PROJECT REPORTONIMPACT OF EMPLOYEES MOTIVATION ON ORGANIZATIONAL EFFECTIVENESSATAu FINANCIERS (INDIA) LIMITEDProject Submitted toDEPARTMENT OF BUSINESS ADMINISTRATIONUNIVERSITY OF RAJASTHAN, JAIPUR-04

FOR THE PARTIAL FULFILLMENT OF THE REQUIREMENTFORTHE DEGREE OFMASTERS OF HUMAN RESOURCE MANAGEMENT

Under Supervision Of: SUBMITTED BY:Dr. V K JOSHI PREETI KUMAWATAsst. Professor MHRM (2012-14) ENROL:

CERTIFICATEDEPARTMENT OF BUSINESS ADMINISTRATIONUNIVERSITY OF RAJASTHAN JAIPUR

This is to certify that the project report IMPACT OF EMPLOYEES MOTIVATION ON ORGANIZATIONAL EFFECTIVENESS at Au FINANCIERS (INDIA) LIMITED- Jaipur, submitted by Ms. Preeti Kumawat, student MHRM- PII, Dept. of Business Administration, University of Rajasthan, Jaipur, has prepared it under my guidance for the preparation of full filling of requirement for paper VI for award of the degree of Master of Human Resource Management under my supervision.

I wish her all the success.

Dr. V K JoshiAsst. ProfessorDept. of Business Adm.University of Rajasthan

DECLARATION

DATE:

I, hereby, undertake that the project titled, IMPACT OF EMPLOYEES MOTIVATION ON ORGANIZATIONAL EFFECTIVENESS at Au FINANCIERS (INDIA) LIMITED is an original project. The findings of the study are based on the information collected by me during my summer training.

Ms. Preeti Kumawat MHRM PART-II RAJASTHAN UNIVERSITY

ACKNOWLEDGEMENTProject work is a combined effort, so one should thank all who have helped in making the report purposeful. Hence, I take this opportunity to thank all who have been instrumental in helping me prepare this report. As well as I wish to take this opportunity to thank Mr. Sanjay Agarwal (MD-Au Financiers (India) Limited) and Ms. Ranu Sharma (HR-Au Financiers (India) Limited) for giving me their kind guidance in order to materialize this project report.It has been a pleasure to work on this project titled IMPACT OF EMPLOYEES MOTIVATION ON ORGANIZATIONAL EFFECTIVENESS at Au FINANCIERS (INDIA) LIMITED, Jaipur. First of all I would like to thank god who showered his blessings upon me at each and every step. I am immensely grateful to my parents for their continuous trust on me and also for the encouragement that they had given me at each and every crucial moment of my life. Without their kind support and belief on me, it would not be possible for me to make such a dissertation report.I express my earnest and sincere thanks to my Mentor Dr. V K Joshi, Asst. Proff. University of Rajasthan for all their guidance that I have received during this project.

Ms. Preeti Kumawat MHRM PART-II RAJASTHAN UNIVERSITY

PREFACEEvery organization and business wants to be successful and have desire to get constant progress. The current era is highly competitive and organizations regardless of size, technology and market focus are facing employee retention challenges. To overcome these restraints a strong and positive relationship and bonding should be created and maintained between employees and their organizations. Human resource or employees of any organization are the most central part so they need to be influenced and persuaded towards tasks fulfillment. As a part of MHRM Part- II curriculum, I had worked in this project on complete study of Impact of Employees Motivation on Organizational Effectiveness at Au FINANCIERS (INDIA) LIMITED, Jaipur. It was a privilege to being a part of DEPARTMENT OF BUSINESS ADM. Where I worked on Project which is important as it is a vital part of our curriculum during the course and it had given me great experience of my work. I had the opportunity to interact with many people from different fields, which had further enriched my knowledge. If this report lives up to its title and is interesting for you to read and as it was for me to write then I shall feel my endeavor has been more than worth while.

PREETI KUMAWAT

CONTENTSS.NOTopic Page No.

