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Qualification

Graduate Diploma in Management

Module Name

Project Proposal

Module Number

GDM 105

Project Title

Employee motivation and its impact on XYZ

organisation’s effectiveness.

Name of Candidate

R K V D Ranasinghe

Candidate No.

414021328

Submission Date

06

th

January 2014

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EMPLOYEE MOTIVATION AND ITS IMPACT

ON

XYZ ORGANISATION’S EFFECTIVENESS

R K V D RANASINGHE

Submitted to the

Business School

In partial fulfillment of the award of

Graduate Diploma in Management

Supervised By:

Chrishankar J

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TABLE OF CONTENTS

Contents

1.0 INTRODUCTION ... 4

1.1 Background to study... 4

1.2 Problem Statement ... 5

1.3 Problem Justification ... 5

1.3 Objectives ... 6

2.0 LITERATURE REVIEW ... 7

2.1 Introduction to key concepts ... 7

2.2 Historical background to the subject ... 7

2.3 Variables in this research ... 9

2.4 Growth and development ... 9

2.5 Working conditions ... 10

2.6 Empowerment ... 10

2.7 Pay package ... 10

2.8 Rewards and recognition ... 10

2.9 Job security ... 10

2.10 Analysis of findings at country level ... 10

3.0 METHODOLOGY ... 11

4.0 CONCLUSION AND RECOMMENDATION ... 12

5.0 REFERENCES ... 13

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CHAPTER 01

1.0

INTRODUCTION

1.1 Background to study

Majority of the organizations existing in the modern business world desires to be successful and strive for consistant progress. In order to achieve their objectives and for an organization to survive in the competitive market they should retain a superior competent work force which adds in greater value to the betterment and success of the organisation. As the researcher views it, if employees are unhappy or dissatisfied with the organization they will not provide their maximum commitment and dedication which will lead to low productivity and less revenue for the organisation. If the trend still continues there is a higher possibility for these employees to leave the organization. Hence, this research is an attempt to identify the factors which cause demotivation among non-managerial employees in a multinational company which is considered to be one of the subsidiary companies of a renowned multinational organization in the global banking industry.

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corrective actions are taken in order to eliminate negative impacts which it currently exposes.

Customers – Will receive excellent quality in the service that they receive from a highly motivated staff and turnaround time will be met at all instances ensuring nil customer complaints or compensation due to poor service.

Researchers & Students – This research will be beneficial to those who conduct their research studies in the similar theoretical areas as a valuable piece of secondary source.

Other organizations in the BPO industry of Sri Lanka- This research will provide fresh insights into the employee motivation al strategies in the BPO industry of Sri Lanka.

Entrepreneurs - This research will provide areas which need to be considered in order to keep the employee motivated which will result in higher turnover to the company, minimum level of attrition in the organization and loyal work force.

1.2 Problem Statement

Assessing the causes of demotivation among non-managerial employees; Case Study on XYZ Company, Sri Lanka

1.3 Problem Justification

The company is currently faced with a major problem of staff turnover, low productivity and low quality at work and low job satisfaction of staff at their work. These reasons are mainly due to the fact that the higher management is not paying the required levels of attention which needs to be given to the staff. Senior managers are more concerned about as to how to be more efficient and gain more profits which in turn will have tighter controls in place, higher targets on cost savings and employee efficiency.

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roles apart from processing and more work are delegated by the management with tight deadlines.

1.3 Objectives

The main objective of the study is to analyze the impact of employees’ motivation on organizational effectiveness.

The sub-objectives of the study are:

 To critically analyse the causes of demotivation among non-managerial employees in XYZ Company (Pvt) Limited, Sri Lanka.

 To carry out a comprehensive theoretical analysis over the key concepts of the study namely, motivation, job satisfaction, employee productivity, performance evaluation, employee retention and turnover.

 To understand the current motivational plan which has been undertaken by the Top Management of XYZ Company (Pvt) Limited in order to induce non managerial employees and their reactions toward the same.

