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6/14/2012
Enhancing Productivity Through Employee MotivationSAKSHAM SARKAR
ONGC MANAGEMANT PROJECT REPORT
INDEX
CONTENTS
1. ABSTRACT.......................................................................................................................................4
2. INTRODUCTION...............................................................................................................................5
3. ABOUT THE ORGANIZATION.........................................................................................................6
4. SCOPE OF THE PROJECT:..........................................................................................................11
5. PROJECT REPORT THEORETIZING: EMPLOYEE MOTIVATION..............................................11
6. AREAS OF CONCERN...................................................................................................................12
6.1. WHAT ARE REWARDS?..............................................................................................................................126.2. WHO MOTIVATES EMPLOYEES?................................................................................................................126.3. IS EVERYBODY MOTIVATED?.....................................................................................................................13
7. THEORIES OF MOTIVATION........................................................................................................13
7.1. EARLY THEORIES OF MOTIVATION............................................................................................137.1.1. MASLOW’S HIERARCHY OF NEEDS THEORY:.........................................................................................137.1.2. MCGREGOR’S THEORY X AND THEORY Y............................................................................................147.1.3. HERZBERG’S MOTIVATION-HYGIENE THEORY:......................................................................................157.2. CONTEMPORARY THEORIES OF MOTIVATION:.......................................................................157.2.1. THREE-NEEDS THEORY (MCCLELLAND) {MOTIVATION AND NEEDS}:..................................................157.2.2. GOAL-SETTING THEORY {MOTIVATION AND GOALS}:...........................................................................167.2.3. REINFORCEMENT THEORY {MOTIVATION AND BEHAVIOR }:..................................................................177.2.4. JOB DESIGN {DESIGNING MOTIVATING JOBS}:......................................................................................177.2.5. EQUITY THEORY {MOTIVATION AND PERCEPTION}:..............................................................................187.2.6. EXPECTANCY THEORY (VROOM) {MOTIVATION AND BEHAVIOR }:........................................................19
8. CURRENT ISSUES IN MOTIVATION............................................................................................21
9. MISCONCEPTIONS ABOUT MOTIVATION AND EMPLOYEE SATISFACTION.........................23
10. VALUES, ATTITUDES & EMPLOYEE WORK MOTIVATION.......................................................24
11. ECONOMIC MODELS OF EMPLOYEE MOTIVATION..................................................................25
11.1. SIMPLE SUPPLY & DEMAND MODELS OF LABOUR MARKETS..........................................2511.2. SPECIAL PROBLEMS IN LABOUR MARKETS.........................................................................2611.3. PIECE RATES:...............................................................................................................................2711.4. PERFORMANCE BONDING:........................................................................................................2711.5. EFFICIENCY WAGES:..................................................................................................................28
12. EFFECT OF VARIOUS FACTORS ON MOTIVATION...................................................................28
13. WAYS TO IMPROVE PRODUCTIVITY AT THE WORKPLACE....................................................29
14. INCENTIVES AND REWARDS......................................................................................................33
14.1. EXTRINSIC REWARDS.......................................................................................................................3314.2. INTRINSIC REWARDS.........................................................................................................................33
15. CURRENT TREND IN THE ORGANIZATION................................................................................34
16. CORPORATE ANALYSIS..............................................................................................................35
16.1. SCOPE OF THE ANALYSIS:........................................................................................................3516.2. METHOD USED:............................................................................................................................3516.3. STATISTICAL TOOLS USED:......................................................................................................3516.5. PARAMETERS:..............................................................................................................................3516.6. INFERENCES:................................................................................................................................35
17. RECOMMENDATIONS...................................................................................................................36
18. CONCLUSION................................................................................................................................36
1. ABSTRACT
The globalization of businesses and the advancement of information technologies have brought changes that are reshaping the world of work. They alter the way business is done, the way employees behave and the way managers manage their employees. Motivating and to retaining employees have become an important and complex task for the managers. The key to performing this task well is to find out more about the factors that motivate employees.
The study aims to establish the correlation between management and motivation of employees. To have a sound human resource management strategy that attracts, retains and motivates the valuable employees, it is important that the managers find out what the employees are looking for from their jobs. The company should constantly assess the employees’ motivation levels and also what they need, want or expect from their work.
This study used a questionnaire analysis comprising of questions related to the factors affecting employee motivation, in order to test the motivational level of the employees at ONGC’s Neelam&Heera Asset. After being validated by appropriate statistical methods, the results show that there is a correlation between management and employee motivation. The results are critically discussed in terms of each motivational factors.
Every manager differs in the way he or she manages. The key to motivating employees and manage them in ways that lead to profits, productivity, innovation, and organizational effectiveness is to understand how to motivate them.
2. INTRODUCTION
Managers are continually challenged to motivate a workforce to do two things. The first challenge is to motivate employees to work toward helping the organization achieve its goals. The second is to motivate employees to work toward achieving their own personal goals. Meeting the needs and achieving the goals of both the employer and the employee is often difficult for managers in all types of organizations. In health care, however, this is often more difficult, in part as a result of the complexity of healthcare organizations, but also as a function of the wide array of employees who are employed by or work collaboratively with healthcare providers in delivering and paying for care. The types of workers run the gamut from highly trained and highly skilled technical and clinical staff members to relatively unskilled workers. To be successful, healthcare managers need to be able to manage and motivate this wide array of employees.
Motivation is the catalyst that spurns employees' eagerness to work without pressure. To motivate is to provide employees with a motive to do some tasks. It is to cause or provoke somebody to act either positively or negatively. To say that nobody can motivate employees at work is like saying there are no influential leaders, that there are no effective managers, that there are no motivational speakers, that the psychologists in sports management teams are useless and that motivation is not achievable. Motivation has been used by effective managers to prompt ordinary people to achieve uncommon results in all fields of endeavours.
Employee motivation has always been a central problem for leaders and managers. Unmotivated employees are likely to spend little or no effort in their jobs, avoid the workplace as much as possible, exit the organization if given the opportunity and produce low quality work. On the other hand, employees who feel motivated to work are likely to be persistent, creative and productive, turning out high quality work that they willingly undertake. There has been a lot of research done on motivation by many scholars, but the behavior of groups of people to try to find out why it is that every employee of a company does not perform at their best has been comparatively un-researched. Many things can be said to answer this question; the reality is that every employee has different ways to become motivated. Employers need to get to know their employees very well and use different tactics to motivate each of them based on their personal wants and needs.
The dictionary Webster's defines motivation as something inside people that drives them to action. This motivation varies in different people. We can also say that motivation is the willingness to work at a certain level of effort. Motivation emerges, in current theories, out of needs, values, goals, intentions, and expectation. Because motivation comes from within, managers need to cultivate and direct the motivation that their employees already have.
Motivation comes from within us such as thoughts, beliefs, ambitions, and goals. The people who are most interested in motivation studies are managers of people because they may provide insights into why people perform at work as they do, and as a result provide managers with techniques to improve worker productivity.
This research work's aim was to find out if it is possible to adequately compensate employees and how managers and team heads can motivate their employees with the scarce resources available to them.
3. ABOUT THE ORGANIZATION
Oil and Natural Gas Corporation Limited (ONGC) is India's Most Valuable Company, having a market share of above 80% in India's Crude Oil and Natural Gas Exploration and Production. ONGC’s vision has always been: To be global leader in integrated energy business through sustainable growth, knowledge excellence and exemplary governance practices.
“NEW VISION” SET BY PRESIDENT OF INDIA:
To give world leadership in management of energy source, exploration of energy sources and its diversification, technology in underground coal gasification and new ways of tapping energy, wherever it is, to meet the ever growing demand of the country and make the nation energy independent before 2030.
MISSION:
World class
Dedicated to excellence by leveraging competitive advantages in R&D and technology with
involved people.
