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WHAT ARE THE ESSENTIAL FACTORS FOR EMPLOYEE RETENTION IN AGRO-BASE INDUSTRY?

Contents
Contents...............................................................................................................................2 1 Research Brief...................................................................................................................3 2 Problem Statement: ..........................................................................................................4 3 Policy Questions to be examined .....................................................................................6 4 Research Objectives..........................................................................................................6 5 Research Hypotheses .......................................................................................................7 6 Literature Review..............................................................................................................7
6-1 Motivational Theories and sugar Industry..............................................9

7 Research Methodology ..................................................................................................13
7.1 Research Onion:....................................................................................13 8.1 Use of Secondary Data and Data Analysis............................................15

8 Research Methods ..........................................................................................................14 9 Conclusions:....................................................................................................................16 10 TIMESCALE:...............................................................................................................16 11 References:....................................................................................................................17

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1

Research Brief

The sugar industry is the second largest1 and one of the most important industries of Pakistan with 822 sugar mills in Pakistan3 and one at Azad Jammu Kashmir4 (AJK)5. Figure 1 shows growth of sugar mills in Pakistan 1947-2006. by 2002-03. The sugarcane crop is a major source of income for growers in the country who earns Rs. 43-50 billions from its sale to the sugarcane factories annually6. It is rich source of fodder7 for the animals especially during the fodder shortage months in winter 8. Moreover, sugar industry is using a business of over Rs. 100 billions through sugar and its by-products like molasses, alcohol, bagasse and press mud9. Sugarcane farming, trading and industry provides livelihood to millions of people10. A handsome amount is also earned by government through taxes and utility bills from growing to crushing of cane in the mills11. Figure 2.1 shows that Pakistan had only two sugar mills at the time of independence, which has reached to 82

1 2

After textile industry Punjab has 42, Sindh has 34 and NWFP has 6 sugarcane factories 3 Pakistan Sugar Book, 2005 4 Beside this there are also 4 beet sugar factories, 27 Ethanol distilleries, 8 Particleboard plants & 7 Liquid sugar factories 5 AJK is the one of the disputed part of Kashmir with Pakistan. 6 Chamber of Agriculture Sindh, 2006 7 Four percent 8 Cane Deprtment,2006 9 Chatta, Sugarcane Research Institute, Faisalabad, 2006 10 Daily Dawn Karachi, March, 2005 11 Statistics of Pakistan, 2004

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Figure 1: Growth of Sugar Mills in Pakistan - years 1947-2006

90
82

80
71

75 68 65 60 53

77

70 60
51

50 40 30 20
13 17 19 21 27 28 30 31 39 40 36 34 35 41

44 45

25 23 24

15

10
2 3

5

6

8

9

10

0
9 4 7 4 4 5 9 4 6 5 4 5 0 6 6 5 3 6 0 6 4 6 3 6 5 6 4 6 6 6 5 6 7 6 6 6 8 6 7 6 1 7 8 6 2 7 1 7 3 7 2 7 4 7 3 7 6 7 4 7 7 7 6 7 8 7 7 7 9 7 8 7 0 8 9 7 1 8 0 8 2 8 1 8 3 8 2 8 5 8 3 8 6 8 5 8 7 8 6 8 8 8 7 8 9 8 8 8 1 9 0 9 2 9 1 9 3 9 2 9 4 9 3 9 5 9 4 9 6 9 5 9 7 9 6 9 5 0 7 9 6 0 5 0

No: of sugar Mills

Source: PSST, 2005

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Problem Statement:

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This research study intends to device a guideline especially, in the context of developing our understanding about the presumption that although agriculture sector must be integrated with the development of agro-based industries but the pace of development has remained very slow in Pakistan. The conceptual framework of motivation among workers as key factor for employee retention in an organization is used to test the extent of success in agro-based industries. Research intends to link motivation among sugar workers as retention strategy and productivity. It also focuses upon why and how the objectives of the organizations, over a time vary and how best they could be examined through motivation to boost the production levels and employees retention. There are different management levels, the top level includes the Directors and Managers, the middle level includes specialists, engineers, officers, foremen, supervisors, skill and semi-skill employees. While the bottom level include all unskilled labour, coolies, helpers, peons and mess bearers etc. The study focuses that in the present era of competition all agro-based industries are under acute pressure to improve their performance to set the motivators. It is envisaged that motivators for top management are challenging job, self-actualization, achievement, prestige and advancement. Motivators for middle management are responsibility, authority, training, value and recognition. The motivators for lower management are job security, job of interest, pay, sympathetic approach, self respect, willingness to perform, loyalty to continue job and contribute towards achieving organizational goals.