Chapter-1Certificate GuideI

Chapter-2Certificate InstituteII

Chapter-3DeclarationIII

Chapter-4AcknowledgementIV

Chapter-5PrefaceV

Chapter-6ContentsVI

Chapter-7Field Profile

Chapter-8Company Introduction

Chapter-9Motivation

Chapter-10Employee Motivation

Chapter-11Organizational Effectiveness

Chapter-12Factors Affecting Employees Motivation

Chapter-13Framework of Motivation

Chapter-14Research Methodology

Chapter-15Recognition and Employee Motivation

Chapter-16Empowerment

Chapter-17Empowerment and Employee Motivation

Chapter-18Employee Motivationand Organizational Effectiveness

Chapter-19Motivation and Behaviour

Chapter-20Evaluation

Chapter-21Suggestion

Chapter-22Analysis

Chapter-23Questionnaire

Chapter-24Finding

Chapter-25Conclusion

References

Bibliography

FIELD PROFILEFinanceis a field closely related toaccountingthat deals with the allocation ofassetsandliabilitiesover time under conditions of certainty and uncertainty. Finance also apply and uses the theories ofeconomicsat some level. Finance can also be defined as the science of money management. A key point in finance is thetime value of money, which states that one unit of currency today is worth more than one unit of currency tomorrow. Finance aims to price assets based on their risk level and their expectedrate of return. Finance can be broken into three different sub-categories:public finance,corporate financeand personal finance.financial Capital Capital, in the financial sense, is the money that gives the business the power to buy goods to be used in the production of other goods or the offering of a service. (The capital has two types of resources, Equity and Debt).The deployment of capital is decided by the budget. This may include the objective of business, targets set, and results in financial terms, e.g., the target set for sale, resulting cost, growth, required investment to achieve the planned sales, and financing source for the investment.A budget may be long term or short term. Long term budgets have a time horizon of 510years giving a vision to the company; short term is an annual budget which is drawn to control and operate in that particular year.Budgets will include proposed fixed asset requirements and how these expenditures will be financed. Capital budgets are often adjusted annually and should be part of a longer-term Capital Improvements Plan.A cash budget is also required. The working capital requirements of a business are monitored at all times to ensure that there are sufficient funds available to meet short-term expenses.The cash budget is basically a detailed plan that shows all expected sources and uses of cash. The cash budget has the following six main sections:1. Beginning Cash Balance- contains the last period's closing cash balance.2. Cash collections- includes all expected cash receipts (all sources of cash for the period considered, mainly sales)3. Cash disbursements- lists all planned cash outflows for the period, excluding interest payments on short-term loans, which appear in the financing section. All expenses that do not affect cash flow are excluded from this list (e.g. depreciation, amortization, etc.)4. Cash excess or deficiency- a function of the cash needs and cash available. Cash needs are determined by the total cash disbursements plus the minimum cash balance required by company policy. If total cash available is less than cash needs, a deficiency exists.5. Financing- discloses the planned borrowings and repayments, including interest. Financial theoryFinancial economicsFinancial economics is the branch ofeconomicsstudying the interrelation of financialvariables, such asprices,interest ratesand shares, as opposed to those concerning the real economy. Financial economics concentrates on influences ofrealeconomic variables on financial ones, in contrast to pure finance. It centres on managing risk in the context of thefinancial markets, and the resultanteconomicandfinancial models. It essentially explores howrational investorswould apply risk and return to the problem of aninvestmentpolicy. Here, the twin assumptions ofrationalityandmarket efficiencylead tomodern portfolio theory(theCAPM), and to theBlackScholestheory foroption valuation; it further studies phenomena and models where these assumptions do not hold, or are extended. "Financial economics", at least formally, also considers investment under "certainty" (Fisher separation theorem,"theory of investment value",Modigliani-Miller theorem) and hence also contributes to corporate finance theory.Financial econometricsis the branch of financial economics that uses econometric techniques to parameterize the relationships suggested.Although closely related, the disciplines of economics and finance are distinctive. The economy is a social institution that organizes a societys production, distribution, and consumption of goods and services, all of which must be financed.Economists make a number of abstract assumptions for purposes of their analyses and predictions. They generally regard financial markets that function for the financial system as an efficient mechanism (Efficient-market hypothesis). Instead, financial markets are subject to human error and emotion. New research discloses the mischaracterization of investment safety and measures of financial products and markets so complex that their effects, especially under conditions of uncertainty, are impossible to predict. The study of finance is subsumed under economics as financial economics, but the scope, speed, power relations and practices of the financial system can uplift or cripple whole economies and the well-being of households, businesses and governing bodies within themsometimes in a single day.Financial mathematics[ Financial mathematics is a field ofapplied mathematics, concerned withfinancial markets. The subject has a close relationship with the discipline of financial economics, which is concerned with much of the underlying theory. Generally,mathematical financewill derive, and extend, themathematicalornumericalmodels suggested by financial economics. In terms of practice, mathematical finance also overlaps heavily with the field ofcomputational finance(also known asfinancial engineering). Arguably, these are largely synonymous, although the latter focuses on application, while the former focuses on modeling and derivation (see:Quantitative analyst). The field is largely focused on the modelling ofderivatives, although other important subfields includeinsurance mathematicsand quantitative portfolio problems. Experimental financeExperimental financeaims to establish different market settings and environments to observe experimentally and provide a lens through which science can analyze agents' behavior and the resulting characteristics of trading flows, information diffusion and aggregation, price setting mechanisms, and returns processes. Researchers in experimental finance can study to what extent existing financial economics theory makes valid predictions, and attempt to discover new principles on which such theory can be extended. Research may proceed by conducting trading simulations or by establishing and studying the behavior of people in artificial competitive market-like settings.Behavioral finance Behavioral Financestudies how the psychology of investors or managers affects financial decisions and markets. Behavioral finance has grown over the last few decades to become central to finance.Behavioral finance includes such topics as:1. Empirical studies that demonstrate significant deviations from classical theories.2. Models of how psychology affects trading and prices3. Forecasting based on these methods.4. Studies of experimental asset markets and use of models to forecast experiments.A strand of behavioral finance has been dubbed Quantitative Behavioral Finance, which uses mathematical and statistical methodology to understand behavioral biases in conjunction with valuation. Some of this endeavor has been led byGunduz Caginalp(Professor of Mathematics and Editor ofJournal of Behavioral Finance during 2001-2004) and collaborators includingVernon Smith(2002 Nobel Laureate in Economics), David Porter, Don Balenovich, Vladimira Ilieva, Ahmet Duran). Studies by Jeff Madura, Ray Sturm and others have demonstrated significant behavioral effects in stocks and exchange traded funds. Among other topics, quantitative behavioral finance studies behavioral effects together with the non-classical assumption of the finiteness of assets.

