Chapter 1 Problem and Its Background

1.1 Introduction Managing employees is greatly influenced and affected by the changes that are happening within its environment. In the current situation, more and more companies are implementing innovative strategies and approaches in managing their respective human resources or employees (Legge, 2005). It can be said that one of the major reasons for this transformations and changes is the realization of companies with regards to the important and significant contributions their employees and staff resources can generate (Lipiec, 2001) Along with the transition and changes of industrial relations, the management of staffs and employees are also changing. The world of labour and employment that has been dominated by the principles of structure, approach, practices, and system had changed with the times. In the working environment, people in the organisation forms a bond as they work together towards the attainment of a common objective. Hence, communication between the employees and other members of the company becomes essential and significant. In order to solve such working situation, the organization must make sure that the objectives and goals of the firm are met in such that the employees do not feel deprived of their own personal and career objectives. Organizations saw motivation as the solution for this issue. Hence, companies now view employees or human resource management as not just an approach for managing its workforce but a strategic principle and concept that enables the goals of both employers and employees to meet towards organizational goal achievement (William, 1996). This is because these contexts require the coordinated action of both employers and employees. Perhaps, the changes and transformation of employees

strategic management from personnel management is the most significant of all for employers and workforce (Sparrow, Brewster and Harris, 2004). From giving consideration only on the welfare of the employees, human

resourcemanagement system has been able to improve its goals and purpose through managing people in a manner that all the goals of their staffs and employees met and achieved (Sparrow, Brewster, and Harris, 2004). Through human resource management, employees are also provided with intrinsic and extrinsic types of motivation (Gomez-Mejia & Wiseman, 1997). According to Benham (1993), managing human resources used to be insignificant for industries. Nonetheless, the role and purpose of managing employees strategically now becomes highly regarded and cognized as an essential business concern and practice. The consideration of the management used to be on the mere security of conformity and obedience among employees. In this generation, the focus is more ambitious and is geared towards winning employee management commitment. A business cannot exist without having enough financial budgets, but it also can never exist without human resources or capital (Davis, 2003). It is the employees who work for the industry, performs the necessary obligations and tasks to make the entire company function, and are accountable for the profit and growth of firm or business (Ellis, 2000). With such great roles and accountabilities tasked to the staff/employees, they are being kept by the commercial industry through strategic compensation as well as benefits schemes (Ulrich, 1998). Nonetheless, there are some notions in which compensations and benefits are not enough to make workforce perform everything they can. Making employees give their best on their responsibilities and tasks is perhaps one of the most challenging efforts that the company should perform (Henderson, 1996).. Company should always give efforts on motivating their employees. Accordingly, motivating employees

means appraising and empowering their levels of engagement to lead the industry into the path of competitiveness (Bridges, 2001). Employment appraisal as well as engagement is important to give the employees enough reason to stay in the industry (Ellis and LindsayLowell, 1999). With different issues attached with employee or human resource management, specifically in meeting the needs of the employees, this dissertation aims on analysing how a company that provides low-wages and salaries can motivate their employees. 1.2 Research rationale The company that will be given consideration in this paper is set confidential for privacy reasons. The company have been named as Macrcom Company which is well recognised as a general fast food chain in Saudi Arabia. The company offers food services and products and have branches in the Kingdom of Saudi Arabia. The staff/employees of this company are their general representatives who basically give out everything they can. With this regard, the employee and employer relationship would not be able to function without wages and compensation. The organisational background of the company that will be given analysis in this dissertation presented several issues and problems that only emphasises and stresses the need for a study in determining strategies for employee motivation in the said company. In terms of appraisal of the employee engagement, so far, the approaches usually employed are compensation package for their employees. The studies mentioned earlier agree that employees need to be provided continuous opportunities for growth and development by becoming an important part of the company. Previous studies noted that company can have productive employee if they are being motivated to their responsibilities and to be engaged in the entire operation of the company (Lipiec, 2001; Ulrich, 1998).