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3

Policy Questions to be examined

The research is to obtain the answers of questions related with the productivity of the industry. Main questions are produced below:
1. How does production of sugar could be related to motivation among sugar industry worker? 2. Why motivation is important as employee retention and how best the managers could ensure that organizational goals are achieved thorough motivation? 3. What are the causes the causes that could lead to unwillingness to work for achieving goals? How best motivation through promotions and training would influence unwilling workers in Sugar industry?

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Research Objectives

Overall, this research intends to examine the theoretical relationship between the levels of motivation between employees, organizational security and productivity. below: 1. Review analytically the role of agro-based industries such as the sugar mills in the economic development of Sindh in particular and Pakistan in general;
2.

The specific objectives are narrated as

Examine relationship between motivational levels among workers and security concerns with productivity in the sugar industry; To examine the motivation factor by levels of employees in the industry; and of responsibilities

3.

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4.

Suggest policy recommendations.

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1.

Research Hypotheses
Agro based such as sugar industries are significant contributors in the economy of Sindh; Employment opportunities and essential labor force are significantly higher in sugar mills to that of any other agro based industry in Sindh; The levels of motivation among the workers at all levels i.e. top, middle and bottom has significantly impact on production of suger; The motivational levels among workers are significantly correlated to job satisfaction, promotion, salaries and environment in the sugar industry; and

2.

3.

4.

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Literature Review

Theorists have focused motivation as to get goals by satisfying multiple goals. To achieve multiple needs one performs well, it is to satisfy others for own goals, it is to improve behavior for accomplishment of job, it is to increase efficiency, to go for growth with satisfying human needs, intention to work towards goals, attempting to influence others, influencing people for group objectives. It is an encouragement, to work or act in a desired manner, to impel someone to act or not to act in certain ways, influence for greater satisfaction to accomplish organization goals or act of stimulating someone to get desired action to give importance to work by giving confidence and knowledge to worker. It is art of helping people to focus their minds

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and energies on doing their work as effectively as possible, will to achieve, influence to get results an internal drive to satisfy an unsatisfied need, psychological process that gives behavior, purpose and direction, a predisposition to behave in a purposive manner to achieve specific, unmet needs, process that account for an individual intensity, direction and persistence of effort towards attaining a goal. It is inner force that drives individuals to accomplish personal and organizational goals, forces within an individual that account for level, direction, and persistence of effort expanded at work, it is channel someone to achieve goals, to peruse towards the completion or organization goals, urge to move in a given direction and achieve certain goal12 given a reason to act. Figure 2 conceptualizing motivation gives the knowledge as how to run on path of motivation.

Figure 2: Conceptualizing Motivation

Motivation Is the psychologica l? process

Choice Some level of job Performance

That leads

to

of Behaviors

That results in

Source: PIM Karachi, 2005
Figure 2 demonstrates that although motivation is psychological process as in a way it is an influence upon the workers to achieve certain performance levels for an output, which must match with the
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organizational goals.

6-1 Motivational Theories and sugar Industry
Motivation is willingness to exert high level of efforts to reach organizational goals, conditioned by efforts ability to satisfy some individual need. Linking motivation among the workers performing to achieve organizational goals scholars such as Murray, 1930 suggested that motivation directly link with human personality i.e. personality of workers engaged towards achieving organizational goals. Murray argued that motivation is affected by internal and external factor that account for behavior among workers. Further Maslow, 1954 puts great emphasis upon human who even be motivated to achieve certain organizational goals but since they are under the influence of multiple needs that are not directly link with organizational goals must be taken into account. For example, sugar industry worker’s role is not to get higher productivity but his role is safety and needs or psychological satisfaction. Needs are summarized as Box No: 1 as Hierarchy of needs.

Box 1: Hierarchy of Needs Theory
Physiological needs Food, Water, Heat Air, Shelter Sex Rest. etc. Safety needs threat Social Self Esteem Appreciation Self Actualization -fulfillment Source: Maslow, 1954 9 Self-Growth, Development, Self Belongingness, Friendship, Love etc. Recognition, Attention, Respect, Freedom from Physical, Emotional Economical