Introduction Au FINANCIERs (INDIA) LIMITED

Au FINANCIERS (INDIA) LIMITED, one of the fastest growing Rajasthan based Non Banking Finance Company, is an outcome of the professional entrepreneurship of its Founder Sanjay Agarwal and his highly experienced and competent management team. Their focus and passion is to establish a high quality, customer centric and Service Driven finance company catering and valuing the smallest needs of people of India. The association of the company with the finest pedigree investors reflects companys sustainable growth and synergies.Au FINANCIERsis a Systemically Important Non Deposit Accepting NBFC as classified by RBI, in Rajasthan.

The company is very well known by the name of The Financiers

The Concepts of Corporate Social Responsibility are embedded in the blood of the organization and integrated in our activities. The Company has a apparition to be preferred financier. OverviewAu Financiers (India) Limitedis a Non Banking Finance Company, registered with Reserve Bank of India, incorporated in the year 1996 under the provisions of the Companies Act, 1956 by Mr. Sanjay Agarwal, Chartered Accountant and first generation entrepreneur.We areSystemically Important Asset Finance Company (NBFC-ND-AFC-SI) of Rajasthan.We are registered asNon Deposit acceptingNBFC with RBI. We are a leading Non-banking finance company (NBFC) engaged in business of originating Small Road Transport Operator (SRTO) and Micro, Small and Medium Enterprise (MSME) loans in rural and semi-urban areas.

