A STUDY ON EMPLOYEE MOTIVATION CHAPTER-1

INTRODUCTION The project work entitled a STUDY ON EMPLOYEE MOTIVATION with special reference to Hyderabad Industries Ltd; Thrissur is mainly conducted to identify the factors which will motivate the employees and the organizational functions in Hyderabad Industries Ltd, Thrissur. Managements basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned with organizing human resources in such a way to get maximum output to the enterprise and to develop the talent of people at work to the fullest satisfaction. Motivation implies that one person, in organization context a manager, includes another, say an employee, to engage in action by ensuring that a channel to satisfy those needs and aspirations becomes available to the person. In addition to this, the strong needs in a direction that is satisfying to the latent needs in employees and harness them in a manner that would be functional for the organization.

Employee motivation is one of the major issues of motivation to enthuse the employees to follow them. Hence this studies also focusing on the employee motivation among the employees of Hyderabad Industries Ltd. The data needed for the study has been collected from the employees through questionnaires and through direct interviews. Analysis and interpretation has been done by using the statistical tools and datas are presented through tables and charts. 1.2 RESEARCH PROBLEM

The research problem here in this study is associated with the motivation of employees of HYDERABAD INDUSTRIES LIMITED, Thrissur. There are a variety of factors that can influence a persons level of motivation; some of these factors include 1The level of pay and benefits, 2.The perceived fairness of promotion system within a company, 3.Quality of the working conditions, 4.Leadership and social relationships, 5.Employee recognition 6. Job security 7 career development opportunities etc.

Motivated employees are a great asset to any organisation. It is because the motivation and Job satisfaction is clearly linked. Hence this study is focusing on the employee motivation in the organisation. The research problem is formulated as follows: What are the factors which help to motivate the employees?

1.3 SIGNIFICANCE OF THE STUDY The study is intended to evaluate motivation of employees in the organization. A good motivational program procedure is essential to achieve goal of the organization. If efficient motivational programmes of employees are made not only in this particular organization but also any other organization; the organizations can achieve the efficiency also to develop a good organizational culture. Motivation has variety of effects. These effects may be seen in the context of an individuals physical and mental health, productivity, absenteeism and turnover. Employee delight has to be managed in more than one way. This helps in retaining and nurturing the true believers Who can deliver value to the organization. Proliferating and nurturing the number of true believers1is the challenge for future and present HR managers. 1HRM Review (The ICFI University Press) July 2008

2 This means innovation and creativity. It also means a change in the gear for HR polices and practices. The faster the organizations nurture their employees, the more successful they will be. The challenge before HR managers today is to delight their employees and nurture their creativity to keep them a bloom. This study helps the researcher to realize the importance of effective employee motivation. This research study examines types and levels of employee motivational programmes and also discusses management ideas that can be utilized to innovate employee motivation. It helps to provide insights to support future research regarding strategic guidance for organizations that are both providing and using reward/recognition programs. 1.4 OBJECTIVES OF THE STUDY

1.4.1 Primary objective 1. To study the important factors which are needed to motivate the employees.

1.4.2 Secondary Objective. 1. To study the effect of monetary and non-monetary benefits provided by the organization on the employees performance.

2. To study the effect of job promotions on employees. 3. To learn the employees satisfaction on the interpersonal relationship exists in the organization. 4. To provide the practical suggestion for the improvement of organizations performance.

1.5 RESEARCH HY

The Effects Of Motivation On Performance

Findings Task 2- Write a Report on the effects of Motivation on Performance Research people's attitude to work and factors affecting their motivation by constructing a questionnaire and conducting a small survey. You should aim to distribute your questionnaire to at least 5 people within your organisation. Gather information on what motivates individual performance and identify attitudes to work by interviewing an employee in-depth and comparing their attitudes with your own. Relate you findings to motivation theories and provide a description of the motivators appropriate for different types of individual performance. Andrew and Robertson: An Introduction to the Business Objectives Andrew and Robertson have started put life as property mangers in 1887. Managing properties on behalf of owners. Southwark Council also contracted out housing management for a trial period in the 90's in which Andrew and Robertson's partly participated. In the 1960's Andrew and Robertson expanded into auctioneering. The object of this section of the business aims to sell houses at auctions 4 times a year. However 1980 prior they only had two actions a year. The business aims to make a profit for the four senor partners. The business has no obvious intentions to float on the

stock market. The partnership has currently invested in a new phone system and computer network for one of its three branches. This according to an associate partner is the partnership attempting to modernise the old fashion approach to the business currently used by managers. Serves Andrew and Robertson's serve the clients who own the properties, which they manage. The management also serve their auctioneering arm that sells properties for the clients of the property-managing arm who wish to sell their properties. Motivational Procedures Andrew and Robertson's have no written procedures however there are a number of unwritten procedures, which are used. These procedures include: Staff/Management association (This is not like by a small minority of staff ) Close quarters arrangements (Putting desks in close proximity for communication means) Appraisal Meetings (Token) Staff Management association This is the system in which higher level management work along side their employers. In the hope that the bond between the lower level workers and management will form, thus allowing the effectiveness and experience to watched and carried on to staff that are not as skilled. This method also serves to lower the amount of effort put into motivational practices. Close quarters arrangements This method thought not intended is highly effective in motivating staff. When I worked at Andrew and Robertson's I noticed that the environment was extremely helpful. People were always in a helpful mood and the method of forcing employees into helping each other via the forming of friendship and mutuality. Appraisal Meetings (Token) As stated above the appraisal systems are seen as token in the eyes of most employees who work for Andrew and Robertson's. This is partly because their views are listened to but ignored. (Which will be talked about later in the report) The Office Environment Environmental Operations Environmentalism has been fully adopted by Andrew and Robertson's and the impact of production of the environment has been reduced wherever possible. As stated above Andrew and Robertson's adapts a lot of environmental policies, which all departments and units must follow. Which adds value to the company's environmental image. Andrew and Robertson's one of the biggest private project undertaken in United Kingdom since 1997 (Poverty in London). The company's participation in the charity work increased sales for the year and increased the long-term "perceived value" of the company. As well as helping outside organisations, this activity also gave Andrew and Robertson's employees a feeling of trust and pride to work in an Environmentally friendly company Employee's General Views In the questionnaire, which I typed, many rated the office environment from 5 to 7(N0.5), (6 out of 9). But felt that they were listened to in appraisal but their views were ignored (No.17), (7 out of 9). This was one of the major "stifles"

of the Andrew and Robertson staff. What is Good? In the questionnaire, which I designed many employees said they did work over their contracted hours (N.02). Question number three also asked how long the employees had been working for Andrew and Robertson's. The answer to this question was that 3 out of the nine question said they had worked here for at least 10 years. In many companies in today's modern environment stress is linked to overtime and boredom. In Andrew and Robertson's employees did not have to work overtime, instead they chose to work overtime (some for Free) and explained to me that the environment was so productive some viewed it as a second home. Which is why a biggish number of questioned staff have worked for Andrew and Robertson's for over ten years due to the reasonable pay and working hours. What are the Bad points? The office environment is generally very good, however the main worry of the majority of workers is the Workload, which from my questionnaire shows 6 out of 8 people classed their workload as Large or Extremely Large (No.08). After some advanced investigations I found that the employees did not associate their pay with the amount of work, which was completed. After observing the subjects I found out that sometimes of the large workloads angered them. But surprisingly times when they had no work to do angered them more. The generally delegation of work was poor as many people only delegated minor tasks and did not utilise (PR's) Personal Assistants fully. Techniques Used As a general rule the one factor that adds value is security, which is why many businesses have an IT Mission Statement. Having an IT Mission Statements available to the public can increase value, because customers will be assured that the company is looking after their credit details securely. The recently drawn-up IT mission statement for Andrew and Robertson, (Which is set out below), also helps to motivate its staff because the Technology deficiently, which exists was de-motivating employees. Within Andrew and Robertson's there are three branches. The modestly new Auctioneering hand of the company is fully computerised and trained. With the new Structure for computer training coming into force the de-motivational effect of the Auctioneering hand will be balanced out. As well as providing an additional link through the extra computer training, which will be taking place. In the questionnaire, which I designed all of the staff pointed out that the company organised a Christmas party every year (9 out of 9). This according to an associate partner is a motivational method, which involves allowing the employees to integrate into a whole, so that they will work toward the company's ultimate goals and aspirations by working together. Not Used Sales of each brand relative to each country Andrew and Robertson's have its own MIS (Management information Systems) Network, which integrates communication systems and

ATM communication systems (Internal) Instant Information Access), between the different operations. This is another Management Information System (MIS). Which adds value to the production procedure. In United Kingdom itself, Andrew and Robertson's has built a data storage centre with information on all areas including: Employees wages Historic sales etc. Although the system is not available to the low level workers. In the questionnaire, which I used, question No.17 (In your appraisals are you views listened to and passed on to management?). The answers were: I am listened to 1 I am not listened to o I am listened to, but my views are ignored 7 I am not listened to, and my views are ignored 1 However if the MIS system was available to the low level employees then they could see some of the ideas, which were supposedly being ignored, were not. This has a demotivational effect, which could be avoided. If the MIS was available to employees or even if they were told by a supervisor, which they are not. Staff /Integral or Not? Enhanced Expro Central to this ongoing improvement process is the continual integration of enhanced Expro into Andrew and Robertson's. Enhanced Expro promotes the culture in which staffs are empowered and take responsibility for their individual activities. This culture creates the correct environment for the potential of the improvement process to be maximised through the participation of Andrew and Robertson's workforce. As well as improving motivation Expro also improves efficiently and increases the quality of them alcohol produced. Enhanced Expro does not benefit suppliers or customers directly. It is designed to empower employees, and make them feel needed. When the employees of Andrew and Robertson's feel as part of the company the suppliers will have more parts ordered and customers may have a wider choice if the company develops their range. Within the partnership of Andrew and Robertson's staff are integral. During my time at Andrew and Robertson's I found no evidence to suggest that staff were not integral. Improvement Process The planning and improvement cycle is an example of an improvement process in Andrew and Robertson's. This process diagrammatically is relatively self-explanatory and is ' managed', produced and implemented by the Andrew and Robertson's. The process regulates continual improvement and also improves production efficiently. I have also found that the Value Creation Areas (Management Philosophy) for Andrew and Robertson's, don't change frequently, the KPI's (Improvement Teams) required to monitor and evaluate performance are reviewed at least annually to ensure focus on the essentials success factors. Which will further more increase the company's competitiveness and quality of its produce. Action areas (value drivers) are identified to lessen the gap between performance and targets,

benchmarking has been one of the specific tools used. The information from benchmarking and gap analysis is used to identify targets and stretch targets (Most of staff performance is measured by the KPI's targets, relevant to their tasks). Improvement plans are developed to ensure that the 50/50 targets are met. They also support the pursuit of the 90/100 stretch targets. The improvement plans are put together through workshops, improvement teams but mainly by workforce participation in identifying new improvement activities. All on going improvement activities are monitored. Each improve activity is logged in a database. The integrated to planning control group (IPCG) reviews the database monthly. When an activity comes to an end it is close out. The progress of the improvement drive is documented via quarterly reports and a live improvement Dot Plot reports progress in the BOR. Freedom Staff views more or less freedom? The staffs that are employed by Andrew and Robertson was a large amount of freedom in completing tasks, which they undertake and feel they are allowed too much freedom. A downfall of this often underestimated and unutilised perk is that it leaves staff needing stability. However the opposite has happened at Andrew and Robertson's. The staffs have flourished under the freedom and feel that they (as stated above) can call their workplace and second home. Equal Opportunities Males to Females ratio In the questionnaire, which I designed the number of females who completed the questionnaire and returned compared to the men was 6 to 2(No.1), however in the actual business out of 34 employees 21 are women and 13 are women. This is partly due to the fact that there are a not of PR's (Personal Assistants) and clerks, which all happen to be women. The fact that the above jobs were all taken by women is not surprising since the jobs are traditionally taken by women and the higher managerial posts are all taken by men but for two positions at the auctioneering department. This is not as expected a motivational factor since there is an equal opportunities policy being firmly used and improved. After talking to many women in the work place I have discovered they are not at all unhappy and elated with the opportunities, which they have for progression. The Generational Gap Four out of the seven people who answered my questionnaire were aged over 50 years. Although the vast majority of the staff are in their mid 30's and early 20's. These figures show a vast difference in the age group employed in Andrew and Robertson's. The older members of the employees were the partners and other older members of staff worked in processing (accounts service). This age gap is motivating as many older members of staff can pass on knowledge to the younger generation. Management Philosophy Old Fashion or New Age The partnership of Andrew and Robertson's has four partners all

over the age of 40 years. Which is one of the main reasons for why technological development has been so slow. However the partnership f Andrew and Robertson's have an up and running Management Improvement Drive. Including IT development and its new integrated ATM communications system. Good Points Improvement Management Drive Andrew and Robertson's also aim to add value so management processes can be developed. The Andrew and Robertson's plc Leadership Team review all the improvements initiatives and decide which ones to pursue. Action is then taken to implement the improvements and progress is monitored. Feedback is given to the Integrated Planning Management Group (IPMG), which is made of planning personnel. Because the Improvement Teams are internal factors for change in production they can monitor all goingons via an extensive database, which is up-dated on a regular basis. The progress of the database is reported to the top management (Partners). Andrew and Robertson's have developed the following Management Philosophy, which encourages changes in IT implementation. The main ideal in the company's management philosophy is empowerment, giving them responsibility and they will feel important. Andrew and Robertson's focuses one three key areas: Self-managed teams with Freedom to act Clarity of task Supportive coaching Leaders Supportive coaching Leaders must be trusted so that the company's aspirational goals can be accomplished. The changes being introduced by Andrew and Robertson's help to motivate employees because they will feel needed and work harder towards the aims of the company, as well as working harder for themselves and their family's honour. Possible Improvements Many of the employees at Andrew and Robertson said that the only improvements, which they would want, would be more effective communication systems. As current systems through adequate were not fully utilised because staff could not use them because of inadequate training. Money or Loyalty: Why would you move on? In the questionnaire, which I designed 6 out of the 8 questioned viewed themselves as Important and two people viewed themselves as Dogs Bodies. This showed me that most employees were happy with their status. This fact was further implied when eight out of the nine people said that they would only leave for more money whereas only one said they would leave for more perks. However when I was questioning other employees on a casual basis many said, "they were quite happy and would only leave if a much higher paid job came along or it had more prestige. Motivational Theorists Chester Barnard "According to Chester Barnard, communication should occupy the centre piece in an organisation 'because the structure, extensiveness and scope of organisation are almost entirely determined by communication

techniques'. Communication is, therefore, a foundation stone upon which other activities and functions of the organisation depend. To ensure that such activities and functions run efficiently an organisation" (Heinemann). Williams Bridges Mr Bridges is responsible for the book "Jobshift: How to prosper in a Workplace without Jobs". This book points out the changing conditions of employment today. The main points of the report being: "Employees are contingent workers, i.e. everyone's job depends on the results that organisations can achieve. Poor results mean that jobs disappear". "Employees need to develop an approach to their work and a way of managing their own careers that is more like that of an external supplier than that of an traditional employee". "Employees need to act more like people in business for themselves, setting out their own plans for career development, taking personal responsibility for health care, insurance and pensions". "Increasingly, employees will need to accept that they will need to transfer from organisation during their working for a single company". Virtually all of these changes have evolved due to challenges against organisational members and the increasing ability to alter its image using advanced IT and marketing tools. Frederick Hertzberg In 1966 Frederick Hertzberg said that humans lived at two levels. The physical level and the Psychological level, his original study was to determine whether humans did have two sets of needs. To avoid pain and the second the need to grow as a human. In the original study Frederick Hertzberg asked employees from businesses to record when they felt extremely good or bad. They were also asked to give descriptions of the events leading up to the rise and falls in emotions. The results, which Frederick Hertzberg found was there, were two factors, which affected the work quality and quantity. Salary Job Security Working Conditions Level and Quality of Supervision Company policy and administration Interpersonal relations Sense of Achievement Recognition Responsibility Nature of the work Personal Growth and Advancements Two of the factors which can be summarised as the: Two Factor theories of Motivation and Job Satisfaction Frederick Hertzberg also stated that if some were absent cause unhappiness. These factors are connected to the work undertaken, they involve the environment. They serve to protect dissatisfaction. Another two factor act to motivate employees to their full potential. These are related the contents of the jobs carried out, these are motivational or growth factors. The strength of these factors will affect whether people are satisfied and not satisfied but not dissatisfaction. The Hygiene factors of Frederick Hertzberg can be related to Abraham Maslow's hierarchy of needs, which is talked about below. The lower needs of Abraham Maslow's can be related to Frederick Hertzberg's hygiene factors is listed

below: - Proper compliance with these factors should partially ensure employees do not get dissatisfied. However other factors will have to be implemented to improve motivation. In order for employers to achieve efficiently must pay attention to the motivators and growth factors. Abraham Maslow Maslow in the year of 1954 suggested that human needs operated at stages such as basic needs which including food or hunger and advanced needs which include self development and fulfilment. Part of Maslow's argument was that employees try to satisfy the lowest needs of the hierarchy first. The basic need of people may include food and hunger. It is only after these needs have been meet that they will move up to needs such as self-esteem and self-realization. One of the reported problems quite early was the supposed rigid ness of the hierarchy. Research conducted afterwards indicated that people did not satisfy their needs in the systematic method, which Maslow designed. Alderfer later developed Maslow's work. Who after further study devised his ERG theory of motivation. Instead of a hierarchy Alderfer suggested a continuum with three sets of needs instead of five. Existence Relatedness Growth Growth responds to the higher needs indicated on Maslow's hierarchy of needs, Existence to the lower needs and Relatedness to social needs. Much of the critic problems with Maslow's Hierarchy were its rigid ness so Alderfer allowed for two sets of needs to be dealt with at the same time. (The Hawthorne Experiments) Elton Mayo The Studies "The Hawthorne Studies (or experiments) were conducted from 1927 to 1932 at the Western Electric Hawthorne Works in Chicago, where Harvard Business School professor Elton Mayo examined productivity and work conditions. The studies grew out of preliminary experiments at the plant from 1924 to 1927 on the effect of light on productivity. Those experiments showed no clear connection between productivity and the amount of illumination but researchers began to wonder what kind of changes would influence output". It was in the 1930's when Elton Mayo studied the results of experiments involving exposing women to different conditions to see how their motivation was effected. The results, which he found, were astonishing. One set of women was given more breaks and flexible working hours, the output rose dramatically. Then the breaks were taken away and rigid hours were reinstalled the effect was that out rose dramatically again. After studying the results and talking to the women Elton Mayo concluded that the women were happy because they felt needed and lighting and breaks were only a small factor. It was also concluded that because they felt they were important they worked hard and this was the main motivator. The majority of the workers in the Hawthorne Experiment also suggested that when they were working together they had Team Spirit

and this was as important as in Sport". It was furthermore stated that working in a team gave each of the member's personal pride and selfesteem. However in similar experiment similar to the Hawthorne Experiment staff stated that "steady work (61%) and steady wages (28%)" were important factors. In relation to Maslow's hierarchy of needs, this shows that the middle needs only have to be met in some cases e.g. telephone operators. Summary of motivation Motivation is a force that drives people to do things. Employees are normally motivated to achieve their needs, whatever they may include. The needs, which workers may want to achieve, are: Crucial needs - Food. Water etc Community needs - A secure job reasonable pay etc Fulfilment needs - Pride, to belong etc The low level needs of employees are usually meet within the social interactions. The middle level needs are usually met by job security and usually increase motivation slightly if increased. I f reduced below a satisfactory level then motivation has a possibility of dropping below critical levels. Higher levels are generally part of the self-development sector and ultimate satisfaction (becoming the top in your field position or experience). Performance Reward or Punishment (Employees of a company will be motivated if they associate certain incentives with an activity of work) The Step Ladder of Needs So far I have talked about the answers, which I received from my questionnaires and related my findings so the motivational theorists, which can be seen above. However the need and levels even motivational theories as a whole can be applied to one job at a high or low level. The Jobs that exist in the Partnership of Andrew and Robertson's are listed below. I am going to talk about each one and state at which level in motivational theorists charts they are and what their needs and wants are according to their financial, emotional and physical needs. PA - Personal Assistant Property Manager Finance Manager Accountant Clerk Office Assistant However first I am going to look at some of the key roles held by People in organisations. Although the term 'management' is commonly associated with business we find managers in all kinds of organisations. Indeed, wherever there is a need for People to work together for commons purpose 'managers' are needed to coordinate the inputs of people, materials. Machines and money. Of course not all those people who carry out a management role are called managers. Headmasters, bishops and generals are as much managers as is the marketing manager of a large company. Within most business organizations we can see three broad categories of management and we will use these categories to look at managerial roles within an organization. This group, comprising the Senior Managers (Partners) or Directors of the organisation, has the most power and responsibility within the organisation.

