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FCE 372 GROUP 11

3/25/2014

ENGINEERING MANAGEMENT FCE 372 GROUP ASSIGNMENTS

PRESENTED BY : VINCENT ODHIAMBO ODHIAMBO

FCE 372 GROUP 11

3/25/2014

GROUP MEMBERS
F16/ F16/ F16 F16 F16 F16 F16 F16

FCE 372 GROUP 11

3/25/2014

TOPIC ISSUE
Hiring talent is perhaps not as difficult, as is retaining and keeping them motivated. While favorable image of an organization may attract someone to get in, at the same time it is also crucial for the employees to find appreciation for and satisfaction from their work. Elaborate this statement and critically discuss the underlying issues.

FCE 372 GROUP 11

3/25/2014

TABLE OF CONTENTS

Elaboration of Topic Statement Definitions of Motivation, Job satisfaction and Staff turnover Staff turnover in depth Steps in attracting and retaining talented employees Benefits of having motivated and satisfied employees Myths about motivation Theories of employee motivation Strategies for enhancing job satisfaction and motivation Challenges in Motivating employees Managerial Leadership List of References

FCE 372 GROUP 11

3/25/2014

ELABORATION OF TOPIC STATEMENT


Hiring talent is perhaps not as difficult, as is retaining and keeping them motivated. While favorable image of an organization may attract someone to get in, at the same time it is also crucial for the employees to find appreciation for and satisfaction from their work. Elaborate this statement and critically discuss the underlying issues.

FCE 372 GROUP 11

3/25/2014

In spite of having a good Image and Public relation, an organization still needs to address issues concerning its employees in order for it to succeed in retaining them and deriving maximum output from them. Employees who are not motivated and feel dissatisfied with their jobs may leave their current organization for better and more satisfying ones. It takes more than just attracting good employees, for success of an organization.

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Having talented employees does not necessarily guarantee desired output in an organization. In dealing with employees, an intangible factor of will or freedom of choice is introduced and employees can increase or decrease their productivity as they choose.

This human quality gives rise to the need for positive motivation. An employees performance can be defined as being determined by the interaction between ability and motivation: What happens if Performance = Ability x Motivation Motivation is less than
1 or Greater than 1?

The first(Ability) determines what he/she can do, the second (Motivation)determines what he/she will do.

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Therefore motivation is the key element in management of employees .It is of utmost importance

FCE 372 GROUP 11

3/25/2014

WHAT IS MOTIVATION?
Motivation is the willingness to do something. It is the consequence of an interaction between the individual and the situation. People who are motivated exert a greater effort to perform than those who are not motivated. Motivation is a process which begins with a physiological or psychological need or deficiency which triggers behavior or a drive that is aimed at a goal or an incentive.

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WHAT IS JOB SATISFACTION?


Job Satisfaction is the Degree of enjoyment employees derive from doing their jobs. The more the satisfaction, the more willingness or drive to do the job or engage in a particular activity.

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WHAT IS EMPLOYEE TURNOVER?


This is the ratio of number of employees that leave a company to the number of employees on the payroll. The reasons for leaving could be resignation, attrition or dismissal.

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3/25/2014

TURNOVER CLASSIFICATION SCHEME

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As Figure above suggests, the first important distinction in turnover is between voluntary and involuntary. Voluntary turnover is initiated by the employee; for example, a worker quits to take another job. Involuntary turnover is initiated by the organization; for instance, a company dismisses an employee due to poor performance or an organizational restructuring. Another important distinction is between functional and dysfunctional voluntary turnover. Dysfunctional turnover is harmful to the organization and can take numerous forms, including the exit of high performers and employees with hardto-replace skills, departures of women or minority group members that erode the diversity of your companys workforce, and turnover rates that lead to high replacement costs.

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By contrast, functional turnover does not hurt an organization. Examples of this type of turnover include the exit of poor performers or employees whose talents are easy to replace. Some voluntary turnover is avoidable and some is unavoidable. Avoidable turnover stems from causes that the organization may be able to influence. For example, if employees are leaving because of low job satisfaction, the company could improve the situation by redesigning jobs to offer more challenge or more opportunities for people to develop their skills. Unavoidable turnover stems from causes over which the organization has little or no control. For instance, if employees leave because of health problems or a desire to return to school, there may be little the organization can do to keep them.

FCE 372 GROUP 11

3/25/2014

WHY TURNOVER MATTERS


Turnover matters for three key reasons: (1) it is costly; (2) it affects a businesss performance; (3) it may become increasingly difficult to manage.