Core ValuesAu FINANCIERs is driven by its core values of being Fair, Flexible, Fast, and Friendly. Our foundation lies on the right balance between Stakeholders and the Management, which is achieved through these values.EntrepreneurshipWe stand by entrepreneurial aspirations. We inspire individuals to achieve their dreams.Personalized TouchIn our behavior we endeavor to build relationship that will transform lives by valuing, understanding and articulating individuals needs. We simultaneously respect and value people and uphold humanity and dignity.Fairness and EqualityWe are fair and honest in thoughts and feelings. We treat all with the fairness and equality.ReliabilityWe honor the spirit and intent of our commitments and promises, demonstrating consistency between our actions and our words. We stand by in the hour of need to create a trusted bond for life.Nurturing TalentWe pursue challenging and rewarding opportunities that nurture personal and professional initiative and growth of an individual.EmpowermentWe empower individuals to dream, create and experiment in pursuit of opportunities and attain leadership through teamwork.AudacityWe constantly foster individuals for giving open feedback towards processes, products and services to ensure improvised practices in the organization.

Vision & MissionVisionTo be the most preferred financial institution with nationwide presence and provide customized & speedy financial solutions to rural & emerging India with trust & confidence, to guarantee customer delight.

MissionAt Au, we strive to lead in providing best & trusted financial solutions to cater the entrepreneurial aspirations of unreached & unbanked masses of India & be empathetic to their needs. We endeavor to create strong, consistent stakeholders value and live up to the trust & confidence reposed in us.

HistoryFormerly In 1996, the Company was incorporated in the name of L.N. Finco Gems Private Limited and started providing financial services like Public Issue Management, Merchant Banking Services, and Vehicle Loans. In the year 2005, it changed its the name toAu FINANCIERS (INDIA) PRIVATE LIMITED.In 2013, Company was converted into Public Ltd. and name of the Company changed as Au FINANCIERS (INDIA) LIMITED formerly known as Au Financiers (India) Private Limited.Au Financiers is registered as NBFC-ND-AFC, Non Deposit Taking, Asset Financing, Non Banking Finance Company under RBI guidelines and we are being categorized as Systemically Important Asset Finance Company.

Our Network Expanded and wide network Equipped with latest Technologically Known for Fast, effective, and quality services Manned by skilled personnel Shorter turnaround times, faster approval and quick distribution Helpful and responsive executives that visit customers at their residencesSmall regional officers help us identify, connect, and emphasize with our customers and enable us to provide customized services.

Board Of DirectorsMr. Sanjay Agarwal, Managing DirectorMr. Uttam Tibrewal, Executive DirectorMr. Krishan Kant Rathi, Independent DirectorMr. Vishal Kumar Gupta, Investor Nominee Director

(on behalf of IBEF, a fund advised by Motilal Oswal Private Equity)Mr. Mannil Venugopalan, Independent DirectorMr. Vishal Mahadevia, Investor Nominee Director

(on behalf of Redwood Investment Ltd (Warburg Pincus)Mr. Ravindra Bahl, Investor Nominee Director

(On behalf of Labh Investments Limited ChrysCapital)

Management TeamMr. Deepak Jain, Chief Financial OfficerMr. Manoj Tibrewal, Business Head MaharashtraMr. Kapish Jain Chief Treasury OfficerMr. Indrajeet Kumar, Assistant Vice PresidentMr. Abhishek Tiwari - Vice President OperationsMr. Vijendra Singh Shekhawat Vice President- AccountsMr. Subhash Tiberwal - Vice President- Branding & InfrastructureMr. Yogesh Soni - Assistant Vice President AuditMr. Vimal Jain Deputy Vice President - Risk & BudgetingMr. Manmohan Parnami Deputy Vice President- Company Secretary & Compliance

