Non monetary rewards in the Indian BPO

Non monetary rewards in the Indian BPO

UNIVERSITY OF WALES, TRINITY SAINT DAVID

THIS DISSERTATION IS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE DEGREE OF MASTERS OF BUSINESS ADMINISTRATION IN HUMAN RESOURCEDISSERTATION ONINVESTIGATING THE IMPACT OF NON MONETARY REWARDS ON THE INDIAN BPO SECTOR

SUBMITTED BY- VIJEESH KUMARSTUDENT ID- 1002809 Supervised by: Andrew CaswellDepartment of Human ResourceAcknowledgementIn this dissertation, only my name has appeared on the title page, however, there are many others who have contributed towards it. This has been one of the greatest academic challenges that I have faced thus far. I am grateful to everyone who has helped me completing this dissertation. I would like to especially thank Mr. Andrew Caswell, my supervisor, without whom it may not have been possible to complete this dissertation. I owe my deepest gratitude to Mr. Andrew Caswell as he guided and encouraged me through the entire dissertation from choosing the title to completing the analysis. He gave me the freedom to express my thoughts and also corrected me whenever I deviated or faltered. I would also like to thank my wife and my family members for their moral support and encouragement, which has been a source of motivation. I owe my gratitude also to my friends who have had a part to play in the completion of this dissertation.

This dissertation is dedicated to my wife and all my family.

Declaration

I, Vijeesh hereby declare that this dissertation has not been previously submitted or accepted in requirement of any other degree and is not being concurrently submitted as a requirement for any other degree. The work that has been done in this dissertation is entirely my own and has not been prepared by any other person(s). All the sources that have been used in this dissertation have been appropriately referenced. Sincerely, VIJEESH

ContentsAcknowledgement1Declaration2CHAPTER ONE2INTRODUCTION OF THE STUDY21. Introduction2Background of the Study3Aims and Objectives of the Study51.2 Research Questions5What is the effect of the Intrinsic rewards on the engagement and the retention of the employees on the time of recession?5CHAPTER TWO6LITERATURE REVIEW62.1 The Intrinsic Non financial incentives Management System82.2 Intrinsic Non financial incentives and their Impact on Employee Engagement92.3 Recession and its Impact on Intrinsic Non financial incentives Systems11Employee Engagement13Importance of Employee Engagement14CHAPTER THREE17RESEARCH METHODOLOGY173.1 Research Paradigm173.2 Research Approach173.3 Research Design183.4 Sampling Methods203.4.1 Probability Sampling203.4.2 Non-Probability Sampling213.4.3 Sample Size213.5 Data Collection and Analysis Techniques233.6 Types of Data233.7 Questionnaires243.7.1 Self Administered Questionnaire253.7.2 Open Ended Questionnaire253.8 Data Analysis Methods263.8.1 Qualitative Analysis263.8.2 Quantitative Analysis273.9 Alternative Methods273.10 Validity and Reliability of the Questionnaire283.11 Scope and Limitations of the Study293.12 Conclusion30CHAPTER FOUR31DATA ANALYSIS314.1 Analysis and interpretation the Questionnaires314.2 Objective 1:314.3 Objective 2:344.4 Objective 3:364.5 Conclusion36CHAPTER FIVE37CONLSUON AND RECOMMENDATIOS37Recommendations40

CHAPTER ONEINTRODUCTION OF THE STUDY

1. IntroductionAccording to Collings & Wood (2009), the main objective of managing non financial incentives is to provide non financial benefits to all the employees on fair ground and according to their contribution to the organisation along with considering the overall business objectives of the organisation simultaneously. While managing the non financial incentives, the manager has to consider all the employees needs and expectations from the organisation, in order to carry out the management effectively. Due to fluctuations in the economy, money gains more importance when it comes to incentives. Moreover, in modern organisation, money is not the only factor that motivates many employees. According to Mullins (2005), there are two motivators that enhances employee engagement in the workplace namely intrinsic and extrinsic. Moreover, to conduct this study more prominence is given to non monetary concept of non financial incentives considering the current recession that is prevailing in the economy. However, to understand the effects of non financial incentives during the period prior and after the recession, money is also considered to be an eminent factor. As described in Hertzberg two factor theory, monetary aspect such as salary and wages leads to dissatisfaction rather than positive satisfaction. Additionally, in times of stronger economic situation, employee attrition is rising, which means that salary of an employee and satisfaction from the work an employee attains are linked (Torrington et al., 2008). Many companies in the sector of Indian BPO has started talent management so as to retain competitive employees, which again is a part of strategies of intrinsic non financial incentives. Talent management is a tool used to increase employee engagement which would give them a sense of staying with the company and thereby retaining them. Moreover, Bhatnagar (2007) states that many employees dont understand what actually employee engagement in workplace is, which is an obstacle for the company. Furthermore, the concept of talent management system is basically a system which will lead the employers to be the employers of choice. According to Berry (2008), apart from monetary incentives i.e. money, there are many non financial benefits that motivates and raise employee engagement in workplace, such non financial benefits consists of paid holidays, insurance cover for families, child care, proper balance between professional and personal life, which in turn helps the organisation to retain competitive employees for a longer period of time. Background of the StudyAccording to Torrington et al. (2008),[R]eward is clearly central to the employee relationship. Moreover, non financial benefits are very substantial for every individual. The basic reason for an individual to work is to earn money so that he can run his family. From the viewpoint of employee, any compensation that they receive for their work, that has monetary value, refers to non financial incentives. Moreover, normally salaries, bonuses or other bonuses that an employee receive is considered as non financial incentives by the employees. As stated by Braton & Gold (1999), the system of non financial incentives is a vital part of Human resource department of any organisation which can be overlooked. However, according to Bratton & Gold (1999), the resistance of employees towards any form of non financial incentives is one of the major challenges an organisation faces, irrespective of the pay system they design with respect to non financial benefits. As stated by Bach (2005), while designing the pay system for non financial incentive, the organisation, should not only design a best system which will be accepted by the employee but also has to consider to cost that would be incurred for such system. Moreover, it is not just monetary non financial incentives that has to be considered in pay system, but also the non monetary non financial benefits has to be taken care of as they are becoming more vital in modern business organisation. According to Collings & Wood (2009), the main objective of managing non financial incentives is to provide non financial benefits to all the employees on fair ground and according to their contribution to the organisation along with considering the overall business objectives of the organisation simultaneously. While managing the non financial incentives, the manager has to consider all the employees needs and expectations from the organisation, in order to carry out the management effectively. Due to fluctuations in the economy, money gains more importance when it comes to incentives. Moreover, in modern organisation, money is not the only factor that motivates many employees. According to Mullins (2005), there are two motivators that enhances employee engagement in the workplace namely intrinsic and extrinsic. Moreover, to conduct this study more prominence is given to non monetary concept of non financial incentives considering the current recession that is prevailing in the economy. However, to understand the effects of non financial incentives during the period prior and after the recession, money is also considered to be an eminent factor. As described in Hertzberg two factor theory, monetary aspect such as salary and wages leads to dissatisfaction rather than positive satisfaction. Additionally, in times of stronger economic situation, employee attrition is rising, which means that salary of an employee and satisfaction from the work an employee attains are linked (Torrington et al., 2008). Many companies in the sector of Indian BPO has started talent management so as to retain competitive employees, which again is a part of strategies of intrinsic non financial incentives. Talent management is a tool used to increase employee engagement which would give them a sense of staying with the company and thereby retaining them. Moreover, Bhatnagar (2007) states that many employees dont understand what actually employee engagement in workplace is, which is an obstacle for the company. Furthermore, the concept of talent management system is basically a system which will lead the employers to be the employers of choice. According to Berry (2008), apart from monetary incentives i.e. money, there are many non financial benefits that motivates and raise employee engagement in workplace, such non financial benefits consists of paid holidays, insurance cover for families, child care, proper balance between professional and personal life, which in turn helps the organisation to retain competitive employees for a longer period of time. Aims and Objectives of the StudyThe purpose of this research has been to analyse the role of the reward management in the performance of the employee in the Indian BPO sector. The mina objectives that has been used in the study are the To evaluate the role of the non financial rewards as the motivators in the BPO sector To evaluate the intrinsic rewards role in the Indian BPO sector To analyse the effect of the Intrinsic rewards on the engagement and the retention of the employees on the time of recession1.2 Research QuestionsThe questions of the research have been acted as a guide in the research as it will used for the nature of the collection of the data. The main questions of this research are Do the non financial rewards act as the motivators in the BPO sector? What is the role of the intrinsic rewards on the Indian BPO sector? What is the effect of the Intrinsic rewards on the engagement and the retention of the employees on the time of recession?1.3 Research outlineThe outline of the research will help the readers to understand what all contents have been covered in each chapter of the research. This study was based on the motivational aspects and the research was covered across five chapters. The outline of the research was given below in bullet points The introduction to the motivational aspects and the importance of the customer retention were given by the researcher in the introduction chapter. The research aims and the objectives were given followed by the research questions. The personal rationale behind the selection of the topic also has been given. The framing of the literature has been covered in the literature section. The literature regarding the motivation and the retention has been explained by discussing the past research papers and the journals. The research methods and the tools used by the researcher for doing the research on the BPO aspect has been given in this section. The justification for choosing each method and the tool was also explained. The analysis section was done in the chapter four. The primary data analysis and the discussion using the secondary data were covered in this chapter. The last chapter deals with the winding up of the research. The conclusion of the research and the possible recommendations from the study were explained.

