SUMMER TRAINING PROJECT REPORT AT LG.ELECTRONICS.INDIA.PVT.LTD, GREATER NOIDA
ON
“Employee Motivation And Retention” ANALYSIS & IMPROVEMENT Under guidance of Mrs. Nidhi Kakkar Head, Culture HR, LGEIL
Faculty Guide:
Submitted by: Shivani Gupta MBA (2006-2007)
LIET College, Alwar, Rajasthan 1
LG ELECTRONICS INDIA PVT. LTD. GREAT COMPANY, GREAT PEOPLE
ACKNOWLEDGEMENT The more we observed the more we learnt, More we interacted with the people the better were our understanding of corporate liabilities and learning. It gives me an immense pleasure in submitting this report on EMPLOYEE MOTIVATION AND RETENTION , ANALYSIS AND IMPROVEMENT. Any accomplishment requires the effort of many people and this work is no different. In few words of my gratitude, I, hereby wish to take the opportunity to thank Mrs Nidhi Kakkar, Head, Culture HR, LGEIL for her continuous and excellent guidance, constant encouragement and support. I am also thankful to Mrs Karuna Taneja, LGEIL for their guidance throughout the project. This project would remain incomplete and devoid of its true luster if I don’t mention the contribution of all the respondents who featured in this research study and have been of great help directly or indirectly.
FAST INNOVATION FAST GROWTH
LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT AND TECHNOLOGY
2
LG ELECTRONICS INDIA PVT. LTD. GREAT COMPANY, GREAT PEOPLE
CERTIFICATE OF ORIGIN This is to certify that Miss Shivani Gupta , a student of Post Graduate Degree in LIET College, Alwar has worked in the LG ELECTRONICS INDIA Ltd., under the able guidance and supervision of Mrs.Nidhi Kakkar, Culture Team Head, LG Electronics Ltd. The period for which she was on training was for eight weeks starting from JUNE 1, 2007 to JULY 30, 2007. This Summer Internship report has the requisite standard for the partial fulfillment of the Post Graduate Degree in LIET.To the best of our, Knowledge no part of this report has been reproduced from any other report and the contents are based on original research.
Signature (Faculty Guide) (Student)
Signature
3
FAST INNOVATION FAST GROWTH
LAL BAHADUR SHASTRI INSTITUTE OF MANAGEMENT AND TECHNOLOGY
INDEX Page 5
1. Methodology 2. Company Profile i. History ii. LG Products iii. LG Competitors iv. Corporate Identity v. Management Principle vi. Vision 2By10 vii. Vision 2007 viii. Internal Culture ix. Financial Performance x. Challenges Faced by LG xi. Success Factors xii. Organizational Structure
6-19 7 9 10 11 12 13 14 15 16 17 18 19
3. Executive Summary i. Importance of Retention 4. Motivation i. Types of Motivation ii. Theories of Motivation
20-21
5. Initiatives Taken in LGEIL to Retain and Motivate their Employees
28-30
6. Data Analysis i. 5 Why for Stress ii. Multiple Choice Question
31-40 34 35-40
7. Conclusion
41
8. Tips for Employees to be Happy and Motivated at Work Place
42
9. Steps by other Companies For Employee Motivation & Retention
43
10.Quick List of Suggestions for Motivating employees
44-45
11.Suggestion for Retaining Employees
46-47
12.Bibliography
48
13.Annexure i. Questionnaire
49-52
22-27
4
METHODOLOGY First four weeks of the project was given in understanding the Employee Motivation & Retention system being used at LG Electronics India Ltd, Greater Noida and to understand the various procedures and complexities of it. This gave me the in-depth understanding of the system and was useful in understanding the problems in the system, based on which the questionnaire was prepared so that major problems in the system could be identified and solutions for them could be implemented. The details of the research areSAMPLE SIZE-
45 SAMPLE UNIT-
Supervisors, Executives etc TIME OF EXERCISE-
1st June 2007 – 30th July 2007 TYPE OF RESEARCH-
Exploratory research RESEARCH INSTRUMENT-
Questionnaire & Personal Interview
5
COMPANY PROFILE LG Electronics Global Overview: •
LG Electronics was established on October 1, 1958 (As a private Company) and in 1959, LGE started manufacturing radios, the first undertaking of its kind in Korea. Since that time the company achieved many firsts in the country by developing telephones, refrigerators, and black & white television sets.
•
There was no looking back for the company then, and LGE has now become a major global player in electronics & telecommunications, operating 77 subsidiaries around the world with over 72,000 employees worldwide.
•
The company has as many as 27 R & D centers and 5 design centers.
•
Its global leading products include residential air conditioners, DVD players, CDMA handsets, home theatre systems and optical storage systems.
LGE into Top 100 Global Brands The LGE brand achieved a milestone last year, when it entered the Business week list of 100 Top Global Brands. A mention into this list means something similar for brands, what Oscars mean for movies. Here, LG was positioned at 97 and its brand value was estimated at US$ 2.6 billion. The other brands with which LG is competing faired as follows: Rank 20 28 53
Brand Samsung Sony Philips
Value US $ 14.9 Billion US $ 10.5 Billion US $ 5.9 Billion
And LG was also featured in a much acclaimed book, Asia’s Star Brands, by Paul Temporal, Wiley Publishers. The important thing here is that LG is relatively a very young brand when compared with the other players above and it’s a growing brand and not a declining one like Sony or Philips.