Motivation

According to Websters New Collegiate Dictionary, a motive is something a need or desirethat causes a person to act. Motivate, in turn, means to provide with a motive, andmotivation is defined as the act or process of motivating. Consequently, motivation is theperformance or procedure of presenting an intention that origin a person to capture someaccomplishment (Shanks.N. H.). According to Butkus & Green (1999), motivation is derivedfrom the word motivate, means to move, push or influence to proceed for fulfilling a want(Kalimullah et al, 2010).Bartol and Martin (1998) describe motivation as a power that strengthens behavior, givesroute to behavior, and triggers the tendency to continue (Farhad et al, 2011). This explanationidentifies that in order to attain assured targets; individuals must be satisfactorily energeticand be clear about their destinations. In view of Bedeian, (1993) it is an internal drives tosatisfy an unsatisfied need and the will to accomplish. Motivation is a procedure that initiatesthrough a physiological or psychological want that stimulates a performance that is intendedat an objective. It is the concluding product of interface among personality behavior andorganizational distinctiveness (IRCO). It symbolizes those psychological procedures thatfoundations the stimulation, route, and determination of deliberate actions that are targetoriented (Farhad et al, 2011). Also motivation is a progression of moving and supportinggoal-directed behavior (Chowdhury.M.S, 2007). It is an internal strength that drivesindividuals to pull off personal and organizational goals (Reena et al, 2009).Motivation is a set of courses concerned with a kid of strength that boosts performance anddirects towards accomplishing some definite targets (Kalimullah et al, 2010). According toBarron (1983), it is an accrual of diverse routes which manipulate and express our activitiesto attain some particular ambitions (Rizwan et al, 2010). Porter and miles (1974) proved thatthe motivation boosts expresses and continues conduct (Khadim et al). The motivation ofan individual envelops all the motives for which he selects to operate in a definite approach(Lefter et al). In fact motivation is inside another persons head and heart (Khadim et al).

Definitions of MotivationMotivation is a reported urge or tension to move in a given directon or to achieve a certain goal. Carroll shartleThe concept of motivation is mainly psychological. It relates to those forces operating within the individual employee or subordinate which impel him to act or not to act in certain ways. Dalton E. McFarlandMotivation means a process of stimulating people to action to accomplish desired goals. William G. ScottMotivation is the act of stimulating someone or oneself to get a desired course of action.M.J. JuciusMotivation refers to the way in which urges, drives, desired, aspirations, strivings, needs direct control or explain the behaviour of human beings. D.E. McFarlandMotivation is the inner-state that energizes, channels, and sustains human behavior. William Glueck

Employee MotivationAmong financial, economic and human resources, the latest are more essential and have the capability to endow a company with competitive edge as compared to others (Rizwan et al, 2010). Employee Performance fundamentally depend on many factors like performance appraisals, employee motivation, Employee satisfaction, compensation, Training and development, job security, Organizational structure and other, but the area of study is focused only on employee motivation as this factor highly influence the performance of employees. Employee motivation is one of the policies of managers to increase effectual job management amongst employees in organizations (Shadare et al, 2009). A motivated employee is responsive of the definite goals and objectives he/she must achieve, therefore he/she directs its efforts in that direction. Rutherford (1990) reported that motivation formulates an organization more successful because provoked employees are constantly looking for improved practices to do a work, so it is essential for organizations to persuade motivation of their employees (Kalimullah et al, 2010). Getting employees to do their best work even in strenuous circumstances, is one of the employees most stable and greasy challenges and this can be made possible through motivating them.

