EMPLOYEE MOTIVATION

INTRODUCTION

Employee motivation , i.e. methods for motivating employees, has been broadly defined as the
"psychological forces that determine the direction of a person's behavior in an organization, a
person's level of effort and a person's level of persistence"

After employees are hired and trained, it is important to motivate them to get the desired efforts
from them, to achieve organizational objectives. While designing their compensation package,
we try to meet their expectations at the outset, suitably identifying their extrinsic and intrinsic
needs, within the given policies and procedures of the organization.

However, this is restricted only in those cases, where, we can afford to become flexible, to attract
and retain talents in key positions, without contributing to the general dissatisfaction of other
employees. But major problems on employee motivation become evident when employees of an
organization start perceiving that there is a wide mismatch between their expectations and
organizational commitments. At times, such perceived expectations of the employees far exceed
the organizational commitments, resulting in a significant drop in their perception.

Motivation is a dynamic organizational-behavior issue and there cannot be any organization-

specific motivation tool. The subject of motivation, perhaps, received the highest attention from
management thinkers’ worldwide.

Even then we find that we are not able to address the problem, as employee demonization is a
perennial issue from the days of the industrial revolution. Before the industrial revolution, such
problems were non-existent, as the owners of labour services and owners of means of capital had
the same identity and the motivation for work was spontaneous in a home-centered production
system.

In this article, we have first discussed the different theories of motivation, and mentioned briefly
about the different empirical studies on motivation in India and abroad, before culling the other
issues such as concepts, objectives, process, and benefits. Such a journey is necessary because
we find this is one of the much discussed and much-debated subjects of organizational behavior
studies.

DEFINITION FOR EMPLOYEE MOTIVATION

By now it has been established that the motivational factors are the perceived needs of the
employees, which when satisfied, contribute to the employees’ performance and productivity.
But motivation, per se, can be better defined as a process of governing choices. This process may
be ‘internal or external to the individual that arouse enthusiasm and persistence to pursue a
certain course of action’. The motivation process starts with a physiological or psychological
deficiency or need that activates behavior or a drive that is aimed at a goal or incentive. All the
definitions, therefore, authenticate that motivation is a behavioral syndrome, which develops
when there is a perceived incongruence in the employees’ needs and expectations.

With the widening of such perceived gaps, employees feel demotivated and reduce their level of
performance and productivity. Contrarily, if the gap gets reduced, employees feel motivated and
contribute their best for achieving organizational objectives. From the organizational point of
view, the motivation process follows certain defined steps, which as a continuum, need to be
periodically reviewed and strategized to ensure its proper renewal. This helps to maintain the
motivation of employees, which is evident from their behavioral congruence matching the
organizational objectives.

In the first stage, it is important to identify the need deficiency of employees, if any. Need
deficiency centers around extrinsic and intrinsic needs. Extrinsic needs are those, which are
related to material and tangible gains. Increased pay, incentives, bonus, better medical facilities,
better retirement benefits, and better canteen facilities are a few examples of extrinsic needs.

Intrinsic needs on the other hand, are those which are related to mental satisfaction and are
abstract in nature. Increased status, challenges, a sense of belonging, scope for growth and
creativity, recognition, a sense of achievement, etc. are examples of such needs.
Identification of need deficiency is possible through a direct observation of the employees’
behaviour and through a survey using structured-questionnaire response. But employees, by and
large, feel sensitized about giving responses to a survey questionnaire, obviously fearing that
they will get identified for having given any response that criticizes organizational policy.
Confidentiality in survey responses can be ensured through a secret opinion poll, where the
questionnaire does not require any employee identity.

However, for better results, it is always desirable to integrate survey findings with personal
interviews, which can be in the form of open discussions with employees by their respective
seniors. Some organizations try to document such information through a 360-degree performance
appraisal, by incorporating certain items in the appraisal form itself. Existence in need deficiency
can also be understood from the trend of the employees’ performances, developing a
performance index or productivity index.

In the second phase of motivational process, organizations try to identify appropriate strategies to
close the perceived need gap of employees. There are many innovative ways to close such need
gaps without impairing the budget much. For example, organizations can increase the
employees’ pays by reducing their deferred benefits such as non-wage labour cost (NWLC) and
including such reduced amounts to their current pay.