Imbibe high standards of business ethics and organizational values.
Abiding commitment to Health, Safety and Environment to enrich quality of community life.
Foster a culture of trust, openness and mutual concern to make working a stimulating and
challenging experience for our people.
Strive for customer delight through quality products & services.
Integrated in Energy Business
Focus on domestic and international Oil & Gas exploration and production business opportunities.
Provide value linkages in other sectors of energy business
Create growth opportunities and maximize share holder value.
Dominant Indian Leadership
Retain dominant position in the Indian petroleum sector and enhance India’s energy availability
The achievements of the organization for the financial year 2011-12, have been summarized as under:
1. Reserve accretion highest in last 2 decades = 84.13 Mtoe (Million Tonne of Oil Equivalent)
2. ONGC records highest-ever Turnover and PAT
3. ONGC records highest-ever profit4. Highest-ever dividend paying company in India
5. Standalone ONGC’s Net worth crosses Rs.1,00,000 Crore6. Highest-ever Net-Worth; up by 18% since the last financial year.
7. Highest-ever subsidy sharing: Rs. 44,466 Crore; up by 79%
8. Rs.121,737 CroreCapex in last 5 years
TRANSCENDING BOUNDRIES---------GLOBAL FOOTSTEPS:
4. SCOPE OF THE PROJECT: The scope of the project is to study the behavior of the employees in the organization and how they are
affected by their work environment and the policies which the company follows in order to motivate employees and determining different techniques which can be utilized thereby improving the efficiency of the employees and contributing to the growth of the organization.
5. THEORETIZINGPROJECT REPORT: EMPLOYEE MOTIVATION
1.2.3.4.5.
What Is Motivation?
A motive is “something (a need or desire) that causes a person to act.” Motivate, in turn, means “to provide with a motive,” and motivation is defined as “the act or process of motivating.” Thus, motivation is the act or process of providing a motive that causes a person to take some action. In most cases motivation comes from some need that leads to behavior that results in some type of reward when the need is fulfilled.
In an organizational setting, motivation is the willingness to exert high levels of effort to reach organizational goals, conditioned by the effort’s ability to satisfy some individual need. Motivation is the result of an interaction between the person and a situation and is not a personal trait. It can simply be defined as a process by which a person’s efforts are energized, directed, and sustained towards attaining a goal.
Energy: a measure of intensity or drive. Direction: toward organizational goals Persistence: exerting effort to achieve goals.
Effort is a measure of intensity. When we speak about someone being motivated, we mean that the person tries hard. But high levels of effort may not lead to favorable job performance unless the effort is channeled in the direction that benefits the organization. Need is some internal state that makes certain outcomes appear attractive. In a work setting, the person may have a need to be promoted. This may motivate the person to exert high levels of job performance in order to meet the need. Motivation works best when individual needs are compatible with organizational goals.
Exhibit 10-1 The Motivation Process
An unsatisfied need creates tension; this tension drives a person to satisfy the need. A motivated employee works intensely and persistently. However, effort and persistence will not pay off unless they are channeled in a direction that benefits the organization.Motivation is the key to performance improvement. People will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Moreover, motivation is a skill which can and must be learnt & is essential for any business to survive and succeed.
Performance is thus, considered to be a function of ability and motivation:
Job performance =f(ability)(motivation)
Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation.
Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance
These are the basic strategies, though the mix in the final 'recipe' will vary from workplace situation to situation. Essentially, there is a gap between an individuals actual state and some desired state and the manager tries to reduce this gap.
Motivation is, in effect, a means to reduce and manipulate this gap. It is inducing others in a specific way towards goals specifically stated by the motivator. Naturally, these goals as also the motivation system must
Drives
SearchBehaviour
Tension Reductionof Tension
SatisfiedNeed
UnsatisfiedNeed
conform to the corporate policy of the organization. The motivational system must be tailored to the situation and to the organization.
6. AREA S OF CONCERN Motivating the workforce of an organization to work more effectively towards the organization’s goals is
perhaps the most fundamental task of management. Organizations motivate their workforce to perform effectively by offering them rewards for satisfactory performance and concern shown for unsatisfactory performance. Over the past hundred years or so there has been an evolution in the view of what the term ‘rewards’ actually means in an organizational context.
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6.1. What are Rewards?Rewards can take two forms. They can be either intrinsic/internal rewards or extrinsic/external ones.
Intrinsic rewards are derived from within the individual. For a healthcare employee this could mean taking pride and feeling good about a job well done (e.g., providing excellent patient care). Extrinsic rewards pertain to rewards that are given by another person, such as a healthcare organization giving bonuses to teams of workers when quality and patient satisfaction are demonstrated to be exceptional.
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6.2. Who Motivates Employees?While rewards may serve as incentives and those who bestow rewards may seek to use them as
motivators, the real motivation to act comes from within the individual. Managers do exert a significant amount of influence over their employees, but they do not have the power to force a person to act. They can work to provide various types of incentives in an effort to influence an employee in any number of ways, such as by changing job descriptions, rearranging work schedules, improving working conditions, reconfiguring teams, and a host of other activities. While these may have an impact on an employee’s level of motivation and willingness to act, when all is said and done, it is the employee’s decision to take action or not. In discussing management and motivation, it is important to continually remember the roles of both managers and employees in the process of
motivation.
6.2.
6.3. Is Everybody Motivated?As managers, it is often assume that employees are motivated or will respond to inducements from
managers. While this is a logical and rational approach from the manager’s perspective, it is critical to understand that this is not always the case. While the majority of employees do, in fact, want to do a good job and are motivated by any number of factors, others may not share that same drive or high level of motivation. Those folks may merely be putting in time and may be more motivated by other things, such as family, school, hobbies, or other interests. Keeping this in mind is useful in helping managers understand employee behaviors that seem to be counter-productive.
7. THEORIES OF MOTIVATION There are various theories on motivation which can be broadly classified into two categories, namely:
Early Theories:
Maslow’s Hierarchy of Needs MacGregor’s Theories X and Y Herzberg’s Two-Factor Theory
Contemporary Theories:
Three-Needs Theory Goal-Setting Theory Reinforcement Theory Designing Motivating Jobs Equity Theory Expectancy Theory
1.2.3.4.5.6.7.
7.1.EARLY THEORIES OF MOTIVATION
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7.1.1. Maslow’s Hierarchy of Needs Theory: In case of Maslow’s theory, the Needs were categorized into five levels of lower- to higher-order requirements. Individuals must satisfy lower-order needs before they can satisfy higher order needs. However, satisfied needs will no longer motivate the person. But, motivating a person depends on knowing at what level that person is on the hierarchy of needs.
Hierarchy of needs can be divided into two categories:
Lower-order (external): Physiological (Lowest): food, drink, shelter, and other bodily requirements. Safety: Security and protection from physical and emotional harm.
Higher-order (internal): Social: Affection, belongingness, acceptance, and friendship. Esteem: Internal factors such as self-respect, autonomy, achievement, and external factors such as
status, recognition, and attention. Self-actualization (Highest): Growth, achieving one’s potential, and self-fulfillment; the drive to become
what one is capable of becoming.
Exhibit 16–1 Maslow’s Hierarchy of Needs
7.1.2. McGregor’s Theory X and Theory Y Douglas McGregor proposed two distinct views about human nature--one a negative view, Theory X, and one a positive view called Theory Y. If a manager sees people as irresponsible and lazy, they will follow Theory X and assume the following:
1. Employees inherently dislike work and will try to avoid it.2. Since employees dislike work, they must be coerced, controlled, or threatened to achieve goals.3. Employees avoid responsibilities and seek formal direction, if possible.4. Most workers place security above all other work-related factors and will display little ambition.
