An Empirical Investigation of Reward System on Employee Motivation in MTNL

Reward systems of an organisation have an important bearing on the motivation level of the employees. The present study was conducted on the employees of Mahanagar Telephone Nigam Limited (MTNL). MTNL is a renowned state-owned telecommunication service provider in India, operating Marjory in Mumbai and New Delhi. Its operations are spread in Mauritius and Africa also.

Motivation is a psychological characteristic that triggers an action towards a desired outcome. Rewards describe how an individual assign the value to an object, behaviour or an internal-physical state in an objective manner. It is a positive reinforcement for an individual.

The research was conducted to unfold the attitudes of employees towards the reward systems of the company.

More specifically, it will help the company to investigate the most preferred reward system and other reward tools that motivate its employees. For this purpose, a survey was conducted across all hierarchical levels of the organisation on a random basis. The total sample size was 80 in which all levels of employees were to be covered. Therefore, purposive sampling technique was used for the survey. Standardised questionnaire is the primary tool used to collect data for the survey. Various books, magazines, journals and manuals were used as secondary tools. The data collected was subsequently analysed through descriptive research tools for obtaining the results. SPSS and MS-Excel were used to analyse the data and draw conclusions. It was found that there is no effect of demographic variables on employee motivation. A combination of material reward and spiritual encouragement seems be the most efficient way to maximise work motivation in MTNL.

It was suggested that in order to improve employees’ performance, profit-sharing, job rotation and training of employees is imperative.