This is particularly important for those organizations that mostly employ young people in the
exploratory age groups (less than 35 years). Similarly, making the pay performance linked also
facilitates the development of a proper compensation structure to reward and motivate good
performers. Also, gaps of intrinsic needs can be reduced by adopting an enabling organization
structure, which among others, fosters creativity and growth.

To understand the importance of extrinsic and intrinsic needs, we have illustrated the industrial
disputes scenario in India at the macro level. Figure 11.1 shows that in terms of percentage share,
intrinsic factors are also very significant. However, the severity of extrinsic and intrinsic factors
in terms of ‘man-days lost’ cannot be measured for inherent problems in data collection.

Identification of an appropriate strategy to close need gaps helps an organization to develop goal-
directed behavior among employees to achieve organizational objectives. Thus, in the third phase
of motivational process, organizations enforce goal-directed behavior. Goal-directed behavior
enhances the performance and productivity of the employees, which further influences
compensation strategies and other motivational reinforces.

Likewise, the cycle continues as an on-going process in an organization and at the end of the
continuum, needs are again re-evaluated to understand the emerging need deficiency, if any.

THE METHODS OF EMPLOYEE MOTIVATION

There are as many different methods of motivating employees today as there are companies
operating in the global business environment. Still, some strategies are prevalent across all
organizations striving to improve employee motivation. The best employee motivation efforts
will focus on what the employees deem to be important. It may be that employees within the
same department of the same organization will have different motivators. Many organizations
today find that flexibility in job design and reward systems has resulted in employees'
increased longevity with the company, improved productivity, and better morale.

EMPOWERMENT Giving employees more responsibility and decision-making authority

increases their realm of control over the tasks for which they are held responsible and better
equips them to carry out those tasks. As a result, feelings of frustration arising from being held
accountable for something one does not have the resources to carry out are diminished. Energy is
diverted from self-preservation to improved task accomplishment.

CREATIVITY AND INNOVATION At many companies, employees with creative ideas do not
express them to management for fear that their input will be ignored or ridiculed. Company
approval and toeing the company line have become so ingrained in some working environments
that both the employee and the organization suffer. When the power to create in the organization
is pushed down from the top to line personnel, employees who know a job, product, or service
best are given the opportunity to use their ideas to improve it. The power to create motivates
employees and benefits the organization in having a more flexible work force, using more wisely
the experience of its employees, and increasing the exchange of ideas and information among
employees and departments. These improvements also create an openness to change that can
give a company the ability to respond quickly to market changes and sustain a first mover
advantage in the marketplace.

LEARNING If employees are given the tools and the opportunities to accomplish more, most
will take on the challenge. Companies can motivate employees to achieve more by committing to
perpetual enhancement of employee skills. Accreditation and licensing programs for employees
are an increasingly popular and effective way to bring about growth in employee knowledge and
motivation. Often, these programs improve employees' attitudes toward the client and the
company, while bolstering self-confidence. Supporting this assertion, an analysis of factors
which influence motivation-to-learn found that it is directly related to the extent to which
training participants believe that such participation will affect their job or career utility. In other
words, if the body of knowledge gained can be applied to the work to be accomplished, then the
acquisition of that knowledge will be a worthwhile event for the employee and employer.

QUALITY OF LIFE the number of hours worked each week by American workers is on the rise,
and many families have two adults working those increased hours. Under these circumstances,
many workers are left wondering how to meet the demands of their lives beyond the workplace.
Often, this concern occurs while at work and may reduce an employee's productivity and morale.
Companies that have instituted flexible employee arrangements have gained motivated
employees whose productivity has increased. Programs incorporating flextime, condensed
workweeks, or job sharing, for example, have been successful in focusing overwhelmed
employees toward the work to be done and away from the demands of their private lives.