However, Theory Y managers see people as responsible and conscientious, and assume the following:
1. Employees can view work as being as natural as rest or play.2. When committed to their objectives, people will exercise self-direction and self-control3. The average person can learn to accept, even seek, responsibility. 4. Many workers besides managers have innovative decision-making skills.
No hard evidence confirms that either set of assumptions is universally true. It is more likely that the assumptions of Theory X or Theory Y may or may not be appropriate, depending on the situation at hand.
In short,
Theory X: It assumes that workers have little ambition, dislike work, avoid responsibility, and require close supervision.
Theory Y: It assumes that workers can exercise self-direction, desire responsibility, and like to work.
Assumption: Motivation is maximized by participative decision making, interesting jobs, and good group relations.
7.1.3. Herzberg’s Motivation-Hygiene Theory: It attempted to explain why job satisfaction does not result in increased performance. Job satisfaction and job dissatisfaction are created by different factors.
Hygiene factors: extrinsic (environmental) factors that create job dissatisfaction. Motivators: intrinsic (psychological) factors that create job satisfaction.
The opposite of satisfaction is not dissatisfaction, but rather no satisfaction.
Exhibit 16–2 Herzberg’s Motivation-Hygiene Theory
Exhibit 16–3 Contrasting Views of Satisfaction-Dissatisfaction
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7.2.CONTEMPORARY THEORIES OF MOTIVATION:
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7.2.1. Three-Needs Theory (McClelland) {Motivation and Needs}: David McClelland proposed the three-need theory which asserts that there are three relevant motives or needs that motivate behavior in the workplace:
1. The need for achievement (nAch): The drive to excel and succeed, to achieve in relation to a set of standards, to succeed.
2. The need for power (nPow): It is the need to shape, influence and control the behavior of others. 3. The need for affiliation (nAff): It is the desire for interpersonal relationships. He believed that these needs
are acquired from the culture of a society.
Some people have a compelling drive to succeed, but they strive for personal achievement, not for the rewards of success, per se (nAch). These high achievers seek situations in which they can take responsibility for solving problems, can receive rapid unambiguous feedback on performance, and can set moderately challenging goals. Persons with a high need for power (nPow) desire to be influential, in charge, and seek competitive, status-oriented situations. Those who have a high need for affiliation (nAff) want to be liked and accepted by others; so, they strive for friendships, cooperation, and high-trust situations.
Exhibit 16–4 Examples of Pictures Used for Assessing Levels of nAch, nAff, and nPow
7.2.2. Goal-Setting Theory {Motivation and Goals}: It proposes that setting goals that are accepted, specific, and challenging yet achievable will result in higher performance than having no or easy goals. However, it is culture bound to the U.S. and Canada. None-the-less, the benefits of Participation in Goal-Setting are:
Increases the acceptance of goals. Fosters commitment to difficult, public goals. Provides for self-feedback (internal locus of control) that guides behavior and motivates performance (self-
efficacy).
Exhibit 16–5 Goal-Setting Theory
7.2.3. Reinforcement Theory {Motivation and Behavior }: It assumes that a desired behavior is a function of its consequences, is externally caused, and if reinforced, is likely to be repeated. Also, Positive reinforcement is preferred for its long-term effects on performance.
Moreover, ignoring undesired behavior is better than punishment which may create additional dysfunctional behaviors.
7.2.4. Job Design {Designing Motivating Jobs}: It can be defined as the way into which tasks can be combined to form complete jobs. The various factors influencing job design are:
Changing organizational environment/structure The organization’s technology Employees’ skill, abilities, and preferences Job enlargement: Increasing the job’s scope (number and frequency of tasks) Job enrichment: Increasing responsibility and autonomy (depth) in a job.
Job Characteristics Model (JCM):
It is a conceptual framework for designing motivating jobs that create meaningful work experiences that satisfy employees’ growth needs. Five primary job characteristics:
Skill variety: how many skills and talents are needed? Task identity: does the job produce a complete work? Task significance: how important is the job? Autonomy: how much independence does the jobholder have? Feedback: do workers know how well they are doing?
Exhibit 16–6 Job Characteristics Model
Exhibit 16–7 Guidelines for Job Redesign
Suggestions for Using the JCM:
Combine tasks (job enlargement) to create more meaningful work. Create natural work units to make employees’ work important and whole. Establish external and internal client relationships to provide feedback. Expand jobs vertically (job enrichment) by giving employees more autonomy. Open feedback channels to let employees know how well they are doing.
7.2.5. Equity Theory {Motivation and Perception}: It proposes that employees perceive what they get from a job situation (outcomes) in relation to what they put in (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others.Employees compare their job inputs and outcomes with others. There are three possible perceptions: inequity due to being under-rewarded, equity, or inequity due to being over-rewarded. Equity theory proposes that inequity creates tension, and that this tension can cause an employee to seek fairness. The referent with which employees choose to compare themselves is an important variable. There are three referents that an employee can use: self, system, and other. Self refers to ratios that are unique to the individual and reflects personal experiences and contacts. System considers organizational pay policies and procedures. Other includes individuals with similar jobs in the same organization and friends, neighbours, or professional associates. Using these comparators, the individuals will compare their pay to others.
If the ratios are perceived as equal then a state of equity (fairness) exists. If the ratios are perceived as unequal, inequity exists and the person feels under- or over-rewarded. When inequities occur, employees will attempt to do something to rebalance the ratios (seek justice).
Employees who perceive an inequity will react in one of five ways:
Distort either their own or others’ inputs or outcomes; Behave so as to induce others to change their inputs or outcomes; Behave so as to change own inputs (increase or decrease efforts) or outcomes (seek greater rewards). Choose a different comparison referent; Quit their job.
Equity theory recognizes that individuals are concerned not only with the absolute rewards they receive but also with the relationship of those rewards to what other receive.
Distributive justice: The perceived fairness of the amount and allocation of rewards among individuals (i.e., who received what). This influences an employee’s satisfaction.
Procedural justice: The perceived fairness of the process used to determine the distribution of rewards (i.e., how who received what). This affects an employee’s organizational commitment.
Exhibit 16–8 Equity Theory
7.2.6. Expectancy Theory (Vroom) {Motivation and Behavior }: It states that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. The key to the theory is understanding and managing employee goals and the linkages among and between effort, performance and rewards. For example, an employee will be motivated to produce more when he or she believes that the effort will lead to a good performance appraisal; that a good appraisal will lead to organizational rewards; and that the rewards will satisfy the employee’s personal goals. This theory focuses on three relationships:
The effort-performance relationship: It isthe probability perceived by the individual that exerting a given amount of effort will lead to performance.
The performance-reward relationship: It is the degree to which an individual believes that performing at a particular level will lead to the attainment of a desired outcome.
Attractiveness: It is the importance the individual places on the potential reward (goals) that can be achieved on the job.
Expectancy Theory
Expectancy Relationships
Expectancy (effort-performance linkage): The perceived probability that an individual’s effort will result in a certain level of performance.
Instrumentality: The perception that a particular level of performance will result in the attaining a desired outcome (reward).
Valence: The attractiveness/importance of the performance reward (outcome) to the individual.
Exhibit 16–9 Simplified Expectancy Model
3. Attractiveness relationship
1. Effort-performance relationship2. Performance-rewards relationship
IndividualEffort
IndividualPerformance
IndividualGoals
OrganizationalRewards
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3
Exhibit 16–10 Integrating Contemporary Theories of Motivation
8. CURRENT ISSUES IN MOTIVATION 1) Cross-Cultural Challenges
Motivational programs are most applicable in cultures where individualism and quality of life are cultural characteristics:
Uncertainty avoidance of some cultures inverts Maslow’s needs hierarchy. The need for achievement (nAch) is lacking in other cultures. Collectivist cultures view rewards as “entitlements” to be distributed based on individual needs, not
individual performance. Cross-Cultural Consistencies: Interesting work is widely desired, as is growth, achievement, and
responsibility.2) Motivating Unique Groups of Workers
Motivating a diverse workforce through flexibility: Men desire more autonomy than do women. Women desire learning opportunities, flexible work schedules, and good interpersonal relations.
