. All refresher courses, safety awareness sessions and communications are conducted in the training hut. The plant has a full range of audio-visual equipment to provide training in an effective manner.

7.

Community Development in villages of associates: The Management at Pepsi believes in contributing towards the development of society around us. We have been regular in conducting activities like Safe LPG Usage, Awareness on Literacy for women, Personal hygiene and child care, Dental care in the surrounding villages. The attempt is to visit villages to which our associates belong. This helps associates maintain a responsible image in their neighborhood.

8.

Monthly employee communication: Sankalp: A communication, termed Sankalp with all associates is conducted once a month. Other than sharing information on monthly performance, it is also an open forum where associates are encouraged to share their concerns. Several of the initiatives 8

mentioned above (Paratha in canteen/ drinking water closer to workplace) are an outcome of problems highlighted by associates in such meetings. It is in this forum that associates are congratulated publicly on getting married and on having children etc. it is a forum where the concept of Pepsi family truly gets reflected. 9. Sports Day: This is celebrated once a year in August/ September and is a culmination of sports tournaments like volley ball, Badminton, 100 m races etc. The day also sees games for ladies and children. All members of the Pepsi family with their families celebrate this day. This day also sees the recognition of 10 associates who have performed brilliantly in the first 6 months of the year. These associates are awarded a gift of Rs 500/10. Annual day: This is celebrated once a year in Feb/ March. All associates and staff along with their families celebrate this day. The day comprises of cultural activities and games. This day also sees the recognition of 10 associates who have performed brilliantly in the second 6 months of the year. These associates are awarded a gift of Rs 500/11. Small and ongoing celebrations: Various celebrations like Pepsi Day, Dewali and Holi celebration is done in the organisation, which maintains a good environment in the organisation. The daily wins like record breaking production etc are celebrated with distribution of sweets, which encourages the employees. 12. Birthday celebration: Sweets are distributed on the birthday of any employee, this encourage the employee and emerge the feeling of recognition. 13. Idea Acceptance Reward: This initiative rewards an employee who comes up with a new idea or a proof of concept beneficial to the organization. This award is also designed to develop the employees proficiency. 14. Employee of the Month This initiative is a reward for the employees excellence in their mission. Any achievement made or additional efforts put in by the employees in their assigned tasks 9

that result in customer satisfaction or process improvement is recognized and rewarded suitably through this program. Motivational Impact of HR Practices: All the practices which are used in PepsiCo holdings India Pvt. Ltd. Motivate the employees directly or indirectly. Motivational Impacts of practices which are described above are as follows: a. Distribution of similar uniform to all the employees develops the feeling equality to the employees. b. Scholarship program provided to the kids of associates reduce the financial burden of the studies. c. One of the important practices which improve the skills of the employees is learn smart and training facility, which encourages them to work confidently. d. Reward and recognition is a practice which motivate the employees to do some good works apart from their duties. e. Home visit a practice in which staff members visit the associates house and take the pictures of their kids and these pictures are pasted in plant, which encourages the employees. f. Visual Recognition is a practice which immerge the feeling of recognition by their bosses after doing some special work. So that we can conclude that all the practices which are used at Pepsi Plant either these are financial or non financial motivate employees to do their work with dedication and concentration.

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SCOPE AND IMPORTANCE Objectives Of the project:

To analyse the impacts of financial HR practices. To analyse the impacts of non financial HR practices. To seek the effect of HR practices on employee motivation.

Scope of the project:

In this study the researcher is concentrating on the best use of HR practices for employee motivation. It improves the living conditions, relationship of employers & employees as well as the production & image of a company. This project aim to bring out basic HR Practices which are essential for any industrial unit to make all human resources, more effective & satisfactory

Importance of the project:

The project concentrates upon the HR practices and their best utilization for employee motivation, which makes the study important due to following reasons: It impacts customer satisfaction. Enhances internal capabilities of an organization to deal with current or future change. It influences financial and other performance indicators. Energizes and encourage employees to work. Employees work with full dedication which leads to good quality product. It reduces accidents in the manufacturing area.

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LITERATURE REVIEW
Literature Review is defined as the study of various principle and concepts which have already being published it is the review of previous work done on the concerned subject by the experts. Since the report is based on Motivational Effects of HR Practices in the company PepsiCo India Pvt. Ltd. HUMAN RESOURCE MANAGEMENT: Human Resource Management is a management function that helps managers recruit, select, train and develops members for an organization. Human Resource Management is concerned with the people, who work in the organization to achieve the objective of the organization. It concerns with acquit ion of appropriate human resources; motivating them for best performance & ensuring their continued commitment to the organization to achieve organization objectives. This definition applies to all types of organization, e.g. industry, business, government, education, health or social welfare of the people. Human Resource Management refers to activities & functions designed & implemented to maximize organization as well as employees effectiveness. Human resources is a term in which many organizations describe the combination of traditionally administrative personnel functions with performance management, employee relations and resource planning. The field draws upon concepts developed in

Industrial/Organizational Psychology. Human resources has at least two related interpretations depending on context. The original usage derives from political economy and economics, where it was traditionally called labor, one of four factors of production. The more common usage within corporations and businesses refers to the individuals within the firm, and to the portion of the firm's organization that deals with hiring, firing, training, and other personnel issues. This article addresses both definitions. 12

The objective of Human Resources is to maximize the return on investment from the organization's human capital and minimize financial risk. It is the responsibility of human resource managers to conduct these activities in an effective, legal, fair, and consistent manner. Human resource management serves these key functions: 1. Hiring (recruitment) 2. Compensation 3. Evaluation and Management (of Performance) 4. Promotions 5. Managing Relations 6. Planning

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MODERN ANALYSIS OF HUMAN RESOURCES:-Modern analysis emphasizes that human beings are not "commodities" or "resources", but are creative and social beings that make class contributions beyond 'labor' to a society and to civilization. The broad term human capital has evolved to contain some of this complexity, and in micro-economics the term "firm-specific human capital" has come to represent a meaning of the term "human resources."

