INTRODUCTION
1
1.1 COMPANY PROFILE OF ITC
ITC is one of India's foremost private sector companies with a market capitalization of nearly US $ 14 billion and a turnover of over US $ 5 billion. ITC is rated among the World's Best Big Companies, Asia's 'Fab 50' and the World's Most Reputable Companies by Forbes magazine, among India's Most Respected Companies by Business World and among India's Most Valuable Companies by Business Today. ITC ranks among India's `10 Most Valuable (Company) Brands', in a study conducted by Brand Finance and published by the Economic Times. ITC also ranks among Asia's 50 best performing companies compiled by Business Week.
ITC has a diversified presence in Cigarettes, Hotels, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, Information Technology, Branded Apparel, Personal Care, Stationery, Safety Matches and other FMCG products. While ITC is an outstanding market leader in its traditional businesses of Cigarettes, Hotels, Paperboards, Packaging and AgriExports, it is rapidly gaining market share even in its nascent businesses of Packaged Foods & Confectionery, Branded Apparel, Personal Care and Stationery.
As one of India's most valuable and respected corporations, ITC is widely perceived to be dedicatedly nation-oriented. Chairman Y C Deveshwar calls this source of inspiration "a commitment beyond the market". In his own words: "ITC believes that its aspiration to create enduring value for the nation provides the motive force to sustain growing shareholder value. ITC practices this philosophy by not only driving each of its businesses towards international competitiveness but by also consciously contributing to enhancing the competitiveness of the larger value chain of which it is a part." ITC's diversified status originates from its corporate strategy aimed at creating multiple drivers of growth anchored on its time-tested core competencies: unmatched distribution reach, superior brandbuilding capabilities, effective supply chain management and acknowledged service skills in 2
hoteliering. Over time, the strategic forays into new businesses are expected to garner a significant share of these emerging high-growth markets in India.
ITC's Agri-Business is one of India's largest exporters of agricultural products. ITC is one of the country's biggest foreign exchange earners (US $ 3.2 billion in the last decade). The Company's 'eChoupal' initiative is enabling Indian agriculture significantly enhance its competitiveness by empowering Indian farmers through the power of the Internet. This transformational strategy, which has already become the subject matter of a case study at Harvard Business School, is expected to progressively create for ITC a huge rural distribution infrastructure, significantly enhancing the Company's marketing reach.
ITC's wholly owned Information Technology subsidiary, ITC Infotech India Limited, is aggressively pursuing emerging opportunities in providing end-to-end IT solutions, including e-enabled services and business process outsourcing. ITC's production facilities and hotels have won numerous national and international awards for quality, productivity, safety and environment management systems. ITC was the first company in India to voluntarily seek a corporate governance rating.
ITC employs over 25,000 people at more than 60 locations across India. The Company continuously endeavors to enhance its wealth generating capabilities in a globalizing environment to consistently reward more than 3, 60,000 shareholders, fulfill the aspirations of its stakeholders and meet societal expectations. This over-arching vision of the company is expressively captured in its corporate positioning statement: "Enduring Value, for the nation, for the Shareholder."
3
FORMATION AND EVOLUTION
ITC was incorporated on August 24, 1910 under the name of 'Imperial Tobacco Company of India Limited'. Its beginnings were humble. A leased office on Radha Bazar Lane, Kolkata, was the centre of the Company's existence. The Company celebrated its 16th birthday on August 24, 1926, by purchasing the plot of land situated at 37, Chowringhee, (now renamed J.L. Nehru Road) Kolkata, for the sum of Rs. 310,000. This decision of the Company was historic in more ways than one. It was to mark the beginning of a long and eventful journey into India's future. The Company's headquarter building, 'Virginia House', which came up on that plot of land two years later, would go on to become one of Kolkata's most venerated landmarks. The Company's ownership progressively Indianised, and the name of the Company was changed to I.T.C. Limited in 1974.
In recognition of the Company's multi-business portfolio encompassing a wide range of businesses Cigarettes & Tobacco, Hotels, Information Technology, Packaging, Paperboards & Specialty Papers, Agri-Exports, Foods, Lifestyle Retailing and Greeting Gifting & Stationery - the full stops in the Company's name were removed effective September 18, 2001. The Company now stands rechristened 'ITC Limited'.
Though the first six decades of the Company's existence were primarily devoted to the growth and consolidation of the Cigarettes and Leaf Tobacco businesses, the Seventies witnessed the beginnings of a corporate transformation that would usher in momentous changes in the life of the Company.
ITC's Packaging & Printing Business was set up in 1925 as a strategic backward integration for ITC's Cigarettes business. It is today India's most sophisticated packaging house.
4
In 1975 the Company launched its Hotels business with the acquisition of a hotel in Chennai which was rechristened 'ITC-Welcomgroup Hotel Chola'. The objective of ITC's entry into the hotels business was rooted in the concept of creating value for the nation. ITC chose the hotels business for its potential to earn high levels of foreign exchange, create tourism infrastructure and generate large scale direct and indirect employment. Since then ITC's Hotels business has grown to occupy a position of leadership, with over 100 owned and managed properties spread across India.
In 1979, ITC entered the Paperboards business by promoting ITC Bhadrachalam Paperboards Limited, which today has become the market leader in India. Bhadrachalam Paperboards amalgamated with the Company effective March 13, 2002 and became a Division of the Company, Bhadrachalam Paperboards Division. In November 2002, this division merged with the Company's Tribeni Tissues Division to form the Paperboards & Specialty Papers Division. ITC's paperboards' technology, productivity, quality and manufacturing processes are comparable to the best in the world. It has also made an immense contribution to the development of Sarapaka, an economically backward area in the state of Andhra Pradesh. It is directly involved in education, environmental protection and community development. In 2004, ITC acquired the paperboard manufacturing facility of BILT Industrial Packaging Co. Ltd (BIPCO), near Coimbatore, Tamil Nadu. The Kovai Unit allows ITC to improve customer service with reduced lead time and a wider product range.
In 1985, ITC set up Surya Tobacco Co. in Nepal as an Indo-Nepal and British joint venture. Since inception, its shares have been held by ITC, British American Tobacco and various independent shareholders in Nepal. In August 2002, Surya Tobacco became a subsidiary of ITC Limited and its name was changed to Surya Nepal Private Limited (Surya Nepal).
In 1990, ITC acquired Tribeni Tissues Limited, a Specialty paper manufacturing company and a major supplier of tissue paper to the cigarette industry. The merged entity was named the Tribeni Tissues Division (TTD). To harness strategic and operational synergies, TTD was merged with the 5
Bhadrachalam Paperboards Division to form the Paperboards & Specialty Papers Division in November 2002.
Also in 1990, leveraging its agri-sourcing competency, ITC set up the Agri Business Division for export of agri-commodities. The Division is today one of India's largest exporters. ITC's unique and now widely acknowledged e-Choupal initiative began in 2000 with soya farmers in Madhya Pradesh. Now it extends to 10 states covering over 4 million farmers. ITC's first rural mall, christened 'Choupal Saagar' was inaugurated in August 2004 at Sehore. On the rural retail front, 24 'Choupal Saagars' are now operational in the 3 states of Madhya Pradesh, Maharashtra and Uttar Pradesh.
In 2000, ITC launched a line of high quality greeting cards under the brand name 'Expressions'. In 2002, the product range was enlarged with the introduction of Gift wrappers, Autograph books and Slam books. In the same year, ITC also launched 'Expressions Matrubhasha', a vernacular range of greeting cards in eight languages and 'Expressions Paperkraft', a range of premium stationery products. In 2003, the company rolled out 'Classmate', a range of notebooks in the school stationery segment.
ITC also entered the Lifestyle Retailing business with the Wills Sport range of international quality relaxed wear for men and women in 2000. The Wills Lifestyle chain of exclusive stores later expanded its range to include Wills Classic formal wear (2002) and Wills Clublife evening wear (2003). ITC also initiated a foray into the popular segment with its men's wear brand, John Players, in 2002. In 2006, Wills Lifestyle became title partner of the country's most premier fashion event Wills Lifestyle India Fashion Week - that has gained recognition from buyers and retailers as the single largest B-2-B platform for the Fashion Design industry. To mark the occasion, ITC launched a special 'Celebration Series', taking the event forward to consumers. In 2007, the Company introduced 'Miss Players'- a fashion brand in the popular segment for the young woman.
