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Abstract
In any organization employee motivation is the key factor for organizational performance. The Purpose of the study is to check the motivation level of the employees in their work performance and how we make them more motivate so they we give best performances in their jobs and become an efficient part of organization. The Primary Data is collected from AL-SHIRKAT INDUSTRIES (PVT) LTD and through internet. All respondents are from Al-Shirkat Industries to check their motivation level. Analyzing of data is through SPSS software to check different statically tests. The results shows that the organization need employees motivation to increase its profitability because if every part of organization is best will make the organization best in all. The Conclusion is clearly identifying the need of motivation level in organization to get the growth and profitability of organization which need to grow the motivation level of employees. In limitations the time is limited because of presentation of the research paper and the resources and in range of the management of the industry. The Keywords are the employees motivation give best result on productivity and increase organization profitability.
1. Chapter-I Introduction
1.1 Background of the Study In this world the business today is very hard to meet the challenges of competition. Many factors affect the performance and productivity of the organization and also make organization business grow in the market . Organization performance depend on varies factors in which important labor ? employees, machinery and material. If we focus in whole process of organization work the employees are the central point who are controlling the material and machineries and making quality of outcome of the organization. So for making the employees to do the best work the employees need to be highly motivate by their supervisors and top management. The top management should consider about the incentives of the employees to get best performances in organization . Employee motivation give long-term benefits by increasing in productivity. A motivated employee is like a fix asset who reflect the image of the organization in maintaining and strengthening its business and revenue growth. 1.2 Importance of the Study The importance of the study shows the motivation level in the private organizations which give browed knowledge to every organization to make their challenges meet and make them competitive in this fast going world. Also they make acknowledgement that how to manage employees to make them efficient and effective work and increase the organization performance. 1.3 Scope of the Study The Scope of the study of this research will give lot of benefits to the employers of the private organizations and also make mind of employees to have emotions for their organization. This research will give acknowledgement to those owners and managers who dont care of there employees and want best performances by x and y theory.
1.4 Objective / Purpose of the Study The Objective / Purpose of the study of this research is to identify the factors that promote positive motivational behavior among employees. This in turn would improve customer service, effective time management in each organization. 1.5 Research Problems The Problem of the research is employees do not give their performances in the organization and do not carry out their duties and responsibilities perfectly. To identify the effect of motivation which make employees to give better performance in organization.
1.6 Limitation of the Study The limitation of the study can be briefly stated in following points: 1. Title of the questionnaire (about Motivation) so that the respondents thought that they should be affected by the motivation system before filling the questionnaires. 2. The length of the questionnaire around 17 questions. 3. The collective respondents will be analyzed and the results of the questionnaire will be documented. 1.7 Research Question The research Question of this research paper is What is the effect of motivation on employees in private organization?
incentive programs to improve construction labor productivity, reinforcing Maloneys (1982) thesis of driving forces that led to productivity improvements. Autonomy and comradeship (Edwards and Eckblad, 1984) are also, found to be important aspects that add to the way construction workers are self-motivated about their work. However, much work in linking motivation and productivity relied on Hertabergs sample involving mainly white-collar professionals (Mullins, 1996). Furthermore, Hofstede (1980) decried such motivational theories as merely point made about the ad nauseam emphasis on the managerial perspective in the quest to improve productivity. John Borcherding and Clarkson Ogelsby (1974) discovered that productive job creates high job satisfaction while nonproductive job(one which fall behind schedule) produce dissatisfaction at all levels of the management worker chain. The relationship is believed to be due to the very nature of construction, thus different from the one found in an office or factory setting which states that high job satisfaction leads to greater productivity. In construction, a worker, through his own efforts produces a highly visible, physical structure in which great satisfaction comes from completion. Therefore, jobs that are well-planned and run smoothly produce great satisfaction while jobs with poor management (with scheduling and planning problems), create dissatisfaction. This illustrates the relationship between job satisfaction and productivity since; well-managed jobs are generally more productive. A close review of all theories of human motivation reveal a common driving principle that people do what they are rewarded for doing. In general, the theories on motivation can be classified as: employee needs motivation through goal-setting, employee reward/incentives and reinforcement. According to a recent poll conducted by the Gallup Management Group only 30% of U.S. employees are fully engaged in their jobs. Improving employee engagement can