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Advocating the central role of "human resources" or human capital in enterprises and societies has been a traditional role of socialist parties, who claim that value is primarily created by their activity, and accordingly justify a larger claim of profits or relief from these enterprises or societies. Critics say this is just a bargaining tactic which grew out of various practices of medieval European guilds into the modern trade union and collective bargaining unit. A contrary view, common to capitalist parties, is that it is the infrastructural capital and (what they call) intellectual capital owned and fused by "management" that provides most value in financial capital terms. This likewise justifies a bargaining position and a general view that "human resources" are interchangeable. A significant sign of consensus on this latter point is the ISO 9000 series of standards which requires a "job description" of every participant in a productive enterprise. In general, heavily unionized nations such as France and Germany have adopted and encouraged such descriptions especially within trade unions. One view of this trend is that a strong social consensus on political economy and a good social welfare system facilitates labor mobility and tends to make the entire economy more productive, as labor can move from one enterprise to another with little controversy or difficulty in adapting. An important controversy regarding labor mobility illustrates the broader philosophical issue with usage of the phrase "human resources": governments of developing nations often regard developed nations that encourage immigration or "guest workers" as appropriating human capital that is rightfully part of the developing nation and required to further its growth as a civilization. They argue that this appropriation is similar to colonial commodity fiat wherein a colonizing European power would define an arbitrary price for natural resources, extracting which diminished national natural capital.

15

The debate regarding "human resources" versus human capital thus in many ways echoes the debate regarding natural resources versus natural capital. Over time the United Nations have come to more generally support the developing nations' point of view, and have requested significant offsetting "foreign aid" contributions so that a developing nation losing human capital does not lose the capacity to continue to train new people in trades, professions, and the arts. An extreme version of this view is that historical inequities such as African slavery must be compensated by current developed nations, which benefited from stolen "human resources" as they were developing. This is an extremely controversial view, but it echoes the general theme of converting human capital to "human resources" and thus greatly diminishing its value to the host society, i.e. "Africa", as it is put to narrow imitative use as "labor" in the using society. In a series of reports of the UN Secretary-General to the General Assembly over the last decade [e.g. A/56/162 (2001)], a broad intersect oral approach to developing human resourcefulness has been outlined as a priority for socio-economic development and particularly anti-poverty strategies. This calls for strategic and integrated public policies, for example in education, health, and employment sectors that promote occupational skills, knowledge and performance enhancement. In the very narrow context of corporate "human resources", there is a contrasting pull to reflect and require workplace diversity that echoes the diversity of a global customer base. Foreign language and culture skills, ingenuity, humor, and careful listening, are examples of traits that such programs typically require. It would appear that these evidence a general shift to the human capital point of view, and an acknowledgment that human beings do contribute much more to a productive enterprise than "work": they bring their character, their ethics, their creativity, their social connections, and in some cases even their pets and children, and alter the character of a workplace. The term corporate culture is used to characterize such processes. The traditional but extremely narrow context of hiring, firing, and job description is considered a 20th century 16

anachronism. Most corporate organizations that compete in the modern global economy have adopted a view of human capital that mirrors the modern consensus as above. Some of these, in turn, deprecate the term "human resources" as useless. As the term refers to predictable exploitations of human capital in one context or another, it can still be said to apply to manual labor, mass agriculture, low skill "McJobs" in service industries, military and other work that has clear job descriptions, and which generally do not encourage creative or social contributions. In general the abstractions of macro-economics treat it this way - as it characterizes no mechanisms to represent choice or ingenuity. So one interpretation is that "firm-specific human capital" as defined in macro-economics is the modern and correct definition of "human resources" - and that this is inadequate to represent the contributions of "human resources" in any modern theory of political economy. MODERN CONCEPT OF HUMAN RESOURCES: Though human resources have been part of business and organizations since the first days of agriculture, the modern concept of human resources began in reaction to the efficiency focus of Taylorism in the early 1900s. By 1920, psychologists and employment experts in the United States started the human relations movement, which viewed workers in terms of their psychology and fit with companies, rather than as interchangeable parts. This movement grew throughout the middle of the 20th century, placing emphasis on how leadership, cohesion, and loyalty played important roles in organizational success. Although this view was increasingly challenged by more quantitatively rigorous and less "soft" management techniques in the 1960s and beyond, human resources had gained a permanent role within an organization. Human resource management is the strategic and coherent approach to the management of an organization's most valued assets - the people working there who individually and collectively contribute to the achievement of the objectives of the business. The terms "human resource management" and "human resources" (HR) have 17

largely replaced the term "personnel management" as a description of the processes involved in managing people in organizations. Human Resource management is evolving rapidly. Human resource management is both an academic theory and a business practice that addresses the theoretical and practical techniques of managing a workforce.