3) Flexible Work/Job schedules Compressed work week: Longer daily hours, but fewer days Flexible work hours (flextime): Specific weekly hours with varying arrival, departure, lunch and break
times around certain core hours during which all employees must be present. Job Sharing: Two or more people split a full-time job. Telecommuting: Employees work from home using computer links.
4) Motivating Professionals Characteristics of professionals
Strong and long-term commitment to their field of expertise. Loyalty is to their profession, not to the employer.
Have the need to regularly update their knowledge. Don’t define their workweek as 8:00 am to 5:00 pm.
Motivators for professionals Job challenge Organizational support of their work
5) Motivating Contingent Workers Opportunity to become a permanent employee Opportunity for training Equity in compensation and benefits
6) Motivating Low-Skilled, Minimum-Wage Employees Employee recognition programs Provision of sincere praise
7) Designing Appropriate Rewards Programs Open-book management: Involving employees in workplace decision by opening up the financial
statements of the employer. Employee recognition programs: Giving personal attention and expressing interest, approval, and
appreciation for a job well done. Pay-for-performance: Variable compensation plans that reward employees on the basis of their
performance: Piece rates, wage incentives, profit-sharing, and lump-sum bonuses. Stock option programs: Using financial instruments (in lieu of monetary compensation) that give
employees the right to purchase shares of company stock at a set (option) price. Options have value if the stock price rises above the option price; they become worthless if the stock price falls below the option price.
Exhibit 16–11 Recommendations for Designing Stock Options
Variables affecting the motivational process in organizational settings
9. MISCONCEPTIONS ABOUT MOTIVATION AND EMPLOYEE SATISFACTION
Managers tend to have many misconceptions about motivation. As a manager, it is important to assess and understand such misconceptions in an effort to become more effective managers and to not perpetuate myths about motivation. For example, research indicates that managers typically make incorrect assumptions about what motivates their employees. Morse states that “managers are not as good at judging employee motivation as they think they are. In fact, people from all walks of life seem to consistently misunderstand what drives employee motivation.”The following are enumerations of many of these misconceptions:1. Although I’m not motivated by extrinsic rewards, others are . This idea is discussed by Morse and the
conclusion is that an “extrinsic incentive bias” exists and is, in fact, wide-spread among managers and employees. That is, individuals assume that others are driven more by extrinsic rewards than intrinsic ones. This has been shown to be a false assumption.
2. All motivation is intrinsic. Managers need to remember that typically a combination of factors motivates employees, not just one type of extrinsic or intrinsic reward.
3. Some people just are not motivated. Everyone is motivated by something; the problem for managers is that “that something” may not be directed toward the job. This creates challenges for managers who must try to redirect the employees’ energies toward job-related behaviors.
4. People are motivated by money . Compensation motivates only to a point; that is, when compensation isn’t high enough or is considered to be inequitable, it’s a de-motivator. In contrast, when it is too high, it also seems to be a de-motivator, and results in individual performance being tempered to protect the higher compensation level. Generally, employees tend to rank pay as less important than other motivators. This is supported by the 1999 Hay Group study, where 500,000 employees ranked fair pay and benefits as the least important of 10 motivating factors that keep them committed to staying with their companies. The bottom line is that “as soon as money is predictable, it is an entitlement, not a motivator”.
5. Motivation is manipulation. Manipulation carries negative implications; in contrast motivation is positive and benefits both management and the employee.
6. One-size-fits-all reward and recognition programs motivate staff. People, being people, are different, act in different ways, and are motivated by different things. Tailoring rewards and recognition is viewed as a way to focus on and understand the individual and his/her unique qualities.
7. Motivational people are born, not made. Studies show that people aren’t born to motivate. In fact, Manion states “anyone can become an effective motivator. It simply takes an understanding of the theories and basic principles”, as well as the desire to develop these skills.
8. There is one kind of employee satisfaction. In the short run employees respond to specific rewards that they receive personally, but in the longer run they respond to quality performance of the team and the organization. Thus, they migrate from being self-centered to being other-centered in terms of job satisfaction—from a “me” to a “we” mentality.
10. VALUES, ATTITUDES & EMPLOYEE WORK MOTIVATION
VALUESValues are enduring beliefs that a specific mode of conduct or end state of existenceis personally or socially preferable to an opposite or converse mode of conduct or endstate of existence. Values are important because they affect howindividuals behave on their jobs in terms of what is wrong or right. Some basic values,which are expected to affect the attitude and work motivation of an employee, wouldlogically include:1. Family: The extent to which the job offers family well-being to the employees2. Recreation: The extent to which the job offers recreational facilities to theemployees3. A sense of accomplishment: The degree to which the person feels the job givesthe person a sense of
accomplishment after the job is done.4. Advancing at the company: The degree to which the person feels the job willcreate opportunities for
advancement5. Financial security: The extent to which the job offers financial security to person.6. Integrity: The extent to which the job provides information accurately andemphasizes impartiality and
recognizes different points of view
ATTITUDESAttitudes are not the same as values. Attitudes are evaluative statements –either favorable or unfavorable—concerning objects people, or events. The maintenance of work-related behaviors implies that the conditions of the job somehow provide the needs of the individuals, fostering a sense of satisfaction. It has been treated both as a general attitude and as satisfaction with five specific dimensions of job: pay, the work itself, promotion, opportunities, supervision and co-workers. The combined effect of these factors produce for the individual some measure of satisfaction and dissatisfaction. Definitions of these dimensions of the job are given as under:Definitions of key Job Dimensions:
Job Dimensions DefinitionWork Satisfaction: The extent to which an employee is satisfied with work, including opportunities for creativity
and task variety, allowing an individual to increase his or her knowledge, changes in responsibility, amount of work, security, and job enrichment
Pay Satisfaction: The extent to which an employee forms an attitude toward pay based on perceived difference between actual pay and the expected pay. Expected pay is based on the value of perceived inputs and outputs of the job and the pay of other employees holding similar jobs or possessing similar qualifications.
Supervision Satisfaction:
The extent to which an employee is satisfied with his or supervision, as measured by consideration and employee-centered actions of the supervisor and the perceived competency of the supervisor by the subordinate.
Satisfaction with promotions:
The degree to which an employee is satisfied with the Company’s promotion policy, including frequency of promotions, and the desirability of promotions.
Co-workers’ Satisfaction:
The work-related interaction and the mutual liking or admiration of fellow employees.
Overall Job Satisfaction:
The extent to which an individual’s desires, expectations and needs are fulfilled by employment.
Leadership Behavior and Employee motivation:Leadership behavior plays a very important role in enhancing employee job satisfaction, work motivation and work performance. The major type of supervisory behavior that has been identified as influencing work motivation and performance include positive achievement behavior and the behavior that is expected to lead to dissatisfaction include authoritarian or arbitrary and punitive behavior.
Positive achievement motivation behavior:In this case a supervisor attempts to create a positive work environment through encouragement, recognition and positive reinforcement of behavior.
Authoritarian:In this case a supervisor exercises autocratic control to ensure conformity to work methods they prescribe. Information from different studies on leader behavior indicates that autocratic behavior leads to dissatisfaction among employees and demonstrating positive motivational behavior becomes instrumental in motivating employee work performance. The discussion of the effectiveness of employee values, attitudes and leader behavior indicates that while values and attitudes are relatively more instrumental in inducing intrinsic motivation, leadership styles can be more effective in enhancingextrinsic motivation, primarily because employee attitudes and leadership characteristics influence employee beliefs about obtaining intrinsic and extrinsic rewards respectively.
