Employee Motivation and Reward - Case Study Example

MOTIVATION & REWARD (Degree for which this dissertation is being submitted) Submitted in part fulfillment of the Date of Submission EMPLOYEE MOTIVATION INTRODUCTION Motivation is one of the important factors affecting human behavior. The level of motivation does not only affect perception and learning but it also affects the total performance of the individuals, as expressed by: Performance = Ability x Motivation The motivation is also affected by various psychological factors discussed earlier, such as perception, learning, and personality. (Vroom, 1994 p.11) Thus in order to understand the human behavior completely, the motivational process must be analyzed. MOTIVATIONAL TOOL Organizations employ large number of executives on various jobs that have relatively limited scope of responsibility, require little initiative or decision-making and provide little feed-back about results and also yield a little sense of achievement or satisfaction. One of the major problems facing enterprises is how to get optimum results from the massive investments in these enterprises and the foremost problem among these is the problem of motivating human resources, problems of under-Utilization of abilities, frustration, instigated behavior, unfavorable job attitudes and low morale appear to prevail as much among managers and supervisors as among workers. Motivation has been defined as the force that gives rise to a behavior. There are various factors that influence the behavior and among them the needs of the individual are most important (Douglas, 1997. p.52). MOTIVATIONAL FACTORS IN "SMITH AND NEPHEW" Employee motivation is the main activity for HRD thrust on quality of work life. Among other things, the employee motivation will involve the following activities: Proper communication at shop level Employee facilities Employee performance recognition Employee participation with team spirit Development and job enrichment Dynamic HRD efforts 1. Proper Communication at Shop Level The main object of HRD philosophy is respect for the dignity of the worker as a human being and motivates his enormous potential for contribution and growth. HRD efforts have therefore to gain the confidence of the worker that he is seen as a member who is important to the organization. Proper communication plays a pivotal role to achieve results in this priority area. (Bhatia, 1999, p.52) (a) Shop Communication Forums Normally, a worker feels a sense of belonging when the organization shares with him various company information. Shop communication forums at the work place enable information sharing with the grass-roots levels of the workforce. The forum' holds communication sessions in the shop on various aspects of the plant with information focus on production targets and performance of the shop, cost control, energy conservation and techno-economic factors, safety, housekeeping and various other thrust areas. Since the employees themselves communicate the information to their co-workers, a unified team throbbing with commitment and zeal to deliver results trades shape at the work place. (Bhatia, 1999, p.54) Constraints are, however, faced in the vastness of the workforce. Due to vastness of the workforce, there may be some constraints, while implementing the programme. However, there is wide scope for increasing the ambit of the communication efforts and information sharing has to become an inbuilt managerial function in the shop floor. (b) Workers Luncheon Sessions and the Performance Improvement Plan Normally, in these sessions, the workers are invited to a discussion with the senior line managers of the shop on the targets and performance shot-falls/ assignments and encouraged to suggest improvements and highlight attention areas. (Bhatia, 1999, p.55) These discussions explore the latent potential of the silent workers in the shop and provide a forum for their self-expression and contribution to the process of collective decision-making. 2. Employee Facilities HRD efforts will increase the human values in an organization. Grievance redressal is a 'must' for an organization. Grievance handling has advanced from a formalistic system to a predictive culture. Most of the employee services are designed with humanistic care and help for the retiring employees, who can reinforce the lifelong attachment of the company with the employee. Pre-retirement counseling and timely execution of official formalities to expedite payment of all his final dues is monitored and completed by a centralized Final settlement section. (Bhatia, 1999, p.57). The post-retirement facilities will increase the morale of the serving employees who witness the goodwill of the company towards the departing employees. The welfare aspect of employee services has been the basic aim of HRD activities. In the shop floor, counseling facilities create a congenial atmosphere. This will reduce the number of habitual absentee employees. Seasonal impact of festivals, agriculture and social obligations continue to have a strong influence on workers with the result there is always a declining trend of attendance, which eludes managerial control. Alcoholism, family frictions and other domestic problems post continuing challenges for pursuing HRD efforts more vigorously. Literacy campaigns are also conducted to improve the basic skills of the workers. 