NEW HR MANDATE
SUPPORTING BUSINESS NEEDS (HR Structure, Recruitment, & Allocation) CUSTOMER SATISFACTION (Competent Workforce, delivering quality) EMPLOYEE ENGAGEMENT (Satisfaction, Career Aspirations & Celebrations) KEY METRICS REVIEW & PLANNING (Staffing, Attrition, Performance, EVA) INTERNAL PROCESSES & SYSTEMS (Evolving HR Processes) DEVELOPMENT OF HR WORKFORCE (Competency Planning, & Development )

Fig -4 New HR Mandate

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SYNONYMS: Its Synonyms include:-

Personnel administration Personnel management Manpower management Industrial management Fig-5 Cumulative nature of HRM

But these traditional expressions are becoming less common for the theoretical discipline. Sometimes even industrial relations and employee relations are confusingly listed as synonyms, although these normally refer to the relationship between management and workers and the behavior of workers in companies. The theoretical discipline is based primarily on the assumption that employees are individuals with varying goals and needs, and as such should not be thought of as basic business resources, such as trucks and filing cabinets. The field takes a positive view of workers, assuming that virtually all wish to contribute to the enterprise productively, and that the main obstacles to their endeavors are lack of knowledge, insufficient 19

training, and failures of process. HRM is seen by practitioners in the field as a more innovative view of workplace management than the traditional approach. Its techniques force the managers of an enterprise to express their goals with specificity so that they can be understood and undertaken by the workforce, and to provide the resources needed for them to successfully accomplish their assignments. As such, HRM techniques, when properly practiced, are expressive of the goals and operating practices of the enterprise overall. HRM is also seen by many to have a key role in risk reduction within organizations. Synonyms such as personnel management are often used in a more restricted sense to describe activities that are necessary in the recruiting of a workforce, providing its members with payroll and benefits, and administrating their work-life needs. ACADEMIC THEORY: The goal of human resource management is to help an organization to meet strategic goals by attracting, and maintaining employees and also to manage them effectively. The basic premise of the academic theory of HRM is that humans are not machines, therefore we need to have an interdisciplinary examination of people in the workplace. Fields such as psychology, industrial engineering, industrial and organizational psychology, industrial relations, sociology, and critical theories: postmodernism, post-structuralism play a major role. Many colleges and universities offer bachelor and master degrees in Human Resources Management. One widely used scheme to describe the role of HRM, developed by Dave Ulrich, defines 4 fields for the HRM function:

Strategic business partner Change agent Employee champion Administration 20

However, many HR functions these days struggle to get beyond the roles of administration and employee champion, and are seen rather as reactive than strategically proactive partners for the top management. In addition, HR organizations also have the difficulty in proving how their activities and processes add value to the company. Only in the recent years HR scholars and HR professionals are focusing to develop models that can measure if HR adds value. CRITICAL ACADEMIC THEORY: Postmodernism plays an important part in Academic Theory and particularly in Critical Theory. Indeed Karen Legge in 'Human Resource Management: Rhetorics and Realities' posses the debate of whether HRM is a modernist project or a postmodern discourse (Legge 2004)? In many ways, critically or not, many writers contend that HRM itself is a movement away from the modernist traditions of personnel (man as machine) towards a postmodernist view of HRM man as individuals. Critiques include the notion that because 'Human' is the subject we should recognise that people are complex and that it is only through various discourses that we understand the world. Man is not Machine, no matter what attempts are made to change it i.e. Modernism. Critical Theory also questions whether HRM is the pursuit of "attitudinal shaping" (Wilkinson 1998), particularly when considering empowerment, or perhaps more precisely pseudo-empowerment - as the critical perspective notes. BUSINESS PRACTICE: Human resources management comprises several processes. Together they are supposed to achieve the above mentioned goal. These processes can be performed in an HR department, but some tasks can also be outsourced or performed by line-managers or other departments. Workforce planning

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Recruitment (sometimes separated into attraction and selection) Induction and Orientation Skills management Training and development Personnel administration Compensation in wage or salary Time management Travel management (sometimes assigned to accounting rather than HRM) Payroll (sometimes assigned to accounting rather than HRM) Employee benefits administration Personnel cost planning Performance appraisal

CAREERS: The sort of careers available in HRM is varied. There are generalist HRM jobs such as human resource assistant. There are careers involved with employment, recruitment and placement and these are usually conducted by interviewers, Equal Opportunity Employment specialists or college recruiters. Training and development specialism is often conducted by trainers and orientation specialists. Compensation and benefits tasks are handled by compensation analysts, salary administrators, and benefits administrators. PROFESSIONAL ORGANIZATIONS: Professional organizations in HRM include the Society for Human Resource Management and the Chartered Institute of Personnel and Development.