6
In 2000, ITC spun off its information technology business into a wholly owned subsidiary, ITC Infotech India Limited, to more aggressively pursue emerging opportunities in this area. Today ITC Infotech is one of India’s fastest growing global IT and IT-enabled services companies and has established itself as a key player in offshore outsourcing, providing outsourced IT solutions and services to leading global customers across key focus verticals - Manufacturing, BFSI (Banking, Financial Services & Insurance), CPG&R (Consumer Packaged Goods & Retail), THT (Travel, Hospitality and Transportation) and Media & Entertainment.
ITC's foray into the Foods business is an outstanding example of successfully blending multiple internal competencies to create a new driver of business growth. It began in August 2001 with the introduction of 'Kitchens of India' ready-to-eat Indian gourmet dishes. In 2002, ITC entered the confectionery and staples segments with the launch of the brands mint-o and Candyman confectionery and Aashirvaadatta (wheat flour). 2003 witnessed the introduction of Sunfeast as the Company entered the biscuits segment. ITC's entered the fast growing branded snacks category with Bingo! in 2007. In just seven years, the Foods business has grown to a significant size with over 200 differentiated products under six distinctive brands, with an enviable distribution reach, a rapidly growing market share and a solid market standing.
In 2002, ITC's philosophy of contributing to enhancing the competitiveness of the entire value chain found yet another expression in the Safety Matches initiative. ITC now markets popular safety matches brands like iKno, Mangaldeep, Aim, Aim Mega and Aim Metro.
ITC's foray into the marketing of Agarbattis (incense sticks) in 2003 marked the manifestation of its partnership with the cottage sector. ITC's popular agarbattis brands include Spriha and Mangaldeep across a range of fragrances like Rose, Jasmine, Bouquet, Sandalwood, Madhur, Sambrani and Nagchampa.
7
ITC introduced Essenza Di Wills, an exclusive range of fine fragrances and bath & body care products for men and women in July 2005. Inizio, the signature range under Essenza Di Wills provides a comprehensive grooming regimen with distinct lines for men (Inizio Homme) and women (Inizio Femme). Continuing with its tradition of bringing world class products to Indian consumers the Company launched 'Fiama Di Wills', a premium range of Shampoos, Shower Gels and Soaps in September, October and December 2007 respectively. The Company also launched the 'Superia' range of Soaps and Shampoos in the mass-market segment at select markets in October 2007 and Vivel De Wills & Vivel range of soaps in February and Vivel range of shampoos in June 2008.
8
HISTORY AND DEVELOPMENT OF COMPANY AND INDUSTRY ITC constantly endeavours to benchmark its products, services and processes to global standards. The Company's pursuit of excellence has earned it national and international honours. ITC is one of the eight Indian companies to figure in Forbes A-List for 2004, featuring 400 of "the world's best big companies". Forbes has also named ITC among Asia's'Fab 50' and the World's Most Reputable Companies. ITC has several firsts to its credit: ITC is the first from India and among the first 10 companies in the world to publish its Sustainability Report in compliance (at the highest A+ level) with the latest G3 guidelines of the Netherlands-based Global Reporting Initiative (GRI), a UN-backed, multistakeholder international initiative to develop and disseminate globally applicable Sustainability Reporting Guidelines. ITC is the first Indian company and the second in the world to win the prestigious Development Gateway Award. It won the $100,000 Award for the year 2005 for its trailblazing ITC e-Choupal initiative which has achieved the scale of a movement in rural India. The Development Gateway Award recognizes ITC's e-Choupal as the most exemplary contribution in the field of Information and Communication Technologies (ICT) for development during the last 10 years. ITC e-Choupal won the Award for the importance of its contribution to development priorities like poverty reduction, its scale and replicability, sustainability and transparency. ITC has won the inaugural 'World Business Award', the worldwide business award recognising companies who have made significant efforts to create sustainable livelihood opportunities and enduring wealth in developing countries. The award has been instituted jointly by the United Nations Development Programme (UNDP), International Chamber of Commerce (ICC) and the HRH Prince of Wales International Business Leaders Forum (IBLF).
9
ITC is the first Corporate to receive the Annual FICCI Outstanding Vision Corporate Triple Impact Award in 2007 for its invaluable contribution to the triple bottom line benchmarks of building economic, social and natural capital for the nation. ITC has won the Golden Peacock Awards for 'Corporate Social Responsibility (Asia)' in 2007, the Award for ‘CSR in Emerging Economies 2005’ and ‘Excellence in Corporate Governance' in the same year. These Awards have been instituted by the Institute of Directors, New Delhi, in association with the World Council for Corporate Governance and Centre for Corporate Governance. The Company's Green Leaf Threshing plants at Chirala and Anaparti in Andhra Pradesh are the first units of their kind in the world to get ISO 14001 environment management systems certification. ITC's cigarette factory in Kolkata is the first such unit in India to get ISO 9000 quality certification and the first among cigarette factories in the world to be awarded the ISO 14001 certification. ITC Maurya in New Delhi is the first hotel in India to get the coveted ISO 14001 Environment Management Systems certification. ITC Infotech finds pride of place among a select group of SEI CMM Level 5 companies in the world. ITC's R&D Centre at Peenya, Bengaluru has the distinction of being the first independent R&D centre in India to get ISO 9001 accreditation and certified with ISO 14001 for Environment Management Systems by DNV. The R&D Centre is also certified for the standard ISO/IEC17025:2005, by National Accreditation Board for Testing and Calibration Laboratories (NABL). This certification is awarded for "General requirement for the competence of Testing & Callibration Laboratories".
10
ITC Chairman Y C Deveshwar has received several honours over the years. Notable among them are:
Year
Award
2010
Crystal Award to ‘Bukhara’ for best Indian Restaurant
2008
Hewit Best Employer Award
2007
SAM/SPG Sustainability Leadership Award conferred at the International Sustainability Leadership Symposium, Zurich.
2006
2006 2005 2001
1998 1996 1994
Business Person of the Year from UK Trade & Investment, the UK Government organization that supports overseas businesses in that country. Inducted into the `Hall of Pride' by the 93rd Indian Science Congress. Honoured with the Teacher's Lifetime Achievement Award. Manager Entrepreneur of the Year from Ernst & Young Retail Visionary of the Year from Images, India's only fashion and retail trade magazine. Honorary Fellowship from the All India Management Association Distinguished Alumni Award from IIT, Delhi. Marketing Man of the Year from A&M, the leading marketing magazine.
ITC CORPORATE STRATEGIES
11
ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems.
ITC’s corporate strategies are: Create multiple drivers of growth by developing a portfolio of world class businesses that best matches organizational capability with opportunities in domestic and export markets. Continue to focus on the chosen portfolio of FMCG, Hotels, Paper, Paperboards & Packaging, Agri Business and Information Technology. Benchmark the health of each business comprehensively across the criteria of Market Standing, Profitability and Internal Vitality. Ensure that each of its businesses is world class and internationally competitive. Enhance the competitive power of the portfolio through synergies derived by blending the diverse skills and a capability residing in ITC’s various businesses. Create distributed leadership within the organization by nurturing talented and focused top management teams for each of the businesses. Continuously strengthen and refine Corporate Governance processes and systems to catalyze the entrepreneurial energies of management by striking the golden balance between executive freedom and the need for effective control and accountability.
Flowing from the concept and principles of Corporate Governance adopted by the Company, leadership within ITC is exercised at three levels. The Board of Directors at the apex, as trustee of shareholders, carries the responsibility for strategic supervision of the Company. The strategic 12
management of the Company rests with the Corporate Management Committee comprising the whole time Directors and members drawn from senior management. The executive management of each business division is vested with the Divisional Management Committee (DMC), headed by the Chief Executive. Each DMC is responsible for and totally focused on the management of its assigned business. This three-tiered interlinked leadership process creates a wholesome balance between the need for focus and executive freedom, and the need for supervision and control. BOARD OF DIRECTORS
CHAIRMAN Y C Deveshwar
EXECUTIVE DIRECTORS Anup Singh K Vaidyanath
Anil Baijal
NON-EXECUTIVE DIRECTORS R K Kaul
S H Khan
S B Mathur
D K Mehrotra
H G Powell
P B Ramanujam
Anthony Ruys
Basudeb Sen
B Vijayaraghavan
ITC MISSION
13
To enhance the wealth generating capability of the enterprise in a globalizing environment, delivering superior and sustainable stakeholder value.