MONETARY INCENTIVE For all the championing of alternative motivators, money still
occupies a major place in the mix of motivators. The sharing of a company's profits gives
incentive to employees to produce a quality product, perform a quality service, or improve the
quality of a process within the company. What benefits the company directly benefits the
employee. Monetary and other rewards are being given to employees for generating cost-savings
or process-improving ideas, to boost productivity and reduce absenteeism. Money is effective
when it is directly tied to an employee's ideas or accomplishments. Nevertheless, if not coupled
with other, nonmonetary motivators, its motivating effects are short-lived. Further, monetary
incentives can prove counterproductive if not made available to all members of the organization.
OTHER INCENTIVES Study after study has found that the most effective motivators of workers
are nonmonetary. Monetary systems are insufficient motivators, in part because expectations
often exceed results and because disparity between salaried individuals may divide rather than
unite employees. Proven nonmonetary positive motivators foster team spirit and include
recognition, responsibility, and advancement. Managers, who recognize the "small wins" of
employees, promote participatory environments, and treat employees with fairness and respect
will find their employees to be more highly motivated. One company's managers brainstormed to
come up with 30 powerful rewards that cost little or nothing to implement. The most effective
rewards, such as letters of commendation and time off from work, enhanced personal fulfillment
and self-respect. Over the longer term, sincere praise and personal gestures are far more effective
and more economical than awards of money alone. In the end, a program that combines
monetary reward systems and satisfies intrinsic, self-actualizing needs may be the most potent
employee motivator.
 COMPANY PROFILE

MODERN AGE INTERNATIONAL

Modern Age group with its head quarters in Dubai is a premier international freight

forwarding company that provides a one-stop solution for every client for their logistical needs

since its inception in 1985. Globalization and the internet have opened markets to international

competition and enhanced the transportation of goods. We have contacts with various

international carriers / agents that secure space on movements worldwide. Our extensive network

of agents and partners allow our clients to benefit from a package tailored to their individual

needs and service requirements whether by air, sea or road.

As an international freight forwarding company, Modern age shipping offers a

comprehensive air, sea and land freight service that is committed to the safe, reliable and cost-

effective delivery of your consignment. We provide a cost effective road freight service using

our own / outsourced fleet of vehicles and carefully chosen carriers who will ensure your

consignment arrives on time, every time! We have a worldwide air and sea freight forwarding

service from port-to-port and door-to-door with weekly departures. Our experienced freight

specialists work closely with you to develop just the right solutions to meet your specific

shipping needs utilizing the most advantageous routes, carriers and cost-effective methods of

transportation.

Modern age international trading was started in the year 2008 at Cochin, Kerala India as a

subsidiary of modern age shipping to cater to the needs of shipping and cargo industry and now

it has grown into an independent company dealing in UN certified DG cartons, UN specified

inner packing for chemical transportation, packing materials hygiene care products like tissues,

ear buds, napkins, kitchen towels etc.

Modern age international started as a regional office of modern age international trading

and is independent in its activities of trading apart from supporting its parent companies. Modern

age international is the all Kerala supplier of space luggage-which is an internationally

recognized brand of high quality luggages.We have network offices and representatives all over

Kerala and in major Indian cities. Our product list is growing with quality consumer oriented

products and services.

FREIGHT FORWARDING

1. AIR FREIGHT

The company offers a comprehensive air service that is committed to the safe, reliable and

cost-effective delivery of your consignment. We have an extensive network of dedicated agents

across the world to ensure timely customs clearance and delivery. We have the expertise and

ability to move single or complex shipments by air, at any time and to any destination. Rest

assured that whatever the size of your organization and the scale of your project Modern age

shipping will deliver.

 Daily departures from all UAE Airports

 Door to Airport & Door to Door Services

 Import and Export Services available to any destination

 All import clearances undertaken

 Duty and Tax payment facilities available

 Cross Border services available

  Direct Airline Services at Preferential Rates

 Pallet Building / Unit Load Device (ULD)

 Global Consolidations to Airport or Delivered

 24 Hour Customer Support Team

 IATA Cargo Agent

2. SEA FREIGHT

The company offers a worldwide freight forwarding service by sea from port-to-port and

door-to-door, with weekly departures.

We strive to deliver competitive rates and solutions for moving our client’s consignments

around the world. From personal effects to anything as large as cars and machinery you can be

confident that Modern age shipping will deliver the highest levels of speed, efficiency and

reliability.

Our shipping services include:

 Full Container Load (FCL)

 Less Container Load (LCL)

 Door-to-Door

 Door-to-Port

 Import Services

 Documentation

 RO/RO (Roll on / Roll off)

 Conventional / Break-bulk Services (For large pieces of machinery)

 3. ROAD FREIGHT

Road transport is the most convenient method of delivery as goods can be collected from the

point of supply and delivered to your chosen destination with little or no intermediate handling.

The company can offer a cost effective road freight service using our own fleet and

outsourced fleet of vehicles with carefully chosen carriers who will ensure your consignment

arrives on time, every time!