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SCOPE OF HUMAN RESOURCE: One very important trend in the recent times has been the growth of human resource outsourcing. HR outsourcing is the outsourcing of peripheral but necessary administrative tasks such as payroll, benefits, education/training, recruiting personnel, administration, to realize economies of scale and achieve standardization of services. Rapidly changing market dynamics and global competitive pressures have caused organizations to spend more time focusing on their core business. Organizations are fast realizing that they can't be all things to all people. So companies now, be it a software company, a service provider or a manufacturing firm, decide what they are good at and outsource everything else, i.e., focus on their core competency, and let someone else do the rest in a more efficient and cost-effective manner. As a result, human resources outsourcing is becoming increasingly prevalent. The number of companies outsourcing HR activities continues to rise, and the scope of outsourced HR activities continues to expand. HR outsourcing can happen in HR functions, like payroll administration (producing checks, handling taxes, dealing with sick-time and vacations), employee benefits (Health, Medical, Life insurance, Cafeteria, etc), human resource management (hiring and firing, background interviews, exit interviews and wage reviews), risk management, etc. Outsourcing has become a common response to manage people and technology resources strategically, enhance services, and manage costs more effectively. Outsourcing no core activities allows HR professionals to move away from routine administration to a more strategic role. The organization can focus on higher value-added activities while the outsourcing provider takes care of the day-to-day administration. Critical internal resources, such as technology and talent, can be devoted to company's core business. Outsourcing reduces the need for large capital expenditures in no core functions. Thus, outsourcing becomes a strategy for reducing the capital intensity of the business. This strategy has gained popularity as companies aim to become more nimble and gain the speed and flexibility necessary to compete in today's business environment. 23

A growing number of executives understand the benefits it can bring in terms of not only cost savings, but also heightened strategic focus. Many recognize outsourcing relationships as longterm partnerships created to further the strategic goals of the organization.

Need for HR Value Changing Dynamics

Change in internal environment Change in external environment

Competition

Company focus Nature of work Employee profile Employee aspiration

Technology Globalization Local & foreign regulations

Fig- 6 Changes In HR values HR VISION: "To attain organizational excellence by developing and inspiring the true potential of companys human capital and providing opportunities for growth, well being and enrichment". HR MISSION: "To create a value and knowledge based organization by inculcating a culture of learning, innovation & team working and aligning business priorities with aspiration of employees leading to development of an empowered, responsive and competent human capital".

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HR STRATEGIES: To meet challenging demands of the business environment, focus of the HR Strategy is on: Change of employees mindset' Building quality culture and resource , Re-engineering and redeployment for maximizing utilization of HR Potential Re-strengthening mutual faith, trust and respect Inculcating a spirit of learning & enjoying challenges Developing Human Resource through virtual learning, providing opportunities for growth, inculcating involvement and exposure to benchmarking in performance. HUMAN RESOURCE DEVELOPMENT: In terms of recruitment and selection it is important to consider carrying out a thorough job analysis to determine the level of skills/technical abilities, competencies, flexibility of the employee required etc. At this point it is important to consider both the internal and external factors that can have an impact on the recruitment of employees. The external factors are those out-with the powers of the organization and include issues such as current and future trends of the labor market e.g. skills, education level, government investment into industries etc. On the other hand internal influences are easier to control, predict and monitor, for example management styles or even the organizational culture. In order to know the business environment in which any organization operates, three major trends should be considered:1. Demographics the characteristics of a population/workforce, for example, age, gender or social class. This type of trend may have an effect in relation to pension offerings, insurance packages etc.

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2. Diversity the variation within the population/workplace. Changes in society now mean that a larger proportion of organizations are made up of female employees in comparison to thirty years ago. Also over recent years organizations have become more culturally diverse and have increased the number of working patterns (part-time, casual, seasonal positions) to cope with the changes in both society and the global market. It is important to note here that an organization must consider the ethical and legal implications of their decisions in relation to the HRM policies they enact to protect employees. Employers have to be acutely aware of the rise in discrimination, unfair dismissal and sexual/racial harassment cases in recent years and the detrimental effects this can have on the employees and the organization. Anti-discrimination legislation over the past 30 years has provided a foundation for an increasing interest in diversity at work which is about creating a working culture that seeks respects and values difference. 3. Skills and Qualifications as industries move from manual to more managerial professions so does the need for more highly skilled graduates. If the market is tight i.e. not enough staff for the jobs, employers will have to compete for employees by offering financial rewards, community investment, etc. In regards to how individuals respond to the changes in a labour market the following should be understood:

Geographical Spread how far is the job from the individual? The distance to travel to work should be in line with the pay offered by the organization and the transportation and infrastructure of the area will also be an influencing factor in deciding who will apply for a post.

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Occupational Structure the norms and values of the different careers within an organization. Mahoney 1989 developed 3 different types of occupational structure namely craft (loyalty to the profession), organization career (promotion through the firm) and unstructured (lower/unskilled workers who work when needed).

Generational Difference different age categories of employees have certain characteristics, for example their behaviour and their expectations of the organization.

Recruitment methods are wide and varied, it is important that the job is described correctly and any personal specifications stated. Job recruitment methods can be through job centers, employment agencies/consultants, headhunting, and local/national newspapers. It is important that the correct media is chosen to ensure an appropriate response to the advertised post. OBJECTIVES OF HUMAN RESOURCE: As with all organizations, the Ontario Financing Authority faces a changing workplace. Changing workplaces require organizations to rethink roles, structures and ways of delivering services. The OFA is committed to meet these challenges and provide a high level of service to its stakeholders. In this regard, several human resource strategies initiated in 2000-01 continued to be implemented or enhanced in 2001-02. Staff participated in secondments, held memberships on committees, task forces and projects, and was given opportunities to improve technical, communication, management and knowledge-based skills. The OFA took part in Ontario Public Service (OPS) wide initiatives such as the Internship Program and workfare initiatives, which are aimed at providing training and work experience. As well, a number of divisions hired students through various university cooperative work placement programs. Through annual performance reviews and training programs, opportunities were identified and staff was encouraged to work towards obtaining performance objectives 27