ITC VISION To sustain ITC’s position as one of India’s most valuable corporation through world class performance, creating growing value for the Indian economy and the company’s stakeholders
WELCOME MISSION To be recognized as a premier professional organization providing the finest tourism, hospitality and travel related consumer service in the country and there by contributing to the achievement of the following national and corporate priorities.
CORPORATE MISSION Generating adequate economic surplus to meet expectation of all stakeholders.
NATIONAL MISSION Maximizing foreign exchange earnings, development of human resources and employment generation.
ITC MOTTO A WOW at every moment of truth
THE WELCOM GROUP SLOGAN 14
Nobody Gives You India The Way WE do.
LOGO
ITC CORE VALUES ITC's Core Values are aimed at developing a customer-focused, high-performance organization which creates value for all its stakeholders:
Trusteeship As professional managers, we are conscious that ITC has been given to us in "trust" by all our stakeholders. We will actualize stakeholder value and interest on a long term sustainable basis.
Customer Focus We are always customer focused and will deliver what the customer needs in terms of value, quality and satisfaction.
Respect for People We are result oriented, setting high performance standards for ourselves as individuals and teams. We will simultaneously respect and value people and uphold humanness and human dignity.
15
We acknowledge that every individual brings different perspectives and capabilities to the team and that a strong team is founded on a variety of perspectives. We want individuals to dream, value differences, create and experiment in pursuit of opportunities and achieve leadership through teamwork.
Excellence We do what is right, do it well and win. We will strive for excellence in whatever we do.
Innovation We will constantly pursue newer and better processes, products, services and management practices.
Nation Orientation We are aware of our responsibility to generate economic value for the Nation. In pursuit of our goals, we will make no compromise in complying with applicable laws and regulations at all levels
16
PRODUCTS AND SERVICES
Take an abiding commitment to world-class quality. Add deep market insight; cutting-edge technology; a pervasive culture of innovation. And you have ITC brands that do India proud across a range of products and services: Aashirvaad, Sunfeast, Kitchens of India, mint-o, Candyman, Bingo!, Wills Lifestyle, John Players, Miss Players, Essenza Di Wills, Fiama Di Wills, Vivel Portfolio, Superia, ITC-Welcomgroup, Classmate, Paperkraft, Expressions, AIM, Mangaldeep, Expressions Aromatic Candles
17
ABOUT ITC HOTELS
ITC entered the hotels business in 1975 with the acquisition of a hotel in Chennai, which was then rechristened ITC Chola. Since then the ITC-Welcomgroup brand has become synonymous with Indian hospitality. With over 100 hotels in more than 80 destinations, ITC-Welcomgroup has set new standards of excellence in the hotel industry in Accommodation, Cuisine, Environment and Guest Safety. ITC's Hotels business is one of India's finest and fastest growing hospitality chains. ITC Hotels' commitment to delivering globally benchmarked services, embedded in a culture deeply rooted in India's rich tradition of hospitality, gives it a unique and distinct identity. A leader in the premium hospitality segment, ITC Hotels have had the privilege of hosting world leaders, Heads of State and discerning guests from across the world and within.
ITC-Welcomgroup pioneered the holistic concept of 'branded accommodation' in the hospitality industry. It was the first to launch the idea of a 'Hotel within a Hotel' by segmenting, customizing and branding hotel services like 'ITC One', 'Towers' and the 'Executive Club'. Each of these caters to specialized needs of the global business traveler with unmatched quality and a range of custom-made services.
ITC-Welcomgroup was the first to introduce branded cuisine. Its restaurants Bukhara, Dakshin and DumPukht are today powerful cuisine brands. ITC-Welcomgroup also showcases international cuisine in its specialty restaurants West View and Pan Asian.
18
ITC has strategically customized its hotels and appropriately categorized them to fulfill the service and budgetary needs of travelers. ITC-Welcomgroup has an exclusive tie-up with global partner Starwood for its top of the line premium brand, the 'Luxury Collection'. ITC Hotels was also instrumental in bringing the 'Sheraton' brand to India, with which it enjoyed a three-decade exclusive partnership.
ITC-Welcomgroup's properties are classified under four distinct brands:
19
ITC MAURYA, DELHI
Overview The ITC Maurya, New Delhi has been the preferred residence of visiting heads of state and global business leaders for over 25 years. This extraordinary hotel combines an historic aura with contemporary facilities to create an unrivalled luxury hotel experience.
Situated in the heart of the exclusive Diplomatic Enclave and surrounded by views of Delhi’s green belt – the forested ridge, our business hotel is a convenient 14 kilometers (25 minutes) from the International Airport. An imposing structure of timeless luxury boasts inspiring architecture and a majestic ambiance – a tribute to the age of the great Mauryan Dynasty, which created the golden era of Indian history.
440 rooms, including 29 uniquely-designed suites, are available in a bouquet of room categories, from the Executive Club which pioneers a tradition in corporate hospitality to the Towers’ eight luxurious floors of elegance and tranquility. The Luxury Room combines the best of opulence, space, and service standards and the ITC One – our premium room category – offers magnificent decor, impeccable service, and the latest in modern conveniences and amenities. Behind the lavishness is a crisp efficiency and a deep understanding of the needs of the global traveler.
One of the most popular dining destinations in the city, ITC Maurya, New Delhi additionally offers an assortment of internationally acclaimed cuisine including the Bukhara, which is a world renowned restaurant.
20
SUPPORTING DEPARTMENTS
HUMAN RESOURCES
TECHNICAL SERVICES LEARNING SERVICES FINANCE DEPARTMEN T
HORTICULTUR E
Supportin g Departme nts
LOSS PREVENTATION
21
SALON- DIWILLS (BEAUTY PARLOUR) HEALTH CLUB (KAYA KALP)
SIX SIGMA SALES & MARKETING
SWOT ANALYSIS
STRENGTH
WEAKNESS
Based on Indian Value
Affordable only for high profile guests
Different categories of room
Inflexibility in room rates
available like GPS (Especially for HOS)
Special EVA floor for Single lady travelers OPPORTUNITY
Close to Airport
Good numbers of rooms as
THREAT
Near by Competitors Like Taj
compared to the other hotels
Diversified business, therefore can use ITC FMCG products in the hotel
RESEARCH METHODOLOGY
22
2.1 STATEMENT OF THE PROBLEM
“To investigate and analyze the factors which motivate employees, under consideration of individual characteristics.”
2.2 OBJECTIVE AND SCOPE OF THE STUDY
PRIMARY OBJECTIVE
To find out the most critical factors for motivation and job satisfaction. To study the extent of these factors present in the selected company ITC Maurya.
SECONDARY OBJECTIVE
To study the importance of these factors for the employees. To study enlighten the area where motivation is needed the most. 23
2.3 MANAGERIAL USELFULNESS OF STUDY
The project is based to study and identify the motivational factors in the employees working in ITC Maurya. On the basis of study evaluation will be done to know different motivational factors with which employees are satisfied & engaged and which are the factors where Maurya is lacking the most.
2.4 TYPE OF RESEARCH AND RESEARCH DESIGN
The following chapter provides the reader with information about the research process in order to enable him/her to understand and to evaluate the investigation and the results. For these purposes a short overview about the research process, positivism and hermeneutics, the quantitative and qualitative research, the data collection, a reflection on objectivity, reliability and validity as well as criticism towards the chosen methods are presented.
The first step in doing this research was the formulation of the problem and the creation of the research questions. Secondary data was gathered in the form of books and articles in order to improve the understanding of the research problem. The questionnaire about motivation and work
24
was created, based on the knowledge of the theoretical research. Thereby, several decisions such as the form of the questions and the language used in the questionnaire had to be made.