increase productivity and profitability while also reducing employee absenteeism and turnover. According to Ted Marusarz, Hewitt Associates, prior to the 1990s employee surveys were focused on employees did not necessarily produce the type of performance that helped organization to succeed. Marusarzs comment echoes Frederick Herzbergs theory of motivation which states that the factors which motivate people at work are different to and not necessarily the opposite of, the factors which cause dissatisfaction. Herzberg claimed that positive hygiene factors such as work conditions and salary simply satisfy basic employee needs, whereas motivators (e.g. achievement and recognition) encourage employees to work above and beyond the minimum requirements. In 2006, the HR Daily Advisor reported that 89% of employers think their people leave for more money, while only 12% of employees actually do leave for that reason.Compensation alone is not enough to keep the highly skilled motivated and experienced workforce your business needs to excel (Greenburg, 2008). In a four years analysis of more than 100,000 employees worldwide, the Corporate Leadership Council discovered that while workers join companies for rational motives (better compensation, benefits and career opportunities), they are and work hard for emotional ones. Jean Martin (Lawler 2008 p.51). The Gallup Management Group (reported in Dernovsek, 2008) showed that improving employee engagement is important engaged employees have: 51% lower turnover 27% less absenteeism 18% more productivity 12% higher profitability Engagement is about motivating employees to go the extra mile in the workplace. It is about encouraging employees to have a passion for their work, and identifying the organization as more than a place to earn money. A recent Harvard Business Review article explained that employees are motivated by jobs that challenge them and enable them to grow and learn, and they are demoralized by those that seem to be monotonous or lead to a dead end (Nohria et al, 2008, p. 81). According to Tim Rutledge, owner and publisher of Mattanie Press and author of Getting Engaged: The New Workplace Loyalty, truly engaged employees are:
Attracted to and inspired by their work ( I want to do this). Committed (I am dedicated to the success of what I am doing). Fascinated (I love what I am doing). The concept of employee engagement was first developed in response to increasing globalization (Thereas Welboure, University of Michigan). Such global competition forced businesses to become more flexible in responding to employee needs. More recently, Paula Ketter (2008) attributed the rising interest in employee engagement to the dotcom bubble burst in 2000, to dip, and the subsequent rise in unemployment. Furthermore, according to W.Stanton Smith (2008), a new generation of workers, the Millennials, is entering the workforce with a desire for long-term employer relationships on their own terms. This new group is shaking up the workforce and demanding more from their employer than simply financial compensation for their work and ability to be on-call at all times thanks to communication technologies. According to Towers Perrin, employees are more interested in talent friendly organizations that offer a good work-life balance than those offer high salaries. As the economy changes and employee demands become more specific, employeeengagement provides as opportunity to increase productivity and in turn profitability while satisfying employee needs. Engaged employees perform 20% better than non-engaged employees (Gallup Management Group). Offices with engaged employees are 43% more productive (The Hay Group) Employees with the highest percentage of engaged employees, on average,increase operating margins 3.64% and net profit margins by 2.06% (Towers Perrin_ISR, June 2007). Organizations with the lowest percentage of engaged employees showed declines of 2% in operating margins and 1.38% in profit margins (Towers Perrin_ISR, June 2007). The Best Companies Guide UK 2008 highlights eight possible organizational factors that can improve employee engagement: Leadership: good leadership leads to a happy team. My Company: how much people value their company, and are proud to work there. Personal growth: whether employees fell challenged by their job. My Manager: the employee-manager relationship. Giving something back: community service and volunteering opportunities Fair deal: how well employees are treated in terms of pay and benefits compared to similar organizations. Wellbeing: balance between work and home life.Two of the highest rated best companies to work for, Foreign Currency Direct and Jenrick Recruitment Group focused heavily on the well-being and satisfaction of their employees while also creating a strong sense of team within the workplace. According to the Best Companies Guide 2008: 100% of employees at Foreign Currency Direct agreed that their team is fun to work with. 96% disagreed that they stress related symptoms in the last 12 months because of their job. Similarly at Jenrick Recruitment Group: 98% of employees agreed that they felt a strong sense of family in their team and 93% disagreed that their health was suffering because of their work. Another exceptional example of employee engagement success involves McDonalds UK, which recently won the Outstanding Employee Engagement Strategy Award presented by Insala at the HR Excellence Awards 2008. In an effort to eradicate the negative public perception and reputation of working for McDonalds, the HR team implemented a multi-pronged reputation program including external press and a poster and campaign mocking the McJob nickname, while also revamping internal communications in order to reinforce their commitment to staff. A new intranetallowing staff to see skills gaps and offer access
to learning content contributed to the rise from 60:40 to 75:25 in favor of McDonalds as an employer reported by BBC News. Additionally, prior to the campaign only 51% of staff said they would recommend working for McDonalds, as evidence of the success of the program, today 86% would recommend the job.