either through formal courses or on-the-job training. To this end, a number of staff pursued educational courses such as the Chartered Financial Analyst (CFA), and various accounting programs such as the Certified Management Accountant (CMA) and the Certified General Accountant (CGA) designations. Staff was also encouraged to attend conferences, seminars or presentations to keep abreast of advances in finance, accounting and technology. Working with human resource consultants of the Ministry of Finance, the OFA took steps to improve succession planning and retain staff for longer periods. The objective of these human resource initiatives is to improve the attractiveness of the OFA as a place of employment, reduce turnover, and therefore increase efficiency, which ultimately benefits stakeholders. MOTIVATION: In order to understand the concept of motivation first we have to examine the three terms: Motive, Motivating, Motivation and their relationship. Motive: Based on the Latin word movers, motive has been defined as follows: A motive is an inner state that energises, activates, or moves, and that directs behaviour towards goals Here, we can differentiate between needs and wants. While needs are more comprehensive and include desires-both physiological and a psychological, wants are expressed in narrow sense and include only those desires for which a person has money and also the desire to spend money to satisfy the wants. Motivating: Motivating is a term which implies that one person (in the organisation context, a manager) induces another, (say employee) to engage in action (work behaviour) by ensuring that a channel to satisfy the motives becomes available and accessible to the individual. Motivation: while motive energies of action, motivating is the channelisation and activation of motives, motivation is the work behaviour itself. Motivation depends on motives and motivating, therefore, it becomes a complex process. 28

Motivation refers to the way in which urges, drives, aspirations, strivings, or needs direct, control or explain the behaviour of human beings. After defining Motive, Motivating and Motivation we can also define the relationship among them:

Motive

Motivating

Motivation

Need in individual

Activating needs and providing need satisfaction environment Fig-7 Process of Motivation

Engagement in work

Characteristics of Motivation: Following Characteristics of motivation clarify its nature: 1. Based On Motives: Motivation is based on individuals motives which are internal to the individual. These motives are in the form of feeling that the individual lacks something. In order to overcome this feeling of lackness, he tries behaving in a manner which helps him to overcome this feeling. 2. Affected By Motivating: Motivation is affected by way the individual is motivated. The act of motivating channelises the need satisfaction. Besides, it can also activate thee the talent needs in the individual. 3. Goal Directed Behaviour: Motivation leads to goal directed behaviour. A goal directed behaviour is one which satisfies the causes for which behaviour takes place 4. Related To Satisfaction: Motivation is related to satisfaction. Satisfaction refers to the contentment experiences on an individual which he derives out of need fulfillment. Thus, satisfaction is consequence of rewards and punishments associated with past experiences. 29

It provides means to analyse outcomes already experienced by the individual. 5. Person Motivated in Totality: A person is motivated in totally and not in part. Each individual is the organisation is a self-contained unit and his needs are interrelated. These affect his behaviour in different ways. Basic Principles of Motivation: (a) Motivating employees starts with motivating yourself. (b) Always work to align goals of the organization with goals of employees. (c) Key to supporting the motivation of your employees understands what motivates each of them. (d) Recognize that supporting employee motivation is a process, not a task. Scope of Motivation: Probably, no concept of HRM receives as much attention of academician, researchers, and practicing managers as motivation. The increased attention of motivation is justified by several reasons. 1. Motivated employees are always looking for better to do a job. This statement can apply to corporate strategies, and to production workers. When people actively seek new ways to doing things, they usually find them. It is the responsibility of managers to make employees look for better ways of doing their jobs. An understanding of the nature of motivation is helpful in this context. 2. A motivated employee generally, is more quality oriented. This is true whether we are talking about a top manager spending extra time on data gathering and analysis for a report, on a clerk talking extra care when filling important documents. In either case, the organization benefits, because in and outside the organization see the enterprise as quality conscious. A clear understanding of the way motivation works helps a manager make his employee quality oriented. 30

3. Highly motivated workers are more productive than apathetic workers. The high productivity of Japanese workers and the fact that fewer workers are needed to produce an auto mobile in Japan than elsewhere is well known. The high productivity of Japanese workers is attributed to many reasons, but motivation is the main factor. Productivity of workers becomes a question off the managements ability to motivate its employee. An appreciation of the nature of motivation is highly helpful for managers. 4. Every organisation requires human resources, in addition to financial and physical resources for it to function. Three behavioral dimensions of HR are significant to the organisations : (I) People must be attracted not only to join the organisation but also to remain in it. (II) People must perform the task for which they are hired, and must do so in a dependable manner. (III) People must go beyond this dependable role performance and engage in some form of creative, spontaneous, and innovative behaviour at work. In other words, for an organisation to be effective, it must come to grips with the

motivational problems to stimulating both- the decision to participate and the decision to produce at work. 5. Motivation as a concept represents a highly complex phenomenon that affect, and is affected by, a multitude of factors in the organisational milieu. A comprehensive understanding of the way in which an organisation functions, requires that increasing attention be directed by towards the question of why people behave as they do on their jobs. An understanding of the topic of motivation is thus essential in comprehend more fully the effects of variations in other reactions (such as leadership style, job realization, and salary systems) as they relate to performance, satisfaction, and so forth. 31

6. Yet another reason why increasing attention is paid towards motivation can be found in the present and future technology required for production. As technology increases in complexity, machines tend to become necessary, yet in sufficient, vehicles of effective and efficient operations. Modern can no longer be considered synonyms with the term automation. Consider the example of the highly technology- based space programs in our country.