11. ECONOMIC MODELS OF EMPLOYEE MOTIVATION
To most people it is a commonsense proposition that hiring labor is a trickier problem for a business than buying ballpoint pens. In addition to the fact that it is often difficult to find the right worker to hire, workers who have already been hired can quit, steal, be hung over, refuse to cooperate with other workers, or simply not work very hard. In some workplaces some of these problems are relatively easy to solve by either direct supervision or by directly linking pay to production. In general, however, things like ability levels, effort levels, and dishonesty are difficult to verify and present special problems for personnel managers and economic theorists. The ways that firms solve the problems of selecting, motivating, and retaining employees are potentially interesting to a wide cross-section of economists because they can affect how labor markets function and, therefore, how the entire economyoperates.
There are a variety of compensation strategies that businesses use to address these kinds ofproblems. Broadly speaking, these solutions fall into three categories (withconsiderable diversity within each): piece rates, performance bonding, andefficiency wages. Piece rates directly link pay to workers’ output. Performancebonding uses combination of up-front payments from workers and conditionalrepayments to guarantee theirperformance. Firms that pay wageshigh enough to deter undesirable behavior by making a job too good to loseare said to pay efficiency wages. It is fairly easy to see whether a firm isusing some sort of piece rate plan. There is quite a bit of controversy, however,about whether firms that do not use piece rates adopt efficiency-wageor performance-bonding plans. We follow our overview with a discussion ofthe nature of the evidence that supports the different models.
1.2.3.4.5.6.7.8.
9.10.11.
11.1. SIMPLE SUPPLY & DEMAND MODELS OF LABOUR MARKETS
On one level, labor markets can be analyzed using the same supply and demand model an economist might apply to all other goods. Supply increases asthe price (wage) received by the supplier increases. Demand increases as theprice paid decreases. Equilibrium occurs where supply equals demand. Formany purposes it is important to recognize that workers are not perfectlyinterchangeable. For e.g. most nurses are not economists. This is easily handled by thinking about separate markets for nurses and economists with their own supply and demand curves.
Similarly, workers within the same profession are not typically interchangeable. An important dimension along which different kinds of workers can be distinguished is the collection of applicable knowledge and skills that economists call human capital. Levels of human capital vary across individuals and over time for a given individual. As an employee accumulates human capital over time or as existing human capital deteriorates, the employee’s compensation can be expected to change, other things equal.
The willingness of workers to accept a particular job will be affected by agreeable and disagreeable facets of the job. Workers require a higher wage to accept a hazardous job than a safe one. They may accept lower wages to work in a nice place, have flexible hours, or have work that requires little effort. Differences in wages that come from these kinds of reasons are called compensating differentials.
The core of the theory of labor demand is derived from the observation that hiring an additional employee will increase the profits of the firm as long as the employee’s wage is less than the value of the additional output the firm can produce with the employee. The latter quantity is called the value of marginal product (VMP) and is the marginal product of an additional employee times the price of the firm’s product. This relationship defines the firm’s labor demand curve. Since the marginal product is likely to be decreasing as the firm hires more labor (holding other inputs fixed), the firm’s labor demand curve is downward-sloping: a firm which must pay higher wages will demand less labor. If there are no impediments, a labor market will reach an equilibrium where supply equals demand.
The theory of supply and demand does a good job of explaining the broad outlines of labormarkets, but looking only a little more closely reveals some cracks, like the fact that, the same workerbehaves differently in different economic circumstances; holding everything else equal, the sameworker might, for example, work hard at $30 per hour but loaf at $7 per hour. The simple supply anddemand framework cannot encompass this possibility, so different kinds of models are needed.
11.2. SPECIAL PROBLEMS IN LABOUR MARKETS
In the area of worker motivation, labor economists have focused their attention largely on three core problems: sorting potential employees, achieving optimal performance on the job, and regulating turnover.
Sorting Job Applicants:The difference between good and bad employees often depends on qualities that are difficult to discern in an applicant (willingness to work hard, for example). If the firm designs the right incentives, it can encourage desirable applicants, even though the firm would not be able to distinguish them when they apply.
Performance on the Job: Workers’ behavior on the job can be disruptive in many ways to the firm’s attempts to make money. A surly worker might lose a customer. An employee who shows up late might make it difficult for other workers to do their own jobs. A worker might be careless or simply not work very hard. Workers can steal from their employer. The list is virtually endless.
Beyond the obvious, several aspects of these situations are important. First, none of the examples just mentioned are necessarily tied to any observable characteristic of a job applicant. Businesses use an arsenal of screening devices to try to avoid problems, but they are not completely effective. This means that in order to get
optimal performance from their employees, the firm cannot rely on applicant screening, but must also design effective incentives for existing employees.
Second, many on-the-job problems are particularly critical because employees work together in most firms. For example, a worker who shows up ten minutes late, is not a problem if his job is to sit in front of a computer and write articles, but if he works on an assembly line, he may force several hundred workers to start work ten minutes late.
Third, the size and complexity of most workplaces make it impossible to detect negative behavior perfectly. This fact triggers a powerful principle: To deter any behavior that is unlikely to be detected, punishment must be disproportionate.
Quits: Turnover can be very costly to the firm for two reasons. First, isolating and hiring a new worker can cost thousands of dollars for some jobs. Firms that outsource part of their activity (presumably because they think it is cheaper than doing it themselves) typically pay a commission that is a substantial fraction of the new worker’s annual pay. Second, new workers almost always need to accumulate some knowledge specific to the new job (firm-specific human capital). This may require explicit training or it may just mean that the new worker will not be fully productive for some time. To the extent that firms cannot shift these costs to the new worker (through probationary wages, for example), firm-specific human capital is costly to the firm. Quit rates are not entirely outside the firm’s control, however. Compensation policies can provide incentives for workers to stay on the job.
The Agency Problem:All of the problems mentioned in this section are corollaries of the maxim“If you want something done right, you have to do it yourself.” The problem faced by the owner of a business is how to design incentives for its workers that will induce them to “do it right” or, more precisely, to behave in a way thatmaximizes the profits of the firm. This is an example of agency problem where a principal (inthis case the firm’s owner or manager) designs incentives for an agent oragents (the workers), who take actions that affect the principal’s well-being. The agency problem stems from the fact that there is a different connection between the agent’s actions and well-being than between the agent’s actions and the principal’s well-being.
11.3. PIECE RATES
If the agency problem is related to the worker’s productivity, there is an obvious approach to solving it: establish a direct connection between the worker’s output and his compensation. Many workers arecompensated in ways that resemble piece rates: garment workers who are paid on the basis of output, sales workers paid on commission, auto mechanics employed by large dealerships, and agricultural workers whose pay depends on the amount of fruit picked or rows of grape vines pruned.
One pervasive problem in firms that tie pay closely to some objectivemeasure of output is that they often getexactly what they pay for: behaviorthat changes the measure of output rather than output itself. Fraud andaccounting tricks often allow employeesto manipulate the measurement of output without any change in output.Or,perhaps worse, easily observable quantity may rise at the expense of less apparentquality. The dilemma is summarized by Gibbons (1996): “Whenmeasured performance omits important dimensions of total contribution[tothe firm], firms understand that they will ‘get what they pay for,’ and somay choose weak incentives inpreference to strong but frequently dysfunctionalincentives.” In other words, firms facing you-get-what-you-pay-fordistortions may choose to use incentive systems that are less direct and lessprecise than piece rates.
The biggest impediment to the implementation piece rates is that the output of individual workers is not easily measured in many jobs; reasonable objective measures of performance do not exist. One reason is that it is usually difficult, if not impossible, to separate the performance of a particular worker from the overall performance of a group or the firm. This makes piece rates far less effective, if at all feasible. Although a supervisor may be able to judge whether the worker is doing a good job over some period of time and set pay accordingly, for two reasons this is not really a piece rate. First, evaluation by supervisors breaks the tight relationship between performance and pay that true piece rates can achieve in a simple environment. Second, it introduces a time dimension to the relationship between work and compensation, which changes the relationship in fundamental ways from the simple immediate reward system of piece rates.