The questionnaires were collected and a period of editing and analyzing the data started. During the entire time between determining the methodology and the end of writing down the analysis the frames of reference was created. Finally, the research report was completed by adding the conclusion and the closing comments.
2.4.1 THE RESEARCH PROCESS - A SHORT OVERVIEW
Each research problem is in some way unique, and therefore requires a tailored research procedure. In the following, the research process of this study is shown.
25
Formulation of the problem and the research questions Methodology
Questionnaire
Frames of Reference
Analysis
Conclusion
Figure 2.4.1: Stages in the research process (own creation)
2.4.2 QUESTIONNAIRE ABOUT MOTIVATION AND WORK
The primary advantage of questionnaires is the opportunity to reach a high number of respondents. Moreover, there is no interviewer bias and the costs are relatively low. In addition, respondents may be more willing to provide information about certain issues, have time to answer questions, and may answer the questions at times that are convenient (Bickman and Rog, 1998). On the other hand, it 26
may consume a lot of time when waiting for answers, non response rates may be high, existing bias due to non response, especially where response is slow, and certain types of questions cannot be asked (Douglas and Craig, 1983). Furthermore, misinterpretations and misrepresentations are common with questionnaires.
The questionnaire about motivation and work was based on a job description questionnaire created by Hackman and Oldham (1980) and was addressed to a sample of employees of the company. The questionnaire comprised of three pages, and was divided in four parts. In the first part the respondents
were
asked
to
describe
their
job
and
to
evaluate
their
extent
of
satisfaction/dissatisfaction with the respective job feature. For that purpose, the persons had to choose a number out of a scale from one ("little extent" or "dissatisfied") to eight ("much" or "satisfied"). The second section included statements about certain job aspects, which had to be evaluated by the respondents according to the extent of importance that they attach to them. The persons had the opportunity to choose a figure out of a scale from one ("less important") to eight ("very important"). To sum up, the first part was aimed to investigate the extent of the presence of certain job features as well as the employees' level of satisfaction with them, whereas the second part was used to realize the strength of certain work motives. Part three deals with certain kinds of benefits that are offered by the company. The respondents had to evaluate how important these benefits are for them. A scale from one ("less important") to eight ("very important") was used as well. Furthermore, they had the opportunity to propose additional benefits. The last part was dedicated to gather general information such as the current age range, the gender, the marital status, the years a person has been working in that company as well as the work area and the position within the company. This individual data comprised the subgroups that represent the basis for the analysis. Finally, the respondents had the possibility to write down additional information about their job that could be helpful to understand that job.
27
In order to minimize misinterpretations and misrepresentations, the questions as well as the instructions have been designed in a clear and precise way so that different persons would not interpret them differently.
Predominantly fixed-alternative questions but also open-ended questions, albeit only to a minor extent, were used to gather information. Therefore, the structure of this questionnaire can be described as some kind of intermediate. Most of the fixed-alternative questions employed a scale from one to eight to capture the responses. The other fixed-alternative questions are questions, which permit the respondents to choose an alternative out of several possible answers. Only a limited amount of open-ended questions allowed the respondents to answer in their own words.
2.4.3 QUANTITATIVE AND QUALITATIVE RESEARCH
Research methodology is often divided into the quantitative and qualitative research. Both of these types of research are considered in research design, data collection, analysis, and reporting (Bickman and Rog, 1997). As mentioned before, the quantitative method allows the measurement of relationships between variables in a systematic and statistical way and is therefore best suited for the positivistic researcher.
The qualitative method, on the other hand, is most appropriate for the
hermeneutic researcher in order to gain a deeper understanding of a special research problem (Cassell and Symon, 1995).
According to Bickman and Rog (1997), a researcher has to find the tools which best fit the research questions, context, and resources at hand. Thereby, multiple tools are often needed to research a topic thoroughly and to provide results that can be used. Cassell and Symon (1995) pointed out that a combination of quantitative and qualitative methods in the same study is called the pragmatic view. That means tools that are available and appropriate to best serve the research problem should be used. Furthermore, Gordon and Langmaid (1988) argued that the results of 28
quantitative and/or qualitative research might permit various interpretations. In other words, there is no 'right way' or 'only way' to interpret the findings of the research.
The quantitative research approach focuses on questions such as "How many?" and "How often?” which is easily processed in the form of numbers. In other words, the collected material can be expressed and analyzed in numbers. However, according to Gordon and Langmaid (1988), the quantitative research holds not only the advantage of statistical and numerical measurement, but also the advantages of sub-group sampling or comparisons. Moreover, the quantitative research offers the possibility to repeat the survey in the future and to compare the results.
In this study quantitative as well as qualitative methods (triangulation) were employed. The questionnaire provided predominantly quantitative data and to a minor extent qualitative data.
2.5 DATA COLLECTION METHOD The collection of data represents a prerequisite for carrying out a research and can be derived from a number of different sources. These sources are classified into secondary and primary data (Clarke and Dawson, 1999).
McNeill (1985) pointed out that secondary data is material that has been gathered previously, and primary data consists of new material collected by the researcher for the purpose at hand by the use of questionnaires, interviews, and participant observation.
2.5.1 SECONDARY DATA Secondary data, in comparison with primary data holds the advantage that it is cheap and most of the time easy to access (Churchill, 1995). However, it may also entail a large amount of
29
flawed and/or inappropriate data (Bickman and Rog, 1997). According to the literature, the researcher should first focus on secondary data in the process of data collection.
Although a problem is not completely solved by secondary data, it contributes to a better statement of the problem under investigation. It offers improved methods or data.
Several forms of secondary data have been used in this research. These include books, articles and course literature with useful information for this study.
Thereby, it helped in gaining a deeper understanding of the presented research problem .This secondary data was then used for writing the theoretical framework and the background.
2.5.2 PRIMARY DATA As mentioned above, secondary data rarely solves a research problem completely. Therefore, additional information to the problem at hand primary data - is needed. Once secondary data has been examined, primary data can be selected by communication or observation. Communication involves the asking of questions to respondents in an oral or written form by the use of questionnaires.
According to Churchill, communication may be served by mail questionnaires and interviews conducted either in person or over the telephone. Observation means that the researcher observes particular situations in order to record facts, actions, or behaviors that may be of interest for solving the research problem.
30
The selection of primary data by communication is faster and cheaper than observation, and holds the advantage of versatility. On the other hand, according to Churchill, observational data is more objective and accurate due to the fact that the collected information is not influenced by a person's memory, mood, or reluctance to provide the desired data.
As mentioned before, the combination of several methods allows the researcher to consider the units under study from several directions and to enhance the understanding. The methodology employed in this research consisted of a questionnaire. For instance, the questionnaire gathers data about issues, which are a part of it.
The use of observations was not considered since the extent to which an individual perceives satisfaction with his/her job features as well as the importance, which is attached to certain job features by this person, may be difficult to observe, particularly, in such a short time span that was available to accomplish this study.
2.6 LIMITATIONS OF STUDY
Tool used to identify Motivational factor of the employee, doesn’t give any idea about De motivational factors which are existing in the employees.
Tool used to identify Motivational factor is Questionnaire, which sometimes doesn’t give fair idea and sometimes respondents hide their views.
Time frame of two months is very short for such type of study.
31
CONCEPTUAL DISCUSSION
3.1 REVIEW OF LITERATURE
32
Work provides products and services, which represent the basis for a company's success (Steers, 1991), but it is also an important and highly central aspect in the lives of individuals (Hall, 1994) due to several reasons.
First, persons receive some kind of reward, extrinsic (such as money) or intrinsic (satisfaction coming from the work), in exchange for their performance (Steers and Porters, 1991). The individual holds certain personal expectations in terms of form and amount of reward, which he/she should receive for the provided service. Thereby, the performance of a person as well as the decision to remain in the company is influenced by the extent to which such expectations are met.
Second, the workplace presents opportunities for socialization with other people (Hall, 1994). Third, the job is often a source of rank, or status, in the society in general (Steers, 1991). In other words, the work may provide a source of social differentiation. Fourth, Steers and Porter (1991) pointed out that work has an individual meaning for each person. This can range from a source of identity and self-esteem, to a source of frustration, boredom, and a feeling of meaninglessness, caused by the nature of the task and the characteristics of the person.