6
HISTORY Beginning (1958-1965): The new rising star of Korean Electronics was born with a strong commitment of promoting growth of electronics-one of the essential part of public life in guidance of first chairman Hwui-Koo. On 15th November 1959 the first Korean made radio was born, but the joy was short lived due to popularity of foreign goods forcing Goldstar to pull out of market but thanks to govt. drive to send radios to village. While dramatically overcoming the initial challenges and difficulties Goldstar was able to make great strides in revenue and technological growth. In 1962 they established Oncheong-dong plant, which provided Goldstar momentum to grow.
Period of Growth (1966-1978) In 1966, five years after T.V broadcasting services was introduced to Korea, Goldstar succeeded in introducing first Black & White T.V set To produce precision machines, which require highly sophisticated and advance technology; Goldstar became the first company to establish a central R&D centre in January 1976. In 1977 Goldstar celebrated sales over 100 billion.
Period of Globalization (1979-1986) By 1980 they advanced to hold a share in overseas market and established US manufacturing subsidiary in Huntsville. By 1990 due to strong R&D Goldstar was able to develop many advanced products.
Period of First Innovation (1987-1993) Using the full-fledged globalization strategy Goldstar galloped forward reaching new heights. It bolstered its move by obtaining ISO 9001 in 1994.
Period of Second Innovation (1994 – till date) January 1, 1995 Goldstar again transformed itself for a new leap into the future; the name of the company was changed from Goldstar, which had been with it for 37 years, to LG Electronics as first step towards second innovation for 21st century. “Reach the top in quality and quantity by 2005 and become the best global company that has a brand synonymous with customer satisfaction”, was declared as a new vision.
7
LG PRODUCTS LG Electronics produces a large number of advanced products that can be seen below:
8
LG refrigerator
LG Microwave
LG Notebooks
LG Audio
LG Vaccum Cleaner
LG Mobiles
LG Plasma Display panel and Television
LG COMPETITORS
9
On the basis of overall position the other players have more or less a thin presence in the market. These are: Market �6 Market Size
Market Share
Quantity – Million Units
Product CTV
LG Quantity 2.9
Competitor
Total Growth
Penetration
Market Share
Name
Market Share
Quantity
26% (1) 29% (1) 30% (1)
Samsung
11.0
11%
27%
4.0
8%
15%
Whirlpool
18% (2) 25% (2) 16% (2)
1.5
4%
6%
0.5
32% (1)
Samsung
21% (2)
1.5
18%
3%
0.2
37% (1)
Samsung
22% (2)
0.6
20%
0.5%
MONITOR
0.9
Samsung
1%
3%
8.5
44% (1) 54% (1)
3.2
MOBILE
36% (2) 15% (2)
52.0
25%
14%
REF WM RAC MWO
1.2 0.6
Whirlpool
Nokia
`05
`06
`07
Top of Mind Recall
23
20
25
Unaided Awareness
74
78
80
LGEIL
CORPORATE IDENTITY LG’S symbol mark is the most important element of the corporate identification system. It is the representative symbol of LG throughout the World. The symbol mark creates a unified mental image of LG necessary in international 10
communication. It is called the “face of the future”. It incorporates five concepts and sentiments: “The World, the Future, the Youth, the Humanity, and the Technology”. Red Color: Reinforces an image of warmth and familiarity with other global customers. The face made from the “L” and “G” symbolizes that human beings are the central aspects of business and expresses the resolution to do their best to maintain close ties with their customers and ensure their satisfaction.
Management Principles LG's management principles state the purpose of LG's business activities, and also provide a basis for its operations. It embodies the key concepts of "Creating value for customers" and "Respecting human dignity." 11
LG believes that customers make up the very foundation of our business. That is why LG places the highest priority on serving customers, and encourages its people to create true value for customers through innovation.
LG believes that the source of its innovation lies in its people. "Respecting human dignity" implies that LG values the ingenuity and autonomy of its people. It signifies that LG strives to maximize capabilities of its people, and helps them realize their potential on the job. This principle is further reinforced through LG's everyday management practice of rewarding its people based on capabilities and performance.
LG Electronics India Ltd VISION: 12
LG Electronics vision for the 21st century is to become a true global digital leader through fast growth and fast innovation and to be known as a company who can make its worldwide customers happy through its innovative digital products and services. LG Electronics has set its mid-term and long-term goal to rank among the top 3 electronics, information and telecommunication firms in the world by 2010. They aim to utilize their core capabilities of product leadership, market leadership and people leadership and enhance their corporate culture of team work and fun workplace to achieve their mission of becoming "2 by 10", that is, double their sales volume and profit by year 2010.
THE VISION – 2BY10. During LG Electronics’ New Year ceremony for 2006, the then CEO, Mr. S.S .Kim announced that LGE will embark on a voyage to pursue “Blue Ocean” management, a new style of management which opens new markets, reduces or eliminates competition and increases management efficiency.