With the support of our working partners and strategically placed hubs we are able to deliver

throughout the United Arab Emirates and beyond the borders of UAE whilst maintaining the

highest levels of service.

Rest assured that Modern age shipping has the full skill and experience to offer an unrivalled

coverage and service to all our clients.

VISION

Our vision is to be the No. 1 freight forwarder in the Asia. Our aim is to be the first

choice for people who wish to use freight forwarding and value added services. Through superior

customer services and efficiency of operations we will continue to offer 'Quality Services' which

is seen as best in its class.

MISSION

"To be recognized as a market leader in the freight forwarding industry by way of

providing customized services, where our core culture, people, innovation and ethical values

represent a strong philosophy towards meeting and exceeding customer expectations."

OPERATIONS

A key area of our expertise lies in developing sound solutions, and then putting them into

practice to achieve intended results. Our strengths in developing and deploying solutions include

those of management and forwarding processes = air, sea, land transportation, documentation,

warehousing, dangerous goods handling, storage, packing & removals and other customized

solutions.

The basic premise of our operations is that whoever owns the supply chain ought to be

able to communicate with any one of their trading partners, at any time. We develop totally

integrated solutions that foster communication between suppliers, manufacturers, distributors

and end users.

APPROACH

The company is dedicated to offering efficient and cost effective freight forwarding and

value added solutions that are founded on:

 Keen understanding of customers and their respective businesses

 Outstanding quality and operational excellence

 Integration of assets and expertise

 Flexibility, agility and innovation across all operations

  Trained and professional workforce

While each customer has certain unique requirements to be able to operate at peak

performance, the value of our MODEL is realized by the integration of people, processes and

technology into one seamless operation.

CUSTOMER SATISFACTION

Our focus lies in ensuring that customers and their satisfaction is ensured that will help place

our organization prominently in the industry. This also helps us to stay ahead of our competitors

in the industry. We follow the below rules to ensure effective services to our customers:

 Entire clearance processes of pre-shipments

 Consultation for most effective air and sea shipments

 Timely action and response on clients enquiries

 Complete documentation on shipments

 Timely deliveries

 Constant tracking of cargoes and customer updates

QUALITY POLICY

The company's fundamental principles of work are the highest quality degree and

reliability of given services. We closely listen and carefully analyze your wishes, with the

purpose to provide input to continually improve of our service

INDUSTRIAL PROFILE

Industry snapshot

 The Indian Logistics Industry is estimated at US$ 125 billion in 2010

 Generated employment for 45 million people

 The industry is expected to grow annually at the rate of 15- 20 per cent, reaching

revenues of approximately $ 385bn by 2015.

 Highly Unorganized with organized sector responsible only for 6%

 Market share of organized logistics players is also expected to double to approximately

12 per cent by 2015

 The size of the 3PL industry is estimated to be~US$1.5 bn in FY11 (1% of logistics cost).

 The share of 3PL services is expected to increase from 6% in FY06 to 13% in FY11, at a

CAGR of 25%

 Logistics costs are 10-20% of GDP

 Indian Infrastructure is rated 54th among the 59 countries -- Road : 56/59, Rail: 25/59,

Seaport: 51/59, Airport: 40/59

Several factors helped the growth of logistics industry in India over the decade that

includes changing tax system, rapid growth in industries such as automobile, pharmaceuticals,

FMCG and retail. However, major sectors that are investing huge amounts in logistics industry

are aviation, metal & mining and consumer durables. With increasing competition and cost,

focus on outsourcing, entry of foreign players is having positive impact on the industry. Three
major contributors for the growth of the logistic industry are: emergence of organized retail,

increase in foreign trade and India becoming soon the manufacturing hub.

INDUSTRY TRENDS

TRANSPORTATION

Container cargo represents only about 30% (by value) of India's external trade-much

lower when compared with the global containerized cargo average of 70-75%. At a growth rate

of 12%, India's container cargo traffic is estimated to reach 15 million TEUs by FY16E from

about 7.5 million TEUs now (at 12 major ports). In comparison, China has created capacity at its

ports to handle more than 100 million TEUs a year. Out of the 15mn TEUs of total container

traffic, we estimate Exim rail container traffic to be 5mn TEUs by FY16E. This would be a huge

opportunity and will significantly benefit container rail operators.

Rising investment in the rail and port spaces also fuels growth in allied industries like

wagon manufacturing, port handling equipment, railway electrification systems and construction

companies.

