Case Studies on Motivation and Turnover Rate of Medical Promotion Officer

Description
Turnover is sometimes the name for a measure of how quickly inventory is sold (inventory turnover). A high turnover means that goods are sold quickly, while a low turnover means that goods are sold more slowly.

Asian Business Review, Volume 1, Issue 1, September 2012

ISSN 2304-2613

Factors Affecting Job Satisfaction, Motivation and Turnover Rate of Medical Promotion Officer (MPO) in Pharmaceutical Industry: A Study Based in Khulna City
Tanvir Alam, Shahi Md. 1
1

Distribution & Retail Sales, Grameenphone Limited, Khulna, Bangladesh

ABSTRACT
Due to the fast growing of the pharmaceutical sector, the demand of medicine is mostly fulfilled by the local industry. In the local market, the medicines are distributed and marketed by the Medical Promotion Officers (MPOs). The main objective of the study is to find out the job satisfaction, motivation and turnover factors of MPOs. Along with different reports, it is conducted direct field survey to the 40 (forty) MPOs of different pharmaceutical companies in the Khulna City. Likert Scale, based on five points, is used for data collecting. It is found that the most of the MPOs are not satisfied with their jobs and for this they are not motivated and for this their turnover tendency is high. The MPOs are dissatisfied with their job security, social status, working load, visit to retailers’ shop, sales target, no room for family, not getting the retirement benefit and not getting the family insurance support. And finally there is given suggestion by the force field analysis model for removing the restraining/negative forces factors for reducing the turnover rate. Also there is also mentioned the driving/positive forces factors for omitting the turnover rate. Keywords: Medical Promotion Officer (MPO); Job Satisfaction; Motivation; Turnover Factor; Force Field Analysis Model JEL Classification Code: M19

1 INTRODUCTION

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HARMACEUTICAL industry is a rapidly growing industry in Bangladesh. This industry is exporting its products to the foreign countries meeting the internal demand. This industry requires huge skilled and efficient manpower. Medical Promotion officers (MPOs) are the front liner for marketing any new product of the industry at the local competitive market. But there are observed huge turnover of MPOs due to lack of proper job satisfaction and lack of proper motivation. If the satisfaction factors can be detected- motivation can be increased then the turnover rate can be reduced. Job satisfaction is an employee’s thoughts and emotions towards their job and how they evaluate their job. This can be a judgment of their job overall, or of specific judgments such as pay, promotions, work tasks, co-workers and supervisors. Motivation is a basic psychological process. A recent data-based comprehensive analysis concluded that competitiveness problems appear to be largely motivational in nature (Mine Ebrahimi, and Wachtel, 1995). Along with perception, personality, attitudes, and learning, motivation is very important element of behavior. Nevertheless, motivation is not the only explanation of behavior. It interacts with and acts in conjunction with other cognitive process. Employee turnover occurs when employees leave their jobs and must be replaced. Replacing existing employees is costly to organizations and destructive to service delivery. It is there-

fore imperative for management to reduce, to the minimum, the frequency at which employees, particularly those that are crucial to its operations leave.

1.1 Job Satisfaction Definition Job satisfaction relates to employee’s personal evaluation of jobs against those issues that are essentially considerable to them. As emotions and feelings are involved in such assessments, employees’ levels of job satisfaction may impact significantly on their personal, social and work lives, and as such, also influence their behavior at work, (Sempane, Rieger and Roodt, 2002) 1.2 Job Satisfaction Factors Some studies (i.e. Bellenger, Wilcox & Ingram, 1984; Coster, 1992; Strydom & Meyer, 2002) have shown that there are various factors for job satisfaction. Such as job security, growth & development, promotion opportunities, working conditions, recognition of performance, financial rewards, position & status, decision making opportunity. According to Lawrence (2005) listed down the following ten representatives for job satisfaction: type of work, job security, company, advancement, coworkers, pay, supervision, hours, benefits & working conditions. Job Descriptive Index (JDI), created by Smith, Kendall & Hulin (1969) measured five facets for job satisfaction: pay, promotion & promotion opportunities, coworkers, supervision and the work itself.
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Asian Business Review, Volume 1, Issue 1, September 2012