BLUE OCEAN STATEGY : Followed upto last year
“2BY10 is a simple slogan with some important meanings that all of us can apply in the work we do to help LGE reach the ‘Global Top 3 by 2010”.
121212 Blue Ocean Strategy Blue Ocean means creating “Untapped Market Space” & “Opportunity for higher profitable growth” by finding new ways to cut cost & grow revenue by taking away market share from the competitors 13
How to achieve 2BY10: Creating high growth & profit by focusing on 5 key areas: • Create differentiated value added features to customer • Provide differentiated value added features to customer, • Increase Work efficiency by reducing time on low value work • System which makes possible to increase work Efficiency & Create Outstanding Performance • Strong Winning Sprit & Creative mentality “We should not fear change, but rather challenge ourselves to be more creative in providing more values for customers”
LGEIL VISION 2007 Our vision is not just about monetary or financial results but also our most crucial resource: People. The top most focus for the company will be to work towards becoming to be a more inspirational working place that attracts top talent and retains it. It is our dream to make LG Electronics India an organization that nurtures its employees by providing them unparallel development opportunities and constantly adds value to their profiles. We shall strive to kindle the spirit of creativity & passion in our employees. This passion to deliver best quality products, conceptualizing consumer needs promptly and reacting quickly to maximize consumer convenience is what shall drive our growth in 2007. Central to our growth strategy will be a renewed focus on Quality. We want it to be known as an unparalleled organization which excels in transactional, environment, process & system quality. We recognize that customer delight and satisfaction are crucial factors determining the growth trajectory of a company and give it a competitive edge. It therefore is imperative that we strive to set new benchmarks in customer service, enhance brand credibility and eventually increase our customer base. Going forward, we have set ourselves a targeted growth of 15% in terms of turnover. While maintaining market leadership in home appliances and consumer electronics.
INTERNAL CULTURE As we all know requirement of trained and experienced Professional with the desired mindset is the need of the hour for any Organization to Survive and Grow in this competitive environment. 14
LG as a brand and a market leader in India attracts candidates in hordes and its Industry leadership status serves as a major factor in attracting employees. Therefore LG has the ability to hire the best in the industry. Once these candidates are hired, they undergo and exhaustive induction program. LG as an organization takes pride in the fact that they have the highest manpower productivity and the lowest manpower cost in comparison to the industry. In fact LG is benchmarked in terms of manpower costing. LG has a family ambassador program where a dedicated mentor goes to the workers house and talks to his family, their problems etc. and tries to make their situation better. All workers are served lunch along with the other senior employees so that no demarcation is made. In fact lunch is first served to workers and then to the white collar employees. On the first Monday of every month the workers meet the MD and 50 workers amongst of them get awards for outstanding performance. 'We' not 'I': LG pursue a corporate culture whereby they embrace a strong teamwork and feel pride and sense of achievement through work. No Excuses: LG foster a corporate culture whereby they suggest an alternative before saying "no" and aggressively work towards fulfilling their goal.
Growth StrategyFast Innovation And Fast Growth
Core Competency-Product
Leadership
-Market Leadership -People Leadership
Corporate CultureNo Excuses, ‘We Not ‘I’, Fun Work
Threats• •
•
Unstable World Economy Rapid Pursuit By Late Comers. Stronger Competitive Mentality By Leading Players 15
Opportunities• • •
Global Economic Recovery Strengthning Critical And Core Business Strong Desire For Innovations
LG in India: LG Electronics India Limited, LGEIL, is a wholly owned subsidiary of LG Electronics, South Korea. A picture says it all about the way LG has been performing in India. To see its tremendous, mind boggling growth let’s have a look at the company’s sales figure from the year 1997, when it entered in India, to the year when it completed 10 years in India, 2006.
Challenges Faced by LG: The challenges faced by LG when it entered the market in 1995 were: Low brand awareness about LG in India. 16
One of the last MNCs to enter India. (Samsung, Sony & Panasonic entered in 1995 & LG in 1997.) High import duty. Competition from local players and other multinational companies in the consumer electronics segment. Price sensitiveness of Indian consumers. LGEI has overcome these challenges to emerge as one of the prominent brands in the Indian consumer electronics and home appliances market by leveraging the success factors below.
Success Factors
17
LGEIL ORGANISATIONAL STRUCTURE 18
HR DEPARTMENT:
EXECUTIVE SUMMARY 19
Introduction These days, corporate across the world (Particularly in India) are facing a difficult task of “Employee Retention”. Once, there was a time when people use to join one company and then use to serve that company, till the age of retirement. Such a loyalty is not seen in this century and era. People are shifting companies at an enormously faster rate. Over the next few years while the Baby Boomer generation (ages 40-58) begins to retire, the much smaller Generation X (ages 25-34) will be filling those empty jobs . The result: there will be fewer people available in the workplace. With this problem looming in the near future, companies must rely on employee retention as the key objective to ensure long term stability and success of their businesses. Knowing why employee retention is important and how to be successful at it must be at the top of every company’s to-do-list. After all, great companies made up of great employees.