To reduce the transportation cost and for quicker movement of cargo Multimodal

transport operation is introduced (MTO). MTO helps exporters with less documentation for

instance single document for all modes of transport.

THIRD PARTY LOGISTICS

Outsourcing is everywhere. Logistics industry is no exception. Logistics services like

transportation, warehousing, cross docking, Inventory management, packaging and freight

forwarding all are part of third party logistic services. Companies in India currently outsource an

estimated of 52% of logistics. And 3PL industry is estimated to be US$ 1.5bn in FY11. 3PL

represents only 1% of logistics cost emphasis its significance in the industry. Future is no doubt
lying in outsourcing. As the growth in the 3PL market is expected to be in the range of 25-30%

CAGR over FY11-13E. As of now, the 3PL activity is limited to only few industries like

automotive, IT hardware, and telecom and infrastructure equipment.

The organized 3PL market in India can be categorized into three major

segments – public sector, private sector and foreign entrants. Some of the major players in

each category are: TVS logistics, DIESL (TATA), Panalpina, TCI, Gati, Allcargo, V Trans,

Total, VRL and Reliance etc.

PRIVATE PARTICIPATION

The industry is becoming more competent with the entry of global giants like Gazeley

Broekmen (Wal-Mart's logistics partner), CH Robinson and Kerry logistics and large Indian

corporate houses like Tata, Reliance and Bharti group. A series of mergers and acquisition like

DHL acquired Blue Dart, TNT acquired Speedage Express Cargo Service and FedEx bought

over Pafex, are also leading to consolidation industry at various levels and segments. Many of

these companies are planning to broaden their areas of operation and are also planning to

develop their own logistic parks across the country. If the trend continues as per the estimates,

the market share of the organized logistics players is expected to double from 6% in 2007 to

approx. 12% by 2015.

EXPRESS LOGISTICS

Organized players have monopoly over the express logistics industry. 65% of express

business is in the hands of organized players, while semi-organized and unorganized players

accounts for 25% and the remaining 10% of the market by EMS Speed Post. But altogether

different picture can be witnessed in the domestic segment. In domestic front, unorganized
players hold 41% of the market share based on price advantage. While organized players

accounts for 45% and EMS Speed Post the remaining 14%. Key players in express cargo are:

DHL, FedEx, TNT, UPS, AFL, DTDC, First Flight Couriers, TCI Express, Gati and VRL etc.

WAREHOUSES

Recently, warehouses have become key growth drivers in the logistics industry. Apart

from conventional storing services, warehouses now providing value-added services like

consolidation and breaking up of cargo, packaging, labeling, bar coding and reverse logistics etc.

warehousing and related activities account for approx. 20% of the total logistics industry. Most

of the warehousing space in India lies with unorganized players in domestic front, which is

causing wide supply and demand gap in storage space. According to KPMG, an additional

120million square feet of warehousing space is needed by 2012 to bridge this gap. Currently, the

organized warehousing industry in India has a capacity of approx. 80million metric tons and is

growing at 35 to 40 per cent per annum. An investment of approximately US$ 500million is

being planned by various logistics companies for the development of about 45million square feet

of warehouse space by 2012.Many players in this segment such as Multi Modal Logistics Park,

Mega Food Parks and Free Trade Warehousing Zones have planned next generation storage

models.

Current status and dynamics of the industry

The extant literature on the logistics industry points to a number of issues that service

providers have to address, such as pricing pressures, high costs of operations and low returns on

investments, hiring and retaining talent, pressure from clients to broaden the range of service

offerings and internationalize operations, demand for customized solutions and more value-
added services, besides infrastructural bottlenecks and government regulations. Service providers

complain that clients expect them to have the latest software, databases and ERP (Enterprise

Resource Planning) packages, and invest in new technologies such as RFID and satellite-based

real-time tracking systems. Clients perceive that these investments are part of the basic service

package, and often do not want to match the same with increased payments for these additional

services. Pressure from clients to broaden the range of service offerings and internationalize

operations, has forced service providers to look for suitable alliances, mergers and acquisitions

that help fill the gaps in service offerings, and industry verticals and geographic areas served,

achieve economies of scale and enhance service providers’ capability to support international

operations.