As mentioned before, for some people work is a source of great satisfaction; for many others it is the reason for dissatisfaction. Regarding the fact that employees spend a large part of a day at work for 40 to 45 years, it is important that those employees experience positive feelings towards their tasks. Otherwise, it would be a long time to be frustrated, dissatisfied and unhappy. Moreover, these negative feelings may affect the family or social life as well as the physical and emotional health of an individual. Herzberg, Mausner, and Snyderman (1999) pointed out that an employee, irrespective of if he/she is working in an office or on a bench, will experience his/her tasks, as well as the workday totally differently if the attitudes toward the job are good or if they are bad. In addition, they argued that the employees' feelings toward their work have a significant influence on the success and failure of the company. For instance, during hard times the level of morale within the
33
work force may determine whether a company will survive. In other words, motivated employees contribute to a company's survival.
Employees are a valuable resource that may contribute in several different ways to a company's activities, provided that the company gives them an appropriate chance (Morgan, 1997). In order to be successful, a company needs employees who act toward the goals of the organization and have a strong desire to remain in the company. Such loyalty and commitment may be generated by motivation. Furthermore, motivation is aimed to achieve increases in work productivity and job satisfaction (Schultz and Schultz, 1998).
Particularly, the impacts of motivation on the work performance and productivity attracted attention towards motivation in the work environment (Huddleston and Good, 1999). Highly motivated persons tend to work harder and perform more effectively in their jobs than less motivated individuals. In addition, several studies showed that job satisfaction leads to a better performance as well as to more customer orientation. However, according to Molander (1996) and Westerman and Donoghue (1989), the accumulated research evidence suggests that the relation between job satisfaction and performance is quite weak.
The knowledge about needs and expectations of employees at work represents the basis for their motivation. Moreover, the structure of the work and the employees' degree of satisfaction with the job are important in order to increase the actual motivation and satisfaction with their work.
Thereby, the differences regarding what people want and actually perceive from their job are of significance. The strongest motivator is, according to Wiley (1997), something that people value, but lack. The knowledge about those strong motivators is of great value and may serve as a starting point for the re-design of work, in order to increase an employee's motivation and satisfaction.
34
3.1.1 MOTIVATION
Motivation is a highly complex phenomenon (Bent, et al., 1999) that influences and is influenced by a large number of factors in the organizational environment (Porter and Steers, 1991). The study of motivation is concerned with why individuals think and behave as they do (Mullin, 1999; Weiner, 1992; Wagner, 1999). A great amount of definitions are presented by literature, e.g. Vignali point’s out that motivation is a process that triggers individuals to act as they do.
Moreover, Westerman and Donoghue refer to motivation as "…a set of processes which energize a person's behavior and direct him or her towards attaining some goal, or put more simply getting people to do willingly and well those things which have to be done." . Generally, motivation deals with forces, which initiate, direct and sustain behavior towards the attainment of certain goals (Bent et al., 1999). Particularly, in terms of the organizational aspect, motivation focuses, according to Molander (1996), on an individual's willingness to put efforts into his/her work, and on the amount of efforts, which are made in order to obtain incentives or a special form of incentives.
The discussion of motivation in the literature (recent and less recent) refers to three aspects: (1) What is the arousal or energizing source of the individual behavior? (2) What directs or channels such behavior (Vroom, 1964; Wagner, 1999; Atkinson et al., 1975), and (3) The maintenance and sustain of this behavior (Bent et al., 1999).
35
The first issue deals with driving forces inherent in the individual that leads to a certain behavior, and with environmental forces that often cause these drives (Porter and Steers, 1991). The second feature involves the direction of behavior towards a goal (Wagner, 1999). Furthermore, Porter and Steers (1991) refer to the third matter as forces within the individual and environmental forces that provide the individual with feedback. This feedback either reinforces the individual to intensify his/her drive and the direction of his/her energy, or discourages the individual to pursue his/her course of action and redirects his/her efforts.
Thereby, according to Steers and Porter (1991), the individual will be provided with feedback about the impact of his/her behavior. That, in turn may induce the individual to alter his/her present behavior, or may reassure the individual that his/her current way of acting is correct and may confirm the person in pursuing this course of action.
Figure 3.1.1: A simplified illustration of the basic motivational model
The motivational process is not as simple and straightforward as it seems. It is, according to Atkinson et al. (1975), a far more complex study. Porter and Steers (1991) refer to Dunnette and Kirchner (1965) and others who identified four aspects, which complicate the simplicity of the model. 36
The first aspect refers to the fact that motives cannot directly be observed and therefore a need to deduce them exists (Baron, 1983). However, the inference of motives from observed behavior is associated with difficulties traced back to at least five reasons mentioned by Atkinson et al. (1975). These five reasons are: (1) Several motives may be expressed through any single action; (2) Motives may occur in disguised forms; (3) Similar or identical actions may represent several motives; (4) Different behavior may embody similar motives; and (5) The modes of expression of certain motives may be mitigated by
personal and cultural
variations.
The second complication of the model deals with the fact that any person has a host of motives. These motives may change over time and conflict with each other (Baron, 1983). Third, Porter and Steers (1991) point out that the selection of certain motives over others, as well as the intensity with which such motives are pursued, may differ from person to person. In addition, they refer to the fourth complication, the fact that an attainment of certain needs, desires and expectations may prompt a person to direct his/her attention to other motives, or to intensify the pursuit of these motives.
3.1.2 NEEDS AND EXPECTATIONS AT WORK Individuals are different and therefore also have different needs and expectations, which they attempt to fulfill in many different ways. These needs and expectations, altering and often 37
conflicting with each other over time, may be classified in several ways. Two out of the variety of classifications will be explained more detailed in the following.
Intrinsic and extrinsic motivation Needs and expectations (motivators) are often considered in terms of being internal or external to an individual. Internal motivators are, according to Mak and Sockel (2001), concerned with intrinsic needs that satisfy a person, whereas external motivators are considered as environmental factors brought by the company to the individual.
Intrinsic motivation is the desire of an individual to perform his/her work well, in order to achieve the satisfaction of intrinsic needs. In other words, an individual performs a task in order to achieve certain types of internal states, which he/she experiences as rewarding. Intrinsic motivation relates to psychological rewards such as the recognition of a task completed (Mullins, 1999).
External rewards such as food, money, praise, and so on, are not the main reason for a person to engage in activities (Deci, 1975). Intrinsic motives can be satisfied by the work itself. In other words, the task itself is the main source of motivation, since it provides interest, stimulation, challenges, and opportunities for personal growth and achievement to the individual (Molander, 1996). Deci (1975) refers to intrinsically motivated behavior as behavior that is determined by an individual's need for feeling competent and self determining. On the one hand, a person will seek out challenges that allow him/her to behave in ways that provide him/her with a sense of competence and self-determination. On the other hand, an individual is engaged in a process of conquering challenges. Extrinsic motivation, on the other hand, refers to tangible rewards such as pay, fringe benefits, work environment, work conditions, and job security (Mullins, 1999). Extrinsic motives cannot only be satisfied by the work itself. That means pleasure comes from something the task leads to, such as money. According to Jung (1997,) the effects of work as well as its contributing factors
38
are also of importance for the need satisfaction. Thereby, the work is seen as a means to pursue other motives.
3.1.3 BROAD CLASSIFICATION FOR MOTIVATION TO WORK According to Mullins (1999), needs and expectations can be distinguished in economic rewards, intrinsic satisfaction, and social relationships. Economic rewards such as pay, fringe benefits, and material goods are an instrumental orientation to work. Intrinsic satisfaction is provided by the work itself and represents a personal orientation to work. Friendships, teamwork, and the need for affiliation are part of the social relationship that constitutes the relational orientation to work. The relative strength of all these categories of needs and expectations together with the extent to which they are satisfied determines an individual’s motivation, job satisfaction and job performance. People differ in their preferences, e.g. some persons may prefer economic rewards, whereas other individuals will favor intrinsic satisfaction and/or social relationships. These preferences may change over time.
3.1.4 JOB SATISFACTION Satisfaction is an internal state (Mullins, 1999). Various authors define it as the outcome of a motivational process. Job satisfaction is the positive and negative feelings and attitudes which an individual holds about his/her work (Schultz and Schultz, 1998). In other words, it is the extent to which an individual favors his/her job.