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1.3 Motivation Definition According to Pinder (1998 in Ambrose & Kulik, 1999) work motivation may be regarded as a set of internal and external forces that initiate work-related behavior, and determine its form, direction, intensity and duration. The concept relates to the work context specifically, and includes the influence on work behavior of both environmental forces, and those inherent in the person. In the workplace, work motivation presents as an invisible, personal and hypothetical construct that manifests itself in the form of observable, and therefore measurable, behaviors. 1.4 Motivation Factors Maslow suggested that there exists a hierarchy of human needs, commencing with physiological needs then safety, social, esteem and at last self actualization need. Maslow’s theory says, there are some important implications for management. There are opportunities to motivate employees and provide employees job satisfaction through management style, job design, company events and compensation packages. Physiological needs provide lunch breaks, rest breaks and wages that are sufficient to purchase the essentials of life. Safety needs provide a safe working environment, retirement benefits and job security. Social needs create a sense of community via team-based projects and social events. Esteem needs recognize achievements to make employers feel appreciated and valued. Offer job titles that convey the importance of the position. Selfactualization provides employees a challenge and the opportunity to reach their full career potential. Frederick Herzberg found the factors causing job satisfaction- achievement, recognition, work itself, responsibility, advancement & growth. And the factors which leads to dissatisfaction are company policy, supervision, relationship with Boss, work condition, salary, relationship with coworkers. Removing these dissatisfactions may create a high level of motivation. 1.5 Relation between Motivation and Job Satisfaction Brown and Shepherd (1997) who reported that motivation improves workers’ job satisfaction. This is also agreed with Chess (1994) reported that certain motivational factors contribute to the prediction of job satisfaction. Those are- salary, wages and conditions of service; money; staff training; information availability and communication. 1.6 Turnover Definition Employee turnover occurs when employees leave their jobs and must be replaced. Replacing existing employees is costly to organizations and destructive to service delivery. It is therefore imperative for management to reduce, to the minimum, the frequency at which employees, particularly those that are crucial to its operations leave. Retention is a voluntary move by an organization to create an environment which engages employees for long term (Chaminade, 2007).
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1.7 Turnover Cost Employers have a need to keep employee from leaving and going to work for other organizations. The best way of retaining employees is to provide the job satisfaction and opportunities to up employees’ careers (Eskildesen, Hammer, 2004). There is positive relation between employee motivation and turnover. Employees may stay longer with organizations if they are well paid and motivated (Dalton & Todor, 1982 as cited in Hong & Chao 2007, p.216). Turnover costs are extremely high, and often highly underestimated. Nevertheless, much effort has been devoted to understanding why people leave their jobs. One of the many different models available for conceptualizing turnover sees job satisfaction as the precursor to ‘withdrawal’ cognition (that is, thoughts of leaving, search decisions and intentions to quit). There is a negative relationship between job satisfaction and turnover ( Smither, 1994: 254-258). 1.8 Factors of Employee Turnover Abassi and Hollman, 2000; Hewitts Associates, 2006; Sherman et al. 2006 highlights reasons for employee turnover in the organizations: hiring practices, managerial style, lack of recognition, lack of competitive compensation system, toxic workplace environments. Others include lack of interesting work, lack of job security, lack of promotion and inadequate training and development opportunities, amongst others. These are intrinsic and extrinsic motivational factors which can assists mangers to influence employee retention in their organizations. 1.9 Relation between Job Satisfaction and Employee Turnover Job satisfaction is very important in that its absence often leads to lethargy and reduced organizational commitment. Lack of job satisfaction is a predictor of quitting a job (Alexander, Litchtenstein, Hellmann and Jamal, 1997). Satisfaction on a job might be motivated by the nature of the job, its pervasive social climate and extent to which workers peculiar needs are met. Working conditions that are similar to local and international standard and extent to which they resemble work conditions of other professions in the locality. Other inclusions are the availability of power and status, pay satisfaction, promotion opportunities and task clarity. If any employee is not being motivated by the factors, quitting tendency is observed (Bolarin, 1993; Gemenxhenandez, Max, Kosier, Paradiso and Robinson, 1997). 1.10 Relation Among Job Satisfaction, Motivation and Turnover Correlation exists among perceived work motivation, job satisfaction and staying length of employees in the organization corresponds with (Brown and Shepherd, 1997) who reported that motivation improves workers’ job satisfaction. Woer reported that some motivational factors contribute to the finding of
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Asian Business Review, Volume 1, Issue 1, September 2012