of market competition. There is no doubt that, independently of technological evolution, cooperation is crucial if acceptable levels of productivity growth are to be generated at the point of production. Successful business owners are those who know where to apply their resources for achieving the greatest positive impact on business performance. Traditionally, this exercise in strategic allocation of resources has treated employee management primarily as a costcontainment challenge rather than a potential driver of improved profit and revenue. Perhaps this has been because measuring the return on investment in effective employee management practices is more difficult than calculating the saving from, say, reduced paperwork. Over the past 10 to 15 years, however, a growing body of evidence has shown that investing in employee management not only delivers administrative cost savings but is in fact one of the best performance enhancing investments a company can make. Research overwhelmingly indicates that effective employee management can and does lead to a competitive advantage in the form of a more motivated workforce and by extension improved operational and business performance.
Figure No. 1 - The Two Sides of Human Resources By sharpening your focus on the relationship between employee management and business performance, you will be better equipped to: Identify practice that will maximize the return on your investment in employee management practice and achieve the positive business results experienced other companies. Strengthen the quality of the one business variable that no competitor can duplicate the quality and motivation of your employees. Align your people management practices with your business objectives. Set up and track key employee-related performance measures. Adopt the tools that are available to you for the managing your employees. The purpose of employee management, then, is to solidify and enhance that advantage through a systematic program to find, motivate, develop and retain your employees more effectively than your competitors. If your company adopts employee management practices that are superior to those of your competitors, it is likely that you will always have a higher quality workforce, leading to a sustained competitive advantage. This is not to say that good people who are well managed can overcome poor products or services, but in the presence of quality and services, well managed people can be the difference between a successful company and one that is not competitive. Effective employee management can positively impact your companys performance; you must determine which management practices will meet your needs. Obviously, the specific
components of human resource management needed for your company are unique to you and your business objectives. But research has shown that it is a set of employee management practices working together, rather than any single practice alone, that leads to higher performance. Each of these components of employee management is important, and all of them working together toward the accomplishment to your goals will lead to the best performance outcomes. For example, an initiative to attract high quality employees to your business will be much more effective if it is coupled with quality training, development, compensation and management once the new hires arrive. Heres how the basic elements of a well-designed employee management program work:
Figure No. 2 - Employee Management Practices Hiring practice ensure that employees hired for different positions have the necessary skills and background to be successful in their individual jobs. Evaluation practices ensure that the employees are being provided with useful feedback about their performance. Compensation practices provide employees with what they consider to be fair pay for their work. Training and development practices provide employees with opportunities to grow through job training, job rotation and promotions.
practices and outcomes such as Profit, sales, revenues, sales growth, profit growth, profit margin, and return on assets and cost reduction A previously cited study in the employee outcomes section found that in addition to lowering turnover rates, service companies with effective employee management programs also experienced higher sales growth. Specifically, implementing well designed employee management programs resulted in an increase in sales of 16.3%. Another study cited previously for its effect on turnover also found that significantly improved employee management practices resulted in an average increase in sales per employee of about $27,000 an average increase in firm cash flow per employee of about $3,800 and an average increase in the market value of the firm per employee of about $18,000.
3.2 Sampling
The study should be conducted with people from different locations. The questionnaires were give to 70 workers in AL-SHIRKAT INDUSTRIES who working in various departments with different job responsibilities and organization position. The sample selection is on random basis. the nature of the sample are the employees of the industries who are key responsible for the production.
3.3 Instrumentation
The instrument use in this research is 5-likeret scale for getting the best primary data from the respondent. By using Questionnaire the data become more reliable and give close result of the testes applied for research.
Table No.1 - How long have you worked with the present organization 23
The research was directed to find how satisfied the respondents are with their present organization and results collected indicated the following: Very Satisfied = 3(11.5%) Satisfied = 25 (61.5%) Neutral = 8 (19.2%) Dissatisfied = 2 (7.7%) Very Dissatisfied = 2 (1.9%)
Figure No.02 - Supervisor / Team leader support To the inquiry whether the supervisor / team leader offer valuable information on how increase productivity. Results obtained indicated that 34 respondents (62.96%) were in strong / somewhat agreement compared to 6 respondents (11.11%) who disagreed that management, supervisor and team leader offer great desired level of support. 13 respondents (24.07%) were unable to voice their convictions either positively or negatively.