11.4. PERFORMANCE BONDING
In the face of workers’ inclinations to do various things contrary to the best interests of the firm, we can think about compensation in two pieces. One piece is the level of compensation that the worker insists on before he will agree to work for the firm at all. Suppose that this piece includes any compensating differentials the firm must pay. For now call this the wage. The second piece is what is necessary to convince the worker to perform optimally, to work hard, stay sober, be unlikely to quit, and so forth. For the moment call this the bonus. If piece rates were feasible, this bonus could be zero. It might also be zero if it is easy to monitor the worker’s performance in relevant ways.
The wage does not help motivate the worker, because it simply measures the alternative value of his time. It does not motivate him to do things he is disinclined to do (e.g., work hard). Compensating differentials only reflect the market’s valuation of things such as high effort, but without perfect monitoring of the employee’s behavior, the compensating differential will not ensure that high effort is forthcoming. Clearly the bonus will also be of no use in motivating workers if it is not conditional on performance in some way. So the firm must have some kind of scheme whereby the worker is evaluated after some period and receives the bonus if the evaluation suggests that his performance exceeds some threshold. Suppose that the evaluation is reasonably closely related to the worker’s actual performance and that the firm is honest about it. If the bonus is big enough, it will provide adequate incentive for the worker to perform in the way the firm wants. How big itneeds to be will depend on how likely it is that the firm’s evaluation willdetect suboptimal performance.
However, there is a flaw in this plan. The worker’s compensation may exceed the value of his marginal product if the bonus is too large. One response would be to say that firms would simply find it unprofitable to hire workers whose compensation exceeds the value of their marginal product and that that is the end of the story. But a better idea is that the firm requires the worker to give the firm some money at the beginning of the evaluation period and promises to pay it back with interest at the end, conditional on adequate performance. Now the firm is free to hire workers up to the point at which the value of the marginal product of labor equals the wage because the workers are posting a bond to guarantee their own performance. The firm still has to compensate workers to do things they do not want to do (pay a compensating differential, in other words), but the bond guarantees that the firm gets what it pays for (if the bond is large enough relative to the probability of getting caught).
The most important criticisms of performance bonding fall into four categories: imperfect financial markets, legal barriers, cheating (moral hazard) problems, and problems that come from hidden information. Explicit bond posting is rare in labor markets. In fact, it is also unusual to see firms taking anything other than the job itself from workers who are fired. In other words, to the extent that bonding arrangements are used by firms, the value of the bond is somehow embedded in the job itself.
11.5. EFFICIENCY WAGES
Workers have an investment whose return is tied to thecontinuation of the job and are thereforeless likely to quit or to take actions which would result in their dismissal from the firm. In case, the firms are unable to use performance bonds, the mostobvious solution is to make jobs valuable in a directmanner—by payingmore.
12. EFFECT OF VARIOUS FACTORS ON MOTIVATION
The general trend of the various factors on employee motivation and performance can be classified as under:
FACTOR LEVEL OF FACTOR LEVEL OF MOTIVATION
COMPENSATION, BONUSES & PERSONNEL EXPENSES
INCREASES ORDECREASES
SLIGHT TO NO CHANGE
WORK-LIFE BALANCE INCREASES INCREASES
FLEXI-WORK HOURS INCREASES INCREASES
RECREATIONAL ACTIVITIES & GUEST LECTURES
INCREASES (At intervals)
INCREASES(Frequently)
DECREASES
INCREASES (At intervals)
DECREASES
DECREASESPRAISING & APPRECIATION INCREASES (At any rate) INCREASES
ONE FAMILY ENVIRONMENT INCREASES INCREASES
REWARD SCHEMES & CORPORATE AWARDS
INCREASES INCREASES
WORK PLACE LAYOUT & ERGONOMICS
INCREASES (If Needed)
INCREASES(Frequently)
NO CHANGE
INCREASES
DECREASES
DECREASESWORK FROM HOME (SOHO) INCREASES INCREASES
TRAINING PROGRAMMES & OPPORTUNITIES
INCREASES INCREASES
CORPORATE HIERARCHY INCREASES (Centralized)
INCREASES(Flat)
DECREASES
SLIGHT TO NO CHANGE
INCREASES(Direct Access)
INCREASESRESOLVING DIFFERENCES
WITHOUT BIASNESSPOWER DISBURSED, UNBIASED
POWER FOCUSED, BIASED
INCREASES
DECREASES
DRESSING SENSE SOMETIMES
INCORPORATED, PERMANENR
INCREASES
DECREASES
FREEDON OF EXPRESSION OF ONE’S THOUGHTS
FREE EXPRESSION
EXPRESSION RESTRICTED
INCREASES
DECREASES
13. WAYS TO IMPROVE PRODUCTIVITY AT THE WORKPLACE
Today, it is not enough to simply have a job, an office or organization to work in, and get a cheque at the end of the week. A workplace however large or small has to be driven by efficiency and achievement that manifests itself in the form of tangible results for the organization, and is rewarding for the employee. Less productive inputs and lower efficiency levels are bound to affect the business and jeopardize its sustainability
and survival.Employee productivity is a major concern for employers and lower productivity cannot be blamed on the employee entirely.
A lot of it has to do with the environment at the work place, and the work conditions along with a series of factors that define the work culture.
Employers have to implement wide spread changes in their setup to improve the productivity of their work force.
Employee talent is a valuable asset for a company or organization, and it needs to be tapped to its fullest by keeping the employees motivated to perform and deliver the results they are qualified for and capable of.
Employers may often believe that once they have recruited the best talent in the field, the results will inevitably follow. Not necessarily, if you look beneath the surface to see the environment this talent works in.
A few factors that can help to improve the employee productivity at the workplace are:
1. Accountability
Every employee needs to be well aware that he is accountable for his actions and decisions, and he can neither pass the buck or pass the blame to someone else.
This will help him work more meticulously , Take cautious rather than reckless decisions, and not take advantage of his place, position or relationship
with his superiors.
2. Follow up
Employers often set targets and feel their job is done.
No, every target or milestone set needs to be followed up as well, to see if the progress is sufficient and if not, whether any interim measures can be taken before it is too late to salvage a situation.
It also keeps the employee on track, ensuring there is consistent effort throughout the lifetime of the project
3. Manage the work force but avoid micromanagement
It is well known that a large pool of employees does need to be managed, provided direction and given assistance. But with this they must also be trusted, given freedom to operate in their style and adopt measures which they think are the best to deliver results.
This freedom to act as they deem fit helps to keep them encouraged, motivated and happy in the belief that they are trusted.
Micro management is a human tendency but one that is detrimental to achievement, since it makes mere puppets out of employees, who are expected to toe the boss’ line and not think for themselves.
Employees need to think for themselves, analyze the consequences of every decision or action to be able to give their best to their jobs. And the employers must make it possible for their workers to do so.
4. Encourage, motivate, reward and recognize
The employer must ensure that on his part he always has words of encouragement for his staff. Encouraging them helps them move forward and do even better, and makes the worker feel happy. Innovative ways of motivating them spurs them even more. For example, holidays or conferences paid for by the company have been found to motivate employees immensely.
Rewarding the hard work put in by employees makes them continue to work in the same fashion, and if the employee feels that his work is not appreciated in words or in material terms, he may gradually stop doing so, since he may feel that others working less are given the same too, so he need not work more.
Rewards, and other ways of keeping employees happy makes them feel that their effort is being recognized and that they are needed by the company.
Without these, they may soon start looking for greener pastures and new jobs.