TURNOVER,MOTIVATION AND JOB SATISFACTION


Job Satisfaction:
SATISFACTION/MORALE

Degree of enjoyment employees derive from doing their jobs

Morale:
An overall positive employee attitude toward the workplace

The percentage of employees that leave each year

TURNOVER

Turnover:

SATISFACTION/MORALE

TURNOVER

FCE 372 GROUP 11

3/25/2014

STEPS TO ATTRACT AND RETAIN TALENTED EMPLOYEES


Brilliant marketing campaign When it comes to attracting people from outside your company, one of the most important things is brand presence. If you have a recognizable brand, built on the back of brilliant and memorable marketing campaigns, then you become a destination company that people want to work at. Fun, energetic brands, especially those with humor in their advertising, tend to be magnets for young, ambitious and talented employees.

FCE 372 GROUP 11

3/25/2014

Great work environment: flexible, caring and positive Companies that support family lifestyles and really support their employees in times of need quickly gain a reputation for being great places to work. Of course, some unscrupulous employees will take advantage of a supportive system, but over time a positive environment tends to gather momentum.

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Offer

great work experience for interns and newcomers

Most organizations use internships as an opportunity to get some of those annoying odd jobs finished. Most likely the intern will then tell their friends that the place is terrible but, hey, they can now tick it off the to-do list on their way to finding somewhere better to work. If you give an intern an end-to-end task, one in which they can work on something at the beginning, right through to completion and then allow them to witness an effect theyve created (perhaps a small scale marketing campaign) then you not only provide a great learning experience but you also give them a reason to come back!

FCE 372 GROUP 11

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Know the rates for staff: Make sure its attractive and not low Although I often talk about salary as being a poor motivator of good working performance, there is a reality that needs to be faced: if you cut too close to the bone with salary packages then you are giving an excuse for job applicants to look elsewhere. You dont have to be excessive, but you do need to make sure youre not at the very lowest end of the scale unless you can provide clear and rewarding career pathways.

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Offer opportunities to learn, travel be creative!

When you want your talented employees to grow, the first thought that most management teams have is to push them towards structured education. Although it is effective, you can be a bit more creative and memorable than this! Some businesses use employee of the month schemes or a fancy lunch as a reward, but if the aim is to reward your team member and help them grow then think about extending their world exposure. When you give someone a memorable experience it is much more exciting and motivating than any of these predictable rewards.

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Career progression and opportunities for advancement There is nothing more demotivating than a ceiling. If someone feels they have reached their limit within an organization their performance will plateau and theyll work for comfort. Larger companies have the benefit of mapping out a career path and providing promotion as an incentive to work harder and achieve more.

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Profit sharing

When people feel as though they are part of something bigger they tend to present more altruistic behaviors and a stronger work ethic. One such method is to offer shares or profit sharing for employees that have done particularly well, or have been an integral part of a successful advancement of the company. Although it is a monetary reward, profit sharing, particularly by way of shares in the company, works differently because it is not seen as cash. When employees feel like they own part of the company they work for, they will likely show more commitment and pride.

FCE 372 GROUP 11

3/25/2014

BENEFITS OF HAVING MOTIVATED AND SATISFIED EMPLOYEES


A well-motivated workforce can provide the following advantages: Better productivity (amount produced per employee). This can lead to lower unit costs of production and so enable a firm to sell its product at a lower price.

Lower levels of absenteeism This is because the employees are content with their working lives.

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Lower levels of staff turnover (the number of employees leaving the business). This can lead to lower training and recruitment costs. Improved industrial relations with trade unions. As there are less complains from your employees since you adhere to the unions regulations. Contented workers give the firm a good reputation as an employer. This makes it easier for the firm to recruit the best workers. Higher Quality of Service or Product. Motivated employees are likely to improve product quality or the customer service associated with a product.

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MYTHS ABOUT MOTIVATION


Myth #1 ---I can motivate people
Not really -- they have to motivate themselves. You can't motivate people anymore than you can empower them. Employees have to motivate and empower themselves. However, you can set up an environment where they best motivate and empower themselves. The talent lies in knowing how to set up the environment for each of your employees.

Myth #2 ---Money is a good motivator


Not really. Certain things like money, a nice office and job security can help people from becoming less motivated, but they usually don't help people to become more motivated. A key goal is to understand the motivations of each of your employees.

FCE 372 GROUP 11

3/25/2014

Myth #3 --- Fear is a good motivator


Fear is a great motivator -- for a very short time. That's why a lot of yelling from the boss won't seem to "light a spark under employees" for a very long time.

Myth #4 --- I know what motivates me, so I know what motivates my employees
Not really. Different people are motivated by different things. I may be greatly motivated by earning time away from my job to spend more time my family. You might be motivated much more by recognition of a job well done. People are not motivated by the same things. Again, a key goal is to understand what motivates each of your employees.