3. Employee Performance Recognition Recognition of employee performance increases the morale of them and stimulates an urge to excel at the work place, spreading cheer to the families and enhancing the social status of the employee. Sometimes photographs of good performers are displayed and also at felicitation functions publicity in house journals, letters of appreciation-all these increases the morale of the individual and team efforts to boost the quality of work. In some organizations, Non-financial motivation schemes are implemented. (Hunt & Will, 1969, p104) The presence of families and fellow workers in the award function fills the employee with a sense of pride and the enhancement of his social image, brings happiness at home. These factors help to reinforce the sense of belonging off the job also. 4. Employee Participation with Team spirit To maximize enrichment of quality of work life, the management has to generate team spirit and a sense of involvement among the workers. HRD can make use of some methods like celebration of birthday on the anniversary of commissioning the department, has in real experience fetched great rewards. The launching of quality circles and implementation efforts through the formation of 'Shop improvement groups' have established the importance and success potential of small committed work-teams voluntarily taking up improvements in their area of work. These groups provide better prospects for exploration of the human capabilities to mobilize an ongoing improvement process on the shop floor. 5. Developments and Job Enrichment Job satisfaction increases work efficiency and hence they are indispensable elements of work-life. Initially, the HRD aims to develop the knowledge and skills of the worker to keep pace. HRD attention on shop training activities and multi-skill development have positively shaped the attitudes and competencies of the workforce and improved the possibilities to optimize their utilization. Formulation, propagation and adherence to standard operating practices on specific work positions, imparting shop based training through unit training centers, multi-trade training and induction orientation for fresh recruits, identification of the skill needs of the existing employees in the revised job combinations and enrichment of their knowledge/competencies through on-the-job training these various activities prove rewarding in worm-like at the shop-floor. (Mitchell, 1974, p.69) Dynamic HRD Efforts HRD philosophy strongly believes that the -workers involved in the process of work are the best qualified to bring about improvements in their area of work. Every worker has creative abilities, which can be tapped through managerial encouragement and support. From this angle the suggestion scheme has emerged as a dynamic HRD mechanism. While the attraction of awards for the suggestions is an offshoot of the scheme, the satisfaction potential inherent in the implementation of the worker's own ideas of improvement provide the drive and impetus to the improvement efforts in the shop-floor. HRD Beyond the Shop floor Generally, an employee's family and social life play an integral role in shaping his work attitudes and involvement in the company activities. The importance of the qualitative enrichment of his off-the-job hours has therefore been projected with a sharper focus in the current perspectives of HRD. The HRD reaches the following areas, after serving at shop floor level. Increasing the Status of Family The family of the employees may not have a proper understanding of the work place in which the employee spends a major portion of the day and earns living. Hence, the family members may not know his pressures of work, day-to-day stresses and strains, the nature of his responsibility and the implications of his job accountability. The interactions of managers with the family members and the warmth of hospitality create a climate of homeliness in the shop. This practice has brought the families closer to the company and enabled them to develop right attitudes to the working life of the employees. IMPROVING STANDARD OF LIVING IN 'SMITH AND NEPHEW' The employee's participation would improve when the company takes steps to maximize his joy of living at home and in the larger society. Following are the key areas where the company has to concentrate to improve the quality of work life. 1. Provision of housing facilities 2. Provision of entertainment facilities 3. Arranging family get-togethers 4. Developing the talents 5. Managerial involvement in family functions 6. Medical facilities 7. Sports and games facilities 8. Scholarship facilities to improve academic performance 9. Counseling centers 10. Company support in consumerism 11. Post-retirement benefits 12. Associating families in company functions 13. Protecting the employees' families during times of crisis. 