This research study only covers the investigation on how Macrcom can motivate the employees in spite of providing low-wages and salary. The outcome of this study is limited only to the data gathered from books and journals about employee/staff empowerment, HRM, motivation which are publicly published and those that can be found through the internet search and search engine and from the primary data gathered from the result of the questionnaire survey that were conducted by the researcher. For this paper, the data is only limited with 50 employees which will be surveyed by the researcher. 1.3 Research Objectives Primarily, the main objective of this paper is to investigate how low-wage provider Company in Saudi Arabia motivates their employees. Specifically, the aim is to identify how Macrcom can motivate their employees based on the perception of their employees. 1.4 Research Question The fast paced business world is affecting companies in different parts of the world. With this ever changing business environment, companies like Macrcom in Saudi Arabia have to adjust in order to be able to remain competitive and to provide the needs of their employees. One way of maintaining a competitive edge is by ensuring the employee motivation is always considered in the company. Specifically, the study is set to answer the following questions: 1. Why is there a need for having employee motivation approach? 2. What are the problems regarding the current employee Motivation strategy of Macrcom? 3. What is the employee motivation Strategies of Macrcom? 1.5 Significance of the Study Low-wage companies are constantly facing and encountering pressures brought about different factors and aspects which hinder and obstruct efficient and effective transactions and operations. This results to greater responsibilities faced by the management (Sparrow,

Brewster & Harris, 2004). The competitive market environment within specific companies intensifies the need of business organizations to ensure that their employees are wellmanaged even if they are given low-wages and salaries (Wangury, 1996). The market environments are fast becoming complicated added to the fact that it quickly transforms and changes which entails business to concentrate on factors which are most essential to their organizations survival (David, 2003) In this light, it is essential that business like Macrcom must be given value with their employees by motivating them. Studying the essential and significant consideration relevant to the company to serve the purpose as well as objectives of the company will determine and identify its success. Hence this paper aims on analysing the need for employee motivation programme of a low-wage company through the perspective of their employees. This paper is significant as it will serve as a guideline for other low-wage companies on how to retain good employees. This research paper will also be significant to low-wage Company in Saudi Arabia. The survey of the research study will help determine how low-wage Company in Saudi Arabia motivate their employees. In addition, this will also help initiate and implement management as it may pinpoint ways on motivating efficiently their employees, which could mostly be relevant to the achievement of employee satisfaction. 1.6 Scope and Limitation This paper will only cover the discussion on low-wage companies and how they can be able to motivate their employees. The conclusions derived from this study are limited to the lowwage company chosen in this study and how it can increase its profitability by motivating their employees. Also the conclusions derived are limited to the sample size selected and the actual response rate, as well as the type of respondents and the ratio of respondents over actual company size.

Review of relevant studies and documents will be limited to scholarly works written in terms of employee motivation, which can be found through the internet and other published articles that focus on human resource management system, employee management, and low-wage Company. However, sources on the theoretical framework will be exempted. Data will be primarily gathered from 50 employees of Macrcom. . In this research, time will be the greatest restriction, which may also be a barrier for having long-term end-result objectives. If the researcher will be given more time, it will be possible to consider other motivational theories and consider more employees from multiple lowwage companies than a single company. Other factors like socio-economic context are beyond the control as well as administration of the researcher of this study and can generate many variables within the research. 1.7 Organization of the research dissertation in sections The data collated through the primary resources and through the review of relevant literature, the employed, and utilised of the methodology mentioned earlier as well as data analysis will be presented in diverse and variety of sections. The summaries of each section and part will be as follows: Part 1 is the Introduction stating the rationale behind the paper. Sections which include background of the study, rational, objectives, questions, scope and limitations and the organization of the research study as well as limitation of the paper will be discussed. Part 2 will present the information or general idea of the context of employee motivation theories, employee motivation as well as other relevant literature which have been documented in the past or previously documented. This may include literature about lowwage Company in Saudi Arabia, employee loyalty and satisfaction. Part 3 will focus on the discussion of the employee motivation needs of the low-wage company in Saudi Arabia and the how it can be implemented and matters concerning

employee motivation which will affect its implementation in the low-wage company in Saudi Arabia. Part 4 this section will provide insightful details about the most suitable employee motivation based on the perception for their clients. Part 5 this part will provide details on implementation strategy that Low-wage Company in Saudi Arabia can be employed and utilised to ensure the success of considering customersatisfaction index