It is responsible for determining the longterm objectives of the organisation and has a time horizon of over five years. In a company senior management will be responsible to the shareholders for the success of the organisation. Due to the complexity of the managers' and directors' work it is likely that they will only have one or two executives reporting to them, but indirectly they are responsible for all employees working under them. Directors may be executive or nonexecutive. An executive director is a full time employee of the company. He or she will be responsible for the smooth running of a department within the organisation as well as being a member of the Board of Directors, contributing to discussions, particularly those involving his or her own functional specialism. Non executive directors are part time employees appointed to the Board of Directors because of their broad knowledge of industry or political influence. Their knowledge and contacts may be useful in determining policy or in getting contracts. Non executive directors may also be the representatives of large shareholders who wish to see that their interests are safeguarded. Worker directors These are the 'front line' managers who deal with the Workers and put plans of senior and middle management into operation. These plans are, by now, essentially short-term perhaps a week or a month at the most. They are also responsible for large groups of workers a span of control of 20 to 30 is not exceptional. Unfortunately the importance of having good supervisory managers is often ignored. To do their job properly they must not only have good technical skills but also very good interpersonal skills. These sets of manager's work within the set the policy set down by the senior managers. They are responsible for ensuring that the organization and utilization of resources within their department conforms to the guidelines. Normally their time horizon is one year and they will have between four and nine subordinates reporting to him. Management is often referred to as 'getting things done through people'. This definition draws attention to the importance of the managers creating a climate where people believe that they are part of a team and their contributions are valued by the organization. The team will. Obviously consist of the groups that we have discussed above - senior, middle and junior management but also equally importantly, the clerical, administrative and production staff. Today, considerable effort is made by many organizations to make the ordinary worker feet part of the team an essential and important member. Involvement in decision making, recognition in company magazines (for social, sports or works related activities), works outings, Christmas parties and even group gifts on engagements, parenthood or marriages, are all part of the process of team building. Motivators Appropriate for Different Types of

Performance Frederick Hertzberg Hygiene Theory Many of the secretaries in the firm of Andrew and Robertson are technologically inept. Because they do not feel part of the company they will not work as hard. However technology is slowly being introduced. However in the present employees are feeling de-motivated. This can be related to Hertzberg's Hygiene theory under working conditions. The employees of Andrew and Robertson are working on computers with minimum knowledge and therefore creating a frustrated environment. Under Hertzberg's Hygiene means training is not being maintained and is therefore dissatisfying the employees. Recognition is one of Frederick Hertzberg's motivators or Growth factors. This motivator or growth factor can be assigned to Andrew and Robertson's because of its open organizational approach, which means partners all the way don to clerks, work together and all know each other. Therefore creating a singular workforce geared to meet the aims of the partnership. Because recognition is a key point in work efficiently Frederick Hertzberg's theory can be applied to this approach, which is taken by all members of staff. Within the partnership of Andrew and Robertson's there is a key element, which is used to motivate staff, this is simply congratulating staff on work well done, which is then transferred in to a sense of achievement throughout the entire organisation. Most modern firms use the hard or fear approach, which involves lots of supervision to ensure an honest days work. This approach does not however amplify into a sense of achievement because the work even if complete start to finish is not enjoyable and therefore no sense of achievement. Which is essentially why Andrew and Robertson's have high staff satisfaction and loyalty. Maslow's Hierarchy of needs Self-actualisation During my time at Andrew and Robertson's I observed many of the partners while they were talking to employees. They seemed to be happy and did not look down at lower level employees. The partners seemed to operate on Maslow's highest tier, self-actualisation needs. Esteem Because of the nature of Andrew and Robertson's and the traditional values there is high staff loyalty and efficiently. Also because of the close quarters and the helpful environment there is respect among fellow workers. Respect and self-respect from others in order to fell satisfied and valuable is not a written policy in Andrew and Robertson's but it does occur through other methods of motivation, which have been utilised Belonging Needs Close Quarters stated above this method thought not intended is highly effective in motivating staff. When I worked at Andrew and Robertson's I noticed that the environment was extremely helpful. People were always in a helpful mood and the method of forcing employees into helping each other via the forming of friendship and mutuality. This type of motivations concurs with a stage on Maslow's

hierarchy of needs. So therefore staff may not have met the physiological needs and Safety and Security need. However they are directly catapulted on to the third tier, which is belonging needs. As well as concurring with Maslow's Hierarchy of needs. These facts also concur with the work of Alderfer. Who said that Maslow's Hierarchy of needs was too rigid. After further study devised his ERG theory of motivation. Instead of a hierarchy Alderfer suggested a continuum with three sets of needs instead of five. Existence Relatedness Growth Under, which the above types of performance would apply to the bottom layer, Existence, instead of the middle as with Maslow Hierarchy of Needs. Safety and Security Needs The partnership of Andrew and Robertson's is a secure building. All three branches are fitted with Security systems and there is an optional Life plan policy, which can be entered into if offered. Which is the reason for why people work so hard and Physiological needs Basic needs such as food water and shelter are all met because the pay is reasonable at the firm of Andrew and Robertson's. Food and drink is also supplied in small quantities at break times. The management sees these as incentives because in the afternoons the employees generally work harder. So therefore the reason for higher efficiently in the afternoons is the cakes and tea, which are available at lunch times and corresponds to the Physiological needs on Abraham Maslow's Hierarchy of needs William Bridges IT Evolution William Bridges wrote that there have been many changes in the modern working environment. Including the number of jobs in an organisation deceasing or increasing during fluctuating periods of demand. He argument being the advancement of IT had increased competition and therefore the nature of management philosophy. This is truer at Andrew and Robertson's since the number of employees aged over 40 years has dropped tremendously over the last 3 years due to the need for IT compliant staff. Since it is the partners who dictate policy their behaviour and types of behaviour towards their management policy.

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1.1 Introduction

While good people are hard to find, great people are much harder to replace. Michael Guld
Organization is the strength of any business. The more organized and efficient the different components in the business are, the better it functions and produces. Breaking down tasks associated with each component in the system has led to the concept of job design. Job design came about with rapid technological advancements at the turn of the 20th century when mass production and assembly line operations emerged. As jobs continue to become more sophisticated and specialized, the need for an educated and motivated workforce has become indispensable. The nature of work and its organization has interested managers, economists and social scientists for as long as people have been employed by others to engage in productive activity. Managers have largely been interested in maximizing output from available resources. Economists and social scientists have raised questions

about the organization of work in relation to issues of the individual and society in general. Workers today are motivated by many different intentions. Some of these causes are considered as a needed entity or as a desired. Many organizations all over theglobe throughout the past hundred years have focused on theories that motivate the workers to be the best they can be. Many of the theories of motivation have proven to be true. In this day of age most workers are well educated to a very high standard and for that they demand a reasonable salary and good working conditions. Motivation has conventionally been assumed to be an individual phenomenon. Each individual is unique in which each individual have different needs, potential, values, strengthening
Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry)

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(Pakistans Banking Industry) Submitted To: Prof. Seema Arif Submitted By: University of Central Punjab Page1 Research Project-II Research Thesis Job Design with Respect to Employee Motivation & Job Performance

Punjab College of Business Administration University of Central Punjab Code: MGMT 6093 Summer Term 2009 Course: Research Project-II Section:A Dedication We would like to dedicate our report to our parents who provided us stand and gave us support and helped us a lot in reaching where we are standing now. Then we would also like to dedicate this report to all our friends and to our dignified supervisor and adviser Prof. Abdul Rauf. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 2

Acknowledgements All praise to the gracious, the greatest Almighty Allah who blessed us with the courage and made our efforts fruitful for the completion of this research to a happy end. Without Allahs assistance, a project like this would never come to fruition. It gives us immense pleasure to express deepest gratitude to our dignified teacher Prof. Abdul Rauf and Prof. Seema Arif for their advice and encouragement. Their masterly expression, stimulating criticism and able guidance compelled us to think freely and write independently throughout our research thesis. Their special benignity towards us was really memorable. We wish to dedicate this research report to all the Greatest Minds that have made a huge difference in this world, and have made this world a better place. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry)

Page 3

Abstract This research "Job Design with respect to Employee Motivation and Job Performance" was carried out to identify factors which play important role in job design so that it could best motivate the employees and in return they give best performance. This research thesis, which drew knowledge from many disciplines (e.g., psychology, engineering, human factors, physiology), demonstrate effect of job design on employee motivation in the banking sector of Pakistan in order to enhance their performance at workplace. This mixed method study used both quantitative (survey) and qualitative data (job descriptions and other documents) for analysis and interpretation, which provide information not only about existing designs but in the end a model job design is presented for bankers to improve both their efficiency and effectiveness. We had collected data from Habib Bank Limited, United Bank Limited and Saudi-Pak commercial Bank (Silk Bank). We had drawn a sample unit of 50 respondents from each bank making a collective sample of 150 respondents. It was concluded that different job designs deeply influence the performance of an employee as it guides the behavior of an individual. So in order to be competitive in the global era employees job must be designed in all round manner. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 4

Contents Research Thesis........................................................................ . . . . . . . . . . . . . . . . . . .............1 Dedication................................................................................................ ................... 2 Acknowledgements............................................................................ ......................... 3 All praise to the gracious, the greatest Almighty Allah who blessed us with the courage and made our efforts fruitful for the completion of this research to a happy end. Without Allahs assistance, a project like this would never come to fruition. ..................................................................................................................... 3

It gives us immense pleasure to express deepest gratitude to our dignified teacher Prof. Abdul Rauf and Prof. Seema Arif for their advice and encouragement. Their masterly expression, stimulating criticism and able guidance compelled us to think freely and write independently throughout our research thesis. Their special benignity towards us was really memorable. .......................................................... 3 We wish to dedicate this research report to all the Greatest Minds that have made a huge difference in this world, and have made this world a better place............... 3 Abstract............................................................................................................... ........ 4 1. Chapter..................................................................................... . . . . . . . . . . . . . . . . ..............8 INTRODUCTION........................................................................................................... 8 1.1 Introduction............................................................................................... ......... 8 1.2 Operational Definitions.................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.2.1 Job..................................................................................................... ...... 12 1.2.2 Job Design................................................................................... . . . . . . . . . . . 12 1.2.3 Motivation.............................................................................. . . . . . . . . . . . . . . . . 12 1.2.4 Job Performance.............................................................................. . . . . . . . . 12 2. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 LITERATURE REVIEW............................................................................................ ...... 13 2.1 Literature Review.................................................................... . . . . . . . . . . . . . . . . . . . . . . . . 13 2.2 Job Design Approaches.................................................................................. ... 21 Job enrichment (JE).............................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Job engineering (JEng)................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Quality of work life (QWL) and socio-technical design............. . . . . . . . . . . . . . . . . . . . . . . . 22 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry)

Page 5 Social information processing approach (SIPA)........................ . . . . . . . . . . . . . . . . . . . . . . . 22 The job characteristics approach to job design....................................... . . . . . . . . 22 Diagnosing and measuring job scope................................... . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Towards a proposed model of job design......................................................... 24 Antecedents and expanded job characteristics.............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Outcomes....................................................................................................... . 32 Future implications of the model...................................................................... 33 Fig: 4 Outcome of the proposed model of job design............................................ 37 2.3 History of Banks............................................................................ ................... 38 2.3.1 The Bank........................................................................................ ......... 38 2.3.2 Banking in Pakistan................................................................................. 38 HABIB BANK LIMITED........................................................................................ ...... 39 (HBL).................................................................................................. .................... 39 UNITED BANK LIMTED............................................................................................ 40 (UBL)................................................................................................ . . . . . . . . . . . . . . . . . . . . . . 40 Saudi-Pak Commercial Bank (Silk Bank)................................................................. 42 3.Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 METHODOLOGY.............................................................................. ........................... 44 3.1 Purpose of the Study.......................................................................... . . . . . . . . . . . . . . 44 3.2 Objectives .............................................................................. .......................... 44 3.3 Null Hypothesis...................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.4 Data Collection and Analysis............................................................... . . . . . . . . . . . . . 45 3.4.1 Methodology..................................................................... . . . . . . . . . . . . . . . . . . . . . .. 45 3.4.2 Design................................................................................................ . . . . . 45 3.4.3 Population.............................................................................. . . . . . . . . . . . . . . . . .

45 3 Sample Size............................................................................................ 46 3.3.5 Sampling....................................................................................... . . . . . . . . . . 46 3.3.6 Data Collection:...................................................................................... 46 3.3.7 Data Analysis....................................................................... . . . . . . . . . . . . . . . . . . . 48 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 6 3.3.8 LIMITATIONS OF STUDY............................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 3.3.9 Ethics.................................................................................. . . . . . . . . . . . . . . . . . . . 49 DATA ANALYSIS.................................................................................... .................. 50 4.1 Data Analysis...................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 4.2 Data Analysis Results....................................................................................... 50 4.3 Findings............................................................................................... . . . . . . . . . . . . 71 5. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 5.1 Conclusion................................................................................................... . . . . . 72 5.2 Recommendation s ........................................................................................... . 75 5.3 Model of Job Design for Employees in Banking Sector..................................... 77 5.3.1 First Step......................................................................................... . . . . . . . . 77 5.3.2 Second Step.................................................................................. .......... 78 5.3.3 Final Step........................................................................... . . . . . . . . . . . . . . . . . . . . . 79 Officer Grade III...................................................................................... ................... 83 Bibliography...................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . 84 Robert N. Lussier. (2000).Human Relations in Organizations: Applications and Skill

Building (5th Ed.). NY: McGraw-Hill............................................................................ 84 Appendices......................................................................................................... . . . . . . . 86 QUESTIONNAIRES......................................................................................... ............... 87 Rating Your Job Design....................................................................................... 87 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 7

1. Chapter INTRODUCTION 1.1 Introduction While good people are hard to find, great people are much harder to replace. Michael Guld Organization is the strength of any business. The more organized and efficient the different components in the business are, the better it functions and produces. Breaking down tasks associated with each component in the system has led to the concept of job design. Job design came about with rapid technological advancements at the turn of the 20th century when mass production and assembly line operations emerged. As jobs continue to become more sophisticated and specialized, the need for an educated and motivated workforce has become indispensable. The nature of work and its organization has interested managers, economists and social scientists for as long as people have been employed by others to engage in productive activity. Managers have largely been interested in maximizing output from available resources. Economists and social scientists have raised questions about the organization of work in relation to issues of the individual and society in general. Workers today are motivated by many different intentions. Some of these causes are considered as a needed entity or as a desired. Many organizations all over the globe throughout the past hundred years have focused on theories that motivate the workers to be the best they can be. Many of the theories of motivation have proven to be true. In this day of age most workers are well educated to a very high standard and for that they demand a reasonable salary and good working

conditions. Motivation has conventionally been assumed to be an individual phenomenon. Each individual is unique in which each individual have different needs, potential, values, strengthening Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 8

history, attitudes and goals. The most important aspect that most workers are concerned about is their wants and desires. "It is important to identify employees' wants and desires which includes: 1) Praise and recognition-often employees feel that they get noticed only for the things they do wrong, not for the things they do right; 2) Job security; 3) Opportunity to advance and gain new experiences; 4) Communication-to know where they stand in the eyes of their employers and what is done right or wrong; 5) To feel involved in the company-to take part in making decisions. Job design and work organization is the specification of the contents, method and relationships of jobs to satisfy technological and organizational requirements as well as the personal needs of jobholders. The main purpose of job design (or re-design) is to increase both employee motivation and productivity (Rush, 1971). Increased productivity can manifest itself in various forms. For example, the focus can be that of improving quality and quantity of goods and services, reduce operation costs, and/or reduce turnover and training costs. Managers have the opportunity to influence the motivation of employees through design of their jobs. Well-designed jobs help accomplish two important goals: getting the necessary work done in a timely and competent manner, and motivating and challenging employees. Both the business and the employee benefit from successful job design. Poorly designed jobs leave to chance whether the expected tasks will get done in a timely and competent manner. Poorly designed jobs, moreover, are likely to be discouraging, boring and frustrating to employees. Even if employees would otherwise be enthused, competent and productive, poorly designed jobs almost certainly lead to employee disappointment.

Managers have the responsibility of designing jobs. If they ignore this responsibility, Employee will design their own jobs. Not surprisingly, the jobs designed by employees Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 9

are more likely to be attuned to employee experiences and preferences than to the goals of the business. Neither the business nor the employees are long-term winners from managers defaulting job design to employees. In designing the work group activity one of the basic principles is that of 'minimum critical specification' of the tasks and the 'minimum critical specification of tasks to jobs. Specification of objectives remains essential but the means for obtaining them in many instances can be decided by the task performer. In designing the work system it will often be the case that some overriding factor limits the application of all these principles. Nevertheless they can form the basis for questioning the assumptions being made in the design process and lead to discussion about the possible consequences of ignoring them. Criteria applied when making decisions about jobs and work organization were criticized by Louis Davis, in the 1950's, for more or less ignoring the social and psychological needs of job holders. Whilst there is now a much greater awareness of these aspects, those responsible for designing systems often are forced to operate within narrow parameters. Decisions made earlier by designers of manufacturing equipment often impose constraints on the choices available at the later stage. However, whilst recognizing these constraints it would appear that those responsible for job design are still dominated in their decisions by those factors criticized by Davis. The challenge facing managers now and in the future is that of employing the new technology with all its opportunities in ways which not only meet the organization's needs but also the expectations and aspirations of employees. In order to achieve this more effectively there is the need to further develop these approaches to job and work organization design which facilitates these broader criteria being incorporated into the design process as well as the tools with which to achieve the task.

Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 10

Job design serves to improve performance and motivation. Job-design analysis starts by looking at a job with a broad perspective and swiftly moves toward identifying the specific activities required to do the job. This is done for the purpose of identifying and correcting any deficiencies that affect performance and motivation. In this study we intend to explore which features of job design are motivating for employees working in banking sector in Pakistan so that they can perform at their best. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 11

1.2 Operational Definitions 1.2.1 Job A job is a regular activity performed in exchange for payment, especially as one's occupation. A person usually begins a job by becoming an employee, volunteering, or starting a business. The duration of a job may range from an hour (in the case of odd jobs) to a lifetime (in the case of some judges). If a person is trained for a certain type of job, they may have a profession. The series of jobs a person holds in their life is their career. 1.2.2 Job Design It refers to the process of determining exactly what an employee does on the job: the tasks, duties, responsibilities, decision-making and the level of authority 1.2.3 Motivation Motivation is goal directed behavior. Factors, which energize, direct and sustain employee behavior.

1.2.4 Job Performance Job performance is a commonly used, yet poorly defined concept in industrial and organizational psychology, the branch of psychology that deals with the workplace. It most commonly refers to whether a person performs their job well. Despite the confusion over how it should be exactly defined, performance is an extremely important criterion that relates to organizational outcomes and success. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 12

2. Chapter LITERATURE REVIEW 2.1 Literature Review A literature review is a body of text that aims to review the critical points of current knowledge on a particular topic. Most often associated with science-oriented literature, such as a thesis, the literature review usually precedes a research proposal, methodology and results section. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as the justification for future research in the area. A Literature Review has been done to know about the various aspects of job design in order to identify those motivation factors that affect job performance. According to Rush, 1971 the main purpose of job design (or re-design) is to increase both employee motivation and productivity. Job design can have a significant effect on motivation. ). Increased productivity can manifest itself in various forms. For example, the focus can be that of improving quality and quantity of goods and services, reduce operation costs, and/or reduce turnover and training costs. On the other hand, increasing employees' motivation can be achieved through increased job satisfaction. To this end, the Two-Hygiene Theory by Herzberg (1971, as cited in Rush) describes two sets of factors, satisfying and dissatisfying, that

affect an employee's self-esteem and opportunity for self-actualization in the workplace. There is an established body of knowledge supporting the idea that certain jobs and goal setting can enhance performance. This research focuses on motivating performance through job design. It is experienced that well designed jobs can have a positive impact on both employee satisfaction and the quality of performance. In the present paper, it is proposed that a well-defined job would enhance motivation, satisfaction and performance of the employees. Thus, for both academicians and practitioners, job design takes on special importance in today's human resource management. It is essential to design jobs so that stress can be reduced, motivation can be enhanced, and satisfaction of employees and their performance can be improved so that organizations can effectively compete in the global marketplace. Initially, the field of organizational behavior paid attention only to job enrichment (JE) approaches to job design. Now, job design has taken a broader perspective, with various dimensions such as job enrichment (JE), job engineering (JEng), quality of work life (QWL), sociotechnical designs, the social information processing approach (SIPA) and the job characteristics approach to job design. The Page 13 proposed model recognizes certain job characteristics that contribute to certain psychological states, and that the strength of the employee's need for growth has an important moderating effect. The aim of this research is to identify the key issues of job design research and practice, particularly in relation to higher-level jobs. To provide the context for the account that follows, we first take a backward glance at job design. We then briefly describe the approaches to job design with emphasis on the job characteristics approach to job design in detail, followed by a literature review of the job characteristics approach. Later we present the proposed model of job design, and its future implications or outcomes. More attention is being paid to job design for three major reasons: Job design can influence performance in certain jobs, especially those where employee motivation can make a substantial difference. Lower cost through reduced turnover and absenteeism are also related to good job design. Job design can affect job satisfaction. Because people are more satisfied with certain job configurations than with others, it is important to be able to identify what makes a good job. Job Design w.r.t Employee Motivation and Job Performance

(Pakistans Banking Industry) Page 14

Job design can affect both physical and mental health. Example problems such as backache or leg pain can sometimes be traced directly to job design, as can stress and related high blood pressure and heart disease. Herzberg (1966) made a critical distinction between these factors in that a person does not move in a continuum from being dissatisfied to becoming satisfied or vice versa. Rush (1971, p. 7) tries to explain Herzberg's point by stating that, "the opposite of satisfaction is not dissatisfaction, but no satisfaction; and that the opposite of dissatisfaction is not satisfaction but no dissatisfaction". In a practical sense, this means that dissatisfying factors help support and maintain the structure of the job, while the satisfying factors help the employee reach self-actualization and can increase motivation to continue to do the job. According to the Two Factor Theory of Frederick Herzberg (1959) people are influenced by two factors. Satisfaction and psychological growth are a result factor of motivation factors. Managers have the opportunity to influence the motivation of employees through design of their jobs. Well-designed jobs help accomplish two important goals: getting the necessary work done in a timely and competent manner, and motivating and challenging employees. Both the business and the employee benefit from successful job design. Poorly designed jobs leave to chance whether the expected tasks will get done in a timely and competent manner. Poorly designed jobs, moreover, are likely to be discouraging, boring and frustrating to employees. Even if employees would otherwise be enthused, competent and productive, poorly designed jobs almost certainly lead to employee disappointment. Job design serves to improve performance and motivation. Job-design analysis starts by looking at a job with a broad perspective and swiftly moves toward identifying the specific activities required to do the job. This is done for the purpose of identifying and correcting any deficiencies that affect performance and motivation. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 15