Organizational Effectiveness Composition of people which formulate independent business identity for some specific purpose is commonly known as organization and getting desired outcome within defined resources is treated as effectiveness. Organizational effectiveness is the notion of how effectual an organization is in accomplishing the results the organization aims to generate (Muhammad, et al, 2011). It plays an important role in accelerating organizational development (Bulent et al, 2009). It is the net satisfaction of all constituents in the process of gathering and transforming inputs into output in an efficient manner (Matthew et al, 2005). Organizational effectiveness is defined as the extent to which an organization, by the use of certain resources, fulfils its objectives without depleting its resources and without placing undue strain on its members and/or society (Mary et al, 1996). It is the maximum combinedutility of the primary constituents (Matthew et al, 2005). The goal model describes organizational effectiveness in terms of the extent to which an organization attains its objectives. The legitimacy model regards organizational effectiveness in terms of a background evaluation of component preferences for performance and natural limitations on performance from an external environmental perspective (Zammuto.R.F, 1982). The constituency model considers organizational effectiveness as a set of several statements, each reflecting the evaluative criteria applied by the various constituencies involved with the organization being evaluated with an emphasis on means criteria (Connolly.T, 1980). The systems resource model defines organizational effectiveness in terms of its (the organizations) bargaining position, as reflected in the ability of the organization, in either absolute or relative terms, to exploit its environment in the acquisition of scarce and valued resources and how they utilize these resources (Yuchtman.E, 1987). The study is aimed to determine the factors that increase employee motivation and the relationship of organizational effectiveness with employee motivation.

Factors Affecting Employees MotivationNo one works for free, nor should they. Employees want to earn reasonable salary and payment, and employees desire their workers to feel that is what they are getting (Houran. J). Money is the fundamental inducement, no other incentive or motivational technique comes even close to it with respect to its influential value (Sara et al, 2004). It has the supremacy to magnetize, maintain and motivate individuals towards higher performance. Frederick Taylor and his scientific management associate described money as the most fundamental factor in motivating the industrial workers to attain greater productivity (Adeyinka et al, 2007). Research has suggested that reward now cause satisfaction of the employee which directly influences performance of the employee (Kalimullah et al, 2010). Rewards are management tools that hopefully contribute to firms effectiveness by influencing individual or group behavior. All businesses use pay, promotion, bonuses or other types of rewards to motivate and encourage high level performances of employees (Reena et al, 2009). To use salaries as a motivator effectively, managers must consider salary structures which should include importance organization attach to each job, payment according to performance, personal or special allowances, fringe benefits, pensions and so on (Adeyinka et al, 2007). Leadership is about getting things done the right way, to do that you need people to follow you, you need to have them trust you. And if you want them to trust you and do things for you and the organization, they need to be motivated (Baldoni.J, 2005). Theories imply that leader and followers raise one another to higher levels of morality and motivation (Rukhmani.K, 2010).Motivation is purely and simply a leadership behavior. It stems from wanting to do what is right for people as well as for the organization. Leadership and motivation are active processes (Baldoni.J, 2005).Empowerment provides benefits to organizations and makes sense of belonging and pride in the workforce. In fact, it builds a Win - Win connection among organizations and employees; which is considered an ideal environment in numerous organizations and their employees. Empowering can flourish virtual human capacities. Empowered employees focus their job and work-life with additional importance and this leads to constant progress in coordination and work procedures. Employees execute their finest novelties and thoughts with the sense of belonging, enthusiasm, and delight, in empowered organizations. Adding up, they work with a sense of responsibility and prefer benefits of the organization to theirs (Yazdani,B.O. et al, 2011) Trust is defined as the perception of one about others, decision to act based on speech, behavior and their decision (Hassan et al, 2010). If an organization wants to improve and be successful, trust plays a significant role so it should always be preserved to ensure an organizations existence and to enhance employees motivation (Annamalai.T, 2010). It can make intrapersonal and interpersonal effects and influence on the relations inside and out the organization (Hassan et al, 2010). No matter how automated an organization may be, high productivity depends on the level of motivation and the effectiveness of the workforce so staff training is an indispensible strategy for motivating workers. One way managers can instigate motivation is to give appropriate information on the sentences of their actions on others (Adeyinka et al, 2007)