CHAPTER TWOLITERATURE REVIEWThe literature review has been discussed in this chapter of the research study. The past literature about the non monetary non financial incentives has been mainly reviewed in this section along with a brief discussion about monetary non financial benefits, so as to provide an outlook for the literature review. Mainly journal articles have been reviewed for the purpose of this research study, however, theories of expert authors, news paper articles have also been reviewed which provides the contemporary outlook about non monetary non financial incentives. According to Torrington et al. (2008),[R]eward is clearly central to the employee relationship. Moreover, non financial benefits are very substantial for every individual. The basic reason for an individual to work is to earn money so that he can run his family. From the viewpoint of employee, any compensation that they receive for their work, that has monetary value, refers to non financial incentives. Moreover, normally salaries, bonuses or other bonuses that an employee receive is considered as non financial incentives by the employees. As stated by Braton & Gold (1999), the system of non financial incentives is a vital part of Human resource department of any organisation which can be overlooked. However, according to Bratton & Gold (1999), the resistance of employees towards any form of non financial incentives is one of the major challenges an organisation faces, irrespective of the pay system they design with respect to non financial benefits. As stated by Bach (2005), while designing the pay system for non financial incentive, the organisation, should not only design a best system which will be accepted by the employee but also has to consider to cost that would be incurred for such system. Moreover, it is not just monetary non financial incentives that has to be considered in pay system, but also the non monetary non financial benefits has to be taken care of as they are becoming more vital in modern business organisation.