Importance of Retention Retaining its best employees, a company can improve customer satisfaction, product sales, satisfied co workers and staff, effective succession and imbedded organizational knowledge and learning. Losing a valuable member of its staff can cost a company much more than money. When employees leave, often times they will take with them:Intellectual property, Relationship, Investment (time & money) , Clients or other employees. Each year business spend billions of dollars recruiting and replacing their employees. It takes $7000-$14000 to replace a typical employee, and to replace a key manager costs the same as buying a Lexus. In spite of the staggering cost, the majority of business do not have a formal retention program.
Rating Companies on the basis of Employee Retention 20
Here’s a method to differentiate companies based on their value of retaining employees: • Poor companies (Level 0)-Don’t bother asking employees the reason for their departure. •
Good companies (Level 1)-Gather data (by conducting an exit interview) and do very little with the information received. Organizations that neglect the data from departing employees should seriously consider re-classifying themselves as level 0.
•
Better companies (Level 2)-Conduct exit interview, assess the information and make changes where appropriate.
•
Best companies (Level 3)-They first appraise themselves as an organization. Rather than assessing the blame on employees who leave, the best companies look at themselves in the mirror. First, they scrutinize themselves. Second, they consult and ask questions of their employees based on the information they collect.
Motivation 21
Motivation can be defined as a concept used to describe the factors within an individual which arouse, maintain and channel behavior towards a goal.
Motivational Myths Mcnamara discussess three motivational myths. 1. One person can motivate another. You only have to estabilish an environment that will cultivate and bring forth the personal motivational factors of each individual. 2. Money and fear are good motivators. Mcnamara says money can only help people from being less motivated & fear acts for short term. 3. I know what motivates me, so I know what motivates my employees. Everyone is different. Managers need to identify and understand what motivates each employee to reach the common organizational goals.
Types of Motivation Intrinsic and Extrinsic Motivation:Intrinsic Motivation:-When people are internally motivated to do something because it either brings them pleasure, they think it is important, or they feel that what they are learning is morally significant. Extrinsic Motivation:-When people is compelled to do something or act a certain way because of factors external to them.(Money or good grades). Telic and Paratelic Motivational Modes:In the telic state, a person is motivated primarily by a particular goal or objective-such as earning payment for work. In paratelic mode, a person is motivated primarily by the activity itself (intrinsic). Direct & Indirect Motivation:In direct motivation, the action satisfies the need. Eg. Job satisfaction & social environment In indirect motivation the action satisfies an intermediate goal, which can in turn lead to the satisfaction of a need. Eg. Money Negative and Positive Motivation:Negative motivation involves undertaking tasks because there will be undesirable outcomes, eg. falling a subject, if tasks are not completed. Positive motivation is a response which includes enjoyment and optimism about the tasks that you are involved in.
Theories of Motivation 22
Theories are ways that we try to explain and understand complex and abstract issues and ideas. Motivation is fairly difficult area and there are a number of theories which have developed to try to explain why people behave in the ways that they do and try to predict or guess what people actually will do, based on these theories.
Maslow’s Theory Human beings have wants and desires which influence their behavior; only unsatisfied needs can influence behavior, satisfied needs cannot. Needs are arranged in order of importance, from the basic to the complex. The person advances to the next level of needs only after the lower level need is at least minimally satisfied. The needs, listed from basic (lowest, earliest) to most complex (highest, latest) are:Physiological Safety and Security Social Self esteem Self actualization
Herzberg’s two factor Theory Herzberg two factor theory, concludes that certain factors in the workplace result in job satisfaction, while others do not, but if absent lead to dissatisfaction. He distinguished between:Motivators; (eg challenging work, recognition, responsibility) which give positive satisfaction. Hygiene factors; (eg status, job security, salary and fringe benefits which do not motivate if present, but if absent will result in demotivation.
Alderfer’s ERG Theory It leads to (existence, relatedness, and growth). Physiological and safety, the lower order needs, are placed in the existence, love and self esteem needs in the relatedness. The growth contained the self actualization and self esteem needs.
Cognitive Dissonance This occurs when an individual experiences some degrees of mental discomfort resulting from an incompatibility between two cognition .
Self Determination Theory 23
It focuses on the importance of intrinsic motivation in driving human behavior. It require active encouragement from the environment.
McClelland’s achievement motivation theory It envisages that a person has need for three things but people differ in degree in which the various needs influences their behavior: Need for Achievement Need for power Need for affiliation
Goal Setting Theory It states that individuals sometimes have a drive to reach a clearly defined end state.This end state is a reward in itself. It is affected by three features: proximity, difficulty and specificity.
Human Relation Model Mayo found that social contacts a worker has at the workplace are very important and that boredom and repetitiveness of tasks lead to reduced motivation. He believed that workers could be motivated by acknowledging their social needs and making them feel important. He named the model the Hawthorne effect. The problem with his model is undue reliance on social contacts at work situation for motivating employees. McLaughlin suggests that there is an equation which gives a good model of the basic requirements and how they relate to each other to achieve the best staff performance. Performance = Ability * Effort * Organizational Support
24
How do you find out what an employees is motivated by? Today 70% of your employees are less motivated while 50% only put enough effort into their work to keep their job. Many managers are not sure of the technique to use to motivate their staff. The best way to find what motivates your staff is to ask them 25
directly. This may be done informally or during performance evaluations. Find out what he/she wants from the organization and what makes them happy. A happy employee will be more productive than an unhappy one. Another way to find what motivate your staff is to bring in an outside consulting agency. A consulting agency would be more objective and it will allow for honesty. The evaluation can consist of personality assessments and surveys. The results are useful to management when deciding what motivation method will create results.