Hence this literature review satisfy all the variables i.e. relationships (between Job design and employee performance/job design and motivation) of research thesis hypothesis. Job design and its approaches are usually considered to have begun with scientific management in the year 1900. Pioneering scientific managers such as Taylor (1947), Gilbreth (1911), and Gilbreth and Gilbreth (1917) systematically examined jobs with various techniques. They suggested that task design might be the most prominent element in scientific management. With respect to the design of individual jobs, the first major theory was that of Herzberg and his colleagues (Herzberg et al. 1959). Their two-factor theory distinguished between two types of factors, namely motivators, which are intrinsic to the work itself (e.g. achievement, recognition, and responsibility), and hygiene factors, which are extrinsic to the work (e.g. work conditions, pay, and supervision). The proposition was that the hygiene factors are absolutely necessary to maintain the human resources of an organization. According to Hertzberg's theory, only a challenging job has the opportunity for achievement, recognition, advancement and growth that will motivate personnel. Hackman and Oldham's (1976) job characteristics model (JCM) superseded the twofactor theory. This identifies five core job characteristics, namely: 1. Skill variety 2. Task identity 3. Task significance 4. Autonomy 5. Feedback Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 16

The core job characteristics are followed by three critical psychological states, namely: 1. Experienced meaningfulness 2. Experienced responsibility 3. Knowledge of results In turn, the critical psychological states are accountable for increased work satisfaction, internal work motivation, performance and reduced absence and

employee turnover. The model assumes that autonomy and feedback are more important than the work characteristics, and that individuals with higher growth need strength (i.e. desire for challenges and personal development) will respond more positively to enriched jobs than others. To this end, an extension to job design has been proposed that would help organizations and employees to survive in the turbulent marketplace. There was substantial interest from researchers and practitioners in job design during the 1900s. Hackman et al. (1975) conducted a study and claimed that people on enriched jobs are definitely more motivated and satisfied by their jobs. Another study conducted by Griffin (1989) on 1,000 tellers from 38 banks of a large holding company found from the job design intervention that employees perceive meaningful changes and tend to recognize those changes over time. In addition to this, a meta-analysis of the job characteristics model (Fried and Ferris, 1987) found general support for the model and for its effects on motivation and satisfaction and performance outcome. Adler (1991) found that systems in which employees reported higher perceptions of skill variety, task significance, autonomy, and feedback reported higher levels of satisfaction and internal work motivation. Champoux (1991) theorized the relationships that growth need strength moderates between the core job characteristics and the critical psychological states and affective responses. Moreover, Dodd and Ganster (1996) examined the interactive relationship between feedback,

Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 1 autonomy and variety by manipulating the characteristics in lab. In their study, Arce (2002) found that the reward from outside activities is affected by the performance on inside activity. The study provides a rationale for the existence of synergies between different activities. Loher et al. 1985) found the relation between job characteristics and job satisfaction and also found that the relation was stronger for employees high in growth need strength (GNS). Renn and Vandenberg (1995)

studied the strongest support for the job characteristic model that allowed the core job dimensions to have direct and indirect effects on personal and work outcomes. Another study conducted by Morrison et al. (2005) found that job designs that provide for high levels of employee control also provide increased opportunities for the development and exercise of skill. Also, mediational influence of perceived skill utilization on job control job satisfaction has been observed. Love and Edwards (2005) concluded that perceived work demands, job control and social support through job design leads to high productivity. Sokoya (2000) found in his study that the level of job satisfaction is determined by a combination of jobs, work and personal characteristics. Rotating managers to different jobs adds the benefit of task variety, resulting in increased performance of employees. Bassey (2002) observed in his study that skills, task identity, task significance, autonomy, feedback, job security and compensation are important factors for the motivation of employees. Thus, the research done in this field has created virtuous circles for more research and practice. Different variables of job design, employee motivation and job performance are discussed below: Job content: the activities required of the job or the task to be done on the job Job Requirements: the personal characteristics (education, experience, licenses, etc) necessary to do the task Job Context: the environment within which the job is performed .Working relationships with other employees Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 18

Job rotation: Job design technique in which employees are moved between two or more jobs in a planned manner. The objective is to expose the employees to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them. Job enlargement: Job Enlargement is the horizontal expansion of a job. It involves the addition of tasks at the same level of skill and responsibility. It is done to keep workers from getting bored. It is different than job enrichment (see sidebar). Job enrichment: Job Enrichment is the addition to a job of tasks that increase the amount of employee control or responsibility. It is a vertical expansion of the job as opposed to the horizontal expansion of a job, which is called job enlargement.

 Rating scales: A rating scale is a set of categories designed to elicit information about a quantitative or a qualitative attribute. In the social sciences, common examples are the Likert scale and 1-10 rating scales in which a person selects the number which is considered to reflect the perceived quality of a product. Management by objectives (MBO): MBO aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identifying their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Peer or team evaluations: Things to consider in making this evaluation include: o Competence: Was the team member capable of completing his/her part of the project? In other words, did he/she learn anything in the course? Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) University of Central Punjab Page1 Research Project-II Research Thesis Job Design with Respect to Employee Motivation & Job Performance Punjab College of Business Administration University of Central Punjab Code: MGMT 6093 Summer Term 2009 Course: Research Project-II Section:A

Dedication We would like to dedicate our report to our parents who provided us stand and gave us support and helped us a lot in reaching where we are standing now. Then we would also like to dedicate this report to all our friends and to our dignified supervisor and adviser Prof. Abdul Rauf. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 2

Acknowledgements All praise to the gracious, the greatest Almighty Allah who blessed us with the courage and made our efforts fruitful for the completion of this research to a happy end. Without Allahs assistance, a project like this would never come to fruition. It gives us immense pleasure to express deepest gratitude to our dignified teacher Prof. Abdul Rauf and Prof. Seema Arif for their advice and encouragement. Their masterly expression, stimulating criticism and able guidance compelled us to think freely and write independently throughout our research thesis. Their special benignity towards us was really memorable. We wish to dedicate this research report to all the Greatest Minds that have made a huge difference in this world, and have made this world a better place. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 3

Abstract This research "Job Design with respect to Employee Motivation and Job Performance" was carried out to identify factors which play important role in job design so that it could best motivate the employees and in return they give best performance. This research thesis, which drew knowledge from many disciplines (e.g., psychology, engineering, human factors, physiology), demonstrate effect of

job design on employee motivation in the banking sector of Pakistan in order to enhance their performance at workplace. This mixed method study used both quantitative (survey) and qualitative data (job descriptions and other documents) for analysis and interpretation, which provide information not only about existing designs but in the end a model job design is presented for bankers to improve both their efficiency and effectiveness. We had collected data from Habib Bank Limited, United Bank Limited and Saudi-Pak commercial Bank (Silk Bank). We had drawn a sample unit of 50 respondents from each bank making a collective sample of 150 respondents. It was concluded that different job designs deeply influence the performance of an employee as it guides the behavior of an individual. So in order to be competitive in the global era employees job must be designed in all round manner. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 4

Contents Research Thesis........................................................................ . . . . . . . . . . . . . . . . . . .............1 Dedication................................................................................................ ................... 2 Acknowledgements............................................................................ ......................... 3 All praise to the gracious, the greatest Almighty Allah who blessed us with the courage and made our efforts fruitful for the completion of this research to a happy end. Without Allahs assistance, a project like this would never come to fruition. ..................................................................................................................... 3 It gives us immense pleasure to express deepest gratitude to our dignified teacher Prof. Abdul Rauf and Prof. Seema Arif for their advice and encouragement. Their masterly expression, stimulating criticism and able guidance compelled us to think freely and write independently throughout our research thesis. Their special benignity towards us was really memorable. .......................................................... 3 We wish to dedicate this research report to all the Greatest Minds that have made a huge difference in this world, and have made this world a better place............... 3 Abstract............................................................................................................... ........ 4 1. Chapter..................................................................................... . . . . . . . . . . . . . . . .

..............8 INTRODUCTION........................................................................................................... 8 1.1 Introduction............................................................................................... ......... 8 1.2 Operational Definitions.................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.2.1 Job..................................................................................................... ...... 12 1.2.2 Job Design................................................................................... . . . . . . . . . . . 12 1.2.3 Motivation.............................................................................. . . . . . . . . . . . . . . . . 12 1.2.4 Job Performance.............................................................................. . . . . . . . . 12 2. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 LITERATURE REVIEW............................................................................................ ...... 13 2.1 Literature Review.................................................................... . . . . . . . . . . . . . . . . . . . . . . . . 13 2.2 Job Design Approaches.................................................................................. ... 21 Job enrichment (JE).............................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Job engineering (JEng)................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Quality of work life (QWL) and socio-technical design............. . . . . . . . . . . . . . . . . . . . . . . . 22 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 5

Social information processing approach (SIPA)........................ . . . . . . . . . . . . . . . . . . . . . . . 22 The job characteristics approach to job design....................................... . . . . . . . . 22 Diagnosing and measuring job scope................................... . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Towards a proposed model of job design......................................................... 24 Antecedents and expanded job characteristics.............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Outcomes....................................................................................................... . 32 Future implications of the model...................................................................... 33 Fig: 4 Outcome of the proposed model of job design............................................ 37 2.3 History of Banks............................................................................ ................... 38 2.3.1 The Bank........................................................................................ ......... 38 2.3.2 Banking in Pakistan................................................................................. 38 HABIB BANK LIMITED........................................................................................ ...... 39 (HBL).................................................................................................. .................... 39 UNITED BANK LIMTED............................................................................................ 40 (UBL)................................................................................................ . . . . . . . . . . . . . . . . . . . . . . 40 Saudi-Pak Commercial Bank (Silk Bank)................................................................. 42 3. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 METHODOLOGY.............................................................................. ........................... 44 3.1 Purpose of the Study.......................................................................... . . . . . . . . . . . . . . 44 3.2 Objectives.............................................................................. .......................... 44 3.3 Null Hypothesis...................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.4 Data Collection and Analysis............................................................... . . . . . . . . . . . . . 45 3.4.1 Methodology..................................................................... . . . . . . . . . . . . . . . . . . . . . . 45 3.4.2 Design................................................................................................ . . . . . 45 3.4.3 Population.............................................................................. . . . . . . . . . . . . . . . . . 45 3.3.4 Sample Size............................................................................................ 46 3.3.5 Sampling....................................................................................... . . . . . . . . . . 46 3.3.6 Data Collection:...................................................................................... 46 3.3.7 Data Analysis....................................................................... . . . . . . . . . . . . . . . . . . . 48 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 6

3.3.8 LIMITATIONS OF STUDY............................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 3.3.9 Ethics.................................................................................. . . . . . . . . . . . . . . . . . . . 49 DATA ANALYSIS.................................................................................... .................. 50 4.1 Data Analysis...................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 4.2 Data Analysis Results....................................................................................... 50 4.3 Findings............................................................................................... . . . . . . . . . . . . 71 5. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 5.1 Conclusion................................................................................................... . . . . . 72 5.2 Recommendations........................................................................................... . 75 5.3 Model of Job Design for Employees in Banking Sector..................................... 77 5.3.1 First Step......................................................................................... . . . . . . . . 77 5.3.2 Second Step.................................................................................. .......... 78 5.3.3 Final Step........................................................................... . . . . . . . . . . . . . . . . . . . . . 79 Officer Grade III...................................................................................... ................... 83 Bibliography...................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . 84 Robert N. Lussier. (2000).Human Relations in Organizations: Applications and Skill Building (5th Ed.). NY: McGraw-Hill............................................................................ 84 Appendices......................................................................................................... . . . . . . . 86 QUESTIONNAIRE......................................................................................... ............... 87 Rating Your Job Design....................................................................................... 87 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry)

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1. Chapter INTRODUCTION 1.1 Introduction While good people are hard to find, great people are much harder to replace. Michael Guld Organization is the strength of any business. The more organized and efficient the different components in the business are, the better it functions and produces. Breaking down tasks associated with each component in the system has led to the concept of job design. Job design came about with rapid technological advancements at the turn of the 20th century when mass production and assembly line operations emerged. As jobs continue to become more sophisticated and specialized, the need for an educated and motivated workforce has become indispensable. The nature of work and its organization has interested managers, economists and social scientists for as long as people have been employed by others to engage in productive activity. Managers have largely been interested in maximizing output from available resources. Economists and social scientists have raised questions about the organization of work in relation to issues of the individual and society in general. Workers today are motivated by many different intentions. Some of these causes are considered as a needed entity or as a desired. Many organizations all over theglobe throughout the past hundred years have focused on theories that motivate the workers to be the best they can be. Many of the theories of motivation have proven to be true. In this day of age most workers are well educated to a very high standard and for that they demand a reasonable salary and good working conditions. Motivation has conventionally been assumed to be an individual phenomenon. Each individual is unique in which each individual have different needs, potential, values, strengthening Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 8

history, attitudes and goals. The most important aspect that most workers are concerned about is their wants and desires. "It is important to identify employees' wants and desires which includes: 1) Praise and recognition-often employees feel that they get noticed only for the things they do wrong, not for the things they do right; 2) Job security; 3) Opportunity to advance and gain new experiences; 4) Communication-to know where they stand in the eyes of their employers and what is done right or wrong; 5) To feel involved in the company-to take part in making decisions. Job design and work organization is the specification of the contents, method and relationships of jobs to satisfy technological and organizational requirements as well as the personal needs of jobholders. The main purpose of job design (or re-design) is to increase both employee motivation and productivity (Rush, 1971). Increased productivity can manifest itself in various forms. For example, the focus can be that of improving quality and quantity of goods and services, reduce operation costs, and/or reduce turnover and training costs. Managers have the opportunity to influence the motivation of employees through design of their jobs. Well-designed jobs help accomplish two important goals: getting the necessary work done in a timely and competent manner, and motivating and challenging employees. Both the business and the employee benefit from successful job design. Poorly designed jobs leave to chance whether the expected tasks will get done in a timely and competent manner. Poorly designed jobs, moreover, are likely to be discouraging, boring and frustrating to employees. Even if employees would otherwise be enthused, competent and productive, poorly designed jobs almost certainly lead to employee disappointment. Managers have the responsibility of designing jobs. If they ignore this responsibility, employees will design their own jobs. Not surprisingly, the jobs designed by employees Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 9

are more likely to be attuned to employee experiences and preferences than to the goals of the business. Neither the business nor the employees are long-term winners from managers defaulting job design to employees. In designing the work group activity one of the basic principles is that of 'minimum critical specification' of the tasks and the 'minimum critical specification of tasks to jobs. Specification of objectives remains essential but the means for obtaining them in many instances can be decided by the task performer. In designing the work system it will often be the case that some overriding factor limits the application of all these principles. Nevertheless they can form the basis for questioning the assumptions being made in the design process and lead to discussion about the possible consequences of ignoring them. Criteria applied when making decisions about jobs and work organization were criticized by Louis Davis, in the 1950's, for more or less ignoring the social and psychological needs of job holders. Whilst there is now a much greater awareness of these aspects, those responsible for designing systems often are forced to operate within narrow parameters. Decisions made earlier by designers of manufacturing equipment often impose constraints on the choices available at the later stage. However, whilst recognizing these constraints it would appear that those responsible for job design are still dominated in their decisions by those factors criticized by Davis. The challenge facing managers now and in the future is that of employing the new technology with all its opportunities in ways which not only meet the organization's needs but also the expectations and aspirations of employees. In order to achieve this more effectively there is the need to further develop these approaches to job and work organization design which facilitates these broader criteria being incorporated into the design process as well as the tools with which to achieve the task. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 10

Job design serves to improve performance and motivation. Job-design analysis starts by looking at a job with a broad perspective and swiftly moves toward identifying the specific activities required to do the job. This is done for the purpose of identifying and correcting any deficiencies that affect performance and motivation.

In this study we intend to explore which features of job design are motivating for employees working in banking sector in Pakistan so that they can perform at their best. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 11

1.2 Operational Definitions 1.2.1 Job A job is a regular activity performed in exchange for payment, especially as one's occupation. A person usually begins a job by becoming an employee, volunteering, or starting a business. The duration of a job may range from an hour (in the case of odd jobs) to a lifetime (in the case of some judges). If a person is trained for a certain type of job, they may have a profession. The series of jobs a person holds in their life is their career. 1.2.2 Job Design It refers to the process of determining exactly what an employee does on the job: the tasks, duties, responsibilities, decision-making and the level of authority 1.2.3 Motivation Motivation is goal directed behavior. Factors, which energize, direct and sustain employee behavior. 1.2.4 Job Performance Job performance is a commonly used, yet poorly defined concept in industrial and organizational psychology, the branch of psychology that deals with the workplace. It most commonly refers to whether a person performs their job well. Despite the confusion over how it should be exactly defined, performance is an extremely important criterion that relates to organizational outcomes and success. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 12

2. Chapter LITERATURE REVIEW 2.1 Literature Review A literature review is a body of text that aims to review the critical points of current knowledge on a particular topic. Most often associated with science-oriented literature, such as a thesis, the literature review usually precedes a research proposal, methodology and results section. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as the justification for future research in the area. A Literature Review has been done to know about the various aspects of job design in order to identify those motivation factors that effect job performance. According to Rush, 1971 the main purpose of job design (or re-design) is to increase both employee motivation and productivity. Job design can have a significant effect on motivation. ). Increased productivity can manifest itself in various forms. For example, the focus can be that of improving quality and quantity of goods and services, reduce operation costs, and/or reduce turnover and training costs. On the other hand, increasing employees' motivation can be achieved through increased job satisfaction. To this end, the Two-Hygiene Theory by Herzberg (1971, as cited in Rush) describes two sets of factors, satisfying and dissatisfying, that affect an employee's self-esteem and opportunity for self-actualization in the workplace. There is an established body of knowledge supporting the idea that certain jobs and goal setting can enhance performance. This research focuses on motivating performance through job design. It is experienced that well designed jobs can have a positive impact on both employee satisfaction and the quality of performance. In the present paper, it is proposed that a well-defined job would enhance motivation, Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 13

satisfaction and performance of the employees. Thus, for both academicians and practitioners, job design takes on special importance in today's human resource

management. It is essential to design jobs so that stress can be reduced, motivation can be enhanced, and satisfaction of employees and their performance can be improved so that organizations can effectively compete in the global marketplace. Initially, the field of organizational behavior paid attention only to job enrichment (JE) approaches to job design. Now, job design has taken a broader perspective, with various dimensions such as job enrichment (JE), job engineering (JEng), quality of work life (QWL), sociotechnical designs, the social information processing approach (SIPA) and the job characteristics approach to job design. The proposed model recognizes certain job characteristics that contribute to certain psychological states, and that the strength of the employee's need for growth has an important moderating effect. The aim of this research is to identify the key issues of job design research and practice, particularly in relation to higher-level jobs. To provide the context for the account that follows, we first take a backward glance at job design. We then briefly describe the approaches to job design with emphasis on the job characteristics approach to job design in detail, followed by a literature review of the job characteristics approach. Later we present the proposed model of job design, and its future implications or outcomes. More attention is being paid to job design for three major reasons: Job design can influence performance in certain jobs, especially those where employee motivation can make a substantial difference. Lower cost through reduced turnover and absenteeism are also related to good job design. Job design can affect job satisfaction. Because people are more satisfied with certain job configurations than with others, it is important to be able to identify what makes a good job. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 14

Job design can affect both physical and mental health. Example problems such as backache or leg pain can sometimes be traced directly to job design, as can stress and related high blood pressure and heart disease.

Herzberg (1966) made a critical distinction between these factors in that a person does not move in a continuum from being dissatisfied to becoming satisfied or vice versa. Rush (1971, p. 7) tries to explain Herzberg's point by stating that, "the opposite of satisfaction is not dissatisfaction, but no satisfaction; and that the opposite of dissatisfaction is not satisfaction but no dissatisfaction". In a practical sense, this means that dissatisfying factors help support and maintain the structure of the job, while the satisfying factors help the employee reach self-actualization and can increase motivation to continue to do the job. According to the Two Factor Theory of Frederick Herzberg (1959) people are influenced by two factors. Satisfaction and psychological growth are a result factor of motivation factors. Managers have the opportunity to influence the motivation of employees through design of their jobs. Well-designed jobs help accomplish two important goals: getting the necessary work done in a timely and competent manner, and motivating and challenging employees. Both the business and the employee benefit from successful job design. Poorly designed jobs leave to chance whether the expected tasks will get done in a timely and competent manner. Poorly designed jobs, moreover, are likely to be discouraging, boring and frustrating to employees. Even if employees would otherwise be enthused, competent and productive, poorly designed jobs almost certainly lead to employee disappointment. Job design serves to improve performance and motivation. Job-design analysis starts by looking at a job with a broad perspective and swiftly moves toward identifying the specific activities required to do the job. This is done for the purpose of identifying and correcting any deficiencies that affect performance and motivation. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 15

Hence this literature review satisfy all the variables i.e. relationships (between Job design and employee performance/job design and motivation) of research thesis hypothesis. Job design and its approaches are usually considered to have begun with scientific management in the year 1900. Pioneering scientific managers such as Taylor (1947), Gilbreth (1911), and Gilbreth and Gilbreth (1917) systematically examined jobs with various techniques. They suggested that task design might be the most prominent element in scientific management.