2.1 The Intrinsic Non financial incentives Management SystemManagers go through a tough time while deciding about the relevant strategies with respect to the non financial incentives for its employees. As stated by Torrington et al. (2008), the strategies for non financial incentives should be in coordination with the overall business vision and mission of the organisation as a whole. Furthermore, Armstrong (2006) mentions that, Non financial incentives strategy is a declaration of intent that defines what the organization wants to do in the longer term to develop and implement non financial incentives policies, practices and processes that will further the achievement of its business goals and meet the needs of its stakeholders. A proper set of non financial incentives policies framework can be set up through appropriate strategies of non financial incentives. The non financial incentives system in an organisation should be clearly stated and should be in coordination with the overall objective of the organisation so as to make this system more effective. The major issue that India BPO industry is facing, is of the employee attrition, which is rising with each passing day. Thus, as mentioned by Bratton & Gold (1999), non financial incentives should help to reduce the employee attrition rate and retain competitive employees through effective system of non financial incentives. According to Collings & Wood (2009), the main objective of managing non financial incentives is to provide non financial benefits to all the employees on fair ground and according to their contribution to the organisation along with considering the overall business objectives of the organisation simultaneously. While managing the non financial incentives, the manager has to consider all the employees needs and expectations from the organisation, in order to carry out the management effectively. Due to fluctuations in the economy, money gains more importance when it comes to incentives. Moreover, in modern organisation, money is not the only factor that motivates many employees. According to Mullins (2005), there are two motivators that enhances employee engagement in the workplace namely intrinsic and extrinsic. Moreover, to conduct this study more prominence is given to non monetary concept of non financial incentives considering the current recession that is prevailing in the economy. However, to understand the effects of non financial incentives during the period prior and after the recession, money is also considered to be an eminent factor. As described in Hertzberg two factor theory, monetary aspect such as salary and wages leads to dissatisfaction rather than positive satisfaction. Additionally, in times of stronger economic situation, employee attrition is rising, which means that salary of an employee and satisfaction from the work an employee attains are linked (Torrington et al., 2008). Many companies in the sector of Indian BPO has started talent management so as to retain competitive employees, which again is a part of strategies of intrinsic non financial incentives. Talent management is a tool used to increase employee engagement which would give them a sense of staying with the company and thereby retaining them. Moreover, Bhatnagar (2007) states that many employees dont understand what actually employee engagement in workplace is, which is an obstacle for the company. Furthermore, the concept of talent management system is basically a system which will lead the employers to be the employers of choice. According to Berry (2008), apart from monetary incentives i.e. money, there are many non financial benefits that motivates and raise employee engagement in workplace, such non financial benefits consists of paid holidays, insurance cover for families, child care, proper balance between professional and personal life, which in turn helps the organisation to retain competitive employees for a longer period of time. Overall, it can be noted that from the view point of employees the satisfaction level is less through the packages of non financial incentives. Berry (2007) states that even the talent management concept is not providing fruitful results along with non financial incentives system. 2.2 Intrinsic Non financial incentives and their Impact on Employee EngagementDuring the period before recession hit the economy, higher salary lead to higher level of employee engagement as well as their performance was high, wherein, rise in salary was the main factor that compelled employee to perform better and raised the employee engagement level. On the same note it was mentioned in Personnel Today (2003) that the pay and the level of engagement should be properly linked and all the employees should be aware about the working of such link in order to make this relationship between pay and engagement more efficient and effective. However, the employees will be attracted to look for better working conditions in a while, which is one of the major drawback of this system as the attrition will go up (Budhawar et al., 2009). Employees are now more conscious about the working conditions that an organisation provides to them, wherein, better environment in workplace will lead to higher engagement level. Thus monetary non financial incentives are not the only aspect that motivates employee engagement, but working conditions also has to be considered by the organisation. According to Torrington et al. (2008), the impact of non financial incentives on the level of engagement amongst employees in the workplace of Indian BPO industry is yet to be generated, although non financial incentives do have a positive impact on the employee engagement and motivation.The concept of non financial incentives should be understood in a traditional manner, considering the traditional thought about non financial benefits. Moreover, there are several approaches to human resources which discuss about the concept of non financial incentives apart from various theories on motivation. Employees are motivated at a higher level through monetary or tangible non financial benefits as per the classical motivation thinkers, whereas employees are motivated to a great extent through intrinsic non financial benefits as per the motivational thinkers who are process oriented (Torrington et al., 2008). According to Ben et al., non monetary non financial benefits which are intrinsic in nature motivates the employees at greatest level in several situations. Such benefits includes praise, recognition as well as appraisal. As stated by DeCenzo et al. (2010). In modern organisation in can be seen that non financial incentives without monetary value motivates and encourages the employees to be engaged in their work to a great extent which is equivalent to the motivation from monetary non financial benefits which encourages employees to a higher extent as per traditional thinkers. Working condition in BPO industry of India, which comes under non monetary non financial benefits, is one of the vital factor that is eminent for employee engagement and a major reason for employee attrition is a proof that employees are driven to a great extent because of non monetary non financial incentives. Monetary Non financial incentivesOne of the most customary type of non financial incentives that an employee expects from his organisation, are the monetary non financial incentives. Nevertheless, many companies were unable to provide monetary non financial incentives to their employees as the turnover of the companies went down due to the current recession in the economy. Adding to this Brockett (2009) mentions that many employee were laid off by the organisation as a result of the recession. However, one cannot deny the fact that an employee is highly motivated by the money factor. As stated by Mullins (2005), the level at which money will motivate an employee highly depends on employees need. As mentioned in Accenture (2011), in the case of Indian BPO industries, employees wish to stay with the company and be productive is largely linked with non financial benefits with monetary values. The salary offered by the companies in the Indian BPO industry are one of the major factor that fascinates many employees. According to Brockett (2009), there is a shortage of manpower in this industry and hence, companies tend to pay more than minimum standards, in order to get the manpower which can assist the management to get talented manpower through this technique. According to Lynch (2006), the employee have the power to switch from one organisation to another as they have more bargaining power towards the companies which also leads to rise in the rates of attrition in the Indian BPO industry. Moreover, the opportunities of growth and advancement is almost negligible as well as the work is monotonous in the Indian BPO industry, thus it can be seen that money plays a vital role in motivating employees of Indian BPO industry. As stated by Mullins (2005), in the absence of other external motivational factors, employees are more motivated by the monetary aspect of non financial incentives in the BPO industry. It is apparent that employees shows a degree of dissatisfaction due to the psychological aspect in the organisation. There are various factors that leads to employee attrition in Indian BPO industry, wherein, monotonous jobs, labourous, lack of advancement, inappropriate and long hours of work are the prime factors that leads to employee attrition. Apparently, during the period prior to recession, employees were highly motivated by the monetary non financial incentives in Indian BPO industry. As stated in The Economic Times (2011), in the search of higher salary, employees switched companies in the same sector of Indian BPO. However, this scenario have changed during the period of recession as well as post recession due to more significance of non financial motivators. 2.3 Recession and its Impact on Intrinsic Non financial incentives SystemsAll the employees were choosing a job where they have job security as well as balanced salary during the time of recession, which was significantly difficult looking to the economic conditions. The rate of attrition has shown a downfall during the period of recession, thereby showing employees stability in their respective jobs. According to Blyth (2008), employees were not much concerned about the salary aspect during recession as they were looking for job stability. Moreover, there was a significant cut on employee benefits as well as other monetary incentives as a result of recession, however, it did not raise the level of attrition in BPO sector. Thinmmaya & Padmapriya (2008), mentioned that the rate of attrition showed a downfall during recession as the employees were compelled to stay put. Furthermore, employees concern about job stability and stable income were the main reason that lead to fall in attrition rate during recession. According to Torrington et al., (2008), many organisations started laying off employees as a result of recession, and thereby making job stability as one of the main aspect of motivation and thereby retaining competitive employees. Moreover, it might be an obvious situation wherein attrition goes up during boom period and it falls during recession as during recession company lays off many employees to save cost and thereby making job stability as the first preference of any employee in such situations (Torrington et al., 2008). Additonaly Thimmaya & Padmapriya (2008) mentioned that, during recession, it was observed that instead of switching companies for more salary, most of the employees were searching for opportunities to advance in the same BPO industry. Furthermore, this aspect of job stability, amongst the employees, increased the bargaining power of companies in this sector, nevertheless, the fight to gain the most productive employees was still prevailing between organisation (Kim & Won, 2007). The frontline employees plays the vital role for the organisation in the sector of BPO, as the customers contacts them directly regarding any issues with the products or services as well as maintaining bills and other problems that customer faces. Hence, the company have to avail such employees with appropriate working environment to give them a sense of self motivation and job satisfaction (Collings & Wood, 2009). Moreover, in the BPO industry it is examined that the high rate of attrition majorly includes such front line employees as advancement opportunities, money as well as conducive working condition are the main needs of these employees (Budhwar et al., 2009). Furthermore, organisations finds it difficult to raise salary during recession, thus growth opportunities and working conditions are the prime motivators for employees. Thus, an employee would look for better alternative in the absence of conducive working environment and lack of growth opportunities in an organisation (Emerald Publishing Group, 2008). Organisations should come up with more creative ways to motivate employees during the period of recession. During recession, a stability in the opportunities of growth within the industry was one of the strongholds for the sector of BPO in India. According to Eluvangal (2008), the layoffs in the US BPO industry were much higher than that of Indian BPO industry during the period of recession, although Indian BPO largely reply on companies of US BPO industry. The main reasons why American companies invested in Indian BPO sector is due to dynamism and success of the operations of parent companies as well as it was cost effective as the investment was significantly low. Thus, more employees were laid off from parent countries rather than from Indian companies in BPO industry ( Penter et al., 2009; Riberio, J, 2009). Furthermore, no long term commitment was also one of the major reasons of rise in attrition rates in the BPO sector. According to an article by Emerald Publishing Group (2008), employees joined BPO industry as the salary in this industry was higher than compared to companies in other segments in India. Nonetheless, conducive working conditions as well as feasible work hours were some major aspects of non monetary non financial incentives that motivated employees of BPO industry. Employee EngagementAccording to Saks (2006), there is no clear definition of the concept of Employee engagement and it has been given varied definitions by various authors. Xu & Thomas (2011), defines employee engagement as degree to which individuals make full use of their cognitive, emotional, and physical resources to perform role-related work. The aspect that employee engagement and commitment as well as citizenship of organisation are linked has been acknowledge by majority of authors (Saks, 2006; Devi, 2009; Mathis & Jackson, 2010). Furthermore, Saks (2006) & Krishnan (2011) states that employee engagement is associated with emotional as well as psychological commitment to an organisation. The strength of psychological contract defines engagement, it can also be referred to as the improvement in individuals performance due to the psychological contract. According to Murcott (2010), there is lack of engagement in BPO industry as the work in BPO industry is monotonous and employees working in this industry gets used to such work life which directly leads to disengagement of employees in their work (Saks, 2006). One of the major challenges that the BPO industry of India is facing is disengagement, which leads to employee not being too much involved in the work responsibilities both mentally as well as physically (Saks, 2006). Bhatnagar (2007) states that when the employees are not involved in their job responsibilities the level of attrition is tend to go up in organisations. If the strength of BPO industry depends on the level of their employees engagement then this industry in India is not too strong (Bhatnagar, 2007). Employee engagement is also referred to as the commitment that an employee has towards his/her organisation, wherein such commitment is related to the attitude and bonding that an employee has towards the organisational business (Saks, 2006). However, engagement is more concerned about the involvement that an individual has towards his roles as well as organisational functions rather than just his/her attitude towards the business (Devi, 2009; Bhatnagar, 2007). Moreover, it can be stated that intrinsic motivation of an employee to show better performance leads to employee engagement along with showing a higher level of loyalty and commitment towards the business (Srivastava & Bhatnagar, 2008). According to Devi (2009), engagement is more than just a commitment to an organisation. Furthermore, involvement in job and engagement are not the same. Although job involvement is a part of employee engagement, an employee who is involve in the job are not necessarily engaged (Saks, 2006). Psychological behavioural aspect is linked to involvement, whereas psychological as well as emotional behavioural aspects are linked to engagement (Shuck et al., 2011). According to Whittington & Galpin (2010), commitment as well as greater employee involvement in the organisation are promoted by engagement. According to Saks (2006), researcher refers disengagement as burnout, thus engagement is defined as burnouts opposite. According to Shuck et al. (2011), disengagement refers to withdrawal of oneself wherein, one withdraws his interest from the organisation due to lack of bonding with the values of organisation. Furthermore, many authors states that engagement is a positive occurrence, wherein the burnout researchers defines engagement as a positive concept (Rothbard, 2001). In order to engage employees, the culture of organisation should be able to boost positive attitude of employees towards their job as well as organisation as a whole (Seligman & Csikszentmihalyi, 2000). In a nutshell there are many concepts of HR management which are linked to employee engagement namely, performance, commitment and involvement, however, it varies from each bases of HR management. According to CIPD (2011), the aspect of engagement is explicit constituent of HR which assists the managers in improvising the performance of organisation. Importance of Employee Engagement Employee engagement plays a significant role in enhancing the culture of organisation in events of critical factors of business sector. The business with higher level of employee engagement are the ones to be more successful and such engaged employees do not leave the organisation. According to Mathis & Jackson (2010), engaged employees encourages their colleagues to raise their productivity. However, management finds it challenging to create an environment which boosts the sense of engagement amongst the employees of company. Pritchard (2005) mentions that it is difficult to find employees who are really involved in the work they are undertaking. As stated earlier, developing the sense of higher employee engagement is one of the major challenges that companies are facing. This can be really difficult task for the organisations having authoritative structure of business. A committed employee will work more efficiently than the ones who are less committed and engaged in the work they are undertaking (Devi, 2009). The environment of work, in an organisation, should boost commitment which will directly lead to better performance level. The performance of an employee may be affected by the benefits or other pay packages offered by the organisation but it is not necessary that it would lead to more employee engagement (Torrington et al., 2008). Many authors have mentioned earlier that commitment and identification of business is not same as employee engagement, however, this can lead to employee engagement (Rothbard, 2011). In modern business customer is consider to be the king as it is on customers, the whole business depends. The success of any organisation depends on the service they provide to their customer and the level of satisfaction they provide to customers with their services rendered (Bulgarella, 2005). According to Devi (2009), the satisfaction level of customer is linked to the engagement level of employees in an organisation. An engaged employee will work productively which in turn will lead to enhancement in the service provided to customer and in turn raising the satisfaction level of customer through efficient service. The efficiency of the organisation as a whole widely depends on the engagement level of its employees, hence engagement of employees is a critical factor that has to be taken care of by any organisation in order to be successful (Mathis & Jackson, 2010). Furthermore, an employee who is highly engaged will provide efficient services to customers which in turn will lead to a positive impression of the organisation on customers, thereby leading to gaining the loyalty and repetition of such satisfied customer. Soloman et al. (2006) states that the capability of an employee also leads to better services provided to customers other than the engagement level. In the BPO industry of India and the Call Centres, the employees are in direct contact to customers, thus, the level of employee engagement plays vital role for the success of business in this industry. Employee engagement programmes that were introduced in this industry has shown a positive result on the employee engagement level according to a report in The Financial Express in the year of 2007.