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CHAPTER 02

2.0

LITERATURE REVIEW

2.1 Introduction to key concepts

As per Webster’s New Collegiate Dictionary, a motive is “something a need or desire that causes a person to act”. “Motivate, in turn, means “to provide with a motive,” and motivation is defined as “the act or process of motivating”. Consequently, motivation is the performance or procedure of presenting an intention that origin a person to capture some accomplishment (Shanks.N. H.). According to Butkus & Green (1999), motivation is derived from the word “motivate”, means to move, push or influence to proceed for fulfilling a want (Kalimullah et al, 2010).

An employee's performance typically is influenced by motivation, and it is a vital factor when it comes to any organization. Motivated staff provides the spark that an organization needs to gain the edge over competitors in the market. This is a proven fact in the business environment.

2.2 Historical background to the subject

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People get motivated for different reasons one might get motivated for the money or salary or another for the working environment. Each person is motivated to perform, yet each has different reasons for performing. Employee motivation affects productivity and manager`s job is to make sure that the staffs are motivated in order to achieve company’s goals and objectives. This is a vital part of manager`s job role as the person will be able to lead and control a team if they are good motivators where the staff will look up to him/her as a leader and will strive to achieve more.

When taking a look at the XYZ company, it is mainly focused on the monetary aspect and physiological needs are not been looked into by the senior management. To illustrate: a car engine may have all the components to run smoothly, but it would still sit Idle without fuel and a driver. By the same token, capacities may be in place, but appropriate incentives need to be present to put them in high gear and in motion toward the desired development destination. (Boesen, 2004, UNDP, 2006)

It is very easy for a staff to get demotivated in a challenging environment where there is a high demand to achieve the required targets within a tighter time scale. Managers in the organization need to understand that even though capacity plans are made, in order to complete the task human intervention is needed. Organization also should provide a clear cut goal so employees would understand their objectives and work towards it. It is impossible for any individual, or for that matter, any team or group of people, to be motivated without a clear and specific goal (Denny, no date). When looking at motivating staff it is advisable that both Intrinsic and Extrinsic factors are taken into consideration since those two factors play a major role in employee motivation in any organization.

An organization should come up with the proper strategies especially when it comes to motivating staff and in the case of XYZ company question lies whether the correct strategies are used in order to achieve desired results. A complete and thorough understanding of employees’ motivation is required for organizations to address and accomplish these expectations (Beer et al, 1984).

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indispensible strategy for motivating workers. One way managers can instigate motivation is to give appropriate information on the sentences of their actions on others (Adeyinka et al, 2007).

2.3 Variables in this research

Employee Motivation is the independent variable and will be examined through two of its factors, recognition and empowerment. The dependent variable is organizational effectiveness.

The variables which are considered in this research are as follows:

 Growth & development

 Working conditions

Empowerment

Pay packages

Rewards & recognition

Job security

2.4 Growth and development

Opportunity to growth and development is one of the main and important factors that employees consider. It is important to outline employees’ career paths with the company provide for internal growth as well as for future change.

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Better working conditions are also a part of employee motivation. Since the XZY Company (Pvt) Limited works on different shift timings catering to different jurisdictions around the globe, it is a very important fact for the employees as some will have to work in different working hours which at times clashes with the local working ours.

2.6 Empowerment

Empowering makes employees feel that they are appreciated and for making it

possible continuous and positive feedback on their performance is essential (Smith, B, 1997). At XZY Company (Pvt) Limited there seems to be less empowerment for the non-managerial staff therefore is a fact which impacts the motivation of the

employees.

2.7 Pay package

It is a common fact that the employees are highly motivated if they were given a good pay or compensation package which tally with the market rates. Due to the fact that, XZY Company (Pvt) Limited is a multinational organization, the salary levels are not compared with the other local companies in the same industry. This can be one of the main factors impacting the motivational level of the employees

2.8 Rewards and recognition

Employees do also expect recognition for their work when they provided hundred percent commitments to the organisation. Not recognising these exceptional performance will also highly demotivate the employees.