Why do we stay in some companies for years and years? - Inspiring
management - Learning organization - Great working place/people - Money? does it matter after all? It is actually very simple...the government pays miserably but nobody leaves. It is the same in the UK, US, Germany or France. The employees in Indian Government may not work, but those in the other countries do. The trick is to provide job security to employees and they will stay with you for generations. Some companies have started implementing employment contract bonds to arrest attrition, but that also has not seemed to help curb the attrition rates. The voice of the employee is as critical as the voice of the customer. Corporations are efficient and effective in 3 out of the 4 R s, Recruiting, Recognizing, Rewarding, but NOT in Retaining. Why People Leave The work can be monotonous and opportunities for career growth minimal. Survey have listed Night Shifts Money Inability to handle various types of stress Monotonous work Company Policies Lack of career growth Problem with those in senior position
Finding the Cause for Attrition If possible, have exit interview to know the reasons for resignation. If a key employee resigns, it should be taken up on a priority basis and the senior 26
management should meet the employees to discuss his reason for leaving and evaluate whether his issues bear merit and whether they can be resolved.
Points taken into Consideration At the Time of Recruitment Select the right people through competency screening Use psychometric tests to get people who work at night and handle the monotony. Offer an attractive, competitive, benefits package. Make clear of performance enhanced incentives and other benefits. Keep these promises later.
Following Initiatives Are Already Being Taken in LGEIL to Retain and Motivate their Employees 27
Emotional Bonding o Family Ambassador program which helps • To Build Strong emotional bonding with employee • Builds Openness and trust Between Mgmt and workers o Guardianship Program is a medium for prompt response of queries by workmen • Seek Employee concern faster • Develops Emotional Involvement • Improves employee and employer relationship • Winning Confidence of employees • Keeps the management updated of employee concerns o Mentor –Mantee Program helps the New Joinee to adapt the Culture at ease • Helps Smooth Transition of new systems • Cultivate the sense of belongingness in employee • It’s a good activity for coaching and counselling the new employee Employee Redrassal o Help Desk Activity is an activity for solution within 24 Hours • It’s a Counter to resolve the queries of the workmen within 24 Hrs. • Fastest Channel between Management & the workmen • Faster Decision leads to employee Satisfaction • Prompt Response of Queries of various nature. o Pizza meeting is a forum to create openness between Superior and Subordinate • On the Spot solution to issues/ Suggestions • Creates openness between Management and employees • Increase work efficiency • Improves relationship between Management and employees JW5 Activity(Joyful Working) Creating Joyful working culture , Increase Employee commitment o Festival Celebration o Birthday Celebration o Best Employee Coupon o Standing Meeting Awards o Change Agent Activity • Building of Creative Mind, Winning Attitude & Outstanding Performance o Informal Club( Meditation,Community,Musical,Adventure) • Integrated people management system to support their Creativity and motivate employees in a social manner 28
o On the Job Training(OJT) o Welcome Card for New Joinee • Builds employee morale on the very first day o Six month completion ceremony Leadership Development Program o 360 degree Feedback Mechanism • Challenge the team leaders performance o Employee satisfaction survey o Succession planning • Building second line managers for crucial positions o Leadership Counseling o Melt-In Activity helps to seek employee concerns and resolve them faster • Better relationship between boss & sub. • Better Team Work. • Fast Resolution of Issues • Reduce Attrition • Family Involvement Q Culture :- Value Creation thru’ Enhancing Company Wide Quality Culture o Environmental Quality • Think Quality, Build Quality, Spread Quality o Transactional Quality • Quality of communication • Relationship Quality • Fair and Transparent dealing o Process Quality • Q-college, Q-System, Q-innovation To reduce stress by Time Analysis(ERRC):-Eliminate, Reduce, Raise, Create Use of GHRS instead of HRMS system, which is a Korean system. Treasure Hunting To reduce Non Value added activities o Smart Working
Open Communication o Feel Free Session:-Where people are free to discuss their problems 29
o Fortnight Tea Meeting o Pizza Lunch with MD o All brainstorm sessions are open for everyone - even the pragmatic coders - as we respect the fact that everyone has a different opinion and approach. Encourage people to take lunches, breaks and not to work late.
30
Survey done on employee Motivation and Retention at LGEIL from 1st june to 30th july with a sample size of 45 DATA ANALYSIS NO. QUESTION 1 Are the employees & company goals aligned?
ANALYSIS 73% of employees agree that there goals are aligned with company's
Action Taken
5 why analysis done
2
Is your work causing stress in your personal life?
55% of the employees are suffering from stress in their personal life due to their work
3
Do you feel valued by your company? Are you trying to identify New career Option?
91% of the employees feel valued by the company 55% of the employees are trying to identify new career option
Does honest & open communication increase your motivation? Does leadership create a difference in your motivation level? Do you feel 5 day working will increase your performance? Do you think your boss also needs to be motivated for you to work better?