Such programmes leads to employees understand about the organisations fundamental values and thereby encouraging a feeling of putting their best efforts towards these values of their organisation (Gonring, 2008). As mentioned by Parbat & Mazumdar (2006) in a study conducted in Wipro (Indian BPO company), such programmes to encourage employee engagement has shown positive results in making employees understand about the fundamental values of their organisation. As per the strategy to encourage employee engagement, the employees were allowed to form a connection amongst themselves as well as with different departments of the company. Moreover, communications amongst the employees will lead to more socialism which will directly leads to rise in engagement level in workplace (Mathis & Jackson, 2010). However, Mullins (2005) states, that networking will not induce the fundamental values of organisations to an employee. Employee engagement is a major aspect which enables the business to gain a competitive edge in the market, thus it is very important that all the employees are highly engaged in the organisation as well as in the jobs that they carry out (Joe & Mclean, 2006).

Furthermore, employee engagement leads to creating an emotional as well as psychological bonding between the employees. Such bonding will enhance engagement level which will lead to better productivity on personal level as well as for the organisation as a whole (Bhatnagar, 2007). Such bonding will lead to a situation where no one will have anything to lose and performance level will be raised which will, positively affect the bottom line of the business as well (Devi, 2009). The level of absenteeism goes down as a result of high employee engagement as well as the return on assets also shows a rise (Xu & Thomas, 2011). Furthermore Saks (2006) states that, retention is somewhere linked to the engagement level of employees, as the absenteeism is reduced due to employee engagement, similarly engagement also decreases the rate of attrition to an extent.