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Myth #5 -- "Increased job satisfaction means increased job performance


Research shows this isnt necessarily true at all. Increased job satisfaction does not necessarily mean increased job performance. If the goals of the organization are not aligned with the goals of employees, then employees aren't effectively working toward the mission of the organization.

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3/25/2014

EARLY THEORIES OF MOTIVATION


These include: Maslows hierarchy of needs Equity Theory Mc Gregors Theory X and Theory Y Motivation Hygiene Theory

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MASLOWS HIERARCHY OF NEEDS THEORY

Works on the assumption that the behavior of individuals at a particular moment is usually determined by their strongest need. Based on hypothesis that within every human being there exists a hierarchy of five needs.

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MASLOWS HIERARCHY OF NEEDS

SelfSelfActualization Actualization Needs Needs Esteem Needs Esteem Needs


Social Needs Needs Social Security Needs Security Needs Physiological Needs Physiological Needs

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Five needs: 1.Physiological : Basic needs of hunger, thirst, shelter, sex and other body needs. 2.Safety: security and protection from physical and emotional harm 3.Social: affection, belongingness, acceptance and friendship 4.Esteem: Need for both self esteem(self respect, autonomy and achievement) and external esteem (status, recognition and attention) 5. Self-actualization the drive to become what one is capable of becoming: includes growth, achieving ones potential, self fulfillment.
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FCE 372 GROUP 11

3/25/2014

EQUITY THEORY

Outcomes (self) Inputs (self)

compared with

Outcomes (other) Inputs (other)

EQUITY THEORY

Employees evaluate their treatment relative to the treatment of others


Inputs: Employee contributions to their jobs Outputs: What employees receive in return

The perceived ratio of contribution to return determines perceived equity

MC GREGORS THEORY X AND THEORY Y Theory X


People are lazy. People lack ambition and dislike responsibility. People are selfcentered. People resist change. People are gullible and not very bright.

Theory Y
People are energetic. People are ambitious and seek responsibility. People can be selfless. People want to contribute to business growth and change. People are

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HERZBERGS MOTIVATION-HYGIENE THEORY


Based on the conclusion that people have two different categories of needs:
Hygiene

factors Motivating factors

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FCE 372 GROUP 11

3/25/2014

HERZBERGS MOTIVATION-HYGIENE THEORY

STRATEGIES FOR ENHANCING JOB SATISFACTION AND MOTIVATION


Reinforcement/behavior modification
Additional payments

Non financial motivation programs

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REINFORCEMENT /BEHAVIOR MODIFICATION


A systematic program of reinforcement to encourage desirable behavior

Punishment
When negative consequences are attached directly to undesirable behavior

Positive Reinforcement
When rewards are tied directly to performance

ADDITIONAL PAYMENTS

Monetary Incentives (Not so relevant for Government employees)

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NON FINANCIAL MOTIVATION PROGRAMS


Job Enrichment Provides employees with more variety and responsibility in their jobs Job Enlargement The expansion of a workers assignments to include additional but similar tasks Job Redesign A type of job enrichment in which work is restructured to cultivate the worker-job match

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Employee

recognition programs Employee involvement programs Employee participation Delegation of duties

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CHALLENGES IN MOTIVATING EMPLOYEES


Varied needs and expectations Employees have varying needs and expectations and what motivates one may not necessarily motivate the other. Costly In situations where motivation involves giving incentives in form of cash or awards. Managerial problems For example, flextime makes it difficult to monitor employees, and the production process as a whole.

MANAGERIAL LEADERSHIP

The process of motivating others to work to meet specific objectives

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3/25/2014

MANAGEMENT BY OBJECTIVES
COLLABORATIVE GOAL-SETTING

Collaborative Goal Setting & Planning

Communicating Organizational Goals & Plans


Meeting

Periodic Review

Evaluation

Setting Verifiable Goals & Clear Plans


Counseling Identifying Resources

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MANAGEMENT BY OBJECTIVE PROCESS

Goal setting Subordinate participation Implementation Performance appraisal and feedback

PARTICIPATIVE MANAGEMENT AND EMPOWERMENT

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FIVE FUNDAMENTAL LEADERSHIP PRACTICES

Challenge the process Inspire a shared vision Enable others to act Model the way Encourage the heart

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MANAGERIAL STYLES

Autocratic Style Democratic Style Free-rein Style Contingency Approach


The appropriate style in any situation is contingent on the unique elements of that situation

THANK YOU

Be a good motivato r

FCE 372 GROUP 11

3/25/2014

LIST OF REFERENCE
http://www.managementhelp.org/guiding/moti vate/basics.htm http://www.bized.ac.uk/educators/1619/business/hrm/activity/motivation.htm