95% of the employees feel honest & open communication will increase their motivation Leadership will increase the motivation level of 86% of employees 89% of the employees feel 5 day working will increase their performance Acc. To 77% of employees their Boss also needs to be motivated for their good performance
9
Your target are clearly communicated to you?
84% employees says they have their targets clearly defined
10
Your boss continously encourages and motivates you?
Boss of 82% of employees cont. encourages & motivates them 31
4
5
6 7 8
Job rotation, Alignment of person capability with his job profile
Planning for giving 2 Saturday’s off. Morning meetings by TL.
Awards given for best performance in deptt.
11
Does your TL focus on your strength?
84% employees says their TL focus on their strength
12
Do you have any career Mapping in your organisation?
52% of employees said they Development Center don’t have any career is started. mapping in the organisation
13
Is the company's internal image consistent with external?
52% employees comment that company's internal image is not consistent with external
Open communication forum is established Eg-Feel free session Ask the CEO
14
Is performance appraisal system of your organisation good enough to motivate you?
50% employees feel the performance appraisal system is good.
HOD to discuss with team members why they are given the proposed bonus.
15
Do you get enough recognition & rewards for the work you perform?
57% employees feel they get enough recognition & rewards for their work
16
Are the employee's 66% employees feel that the scheme good enough for employee's scheme are you to work better? good enough for them to give their best.
Question 1,3,5,6,9,11,15,16 are not a key point for employee motivation and retention as concluded from the survey,because employees are satisfied with the same so no counter measure is taken for these.
32
Graph To Depict Above Data: Fig 1
These factors have a consensus level of almost 80%
Red-Yes Green-No
33
5 Why For Why Work Is Causing Stress In Personal Life Of People
Big Y
Long Working Hrs
STRESS
Issue Analysis
Little Y
Work Pressure Non Value Added Activity Boss Not Supportive
Improvement Ideas
High Targets Work given at last Work for day prepalnned Moment Boss 5 day working Requirement No Time Training to meet targets mgt Poor Planning of Work Process used not good Old traditionally Defined Method Thinks himself superior No Emotional Bonding
34
Training for time mgt Adopt Modern methods Create “We Not I”
Multiple Choice Question
Q-1.
Do you know the vision & mission of your company?
% Employee
Not known
9
b.
Partially known
18
c.
Known
73
% of Employees
a.
Analysis 73% of the employees know the vision & mission of company but to 18% it is partially known.
80 70 60 50 40 30 20 10 0 Not known
Partially known
35
Known
Q- Talent can be retained 2. mainly
No. of Employees
a.
Through better selection
8
b.
Through objective assessment
30
c.
Through monitoring them
14
No of Employees
35
10 5
68% employees feel talent can be retained Through objective assessment & 32% feel through monitoring them
30
30 25 20 15
Analysis
14 8
0 Through better selection
Through objective assessment
36
Through monitoring them
Q-3.
Employee can mainly be retained by
No. of Employees
a.
High salaries
16
b.
Talent & Skill utilization
25
c.
Nurturing Talent
20
d.
Employee & family well being
10
e.
Any other
5
No of Employees
30
Employees can be retained by having their talent &skill utilized, nurturing talent & offering them high salaries
25
25 20
Analysis
20 16
15
10
10
5
5 0 High salaries
Talent & Nurturing Employee Any other Skill Talent & family utilisation well being
37
What really motivates you?
No. of Employees
A challenging job
29
b.
Making money
13
c.
Empowernment
15
d.
Rewards-Extrinsic/intrinsic
13
e.
Company policies & culture
10
f.
Hygiene factors(working conditions)
11
35 30 25 20 15 10 5 0
A challenging job,empowerment& making money motivates 66%,34% & 30% of employees respectively
29
RewardsExtrinsic/intrinsic
Empowernment
Making money
13
38
10
11
Hygiene factors(working conditions)
15
13
A challenging job
No of Employees
a.
Analysis
Company policies & culture
Q-4.
If yes, how can boss be motivated?
No. of Employees
When you offer your help
4
b.
Show commitment
22
c.
Offer compliment
7
d.
Any other
3
25
50% employees feel their boss gets motivated when they show commitment & 16% says when they offer compliments
22
20 15 10 5
7
4
3 Offer compliment
Show commitment
0 When you offer your help
No of Employees
a.
Analysis
39
Any other
Q-5.
Score the extent you enjoy your work.
No. of Employees
1
Least Enjoyable
2
2
Partially Enjoyable
2
3
Satisfactory
16
4
Enjoyable
16
5
Outstandingly enjoyable
8
No of Employees
18 16 14 12 10 8 6 4 2 0
Analysis
36% employees enjoy their work only up to satisfactory level.
16
16
8
Conclusion 40
Outstandingly enjoyable
Satisfactory
2 Partially Enjoyable
Least Enjoyable
2
Enjoyable
Q-6.
These things and many more (like the level-field management) mean that everyone feels 'included' and loves the agency. They all know that they can - and indeed are - making a difference to the way the agency works and together we build our own great future. If you can create an environment in which people feel challenged and stimulated, they enjoy what they are doing and produce better work. Work seems less like work. Add in a great team and people feel like they are getting paid to turn up and socialize whilst doing something they are passionate about with people they like spending time with. At that stage money is less important. An added bonus as an employer is the quality level of the work as people put everything in to what they do.