CHAPTER THREERESEARCH METHODOLOGYThis part of the dissertation is concerned with the methodology used in the study and the approaches that have been taken in gathering the data for the analysis. The chapter also provides an insight into the reasons as to why each of these methods or approaches has been adopted. For the purpose of this research, both primary data has been used in light of the literature review to analyse the data. 3.1 Research ParadigmThe research paradigm is one of the most important aspects of a study. It helps direct the course of the study and also helps users to be able to understand the point of view of the researcher (Saunders et al., 2007). There are various approaches that are generally chosen by researchers, these are epistemology, ontology, and axiology. In these approaches, there are different research philosophies available to the researchers, such as, positivism, interpretivism, realism, and objectivism, among many others (Tharenou et al., 2007). For the purpose of this research, an interpretivist research philosophy will be adopted. This is because there is relatively very little literature on the subject and there is also no hypothesis for the study as well. The importance of choosing this research philosophy stems from the fact that this study is related to the behaviour of individuals, rather than about establishing statistical figures or trends. The interpretivist approach deals with understanding the differences between humans (Saunders et al., 2007, p.106), and as such, this philosophy is most appropriate for the study. Additionally, the study is cross-sectional study and involves the study of a particular phenomenon at a particular time. In this case, it refers to the study of human behaviour with respect to the reward system in the BPO industry in India (Torrington et al., 2008).3.2 Research ApproachThe two main approaches that are available to researchers are inductive and deductive (Saunders et al., 2007). While the inductive approach deals with building theory where there is very less academic literature on the subject, the deductive approach is more scientific and deals with testing the existing theories or hypotheses. In many cases, it has also been seen that a combination of the two types of approaches is also possible in which case the findings can be triangulated. The type of approach chosen is largely based on the researchers choice and the type of research that is being conducted. This research philosophy the interpretivist philosophy, demands an inductive approach in order to be able to formulate a theory or an understanding of the relationship of the recession and the reward strategies in the Indian BPO industry with respect to the performance of the employees. The inductive approach can help in understanding why something happens and as such, is instrumental in formulating a theory for the occurrences. Additionally, it has been argued that the inductive approach is perhaps the best approach to analyse why things happen as the theory is more likely to fit the data and thus is more likely to be useful (Gill & Johnson, 2002, p.40). The theory formulated in this way is bound to be more useful from a managerial perspective as it fits the requirements of the management. Being that the research is time constrained; the inductive approach fits well as the sample size for the study can remain small as opposed to a deductive approach that uses primary data (Saunders et al., 2007). Also, although the data obtained will not be able to help establish trends or statistical information, the data will certainly help in providing an insight into the reward strategies and relation to the performance of the employees in the BPO sector in India. This will also serve as a starting point for other researchers to study further on this subject. However, it must be noted that there is also an element of deductive approach that is used in the study, with respect to the research strategies (Dawson, 2002).3.3 Research DesignThe research design and the research strategy are determined based on the research questions and the objectives of the study. In order to meet with the research objectives, the most appropriate research strategy has to be selected. However, the other constraints such as time and other resources should also be given due importance (Tharenou et al., 2007). There are some typical research strategies that are used with exploratory, explanatory, descriptive, and inductive research approaches. Some of the major types of research designs, as stated by Saunders et al (2007) are the case study research design (which is typically used by most student researchers), the experiment research design (which is more scientific in nature), the survey strategy (one of the most common research strategies), the action research, and grounded theory strategies (Saunders et al., 2007). The research strategy that seemed to be most appropriate under the circumstances for this research was the survey research strategy. As such, the research strategy that has been chosen for this study is a survey strategy which is one of the research strategies that are not usually adopted for an exploratory or inductive research design (Saunders et al., 2007). The survey strategy is one of the most common strategies generally for a business research or management research project. However, it is also true that although the survey strategy is used for exploratory research designs, it is often associated with the deductive approach (Saunders et al., 2007). Nevertheless, as there is no right method that can be used with any one particular research approach, the survey strategy serves quite well in the inductive approach. It has also been stated that the survey strategy is the best strategy to be able to answer questions such as what and who (Saunders et al., 2007; Tharenou et al., 2007). With regard to this study, the primary questions are what questions and hence, the survey strategy will be able to deliver the answers that are sought in the study. Some of the techniques that are available for the collection of data with respect to the survey strategy are questionnaires and interviews (Dawson, 2002). The data that is collected from the questionnaire can be easily used to define the relationship between the variables and formulate a theory from the resulting findings. Questionnaires are also highly economical and can be used to obtain information from large samples with relatively very low cost (Saunders et al., 2007). Also, the time that it takes to obtain the information from respondents is relatively lesser than some of the other options such as focus groups or observation or even case studies (Dawson, 2002). For a management student, this will also be convenient as well as easy to administer due to the low cost involved. From the open ended questionnaire, it will be easy to analyse the data as the questionnaire will be self administered and will provide a lot of qualitative information. Through this questionnaire, it will be possible to analyse the attitudes, perceptions and performance of the employees (through likert scales) in the Indian BPO industry with regard to the rewards systems that are in place pre and post recession. For the administration of the questionnaire, the population for the study has to be sampled. Additionally, the questionnaire will not collect any personal information from the respondents to ensure that there is no researcher bias in the study (Gill & Johnson, 2002). In other words, the personal information will be kept confidential. 3.4 Sampling MethodsIn research, it is necessary to sample the population as it may be physically impossible to survey the entire population for the study. A sample is a small representative portion of the entire population (Saunders et al., 2007). In other words, the data that is obtained from the sample will generally have to be representative of the entire population that has been chosen for the study. Additionally, it is practically not feasible to be able to collect information from all the employees or the managers in the BPO sector in India. Also, there are time constraints and financial constraints that hold back the possibility of surveying the entire population (Kothari, 2004). The two major types of sampling are probability sampling and non-probability sampling.3.4.1 Probability SamplingProbability sampling is one of the characteristics of a survey research design with respect to a deductive study (Saunders et al., 2007). A sample for a questionnaire should generally be a representation of the entire population, or else there be some error in the findings and analysis. The reason being that in order to establish statistical data which can establish trends, the data that is obtained should be representative of the entire population. In other words, the data obtained should reflect the perceptions and ideas of the entire population. There are different types of probability sampling options that are available. Among them are cluster sampling, systematic random sampling, simple random sampling, and stratified sampling (Saunders et al., 2007). It has been seen that for convenience, most researchers use the simple random sampling technique which eliminates researcher bias to an extent (Dawson, 2002). Additionally, this type of sampling technique is relatively easy to carry out as there are no strict regulations that have to be followed. However, there is one problem that may occur a problem with normality of the data, which is usually revealed if the researcher was biased in choosing the respondents for the study (Tharenou et al., 2007). However, since the study is concerned with an inductive analysis of the data, probabilistic sampling techniques have not been considered. Another reason as to why the probabilistic sampling technique was not considered is because of the difficulties that would have been faced in seeking participants for the study owing to the differences in geographical location (Saunders et al., 2007). Non-probabilistic sampling techniques were seen to be more convenient and easier to administer from a students perspective. 3.4.2 Non-Probability SamplingThe non probability sampling technique is useful when the sample does not have to be representative of the entire population and when there is no specific sampling frame that is available for the collection of data (Saunders et al., 2007). It has also been stated that non-probability sampling is a form of non-random sampling in the sense that the researcher controls the sample for the study. The different types of sampling techniques that are available under non-probability sampling are quota sampling (closest to systematic sampling), snowball sampling, and convenience sampling. Although these sampling techniques tend to be judgemental and require more effort in the collection of data, given the circumstances, the non-probabilistic sampling technique is perhaps the most appropriate for the study (Saunders et al., 2007; Gill & Johnson, 2002). For this study, the chosen sampling technique is a snowball sampling technique, wherein the sample will be built from acquaintances (Saunders et al., 2007). The reason as to why this method is feasible is because one of my contacts is a team-leader in Infosys BPO. As such, the data that will be collected will be varied across various companies in the BPO industry in India. The sample can be built upon by building contacts from the primary contacts. Additionally, the fact that these respondents are acquaintances will ensure that there is no respondent bias. In other words, the respondents will not be biased towards giving a favourable or unfavourable image of the company that they work in, rather they may present a true picture of what is happening within various companies. This method of sampling is both convenient as well as cost effective as the questionnaire can be sent through email or can be conducted online and the respondents will be easily accessible (Belk, 2006). The questionnaire was formulated on the survey gizmo website and the link to the questionnaire was sent to the respondents by email. 3.4.3 Sample SizeIt was estimated that the ideal size for the sample would be about 100 to 150 respondents, for the inductive study. The recommended sample size of 384 participants (according to Saunders et al., 2007) was not chosen as it applies to a deductive approach. However, since the sampling method chosen was snowball sampling, I was able to approach only about 50 individuals for the study. Although this may seem to be a very small number, the response rate was at 86% for the study, which is very good and means that 43 individuals completed the questionnaire (Saunders et al., 2007). Since the BPO industry is concentrated in Bangalore in India, the sample was primarily chosen from companies in Bangalore. Additionally, the sample (Bangalore) is representative of the BPO industry across other states in India as well. The small sample size and the average response rate indicate that this study may require further research in the future. The sample consisted of managers and employees with a 2:8 ratio for managers (or team leaders) and employees respectively (every two in ten respondents was a manager or a team leader). Additionally, since the sample was selected through snowball sampling, the sample size and the response rate did not actually matter. Snowball sampling eliminated the need for the sample to be representative of the entire population. Although this could present a problem that the results may be biased towards the employees views, it was seen that managers expressed similar views indicating that the results would not be biased towards wither management or employees (Wright & Marsden, 2010). Also, the elimination of the respondent bias in that sense makes the findings more reliable and valid. The completion rate was 95% and the responses seemed to be similar (less variance) indicating that the questionnaires were error free to an acceptable level (Saunders et al., 2007). This was achieved by incorporating a requirement that all questions must be answered before being able to pass on to the next page or to finish the questionnaire. However, it was noted that two individuals did leave the questionnaire incomplete (as no one was forced to complete the questionnaire and they could leave it if they wanted to) which is why the completion rate was at 95%. Hence, the total number of useable completed responses was 42. Ethical IssuesThe primary ethical issues while conducting this research was to ensure that the employees details were kept confidential (Saunders et al., 2007; Gill & Johnson, 2002). This meant that the names of the employees could not be collected for the purpose of the study. Additionally, in cases where the team leaders/ managers and employees within a company completed the questionnaire, the information was not disclosed to the management in order to protect the employees interests. Since the questionnaires were administered online, only the email ids of few of the employees to whom the questionnaire link was sent was stored (for proof that the questionnaires were actually completed by the employees themselves). No confidential information was collected from the respondents through these questionnaires this included variables like names, age, position, etc. 3.5 Data Collection and Analysis TechniquesAny data that has to be analysed from a research study is usually analysed in a qualitative or quantitative format. It is seen that quantitative data that deals with numbers and statistics and results in numerical and standardised data (Gill & Johnson, 2002). Additionally quantitative data is analysed through statistical programs and use of graphs and diagrams. On the other hand, qualitative data is more to do with feeling and emotions that are