2.9 Job security

Job security is another important factor which employees look into. The nature of the job security of the XZY Company (Pvt) Limited will be looked at , in this research 2.10 Analysis of findings at country level

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CHAPTER 03

3.0

METHODOLOGY

In order to carry out the research random staff are to be selected who are in the category of Customer service Executive level in the hierarchy of XYZ Company (Pvt) Limited. An exploratory research design is to be developed for assessing the impact of different instruments of compensation on different work related issues that will be highlighted by the employees during interviews in response to open ended questions.

Random sample of individuals comprising of 50 Customer Service Executives who work with XYZ Company (Pvt) Limited will be chosen in order to carry out the survey as the company believes that higher motivation of these employees in the category of Customer Service Executives do lead the company towards profits and productivity with enhanced customer service. Unit of analysis will be mostly individual as the researcher will conduct individual meetings and distribute questionnaires with close ended questions among selected staff. The researcher will do a cross-sectional study and intends to gather data from January to March, 2014. The research approach concerned in the study is Pluralist which uses both qualitative and quantitative strategies. Grafton, Lillis and Mahama (2011, p.11) state that the importance of pluralist research is the “weaknesses in each individual method will be recompensed by the counter-balancing strengths of the other”. Thus, this approach can be undertaken to do a well- balanced study.

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CHAPTER 04

4.0

CONCLUSION AND RECOMMENDATION

Conclusion

XYZ Company Limited is currently facing employee turnover at an alarming rate, which could critically affect the performance of the organization as well as decrease its profit. Such could affect the quality and performance of the staff while hurting the organization’s performance in the long run, challenging its survival as a leading financial service provider in the financial market.

Recommendation

As per the analysis there can be a significant relationship between the identified factors of employee motivation. It is important for the company to make an attempt to increase the levels of motivation and minimize the employee turnover.

High employee turnover leads to high costs and non-productivity. Possible recommendation to the company based on the survey can be to improve the employee perception of the motivation factors which are as follows:

Facilitating Growth and Development

Offering better Working Conditions

Proliferation of better relationships among the staff

Providing lucrative Rewards and Paying proper Recognition

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5.0

REFERENCES

 Ambrose, M.L., Kulik, C.T. (1999). Old Friends, New Faces: Motivation Research in the 1990s. Journal of Management. 25 (3), 231–292.

 Iqbal, J., Yusaf, A., Munawar, R., Naheed, S. (July 2012). Employee motivation in modern organization: A review of 12 years. Interdisciplinary

journal of contemporary research in business. 4 (3), p1-17

 Salleh, F. (April 2011). The Effect of Motivation on Job Performance of State Government Employees in Malaysia. International Journal of Humanities and Social Science. 1 (4), p1-8

Incentive Systems: Incentives, Motivation, and Development Performance(

Nov2006). Available:

http://www.dk.undp.org/content/undp/en/home/librarypage/capacity- building/incentive-systems-incentives-motivation-and-development-performance-.html . (Accessed: 15 Dec 2013)

 Manzoor, Q. (2012). Impact of Employees Motivation on Organizational Effectiveness. Business Management and Strategy. 3 (1), p1-12.

 Wiley, C. (1997). What Motivates Employees According to Over 40 Years of Motivation Surveys. International Journal of Manpower. 18 (4), p263-281.

 Devadass, R. (2011). Employees Motivation in Organizations: An integrative literature review. International Conference on Sociality and Economics

Development. 10 (1), p1-5.

 Lunenburg, F.C. (2011). Expectancy Theory of Motivation: Motivating by Altering Expectations. International journal of management, business, and administration. 15 (1), p1-6.

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 Rodgers, G. (2008). IDS Bulletin. Institute of Development Studies. 39 (2), p66.

 Goddard, R. W. (1989), How to Reward the 80’s Employee. Public

Management, 71, p7-10.

 Gomez Meija, Luis R., Bakin, David B. and Cardy Robert (2004), Managing Human Resources, 4th Ed., p 12 -14

 Grafton, J. Lillis, M. and Mahama, H. (2011), Mixed methods research in accounting, Qualitative Research in Accounting & Management, 8 (1), p5 – 21

 Kovach, K. A. (1984), Why Motivational Theories Don’t Work, SAM

Advanced Management Journal, 45(2), 54-60.

 The law of motivation (no date), (Online) Available at:

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References

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