Recommendations 41
Tips for Employees to be Happy and Motivated at Work Place Avoid negative people and gossip- Find coworkers you like and enjoy spend your time with them. Do something you Love every single day-You may or may not love your current job but if you do something you love every single day, your current job won’t seem so bad. Take charge of your own Professional and Personal Development-Ask for specific and meaningful help from your boss. Take Responsibility for knowing what is Happening at work-People complain that they don’t receive enough communication and information about what is happening with their company, their departments projects or their coworkers. Passive vessels, they wait for the boss to fill them up with knowledge. Because the boss is busy doing her job and she does’t know what you don’t know. Seek out the information you need to work effectively. Assertively request a weekly meeting with your boss and ask questions to learn. Ask for Feedback Frequently -If you feel positively about your performance, you just want to hear him acknowledge you. If you’re not positive about your work, think about improving and making a sincere contribution. Then, ask your boss for feedback. Make Only Commitments you can Keep-One of the most serious causes of work stress and unhappiness is feeling to keep commitments. Create a system of organization and planning that enables you to assess your work, think about improving and making a sincere contribution. Then ask your boss for feedback. Make only commitments you can keep-One of the most serious causes of work stress and unhappiness is falling to keep commitments. Create a system of organization and planning that enables you to assess your ability to complete a requested commitment. If your workload is exceeding your available time and energy, make a comprehensive plan to ask the boss for help and resources. Practice Professional Courage-You’ve never been trained to participate in meaningful conflict, so you think of conflict as scary, harmful, and hurtful. Conflict can be all three; done well, conflict can also help you accomplish your work mission and your personal vision. Conflict can help you serve customer and create successful products.
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What other Companies are Doing For Employee Motivation & Retention Provide Flexi-Time with Flexible working to Employees(Work from Home) o This will provide employees to work when and where it suits them, by using mobile and wireless technology to work at multiple times and locations. o Huge cost of rental space is saved. Servicing Employees o Concierge Service - For movie Tickets, Utility Bills, Rail Tickets, Credit Card . Help desk operates during Lunch hour. Care for Family o Paternity and maternity leave benefits to employees - Special 2 Months Paid leave in case of child adoption. Fridays @ 5 o Every Friday talks and discussions covering a gamut of issues ranging from parenting to stress management are held on company premises. Hobbies are encouraged One popular session on choose your life partner was held. Choose Your boss o The technology firm has empowered employees to choose their boss reflecting the company non-hierarchical structure. •
The process helps the team to find the right boss - the team interviews the managerial candidate to understand his background, cultural fit and the kind of support he will extend towards the team and his openness to new ideas.
Musical Mondays o Every monday is a musical show - Hidden talent that often goes unnoticed is reflected in these programmes Pursue your Pet Ideas for one day in a week o For Nurturing passion employee are given right to take time out from their regular activity to pursue their pet idea. o They can also contribute time to other company projects. Imbibe work culture of research and innovation - Surf on net Q & A Session 43
o Where staff make presentations about things they think are important to them (and then we discuss).
Quick List of Suggestions for Motivating employees Recognize individual differences Match people to jobs Individualize rewards Link rewards to performance Check the system for equity Don't ignore money Involve employees in decision- making process Keep employees informed Be aware of the morale level of your employees Maintain an open-door policy Develop a caring attitude Be sure to listen Always treat your employees with respect Ask for suggestions Give constructive criticism Recognize your employees Listen to and deal effectively with employee complaints. A direct link between the goals of the employee and those of the organization - When meeting with the employee to discuss his or her goals and objectives, it is helpful to share with them the importance of their contribution to the organization, and to guide them to choose goals that align nicely with those of the company.
Walk Your Talk - If you expect your employees to arrive early, then you arrive early. If you expect your employees to keep their promises, you keep your promises. If you want your employees to keep to high standards, you keep to high standards.
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Help Employees Succeed - It is your job to understand your employee’s
strengths and weaknesses so that you can put them in the best position to succeed.
Design tasks and environments to be consistent with the employee's needs. What may satisfy one person may not satisfy another. The observant manager is aware of the more basic needs of the employee such as affiliation, approval and achievement.
Establish a climate of trust and open communication.- Productivity is
highest in organizations that encourage openness and trust. Trust and openness are created by the way we communicate.
Criticize behavior, not people.- A person can do a task poorly and still be a valuable employee. Always remember to respect the individual. Too many people are inappropriately labeled "dumb," "incompetent" or "unqualified." Be sure to address behavior not attitude. Managers often have difficulty distinguishing between attitude and behavior.