Motivation Is the Key to Performance Improvement: An old saying- You can take a horse to the water but you cannot force it to drink; it will drink only if its thirsty- so with people. Job performance=f(ability)(motivation) There are seven strategies for motivation. Positive reinforcement Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs

HR Practices: Organizations were asked to respond to the following: What is the most effective action your parent organization has taken to make HR practices more consistent across all locations/offices? 32

The following is a sample of responses: Developed a long-term HR plan to ensure alignment of HR strategies/objectives with corporate objectives. Created centralized reporting relationships around the globe. Standardized assessment, development, and compensation practices. Introduced practices to regions around the globe and allowed the HR function in each region the autonomy to do [its] job. Created global policies/processes for data management, performance management, Compensation, education, and development. Tied regional accountability to performance management. Shared HR best practices used in certain locations with all other locations. Developed an HR mission statement.

Top 10 HR Best Practices: Summary of practices 1. 2. 3. 4. 5. 6. 7. 8. 9. Safe, Healthy And Happy Workplace Open Book Management Style Performance Linked Bonuses 360-Degree Performance Management Feedback System Fair Evaluation System For Employees Knowledge Sharing Highlight Performers Open House Discussions And Feedback Mechanisms Reward Ceremonies

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1. Safe, Healthy and Happy Workplace: Creating a safe, healthy and happy workplace will
ensure that your employees feel homely and stay with your organization for a very long time. Capture their pulse through employee surveys.

2. Open Book Management Style: Sharing information about contracts, sales, new clients,
management objectives, company policies, employee personal data etc. ensures that the employees are as enthusiastic about the business as the management. Through this open book process you can gradually create a culture of participative management and ignite the creative endeavor of your work force.. It involves making people an interested party to your strategic decisions, thus aligning them to your business objectives. Be as open as you can. It helps in building trust & motivates employees. Employee self service portal, Manager on-line etc. are the tools available today to the management to practice this style.

3. Performance linked Bonuses: Paying out bonuses or having any kind of variable
compensation plan can be both an incentive and disillusionment, based on how it is administered and communicated. Bonus must be designed in such a way that people understand that there is no payout unless the company hits a certain level of profitability. Additional criteria could be the team's success and the individual's performance. Never pay out bonus without measuring performance, unless it is a statutory obligation.

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4. 360 Degree Performance Management Feedback System: This system, which solicits
feedback from seniors (including the boss), peers and subordinates, has been increasingly embraced as the best of all available methods for collecting performance feedback. Gone are the days of working hard to impress only one person, now the opinions of all matter, especially if you are in a leadership role (at any level). Every person in the team is responsible for giving relevant, positive and constructive feedback. Such systems also help in identifying leaders for higher level positions in the organization. Senior managers could use this feed back for self development.

5. Fair Evaluation System for Employees: Develop an evaluation system that clearly links
individual performance to corporate business goals and priorities. Each employee should have well defined reporting relationships. Self rating as a part of evaluation process empowers employees. Evaluation becomes fairer if it is based on the records of periodic counseling & achievements of the employee, tracked over the year. For higher objectivity, besides the immediate boss, each employee should be screened by the next higher level (often called a Reviewer). Cross - functional feedback, if obtained by the immediate boss from another manager (for whom this employee's work is also important), will add to the fairness of the system. Relative ratings of all subordinates reporting to the same manager are another tool for fairness of evaluation. Normalization of evaluation is yet another dimension of improving fairness.

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6. Knowledge Sharing: Adopt a systematic approach to ensure that knowledge management

supports strategy. Store knowledge in databases to provide greater access to information posted either by the company or the employees on the knowledge portals of the company. When an employee returns after attending any competencies or skills development program, sharing essential knowledge with others could be made mandatory. Innovative ideas (implemented at the work place) are good to be posted on these knowledge sharing platforms.

7. Highlight performers: Create profiles of top performers and make these visible though
company intranet, display boards etc. It will encourage others to put in their best, thereby creating a competitive environment within the company. If a systems approach is followed to shortlist high performers, you can surely avoid disgruntlements.

8. Open house discussions and feedback: Great organizations recognize, nurture and execute
great ideas. Employees are the biggest source of ideas. The only thing that can stop great ideas flooding your organization is the lack of an appropriate mechanism to capture ideas. Open house discussions, employee-management meets, suggestion boxes and ideas capture tools such as Critical Incidents diaries are the building blocks that can help the Managers to identify & develop talent. 9. Reward Ceremonies: Merely recognizing talent does not work, you need to couple it with ceremonies where recognition is broadcast. Looking at the Dollar Check is often less significant than listening to the thunderous applause by colleagues in a public forum.

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10. Delight Employees with the Unexpected: The last but not least way is to occasionally
delight your employees with unexpected things that may come in the form of a reward, a gift or a well-done certificate. Reward not only the top performers but also a few others who are in need of motivation to exhibit their potential.