Current scenario of logistics industry in India

India has been growing rapidly with over 1 billion potential consumers and a 200 million

middle class. Combined with a huge talent pool and progressive government policies, India is the

focal point of growth. The logistics industry has over the years faced a few challenges such as

central and state tax, local levies licenses, registrations and paperwork with infrastructure

development. The market although large is predominantly fragmented with multiple factors

demographic, retail, media, land & supplier fragmentation. But the scenario is fast improving

with an enthusiastic upswing in infrastructure. The golden quadrilateral project, a planned

network of divided 4-lane highways to connect all its major cities, is a good start. This will

enable a significant increase in inbound and outbound cargo. Another initiative in planning has

been the development of six world class airports and 20 seaports. There are several emerging

trends in India. The current logistics market is 6.7 billion Euros, with in sourced logistics at 91%.

There will be a considerable increase in this sector. The key driving factors for supply chain
management are the changes in regulatory framework, for example, vat. Globalization also plays

a major role in the increasing the efficiency of supply chain management. The attached clip

effectively shows the impact of capabilities gap. The key challenge for supply chain is to deliver

the right product, in the right quantity, in the right condition to the right customer at the right

place, at the right time, at the right cost.

This industry gives large number of jobs in shipping for dedicated employees. It requires

a huge and committed manpower to manage for functioning of different segments. Jobs in

shipping industry require qualified employees for ship management, and to fulfill the trading

formalities. The shipping industry, not only is a source of employment for the people, who are a

directly a part of it, but also offers employment to other inter-related industries.
 OBJECTIVE AND SCOPE OF THE STUDY

Objectives

 The purpose of motivation is to create condition in which people are willing to work with
zeal, initiative. Interest, and enthusiasm, with a high personal and group moral
satisfaction with a sense of responsibility.
 To increase loyalty against company.
 For improve discipline and with pride and confidence in cohesive manner so that the goal
of an organization are achieved effectively.
 Motivation techniques utilized to stimulate employee growth.
 For the motivation you can buy man’s time. Physical presence at a given place.
 You can even buy a measured number of skilled muscular motions per hour or day.
 Performance results from the interaction of physical, financial and human resource.
 For the achieve a desire rate of production.

Scope
This study was completed using the input of the employees of the company in all different
departments. These employees were surveyed for the purpose of discovering what is most
motivating to them in the workplace. Employee motivation is defined as the eagerness or drive in
an employee that directly influences their level of involvement or performance in the workplace.
Motivating factors and incentives are reasons for employee motivation, and in order to best
evaluate and describe which of these factors are most and least critical to employees, we have
split this study up into the following criteria: communication, income, long-term incentives, and
non-financial incentives.
 METHODOLOGY

The project consisted of finding out that factor which motivates the employees the most. The
most appropriate means to ascertain such information was to conduct a motivation survey. The
research undertaken was a descriptive research as it sought to describe the characteristics of a
small sample of employees with regards to what motivated them the most and also classifying
them into personality driven motivational profiles. The project consisted of three stages.

STAGE 1 – Gathering information and inputs to frame the necessary questions for the survey.

STAGE 2 – Collecting data using the survey method, by getting the sample employees fill the
questionnaire.

STAGE 3 – Analyzing and interpreting the primary data collected from the survey responses.

Research Methodology: -

 Problem definition – To ascertain what factor motivated the employees the most
according to them and also determines their intrinsic motivational profiles.

 Objectives – To conduct a motivation survey by framing and administering a

questionnaire to sample respondents.

 Methodology – Descriptive research

 RESEARCH DESIGN

A research design is a framework or blueprint for conducting a research project. The research
design used for this project is a descriptive research design as it is used in describing facts and
characteristics of a sample population under observation. In this project, it is used to describe the
key motivator of individual employees and to determine their various motivational profiles.

For the fulfillment of this purpose, primary data had to be collected through a questionnaire that
was to be filled by a sample of employees.

SOURCES OF DATA

Both primary and secondary source of data were used in conducting the research.

PRIMARY SOURCES

In getting primary data there are several approaches available to gathering data. In order

to collect reliable and valid information, the researcher contacted employees of the Human

resource department of the bank. The method used in collecting the primary data was

questionnaire.

QUESTIONNAIRES

The purpose of using questionnaire was to identify and assess the effectiveness of the

recruitment and selection practices of the organizations. A set of questionnaire was prepared with

open – ended as well as close ended questions.