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Suggestions For Retaining Employees Arrest Poaching at the senior level o Special employee retention and loyalty packages that binds employee emotionally or monetarily Constantly Training for Career Growth o Gurukul Program where each staff even at the lowest level has to undergo certain mandated hours of Training Global Racing Star Event o 3 Days Residential Program for employee Childern13-18 Years are groomed in presentation, behavioral and attitudinal skills Global Rotation Plan o Every 18-24 Months employee can actively look for a job change Various technologies, Geographies and verticals o Challenges at work-place and growth opportunities Sleepy Hour during Work o 45 Minutes post Lunch Nap - for refreshing ( Sleep anywhere bring mattress) Using Humor to Retain Employees In today’s uncertain work environment, humor isn’t an option, it’s necessary. When employees clown around they’re not wasting valuable time, they’re making use of one of the few tools available to increase and maintain their group spirit. Laughter may not change reality, but it can certainly help people survive it. Provide Feedback That Has an Impact Work/Life Balance: o Make work/life balance a recognized organizational value. o Management should try to serve as role models for work/life balance. 46
o Reduce organizational inefficiencies that drain employee time & energy. o Provide employees with scheduling flexibility. Pay Satisfaction & its link with Performance o Establish and communicate the organization’s pay philosophy. o Conduct salary surveys to make certain the pay levels are appropriate. o Carefully script the messages supervisors transmit to employees about pay. o Make sure performance reviews are conducted.
o Use other types of rewards for good performers as well, such as recognition, opportunities for training, and interesting work assignments. Adequate Staffing Levels o Conduct staffing audits to make certain staffing levels match the workload. o When appropriate, quickly replace departing employees. o Develop innovative recruiting methods. Increasing Employee Retention Through Employee Engagement The primary behaviors of engaged employees are speaking positively about the organization to coworkers, potential employees, and customers, having a strong desire to be a member of the organization, and exerting extra effort to contribute to the organization’s success. The employee engagement process does require a two-way relationship between employer and employee. Engaged employees also normally perform better and are more motivated. Invest as much as possible in the growth and development of your people . Nothing gives an individual a greater sense of satisfaction than growth. If employer invests in growth of employee, they become more capable of earning more money and sense of loyalty increases b/c they associate the growth with the company that facilitated it.
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BIBLIOGRAPHY HRD Newsletter (New Era of HR) Indian Management WWW.Motivate-Employee.com WWW.Employeebenefits.co.uk WWW.123Oye.com WWW.Motivating and Retaining Employees.com WWW.High Retention.com WWW.HumanResources .about.com
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ANNEXURE
EMPLOYEE MOTIVATION AND RETENTION “ Analysis and Improvement ”
OBJECTIVE: To analyze the current status of Employee Motivation and Retention SYSTEM at LGEIL, Greater Noida and to determine the areas of improvements in the system.
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INSTRUCTIONS: • Kindly answer all the questions mentioned in this questionnaire. • Feel free to give your suggestions wherever required. Your data will be kept CONFIDENTIAL.
QUESTIONNAIRE Department Designation Age
: : :
Individual Related Qs. 1. Do you know the Vision & Mission of your company. a) Not known b) Partially known
c) Known
2. Score the extent you Enjoy your work. (eg 1,2,3 upto 5) 3. Are the employees & company goals aligned? a) Yes b) No 4. Is your work causing stress in your personal life? a) Yes b) No 5. Do you feel valued by your company? a) Yes
b) No
7. Are you trying to identify New career option. a) Yes b) No 8. Does honest & open communication increase your motivation? a) Yes b) No 9. Does leadership create a difference in your motivation level? a) Yes b) No 10. Do you feel 6 day week/long working hrs decrease your performance? a) Yes b) No 50
11. Talent can be retained mainly a) Through better selection b) Through objective assessment (training & development) c) Through monitoring them
12. Employee can mainly be retained by a) High Salaries b) Talent & Skill utilization c) Nurturing talent d) Employee & Family well being e) Any other 13. What really motivates you? (tick 1 or more) a) A challenging job (by job rotation) b) Making money c) Empowerment d) Rewards-extrinsic/intrinsic e) Company policies & culture f) Hygiene factors (working conditions) 14. LG is doing lot to motivate & retain their employees, what else can be done?
Boss Related Qs. 1. Do you think your boss also needs to be motivated, for u to work better? a) Yes b) No 2. If yes how can he be motivated? a) When u offer your help b) Show commitment c) Offer compliment d) Any other 3.Your target are clearly communicated to you ? a) Yes b) No 51
4.Your boss continuously encourages and motivates you? a) Yes b) No 5. Does your TL focus on your strength?
Organization Related Qs. 1. Do you have any carrier Mapping in your organization? a) Yes b) No 2. Is the company’s internal image consistent with external. a) Yes b) No 3. Is the Performance Appraisal system of your organization is good enough to motivate you? a) Yes b) No 4. Do you get enough recognition & rewards for the work u perform? a) Yes b) No 5. Are the employees scheme good enough for u to work better? (Car scheme, Schloarship scheme, Loan scheme-Soft loan, Marriage benefit) a) Yes b) No
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6. What else can be included in this scheme?
AND FINALLY…………… Some lines used in LG to motivate its HUMAN RESOURCE-
- GREAT CHALLENGES, GREAT PERFORMANCE -
GREAT COMPANY, GREAT PEOPLE
- WE ARE THE BEST - FAST INNOVATION, FAST GROWTH 53
- CUSTOMER SATISFACTION IS OUR AIM - CHALLENGING AND JOYFUL LG - LEAD THE MARKET, CREATE THE MARKET - MY JOB, MY LG, MY FAMILY
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