With respect to the design of individual jobs, the first major theory was that of Herzberg and his colleagues (Herzberg et al. 1959). Their two-factor theory distinguished between two types of factors, namely motivators, which are intrinsic to the work itself (e.g. achievement, recognition, and responsibility), and hygiene factors, which are extrinsic to the work (e.g. work conditions, pay, and supervision). The proposition was that the hygiene factors are absolutely necessary to maintain the human resources of an organization. According to Hertzberg's theory, only a challenging job has the opportunity for achievement, recognition, advancement and growth that will motivate personnel. Hackman and Oldham's (1976) job characteristics model (JCM) superseded the twofactor theory. This identifies five core job characteristics, namely: 1. Skill variety 2. Task identity 3. Task significance 4. Autonomy 5. Feedback Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 16

The core job characteristics are followed by three critical psychological states, namely: 1. Experienced meaningfulness

2. Experienced responsibility 3. Knowledge of results In turn, the critical psychological states are accountable for increased work satisfaction, internal work motivation, performance and reduced absence and employee turnover. The model assumes that autonomy and feedback are more important than the work characteristics, and that individuals with higher growth need strength (i.e. desire for challenges and personal development) will respond more positively to enriched jobs than others. To this end, an extension to job design has been proposed that would help organizations and employees to survive in the turbulent marketplace. There was substantial interest from researchers and practitioners in job design during the 1900s. Hackman et al. (1975) conducted a study and claimed that people on enriched jobs are definitely more motivated and satisfied by their jobs. Another study conducted by Griffin (1989) on 1,000 tellers from 38 banks of a large holding company found from the job design intervention that employees perceive meaningful changes and tend to recognize those changes over time. In addition to this, a meta-analysis of the job characteristics model (Fried and Ferris, 1987) found general support for the model and for its effects on motivation and satisfaction and performance outcome. Adler (1991) found that systems in which employees reported higher perceptions of skill variety, task significance, autonomy, and feedback reported higher levels of satisfaction and internal work motivation. Champoux (1991) theorized the relationships that growth need strength moderates between the core job characteristics and the critical psychological states and affective responses. Moreover, Dodd and Ganster (1996) examined the interactive relationship between feedback, Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 17

autonomy and variety by manipulating the characteristics in lab. In their study, Arce (2002) found that the reward from outside activities is affected by the performance on inside activity. The study provides a rationale for the existence of synergies between different activities. Loher et al. 1985) found the relation between job

characteristics and job satisfaction and also found that the relation was stronger for employees high in growth need strength (GNS). Renn and Vandenberg (1995) studied the strongest support for the job characteristic model that allowed the core job dimensions to have direct and indirect effects on personal and work outcomes. Another study conducted by Morrison et al. (2005) found that job designs that provide for high levels of employee control also provide increased opportunities for the development and exercise of skill. Also, mediational influence of perceived skill utilization on job control job satisfaction has been observed. Love and Edwards (2005) concluded that perceived work demands, job control and social support through job design leads to high productivity. Sokoya (2000) found in his study that the level of job satisfaction is determined by a combination of jobs, work and personal characteristics. Rotating managers to different jobs adds the benefit of task variety, resulting in increased performance of employees. Bassey (2002) observed in his study that skills, task identity, task significance, autonomy, feedback, job security and compensation are important factors for the motivation of employees. Thus, the research done in this field has created virtuous circles for more research and practice. Different variables of job design, employee motivation and job performance are discussed below: Job content: the activities required of the job or the task to be done on the job Job Requirements: the personal characteristics (education, experience, licenses, etc) necessary to do the task Job Context: the environment within which the job is performed .Working relationships with other employees

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 Job rotation: Job design technique in which employees are moved between two or more jobs in a planned manner. The objective is to expose the employees to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them. Job enlargement: Job Enlargement is the horizontal expansion of a job. It involves the addition of tasks at the same level of skill and responsibility. It is done to keep workers from getting bored. It is different than job enrichment (see sidebar). Job enrichment: Job Enrichment is the addition to a job of tasks that increase the amount of employee control or responsibility. It is a vertical expansion of the job as opposed to the horizontal expansion of a job, which is called job enlargement. Rating scales: A rating scale is a set of categories designed to elicit information about a quantitative or a qualitative attribute. In the social sciences, common examples are the Likert scale and 1-10 rating scales in which a person selects the number which is considered to reflect the perceived quality of a product. Management by objectives (MBO): MBO aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identifying their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Peer or team evaluations: Things to consider in making this evaluation include: o Competence: Was the team member capable of completing his/her part of the project? In other words, did he/she learn anything in the course?

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Quality of Work: Did the team member strive to and do good jobs in his/her assigned tasks? Participation: What was the level and extent of participation by the team member in all phases of the project? Promptness: Did the team member meet the task completion deadlines set by your group? Attendance: How often did the team member miss a group meeting?

Job Design w.r.t Employee Motivation and Job Performance

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2.2 Job Design Approaches The approaches to job design have been postulated in such a manner that they indirectly affect an employee's level of motivation. The approaches to job design have worked in different perspectives for various organizational developments. These approaches are: job engineering (J.Eng.); job enrichment (JE); quality of work life (QWL); social information processing approach (SIPA) and job characteristics. Each approach has its own costs and benefits, and no single approach is best; trade-offs will be required in most practical situations. Too often, jobs are developed haphazardly; they become arbitrary groupings of activities that our machines cannot do. Little consideration is given to the mental and physical capabilities, limitations, and needs of the workers who must perform them. Because of the academic discipline bases of the various job-design approaches, each approach tends to be owned by a different staff specialty or profession within an organization. Job enrichment (JE) The technique entails enriching the job, which refers to the inclusion of greater variety of work content, requiring a higher level of knowledge and skill, giving workers autonomy and responsibility in terms of planning, directing, and controlling their own performance, and providing the opportunity for personal growth and meaningful work experience. Job engineering (JEng) The scientific management approach evolved into what is now generally called job engineering. It is closely associated with cybernation and sophisticated computer applications, computer assisted design (CAD), and human-machine interactions. In fact, it has been the dominant aspect of job design analysis.

Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 21

Quality of work life (QWL) and socio-technical design The overriding purpose of quality of work life is to change the climate at work so that the human-technological-organizational interface leads to a better quality of work life. Social information processing approach (SIPA) The social information processing approach to job design suggests that individual needs, task perceptions, and reactions are socially constructed realities. The process includes choice, revocability, publicness, explicitness, social norms and expectations, and external priming, which combine with social information (from others and the organizational environment) and influence the jobholders' perceptions, attitudes and behaviors. The job characteristics approach to job design To meet the limitations of Herzberg's approach to job enrichment (which he prefers to call orthodox job enrichment (OJE), Hackman and Oldham (1976) developed the most widely recognized model of job characteristics. Basically, this model recognized certain job characteristics that contribute to certain psychological states and that the strength of employees' need for growth has an important moderating effect. The core job characteristics are summarized below: Skill variety: This refers to the extent to which the job requires the employee to draw from a number of different skills and abilities as well as upon a range of knowledge. Task variety: This refers to whether the job has an identifiable beginning and end or how complete a module of work the employee performs. Task significance: This involves the importance of the task. It involves both internal significance (i.e. how important the task is to the organization) and

Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 22 external significance (i.e. how proud employees are to tell their relatives, friends, and neighbors what they do and where they work). Autonomy: This refers to job independence. How much freedom and control employees have to perform their job, for example, schedule their work, make decisions or determine the means to accomplish the objectives. Feedback: This refers to objective information about progress and performance that can come from the job itself, from supervisors or from any other information system. Critical psychological states can be summarized as follows: Meaningfulness: This cognitive state involves the degree to which employees perceive their work as making a valued contribution, as being important and worthwhile. Responsibility: The degree to which the employee feels personally accountable for the results of the work they do. Knowledge of results: The degree to which the employee knows and understands, on a continuous basis, how effectively they perform their job Summary of Outcomes from the Job-Design Approaches Source: Michael A. Campion & Paul W. Thaye (2001), Job Design: Approaches, Outcomes, and Trade-offs. http://www.krannert.purdue.edu/faculty/campionm/Job_Design_Approaches.pdf.

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Diagnosing and measuring job scope There are several ways in which the Hackman-Oldham model can be used to diagnose the degree of job scope that job possesses. More systematically, Hackman and Oldham developed a questionnaire, The Job Diagnostic Survey (JDS) (Hackman and Oldham, 1975) to analyze jobs. The questions on this survey yield a quantitative score that can be used to calculate an overall measure of job enrichment, or what is increasingly called job scope. For this, the motivational potential score (MPS) is calculated. The formula for this is: Equation 1 Besides this, the JDS also measures some supplementary job dimensions (feedback from others, dealing with others), experienced psychological states (meaningfulness of work, responsibility for work, knowledge of results), affective responses to the job (general satisfaction, internal work motivation, growth satisfaction), context satisfactions (pay satisfaction, security satisfaction, social satisfaction, supervisory satisfaction), individual growth need strength (GNS), and MPS. The MPS scores can range from 1 to 343. The average score is about 125. Towards a proposed model of job design An elaborated model of job design has been proposed considering the designing of job at individual and group level. The proposal has been made on the following grounds. Antecedents and expanded job characteristics Various factors influence and constrain the choice of job design. Such factors can be internal to the organization, such as style of management, technology, organizational design, workplace spirituality or high performance improvement. Factors can also be external, such as environmental uncertainty, available technology and labor market. Thus, considering the external and internal factors, it is important in many ways to manipulate job characteristics. This can be done, for example, by removing demarcation barriers by running management development programs (MDPs), promoting cultural changes or conducting behavior modification

programs. For this, technology and job design need to come together to deliver excellent services. Thus, Job Design w.r.t Employee Motivation and Job Performance

(Pakistans Banking Industry)

(Pakistans Banking Industry) Submitted To: Prof. Seema Arif Submitted By: University of Central Punjab Page1 Research Project-II Research Thesis Job Design with Respect to Employee Motivation & Job Performance Punjab College of Business Administration University of Central Punjab Code: MGMT 6093 Summer Term 2009 Course: Research Project-II Section:A

Dedication We would like to dedicate our report to our parents who provided us stand and gave us support and helped us a lot in reaching where we are standing now. Then we would also like to dedicate this report to all our friends and to our dignified supervisor and adviser Prof. Abdul Rauf. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 2

Acknowledgements All praise to the gracious, the greatest Almighty Allah who blessed us with the courage and made our efforts fruitful for the completion of this research to a happy end. Without Allahs assistance, a project like this would never come to fruition. It gives us immense pleasure to express deepest gratitude to our dignified teacher Prof. Abdul Rauf and Prof. Seema Arif for their advice and encouragement. Their masterly expression, stimulating criticism and able guidance compelled us to think freely and write independently throughout our research thesis. Their special benignity towards us was really memorable. We wish to dedicate this research report to all the Greatest Minds that have made a huge difference in this world, and have made this world a better place. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 3

Abstract This research "Job Design with respect to Employee Motivation and Job Performance" was carried out to identify factors which play important role in job design so that it could best motivate the employees and in return they give best performance. This research thesis, which drew knowledge from many disciplines (e.g., psychology, engineering, human factors, physiology), demonstrate effect of job design on employee motivation in the banking sector of Pakistan in order to enhance their performance at workplace. This mixed method study used both quantitative (survey) and qualitative data (job descriptions and other documents) for analysis and interpretation, which provide information not only about existing designs but in the end a model job design is presented for bankers to improve both their efficiency and effectiveness. We had collected data from Habib Bank Limited, United Bank Limited and Saudi-Pak commercial Bank (Silk Bank). We had drawn a sample unit of 50 respondents from each bank making a collective sample of 150 respondents. It was concluded that different job designs deeply influence the performance of an employee as it guides the behavior of an individual. So in order to be competitive in the global era employees job must be designed in all round manner.

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Contents Research Thesis........................................................................ . . . . . . . . . . . . . . . . . . .............1 Dedication................................................................................................ ................... 2 Acknowledgements............................................................................ ......................... 3 All praise to the gracious, the greatest Almighty Allah who blessed us with the courage and made our efforts fruitful for the completion of this research to a happy end. Without Allahs assistance, a project like this would never come to fruition. ..................................................................................................................... 3 It gives us immense pleasure to express deepest gratitude to our dignified teacher Prof. Abdul Rauf and Prof. Seema Arif for their advice and encouragement. Their masterly expression, stimulating criticism and able guidance compelled us to think freely and write independently throughout our research thesis. Their special benignity towards us was really memorable. .......................................................... 3 We wish to dedicate this research report to all the Greatest Minds that have made a huge difference in this world, and have made this world a better place............... 3 Abstract............................................................................................................... ........ 4 1. Chapter..................................................................................... . . . . . . . . . . . . . . . . ..............8 INTRODUCTION........................................................................................................... 8 1.1 Introduction............................................................................................... ......... 8 1.2 Operational Definitions.................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.2.1 Job..................................................................................................... ...... 12 1.2.2 Job Design................................................................................... . . . . . . . . . . . 12 1.2.3 Motivation.............................................................................. . . . . . . . . . . . . . . . . 12

1.2.4 Job Performance.............................................................................. . . . . . . . . 12 2. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 LITERATURE REVIEW............................................................................................ ...... 13 2.1 Literature Review.................................................................... . . . . . . . . . . . . . . . . . . . . . . . . 13 2.2 Job Design Approaches.................................................................................. ... 21 Job enrichment (JE).............................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Job engineering (JEng)................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Quality of work life (QWL) and socio-technical design............. . . . . . . . . . . . . . . . . . . . . . . . 22 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 5

Social information processing approach (SIPA)........................ . . . . . . . . . . . . . . . . . . . . . . . 22 The job characteristics approach to job design....................................... . . . . . . . . 22 Diagnosing and measuring job scope................................... . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Towards a proposed model of job design......................................................... 24 Antecedents and expanded job characteristics.............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Outcomes....................................................................................................... . 32 Future implications of the model...................................................................... 33 Fig: 4 Outcome of the proposed model of job design............................................ 37 2.3 History of Banks............................................................................ ................... 38 2.3.1 The Bank........................................................................................ ......... 38 2.3.2 Banking in Pakistan................................................................................. 38 HABIB BANK LIMITED........................................................................................ ...... 39 (HBL).................................................................................................. .................... 39 UNITED BANK LIMTED............................................................................................ 40

(UBL)................................................................................................ . . . . . . . . . . . . . . . . . . . . . . 40 Saudi-Pak Commercial Bank (Silk Bank)................................................................. 42 3. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 METHODOLOGY.............................................................................. ........................... 44 3.1 Purpose of the Study.......................................................................... . . . . . . . . . . . . . . 44 3.2 Objectives.............................................................................. .......................... 44 3.3 Null Hypothesis...................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.4 Data Collection and Analysis............................................................... . . . . . . . . . . . . . 45 3.4.1 Methodology..................................................................... . . . . . . . . . . . . . . . . . . . . . . 45 3.4.2 Design................................................................................................ . . . . . 45 3.4.3 Population.............................................................................. . . . . . . . . . . . . . . . . . 45 3.3.4 Sample Size............................................................................................ 46 3.3.5 Sampling....................................................................................... . . . . . . . . . . 46 3.3.6 Data Collection:...................................................................................... 46 3.3.7 Data Analysis....................................................................... . . . . . . . . . . . . . . . . . . . 48 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 6

3.3.8 LIMITATIONS OF STUDY............................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 3.3.9 Ethics.................................................................................. . . . . . . . . . . . . . . . . . . . 49 DATA ANALYSIS.................................................................................... .................. 50 4.1 Data Analysis...................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 4.2 Data Analysis Results....................................................................................... 50

4.3 Findings............................................................................................... . . . . . . . . . . . . 71 5. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 5.1 Conclusion................................................................................................... . . . . . 72 5.2 Recommendations........................................................................................... . 75 5.3 Model of Job Design for Employees in Banking Sector..................................... 77 5.3.1 First Step......................................................................................... . . . . . . . . 77 5.3.2 Second Step.................................................................................. .......... 78 5.3.3 Final Step........................................................................... . . . . . . . . . . . . . . . . . . . . . 79 Officer Grade III...................................................................................... ................... 83 Bibliography...................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . 84 Robert N. Lussier. (2000).Human Relations in Organizations: Applications and Skill Building (5th Ed.). NY: McGraw-Hill............................................................................ 84 Appendices......................................................................................................... . . . . . . . 86 QUESTIONNAIRE......................................................................................... ............... 87 Rating Your Job Design....................................................................................... 87 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 7

1. Chapter INTRODUCTION 1.1 Introduction While good people are hard to find, great people are much harder to replace. Michael Guld

Organization is the strength of any business. The more organized and efficient the different components in the business are, the better it functions and produces. Breaking down tasks associated with each component in the system has led to the concept of job design. Job design came about with rapid technological advancements at the turn of the 20th century when mass production and assembly line operations emerged. As jobs continue to become more sophisticated and specialized, the need for an educated and motivated workforce has become indispensable. The nature of work and its organization has interested managers, economists and social scientists for as long as people have been employed by others to engage in productive activity. Managers have largely been interested in maximizing output from available resources. Economists and social scientists have raised questions about the organization of work in relation to issues of the individual and society in general. Workers today are motivated by many different intentions. Some of these causes are considered as a needed entity or as a desired. Many organizations all over theglobe throughout the past hundred years have focused on theories that motivate the workers to be the best they can be. Many of the theories of motivation have proven to be true. In this day of age most workers are well educated to a very high standard and for that they demand a reasonable salary and good working conditions. Motivation has conventionally been assumed to be an individual phenomenon. Each individual is unique in which each individual have different needs, potential, values, strengthening Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 8

history, attitudes and goals. The most important aspect that most workers are concerned about is their wants and desires. "It is important to identify employees' wants and desires which includes: 1) Praise and recognition-often employees feel that they get noticed only for the things they do wrong, not for the things they do right; 2) Job security; 3) Opportunity to advance and gain new experiences; 4) Communication-to know where they stand in the eyes of their employers and

what is done right or wrong; 5) To feel involved in the company-to take part in making decisions. Job design and work organization is the specification of the contents, method and relationships of jobs to satisfy technological and organizational requirements as well as the personal needs of jobholders. The main purpose of job design (or re-design) is to increase both employee motivation and productivity (Rush, 1971). Increased productivity can manifest itself in various forms. For example, the focus can be that of improving quality and quantity of goods and services, reduce operation costs, and/or reduce turnover and training costs. Managers have the opportunity to influence the motivation of employees through design of their jobs. Well-designed jobs help accomplish two important goals: getting the necessary work done in a timely and competent manner, and motivating and challenging employees. Both the business and the employee benefit from successful job design. Poorly designed jobs leave to chance whether the expected tasks will get done in a timely and competent manner. Poorly designed jobs, moreover, are likely to be discouraging, boring and frustrating to employees. Even if employees would otherwise be enthused, competent and productive, poorly designed jobs almost certainly lead to employee disappointment. Managers have the responsibility of designing jobs. If they ignore this responsibility, employees will design their own jobs. Not surprisingly, the jobs designed by employees Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 9

are more likely to be attuned to employee experiences and preferences than to the goals of the business. Neither the business nor the employees are long-term winners from managers defaulting job design to employees. In designing the work group activity one of the basic principles is that of 'minimum critical specification' of the tasks and the 'minimum critical specification of tasks to jobs. Specification of objectives remains essential but the means for obtaining them in many instances can be decided by the task performer. In designing the work system it will often be the case that some overriding factor limits the application of all these principles. Nevertheless they can form the basis for questioning the assumptions being made in the design process and lead to discussion about the possible consequences of ignoring them.

Criteria applied when making decisions about jobs and work organization were criticized by Louis Davis, in the 1950's, for more or less ignoring the social and psychological needs of job holders. Whilst there is now a much greater awareness of these aspects, those responsible for designing systems often are forced to operate within narrow parameters. Decisions made earlier by designers of manufacturing equipment often impose constraints on the choices available at the later stage. However, whilst recognizing these constraints it would appear that those responsible for job design are still dominated in their decisions by those factors criticized by Davis. The challenge facing managers now and in the future is that of employing the new technology with all its opportunities in ways which not only meet the organization's needs but also the expectations and aspirations of employees. In order to achieve this more effectively there is the need to further develop these approaches to job and work organization design which facilitates these broader criteria being incorporated into the design process as well as the tools with which to achieve the task. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 10

Job design serves to improve performance and motivation. Job-design analysis starts by looking at a job with a broad perspective and swiftly moves toward identifying the specific activities required to do the job. This is done for the purpose of identifying and correcting any deficiencies that affect performance and motivation. In this study we intend to explore which features of job design are motivating for employees working in banking sector in Pakistan so that they can perform at their best. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 11

1.2 Operational Definitions 1.2.1 Job

A job is a regular activity performed in exchange for payment, especially as one's occupation. A person usually begins a job by becoming an employee, volunteering, or starting a business. The duration of a job may range from an hour (in the case of odd jobs) to a lifetime (in the case of some judges). If a person is trained for a certain type of job, they may have a profession. The series of jobs a person holds in their life is their career. 1.2.2 Job Design It refers to the process of determining exactly what an employee does on the job: the tasks, duties, responsibilities, decision-making and the level of authority 1.2.3 Motivation Motivation is goal directed behavior. Factors, which energize, direct and sustain employee behavior. 1.2.4 Job Performance Job performance is a commonly used, yet poorly defined concept in industrial and organizational psychology, the branch of psychology that deals with the workplace. It most commonly refers to whether a person performs their job well. Despite the confusion over how it should be exactly defined, performance is an extremely important criterion that relates to organizational outcomes and success. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 12

2. Chapter LITERATURE REVIEW 2.1 Literature Review A literature review is a body of text that aims to review the critical points of current knowledge on a particular topic. Most often associated with science-oriented literature, such as a thesis, the literature review usually precedes a research proposal, methodology and results section. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as the justification for future research in the area.