5. Reach out to employees by seeking them out
Every employee loves to feel he has the ears of the management who will recognize him and listen to what he says. Display of inter personal skills in which the boss appears humane and one of them, rather than a larger than life, distant figure, helps to have employees warm up to him and feel happy working for him.
A bit of effort to reach out helps them all do better. If this extends beyond the work place it may prove to be even more encouraging to increase employee
productivity.
6. Demand realistic targets
Employers need to set realistic goals that are within the limits of achievement. While an aggressive employer may want his people to outstretch themselves to achieve farfetched goals, it may also burn them out.
7. Team work
Team work always helps in increasing workplace productivity since there is more input in the form of more ideas and minds at work. Working alone is not always the happiest situation either, especially in the field. Successful team building and working together is bound to bring out the best out of the employees who may also then compete with each other ensuring the business is the winner.
8. Ensure that people enjoy their work
The best performing employee is the happy employee, and the employer has to find ways of making his people happy. Besides working conditions and the work culture implemented, he has to devise ways of making the work seem challenging and interesting rather than mundane and boring.
9. Break the monotony and rotate
While employers assign tasks according to an employee’s core competence, even the task they are best at, can make an employee bored and his work seem monotonous.
This monotony can be broken with rotation and giving people new tasks and exposure to other divisions. This adds their learning and helps them get a holistic view of the business.
10. Courses and improvement options
Employees are delighted when they can enhance their skills and get additional learning opportunities sponsored by the employer. This helps them learn, feel indebted for the money being spent on them, which also adds to their resume, and are obliged to perform better by applying all the knowledge gained in these courses.
11. Spend less time on meetings and more on action
The current trend to have more meetings and discussion rather than spending more time working to achieve results, leads to precious productive time loss.
Meetings for reviews and sharing of ideas can be limited and kept short. Employees should have more time to show results.
12. Tools and equipment to raise productivity
The workplace must have the best machinery, devices and equipment that yield error free results in the minimum possible time. Efficient electronic equipment with no connectivity issues and breakdowns will help to save precious time. They should take the place of paper work, and yield fast results. Some of these include:
Smart phones Laptops Tablet computers Latest applications and software that offers quick connectivity and access Digital recorders-these help to record thoughts and new ideas when they strike, when no paper is available
and the fear is of forgetting the idea Bluetooth to stay connected Personal digital assistants or PDA’s GPS to stay on track on the road
13. Set up the right environment
Employees need to be motivated by themselves. The duty of a manager or a supervisor is to set up the right environment where employees can motivate and empower themselves.
14. Money isn't always a good motivator.
A well paid job can often help people from becoming less motivated, but it usually isn't helpful in making them more motivated. The truth is that different people are motivated by different things. While money is important for some people, some others cherish more time with family or greater recognition within the organization. A manager or a supervisor trying to motivate his employees should try to understand what motivates each one of them. You can usually find what motivates your employees by asking them, listening to them and observing them.
15. Don't frighten your employees
It may help if the boss yells a lot. But this usually works for only a short time. Fear alone can't keep employees motivated for a very long time. So stay away from the practice of frightening your employees.
16. Motivate yourself
A manager trying to motivate his employees should be motivated himself. If he is enthusiastic about his job, it will be easy for him to make others enthusiastic too. So before you start motivating others ask yourself whether you find your job motivating enough. What can you do to better motivate yourself? If you know what motivates you, it will be easier for you to understand what motivates others.
17. Align the goals of the organization with the goals of the employees
Always work with the objective of aligning the goals of the organization with the goals of the employees. Just having a few motivated employees won't help unless they all work towards realizing the goals of the organization.
18. Use motivational systems
To motivate employees you can use motivational systems. For instance, organizations can establish compensation systems and employee performance systems. It is also possible to make some changes in organizational policies and procedures to support employee motivation.
19. Practice what you read
Leadership skills aren't necessarily cultivated by just reading management publications. You need to practice what you read.
20. Show genuine care and concern
Show genuine care and concern for your employees. Get to know them on a personal level - their families, their favorite foods, names of their kids etc. This has to be done with sincere interest, otherwise your will sound manipulative.
EXAMPLE ON MOTIVATION
In one of the most elaborate studies on employee motivation, involving 31,000 men and 13,000 women, the Minneapolis Gas Company sought to determine what their potential employees desire most from a job. This study was carried out during a 20 year period from 1945 to 1965 and was quite revealing. The ratings for the various factors differed only slightly between men and women, but both groups considered security as the highest rated factor. The next three factors were;
advancement type of work company - proud to work for
Surprisingly, factors such as pay, benefits and working conditions were given a low rating by both groups. So after all, and contrary to common belief, money is not the prime motivator.
14. INCENTIVES AND REWARDS As the previous discussion indicates, motivation for employees results from a combination of incentives that take the form of extrinsic and intrinsic rewards.
8.9.10.11.12.13.
14.
14.1. Extrinsic Rewards
There are a host of external things that managers can provide that mayserve as incentives for employees to increase their productivity. Theseinclude:1. Money—in the form of pay, bonuses, stock options, etc.2. Benefits—also in many different forms, including health insurance, vacation, sick leave, retirement
accounts, etc. Increasingly benefitsare offered under some form of cafeteria plans, allowing employeesflexibility in what can be selected and in the management of theirown benefit package.
3. Flexible schedules.4. Job responsibilities and duties.5. Promotions.6. Changes in status—conveyed either by changes in job titles or in newand different job responsibilities.7. Supervision of others.8. Praise and feedback.9. A good boss.10. A strong leader.11. Other inspirational people.12. A nurturing organizational culture.
As this list demonstrates, extrinsic rewards are all tangible types of rewards.Intrinsic rewards stand inmarked contrast to these.
1.2.3.4.5.6.7.8.9.10.11.12.13.14.15.
15.1.
14.2. Intrinsic Rewards
Intrinsic rewards are internal to the individual and are in many ways less tangible. In fact, they are highly subjective, in that they represent how the individual perceives and feels about work and its value. Five types of intrinsic rewards that have been summarized include:1.Healthy relationships —in which employees are able to develop a sense of connection with others in the
workplace.2.Meaningful work —where employees feel that they make a difference in people’s lives. This is typically a
motivator for people to enter and stay employed in the healthcare industry. This type of work is viewed as that in which the meaningful tasks outweigh the meaningless. This reinforces the mantra Herzberg first espoused in 1968, in which he stated: “Forget praise. Forget punishment. Forget cash. You need to make their jobs more interesting.” As paperwork has increased, managers need to be aware that such tasks detract from the meaningfulness quotient.
3.Competence —where employees are encouraged to develop skills that enable them to perform at or above standards, preferably the latter.
4.Choice —where employees are encouraged to participate in the organization in various ways, such as by expressing their views and opinions, sharing in decision making, and finding other ways to facilitate participatory approaches to problem solving, goal setting and the like.
5.Progress —where managers find ways to hold employees accountable, facilitate their ability to make headway towards completing their assigned tasks, and celebrate when progress is made toward completing important milestones within a project. Intrinsic rewards, coupled with extrinsic ones, lead to high personal satisfaction and serve as motivators for most employees.
15. CURRENT TREND IN THE ORGANIZATION
ONGC, being a premier company, pays heed to the importance of the employees in the organization and therefore tries best to satisfy the needs and requirements of its employees in all the possible ways, within its interest. A variety of techniques are being followed in the company to motivate its workforce, to improve their performance leading to the growth of the organization.