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RESEARCH METHODOLOGY
1. Introduction to the problem: To analyse the impact of financial HR practices. To analyse the impact of non-financial HR Practices. To seek the impact of HR practices on employee motivation. 2. Research Design: Research design is simply the framework or plan for a study, used as a guide in collecting and analyzing data. There are three types of Research Design:-

1. Exploratory Research Design:- The major emphasis in exploratory Research design is on discovery of ideas and insights. 2. Descriptive Research Design:- The Descriptive Research Design Study is typically concerned with determining the frequency with which something occurs or the relationship between two variables. 3. Casual Research Design:- A Casual Research Design is concerned With determining cause and effect relationship. For the study, Descriptive Research Design was undertaken as it draws the opinion of employees/ workers on a specific aspect. SAMPLING DESIGN (a) POPULATION: ELEMENT : Managers (6), Employees (20) & Associates (32)

SAMPLING UNIT:

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EXTENT TIME

: PepsiCo India Holdings Pvt. Ltd. Bazpur : 8 Weeks

(b) SAMPLING UNIT: 1. The organisational structure of Departments: Department Finance Human Resource Management Quality Manufacturing Shipping TDM (c) SAMPLING FRAME: List of managers from which sample is actually drawn is as follows: 1. Mr. Manoj Gupta (Manager Finance) 2. Mr. Satyendra Nagar(Human Resource Manager) 3. Mr. Nitesh Jain (quality) 4. Mr. Manish Lohani (manufacturing) 5. Mr. Rakesh Rajput (Shipping) 6. Mr. Rakesh shukla (TDM) Manager Mr. Manoj Gupta Mr. Styendra Nagar Mr. Nitesh Jain Mr. Manish Lohani Mr. Rakesh Rajput Mr. Rakesh shukla PepsiCo Bazpur has been classified into Six

(d) SAMPLE SIZE: 6 Managers + 20 Employees+32 Associates

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(e) SAMPLING METHOD: There are two methods of sampling:1. Probability Sampling: It is based on the concept of random selection of a controlled procedure that assures that each Population element is gives a non-zero chance of selection. Probability Sampling is of following types: 1. Simple Random 2. Systematic 3. Cluster 4. Stratified 5. Double 2. Non-Probability Sampling: Non probability sampling is non-random and subjective. That is each member does not have a known non zero chance of being included. Types of NonProbability Sampling 1. Convenience 2. Judgement 3. Quota Researcher selects the sample as per their convenience. For this research work I have choosen Non- Probability Convenience Sampling because time limit for the completion of the work is limited and also managers and employees are not available all the time. AREA OF STUDY - Bazpur DURATION - 60 days

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DATA COLLECTION METHOD Data for the present study is collected from two sources:

a. Primary:- The first hand information is collected with the responses of questionnaire. For this purpose a questionnaire is given to the managerial staff of the CAP. They were asked to choose the best alternative among the given alternatives, as per their knowledge, experience and observation.

b. Secondary: - Secondary data is collected from published sources like Journals, Magazines, various newspapers and published books.

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FINDINGS AND ANALYSIS

1. What do you think about the recruitment policy followed? a) Poor b) Average c) Above average d) Good e) Very Good

Interpretation:
From the above diagram we can interpretate that maximum employees (45%) are in a view that recruitment policy is above average.

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2. What do you think about the transportation facility provided? a) Poor b) Average c) Above average d) Good e) Very Good

Interpretation:
We can reveal that around 51% of the employees are within the favour that transportation facility provided by the company is average.

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3. Would you be satisfy if company give cash in place of transportation facility?

a) b)

Yes No

c) Cant say

No. of Em ployees
4% 10%
Yes No

86%

Can't say

Interpretation:
Maximum no. of the employees (86%) said that they would not satisfy if they are provided with the cash in place of transportation facility.

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4. What do you think about the safety related training provided to the associates?

a) Poor

b) Average c) Above average d) Good e) Very Good

Interpretation:
After analysis, we have found that 43% employees think that safety related training policy is good.

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5. If any company not provides the training would you like to join that company? a) Yes b) No c) Cant say

No.of Em ployees
2% 10% Yes No Can't say 88%

Interpretation:
Most of the employees (88%) say that they would not like the company if there training is not provided.

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6. Would you like to work with the company where no bonus is link with the performance?

a) Yes b) No c) Cant say

Literature Review and Hypothesis Formulation:-

Steve Shelley in their paper Diversity of appraisal and performance-related pay practices in higher education published in Personnel Review, Vol. 28 No. 5/6, 1999, pp. 439-454 has given that the use of extrinsic reward practices including profit sharing, gain sharing, employment security and performance based bonus plans exhibited a significantly positive moderating effect on the performance of the employees. So on the basis of this literature we can formulate the following hypothesis: H0: There is no significant difference in the performance of the employees of PepsiCo Ltd., Bazpur with respect to the change in reward practices. H1: There is significant difference in the performance of the employees of PepsiCo Lt., Bazpur with respect to the change in reward practices.

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No. of Em ployees
1% 6%

Yes No Can't say 93%

Interpretation:
The calculated value of Z cal (-4.22) which does not lies in the critical range of Z distribution @ 5% level of significance Z ( = 1.96), so the hypotheses H0 is rejected. Hence there is significant difference in the performance of the employees of PepsiCo Ltd, Bazpur with respect to the change in reward practices.