A Literature Review has been done to know about the various aspects of job design in order to identify those motivation factors that effect job performance. According to Rush, 1971 the main purpose of job design (or re-design) is to increase both employee motivation and productivity. Job design can have a significant effect on motivation. ). Increased productivity can manifest itself in various forms. For example, the focus can be that of improving quality and quantity of goods and services, reduce operation costs, and/or reduce turnover and training costs. On the other hand, increasing employees' motivation can be achieved through increased job satisfaction. To this end, the Two-Hygiene Theory by Herzberg (1971, as cited in Rush) describes two sets of factors, satisfying and dissatisfying, that affect an employee's self-esteem and opportunity for self-actualization in the workplace. There is an established body of knowledge supporting the idea that certain jobs and goal setting can enhance performance. This research focuses on motivating performance through job design. It is experienced that well designed jobs can have a positive impact on both employee satisfaction and the quality of performance. In the present paper, it is proposed that a well-defined job would enhance motivation, Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 13

satisfaction and performance of the employees. Thus, for both academicians and practitioners, job design takes on special importance in today's human resource management. It is essential to design jobs so that stress can be reduced, motivation can be enhanced, and satisfaction of employees and their performance can be improved so that organizations can effectively compete in the global marketplace. Initially, the field of organizational behavior paid attention only to job enrichment (JE) approaches to job design. Now, job design has taken a broader perspective, with various dimensions such as job enrichment (JE), job engineering (JEng), quality of work life (QWL), sociotechnical designs, the social information processing approach (SIPA) and the job characteristics approach to job design. The proposed model recognizes certain job characteristics that contribute to certain psychological states, and that the strength of the employee's need for growth has an important moderating effect.

The aim of this research is to identify the key issues of job design research and practice, particularly in relation to higher-level jobs. To provide the context for the account that follows, we first take a backward glance at job design. We then briefly describe the approaches to job design with emphasis on the job characteristics approach to job design in detail, followed by a literature review of the job characteristics approach. Later we present the proposed model of job design, and its future implications or outcomes. More attention is being paid to job design for three major reasons: Job design can influence performance in certain jobs, especially those where employee motivation can make a substantial difference. Lower cost through reduced turnover and absenteeism are also related to good job design. Job design can affect job satisfaction. Because people are more satisfied with certain job configurations than with others, it is important to be able to identify what makes a good job. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 14

Job design can affect both physical and mental health. Example problems such as backache or leg pain can sometimes be traced directly to job design, as can stress and related high blood pressure and heart disease. Herzberg (1966) made a critical distinction between these factors in that a person does not move in a continuum from being dissatisfied to becoming satisfied or vice versa. Rush (1971, p. 7) tries to explain Herzberg's point by stating that, "the opposite of satisfaction is not dissatisfaction, but no satisfaction; and that the opposite of dissatisfaction is not satisfaction but no dissatisfaction". In a practical sense, this means that dissatisfying factors help support and maintain the structure of the job, while the satisfying factors help the employee reach self-actualization and can increase motivation to continue to do the job. According to the Two Factor Theory of Frederick Herzberg (1959) people are influenced by two factors. Satisfaction and psychological growth are a result factor of motivation factors. Managers have the opportunity to influence the motivation of

employees through design of their jobs. Well-designed jobs help accomplish two important goals: getting the necessary work done in a timely and competent manner, and motivating and challenging employees. Both the business and the employee benefit from successful job design. Poorly designed jobs leave to chance whether the expected tasks will get done in a timely and competent manner. Poorly designed jobs, moreover, are likely to be discouraging, boring and frustrating to employees. Even if employees would otherwise be enthused, competent and productive, poorly designed jobs almost certainly lead to employee disappointment. Job design serves to improve performance and motivation. Job-design analysis starts by looking at a job with a broad perspective and swiftly moves toward identifying the specific activities required to do the job. This is done for the purpose of identifying and correcting any deficiencies that affect performance and motivation. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 15

Hence this literature review satisfy all the variables i.e. relationships (between Job design and employee performance/job design and motivation) of research thesis hypothesis. Job design and its approaches are usually considered to have begun with scientific management in the year 1900. Pioneering scientific managers such as Taylor (1947), Gilbreth (1911), and Gilbreth and Gilbreth (1917) systematically examined jobs with various techniques. They suggested that task design might be the most prominent element in scientific management. With respect to the design of individual jobs, the first major theory was that of Herzberg and his colleagues (Herzberg et al. 1959). Their two-factor theory distinguished between two types of factors, namely motivators, which are intrinsic to the work itself (e.g. achievement, recognition, and responsibility), and hygiene factors, which are extrinsic to the work (e.g. work conditions, pay, and supervision). The proposition was that the hygiene factors are absolutely necessary to maintain the human resources of an organization. According to Hertzberg's theory, only a challenging job has the opportunity for achievement, recognition, advancement and growth that will motivate personnel. Hackman and Oldham's (1976) job characteristics model (JCM) superseded the twofactor theory. This identifies five core job characteristics, namely:

1. Skill variety 2. Task identity 3. Task significance 4. Autonomy 5. Feedback Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 16

The core job characteristics are followed by three critical psychological states, namely: 1. Experienced meaningfulness 2. Experienced responsibility 3. Knowledge of results In turn, the critical psychological states are accountable for increased work satisfaction, internal work motivation, performance and reduced absence and employee turnover. The model assumes that autonomy and feedback are more important than the work characteristics, and that individuals with higher growth need strength (i.e. desire for challenges and personal development) will respond more positively to enriched jobs than others. To this end, an extension to job design

has been proposed that would help organizations and employees to survive in the turbulent marketplace. There was substantial interest from researchers and practitioners in job design during the 1900s. Hackman et al. (1975) conducted a study and claimed that people on enriched jobs are definitely more motivated and satisfied by their jobs. Another study conducted by Griffin (1989) on 1,000 tellers from 38 banks of a large holding company found from the job design intervention that employees perceive meaningful changes and tend to recognize those changes over time. In addition to this, a meta-analysis of the job characteristics model (Fried and Ferris, 1987) found general support for the model and for its effects on motivation and satisfaction and performance outcome. Adler (1991) found that systems in which employees reported higher perceptions of skill variety, task significance, autonomy, and feedback reported higher levels of satisfaction and internal work motivation. Champoux (1991) theorized the relationships that growth need strength moderates between the core job characteristics and the critical psychological states and affective responses. Moreover, Dodd and Ganster (1996) examined the interactive relationship between feedback, Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 17

autonomy and variety by manipulating the characteristics in lab. In their study, Arce (2002) found that the reward from outside activities is affected by the performance on inside activity. The study provides a rationale for the existence of synergies between different activities. Loher et al. 1985) found the relation between job characteristics and job satisfaction and also found that the relation was stronger for employees high in growth need strength (GNS). Renn and Vandenberg (1995) studied the strongest support for the job characteristic model that allowed the core job dimensions to have direct and indirect effects on personal and work outcomes. Another study conducted by Morrison et al. (2005) found that job designs that provide for high levels of employee control also provide increased opportunities for the development and exercise of skill. Also, mediational influence of perceived skill utilization on job control job satisfaction has been observed. Love and Edwards (2005) concluded that perceived work demands, job control and social support through job design leads to high productivity. Sokoya (2000) found in his study that the level of job satisfaction is determined by a combination of jobs, work and personal characteristics. Rotating managers to different jobs adds the benefit of task variety, resulting in increased performance of employees. Bassey (2002)

observed in his study that skills, task identity, task significance, autonomy, feedback, job security and compensation are important factors for the motivation of employees. Thus, the research done in this field has created virtuous circles for more research and practice. Different variables of job design, employee motivation and job performance are discussed below: Job content: the activities required of the job or the task to be done on the job Job Requirements: the personal characteristics (education, experience, licenses, etc) necessary to do the task Job Context: the environment within which the job is performed .Working relationships with other employees Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 18

Job rotation: Job design technique in which employees are moved between two or more jobs in a planned manner. The objective is to expose the employees to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them. Job enlargement: Job Enlargement is the horizontal expansion of a job. It involves the addition of tasks at the same level of skill and responsibility. It is done to keep workers from getting bored. It is different than job enrichment (see sidebar).

 Job enrichment: Job Enrichment is the addition to a job of tasks that increase the amount of employee control or responsibility. It is a vertical expansion of the job as opposed to the horizontal expansion of a job, which is called job enlargement. Rating scales: A rating scale is a set of categories designed to elicit information about a quantitative or a qualitative attribute. In the social sciences, common examples are the Likert scale and 1-10 rating scales in which a person selects the number which is considered to reflect the perceived quality of a product. Management by objectives (MBO): MBO aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identifying their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Peer or team evaluations: Things to consider in making this evaluation include: o Competence: Was the team member capable of completing his/her part of the project? In other words, did he/she learn anything in the course? Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 19

o Quality of Work: Did the team member strive to and do a good job in his/her assigned tasks? o Participation: What was the level and extent of participation by the

team member in all phases of the project? o Promptness: Did the team member meet the task completion deadlines set by your group? o Attendance: How often did the team member miss a group meeting? Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 20

2.2 Job Design Approaches The approaches to job design have been postulated in such a manner that they indirectly affect an employee's level of motivation. The approaches to job design have worked in different perspectives for various organizational developments. These approaches are: job engineering (J.Eng.); job enrichment (JE); quality of work life (QWL); social information processing approach (SIPA) and job characteristics. Each approach has its own costs and benefits, and no single approach is best; trade-offs will be required in most practical situations. Too often, jobs are developed haphazardly; they become arbitrary groupings of activities that our machines cannot do. Little consideration is given to the mental and physical capabilities, limitations, and needs of the workers who must perform them. Because of the academic discipline bases of the various job-design approaches, each approach tends to be owned by a different staff specialty or profession within an organization. Job enrichment (JE) The technique entails enriching the job, which refers to the inclusion of greater variety of work content, requiring a higher level of knowledge and skill, giving workers autonomy and responsibility in terms of planning, directing, and controlling their own performance, and providing the opportunity for personal growth and meaningful work experience. Job engineering (JEng)

The scientific management approach evolved into what is now generally called job engineering. It is closely associated with cybernation and sophisticated computer applications, computer assisted design (CAD), and human-machine interactions. In fact, it has been the dominant aspect of job design analysis. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 21

Quality of work life (QWL) and socio-technical design The overriding purpose of quality of work life is to change the climate at work so that the human-technological-organizational interface leads to a better quality of work life. Social information processing approach (SIPA) The social information processing approach to job design suggests that individual needs, task perceptions, and reactions are socially constructed realities. The process includes choice, revocability, publicness, explicitness, social norms and expectations, and external priming, which combine with social information (from others and the organizational environment) and influence the jobholders' perceptions, attitudes and behaviors. The job characteristics approach to job design To meet the limitations of Herzberg's approach to job enrichment (which he prefers to call orthodox job enrichment (OJE), Hackman and Oldham (1976) developed the most widely recognized model of job characteristics. Basically, this model recognized certain job characteristics that contribute to certain psychological states and that the strength of employees' need for growth has an important moderating effect. The core job characteristics are summarized below: Skill variety: This refers to the extent to which the job requires the employee to draw from a number of different skills and abilities as well as upon a range of knowledge. Task variety: This refers to whether the job has an identifiable beginning and

end or how complete a module of work the employee performs. Task significance: This involves the importance of the task. It involves both internal significance (i.e. how important the task is to the organization) and Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 22

external significance (i.e. how proud employees are to tell their relatives, friends, and neighbors what they do and where they work). Autonomy: This refers to job independence. How much freedom and control employees have to perform their job, for example, schedule their work, make decisions or determine the means to accomplish the objectives. Feedback: This refers to objective information about progress and performance that can come from the job itself, from supervisors or from any other information system. Critical psychological states can be summarized as follows: Meaningfulness: This cognitive state involves the degree to which employees perceive their work as making a valued contribution, as being important and worthwhile. Responsibility: The degree to which the employee feels personally accountable for the results of the work they do.

 Knowledge of results: The degree to which the employee knows and understands, on a continuous basis, how effectively they perform their job Summary of Outcomes from the Job-Design Approaches Source: Michael A. Campion & Paul W. Thaye (2001), Job Design: Approaches, Outcomes, and Trade-offs. http://www.krannert.purdue.edu/faculty/campionm/Job_Design_Approaches.pdf. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 23

Diagnosing and measuring job scope There are several ways in which the Hackman-Oldham model can be used to diagnose the degree of job scope that job possesses. More systematically, Hackman and Oldham developed a questionnaire, The Job Diagnostic Survey (JDS) (Hackman and Oldham, 1975) to analyze jobs. The questions on this survey yield a quantitative score that can be used to calculate an overall measure of job enrichment, or what is increasingly called job scope. For this, the motivational potential score (MPS) is calculated. The formula for this is: Equation 1 Besides this, the JDS also measures some supplementary job dimensions (feedback from others, dealing with others), experienced psychological states (meaningfulness of work, responsibility for work, knowledge of results), affective responses to the job (general satisfaction, internal work motivation, growth satisfaction), context satisfactions (pay satisfaction, security satisfaction, social satisfaction, supervisory satisfaction), individual growth need strength (GNS), and MPS. The MPS scores can range from 1 to 343. The average score is about 125. Towards a proposed model of job design An elaborated model of job design has been proposed considering the designing of job at individual and group level. The proposal has been made on the following grounds. Antecedents and expanded job characteristics

Various factors influence and constrain the choice of job design. Such factors can be internal to the organization, such as style of management, technology, organizational design, workplace spirituality or high performance improvement. Factors can also be external, such as environmental uncertainty, available technology and labor market. Thus, considering the external and internal factors, it is important in many ways to manipulate job characteristics. This can be done, for example, by removing demarcation barriers by running management development programs (MDPs), promoting cultural changes or conducting behavior modification programs. For this, technology and job design need to come together to deliver excellent services. Thus, Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 24

in a well-defined circumstance, it is reasonable to assume that individuals might mould their job characteristics to fit their individual abilities and personalities. Moreover, environmental uncertainties such as downsizing and layoffs make it vital in many ways to manipulate the available human resources by considering them as the social capital of the organization. For this, managers must initiate and develop relationships among individuals, organizations and communities. Managers must initiate and develop social capital with three aspects: 1.The structural dimension, which concerns the overall pattern of relationships found in organizations; 2.The relational dimension, which concerns the nature of the connections between individuals in an organization; and 3.The cognitive dimension, which concerns the extent to which employees within a social network share a common perspective or understanding (Nahapiet and Ghosal, 1998). The creation of social capital assists in solving problems of coordination, reduces transaction costs, and facilitates the flow of information between and among employees. It also facilitates collective procession of work-related activities, growth in teamwork, collective representations, and collective emotional experience, that is, tuning one's own emotional state to that of another person or work group, reflecting joint activities, common goals, norms, and values. Consistent with this

notion, social capital directs high internal motivation leading to high performance and making employees more successful in achieving goals in comparison to organizations that have less capital. As we already know that technology has become the lifeblood of every organization, it is vital to make the optimum use of available technology. Technologies like ecommerce and e-business have become buzzwords in every organization and have affected life in the workplace. With the introduction of e-commerce, transactions and dealings are being undertaken on the internet, enhancing the job profile of Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 25

employees. Similarly, e-business has a full breadth of activities, including the development of strategies for running internet-based companies, improving communication between employees and customers, and coordinating design and production electronically. The resulting increased level of motivation leads to high performance in employees. Thus, with such forms of technological advances, employees can meet two types of cognitive demands that often emerge in manufacturing settings: 1.Attention demands; and 2.Problem-solving demands. Attention demands occur as a result of increased vigilance requirements (Van Colt, 1985), and problem-solving demands occur because of the need for fault prevention and active diagnosis of errors (Dean and Snell, 1991). Moreover, traditional job characteristics such as job autonomy, task variety and feedback are likely to be key factors. Feedback is one of the salient features within modern settings, especially given the prevalence of electronic performance monitoring (EPM). This provides accurate, fair and timely feedback that can help employees cope with work demands. Others have suggested serious downsides, such as reduced privacy and increased workload (Carayon, 1993), but employees can perceive EPM positively if there is high trust and a supportive culture. Another element of job design concerns the emotional demands of work. There can clearly be positive benefits of emotional displays for organizations. Positive emotional displays control the exchanges with customers or clients, and hence lead to customer retention. For this, autonomy would enable the individual to enable to control their exposure to emotional demands.

A further development necessary in job design is growth in teamwork or considering group-level work characteristics in a more systematic manner. Thus, this means focusing on aspects that are the function of groups, such as the design of cohesion among members, team composition, and interdependency and shared knowledge Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 26

structures. This will result in collective representations, which are the components of a system of knowledge, opinion and behavioral norms originating from social experience. This will also lead to collective emotional experience that is, tuning one's own emotional state to that of another person or work group, reflecting joint activities, common goals, values and norms. Our discussion now moves towards the internal factors of the organization that play a vital role in motivating the performance of employees. These factors are: Human resource management; Ergonomics; Organizational culture; Leadership style; Human performance improvement (HPI); and Workplace spirituality. As we already know that HR or personnel management is an essential part of every manager's responsibility, thus managers must consider employees as the most

valued asset of an organization. To promote novel thoughts and ideas, a proper blend of HR strategy and job design is required. There should be appropriate manpower planning. Employees must be selected according to the knowledge, skills, and abilities that are apt for to the job to be performed. Apart from this, employees must be given proper training so as to enhance their levels of knowledge, which will motivate them to perform better as they will be in a better position to meet global challenges. Alterations must also be made to organizational policies to consider employee benefits so that employees benefit from contributing to achieve organizational goals. Employees must be evaluated annually on the basis of their performance, and employees who perform well must be delegated with increased responsibility and recognition, leading to an increased level of motivation. Finally, interactional levels must be increased, with the creation of informal groups so as to meet social demands and motivate employees in the collective representation of organizations. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 27

With increased innovation, downsizing and lay-offs are taking place, and to make the optimum use of labor, flexibility must be induced in the job profile of employees. Flexible schedules, compressed work schedules, job sharing, and telecommuting must be allowed within organizations so to make optimum use of time and labour, resulting in increased productivity and overall performance. Apart from bringing flexibility to working hours, employees must be encouraged to produce novel and thoughtful ideas so as to solve various organizational problems and make their jobs more interesting, involving, and personally challenging, and hence leading to an increase in intrinsic motivation. This motivation in turns transforms potential into creative ideas, which fosters fair and constructive judgment of ideas and sharing of information. As well as fostering creativity within organizations, variable performance-linked pay (VPLP) must be introduced within organizations, including piece-rate plans, wage incentives, sharing, bonuses and gain-sharing. With the introduction of such programs in organizations, performances are improved and the motivational level of employees is also increased. Also, such programs recognize contributions, and low performers find ways to increase their pay, and are hence motivated to perform better. Another aspect that has been discussed is ergonomics, which plays a vital role in designing jobs and influencing the motivational levels of employees. To sustain the workforce, it has become important to ensure a hazard-free and safe environment, and it has been embraced by managers that a safe working environment can result in greater efficiency and productivity. Jobs must be designed in such a manner that

musculoskeletal disorders do not happen. Tools and equipment must be designed with the worker in mind and for the job being performed. Mini-breaks or coffee breaks must be given to employees so that body parts are not over-exerted. Production quotas, excessive supervision, machine-paced work and other pressures must be avoided so as to reduce musculoskeletal injuries. For this, work rotation must be encouraged so as to reduce exposure to ergonomic hazards: performing a variety of tasks can result in high performance. Apart, from this, the most significant aspect of designing jobs ergonomically is that there should be complete involvement of workers and unions regarding how work should be organized and structured. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 28