George, 1960 explained that subordinates as employee inherently dislikes work and whenever possible, will attempt to avoid it, while on the other hand a person will exercise self-direction and self-control if he is motivated. Theories of George are very relevant to sugar industry as these provides guidelines for managers as on one hand employees shirk responsibility, show little ambition to work, has negative views and likes rest while on the other hand employee has control to achieve objectives and exercise commitment for achievement. Therefore, George demonstrated a firm strategy in dealing with employees for higher productivity. Further, Clenland 1960 proposed that certain needs are acquired during the individuals’ lifetime. Clenland demonstrated that people are not born with these needs but they learn them through experience. Cleland emphasized that employee wanted to achieve promotions and financial benefits for which he could work-hard and produce results. Clenland theory in regard to sugar industry provides understanding for consideration of employee benefits for greater productivity. Adam’s 1964 focused on individuals perception of how fairly they are treated compared with others. Adams suggested people are motivated to seek social equity13 in the reward they expect for performance. Adam argued that people perceive their compensation as equal to what other receive from their contribution with ratio of inputs and outcomes14.
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Adam’s theory has great role with sugar industry as

In Equity Theory Adams has its significant in the sugar industry for securing the secret data and practicing ethics. This is possible with proper reward for proper work. The reward does not mean money but it is the recognition, other benefits like promotion, health cover, accommodation, fridge benefits and social status. The theory demonstrates the ratio as ratio of secrets, data, information and records are compared with the ratio of motivational tools provided. 14 Inputs include education, experience, effort and ability. Outcome from a job include pay, recognition, benefits and promotion.

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employees could product better results with rewards and proper compensation. Another scholar Vroom, 1964 identified types of needs with the thinking process that individual like to achieve rewards. Vroom demonstrates for relationship among the individuals’ effort and performance15. Vroom’s theory is workable in sugar industry as it gives food for thought to responsible managers to design the compensation policies. Further Hertzberg, 1969 contributed towards environment, the workers have to perform for achieving organizational goals. In Hertzberg’s opinion working conditions plays significant role along-with pay, interpersonal relation, achievement and recognition from the organization, opportunity for worker to grow further at high level of decision making, it is argued that these factors are an integral part that could be examined in a sugar industry and Hertzberg demonstrated that high motivation gives high performance. To understand the Hertzberg in relation to sugar industry, he suggested hygiene factors like working conditions and policy shall more friendly with motivators to employees as his growth and recognition. Ouch’s, 1989 suggested that employees can be trusted to do their jobs as per their ability and management can be trusted to support them16. Ouch demonstrated that one of the most important tenets of this theory is that management must have a high degree of confidence in

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The expectancy theory has its weight age in the manufacturing industry like sugar mills. Employee knows his capability and he must be accommodated as per his work. The theory demonstrates that performance of the employee or his capability to secure the secret data and exercise business ethics could be enhanced by wise use of motivational tools.
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To workout for their well being

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its employees17 and employees must be very knowledgeable about the various issues of the company18. Ouch’s theory gave guideline to managers of sugar industry that while passing orders they must take into confidence to employees that why this work is to be taken and what results are required. Ouch also advised that employee must be very clearly told for the end results as well as objectives required to be achieved. Accordingly to Ouch employee could contribute in better way if he will be brought in true picture for the requirement of the assignment. These theories sum up that motivation is an act of stimulation towards a desired course of action and has the relation with the behavior of the persons on the job. Motivation is an unending process and the management should have to provide constantly for monetary as well as non-monetary incentives so that the needs of the workers may be satisfied and they may be pushed to work which zeal and enthusiasm. Psychologists view motivation as the force, which impels or incites all living organism to action in the direction towards achieving the objectives of organization. The management should constantly provide for incentives or motivating forces to intensify their desire and willingness to apply their potentialities for the achievement of common objectives. These theories were reviewed in relationship made especially to the contest of sugar industry and it is revealed that motivation is the willingness to exert high levels of efforts to reach organizational goals and it is to improve behavior for accomplishment of job. Motivation is an inner force that derive individuals to accomplish personal and
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The motivational levels among workers are significantly related to job satisfaction, promotion, salaries and environment in the sugar industry 18 But to use their knowledge is in benefit for the organization. Knowledge is a very sensitive weapon to be used more wisely

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organizational goals, thus it is forces either within or external to a person that arouse enthusiasm and persistence to peruse a certain course of action. The study of motivation helps the practicing managers to understand what prompts people to initiate action. It is argued that money is not the chief motivator at sugar industry; but there are different motivators for different tiers of the management. Theorist has explained motivational tools for different behavior to enhance productivity, which shows motivation for basic needs and other multiple needs for improving behaviors. These theories provide details for working conditions, pay, policies, relationships, achievement, recognition, growth and responsibility etc. Managers are to be tactful to take desired results by looking the nature of the employees. Threats, disciplinary actions, rewards and encouragements are to be used wisely as the employee shall behave for greater productivity. The study of motivation also enables managers to review their leadership style as managers are to be careful for better results.