Framework of MotivationTheoretical Framework The motivational theories included in this research are linked to motivation to find out what their possible influence could be on those two constructs. The motivational theories that are relevant for this research work are the Equity theory (Adams, 1963; in Harder, 1991; in Robbins, 2003; in Kinicki and Kreitner, 2003), Expectancy theory (Vroom, 1964 in Harder, 1991; in Isaac et al., 2001; in Robbins, 2003), Goal setting theory (Locke, 1968 in Austin and Bobko, 1995; in Locke and Latham, 2002; in Robbins, 2003; in Kinicki et al., 2003) One thing that is common for humans is to compare themselves to others. One theory that comes forth from this evaluating of ones-self and each other is Equity theory. Carrel and Dittrich (2008) depict that most theorist discussing the equity theory posit three primary points. First, employees perceive a fair return for what they contribute to their job. Second, employees then run some kind of social comparison what their compensation should be with their colleagues. Last each employee that perceives himself to be in an inequitable situation will try to decrease this inequity. Robbins (2003) and Adams (1963; 1965, in Harder, 1991) explain that the equity theory is a theory that centres on perceived fairness of an individual. An employee reflects on how much effort he has expended and compares this to what he has got from it. After this individual evaluation of his input-output ratio, he will compare his ratio to the input-output ratios of others, especially the direct peers. If the employee considers his input-output ratio to be equal to ratios of other relevant employees, a state of equity exists.The employee will have a feeling that he is treated fairly. In this situation of equity, the person is seemingly content and will not act to imbalance the condition (Cosier and Dalton, 1983). Naturally, when an employee perceives unequal ratios between him and his counterparts, there will be a state of inequity. There are three types of equity namely external, internal, employee equity (Konopaske and Werner, 2002). External equity arises when employee use comparisons to others who have the same job but work in different organizations. Internal equity occurs when employees compare themselves to others who have different job but work in the same organization. Employee equity exists when an employee compares himself to other employees who occupy the same job within the same organization. The equity theory is concluded for the study because it is interesting to see how employees compare themselves to each other. These comparisons can lead to job turnover when some employees perceive not to be treated fairly. Important is that equity theory shows that beliefs, perceptions, and attitudes influence motivation. Employees are motivated powerfully to current situation when there is a perception of inequity present. On the other hand, Expectance theory refers to a set of decision theories of work of motivation and performance (Vroom, 1964; in Ferris, 2007). Perception plays a central role in expectancy theory because it emphasizes cognitive ability to anticipate likely consequences of behavior (Kinicki et al., 2003). As said by Vroom (1964; in Kopfi, 2008), the expectancy theory as two major assumptions. The first assumption is that individual persons have perception about the consequences that result from their behavioural actions, and the causal relationship among those outcomes. These perceptions, or beliefs, are referred to as either expectancies or instrumentalities. The second assumption is that individual person has effective reactions to certain outcomes. Affective reactions reflect the Valence (positive or negative value individual place or results) of outcomes (Kinicki et al., 2003).According to the expectancy theory, individual will be motivated to perform by two expectancies (Ferris, 2007; Isaac et al. , 2001). Expectance is the probability that the effort put forth will lead to the desired performance. The second expectancy (also referred to as instrumentality) is the probability that a particular performance will lead to certain preferred outcomes. When the probability of some effort will not be rewarded, the employee will not be highly motivated to perform a certain task. Expectancy theory primarily relies upon motivators to clarify causes for behaviours exhibited at work (Leonard, Beauvais and Scholl, 1999). External rewards are viewed as inducing motivational states that fuels behaviors, as opposed to intrinsic motivators, when behaviors are derived from internal forces such as the enjoyment of the work itself because it is challenging, interesting and so on (Isaac et al, 2011). On the other hand, in Goal setting theory, Locke, Shaw, Sarri and Latham (2008) defined a goal as what an individual attempts to accomplish; it is the object or aim at certain actions. The basic assumption of goal-setting is that goals are immediate regulators of human actions (Locke et al., 2008). Evidence from the goal setting research indicates that specific goals leads to increase performance and that difficult goals, when individuals have accepted them, results in higher performance than easy goals (Locke 1968 in Austin and Bobko, 1985; in Locke, 2004). Goal setting has four motivational mechanisms (Bryan and Locke, 1967; Locke and Latham, 2002). The first motivational mechanism is that goals that are personally meaningful and interesting tend to focus an individuals attention on what is important and what is relevant (Locke et al., 2008). The second mechanism is that goals have an energizing function. Simply puts, higher goals leads to more effort than lower goals (Bryan and Locke, 1967). The third mechanism is that goals affect persistence. Persistence is the effort expended on a specific task over a certain amount of time (Laporte and Nath, 1996). Normally, the more difficult a goal is to achieve, the higher the persistence. The last motivational mechanism holds that goals affects action indirectly by leading to the arousal, discovery and use of knowledge and strategies (Wood and Locke, 1990 in Locke et al., 2002). Regarding the impact of goal setting on intrinsic motivations, Elliot and Harackiewiez (1994) show some interesting evidence in their article. They explain, by means of regression analysis that the effect of performance or mastery focused goals on intrinsic motivation depends on the degree of achievement orientation of an individuals. Goals are simultenously and object or outcome to look for and a standard for satisfaction (Locke et al., 2002). When an individual wants to achieve certain goals means that this individual will not be satisfief until he reaches that goal. Therefore, goals serve as the inflection point or reference standard to satisfaction versus dissatisfaction (Mento, Locke and Klien, 2002). (Locke et al, 2002) add to this that individuals that produce the most, those with difficult goals, are harder to satisfy. In this case, individuals that set high goals produce more as they are dissatisfied with less.Conceptual Framework Employee Motivation is the independent variable and will be examined through two of its factors, recognition and empowerment. The dependent variable is organizational effectiveness.The conceptual framework of the study is:

Model of the Study The following is the model of the study which will be further discussed and justified.

Research MethodologyObjective The main objective of the study is to analyze the impact of employees motivation on organizational effectiveness. The sub-objectives of the study are: 1. To determine the factors that increase employees motivation.2. To examine the relationship between employees motivation and organizational effectiveness.3.To know the motivation level of the employees of the organization.4.To access the working of the personnel department.

Hypotheses Based on the literature and model the study is designed to test the following hypothesis: H1: There is an effect of recognizing employees work on their motivation to work. H2: There is an effect of empowering employees in tasks on their motivation to work. H3: There is a relationship between employees motivation and organizational Effectiveness.

Research Design :This research is of descriptive. In descriptive research we have sufficient data on the concept and research material. Because many researchers have been done the same concept. Therefore, there is nothing new this concept while I am going to study. I have used questionnaire method for collecting the data. I have formed same questionnaire for workers & staff members.

SAMPLE UNITTarget groups are employees of Au FINANCIERS (INDIA) LIMITED-Jaipur

TYPES OF SAMPLING METHODRandom SamplingSAMPLE SIZEA sample of 30 respondents was collected form the Au FINANCIERS (INDIA) LIMITED.DATA COLLECTION Primary Data - Questionnaire. Secondary Data - Files, Record Books, Company Manuals, Websites and Books.

Recognition and Employee Motivation According to Maurer (2001) rewards and recognition are essential factors in enhancing employee job satisfaction and work motivation which is directly associated to organizational achievement (Jun et al., 2006). Kalimullah Khan conducted a study in which he examined the relationship between rewards and employee motivation in commercial banks of Pakistan. The study focused on four types of rewards of which one was recognition which he tested through Pearson correlation. The results showed that recognition correlates significantly (0.65) with employee work motivation (Kalimullah et al, 2010).An empirical study was conducted in Pakistan to measure the impact of reward and recognition on job satisfaction and motivation. 220 questionnaires were distributed and filled by employees of different sectors. The results showed that there exists a significant (r=0.13, p