On the whole, we can say that when jobs are designed ergonomically, there is overall interaction of technology, work, and human beings. That is, the involvement of anatomy, physiology and psychology is complete, as the designing of jobs done on these basic human sciences results in the most productive use of human capabilities, and the maintenance of human health and well-being. The contribution of anatomy lies in improving the physical fit between employees and jobs: that is, excessive forces are avoided. The human physiology sets standards for an acceptable physical work rate, workload, and nutrition requirements. Finally, psychology is concerned with aiding the cognitive fit between employees and the jobs they perform, which results in appropriate decision-making and action. With this fit there is sustenance of an organization's workforce, lower absenteeism, increased productivity, reduced operating costs and enhanced performance. Knowledge management (KM) is another novel discipline that has emerged as one of the major dimensions in improving the performance of employees. In the present scenario of turbulent competition, with the management of human resources, it has become vital in many aspects to manage the available knowledge for meeting the organizational goals and demands. Knowledge in the perspective of job design is human-based: that is, it is brainpower, experience, skills and competence. KM involves the creation of knowledge and leveraging knowledge in the decisionmaking process. KM involves human and social interaction, where the available knowledge is mentally processed, interpreted, and applied at the workplace. For this, an employee has to be motivated to unleash their knowledge, abilities and skills for the achievement of organizational goals. Apart from this, for the purpose of managing knowledge and motivating employees for high performance, employees need to be psychologically empowered down the hierarchy so as to perform their job on their own. Free and informal interactions must be encouraged between

managers and employees to share the available knowledge. With this sharing of knowledge, employees are highly motivated to perform better in rational decisionmaking. Today, the emergence of HRM-TQM has created joint consultative committee(JCCs) where management and employees form a task committee to share the available information to generate ideas Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 29

and innovative business plans (Anand, 2001). Thus, the system should be created in a fashion that enables the dissemination, sharing and creation of knowledge, encouraging the participative management of employees, leading to increased levels of motivation in employees. Another aspect that has been discussed in reference to job design is HPI (Swanson, 1999). This is the systemic and systematic approach to identify barriers that prevent people from achieving top performance, solving performance problems, and improving opportunities in the workplace. This process involves five fundamental steps: 1.Performance analysis: This aims at the understanding and validation of perceived performance problems. A detailed assessment of performance is carried out and appropriate interventions are made so as to increase the performance of employees. 2.Root-cause analysis: This underlines the causes of performance problems such as lack of complete information; lack of environmental support; lack of incentives or rewards, skills, knowledge, and attitudes, motivation and expectations; and individual capacity. Identification of any root cause leads to the construction of an appropriate strategy, thereby enhancing the performance of the employees as well as that of the organization. 3.Intervention selection and design: At this level, the nature of the problem and its root cause are assessed, and the selection of an intervention or a combination of interventions is required. At this stage, instructional interventions are designed to promote knowledge and skill acquisition, small group activities and workshops are organized, and training is imparted through various media (distance learning, computer-based and video-based). In addition, on-the-job training (OJT) is facilitated for knowledge and skill mastery in the environment, hence motivating employees towards better performances to meet performance gaps. Moreover, non-

instructional interventions are also designed which include personnel selection, incentive systems, cultural change initiatives, knowledge management, and intellectual capital management. With these interventions, employees are under complete

Job Design w.r.t Employee Motivation and Job Performance

(Pakistans Banking Industry) Submitted To: Prof. Seema Arif Submitted By: University of Central Punjab Page1 Research Project-II Research Thesis Job Design with Respect to Employee Motivation & Job Performance Punjab College of Business Administration University of Central Punjab Code: MGMT 6093 Summer Term 2009 Course: Research Project-II Section:A

Dedication

We would like to dedicate our report to our parents who provided us stand and gave us support and helped us a lot in reaching where we are standing now. Then we would also like to dedicate this report to all our friends and to our dignified supervisor and adviser Prof. Abdul Rauf. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 2

Acknowledgements All praise to the gracious, the greatest Almighty Allah who blessed us with the courage and made our efforts fruitful for the completion of this research to a happy end. Without Allahs assistance, a project like this would never come to fruition. It gives us immense pleasure to express deepest gratitude to our dignified teacher Prof. Abdul Rauf and Prof. Seema Arif for their advice and encouragement. Their masterly expression, stimulating criticism and able guidance compelled us to think freely and write independently throughout our research thesis. Their special benignity towards us was really memorable. We wish to dedicate this research report to all the Greatest Minds that have made a huge difference in this world, and have made this world a better place. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 3

Abstract This research "Job Design with respect to Employee Motivation and Job Performance" was carried out to identify factors which play important role in job design so that it could best motivate the employees and in return they give best performance. This research thesis, which drew knowledge from many disciplines (e.g., psychology, engineering, human factors, physiology), demonstrate effect of job design on employee motivation in the banking sector of Pakistan in order to enhance their performance at workplace. This mixed method study used both quantitative (survey) and qualitative data (job descriptions and other documents) for analysis and interpretation, which provide information not only about existing designs but in the end a model job design is presented for bankers to improve both their efficiency and effectiveness. We had collected data from Habib Bank Limited, United Bank Limited and Saudi-Pak commercial Bank (Silk Bank). We had drawn a sample unit of 50 respondents from each bank making a collective sample of 150 respondents. It was concluded that different job designs deeply influence the performance of an employee as it guides the behavior of an individual. So in order to be competitive in the global era employees job must be designed in all round manner. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 4

Contents Research Thesis........................................................................ . . . . . . . . . . . . . . . . . . .............1 Dedication................................................................................................ ................... 2 Acknowledgements............................................................................ ......................... 3 All praise to the gracious, the greatest Almighty Allah who blessed us with the courage and made our efforts fruitful for the completion of this research to a happy end. Without Allahs assistance, a project like this would never come to fruition. ..................................................................................................................... 3 It gives us immense pleasure to express deepest gratitude to our dignified teacher Prof. Abdul Rauf and Prof. Seema Arif for their advice and encouragement. Their masterly expression, stimulating criticism and able guidance compelled us to think freely and write independently throughout our research thesis. Their special benignity towards us was really memorable. .......................................................... 3

We wish to dedicate this research report to all the Greatest Minds that have made a huge difference in this world, and have made this world a better place............... 3 Abstract............................................................................................................... ........ 4 1. Chapter..................................................................................... . . . . . . . . . . . . . . . . ..............8 INTRODUCTION........................................................................................................... 8 1.1 Introduction............................................................................................... ......... 8 1.2 Operational Definitions.................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 1.2.1 Job..................................................................................................... ...... 12 1.2.2 Job Design................................................................................... . . . . . . . . . . . 12 1.2.3 Motivation.............................................................................. . . . . . . . . . . . . . . . . 12 1.2.4 Job Performance.............................................................................. . . . . . . . . 12 2. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 LITERATURE REVIEW............................................................................................ ...... 13 2.1 Literature Review.................................................................... . . . . . . . . . . . . . . . . . . . . . . . . 13 2.2 Job Design Approaches.................................................................................. ... 21 Job enrichment (JE).............................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Job engineering (JEng)................................................. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Quality of work life (QWL) and socio-technical design............. . . . . . . . . . . . . . . . . . . . . . . . 22 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 5

Social information processing approach (SIPA)........................ . . . . . . . . . . . . . . . . . . . . . . . 22

The job characteristics approach to job design....................................... . . . . . . . . 22 Diagnosing and measuring job scope................................... . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Towards a proposed model of job design......................................................... 24 Antecedents and expanded job characteristics.............. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 Outcomes....................................................................................................... . 32 Future implications of the model...................................................................... 33 Fig: 4 Outcome of the proposed model of job design............................................ 37 2.3 History of Banks............................................................................ ................... 38 2.3.1 The Bank........................................................................................ ......... 38 2.3.2 Banking in Pakistan................................................................................. 38 HABIB BANK LIMITED........................................................................................ ...... 39 (HBL).................................................................................................. .................... 39 UNITED BANK LIMTED............................................................................................ 40 (UBL)................................................................................................ . . . . . . . . . . . . . . . . . . . . . . 40 Saudi-Pak Commercial Bank (Silk Bank)................................................................. 42 3. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 44 METHODOLOGY.............................................................................. ........................... 44 3.1 Purpose of the Study.......................................................................... . . . . . . . . . . . . . . 44 3.2 Objectives.............................................................................. .......................... 44 3.3 Null Hypothesis...................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . 45 3.4 Data Collection and Analysis............................................................... . . . . . . . . . . . . . 45 3.4.1 Methodology..................................................................... . . . . . . . . . . . . . . . . . . . . . . 45 3.4.2 Design................................................................................................ . . . . . 45 3.4.3 Population.............................................................................. . . . . . . . . . . . . . . . . . 45 3.3.4 Sample Size............................................................................................ 46 3.3.5 Sampling....................................................................................... . . . . . . . . . . 46 3.3.6 Data Collection:...................................................................................... 46

3.3.7 Data Analysis....................................................................... . . . . . . . . . . . . . . . . . . . 48 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 6

3.3.8 LIMITATIONS OF STUDY............................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 3.3.9 Ethics.................................................................................. . . . . . . . . . . . . . . . . . . . 49 DATA ANALYSIS.................................................................................... .................. 50 4.1 Data Analysis...................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50 4.2 Data Analysis Results....................................................................................... 50 4.3 Findings............................................................................................... . . . . . . . . . . . . 71 5. Chapter................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72 5.1 Conclusion................................................................................................... . . . . . 72 5.2 Recommendations........................................................................................... . 75 5.3 Model of Job Design for Employees in Banking Sector..................................... 77 5.3.1 First Step......................................................................................... . . . . . . . . 77 5.3.2 Second Step.................................................................................. .......... 78 5.3.3 Final Step........................................................................... . . . . . . . . . . . . . . . . . . . . . 79 Officer Grade III...................................................................................... ................... 83 Bibliography...................................................................................... . . . . . . . . . . . . . . . . . . . . . . . . 84 Robert N. Lussier. (2000).Human Relations in Organizations: Applications and Skill Building (5th Ed.). NY: McGraw-Hill............................................................................ 84 Appendices......................................................................................................... . . . . .

. . 86 QUESTIONNAIRE......................................................................................... ............... 87 Rating Your Job Design....................................................................................... 87 Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 7

1. Chapter INTRODUCTION 1.1 Introduction While good people are hard to find, great people are much harder to replace. Michael Guld Organization is the strength of any business. The more organized and efficient the different components in the business are, the better it functions and produces. Breaking down tasks associated with each component in the system has led to the concept of job design. Job design came about with rapid technological advancements at the turn of the 20th century when mass production and assembly line operations emerged. As jobs continue to become more sophisticated and specialized, the need for an educated and motivated workforce has become indispensable. The nature of work and its organization has interested managers, economists and social scientists for as long as people have been employed by others to engage in productive activity. Managers have largely been interested in maximizing output from available resources. Economists and social scientists have raised questions about the organization of work in relation to issues of the individual and society in general. Workers today are motivated by many different intentions. Some of these causes are considered as a needed entity or as a desired. Many organizations all over theglobe throughout the past hundred years have focused on theories that motivate the workers to be the best they can be. Many of the theories of motivation have proven to be true. In this day of age most workers are well educated to a very high standard and for that they demand a reasonable salary and good working conditions. Motivation has conventionally been assumed to be an individual phenomenon. Each individual is unique in which each individual have different needs, potential, values, strengthening

Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 8

history, attitudes and goals. The most important aspect that most workers are concerned about is their wants and desires. "It is important to identify employees' wants and desires which includes: 1) Praise and recognition-often employees feel that they get noticed only for the things they do wrong, not for the things they do right; 2) Job security; 3) Opportunity to advance and gain new experiences; 4) Communication-to know where they stand in the eyes of their employers and what is done right or wrong; 5) To feel involved in the company-to take part in making decisions. Job design and work organization is the specification of the contents, method and relationships of jobs to satisfy technological and organizational requirements as well as the personal needs of jobholders. The main purpose of job design (or re-design) is to increase both employee motivation and productivity (Rush, 1971). Increased productivity can manifest itself in various forms. For example, the focus can be that of improving quality and quantity of goods and services, reduce operation costs, and/or reduce turnover and training costs. Managers have the opportunity to influence the motivation of employees through design of their jobs. Well-designed jobs help accomplish two important goals: getting the necessary work done in a timely and competent manner, and motivating and challenging employees. Both the business and the employee benefit from successful job design. Poorly designed jobs leave to chance whether the expected tasks will get done in a timely and competent manner. Poorly designed jobs, moreover, are likely to be discouraging, boring and frustrating to employees. Even if employees would otherwise be enthused, competent and productive, poorly designed jobs almost certainly lead to employee disappointment. Managers have the responsibility of designing jobs. If they ignore this responsibility, employees will design their own jobs. Not surprisingly, the jobs designed by employees

Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 9

are more likely to be attuned to employee experiences and preferences than to the goals of the business. Neither the business nor the employees are long-term winners from managers defaulting job design to employees. In designing the work group activity one of the basic principles is that of 'minimum critical specification' of the tasks and the 'minimum critical specification of tasks to jobs. Specification of objectives remains essential but the means for obtaining them in many instances can be decided by the task performer. In designing the work system it will often be the case that some overriding factor limits the application of all these principles. Nevertheless they can form the basis for questioning the assumptions being made in the design process and lead to discussion about the possible consequences of ignoring them. Criteria applied when making decisions about jobs and work organization were criticized by Louis Davis, in the 1950's, for more or less ignoring the social and psychological needs of job holders. Whilst there is now a much greater awareness of these aspects, those responsible for designing systems often are forced to operate within narrow parameters. Decisions made earlier by designers of manufacturing equipment often impose constraints on the choices available at the later stage. However, whilst recognizing these constraints it would appear that those responsible for job design are still dominated in their decisions by those factors criticized by Davis. The challenge facing managers now and in the future is that of employing the new technology with all its opportunities in ways which not only meet the organization's needs but also the expectations and aspirations of employees. In order to achieve this more effectively there is the need to further develop these approaches to job and work organization design which facilitates these broader criteria being incorporated into the design process as well as the tools with which to achieve the task. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 10

Job design serves to improve performance and motivation. Job-design analysis starts by looking at a job with a broad perspective and swiftly moves toward identifying the specific activities required to do the job. This is done for the purpose of identifying and correcting any deficiencies that affect performance and motivation. In this study we intend to explore which features of job design are motivating for employees working in banking sector in Pakistan so that they can perform at their best. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 11

1.2 Operational Definitions 1.2.1 Job A job is a regular activity performed in exchange for payment, especially as one's occupation. A person usually begins a job by becoming an employee, volunteering, or starting a business. The duration of a job may range from an hour (in the case of odd jobs) to a lifetime (in the case of some judges). If a person is trained for a certain type of job, they may have a profession. The series of jobs a person holds in their life is their career. 1.2.2 Job Design It refers to the process of determining exactly what an employee does on the job: the tasks, duties, responsibilities, decision-making and the level of authority 1.2.3 Motivation Motivation is goal directed behavior. Factors, which energize, direct and sustain employee behavior. 1.2.4 Job Performance Job performance is a commonly used, yet poorly defined concept in industrial and organizational psychology, the branch of psychology that deals with the workplace. It most commonly refers to whether a person performs their job well. Despite the confusion over how it should be exactly defined, performance is an extremely important criterion that relates to organizational outcomes and success.

Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 12

2. Chapter LITERATURE REVIEW 2.1 Literature Review A literature review is a body of text that aims to review the critical points of current knowledge on a particular topic. Most often associated with science-oriented literature, such as a thesis, the literature review usually precedes a research proposal, methodology and results section. Its ultimate goal is to bring the reader up to date with current literature on a topic and forms the basis for another goal, such as the justification for future research in the area. A Literature Review has been done to know about the various aspects of job design in order to identify those motivation factors that effect job performance. According to Rush, 1971 the main purpose of job design (or re-design) is to increase both employee motivation and productivity. Job design can have a significant effect on motivation. ). Increased productivity can manifest itself in various forms. For example, the focus can be that of improving quality and quantity of goods and services, reduce operation costs, and/or reduce turnover and training costs. On the other hand, increasing employees' motivation can be achieved through increased job satisfaction. To this end, the Two-Hygiene Theory by Herzberg (1971, as cited in Rush) describes two sets of factors, satisfying and dissatisfying, that affect an employee's self-esteem and opportunity for self-actualization in the workplace. There is an established body of knowledge supporting the idea that certain jobs and goal setting can enhance performance. This research focuses on motivating performance through job design. It is experienced that well designed jobs can have a positive impact on both employee satisfaction and the quality of performance. In the present paper, it is proposed that a well-defined job would enhance motivation, Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 13

satisfaction and performance of the employees. Thus, for both academicians and practitioners, job design takes on special importance in today's human resource management. It is essential to design jobs so that stress can be reduced, motivation can be enhanced, and satisfaction of employees and their performance can be improved so that organizations can effectively compete in the global marketplace. Initially, the field of organizational behavior paid attention only to job enrichment (JE) approaches to job design. Now, job design has taken a broader perspective, with various dimensions such as job enrichment (JE), job engineering (JEng), quality of work life (QWL), sociotechnical designs, the social information processing approach (SIPA) and the job characteristics approach to job design. The proposed model recognizes certain job characteristics that contribute to certain psychological states, and that the strength of the employee's need for growth has an important moderating effect. The aim of this research is to identify the key issues of job design research and practice, particularly in relation to higher-level jobs. To provide the context for the account that follows, we first take a backward glance at job design. We then briefly describe the approaches to job design with emphasis on the job characteristics approach to job design in detail, followed by a literature review of the job characteristics approach. Later we present the proposed model of job design, and its future implications or outcomes. More attention is being paid to job design for three major reasons: Job design can influence performance in certain jobs, especially those where employee motivation can make a substantial difference. Lower cost through reduced turnover and absenteeism are also related to good job design. Job design can affect job satisfaction. Because people are more satisfied with certain job configurations than with others, it is important to be able to identify what makes a good job. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 14

Job design can affect both physical and mental health. Example problems such as backache or leg pain can sometimes be traced directly to job design, as can stress and related high blood pressure and heart disease. Herzberg (1966) made a critical distinction between these factors in that a person does not move in a continuum from being dissatisfied to becoming satisfied or vice versa. Rush (1971, p. 7) tries to explain Herzberg's point by stating that, "the opposite of satisfaction is not dissatisfaction, but no satisfaction; and that the opposite of dissatisfaction is not satisfaction but no dissatisfaction". In a practical sense, this means that dissatisfying factors help support and maintain the structure of the job, while the satisfying factors help the employee reach self-actualization and can increase motivation to continue to do the job. According to the Two Factor Theory of Frederick Herzberg (1959) people are influenced by two factors. Satisfaction and psychological growth are a result factor of motivation factors. Managers have the opportunity to influence the motivation of employees through design of their jobs. Well-designed jobs help accomplish two important goals: getting the necessary work done in a timely and competent manner, and motivating and challenging employees. Both the business and the employee benefit from successful job design. Poorly designed jobs leave to chance whether the expected tasks will get done in a timely and competent manner. Poorly designed jobs, moreover, are likely to be discouraging, boring and frustrating to employees. Even if employees would otherwise be enthused, competent and productive, poorly designed jobs almost certainly lead to employee disappointment. Job design serves to improve performance and motivation. Job-design analysis starts by looking at a job with a broad perspective and swiftly moves toward identifying the specific activities required to do the job. This is done for the purpose of identifying and correcting any deficiencies that affect performance and motivation. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 15

Hence this literature review satisfy all the variables i.e. relationships (between Job design and employee performance/job design and motivation) of research thesis hypothesis. Job design and its approaches are usually considered to have begun with scientific management in the year 1900. Pioneering scientific managers such as Taylor

(1947), Gilbreth (1911), and Gilbreth and Gilbreth (1917) systematically examined jobs with various techniques. They suggested that task design might be the most prominent element in scientific management. With respect to the design of individual jobs, the first major theory was that of Herzberg and his colleagues (Herzberg et al. 1959). Their two-factor theory distinguished between two types of factors, namely motivators, which are intrinsic to the work itself (e.g. achievement, recognition, and responsibility), and hygiene factors, which are extrinsic to the work (e.g. work conditions, pay, and supervision). The proposition was that the hygiene factors are absolutely necessary to maintain the human resources of an organization. According to Hertzberg's theory, only a challenging job has the opportunity for achievement, recognition, advancement and growth that will motivate personnel. Hackman and Oldham's (1976) job characteristics model (JCM) superseded the twofactor theory. This identifies five core job characteristics, namely: 1. Skill variety 2. Task identity 3. Task significance 4. Autonomy 5. Feedback Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 16

The core job characteristics are followed by three critical psychological states, namely:

1. Experienced meaningfulness 2. Experienced responsibility 3. Knowledge of results In turn, the critical psychological states are accountable for increased work satisfaction, internal work motivation, performance and reduced absence and employee turnover. The model assumes that autonomy and feedback are more important than the work characteristics, and that individuals with higher growth need strength (i.e. desire for challenges and personal development) will respond more positively to enriched jobs than others. To this end, an extension to job design has been proposed that would help organizations and employees to survive in the turbulent marketplace. There was substantial interest from researchers and practitioners in job design during the 1900s. Hackman et al. (1975) conducted a study and claimed that people on enriched jobs are definitely more motivated and satisfied by their jobs. Another study conducted by Griffin (1989) on 1,000 tellers from 38 banks of a large holding company found from the job design intervention that employees perceive meaningful changes and tend to recognize those changes over time. In addition to this, a meta-analysis of the job characteristics model (Fried and Ferris, 1987) found general support for the model and for its effects on motivation and satisfaction and performance outcome. Adler (1991) found that systems in which employees reported higher perceptions of skill variety, task significance, autonomy, and feedback reported higher levels of satisfaction and internal work motivation. Champoux (1991) theorized the relationships that growth need strength moderates between the core job characteristics and the critical psychological states and affective responses. Moreover, Dodd and Ganster (1996) examined the interactive relationship between feedback, Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 17

autonomy and variety by manipulating the characteristics in lab. In their study, Arce (2002) found that the reward from outside activities is affected by the performance on inside activity. The study provides a rationale for the existence of synergies between different activities. Loher et al. 1985) found the relation between job characteristics and job satisfaction and also found that the relation was stronger for employees high in growth need strength (GNS). Renn and Vandenberg (1995) studied the strongest support for the job characteristic model that allowed the core job dimensions to have direct and indirect effects on personal and work outcomes. Another study conducted by Morrison et al. (2005) found that job designs that provide for high levels of employee control also provide increased opportunities for the development and exercise of skill. Also, mediational influence of perceived skill utilization on job control job satisfaction has been observed. Love and Edwards (2005) concluded that perceived work demands, job control and social support through job design leads to high productivity. Sokoya (2000) found in his study that the level of job satisfaction is determined by a combination of jobs, work and personal characteristics. Rotating managers to different jobs adds the benefit of task variety, resulting in increased performance of employees. Bassey (2002) observed in his study that skills, task identity, task significance, autonomy, feedback, job security and compensation are important factors for the motivation of employees. Thus, the research done in this field has created virtuous circles for more research and practice. Different variables of job design, employee motivation and job performance are discussed below: Job content: the activities required of the job or the task to be done on the job Job Requirements: the personal characteristics (education, experience, licenses, etc) necessary to do the task Job Context: the environment within which the job is performed .Working relationships with other employees Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry)

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Job rotation: Job design technique in which employees are moved between two or more jobs in a planned manner. The objective is to expose the employees to different experiences and wider variety of skills to enhance job satisfaction and to cross-train them. Job enlargement: Job Enlargement is the horizontal expansion of a job. It involves the addition of tasks at the same level of skill and responsibility. It is done to keep workers from getting bored. It is different than job enrichment (see sidebar). Job enrichment: Job Enrichment is the addition to a job of tasks that increase the amount of employee control or responsibility. It is a vertical expansion of the job as opposed to the horizontal expansion of a job, which is called job enlargement. Rating scales: A rating scale is a set of categories designed to elicit information about a quantitative or a qualitative attribute. In the social sciences, common examples are the Likert scale and 1-10 rating scales in which a person selects the number which is considered to reflect the perceived quality of a product. Management by objectives (MBO): MBO aims to increase organizational performance by aligning goals and subordinate objectives throughout the organization. Ideally, employees get strong input to identifying their objectives, time lines for completion, etc. MBO includes ongoing tracking and feedback in the process to reach objectives. Peer or team evaluations: Things to consider in making this evaluation include: o

Competence: Was the team member capable of completing his/her part of the project? In other words, did he/she learn anything in the course? Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 19

o Quality of Work: Did the team member strive to and do a good job in his/her assigned tasks? o Participation: What was the level and extent of participation by the team member in all phases of the project? o Promptness: Did the team member meet the task completion deadlines set by your group? o Attendance: How often did the team member miss a group meeting? Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 20

2.2 Job Design Approaches The approaches to job design have been postulated in such a manner that they indirectly affect an employee's level of motivation. The approaches to job design have worked in different perspectives for various organizational developments. These approaches are: job engineering (J.Eng.); job enrichment (JE); quality of work life (QWL); social information processing approach (SIPA) and job characteristics. Each approach has its own costs and benefits, and no single approach is best; trade-offs will be required in most practical situations.