Table No.3 - How would you rate your job satisfaction? With reference to job satisfaction in terms of the level of recognition employees 3respondents (56.60%) were satisfied as against 8 respondents (15.09%) who were no presently satisfied with their work.
Table No.4 - How satisfied are you with the level of training and development received? Whether the levels of training employees receive supports in the development of job handling was inquired into and the response indicates the following. In respect of initial training and development which employees receive 32 respondents (59.26%) expressed satisfied while 21 respondents (38.89%) expressed dissatisfaction. As regard the ongoing training, 31 respondents (57.41%) expressed satisfied while 22 respondents (40.74%) expressed dissatisfied
Motivation
JobSatisfaction
Compensation
Benefits
Security
PerformanceApprisal
70 ** Correlation is significant at the 0.01 level (2-tailed). * Correlation is significant at the 0.05 level (2-tailed).
Frequencies
Statistics JobSatisfactio n 70 0 Compensa tion 70 0 PerformanceAp prisal 70 0 0
Benefits 70 0
Security 70
Motivation Cumulative Percent 5.7 18.6 30.0 61.4 87.1 94.3 100.0
Valid
Frequency 4 9 8 22 18 5 4 70
Valid Percent 5.7 12.9 11.4 31.4 25.7 7.1 5.7 100.0 JobSatisfaction
Frequency Valid 6.00 9.00 10.00 11.00 12.00 13.00 14.00 15.00 17.00 Total 4 4 10 13 8 9 9 9 4 70
Percent 5.7 5.7 14.3 18.6 11.4 12.9 12.9 12.9 5.7 100.0 Benefits
Valid Percent 5.7 5.7 14.3 18.6 11.4 12.9 12.9 12.9 5.7 100.0
Cumulative Percent 5.7 11.4 25.7 44.3 55.7 68.6 81.4 94.3 100.0
Valid
4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 Total
Frequency 18 14 5 4 4 8 4 4 9 70
Percent 25.7 20.0 7.1 5.7 5.7 11.4 5.7 5.7 12.9 100.0
Valid Percent 25.7 20.0 7.1 5.7 5.7 11.4 5.7 5.7 12.9 100.0
Cumulative Percent 25.7 45.7 52.9 58.6 64.3 75.7 81.4 87.1 100.0
Security
Regression
Variables Entered/Removed(b) Variables Entered Performanc eApprisal, Security, JobSatisfact ion, Compensati on, Benefits(a) a All requested variables entered. b Dependent Variable: Motivation Variables Removed
Model 1
Method
Enter
Model Summary Adjusted R Square .371 Std. Error of the Estimate 1.18436
Model 1
R .646(a)
R Square .417
a Predictors: (Constant), PerformanceApprisal, Security, JobSatisfaction, Compensation, Benefits ANOVA(b) Sum of Squares 64.170 89.773
Model 1
df 5 64
F 9.150
Sig. .000(a)
153.943 69 a Predictors: (Constant), PerformanceApprisal, Security, JobSatisfaction, Compensation, Benefits b Dependent Variable: Motivation Coefficients(a) Unstandardized Coefficients Model 1 B -3.001 .247 -.018 .199 .577 .055 Std. Error 1.208 .060 .076 .065 .112 .096 Standardized Coefficients Beta .427 -.029 .387 .599 .079 t -2.485 4.146 -.231 3.056 5.133 .577 Sig. .016 .000 .818 .003 .000 .566
5. Chapter-V Conclusion
5.1 Conclusion
Through the study it is clear that employees motivation give direct effect on organization productivity and increase organization revenue generating function which increase organization profitability. An employee who is highly motivated will carry out his/her duties in best performing level and fulfill his/her responsibilities in best way. From employees good performance the organization will grow its productivity level to meet different challenges. The essence of this study shows that the motivation of the employee has various advantages to the employee in which we include loyalty of the employee, best performances, productivity, profitability trust his / her organization, supervisor and top management and so on. In this 21st century of competitive world it is very important to take best performances from employees to become successful organization which need high level of motivation.
6. Chapter-VI Recommendation
6.1 Recommendation
My Recommendation is to motivate the employees in the organization to get best productivity and profitability. Because if the performance of the employees are best will direct effect on the performance of the organization which may cause very positive result to the organization in various manners.