expressed by respondents. They can be analysed by sorting the data collected into various themes or categories. Additionally, they can also be analysed the conceptualisation (Saunders et al., 2007).In most studies, researchers often choose predominantly a single type of analysis. However, there are also many other researchers who choose a multi-method where more than one type of data can be analysed (Saunders et al., 2007). Multi-method data analysis includes both multi-method quantitative studies as well as multi-method qualitative studies. It has been seen that the multi-method data analysis choices one of the most popular choices among management research studies (Tharenou et al., 2007). Another type of data analysis technique that is used by many researchers is the mixed method technique where both qualitative as well as quantitative data is analysed through various methods. The mixed method data analysis technique is very useful as it enables triangulation. Triangulation can improve the validity and reliability of the study by validating the results by using two or more techniques of data analysis (Saunders et al., 2007). The survey strategy that has been used in this study is both quantitative as well as qualitative in the sense that the questionnaire has both quantitative as well as qualitative options for the respondent. In other words, the questionnaire demands the respondent fills in both quantitative as well as qualitative information (Saunders et al., 2007).3.6 Types of DataThe main data that has been collected for the analysis in this study is primary data. However, secondary data has also been used in the formulation of the literature review and the formulation of the questionnaire for the study. The primary data has been collected by using questionnaire which had both open-ended as well as structured questions (Saunders et al., 2007).Primary DataPrimary data can be defined as the data that is collected or gained through direct contact or resources. Primary data is vital for any research or study to be undertaken (Saunders et al., 2007). There are many methods in which primary data can be collected from various sources. In this study, questionnaires have been used to collect data from the respondents.Secondary DataThe secondary data that has been collected in this study has been collected from various sources such as newspapers and journal articles. These sources were able to help in formulating questions for the questionnaires. It has been seen that the BPO industry in India is flourishing (Thimmaya & Padmapriya, 2008). However, the industry is plagued with high rates of attrition which are related to the reward systems that are followed by various companies within the BPO industry (Beer, 2005). These attrition rates could in turn lead to lower levels of performance among employees. As such, these concepts were used in the formulation of questions for both the questionnaires.3.7 QuestionnairesQuestionnaires are among the most commonly used tools to collect primary data from respondents. It is also one of the typical tools that are used in a survey research design (Gill & Johnson, 2002). There are different kinds of questionnaire that can be formulated and administered to the respondents. There are structured questionnaire, semi-structured questionnaire, and also open ended questionnaire which can be used by researchers to collect various kinds of data (Saunders et al., 2007). For the purpose of this study, a combination of structured and open-ended questionnaire was used to collect data from the respondents. Although the questionnaire was generally structured, there were also a couple of open ended questions that were used in the questionnaire in order to allow the respondents to express themselves. The structured parts of the questionnaire have been used to analyse the responses of the respondents while being quizzed about various aspects of the reward system and employee performance. On the other hand, the open-ended questionnaires have been used to obtain valuable qualitative information from the respondents. It has been seen that questionnaire and surveys are generally not the preferred tools in a qualitative analysis or an inductive analysis (Saunders et al., 2007). However, for convenience and ease of use, these tools have been used in the study. In addition to the survey questionnaire, there was another set of open-ended questions that were given to 4 of the respondents. The answers that were provided to these questions and the open ended questions that were asked in the first and second questionnaire were used to validate the results of the questionnaire (Dawson, 2002). 3.7.1 Self Administered QuestionnaireThe self administered questionnaire is one of the most widely used methods in administering questionnaires. In this method, the questionnaires are generally completed by the respondents without being supervised or administered by the researcher. The most common areas for the self administered questionnaires are through emails and the internet (online) (Belk, 2006; Saunders et al., 2007). For the purpose of this study, two questionnaires were prepared. One questionnaire had 17 questions with two open-ended questions and another questionnaire had 3 open ended questions. The reason as to why the 3 open ended questions were not incorporated into the other questionnaire was because it would have lead to lower completion rates. Additionally, if the questionnaire was longer, then the chances of it being completed would reduce. The 17 questions that were designed would ensure that the completion rate would be good (as it proved to be at 95%). The second questionnaire did not pose much of a problem as it was only given to 3 selected respondents. 3.7.2 Open Ended QuestionnaireSince the nature of this study is exploratory, it necessitated that open ended questions should be included in the questionnaires (Saunders et al., 2007). The reason as to why open ended questions are important is that they can provide an in-depth look into a particular situation. In this study, the open ended questions will be able to provide an in-depth view into the perceptions and the attitudes of the respondents with respect to the rewards systems and the impact on the performance of the individuals in the BPO sector in India. The open ended questions were formed based on the literature review and the objectives of the study, as were the other questions in the questionnaire. Since there were not too many open ended questions in the questionnaire, an interview was not deemed to be necessary for the research (Saunders et al., 2007). Just like interviews, open ended questions can help gain valuable information which is relevant to the objectives of a study. 50 responses were not thought to be too large a number to analyse the two open ended questions in the questionnaire. Additionally, the separate questionnaire containing only the open ended questions was only proposed to be given to 3 respondents and as such, the time that may be taken to analyse the data may not be too high. As such, although it may not be recommended to use open ended questions for an exploratory research, the small size of the sample and the limited number of open ended questions makes the use of these questions viable in the research (Saunders et al., 2007). Also, in order to stop a single person from filling out more than one questionnaire, a check was put into place where the software would not allow a computer to take the questionnaire more than once. If anyone tried to retake the questionnaire, they would be presented with the message You have already completed this Questionnaire. 3.8 Data Analysis MethodsAnalysis of the data is perhaps one of the most important aspects of a study. A wrong analytical method may not be able to interpret the results accurately or may not even be able to measure what has to be measured. For this study, both qualitative and quantitative analyses are important. The reason is that both qualitative as well as quantitative data has been collected from the primary research. Distinctions between quantitative and qualitative data (Saunders et al., 2007, p.472)3.8.1 Qualitative AnalysisQualitative analysis is about conducting an in-depth analysis on any subject. It concerns views that are expressed by individuals. It concerns being able to organise the views of an individual into meaningful data that can be easily understood by the reader as well as maintaining objectivity the purpose of the research. It has been stated that qualitative data needs to be organised into themes or categories in order to be able to make sense of it. In this study, the qualitative data has been analysed by using thematic analysis as opposed to an analytical tool such as NVIVO or CAQDAS (Belk, 2006). In the thematic analysis, the challenge is to be able to find the themes that are significant to the analysis and the objectivity of the study (Saunders et al., 2007). Else, the analysis may not be insightful. The other choices of analysis which of qualitative data are grounded theory analysis, discourse analysis, and narrative analysis. However, the template or thematic analysis has been chosen as it is both easy to use as well as it is easier to understand. Moreover, owing to the small number of responses, it is relatively easier to follow a thematic analysis for the qualitative data in addition to the numeric data (Saunders et al., 2007). 3.8.2 Quantitative AnalysisQuantitative analysis, as the title suggests, deals with numeric or statistical data. Quantitative data in the raw form may not make sense to most people. However, when quantitative data is turned into charts and statistical representations, then it conveys a lot of meaning to the users (Saunders et al., 2007). The charts and statistics are especially useful to analyse a lot of data from several respondents. For this study, the since the questionnaires were administered through the Survey Gizmo website, the quantitative data was analysed (summarised) using the tools that were provided on the website itself. The tools that were provided on the website were extensive and useful to filter the results as well as to generate a summary of the findings in statistical formats. However, creating charts and tables is only a part of the quantitative analysis (Gill & Johnson, 2002). The interpretation of the numerical data was done by taking into consideration the objectives of the study and the knowledge gained from the literature review.3.9 Alternative MethodsIn addition to the methods that were chosen for the research, there were also alternatives that were available. The alternative choice for the sampling method would have been through convenience sampling. Convenience sampling could have been used by selecting the sample from the contacts sample frame (Saunders et al., 2007). There are several contacts who currently work in the Indian BPO industry. However, this sampling method has not been used as it may have been difficult to maintain the objectivity in the study. As such, the snowball sampling method was preferred. For the data collection methods, an interview may have also been considered for the study. However, the difference in geographical region may not permit the interviews to be conducted personally, even through Skype. As such, questionnaire was preferred to interviews and the need for an interview has been eliminated by selecting a small sample and incorporating open ended questions in the questionnaire. The dearth in time was another factor that did not permit the use of interviews for the study. If interviews were to be conducted, then the time would not have been sufficient to complete the analysis in time (Saunders et al., 2007). An alternative that was present to administer the questionnaires was through emails. However, the trouble with emails is that many of the emails get held up in spam and the intended recipient may not even receive the questionnaire (Kothari, 2004). Additionally, the analysis of the questionnaire through emails would have been more tedious than through online questionnaires. The data analysis could have been done by using SPSS and NVIVO (Belk, 2006; Saunders et al., 2007). SPSS could have been used for the statistical analysis and NVIVO could have been used for the open ended questions. However, for the purpose of this research, the statistical analysis and the summary was done by using the online analysis tools that were provided by the Survey Gizmo website. As for the open ended questions, the analysis was done by using a thematic analysis. There were not too many replies to render the thematic analysis too difficult or tedious to use for this research. 3.10 Validity and Reliability of the QuestionnaireSince the research has quantitative data that will be analysed, it is important to note that validity of the data will be important although the primary approach of the study is exploratory. Whereas for qualitative data the focus is not on the validity and reliability of the data, it is important in the quantitative data. With respect to this study, it can be said that the data is certainly valid as the survey questionnaire was refined before it was actually given to the respondents (Kothari, 2004; Saunders et al., 2007). Additionally, the questionnaire was undertaken by managers as well as team leaders in the BPO industry in India who said that the questionnaire was good and that it was a good tool to measure the performance in the BPOs with respect to non-monetary rewards before and after the recession. The purpose of the second questionnaire was to add qualitative depth to the first questionnaire (Saunders et al., 2007). The study is also reliable to an extent in the sense that if the questionnaires are administered to employees of the BPOs in India, similar results may be yielded. Additionally, the data collected was interpreted by using statistics and charts which suggests that the interpretation of the results is transparent (Gill & Johnson, 2002). The reliability in this case was not affected by participant bias as the participants were confident and carried out the questionnaires only upon knowledge that I would not have access to the names (or collect any personal data) of the individuals who completed the questionnaires and that the information will be kept confidential. As such, the responses from the individuals were without bias (Saunders et al., 2007). 3.11 Scope and Limitations of the StudyThe scope of this research is limited to just a few BPO companies in Bangalore which are Infosys, IBM Daksh, Hutchison 3G, and Hire at Ease. The employees of these companies were accessed through a primary contact in each of these companies (snowball sampling) (Saunders et al., 2007). The questionnaire links were passed on by these primary contacts to the other employees in the companies. It was seen that out of the 43 respondents, about 20 responses were from Infosys and as such, the results may reflect the views of the employees of Infosys more than any other company.Another major limitation of the study was that the proposed target of about 150 employees for the questionnaire was not achieved. Access was gained to only about 50 employees and responses were received from only 43 individuals. Out of the 43 responses, only 41 were useable. As such, the information that is analysed from the responses may not be able to be generalised to the entire BPO industry as was intended. However, this study will certainly serve as a starting point for anyone who may want to research on the topic of recession, rewards and performance in the Indian BPO industry. A challenge that faced me as a researcher was that even managers of the companies in the BPOs in India did not seem to have access to give out written documents on the letter head that I have conducted a questionnaire in the company.