SECONDARY SOURCES

The study also made use of secondary data in collecting information. The sources of the

secondary data include books, internet search, articles, and journals among others. This helped to

identify how others have defined and measured key concepts, the data sources that of others used

and this helped to discover how this research project is related to other studies.

SAMPLE SIZE

A sample size of 50 employees was chosen from the selected organizations for the study.

This was based on the staff strength of the various departments and to ensure that the sampled

was representative enough to draw conclusion.

DATA COLLECTION INSTRUMENT

The researcher used questionnaire. The researcher prepared the questionnaires to be

responded by the sampled employees of the organization. The questions were designed to make

the purpose of the study successful after the results have been ascertained. This instrument gave

expected information about the recruitment and selection procedures or practices.

ADMINISTRATION OF INSTRUMENTS

Copies of the questionnaire were distributed to respondents at work places. After some

time, the researcher went back and collected the answered questionnaires. The researcher

explained the questions to the respondents thoroughly after copies of the questionnaire were

given them.
DATA ANALYSIS

The collected data analyzed manually based on questionnaire and the collected data were

statistically analyzed, using the Statistical Package for Social Sciences software. Representations

like tables and charts were used to ensure easy and quick interpretation of data.
 REVIEW OF LITERATURE

In the current competitive climate, the organization must have an intense interest in
maximizing the resources at hand. Leadership must be alert to the ways in which fluctuating
outside conditions and internal changes can dramatically impact the group's dynamics
required for peak performance. This will best be accomplished by motivating everyone to
work together.

Motivation is the art of creating conditions that allows everyone to get their work done at
their own peak level of efficiency (Gellerman, 1992). It helps people to focus their minds
and energies on doing their work as effectively as possible. It is the inner force that drives
individuals to accomplish personal and organizational goals (Lindner, 1998). Through
motivation, skilled can bring out hidden or untapped capabilities of their people. At the same
time, this will give each person involved a greater degree of job satisfaction and make them
more successful as individuals.

Employees have the need to be motivated for survival. Motivated employees are needed in
the rapidly changing workplaces. Motivated employees are more productive, and they help
organizations survive. To be effective, managers need to understand what motivates
employees within the context of the roles they perform. Employees, on the other hand, must
be willing to let managers know what motivates them, and managers must be willing to
design reward systems that motivate employees.

Identifying the factors that affect the quality and quantity of employees' job performance is
an important issue in the study of work and the workplace. Managers routinely make
assumptions about the characteristics that enhance or detract from performance. It is
generally assumed, for example, that greater organizational commitment contributes to better
performance as more committed employees should be more motivated to work hard on their
organization’s behalf. Performance is also assumed to be affected by structural and task
characteristics such as whether employees are able to exercise autonomy and discretion in
their work, the extent to which their tasks are clearly defined, and whether they are rewarded
for hard work (Cheng, et al, 1996).
Of all the functions a manager performs, motivating employees is arguably the most
complex. This is due, in part, to the fact that what motivates employees changes constantly.
A manager should be conscious of what motivates employees, what energizes, what makes
them feel more optimistic, and what type of rewards encourage them. These are the
important things that make employees reach their full potential. Once high performance has
been demonstrated, rewards can become important as inducements to continue. Internal, self-
administered rewards that can occur following high performance include a sense of
achievement based on attaining a certain level of excellence, pride in accomplishment, and
feelings of success and efficacy (Kleinbeck, 1990).

Organizations use different motivation theories for motivating employees. In Hertzberg's

theory, management should begin by focusing on hygiene factors such as pay and job
security, before focusing on motivator factors which include interesting work and full
appreciation of work done. On the other hand, in Adams' equity theory, management should
begin by focusing on areas where there may be perceived inequities, such as pay and full
appreciation of work done, before focusing on interesting work and job security. Another
theory by Vroom's suggests that management should begin by focusing on rewarding,
employee effort in achieving organizational goals and objectives.

According to Motivation in the Real World by Gellerman (1992), the most effective
motivation systems in successful American companies are: selectivity in hiring, generous pay
and benefit programs, and encouragement of long-term employment. Other strategies include
flexible implementation of policies, rather than rigid rules, cooperative unions, or no unions
at all, and a conscious policy of putting employee motivation above all other priorities.

On the other hand, a research by Lindner (1998) on Understanding Employee Motivation,

determined the ranked order of motivating factors. The top answers were interesting work,
good wages, and full appreciation of work done. These factors are followed by job security,
good working conditions, promotions and growth in the organization. Feeling of being in on
things, personal loyalty to employees, tactful discipline, and sympathetic help with personal
problems ranked low on the results.