Too often, jobs are developed haphazardly; they become arbitrary groupings of activities that our machines cannot do. Little consideration is given to the mental and physical capabilities, limitations, and needs of the workers who must perform them. Because of the academic discipline bases of the various job-design approaches, each approach tends to be owned by a different staff specialty or profession within an organization. Job enrichment (JE) The technique entails enriching the job, which refers to the inclusion of greater variety of work content, requiring a higher level of knowledge and skill, giving workers autonomy and responsibility in terms of planning, directing, and controlling their own performance, and providing the opportunity for personal growth and meaningful work experience. Job engineering (JEng) The scientific management approach evolved into what is now generally called job engineering. It is closely associated with cybernation and sophisticated computer applications, computer assisted design (CAD), and human-machine interactions. In fact, it has been the dominant aspect of job design analysis. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 21

Quality of work life (QWL) and socio-technical design The overriding purpose of quality of work life is to change the climate at work so that the human-technological-organizational interface leads to a better quality of work life. Social information processing approach (SIPA) The social information processing approach to job design suggests that individual needs, task perceptions, and reactions are socially constructed realities. The process includes choice, revocability, publicness, explicitness, social norms and expectations, and external priming, which combine with social information (from others and the organizational environment) and influence the jobholders' perceptions, attitudes and behaviors. The job characteristics approach to job design

To meet the limitations of Herzberg's approach to job enrichment (which he prefers to call orthodox job enrichment (OJE), Hackman and Oldham (1976) developed the most widely recognized model of job characteristics. Basically, this model recognized certain job characteristics that contribute to certain psychological states and that the strength of employees' need for growth has an important moderating effect. The core job characteristics are summarized below: Skill variety: This refers to the extent to which the job requires the employee to draw from a number of different skills and abilities as well as upon a range of knowledge. Task variety: This refers to whether the job has an identifiable beginning and end or how complete a module of work the employee performs. Task significance: This involves the importance of the task. It involves both internal significance (i.e. how important the task is to the organization) and Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 22

external significance (i.e. how proud employees are to tell their relatives, friends, and neighbors what they do and where they work). Autonomy: This refers to job independence. How much freedom and control employees have to perform their job, for example, schedule their work, make decisions or determine the means to accomplish the objectives. Feedback: This refers to objective information about progress and performance

that can come from the job itself, from supervisors or from any other information system. Critical psychological states can be summarized as follows: Meaningfulness: This cognitive state involves the degree to which employees perceive their work as making a valued contribution, as being important and worthwhile. Responsibility: The degree to which the employee feels personally accountable for the results of the work they do. Knowledge of results: The degree to which the employee knows and understands, on a continuous basis, how effectively they perform their job Summary of Outcomes from the Job-Design Approaches Source: Michael A. Campion & Paul W. Thaye (2001), Job Design: Approaches, Outcomes, and Trade-offs. http://www.krannert.purdue.edu/faculty/campionm/Job_Design_Approaches.pdf. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 23

Diagnosing and measuring job scope There are several ways in which the Hackman-Oldham model can be used to diagnose the degree of job scope that job possesses. More systematically, Hackman and Oldham developed a questionnaire, The Job Diagnostic Survey (JDS) (Hackman and Oldham, 1975) to analyze jobs. The questions on this survey yield a quantitative score that can be used to calculate an overall measure of job enrichment, or what is increasingly called job scope. For this, the motivational potential score (MPS) is calculated. The formula for this is: Equation 1 Besides this,

the JDS also measures some supplementary job dimensions (feedback from others, dealing with others), experienced psychological states (meaningfulness of work, responsibility for work, knowledge of results), affective responses to the job (general satisfaction, internal work motivation, growth satisfaction), context satisfactions (pay satisfaction, security satisfaction, social satisfaction, supervisory satisfaction), individual growth need strength (GNS), and MPS. The MPS scores can range from 1 to 343. The average score is about 125. Towards a proposed model of job design An elaborated model of job design has been proposed considering the designing of job at individual and group level. The proposal has been made on the following grounds. Antecedents and expanded job characteristics Various factors influence and constrain the choice of job design. Such factors can be internal to the organization, such as style of management, technology, organizational design, workplace spirituality or high performance improvement. Factors can also be external, such as environmental uncertainty, available technology and labor market. Thus, considering the external and internal factors, it is important in many ways to manipulate job characteristics. This can be done, for example, by removing demarcation barriers by running management development programs (MDPs), promoting cultural changes or conducting behavior modification programs. For this, technology and job design need to come together to deliver excellent services. Thus, Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 24

in a well-defined circumstance, it is reasonable to assume that individuals might mould their job characteristics to fit their individual abilities and personalities. Moreover, environmental uncertainties such as downsizing and layoffs make it vital in many ways to manipulate the available human resources by considering them as the social capital of the organization. For this, managers must initiate and develop relationships among individuals, organizations and communities. Managers must initiate and develop social capital with three aspects: 1.The structural dimension, which concerns the overall pattern of

relationships found in organizations; 2.The relational dimension, which concerns the nature of the connections between individuals in an organization; and 3.The cognitive dimension, which concerns the extent to which employees within a social network share a common perspective or understanding (Nahapiet and Ghosal, 1998). The creation of social capital assists in solving problems of coordination, reduces transaction costs, and facilitates the flow of information between and among employees. It also facilitates collective procession of work-related activities, growth in teamwork, collective representations, and collective emotional experience, that is, tuning one's own emotional state to that of another person or work group, reflecting joint activities, common goals, norms, and values. Consistent with this notion, social capital directs high internal motivation leading to high performance and making employees more successful in achieving goals in comparison to organizations that have less capital. As we already know that technology has become the lifeblood of every organization, it is vital to make the optimum use of available technology. Technologies like ecommerce and e-business have become buzzwords in every organization and have affected life in the workplace. With the introduction of e-commerce, transactions and dealings are being undertaken on the internet, enhancing the job profile of Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 25

employees. Similarly, e-business has a full breadth of activities, including the development of strategies for running internet-based companies, improving communication between employees and customers, and coordinating design and production electronically. The resulting increased level of motivation leads to high performance in employees. Thus, with such forms of technological advances, employees can meet two types of cognitive demands that often emerge in manufacturing settings: 1.Attention demands; and 2.Problem-solving demands.

Attention demands occur as a result of increased vigilance requirements (Van Colt, 1985), and problem-solving demands occur because of the need for fault prevention and active diagnosis of errors (Dean and Snell, 1991). Moreover, traditional job characteristics such as job autonomy, task variety and feedback are likely to be key factors. Feedback is one of the salient features within modern settings, especially given the prevalence of electronic performance monitoring (EPM). This provides accurate, fair and timely feedback that can help employees cope with work demands. Others have suggested serious downsides, such as reduced privacy and increased workload (Carayon, 1993), but employees can perceive EPM positively if there is high trust and a supportive culture. Another element of job design concerns the emotional demands of work. There can clearly be positive benefits of emotional displays for organizations. Positive emotional displays control the exchanges with customers or clients, and hence lead to customer retention. For this, autonomy would enable the individual to enable to control their exposure to emotional demands. A further development necessary in job design is growth in teamwork or considering group-level work characteristics in a more systematic manner. Thus, this means focusing on aspects that are the function of groups, such as the design of cohesion among members, team composition, and interdependency and shared knowledge Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 26

structures. This will result in collective representations, which are the components of a system of knowledge, opinion and behavioral norms originating from social experience. This will also lead to collective emotional experience that is, tuning one's own emotional state to that of another person or work group, reflecting joint activities, common goals, values and norms. Our discussion now moves towards the internal factors of the organization that play a vital role in motivating the performance of employees. These factors are: Human resource management; Ergonomics;

 Organizational culture; Leadership style; Human performance improvement (HPI); and Workplace spirituality. As we already know that HR or personnel management is an essential part of every manager's responsibility, thus managers must consider employees as the most valued asset of an organization. To promote novel thoughts and ideas, a proper blend of HR strategy and job design is required. There should be appropriate manpower planning. Employees must be selected according to the knowledge, skills, and abilities that are apt for to the job to be performed. Apart from this, employees must be given proper training so as to enhance their levels of knowledge, which will motivate them to perform better as they will be in a better position to meet global challenges. Alterations must also be made to organizational policies to consider employee benefits so that employees benefit from contributing to achieve organizational goals. Employees must be evaluated annually on the basis of their performance, and employees who perform well must be delegated with increased responsibility and recognition, leading to an increased level of motivation. Finally, interactional levels must be increased, with the creation of informal groups so as to meet social demands and motivate employees in the collective representation of organizations. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 27

With increased innovation, downsizing and lay-offs are taking place, and to make the optimum use of labor, flexibility must be induced in the job profile of employees. Flexible schedules, compressed work schedules, job sharing, and telecommuting must be allowed within organizations so to make optimum use of time and labour, resulting in increased productivity and overall performance. Apart from bringing flexibility to working hours, employees must be encouraged to produce novel and thoughtful ideas so as to solve various organizational problems and make their jobs

more interesting, involving, and personally challenging, and hence leading to an increase in intrinsic motivation. This motivation in turns transforms potential into creative ideas, which fosters fair and constructive judgment of ideas and sharing of information. As well as fostering creativity within organizations, variable performance-linked pay (VPLP) must be introduced within organizations, including piece-rate plans, wage incentives, sharing, bonuses and gain-sharing. With the introduction of such programs in organizations, performances are improved and the motivational level of employees is also increased. Also, such programs recognize contributions, and low performers find ways to increase their pay, and are hence motivated to perform better. Another aspect that has been discussed is ergonomics, which plays a vital role in designing jobs and influencing the motivational levels of employees. To sustain the workforce, it has become important to ensure a hazard-free and safe environment, and it has been embraced by managers that a safe working environment can result in greater efficiency and productivity. Jobs must be designed in such a manner that musculoskeletal disorders do not happen. Tools and equipment must be designed with the worker in mind and for the job being performed. Mini-breaks or coffee breaks must be given to employees so that body parts are not over-exerted. Production quotas, excessive supervision, machine-paced work and other pressures must be avoided so as to reduce musculoskeletal injuries. For this, work rotation must be encouraged so as to reduce exposure to ergonomic hazards: performing a variety of tasks can result in high performance. Apart, from this, the most significant aspect of designing jobs ergonomically is that there should be complete involvement of workers and unions regarding how work should be organized and structured. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 28

On the whole, we can say that when jobs are designed ergonomically, there is overall interaction of technology, work, and human beings. That is, the involvement of anatomy, physiology and psychology is complete, as the designing of jobs done on these basic human sciences results in the most productive use of human capabilities, and the maintenance of human health and well-being. The contribution of anatomy lies in improving the physical fit between employees and jobs: that is, excessive forces are avoided. The human physiology sets standards for an acceptable physical work rate, workload, and nutrition requirements. Finally, psychology is concerned with aiding the cognitive fit between employees and the jobs they perform, which results in appropriate decision-making and action. With

this fit there is sustenance of an organization's workforce, lower absenteeism, increased productivity, reduced operating costs and enhanced performance. Knowledge management (KM) is another novel discipline that has emerged as one of the major dimensions in improving the performance of employees. In the present scenario of turbulent competition, with the management of human resources, it has become vital in many aspects to manage the available knowledge for meeting the organizational goals and demands. Knowledge in the perspective of job design is human-based: that is, it is brainpower, experience, skills and competence. KM involves the creation of knowledge and leveraging knowledge in the decisionmaking process. KM involves human and social interaction, where the available knowledge is mentally processed, interpreted, and applied at the workplace. For this, an employee has to be motivated to unleash their knowledge, abilities and skills for the achievement of organizational goals. Apart from this, for the purpose of managing knowledge and motivating employees for high performance, employees need to be psychologically empowered down the hierarchy so as to perform their job on their own. Free and informal interactions must be encouraged between managers and employees to share the available knowledge. With this sharing of knowledge, employees are highly motivated to perform better in rational decisionmaking. Today, the emergence of HRM-TQM has created joint consultative committees (JCCs) where management and employees form a task committee to share the available information to generate ideas Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 29

and innovative business plans (Anand, 2001). Thus, the system should be created in a fashion that enables the dissemination, sharing and creation of knowledge, encouraging the participative management of employees, leading to increased levels of motivation in employees. Another aspect that has been discussed in reference to job design is HPI (Swanson, 1999). This is the systemic and systematic approach to identify barriers that prevent people from achieving top performance, solving performance problems, and improving opportunities in the workplace. This process involves five fundamental steps: 1.Performance analysis: This aims at the understanding and validation of perceived performance problems. A detailed assessment of performance is carried out and appropriate interventions are made so as to increase the performance of employees.

2.Root-cause analysis: This underlines the causes of performance problems such as lack of complete information; lack of environmental support; lack of incentives or rewards, skills, knowledge, and attitudes, motivation and expectations; and individual capacity. Identification of any root cause leads to the construction of an appropriate strategy, thereby enhancing the performance of the employees as well as that of the organization. 3.Intervention selection and design: At this level, the nature of the problem and its root cause are assessed, and the selection of an intervention or a combination of interventions is required. At this stage, instructional interventions are designed to promote knowledge and skill acquisition, small group activities and workshops are organized, and training is imparted through various media (distance learning, computer-based and video-based). In addition, on-the-job training (OJT) is facilitated for knowledge and skill mastery in the environment, hence motivating employees towards better performances to meet performance gaps. Moreover, noninstructional interventions are also designed which include personnel selection, incentive systems, cultural change initiatives, knowledge management, and intellectual capital management. With these interventions, employees are under complete Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 30

assessments which motivate employees to improve their performance for the achievement of organizational goals. 4.Implementation: This adequate resources, change management strategy and business processes and procedures to increase organizational effectiveness. 5.Evaluation: This involves interpretation of organizational outcomes. This involves evaluation of the various interventions made for improving performance in the workplace, to decide whether to terminate or continue an intervention and to study the impact of decision-making and business planning and how far the business plans have or have not been supportive of organizational learning. Hence, with these interventions, we can keep pace with the changes occurring in the organizational landscape.

Finally, we come to the most important aspect of our design and that is leadership style and organizational culture. Leaders play a vital role in motivating the performance of employees. Leaders are the only source of trust in employees that managers are trustworthy, benevolent and prefer fairness in work processes. Leaders motivate people to follow a participative design of work in which they are responsible for controlling and coordinating their work, hence making them responsible for their performance. But this is feasible only when there is openness and trust between leaders and employees (Tanner, 1998). In the context of leadership style, another stream of research has emerged that has focused on transformational leadership and transactional leadership styles. Although both forms of leadership are apt for any organization, transformational leadership style is more suitable as the leader of a particular group pays more attention to the concerns and needs of individual employees, and creates awareness among employees to look at old problems in new ways. They motivate and inspire employees towards the achievement of organizational goals by providing vision and a sense of mission among employees and also induce intellectual stimulation, which opens vistas for employees in terms of career development and new ways to make enhance their performance. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 31

Finally there is organizational culture, which involves the socialization process, psychological empowerment, and workplace spirituality. Motivating employees towards high performance is very much influenced by the prevalence of the culture in the organization. Socialization must be induced within organizations: this can be achieved through social interaction between employees and employers, where the information gathered is easily shared and disseminated. Also, employees have the chance of emotional release, creating a culture of trust and openness. Last comes workplace spirituality (Ashmos and Duchon, 2000), which recognizes that employees have both a mind and a spirit and seek to find meaning and purpose in their work, and a desire to connect with other human beings and be part of a community, hence making their jobs more meaningful and motivating employees to perform at a high level with a view to personal and social development. Thus, the proposed model of job design, created with a view towards motivating employees to higher performance, will definitely help in achieving organizational goals with full zest and will definitely lead to proactive outcomes or performance.

Outcomes The use of available resources and available technology along with various training programs will definitely lead to increased productivity and increased levels of motivation at individual level, group level, and social level. Also, considering the labor market on the basis of variable-pay programs and flexible schedules will definitely lead to heightened motivation and productivity, which in return leads to the creation of social capital, assisting in meeting the structural, relational, and cognitive demands of the organization. Designing jobs under consideration of internal organizational factors, it can be seen that following appropriate management strategies will help in the creation of opportunities for career development, skill acquisition and creativity for employees. Performance evaluations will help employees to know their levels of motivation and Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 32

make efforts to improve them. Moreover, designing jobs ergonomically will help in the creation of safe working conditions, avoiding musculoskeletal injuries and awkward postures. In other words, the involvement of anatomy, physiology, and psychology in designing jobs ergonomically will lead to high performance and reduced levels of stress in employees. Knowledge management will also lead to proactive outcomes or performance. Once knowledge dissemination, utilization and acquisition are required in a linear fashion, learning organizations can be created where novel ideas and thoughts are developed, interpreted, and implemented and knowledge is transformed throughout the system with the objective of achieving organizational goals efficiently and creating autonomy in performing jobs, hence motivating employees towards high performance. Finally, following a transformational leadership style in motivating employees will definitely lead to collective representations and collective emotional experiences, hence leading to the creation of a collectivistic culture within organizations as well as the creation of a high performing environment. In other words, appropriate job design will lead to proactive performance and finally to learning and developing nations. Future implications of the model Traditional outcomes such as job satisfaction, motivation and performance will certainly remain central to the agenda. But, some wider developments are yet to be incorporated besides these general agendas. Job autonomy would be associated

with greater organizational commitment, which in turn was linked to safer working. Thus, safety has been one of the most ignored aspects of job designs which in future can become one of the salient features of job design, hence, leading to a better quality of work life (QWL). In today's world, to survive in the turbulent marketplace, creativity, innovation, skill and knowledge acquisition have become major aspects in improving the performance of employees and creating virtuous circles for organizations to reach the pinnacle, as they lead to improved decision-making and goal setting. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 33

Finally, in terms of practical recommendations, empowerment is an effective strategy for promoting expertise. It creates an effective and safe environment within which individuals can acquire skills. Importantly, empowerment provides an opportunity for employees to apply new skills, which is likely to reinforce the values of personal development. It can be regarded as an effective means of improving skills and can be regarded as an effective strategy for managing knowledge in two respects: 1.The provision of information systems and support from technical experts represents a systematic practice for disseminating knowledge through an organization; and 2.Enhanced decision-making responsibility has the potential to tap into employees' existing knowledge and skills, drawing on their personal experiences and ideas to improve the effectiveness of work systems. In other words, empowerment can be viewed as a means of eliciting or unlocking the knowledge possessed by an organization. When it comes to job design in the Indian context, employers can give a quick response to their job by enabling employees to use their tact and local language to solve problems. Besides this, knowledge creation and employee learning and development among employees will be promoted with the perspective consistent with the German action theory, of which the basic tenet is that work is actionoriented. It has also been proposed in the model that designed roles promote

mastery, which in turn helps people learn to cope with the stresses of the job, also leading to higher intensive motivation, which in turn leads to increased growth needs strength, providing environmental certainty and centralized decision-making. Thus, implication of the model is that the job characteristics model can be practically applied with the desirable performance and satisfaction results. Some well-known companies such as 3M, AT&T, Xerox and Motorola are also among those who have actually implemented job design changes in accordance with the job characteristics model. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 34