3.12 ConclusionThe research methodology chapter has laid down the methods in which data was collected and has also laid down the methods in which it will be analysed. To summarise the methodology section, the sampling method used here was snowball sampling. The data was collected through primary research in the form of questionnaires which consisted of likert scales and open ended questions. The data analysis is discussed in the next chapter.

CHAPTER FOURDATA ANALYSISThis section describes the questionnaires analysis and the findings have been explained with the help of the discussion of the questionnaires. The discussion and the analysis of this research have been done on the basis of the objectives of the study. The data analysis has been clearly discussed in the light of the purpose of the research so that the data analysis will be clear.It has been evident from the past studies that the person do a job is to earn some money. So it can be viewed that the price is one of the main motivators and it cant be ignored as well (Torrington et al., 2008; Mullins, 2005).In the case of the employees they consider the rewards as very important. In the BPO sector in the Indian context the most of the employees dissatisfaction has been related with the salary packages (Beer, 2005; Logan, 2009). The main aim of this study has been to evaluate the role of the non monetary rewards on the Indian BPO sector in the context of the recent economic recession. In the case of the recession the non monetary rewards will be more important than the other forms. The non monetary rewards will influence the level of the attrition and will influence the performance of the employees (Emerald Publishing Group, 2008; BPOWatch, 2010). 4.1 Analysis and interpretation the Questionnaires4.2 Objective 1: To evaluate the intrinsic rewards role in the Indian BPO sector In the case of the intrinsic rewards the one of the influential aspect is the work emvironment.The employees morale will be increased if there is a good and motivating work environment (Torrington et al., 2008).In this research the working environment has been considered as a non financial rewards. In the questionnaire it has been seen that the employees morale and the performance has been influenced by the work environment. In the analysis it was also seen that the customers motivation and performance has not been so influenced by the work environment too. This may be due to the fact that the employees may be overlooked by the management of the call centre and the motivation of the employees will be less. The questionnaire has shown that the almost 80 percent of the employees has been of the view that the Indian call centre has been providing better environment of the working and the call centres in the India has been trying very hard to provide the employees with the better environment to work. So the employees performance can be increased by providing the better environment for the employees to work. In this research the employees will be viewed as an asset of the organisation so that the employees can enjoy the rewards that are of the intrinsic nature (Altman, 2009). If the employees are treated as a part of the organisation they will be satisfied and increases the employees performance. The employees have to feel a sense of belongingness with the organisation and once the employees fell that they are valued then they can better. This finding clarifies the Maslows needs theory. The questionnaire has also been showed that the employees in the study have felt a sense of belongingness in the BPO sector (Mullins, 2005).This has shown that the intrinsic rewards has been playing an important role in the BPO sector of the India. In the case of the employees to satisfy their needs and wants of the management has to listen to the employees first. So this show that the organisations have to assess the employees needs and wants related with the intrinsic rewards. Once the organisations know the needs of the employees then they can implement ways to satisfy the employees non financial rewards. In the questionnaire analysis it shows that the in the case of the Indian BPO intrinsic rewards the management has taken a bureaucratic approach. Sometimes the organisation will take measures to satisfy the organisation needs rather than the employee needs. So the approach of the management has been more favoured towards the Theory X style compared to the Theory X and theory Y of McGregor (Mullins, 2005).So the Indian BPO organisations has been giving more importance on the monetary rewards and this has been very evident from the literature section. In the case of the non financial rewards of the Indian BPO sector the employees are not so satisfied.The effective of the non financial rewards in the organizations can be measured by knowing the appreciation and the prise that the employees received from the organisation. The employees will be motivated when they get appreciation and praise from the management and they will feel a sense of belongingness. The questionnaire has been framed to analyse the employees appreciation and the praise that the organisation has given to the employees. This analyse will help to analyse the management effort that they put in motivating the employees. So the questionnaire analysis shown that the praise and the recognition have been among the important non financial rewards. The questionnaire data has been analysed to know the extent to which the management has been suing the measures to increase the non financial rewards to the employees. The level of the satisfaction towards the non financial incentives will influence their performance either positively or negatively. If the employees experience a positive aspect towards the management and the work then it will affect their work positively as well (Torrington et al., 2008). So this employees positive aspect can be increased but either praise or a pat on the back by the supervisor or the management employees (Bent et al., 2000). In the questionnaire data it has been seen that 35 percent of the employees has been not receiving any kind of the recognition and the praise from the employees while 55 percent of the employees has been receiving the recognition and the praise from the management. The neutral opinion has been stating that they may be either received any praise or recognition or not belong to a category of good workers.So this analysis shows that the praise and the recognition belong to the non financial rewards and it can influence the employees generally in positive way. This has been said because the employees who responded positively has also been favoured positively in the previous questions as well. The one main aspect of why the management has not giving any attention to the recognition and the praise to the employees is due to that the management usually gives the praise and the recognition to the employees in the training stage. The employees once have attained the standards of the performance then the management will not consider the employees to praise or recognise the employees (Mullins, 2005). In the BPO industry the praise and the recognisition has not been very easy and it has not been so effective in the Indian BPO industry. The satisfaction of the employees with regard to the non monetary rewards has been analysed in the questionnaire as well. The results has been pointed that the non monetary rewards has not been so effective as expected. The employees are not so satisfied the intrinsic rewards that have been given to them by eth Indian BPO managements. The employees who of the neutral opinion has expressed this view by hoping that the management will increase the non monetary rewards foe them. The most of the employees will be motivated by the promation,recognistion and the prise that they receives and this non monetary reward are the basic primary factor that motivates them. The Indian BPO sector has not been focusing more on providing better non monetary rewards to the employees and so the system is generally not so effective. The ineffective is in the sense refers to the fact that the non monetary rewards in the organisation failed to motivate the employees in the work. So it has been noted that the intrinsic rewards has not been so effective in the Indian BPO industry.4.3 Objective 2: To evaluate the role of the non financial rewards as the motivators in the BPO sectorMoreover, non financial benefits are very substantial for every individual. The basic reason for an individual to work is to earn money so that he can run his family. From the viewpoint of employee, any compensation that they receive for their work, that has monetary value, refers to non financial incentives. Moreover, normally salaries, bonuses or other bonuses that an employee receive is considered as non financial incentives by the employees. The non financial rewards have been seen as the most important motivators for the employees in an organisation. In the Herzberg two factor theory also it has been stated that the most important motivators wee the intrinsic. The monetary rewards are generally linked as the dissatisfies and it will cause the dissatisfaction at the work place. The one of the objective of this study was to analyse the role of the intrinsic rewards as motivators for the employees in the Indian BPO context. The finding has showed that the employees in the BPO sector have been dissatisfied with the level of the non financial rewards and they will not act as any motivators for them to perform better. The employees have been aware of the purpose of the researcher and so that they are aware that the questions will be related with this aspect too. The analysis of the questionnaires shows the dissatisfaction of the employees towards the non financial rewards while the non financial rewards can easily motivate the employees if implemented effectively. So this shows that the non financial rewards are not acting as any motivators for the employees.It has been seen that the existing intrinsic rewards are not making the employees motivated but to know the employees extent to which the non financial rewards can motivate them has been analysed in the questioannire.For this purpose the employees has been enquired about whether the monetary rewards can motivate them or not. The responses of the employees show that the employees performance has been increased due to the better pay or salry packages. This has been opposite to the Herzberg view that the intrinsic are the best motivators at the work place (Mullins, 2005).In the Indian BPO the employees will be more satisfied with the monetary rewards. So it has been seen that the best motivators in the Indian BPO industry are the monetary rewards. But the responses from the other questions also has been provide that the non financial rewards ca also motivate the employees.In the previous sections it was noted that the recognition and the praise has been considered as the primary non financial rewards. The employees will be highly satisfied if the management will recognise the employees and appreciate them. So it shows that the employees will be a greater level of motivation with the intrinsic rewards. The employees do not felt the intrinsic rewards in the organisation and so the existing rewards in the organisation will not increase the performance level. Other than the recognition and the praise the employees also value the promotion as one of the important motivational aspect. The employees has also seen that if they are given chance to grow in the organisation they will be highly motivated.Employees are motivated at a higher level through monetary or tangible non financial benefits as per the classical motivation thinkers, whereas employees are motivated to a great extent through intrinsic non financial benefits as per the motivational thinkers who are process oriented (Torrington et al., 2008). According to Ben et al., non monetary non financial benefits which are intrinsic in nature motivates the employees at greatest level in several situations. Such benefits includes praise, recognition as well as appraisal. As stated by DeCenzo et al. (2010). In modern organisation in can be seen that non financial incentives without monetary value motivates and encourages the employees to be engaged in their work to a great extent which is equivalent to the motivation from monetary non financial benefits which encourages employees to a higher extent as per traditional thinkers. Working condition in BPO industry of India, which comes under non monetary non financial benefits, is one of the vital factor that is eminent for employee engagement and a major reason for employee attrition is a proof that employees are driven to a great extent because of non monetary non financial incentives.