Positive attitudes toward the job are equivalent to job satisfaction, whereas negative attitudes represent job dissatisfaction. Job satisfaction is a complex phenomenon and depends on many workrelated as well as personal factors. That means personal factors such as age, gender, and job experience as well as the characteristics of the job influences a person's degree of job satisfaction (Lawler and Porter, 1967).
39
Even though personal characteristics are unchangeable by the company, they can be used for predictions of satisfaction among groups of employees. The redesign of the work, as well as of the work environment, may lead to increases in job satisfaction and productivity (Schultz and Schultz, 1998). For example, a redesign of work may provide an employee with the opportunity for personal growth and development. Individuals may be satisfied with some aspects of their work and dissatisfied with others.
However, all attitudes are not measured by the overall job satisfaction. Therefore, it might be of use to break down an individual’s attitude toward his/her work as a whole, into attitudes held toward single facets of the job such as pay, security, social conditions, and so on . In other words, since the overall job satisfaction does not measure all positive and negative attitudes of a person toward his/her work, it would be of avail to measure single facets of job satisfaction. Job satisfaction is a main factor for the motivation of employees and is closely related to customer-orientation.
According to Blankertz and Robinson, individuals who are satisfied with their job to a high extent, are very motivated and do not prefer to leave their job. The relationship between job satisfaction and work performance is not explicit. Some theorists think that job satisfaction leads to a better performance. However, the accumulated research evidence only suggests a quite weak correlation between job satisfaction and performance (Molander, 1996). Vroom (1964) pointed out that there exists no simple relationship between job satisfaction and performance. Correlation between these two variables varies to a large extent, with an average of 0.14. According to Vroom (1964), this figure is too low to be of theoretical or practical relevance. Moreover, the opinions of theorists differ in terms of whether job satisfaction leads to improved productivity or the reverse (Mullins, 1999).
40
Lawler and Porter (1967), for instance, described the fact that increased performance leads to satisfaction with the help of a third variable - rewards. They assumed that good performance leads to rewards either in the form of extrinsic or intrinsic rewards, which in turn will cause satisfaction.
Furthermore, job satisfaction and life satisfaction are related positively and reciprocally to each other. That means a person with positive feelings about his/her family and personal life will be likely to develop positive attitudes toward his/her job and vice versa (Schultz and Schultz, 1998). In addition, several studies, for instance Vroom (1964), have shown that a negative relation between job satisfaction and labor turnover exists. The more satisfied an individual is with his/her work, the less likely he/she will change the employer. However, there are a lot of other factors such as the organizational commitment of an employee, and the state of the labor market, which have an influence on the turnover behavior as well.
The relation between job satisfaction and absenteeism inclines to be negative and less consistent. However, Verhaegen argued that turnover and absenteeism are related to satisfaction in some way, but since many other factors influence these variables as well, an explicit relationship can only be identified in some concrete situations. Finally, the more a person identifies himself/herself psychologically with the job, the higher the job satisfaction seems to be. Thereby, according to Schultz and Schultz
(1998), job involvement depends on personal factors such as age and growth needs, job characteristics like autonomy, variety, stimulation, and feedback, and social factors such as group work.
3.1.5 WORK MOTIVATION THEORIES
Since motivation deals with factors that energies direct and sustain behavior, there are a lot of important variables, which may influence an individual’s motivation at work. These variables can be 41
distinguished in three groups: characteristics of the individual, job characteristics, and work environment characteristics (Steers and Porter, 1983). These sets of variables were considered in the Steers study as well. Steers developed a model, which shows the antecedents and consequences of organizational commitment.
Figure 3.1.5: Hypothesized antecedents and outcomes of organizational commitment
Organizational commitment can be described as the extent to which an individual identifies himself/herself with and is involved in the company (Mak and Sockel, 2001). Schultz and Schultz (1998) mentioned that organizational commitment includes the fact that a person has to accept the goals and values of the company, has to be willing to expend efforts for the enterprise, and has the desire to remain in the company. According to Steers and Porter (1983), two types of commitment can be found in the literature - the attitudinal and behavioral commitment. The attitudinal commitment contains an individual's identification with the company and his/ her wish to remain in the organization. The behavioral commitment, on the other hand, deals with the aspect that a person feels bound to the company, but there is no personal identification with the company goals and values (Schultz and Schultz, 1998). Payment and benefits are, according to Torrington and Hall
42
(1995), means to commit people to the company, but will not necessarily lead to high levels of performance.
According to Steers (1977), mentioned in Dessler (1986), the antecedents of organizational commitment are personal characteristics (need for achievement, age and education), job characteristics (feedback, interesting and meaningful work), and work attitudes (for instance group attitudes).
All antecedents together determine a person's organizational commitment, which in turn influences, among others, a person's job performance and the desire to stay in membership with the company. Moreover, Steers and Porter (1983) pointed out that "Individuals enter organizations with certain needs, desires, skills, and so forth and expect to find a work environment where they can utilize their abilities and satisfy many of their basic needs. Where the organization provides such opportunities (e.g., where it makes effective use of its employees, is dependable, etc.), the likelihood of increasing commitment is apparently enhanced. However, where the organization is not dependable, or where it fails to provide employees with challenging and meaningful tasks, commitment levels tend to diminish."
3.2 CURRENT ISSUES – FOR COMPANY AND INDUSTRY
43
44
45
DATA ANALYSIS
46
4.1 METHOD AND TECHNIQUES OF DATA ANALYSIS
This part of the project deals with the results of the questionnaire – the evaluation of the job situation and the satisfaction with certain job features, how much importance employees attach toward certain job features, and the evaluation of the benefits offered by the company. Moreover, the results of the interviews are presented in order to provide a better understanding of the questionnaire findings. Additionally, the empirical findings are analyzed in connection to the theoretical background.
First, the examined factors are explained in order to make it easier for the reader to understand the meaning of those terms.
The factor skills contain to do many different things, to use a number of skills and talents to perform the work, and to have challenges in the work. Task identity means that a person does an entire piece of work from beginning to end. Task significance deals with the importance and meaningfulness of the work and its effects on other people's life. Autonomy refers to an individual’s freedom and independence to schedule and organize his/her work. Feedback can be received directly from the work itself as well as from superiors, co-workers, and customers. The factor environment includes the relationship to co-workers, the co-operation with other persons, and the work condition. Job security deals with the fear to lose the job. The last factor compensation considers the salary and wages, as well as the benefits offered by the company. These benefits are the profit-sharing (referred in the tables and figures as 47
benefit), subsidized lunch price and free coffee (food), sport activities paid by the company (sport), and free work clothes including the washing (work).
Skills, task identity, task significance, autonomy and feedback are job characteristics according to the model by Hackman and Oldham. They represent intrinsic motivation factors and can be related to the motivators in Herzberg's theory and the higher level needs in Maslow's hierarchy of needs. These motivators influence an employee's internal motivation and satisfaction with the job. Environment, job security, and compensation are factors, which concern the work context according to Hackman and Oldham (1980). Moreover, they are related to the hygiene factors in Herzberg's theory and the lower level needs in Maslow's hierarchy of needs. These needs have, according to the before mentioned theories, to be fulfilled to a certain degree before higher level needs may occur to a higher extent. Furthermore, they do not lead to satisfaction with the work, but decrease the level of dissatisfaction of an employee and influence a person's willingness to take advantage of challenges in the work. Likewise, the importance of the environment was emphasized by the Hawthorne studies, which identified social relations as the source of motivation. The link among the Hawthorne studies, Maslow's, Herzberg's.
48
4.2 PRIMARY AND SECONDARY DATA ANALYSIS
The factors examined in this study are analyzed according to individual characteristics of the sample - age, gender, marital status, blue-collar/white-collar worker, leading/non-leading position, and the years in the company.