Other methods of increasing employee motivation include job enlargement, job enrichment,
promotions, internal and external stipends, monetary, and non-monetary compensations. Job
enlargement can be used to make work more interesting for employees by increasing the
number and variety of activities performed. Managers can also use job enrichment to make
work more interesting and increase pay by adding higher level responsibilities to a job and
providing monetary compensation (raise or stipend) to employees for accepting this
responsibility.

To effectively motivate employees, the leader has to learn how to communicate effectively
with the employees. The leader should first spell out what he/she wants them to do, reassure
them that if they're willing to try, they really can do what the leader has asked them to do,
and finally, convince them that it's very much in their best interests to try (Gellerman, 1992).
The leader should also learn the skill of how to listen to what the employees have to say.
Employees are motivated when they are given the opportunities to take part in achieving the
objectives of the organization, and made to feel that what they say and do have worth.

Acknowledging efforts is also essential for a motivated and satisfied work force (Denton,
1992). It stimulates new ideas and encourages better performance and team spirit. In
consensus decision making, employees are given the opportunity to contribute their ideas and
take part in creating decisions. It does not mean that everyone has to agree; only that people
believe that the right facts and right reasons are used to make the right decision. The real
benefit of this process is not getting an answer but going through the process to get the
answer. Good employees keep pushing and keep digging for facts until everyone agrees on a
decision. Consensus decision-making makes the employees think about the decision, and the
leader gets commitment and motivation from the process.

Restructuring jobs can improve workplace, and motivate both managers and employees. This
broadening and restructuring jobs can be a partial answer to motivating today's work force
(Denton, 1992). One way to do this restructuring of work involves broadening job
responsibilities. For instance, a process of reducing the number of managerial layers within
its organization can be implemented. To improve motivation and allow more lateral
movement within the organization, there can be reduced pay grades so managers in different
disciplines could move easily across the organization. It also broadens the responsibilities of
many of the managerial positions, believing that broader responsibilities would increase the
challenge and satisfaction within the organizations.
 DATA ANALYSIS AND INTERPRETATION

Table 1. Gender
Gender Responds Percentage
Male 41 82%
Female 9 18%

Chart 1.

Interpretation
In the above diagram showing that 82% of the employees are Male and 18% of the
employees are Female.
 Table 2.
Age Group
Age. Responds Percentage
below25 14 28%
25-35 21 42%
35-45 10 20%
45-55 5 10%
 Bibliography

Books

Denton, D. Keith (1992). Recruitment, Retention, and Employee Relations: Field-Tested

Strategies for the '90s. Quorum Books: Westport, CT.

Gellerman, Saul W. (1992). Motivation in the Real World: The Art of Getting Extra Effort
from Everyone-Including Yourself. Dutton: New York.

Kleinbeck, U., Quast, H., Thierry, H., Häcker, H. & Forschungsgemeinschaft, D.,eds (1990).
Work Motivation. Lawrence Erlbaum Associates: Hillsdale, NJ.

Rethlingshafer, Dorothy (1963). Motivation as Related to Personality. McGraw-Hill: New York.

Journals
 Cheng, Yuan & Kalleberg, Arne (1996). Employee job performance in Britain and the United
States in Sociology, Vol. 30, Issue 1, pp. 115+. British Sociological Association Publication
Ltd.

Lindner, James R. (1998). Understanding Employee Motivation. Extension Journal, Volume 36,
Number 3. Also available at: http://www.joe.org/joe/1998june/rb3.html

Kreps, David M. (1997). Intrinsic Motivation and Extrinsic Incentives. American Economic
Review, Vol. 87, Issue 2.

Shah, A., Sterrett, C., Chesser, J., & Wilmore, J. (2001). Meeting the Need for Employee
Development in the 21st Century. SAM Advanced Management Journal, Vol. 66, Issue
2, Page 22. Gale Group: New York.

Internet

Dougan, Cheryl. Employee Motivation is Important! Available at:

http://www.feedyouroptimism.com/employeemotivation.html

Accessed 14/5/03.

Lee, David (2002). PRIVATEHow to Maximize Employee Performance While Minimizing

Employee Stress. Available athttp://www.humannatureatwork.com/Workplace-Stress-
4.htmAccessed 14/05/03.