14. Educating the employees on family welfare, savings, civic sense, etc. Social Responsibility Generally, societal factors determine the attitudes, work patterns and the living ways of the employees. Improvement in work life therefore depends upon improvements in the social conditions. Infrastructure development provides a face-lift to the society in which the employees still have their roots. Generally, the worm-like, besides fostering the growth of the company, ensures the progress of the society around. (Yvonne, 1999,p166) The social service areas have large scope for more dynamic HRD thrust on strengthening the bondage between the organization and the individual. Educating the employees on the lines of decent living, alcoholism, indebtedness, family conflicts, etc. and provision of facilities to fulfill the religious/ social duties of the employees. All these emphasize the need for off-the-job improvements as a precondition to the improvement of work life. INCENTIVES & REWARDS The needs of individuals serve as a driving force in human behavior. In the context of these needs management tries to govern the behavior of employees in satisfying their needs. On the basis of this the various incentives, which may be used by the organizations, may be classified into two parts. Financial Incentives Non-financial Incentives Financial Incentives. In the context of existing economic system, money has become a means not only to satisfy physical needs of daily life, but also of obtaining social position and power. The organization offers wages, which become incentives for individuals to join the organization. The wage structure should e such that it motivates the present and prospective employees of the organization (Gellerman, 1968, p.173). Non-Financial Incentives Management, in addition to the financial incentives, provides non-financial incentives to motivate people in the organization. Some important non-financial incentives are as follows: (i) Status. Status, in general terms, is the ranking of people in the society. In the organizational context, status means the ranking of positions, rights and duties in the formal organization structure. The status system is an instrument of motivation because it is extremely important for most of the people. The status system should be closely related to the abilities and aspirations of people in the organization. (ii) Promotion. Promotion is defined as a movement to a position in which responsibilities and presumably prestige are increased. Promotion satisfies the needs of human beings in the organization. Since the promotion depends upon capabilities and good performance, people will try for that if the venues for promotion exist. (Gellerman, 1968, p.189) (iii) Responsibility. Most of the' people prefer challenging and responsible jobs rather than monotonous and routine type jobs. If the job is responsible, it satisfies people's natural and inherent characteristics and they put more efforts for completing the job. Other Non-Financial Incentives are: Making Job Pleasant and Interesting Competition. Group Incentives Praise. Knowledge of the Results Workers' Participation Suggestion System. Security MOTIVATIONAL THEORIES APPLICABLE IN "SMITH AND NEPHEW" MASLOW'S NEED HIERARCHY The behavior of an individual at a particular moment is usually determined by his strongest need. AH. Maslow, a famous social scientist, has given a framework that helps to explain the strength of certain needs. According to him there seems to be a hierarchy into which human needs' are arranged. Physiological Safety (Security) Social Esteem (Recognition) Self-Actualization Fig. Maslow's need hierarchy 1. Physiological needs. The physiological needs arc shown at the top, of the hierarchy because they tend to have the highest strength until they are reasonably satisfied. Until these needs are satisfied to the degree needed for the efficient operation of the body, the majority of a person's activities will probably be at this level, and the other levels will provide him with little motivation. 2. Safety Needs. Once the physiological needs are satisfied to a reasonable level - it is not necessary that they are fully satisfied and degree of reasonableness is subjective - other levels of needs become important. In this hierarchy comes the need for safety that is need for being free of physical danger or self-preservation Organization can influence these security needs either positively-through pension plan, Insurance plan, etc. - or negatively by arousing fears of being fired or laid off, demoted. 3. Social Needs. After the first two needs are satisfied, social needs become important in the need hierarchy. Since man is a social being, he has a need to belong and to be accepted by various groups. When social needs become dominant, a person will strive for meaningful relations with others. 4. Esteem Needs. The esteem needs are concerned with self-respect, self-confidence, a feeling of personal worth, feeling of being unique and recognition. Satisfaction of these needs produces feelings of self-confidence, prestige, power and control. The satisfaction of esteem needs is not always obtained through mature or adaptive behavior. It is sometimes generated by disruptive and irresponsible actions. Some of the social problems have their roots in the frustration of the esteem needs. 