4.4 Objective 3: To analyse the effect of the Intrinsic rewards on the engagement and the retention of the employees on the time of recessionAll the employees were choosing a job where they have job security as well as balanced salary during the time of recession, which was significantly difficult looking to the economic conditions. The rate of attrition has shown a downfall during the period of recession, thereby showing employees stability in their respective jobs. According to Blyth (2008), employees were not much concerned about the salary aspect during recession as they were looking for job stability. Moreover, there was a significant cut on employee benefits as well as other monetary incentives as a result of recession, however, it did not raise the level of attrition in BPO sector. Thinmmaya & Padmapriya (2008), mentioned that the rate of attrition showed a downfall during recession as the employees were compelled to stay put. Furthermore, employees concern about job stability and stable income were the main reason that lead to fall in attrition rate during recession. Furthermore, this aspect of job stability, amongst the employees, increased the bargaining power of companies in this sector, nevertheless, the fight to gain the most productive employees was still prevailing between organisation (Kim & Won, 2007). The frontline employees plays the vital role for the organisation in the sector of BPO, as the customers contacts them directly regarding any issues with the products or services as well as maintaining bills and other problems that customer faces. The main aim was to analyse the impact of monetary rewards on the engagement and the retention of the employees. The most of the employees opinion in the questionnaire has shown that the non monetary has been influencing in the customer retention. If the employees has been not recognising in the organisation they will feel not committed with the organisation and the customers will not be satisfied. It can also affect the engagement of the employees as well.4.5 ConclusionThe primary conclusion that can be drawn from the analysis of the questionnaires is that the management in the BPO industry in India does not seem to provide employees with adequate non-financial rewards. As a result, the performance of the employees is affected and this also leads to increased attrition rates. Furthermore, it is seen that the Indian BPO industry may not have faced the severity of the recession. Detailed conclusions to the analysis and discussion are provided in the next chapter. CHAPTER FIVECONLSUON AND RECOMMENDATIOSThe basic reason for an individual to work is to earn money so that he can run his family. From the viewpoint of employee, any compensation that they receive for their work, that has monetary value, refers to non financial incentives. Moreover, normally salaries, bonuses or other bonuses that an employee receives are considered as non financial incentives by the employees. Moreover, it is not just monetary non financial incentives that has to be considered in pay system, but also the non monetary non financial benefits has to be taken care of as they are becoming more vital in modern business organisation. While managing the non financial incentives, the manager has to consider all the employees needs and expectations from the organisation, in order to carry out the management effectively. Due to fluctuations in the economy, money gains more importance when it comes to incentives. Moreover, in modern organisation, money is not the only factor that motivates many employees. Many companies in the sector of Indian BPO has started talent management so as to retain competitive employees, which again is a part of strategies of intrinsic non financial incentives. Talent management is a tool used to increase employee engagement which would give them a sense of staying with the company and thereby retaining them. Apart from monetary incentives i.e. money, there are many non financial benefits that motivates and raise employee engagement in workplace, such non financial benefits consists of paid holidays, insurance cover for families, child care, proper balance between professional and personal life, which in turn helps the organisation to retain competitive employees for a longer period of time. Overall, it can be noted that from the view point of employees the satisfaction level is less through the packages of non financial incentives. Employees are now more conscious about the working conditions that an organisation provides to them, wherein, better environment in workplace will lead to higher engagement level. Thus monetary non financial incentives are not the only aspect that motivates employee engagement, but working conditions also has to be considered by the organisation. In modern organisation in can be seen that non financial incentives without monetary value motivates and encourages the employees to be engaged in their work to a great extent which is equivalent to the motivation from monetary non financial benefits which encourages employees to a higher extent as per traditional thinkers. Working condition in BPO industry of India, which comes under non monetary non financial benefits, is one of the vital factors that are eminent for employee engagement and a major reason for employee attrition is a proof that employees are driven to a great extent because of non monetary non financial incentives. One of the most customary type of non financial incentives that an employee expects from his organisation, are the monetary non financial incentives. Nevertheless, many companies were unable to provide monetary non financial incentives to their employees as the turnover of the companies went down due to the current recession in the economy. The salary offered by the companies in the Indian BPO industry is one of the major factor that fascinates many employees. All the employees were choosing a job where they have job security as well as balanced salary during the time of recession, which was significantly difficult looking to the economic conditions. The rate of attrition has shown a downfall during the period of recession, thereby showing employees stability in their respective jobs. Employee engagement plays a significant role in enhancing the culture of organisation in events of critical factors of business sector. The business with higher level of employee engagement are the ones to be more successful and such engaged employees do not leave the organisation. The conclusion of this research have been done on the basis of the objectives of the study. To evaluate the intrinsic rewards role in the Indian BPO sector In the case of the intrinsic rewards the one of the influential aspect is the work emvironment.The employees morale will be increased if there is a good and motivating work enviro