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Research Methodology

The Research Design or Research methodology is the plan which researcher conduct research of at given topic. The writer Creswell said in 1998 that “research design is based on the research problem or issue being addressed”. There are three types of research designing Quantitative, Qualitative and the last one is mixed methods, which use for the analysis.
7.1 Research Onion:

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I would follow the features of the research onion as in below diagram:

8 Research Methods
One can easily ascertain that the research is based on multiple objectives giving that it is not only focus on motivation in the organization but it also looks at the security in the context of objectives of the organization, literature suggests that in situation like above the methodology must be based upon a combination of approaches to achieve intended objectives. There is no single correct

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survey method in most instances. There are a variety of methods involving the survey. Good design will match the characteristics of different approaches to the objectives and constraints. A summery of study universe and data collection tools is given at figure 3.

Figure 3: Study Universe and Data Collection Tools
Matiari Sugar Mills a) Selection of respondents (i.e. mills employees) by three major tiers with each having varying levels of responsibilities: Tier one: Top Management Tier two: Middle Management • Tier three Bottom Management19 b) Growers interviews c) Interviews with the contractors. • •

Study Universe

a) Detailed secondary data via Internet, sugar journals, PSST Conventions, PSMA handouts etc.

Mode Data

of b) Primary data using both close and open ended
modes of data collection. c) Group interviews with the growers, contractors, employees in the mills. d) In-depth interviews with Board of Directors in the mills.

collection

8.1

Use of Secondary Data and Data Analysis

Majority of research studies there is a tendency that secondary sources of information are ignored by researchers and too much emphasizes is placed on collection of primary data from the field. As a result, background or insight about the survey area is largely ignored. The analysis of such data would assist to make valid inferences about
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In-depth interviews on key parameters

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suggestions and policy recommendation for the area as a whole It is mentioned that for analysis purposes SPSS and Excel will be used.. As such, the secondary sources are grouped for this study is as under:

i. ii. iii. iv. v.

Survey data for Sugar Mills in Pakistan Development in agriculture in Pakistan. Agro base industries of the country. Conceptualizing security, motivation, management, leadership and organizational behavior. Report of sugar mills for last five years.

9 Conclusions:
This research will help us to know how employee retention is the increase productivity of the organization and how to motivate employees etc. Through the research researcher will know what are the most factors improve the employee retention i.e Pay increase, Bonuses or non financial factors i.e training & development, work atmosphere etc.

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TIMESCALE:
22nd December 2010 30th December 2010 10th January 2011 February 2011 February 2011 February / March 2011 March 2011 16

Proposal presentation Written Research proposal (draft) Written Research proposal (final) Information and data collection

Interviews with various stakeholders Analysis of the information collected Final writing of the dissertation

Submission

End of March 2011

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References:

GORDON, THOMAS. (1980) “Leader effectiveness training, Bantam. KOTTER, JOHN P. (1995) “The new Rules. New York, N.Y.” The Free Press. EMPLOYERS' FEDERATION OF PAKISTAN - PIM- (1999-2003). Human Resources Development and Personnel Management-Karachi. MASLOW, ABRAHAM H. (1965). Eupsychian Management. Homewood, III.: Richard D. Irwin, Inc., and The Dorsey Press. MASLOW, A.H. (1970). Motivation and personality (2nd ed.). New York: Harper & Row. ROTTER, J.B (1966). Generalized expectancies for internal versus external control of reinforcement. Psychological Monographs, 80 (Whole No. 609). SKINNER, B.F. (1938). The behaviour of organisms. New York: Appleton-Century-Crofts. VERNON, W. (1969). Animal aggression: Review of research. Genetic Psychology SKINNER, B.F. (1938). The behaviour of organisms. New York: Appleton-Century-Crofts. Thorpe Richard and Homan Gill (2000) Strategic Reward Systems. Pearson Education Limited, Essex. VROOM, VICTOR H. (1976) “Can leaders learn to lead?” Organizational dynamics, (17-28) Buckingham, Alan and Saunders, Peter (2004) The survey methods workbook: from design to analysis. Polity Press Ltd, Cambridge. Articles / Papers

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Abraham Rebecca (1999) the relationship between differential inequity, job satisfaction, Intention to turnover, and self-esteem. The Journal of Psychology, Vol. 133, No. 2, pp. 205-16. P.S.M.A. (2000) Papers Read at International Conference on Sugar Industry Karachi. Kickul Jill (2001) Promises Made, Promises Broken: An Exploration of Employee Attraction and Retention Practices in Small Business. Journal of Small Business Management. Vol. 39 (4): Pages 320-335.

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