5. Self-actualization Needs. Self-actualization is the need to maximize one's potential, whatever it may be. This is related with the development of intrinsic capabilities, which lead people to seek situations that can utilize their potential. This includes competence, which implies control over environmental factors, both physical and social, and achievement. Maslow suggests that the various levels are interdependent and overlapping, each higher level need emerging before the lower-level need has been completely satisfied as shown in Fig. self actualization Psychological safety social esteem Intensity of needs Fig. 4 Relationship of new level HERZBERG'S MOTIVATION- HYGIENE THEORY According to Herzberg, there are ten maintenance of hygiene factors. These are company policy and administration, technical supervision, interpersonal relationship with supervisors, inter-personal relationship with peers, inter-personal relationship with subordinates; salary, job security, personal life, working conditions, and status. These are not intrinsic part of a job, but they are related to conditions under which a job is performed. They produce no growth in a worker's output; they only prevent losses in workers' performance due to work 'restrictions. These maintenance factors are necessary to maintain a reasonable level of satisfaction in employees. Any increase beyond this level will not provide any satisfaction to the employees; however, any cut below this level will dissatisfy them. As such, these are also called as dissatisfiers. Since any increase in these factors will not affect employee's level of satisfaction, these are of no use for motivating them. McClelland's NEEDS THEORY McClelland has identified three types of basic motivating needs. He classified these as need for power, need for affiliation, and need for achievement. McClelland and his associates in this respect did considerable research work, particularly, on achievement motive. 1. Power Motive. The ability to induce or influence behavior is power. The individual's life style is characterized by striving to compensate for the feelings of inferiority, which are combined with the innate drive for power. 2. Affiliation Motive. Since people are social animals, most individuals like to interact and be with others in situations where they feel they belong and are accepted. McClelland has suggested that people with high need for affiliation usually drive pleasure from being love and tend to avoid the pain of being rejected. They are concerned with maintaining pleasant social relationships, enjoying a sense of intimacy and understanding and enjoy consoling and helping others in trouble. 3. Achievement Motive. McClelland's managers research has led him to believe that the 'need for achievement is a distinct human motive that can be distinguished from other needs. It can also be isolated and assessed in any group. CONCLUSION Motivation & Rewards deals with human behavior in order to determine the factor that prompts an individual to do his best. In order to motivate the employees, management must first of all know what are the motivational factors influencing the behavior of persons. There is need to study the relationship between motivation and performance and motivation and satisfaction because with both the managers are directly concerned. The strength of motivation depends upon the equation: Motivation =f (Motive x expectancy x incentive). Performance =f (Motivation x Competency) The strength of motive is the position in the individual's hierarchy of motives. Expectancy is the probability that the act will obtain the goal. The value of incentive is the reward expected by obtaining the goal. (Vroom, 1994 p.12) Motivation & Rewards plays an important role in the success, efficiency and soundness of an organization. References AH. Maslow, Motivation and Personality, New York: Harper & Row, 1954. Bhatia B S & Batra G S. Encyclopedia of Business Management. Human Resource Development. Deep & Deep Publications. Rajouri Garden. 1999 David C McClelland: The Achievement Motive, New York: Appleton Century-Crofts, 1993 Douglas McGregor, The Human Side of Enlerprise.New York: McGraw-Hill, 1997. p.52-63 Frederick Herzberg, Bernard Mausner and Barbara Synderman: 'The Motivation to Work: New York: John Wiley, 1999 Gellerman S W, Management by Motivation, New York: American Management Association, 1968, p.173-189 Hunt J G & Will JW, The New Look in Motivation Theory for Organizational Research: Human Organization, Summer, 1969, P104-110 Peter F. Drucker, 'How to be an Employee', Psychology Today, March, 1998. Mitchell Fein, Job Enrichment: A Revaluation. Sloan Management Review, 15(2), Winter 1974, p 69-88 Vroom Victor H., Work and Motivation, New York: John Wiley, p. 1994.11-22 Yvonne Mc Laughhlin. Business Management: A Practical guide for Managers, Supervisors & Administrators. Business Information Books, 1999, p. 166-177 Read More