SUBGROUPS
SAMPLE In numbers
AGE
in %
< = 30 years 31-45 years >=46 years
36 15 12
57 24 19
MALE
36
57.1
FEMALE
27
43
< 2 years 2-5 years >5-10 years >10 years
24 9 9 21
38 14 14 33.33
FOTH
39
62
BOTH
24
38
MARRIED
33
52.3
UNMARRIED
30
47.6
GENDER
YEARS IN THE COMPANY
WORK AREA MARITAL STATUS
49
AGE (MEAN)
AGE
SKILLS
TASK IDENTITY
FEEDBACK
JOB SECURITY
COMPENSATION
<=30
2.485
1.5
1.56
0.8
1.2
31-45
3.1
2.6
1.36
0.8
1.54
>=46
2.82
0.4
1.43
0.9
1.4
INTRINSIC FACTORS
It can be stated that people experience their work as more meaningful (skill variety, task identity) when their age is between 31-45 years. Older people experience more responsibility for the outcomes of the work, and have a higher knowledge of the actual results of the work activities (feedback) with increasing age. That leads in turn to a higher internal work motivation and satisfaction with the work, which increases in the age. 50
EXTRINSIC FACTORS
AGE
BENEFITS
FOOD
SPORTS
WORK
<=30
7.3
5.2
6.3
7
31-45
7.4
5.5
6.2
6.8
>=46
7.3
5.6
6.8
6.9
The evaluation of the importance of the benefits (compensation) offered by the company showed little differences among the age groups.
51
GENDER (Mean) INTRINSIC FACTORS
GENDER
SKILLS
TASK IDENTITY
FEEDBACK
JOB SECURITY
COMPENSATION
MALE
2.94
1.65
1.61
0.88
1.41
FEMALE
2.35
1.48
1.32
0.8
1.16
Men evaluated the job factors higher than women. There are no significant differences in terms of job security and task identity. Therefore, it can be stated that men and women perceive their work as meaningful to the same extent. In addition, in view of autonomy and feedback it can be said that men give more importance to feedback than women. Hence, there seem to be a slight difference in the motivation and satisfaction with the work regarding the gender. Men always attached more importance to the respective job features than women. However, weak differences can be seen between men and women. 52
EXTRINSIC FACTORS
GENDER
BENEFITS
FOOD
SPORTS
WORK
MALE
7.3
5.3
6.1
7
FEMALE
7.7
6
6.4
6.3
Women always attached more importance to the respective benefits than men do. Taking into consideration the comparative strength of the economic rewards, extrinsic satisfaction, and social relationships, and the extent to which they are fulfilled, slight differences in the work motivation and satisfaction can be noticed in reference to the gender. Women attach more importance to extrinsic factors than men.
53
MARITAL STATUS (Mean) INTRINSIC FACTORS MARITIAL STATUS
SKILLS
TASK IDENTITY
FEEDBACK
JOB SECURITY
COMPENSATION
MARRIED
3.07
1.69
1.54
0.9
0.84
UNMARRIED
2.27
1.52
1.51
0.82
0.72
The responses in terms of the situation at work and the satisfaction with work, analyzed regarding the marital status, showed that married people evaluated the job factors, even if only to a minor extent, higher than unmarried. Referring to Hackman and Oldham's model, it is interesting to note that married people perceive the use of a variety of skills, task identity, and the significance of the tasks in their job to a higher extent than unmarried people. Nevertheless, these differences are less than 1, and therefore it may be noted here that unmarried persons experience all factors similar to married people. Furthermore, married and unmarried persons evaluated the extent to which feedback is present at work as similar.
54
EXTRINSIC FACTORS
MARITAL STATUS
BENEFITS
FOOD
SPORTS
WORK
Married
7.6
5.9
6.4
6.8
Unmarried
7.3
5.2
6
7
Given the comparative strength of economic rewards, intrinsic satisfaction, and social relationships, as well as the satisfaction of those needs, slight differences in the work motivation and satisfaction regarding the marital status can be identified. Married people always attached more importance to the respective benefits than unmarried people.
55
WORK AREA (Mean) INTRINSIC FACTORS WORK AREA
SKILLS
TASK IDENTITY
FEEDBACK
JOB SECURITY
COMPENSATION
FOTH
3.07
1.65
1.51
0.91
0.79
BOTH
2.27
1.48
1.54
0.79
0.76
*FOTH – FRONT OF THE HOUSE *BOTH – BACK OF THE HOUSE
The received data shows a clear tendency that FOTH workers are more satisfied and perceive all investigated job factors to a higher extent than BOTH workers. In particular, weak differences can be noticed in skills, task identity and task significance. Comparing the intrinsic job factors according to the actual work situation, the following can be stated. Skill variety, task identity, and task significance, which contribute to the feeling of doing a meaningful job, are to a weak extent, perceived as lower by the BOTH workers than by the FOTH workers. In addition, BOTH workers evaluated the extent to which they can decide how and when to perform the work as lower. That means the responsibility for work outcomes is experienced to a lower degree as well. There are no differences between both the workers regarding the feedback, which influences a person's knowledge of the actual work results. 56
EXTRINSIC FACTORS
WORK AREA
BENEFITS
FOOD
SPORTS
WORK
FOTH
7.3
5.4
6.3
7.1
BOTH
7.3
5.4
5.8
6.3
*FOTH – FRONT OF THE HOUSE *BOTH – BACK OF THE HOUSE
Taking into consideration the comparative strength of all factors – economic rewards, intrinsic satisfaction factors, and social relationships - and their degree of fulfillment, it may be noted here that there is very little difference on how the workers perceive the benefits and other extrinsic factors. Furthermore, a comparison of the data concerning the job situation and the job satisfaction with the importance attributed to the job factors suggests a very slight difference.
57
YEARS IN A COMPANY (Mean) INTRINSIC FACTORS YEARS IN COMPANY <2 years 2-5 years 5-10 years >10 years
SKILLS 2.49 3.1 2.82 3.2
TASK IDENTITY 1.5 2.6 0.4 2.7
FEEDBACK 1.56 1.36 1.43 2
JOB SECURITY 0.8 0.8 0.9 0.9
COMPENSATION 1.2 1.54 1.4 2
When the responses were analyzed with regard to the years people have been working in the company, some interesting findings can be seen. After more than 10 years a sharp increase in the satisfaction of employees can be recognized in terms of using a variety of skills, task identity, and the meaningfulness and interest of the job. Comparing the variety of skills, task identity, and task significance regarding the years in the company, it may be noticed that these three dimensions show major differences in the range from up to 2 years to 10 years. Those employees experienced the meaningfulness of the work, which in turn contributes to the extent of the internal motivation and job satisfaction, similarly. Persons who have been working in the company more than 10 years experienced these three dimensions, to a weak extent, higher than the other employees did. In other words, they experienced their jobs as more meaningful. Considering the aspect of job security in the range from up to 2 years to 10 years and more, no differences can be recognized. That means they experienced the responsibility for the work results to nearly the same extent. The feedback suggests no major differences from up to 2 years to 10 years. 58
EXTRINSIC FACTORS
YEARS IN COMPANY <2 years 2-5 years 5-10 years >10 years
BENEFIT 7.2 7.6 7.7 7
FOOD 5 6.3 4.9 5.4
SPORTS 6.3 6.5 5.6 6
WORK 7.3 6.8 6.9 6.5
Taking into consideration the comparative strength of all factors – economic rewards, intrinsic satisfaction factors, and social relationships - and their degree of fulfillment, it may be noted here that there is very little difference on how the workers perceive the benefits and other extrinsic factors. Furthermore, a comparison of the data concerning the job situation and the job satisfaction with the importance attributed to the job factors suggests a very slight difference.
59
FINDINGS AND RECOMMENDATIONS
60
5.1 FINDINGS
General Manager’s tea. It is organized on quarterly basis. Employees who are appreciated by the guests are given due
recognition by giving the appreciation letter and a gift by the general manager
Employee of the month Departmental heads nominate one staff member from their respective departments. Finally one staff member is chosen from FOTH and BOTH. Photographs of these employees along with a write up about his/her contribution are placed on the notice board. They are also facilitated at the general manager’s tea.
Instant Recognition Any staff member whose name features in the guest comments are called to the daily morning meeting and are appreciated.
Good morning Maurya It is sent to everyone in Maurya in the morning. It contains the birthday list of the employees, Welcomcafe menu, platinum standard of the day etc.