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7. What do you think about the employee welfare program? a) Poor b) Average c) Above average d) Good e) Very Good

No. of em ployees
26% 2% 15% 11% Poor Average Above average Good 46% VeryGood

Interpretation:
Around 46% of the employees go with the option that employee welfare program is the good practice.

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8.

Do you think the practice of Birthday celebration of employees in company emerge the

feeling of recognition? a) Yes b) No c) Cant say

No.of Em ployees
11% 3%

Yes No Can't say

86%

Interpretation:
We can interpretate that 86% of the employees are in the favour that birthday celebration practice is a very good practice.

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9.

Do you think that the involvement of employees in taking decisions, motivate them?

a) Yes b) No c) Cant say

No.of Em ployees
14% 5%

Yes No Can't say

81%

Interpretation:
By analyzing this we can interpretate that involvement of employees in taking decision is good practice as maximum of the employees (81%) go with the option yes.

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10. Do you think that the practice of Open House Discussions And Feedback motive for doing best? a) Yes b) No c) Cant say

Mechanisms

No.of Em ployees
4% 22% Yes No 74% Can't say

Interpretation:
As 74% of the employees says yes this reveal that open house discussion and feedback is the good practice.

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11.Do you think the practice of scholarship for the employees children, motivate the employee in one or other form? a) Yes b) No c) Cant say

No.of Em ployees
9%

36%

55%

Yes No Can't say

Interpretation:
We can interpretate that maximum no. of the employees(55%) are in the favour that scholarship program for their children is good practice as this motivate them.

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12. Do you think the practice of visual recognition helpful in motivating the employees? a) Yes b) No c) Cant say

No.of Em ployees
9% 26% Yes 65% No Can't say

Interpretation:
As maximum no. of the employees (65%) are in the favour that visual recognition program help them to motivate.

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13. Do you think that the programs like the sports day, Annual day & Holi celebration motivate the employees to work? a) Yes b) No c) Cant say

No.of Em ployees
9% 26% Yes 65% No Can't say

Interpretation:
Around 65% of the employees are in the favour that celebration programs at different occasion motivate them to work.

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14. Do you think that the performance appraisal motivate the employee to do better? a) Yes b) No c) Cant say

No.of Em ployees
6% 8%

Yes No Can't say 86%

Interpretation:
By analyzing this we can interpretate that performance appraisal is very good practice as 86% are in favour.

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15. Do you think that the formal or informal orientation program for new employees motivate them? a) Yes b) No

c) Cant say

No.of Em ployees
8% 13%

Yes No 79% Can't say

Interpretation:
As 79% of the employees go with the option yes, so we can say that formal & informal orientation program is the good practice which motivate them.

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16.Give rank to the training opportunity from(0-10) a) Goal oriented.. b) Motivational. c) Skill improvement. d) Helpful in future.

Interpretation:
Employee has given the rank in the case of the training opportunity 9% to the helpful in future 19% to the goal oriented 33% to the skill improvement 39% to the motivation

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17. Give rank to the practice of Monthly employee communication: Sankalp from(0-10) a) b) c) d) Motivational Helpful in achieving goals.. Helpful in remembering their duty. Helpful in performing well

No. of Em ployees
22% Motivational Helpful in achievinggoals 21% helpful in rememberingtheir duties Helpful in performingwell

25%

32%

Interpretation:
In the case of the monthly employee communication practice, employee has given the rank to the helpful in remembering their duties 21% 22% to the motivation 25% to the helpful in performing well 32% to the helpful in achieving goals.

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18. Do you require any changes in the present HR Practices?

a) Yes b) No

No. of Em ployees

56%

44% Yes No

Interpretation:
We can interpretate from the above that maximum no. of the employees(56%) are satisfy with the present HR practices but still there are 46% of the employees who want some changes in the present practices.

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CONCLUSION
The HR practice either it is the financial or nonfinancial are not only made by the Manager but he/she will be the member of a core team which formulates company strategies and ensures their implementation. Not only at the Head Quarter but also at the plant level HR Practices plays an important role and these practices are responsible for employee motivation and employee satisfaction. Motivation has a great impact on the employee performance; if a company wants the best result then employees should be motivated. This is only motivation which makes the company better than others because nowadays every one has great technologies and machines but if employees are not motivated then the result could not be as desired. PepsiCo, Bazpur is doing nice effort to motivate their employees. And the practices are made in the form, that it can be effective for the workforce and as well as helpful in achieving the predefine goals of the company.

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SUGGESTIONS AND RECOMMENDATION

PepsiCo Holdings India Pvt. Ltd has lots of healthy activities in the premises but few more activities can be added which would be beneficial to the employees and also boost the morale of the workers and there is some improvement require in the present practices are as follows: As a new practice Performance linked bonus should be started because it will improve the performance of employees. Loading shade should be there in the shipping yard so that the productivity of the labor during summer & rainy season may improve. In the off season Indore games should planned, because it will make good and friendly environment in the organisation. Some picnics with the staff should arrange, because it will make good relationships in the organisation which helps in proper work flow. Some reward ceremonies should be organized. In these ceremonies those employees should be rewarded who will perform some great work apart from their job. Because it will encourage the employees to make some extra efforts.

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LIMITATIONS
1. There are so many good HR practices but due to the wide scope of these practices we have take only ten best HR practices to make the questionnaire. 2. The scope of study is very wide and lack of time is the main limitation. 3. Respondents were not responding due to their busy schedule.

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