The current trend in the organization, being in accordance with the need of the hour, has been to emphasize on the management of the most important resource of any organization i.e. the Human Resource through a variety of methods and techniques. The latest trend in the organization can be summarized as follows:
a. To recognize the efforts of employees by instituting various Annual Awards like Chairman’s awards, Young Executive Award,Excellence Awards in various Technical field.
b. To encourage employees in fields other than office work like various Sports and cultural Events.c. To give the employees Performance Related Pay in recognition of their Annual Performance.d. To benefit the Human Resources through Annual Incentive/Honorarium.e. To impart Hi-Tech and Advance Trainings in India and Abroad.f. Medi-claim facilities and personnel loan facilities for the employees at lower interest rates.g. Organizing various annual functions and picnics for recreation of the employees.h. Building a “One-family” working environment.i. Installation of various facilities for employees and an excellent IT/CS support system framework.j. Although, the organization has a rigidly fixed working hour system, the facility for flexi-work hours
can be granted in special cases.
16. CORPORATE ANALYSIS
16.1. SCOPE OF THE ANALYSIS: To analyze the behavior of the employees of the NEELAM & HEERA ASSET towards their workplace environment and to determine how motivated the employees feel to be working in the organization.
16.2. METHOD USED: Conducting a survey through Questionnaire forms and Personal interviews with the employees of NEELAM & HEERA Asset.
16.3. STATISTICAL TOOLS USED: Measures of Central Tendency, Sampling, Hypothesis Testing using Z-Test and T-Test.
16.4. METHODOLOGY : The Questions in the Questionnaire has been classified on the basis of KEY DRIVERS OF EMPLOYEE ENGAGEMENT, MOTIVATIONAL and TECHNICAL KNOWLEDGE according to which the Statistical tests has been conducted and inferences drawn.
16.5. PARAMETERS:
Size:
Population Size: 90 Sample Size: 30
Classification of Questions:
Technical Aspect: 3 Workplace &Motivational Aspect: 3 Aspect of Employee Engagement: 19
Variables Used: Frequency: X; Total Number of Readings: N; Arithmetic mean: μ; Variance: Var; Standard Deviation: SD;
Formulae Used:1. Frequency (X) Total Score of an Individual
2. Arithmetic mean (μ) X/N
3. Variance (Var) 1/N* Ʃ(X-μ)2
4. Standard Deviation (SD) SQRT(Var)
5. Z-Test Value (Z) (XAssumed-μ)/SD
16.6. INFERENCES: The analysis of the survey brings forth the following views:
1. The motivational level of the people is the direct result of the experience of the people working in the organization. New recruits feel more motivated as compared to the senior employees as they will have more opportunities of learning and improvement.
2. However, as the senior employees have more experience as compared to new recruits, they are more actively engaged in the affairs of the organization and thus contributing to the growth of the organization, and feeling more motivated to work toward the organizational goals and visions.
3. New recruits are more technically oriented, thereby enabling them to contribute towards the physical embellishment of the company, but however, they lack the managerial skills needed to actively participate in the organizational growth. On the other hand, as the seniority increases, in most cases, it has been seen that the management skills has an upper hand over the technical know-how.
4. More-over, people feel more motivated to work in the organization, since the company has adequate facilities to “Look-After” their employees, in all physical, financial and psychological contentment.
5. The engagement level of the employees, who have served the organization for some time now (around 7-10 yrs.) is the highest, since they have the greatest ability to comprehend the solutions from both the technical and managerial persons, and interwove them into a single best solution to any problem. Hence, they have the greater chances of being rewarded for their efforts and get motivated.
6. Thesmall percentage of people who feel unmotivated could be because of lack of enough
opportunities for them in the current surroundings or due to their biasness towards certain aspects of the organization than to the others and their inability to change to the changing environment.
7. People at the upper levels of the hierarchy are highly motivated, but the situation is not true for all and hence only few people are able to maintain “To-Do-Something for the Organization” attitude. Remaining others slack-off or get absorbed only in their daily office work and hence have little space for working to for the betterment of the organization.
17. RECOMMENDATIONS
Considering the Inferences drawn from the analysis, it is seen that, although the people are motivated to work in such a prestigious organization as ONGC (or any Asset thereof) and try their best to complement their position in the organization through their hard-work, still a variety of steps can be taken to improve their level of motivation thereby optimizing their level of productivity and furthering the growth of the organization.
Some of the ways, which can be incorporated within the jurisdiction of an Asset Manager’s, are summarized as under:
1. The general perception of the workforce towards their work should be changed, so that people are able to develop a feeling of Belongingness towards the organization.
2. The efforts of the people should be recognized in a timely manner, rather than onlybeing highlighted at certain special occasion. Their contributions should be displayed on notice and bulletin boards where people can see and get inspired to work in the same direction.
3. Various Recreational activities should be carried out at regular intervals (but not frequently), such as Quizzes, Competitions, Event-Days Celebrations, Cultural Programs, Presentations etc, where employees can participate and their talent can be recognized and morale boosted, so they can nurture their potential to a new level. Also, various prizes at such events also motivate employees to give in their best in an attempt to get known. Thus, the employees feel that the company is giving them a platform to show-case their talent, and hence they work more diligently towards the organizational goals.
4. In many cases of differences of opinions, there arises a feeling of biasness of the adjudicator towards the person he closely works with rather than the persons, whom he is faintly acquainted with. In such scenarios, a need for an unbiased adjudicator arises, who can listen to both the parties and can reach at an unbiased conclusion, suitable for both sides. Also, there is a need for quick disposal of the matters rather than pending it for some later suitable time.
5. Employees feel more motivated to work, if they are regularly appreciated by their superiors for their work, which seldom takes place in any organization much less in a department. Moreover, the classical chain of hierarchy should not restrict the lower employees to confront their superiors directly regarding any important piece of information.
6. In cases where possible, flexible work timings should be allowed so that the employees can contribute to the organizational growth rather than being hindered by rigid work-timings.
7. At present, any communication in the departments takes place only through the superiors or heads of the department. In many of these cases, the technical queries which required immediate answers remains pending for long time, thereby prohibiting the timely completion of work and hindering the departmental growth. Also, there arises a possibility of miscommunication.The departmental heads should provide the facility where the people of different departments can interact directly and openly in order to solve any query in a quick and understanding manner rather than following the tedious and time consuming standard procedures.
8. A large numbers of cubicles are vacant and/or occupied by old files and folders, broken-unrepaired computers etc, which add to the dampness of the working environment and restricting easy passage to the employees, thereby affecting them ergonomically, reducing their productivity. People will feel more motivated if much of the un-needed junk is removed from the vicinity and clean and open working conditions are provided.
9. People feel much more motivated when they get promoted, as they feel that their efforts are rewarded and hence work much more aggressively towards the accomplishment of their tasks and relieving their responsibilities. However, ONGC being a government undertaking, has set standard promotion policies, which are adhered to, in order to get promoted. But, sadly enough, the time interval between promotions at lower levels (E1-E4) is large and strictly on timely basis without any consideration to the employee performance. A better alternative to such a strategy is to create new departments, or increase the hierarchy of the company, whereby the time interval between promotions is reduced and people can get promotion more frequently, thereby withholding their motivation to work for the company.
18. CONCLUSION Motivation of employees is a tricky business. Managers often do not understand the concepts, principles, and myths about motivation well enough to put them in practice. Managers can improve their success rate by providing extrinsic rewards that will help their employees to be intrinsically motivated to become top performers.
19. REFERENCES 20. Homework Help 21. https://www.homeworkping.com/ 22. Math homework help 23. https://www.homeworkping.com/ 24. Research Paper help 25. https://www.homeworkping.com/ 26. Algebra Help 27. https://www.homeworkping.com/ 28. Calculus Help 29. https://www.homeworkping.com/ 30. Accounting help 31. https://www.homeworkping.com/ 32. Paper Help 33. https://www.homeworkping.com/ 34. Writing Help 35. https://www.homeworkping.com/ 36. Online Tutor 37. https://www.homeworkping.com/ 38. Online Tutoring 39. https://www.homeworkping.com/