Equation 1 Fig: 1 Approaches to job design Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 35

Fig: 2 Hackman-Oldham job characteristics model Fig: 3The proposed model of job design Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 36

Fig: 4 Outcome of the proposed model of job design Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 37

2.3 History of Banks 2.3.1 The Bank The term BANK is derived from an Italian word BANKO which means Bench that is where people meet and solve their financial matters. The term bank is being used for a long time yet it has no precise definition. The basic reason is that the banks perform not just one but many types of functions originally the banks were supposed to make short term loans to the traders only. The banks now not only make short term loans to the formers, traders, industrialist etc. But also invest in a wide variety of long term earning assets. The commercial banks also undertake and execute trust, deal in stock, shares and debentures, issue guaranties and indemnities underwrite and sell new securities, and deal in foreign exchange etc. 2.3.2 Banking in Pakistan At the time of independence there were 487 offices of schedules banks if Pakistan. However the banks including those having their registered offices in Pakistan, transferred them to India. By 30th time June 1948 the no offices of scheduled banks in Pakistan declined from 487 to only 195 There were 19 non Indian foreign banks with the status of small branches office while

there were only 2 Pakistan bank i.e. Habib Bank and Australian Bank. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 38

HABIB BANK LIMITED (HBL) Company Introduction: HBL plays a central role in Pakistan's financial and economic development. It has come a long way from its modest beginnings in Bombay in 1941 when it commenced operations with a fixed capital of 25,000 rupees. Company Description: HABIB BANK LIMITED not only has made investment in industry but also in smallscale industry but also in small-scale industry as well. HABIB BANK LIMITED has efficient & less bureaucratic setup. History of the Company: HBL was the first Muslim Bank in the Subcontinent. Habib Bank is the premier and the oldest bank in the country. Impressed by its initial performance, Quaid-e-Azam Mohammed Ali Jinnah asked the Bank to move its operations to Karachi after the creation of Pakistan. HBL established itself in the Quaid's city in 1943 and became a symbol of pride and progress for the people of Pakistan. Operational Structure: Habib Bank has been a pioneer in providing innovative banking services. These have included the installation of the first mainframe computer in Pakistan followed by the first ATM and more recently, internet banking facilities in all our 1425 domestic branches. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 39

UNITED BANK LIMTED

(UBL) Company Introduction: UBL was set up in 1959 and is today one of Pakistan's major banks in terms of deposits and advances with a huge domestic and international network. Its salient features are: Company Description: UBL is a Banking Company, which is engaged in Commercial & Retail Banking and related services domestically and overseas. History of the Company: UBL was established in 1959 and is one of the major commercial banks of Pakistan. The Bank is making every effort to meet the up-coming challenges through strategic planning and making the best use of the resources at its command. A professional team was appointed in mid 1997 to restructure the bank and to commence rightsizing. The management is also in the process of rationalizing the branch network and identifying and recovering its doubtful and classified portfolio. It has planned to institute major improvements in customer services and internal systems to improve efficiency. It also intends to launch innovative products. The bank is increasing resource mobilization through regular deposit campaigns and accelerating the process of recovery of outstanding advances and non-performing assets. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 40

Operational Structure: UBL operates 1375 domestic and a subsidiary viz. United Executors and Trustees Company Ltd. as on 30.06.2000. It has 20 overseas branches situated in the UK, USA, UAE, Yemen, Bahrain and Qatar. It also operates one offshore branch in the Export Processing Zone, Karachi and it has representative offices in Cairo-Egypt and Tehran- Iran. It also has a joint venture Oman United Exchange Co., Oman Muscat and a subsidiary United Bank A.G. Zurich, Switzerland set up in 1968. It has 21 ATMs with 8 in the UAE, 3 in Bahrain, 1 in Doha, 7 in Islamabad and 2 in Karachi. Domestic and International Network

 Major Local Market Presence: UBL is one of the largest commercial banks in Pakistan representing approximately 09% of the deposits of the banking sector. A Household Name: UBL's brand name is well established. It has an extensive domestic network of 1,375 branches reaching virtually every segment of the Pakistani economy. A Full Service Bank: UBL provides its customers a complete range of banking products and services including retail banking, corporate and institutional banking, trade finance and consumer finance. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 41

Saudi-Pak Commercial Bank (Silk Bank) Company Introduction: Saudi Pak Bank now known as Silk Bank activated its commercial banking in 1992 in Pakistan. During 1993, two more business divisions i.e. Corporate Banking and Financial Services were added. Company Description: Saudi Pak Bank is the vision of a group of Pakistani professionals with extensive domestic and international banking and finance experience. Some of the foreign investors belong to a highly regarded, very sizeable and well diversified business group of Saudi Arabia. History of the Company: On July 3rd, 1916 a deal for purchase of land was executed between Graham property through its attorneys and Messrs Cox & Co. The lease was executed between Indian Premises Company Ltd & Cox & Co. on April 1st, 1921 for a period of 50 years ending March 31, 1971. The building construction was completed in

March 1922. The building was built with Jodhpur stone and thickness of the wall is around two feet. The building is well maintained and keeping in view the history and its design, this building was brought under the rule of Sindh Heritage Ordinance by Government of Sindh in 1988. Under the Heritage rules, no changes are permitted at the exterior of the building. This building was purchased by Saudi Pak Commercial Bank Limited in 2002. The central office of the bank, the regional office South and the main branch Karachi will be housed in the premises. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 42

Operational Structure: The branch network was expanded during the year through addition of eight branches increasing the network to twenty eight branches. The refurbishment work was completed in a number of branches to give them Saudi Pak identity and a friendly and service oriented look. During the year three branches were completely renovated while another three branches were shifted to new locations. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 43

3. Chapter METHODOLOGY 3.1 Purpose of the Study The purpose of the study was to identify factors which play important role in job design so that it could best motivate the employees and in return they give best performance. The following factors of job design, motivation and performance were the subject of study: Job content

Job functions Working relationships with other employees Job rotation Job enlargement Job enrichment Rating scales Management by objectives (MBO) Peer or team evaluation 3.2 Objectives This study was an effort to find out the impact of employee motivating factors while job designing in order to enhance job performance in the banking sector. This study countered following objectives: Technical Feasibility: The job must not be beyond the reasonable limits of the workers skills and mental endurance. Economic Feasibility: The workers compensation and the cost of concomitant equipment and appropriate work environment must be reasonable. The job should foster a positive worker attitude by providing intrinsic rewards. Job Design w.r.t Employee Motivation and Job Performance

(Pakistans Banking Industry) Page 44

3.3 Null Hypothesis Ho1: Job design and employee performance has strong relation with each other Ho2: Job design and motivation have a relation with each other. Alternative/Research Hypothesis Ho1: Motivated employees are high performer. 3.4 Data Collection and Analysis 3.4.1 Methodology Research is a systematic method of finding solutions to problems. It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford woody, research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions, testing conclusions to determine whether they fit the formulated hypothesis. 3.4.2 Design We used both qualitative and quantitative methodology in data collection and data analysis. 3.4.3 Population The population of our research project was all employees of banking sector in Pakistan performing their jobs at different designations at middle level. However sample was taken from the following banks by their branches situated in various areas of Lahore i.e. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry)

Page 45

United Bank Limited (UBL) Habib Bank Limited (HBL) Saudi-Pak Bank (Silk bank) 3.3.4 Sample Size Sample of 50 respondents was obtained from each bank and they were 150 respondents in total. 3.3.5 Sampling The procedure adopted in the present study was convenience sampling. 3.3.6 Data Collection: A.Sour ces: There were two sources of data collection: Documents Surveys B. Research Tool The tools we used in our research process were: Documents Hierarchy

Job Description Job Specification Recruitment form KPI TAT Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 46

Surveys We collected data thorough questionnaire. C. Data Collection Strategy Following was the data collection strategy for our research: a. Questionnaire A well defined questionnaire that was used, effectively gathered information on both overall performance of the test system as well as information on specific components of the system. b. Nature of Questions Asked The questionnaire consisted of open ended, dichotomous, rating and ranking questions. c. Variables of the Study The direct variables of the study were job design, employee motivation and performance.

Indirect variables were the Job content, Job functions, Working relationships with other employees, Job rotation, Job enlargement, Job enrichment, Rating scales, Management by objectives (MBO), Peer or team evaluations, incentives, interpersonal relations, career development opportunities and performance appraisal system. d. Presentation of Data The data has been presented through charts and tables. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 47

3.3.7 Data Analysis The survey analyzed quantitatively, while interpretive analysis was used to analyze and examine further data in the research. Appropriate qualitative methodology, coding, memoing and graphic representation were used and the research report was written in narrative form. Correlation was used to test the hypothesis and draw inferences. 3.3.8 LIMITATIONS OF STUDY However we tried our best in collecting the relevant information for our research report, yet there are always some problems faced by the researcher. The prime difficulties which we faced in collection of information are discussed below: 1.Short time period: The time period for carrying out the research was short as a result of which many facts have been left unexplored. 2. Lack of resources: Lack of time and other resources as it was not possible to Conduct survey at large level. 3. Small no. of respondents: Only 150 respondents have been chosen which is a small number, to represent whole of the population 4. Unwillingness of respondents: While collection of the data many employees were unwilling to fill the questionnaire. Respondents were having a feeling of wastage of time for them. 5. Small area for research: The area for study was only three banks located in

Lahore, which is quite a small area to represent job satisfaction level of whole of the population. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 48

3.3.9 Ethics As MBA students, we were engaged in management research that added to the body of knowledge in our discipline. We are aware that our work will build on the shoulders of those who went before us and in turn others will build on our work. We have tried our best to meet professional, institutional and social standards for conducting research. Informed-consent rule: All three of us voluntarily participated in the research with full knowledge of relevant risks and benefits Confidentiality and privacy: Upholding individuals' rights to confidentiality and privacy is a central tenet of every research work. During research we interviewed different employees of the three banks. We devised different ways to ask whether participants were willing to talk about sensitive topics (like their salary, family e.t.c) without putting them in awkward situations. We provided a set of increasingly detailed interview questions so that employees could stop if they felt uncomfortable. While obtaining different confidential documents from the banks (like their evaluation and appraisal forms), we gave them information about how their data will be used, what will be done with their documents and audio recordings, and secured their consent. Limits of the Internet: As a great part of our research was conducted through internet, we were very cautious when exchanging confidential information electronically. This is because we were aware of the limitations of internet that it might be possible for others to tap into data that we thought was properly protected. Intellectual Property Right: The articles that we used in the literature review section of our thesis are the ones that have previously been published and that have been given the copyright by the publisher.

Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 49

4. Chapter DATA ANALYSIS 4.1 Data Analysis For data analysis we conducted questionnaire surveys. Our questionnaire consisted of 20 questions which were filled in by employees of three banks. Sample size of 150 was taken, 50 employees from each bank. Banks that we selected were HBL, MCB and Saudi Pak as it has been mentioned earlier. 4.2 Data Analysis Results The results were gathered from 150 questionnaires distributed in different banks. The results from employee survey are shown in tabulation and graphical method as under: Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 50

1. I am satisfied with the benefits (Health insurance, life insurance, etc.) I get from the bank Agree 31 31/150x100 = 20.66667% Disagree 79

79/150x100 = 52.6667% Undecided 3 3/150x100 = 2% Strongly agree 10 10/150x100 = 6.66667% Strongly Disagree 27 27/150x100 = 18% Total 150 100% Question one is about the satisfaction of employees from the benefits they get. From the above result we analyze that total 53% of employees are dissatisfied with the benefits, while only 28% are satisfied which is a very low ratio and 2% have no decision. 21% 53% 2% 7% 18% 0% 10% 20% 30% 40%

50% 60% 70% 80% 90% 100% Agree Disagree Undecided Strongly Agree Strongly Disagree 2. I feel that my job is secured one Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 51

Agree 59 59/150x100 = 39.3333% Disagree 13 13/150x100 = 8.66667% Undecided 29 29/150x100 = 19.33333% Strongly agree

47 47/150x100 = 31.33333% Strongly Disagree 2 2/150x100 = 1.33333% Total 150 100% Question two is about the job security. From the above result we analyze that total 39% of the employees are confident about their job security and a minor percentage o employees disagree with it while some couldnt come up with a decision. 39% 9% 19% 31% 1% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

100% A gree Disagree U ndecided Strongly Agree Strongly Disagree Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 52

3. My job does not create any physical aliments Agree 96 96/150x100 = 64% Disagree 21 21/150x100 = 14% Undecided 14 14/150x100 = 9.33333% Strongly agree 13 13/150x100 = 8.66667% Strongly Disagree 6 6/150x100 = 4%

Total 150 100% Question three is about the physical aliments like stress, hypertension, pain etc which an employee can experience because of routine work. Results show that total 72% of employees are agreed that their jobs do not create any physical aliment, while total 18% are disagreed and 9% are confused. 64% 14% 9% 9% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree

Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 53

4. There is a clear and effective system of appraisal and career development Agree 72 72/150x100 = 48% Disagree 19 19/150x100 = 12.66667% Undecided 22 22/150x100 = 14.66667% Strongly agree 21 21/150x100 = 14% Strongly Disagree 16 16/150x100 = 10.66667% Total 150 100% Question four is about the clear and effective system for career growth and total 64% of employees are agreed upon, while total 24% are disagreed and 15% couldnt decide it. 48%

13% 15% 14% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 54

Agree

71 71/150x100 = 47.33333% Disagree 6 6/150x100 = 4% Undecided 12 12/150x100 = 8% Strongly agree 53 53/150x100 = 35.33333% Strongly Disagree 8 8/150x100 = 5.33333% Total 150 100% Question eight is about reading the mindset of employees and result shows that total 82% of employees think that their performance is contributing to the well being of the organization, while 9% doesnt think so and 4% are confused. 47% 4% 8% 35% 5% 0% 10%

20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree 9. I feel adequate opportunity for periodic changes in duties Agree 39 39/150x100 = 26% Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 58

Disagree 63 63/150x100 = 42% Undecided 6 6/150x100 = 4% Strongly agree 14 14/150x100 = 9.33333% Strongly Disagree 28 28/150x100 = 18.66667% Total 150 100% Question nine is about the sufficient opportunities for periodic changes in duties. Results shows that total 61% of employees are disagreed, 35% are agreed and 4% couldnt make decision. Periodic changes should be given. 26% 42% 4% 9% 19% 0% 10% 20% 30%

40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree . 10. I can make changes to the tasks assigned to me Agree 17 17/150x100 = 11.33333% Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 59

Disagree 89 89/150x100 = 59.33333% Undecided 8 8/150x100 = 5.33333% Strongly agree 9 9/150x100 = 6% Strongly Disagree 27 27/150x100 = 18% Total 150 100% Question ten asks about the control of employees on their assigned tasks. Result shows that total 77% of employees have no control to modify their tasks and total 17% are agreed which is quite low, while 8% are doubtful. Management should provide the employees certain level of control on their handled tasks. Now the employees are starting to take on more and more challenging projects with confidence. This leaves a manager to do what they need to do -- manage. It also builds employee self esteem and confidence. A confident employee is one who is easily motivated. 11% 59% 5% 6% 18% 0%

10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree 11. I can use my own initiative to complete tasks that are not formally required as a part of my job Agree 21 21/150x100 = 14% Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 60

Disagree 61 61/150x100 = 40.66667% Undecided 26 26/150x100 = 17.33333% Strongly agree 9 9/150x100 = 6% Strongly Disagree 33 33/150x100 = 22% Total 150 100% Question eleven is asking about the level of involvement from the employees and result shows that total 63% of employees are disagreed on getting such level of involvement, while total 20% are agreed and 17% hadnt decided it yet. So, control on tasks can boost their level to such a point where employees can use their own initiatives to complete the tasks. 14% 41% 17% 6% 22% 0% 10% 20%

30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree 12. I am allowed to identify a variety of alternative solutions to organizational issues and problems Agree 29 29/150x100 = 19.33333% Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 61

Disagree 67 67/150x100 = 44.66667% Undecided 19 19/150x100 = 12.66667% Strongly agree 16 16/150x100 = 10.66667% Strongly Disagree 19 19/150x100 = 12.66667% Total 150 100% Question twelve is about the openness of organizations to new ideas. Result shows that total 66% of employees are disagreed, while 29% are agreed and 12% couldnt decide it. Organizations should welcome new ideas and solutions, it can really make employees confident and motivated. 19% 45% 13% 11% 13% 0% 10% 20%

30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree 13. I think my knowledge, skills and abilities are matching jobs requirement Agree 71 71/150x100 = 47.33333% Disagree 46 46/150x100 = 30.66667% Undecided 10 10/150x100 = 6.66667% Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 62

Strongly agree 19 19/150x100 = 12.66667% Strongly Disagree 4 4/150x100 = 2.66667% Total 150 100% Question thirteen is KSA analysis o employees and result shows that total 60% of employees think that their job fits them, while total 32% are disagreed and 7% couldnt come up with a decision. Right person at the right position is very necessary for the maximum performance. Manager can motivate his employees by assigning them tasks that they are best suited for. Everyone one has a unique set of skills and talents. These skills and talents are a huge resource for a savvy manager. By accentuating your employees strong points you make them feel good, and they are motivated because they can accomplish tasks best suited for them. 47% 31% 7% 13% 3% 0% 10% 20% 30% 40% 50% 60%

70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree 14. I feel satisfied with the hours worked each week Agree 34 34/150x100 = 22.66667% Disagree 57 57/150x100 = 38% Undecided 9 9/150x100 = 6% Strongly agree 11 11/150x100 = 7.33333% Strongly Disagree 39 39/150x100 = 26% Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry)

Page 63

Total 150 100% Question fourteen is about the working hours and result shows that total 64% of employees dont feel satisfied, while 30% feel so and 6% couldnt come up to a decision. Workload is the main factor of the performance, if employees are overburdened, they can't increase their productivity. Analyze the teams strength as well as individuals strength before assigning workloads. 23% 38% 6% 7% 26% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree

U ndecided Strongly Agree Strongly Disagree 15. I feel Flexibility in my scheduling Agree 21 21/150x100 = 14% Disagree 61 61/150x100 = 40.66667% Undecided 10 10/150x100 = 6.66667% Strongly agree 19 19/150x100 = 12.66667% Strongly Disagree 39 39/150x100 = 26% Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 64

Total 150 100% Question fifteen is about the flexibility in schedule. Result shows that 67% are disagreed, means they have a strict cyclic schedule, while 27% have flexibility and 7% didnt decide. Strict cyclic schedules can make employees dull, so flexibility and change in schedule can make them fresh and can enhance their performance. 14% 41% 7% 13% 26% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree

16. I am satisfied with the location of work Agree 59 59/150x100 = 39.33333% Disagree 31 31/150x100 = 20.66667% Undecided 18 18/150x100 = 12% Strongly agree 29 29/150x100 = 19.33333% Strongly Disagree 13 13/150x100 = 8.66667% Total 150 100% Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 65

Question sixteen is about the satisfaction of an employee from his/her work location. Result shows that total 58% of employees are satisfied from the locality of work, while total 30% are disagreed and 12% couldnt come up with a decision. If employee's workplace is comfortable like it is a good area or area near to his house, he will feel very comfortable with the tasks. 39% 21% 12% 19% 9% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree 17. I am satisfied with the amount of paid vacation time/sick leave offered Agree 19

19/150x100 = 12.66667% Disagree 59 59/150x100 = 39.33333% Undecided 4 4/150x100 = 2.66667% Strongly agree 20 20/150x100 = 13.33333% Strongly Disagree 48 48/150x100 = 32% Total 150 100% Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 66

Question seventeen is about the fringe benefits. Result shows that total 71% are dissatisfied with the benefits they are getting from their organizations, while total 26% are satisfied and 3% are undecided. 13% 39% 3% 13% 32% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree 18. My job description is clear Agree 59 59/150x100 = 39.33333%

Disagree 36 36/150x100 = 24% Undecided 8 8/150x100 = 5.33333% Strongly agree 36 36/150x100 = 24% Strongly Disagree 11 11/150x100 = 7.33333% Total 150 100% Question eighteen is about the clarity of the job description and total 63% of employees are agreed, while 31% are disagreed and 5% are confused. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 67

39% 24% 5% 24% 7% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree 19. I have the capability to achieve the targets in time Agree 58 58/150x100 = 38.66667% Disagree 18

18/150x100 = 12% Undecided 19 19/150x100 = 12.66667% Strongly agree 39 39/150x100 = 26% Strongly Disagree 16 16/150x100 = 10.66667% Total 150 100% Question nineteen asks about the ability of an employee to manage work. Result shows that total 63% of employees are agreed on the suitable timelines of targets, while total 23% are disagreed and 13% are confused. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 68

39% 12% 13% 26% 11% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree 20. I have Variety of job responsibilities Agree 63 63/150x100 = 42% Disagree 19

19/150x100 = 12.66667% Undecided 7 7/150x100 = 4.66667% Strongly agree 46 46/150x100 = 30.66667% Strongly Disagree 15 15/150x100 = 10% Total 150 100% Question twenty is about the roles of employee and result shows that total 53% of employees are agreed on the variety of roles they play as the responsibilities, while 23% are disagreed and 5% couldnt come up with a decision. Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 69

42% 13% 5% 31% 10% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% A gree Disagree U ndecided Strongly Agree Strongly Disagree Job Design w.r.t Employee Motivation and Job Performance (Pakistans Banking Industry) Page 70 Job Design w.r.t. Employee Motivation and Job Performance Download this Document for FreePrintMobileCollectionsReport Document Report this document?

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