Maurya Gazette It is published on monthly basis and contains the general manager’s important activities of the previous month, photographs and write up’s of the month, monthly WOW ratio, etc.
61
Welcome on board Welcome letter by the general manager is given to the new employees. A brief note along with their photographs is placed on the notice board.
Meet the manager Periodic feedback sessions of new employees with their respective head of departments are
conducted after one to three months.
Buddy system
A buddy is assigned to a new employee who would be there to guide them.
Retirement ceremony The hotel follows a ceremony for the retired employees which makes them feel happy and
increases the level of engagement for the other employees in the organization. The employees at the time of retirement are given a lot of respect from the overall staff along with a shawl and some gifts by the general manager. This ceremony gives the retired employees a sense of pride, achievement and accomplishment which again motivates the existing employees.
New year celebration The New Year is celebrated with a couple of games for the entertainment of employees and
various gifts are rewarded to them. The lucky draw is organized at the New Year function where the employees are presented with various gifts.
62
Diwali Tambola Every year on Diwali, Tambola game is organized for the employees and prizes are
distributed to the winners, which creates an excitement in the minds of employees and boots their morale.
Annual day The annual day is celebrated where all the employees with their families are invited and a
function is organized to celebrate it.
Yoga and meditation camps
The organization also organizes yoga and meditation camps for the fitness for employees. T his practice really benefits the employees and gives them an opportunity to remain fit and healthy.
Open forum
This is a practice in the organization where the employees of different departments address their problems they are facing. These problems are discussed in the morning meeting in front of heads of various departments and various remedies are taken by the HR manager in consultation with various other heads of the department.
Long service awards.
The Employees who have been working in the organization since a long period and have always performed well in their jobs are rewarded and given some gifts.
63
5.2 RECOMMENDATION
Build sufficient flexibility into the employment cycle and emphasize different rewards and cultural elements to motivate them emotionally and intellectually.
Put mechanisms in place to ensure that all employees can see and understand senior management’s concern for them collectively and its vision for the future of the organization. Essentially, this comes down to two-way communication. Keeping employees informed is a prerequisite. Employees want from management is their concern and focus, ability to comment, share ideas and give input. Communication on this level requires a willingness to listen as well as inform, and to present both good and bad news with sufficient context for the news. It requires adherence to a consistent set of messages about the organization and its vision for growth, and frequency in getting those messages out across multiple channels.
Challenging work – Associate should find his / her job challenging. It can be developed by the employer by encouraging associates to take initiative, being open to change, tolerating uncertainty, coaching and developing people’s skills, and holding people accountable for their performance.
Decision-making authority – Associates should have appropriate amount of decision making authority related to their job description. Otherwise, associate start feeling being underestimated at work place. Associates are much more willing to accept increased risk if they perceive they also have control over decisions relating to that risk — as well as relevant information and tools to make good decisions. Essentially, this comes down to an employer’s responsibility to provide employees with information. To the extent a company consistently keeps employees fully informed, it provides the necessary 64
foundation for employees to behave responsibly and accept accountability for making their own decisions.
Career advancement opportunities - If the associates start feeling that within in the company there is no scope of growth and they will not get better opportunities in their future, then start moving away from their job, and gradually become an disengaged and de motivated employee.
The company’s reputation as a good employer also motivates the associate to remain in the organization and actively work for the success of the company.
A collaborative work environment where team members work well in teams, form friendly environment and compensate each others deficiencies in a team gives successful team and work also get accomplished within stipulated time period.
65
CONCLUSION AND SUGGESTIONS
66
CONCLUSION
According to the literature research, skill variety, task identity, task significance, autonomy, feedback, environment, job security, and compensation are the most critical factors for the motivation of employees and their satisfaction with the job. These factors represented the basis for the empirical research.
Factors, which may cause a higher motivation and job satisfaction in the company Since the strongest motivators seem to be things that people value but lack, the following motivators can be identified in order to increase the internal motivation and job satisfaction for the respective subgroups. The motivators are listed according to their motivating strength. Age < = 30: (1) feedback, (2) skills, task significance, and (3) compensation 31 - 45: (1) feedback, (2) skills, and (3) compensation > = 46: (1) feedback
Gender Male:
(1) feedback, (2) skills, task significance, and (3) compensation
Female: (1) feedback and (2) compensation.
Marital status Married:
(1) feedback, (2) task significance, (3) skills, and (4) compensation 67
Unmarried: (1) feedback, (2) skills, and (3) compensation Work area Blue-collar worker: (1) feedback, (2) skills, and (3) compensation White-collar worker: (1) feedback, and (2) environment
Years in the company < = 2 years:
(1) feedback, (2) skills, and (3) compensation
2 - 5 years:
(1) feedback, (2) skills, and (3) compensation
> 5 - 10 years: (1) feedback, (2) skills, (3) compensation, and (4) task identity > 10 years:
(1) feedback, and (2) compensation
68
SUGGESTIONS
(1)The strongest motivator regarding all subgroups is the feedback. Therefore, special attention should be given to that factor in order to increase the internal motivation and job satisfaction.
(2) One should have in mind that the environment and compensation do not actually present motivators. However, their fulfillment to a certain extent provides the basis for taking advantage of challenges in the job and to reduce job dissatisfaction.
(3)In addition, special attention should be given to the skill aspect and the compensation, since they make a contribution to the well being of humans and provide the basis for the use of challenges offered by the job.
(4) Furthermore, all factors examined in this study contribute to the organizational commitment of employees. The intrinsic factors, on the one hand, may influence a person's willingness to expend considerable efforts toward the goals of the company and to remain in the company (attitudinal commitment). The extrinsic factors, on the other hand, may contribute to the behavioral commitment. Factors external to the work situation such as the economic situation, mobility, and other employers may influence an individual's desire to stay in the company as well
ITC is a board-managed professional company, committed to creating enduring value for the shareholder and for the nation. It has a rich organizational culture rooted in its core values of respect for people and belief in empowerment. Its philosophy of all-round value creation is backed by strong corporate governance policies and systems.
69
The results of this research offer a starting point to think about the actual work conditions and their changes in order to provide a basis for a higher motivation of employees. Not only differences and similarities in the work motivation and satisfaction of employees regarding certain individual characteristics, but also the reasons for that are examined in this study. Moreover, factors that have to be enhanced at work in order to increase the motivation and therefore the commitment toward the company are figured out and presented.
Similarities and differences regarding certain individual characteristics are shown and this knowledge can be used to motivate a group of employees, sharing the same individual characteristic, in the same way.
The use of quantitative as well as qualitative methods enabled me to investigate the problem under research in more depth and to increase the quality and the value of the research and its results. Thereby, the collection of the quantitative data and their analysis by the use of the mean count ensured objectivity and reliability of the research.
70
BIBLIOGRAPHY
Books
Cassell, C, and Symon, G. (1994): Qualitative Methods in Organizational Research: A Practical Guide, Sage Publications, London
Churchill, G. A., Jr. (1995): Marketing Research - Methodological Foundations, sixth edition, The Dryden Press, Fort Worth
Clarke, A., & Dawson, R. (1999): Evaluation Research: An introduction to Principles, Methods and Practice, Sage Publications, London
Deci, E. L. (1975): Intrinsic Motivation, Plenum Press, New York
Dessler, G. (1986): Organization Theory: Integrating Structure and Behavior, Second edition, Prentice Hall, Englewood Cliffs
Douglas, S. P. and Craig, C. S. (1983): International Marketing Research, Prentice Hall, Englewood Cliffs
71
http://www.itcportal.com/
http://www.itcportal.com/sets/itc-research-development.htm
http://www.itcportal.com/products-microsite/products.html
http://www.itcportal.com/sets/leadership_frameset.htm
http://economictimes.indiatimes.com/rssarticleshow/msid-3195390,prtpage-1.cms
http://economictimes.indiatimes.com/rssarticleshow/articleshow/3183056.cms
http://www.itcwelcomgroup.in/Hotels/itcmaurya.aspx
http://www.itcwelcomgroup.in/Others/OthersABT.aspx
http://www.itcwelcomgroup.in/Hotels/ITCMaurya.aspx?CS
http://www.itcportal.com/global_honours/global_honours.html - top#top
72
73