ISSN 2304-2613

job satisfaction. Tang and LiPing (1999) report that a relationship exists between job satisfaction and employee turnover. Furthermore, Stokes, Riger and Sullivan’s (1995) report that motivation relates to job satisfaction and even intention to stay the firm. Due to the lack of proper job satisfaction, there is observed the lack age of motivation among the organizational employees. As there is observed lacking of motivation, the high turnover is occurred (Mael and Ashforth, 1992; Meyer and Allen, 1997; Meyer, Stanly, Herscovitch and Topolnytsky, 2002). High job satisfaction creates the high level of motivation among the employees. And high level of motivation intents to the lower level of turnover (Abraham, Ando and Hinkle, 1998; Mael and Ashforth, 1995; Ellemers, Spears and Doosje, 1997; Wan-Huggins, Riordan and Griffeth, 1998). From the above discussion, we have considered the following ten factors for preparing the questionnaire for the research work. Those are: 1. Status 2. Working condition 3. Job security 4. Salary 5. Technical supervision 6. Personal life 7. Inter-personal relations with supervisor, peers and subordinates 8. Company Policy and administration 9. Benefits 10. Job switching

2.5 Sample Size 40 MPOs of the Square Pharmaceuticals Ltd., Beximco Pharmaceuticals Ltd., Orion Pharmaceuticals Ltd., ACI Pharmaceuticals Ltd, Sarif Pharmaceuticals Ltd., Delta Pharma Ltd., Aristo Pharma Ltd. and Incepta Pharmaceuticals Ltd. 2.6 Sampling Procedure Simple random sampling is used (a technique of probability sample) to select respondents. 2.7 Instrument Used for Data Collection A “Likert Scale” based on five points is used for collecting and analyzing the questionnaire Neutral Agree Strongly Strongly Disagree Disagree Agree 1 2 3 4 5 Web portal, company reports provided by Human Resource Department and other secondary database has been collected from various secondary data sources. 2.8 Model Used Force field analysis model has been used. 2.9 Data Analysis Standard editing and coding procedures has been maintained in this stage. Collected primary data are being tabulated and analyzed according the demand of the research objectives with the help of different statistical tools. In the questionnaire, there will be close-ended questions to measure the factors job satisfaction, motivation and turnover rate of the employees of Square, Beximco and Orion Pharmaceutical. There is used 05 (Five) points Likert Scale (which is mentioned early). Getting points, it is found out mean, median and standard deviation through the MS Excel.

2 MATERIALS AND METHODS
To accomplish the research objectives, the data for the research have been collected from both primary and secondary sources. This is a quantitative research study that has uncovered the job satisfaction level of employees, motivation and employee turnover of Medical Promotion Officer (MPO) in Pharmaceutical Industry.

3. RESULTS
According the data analysis and interpretation, the most job satisfying factors of the MPOs are: Company reputation of the respective MPO; i.e. the MPOs are satisfied with their respective company name and fame. Safe working condition; i.e. the risk factors are low Comfortibility for visiting doctors’ chamber; i.e. the respondents get god behave from the doctors Transportation support for official purposes; i.e. the respondents get motor bike from the company for their field visit. The MPOs enjoy the flexible working hour; i.e. the respondents have no routine office hour. The MPOs are satisfied for getting the constructive and positive feedback from the respective supervisor. Company recognition for any job related achievement; i.e. company recognizes the respondents’ any achievement or any special assignment. Page 128

2.1 Secondary Data It consists of published and reported materials which are already collected or preserved by someone. It also has been collected through web portals, company’s published reports, papers and documents. 2.2 Primary Data Primary data has been collected through formal interview. 2.3 Target Source The target source for the research are 40 MPOs of the Square Pharmaceuticals Ltd., Beximco Pharmaceuticals Ltd., Orion Pharmaceuticals Ltd., ACI Pharmaceuticals Ltd, Sarif Pharmaceuticals Ltd., Delta Pharma Ltd., Aristo Pharma Ltd. and Incepta Pharmaceuticals Ltd. 2.4 Population The MPOs who are working in the Khulna City.

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Asian Business Review, Volume 1, Issue 1, September 2012

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Health insurance benefit; i.e. the respondents get health insurance for their own from the respective company. Side by side there are some most dissatisfying factors which are encouraging the MPOs for job dissatisfaction that tends to demotivation to the MPOs that tends to huge turnover of the pharmaceutical industries. The factors are: The Medical Promotion Officers do feel job insecurity most of the time. Not getting the retirement benefit; i.e. the company policy does not support the provident fund or any hand sum amount at the time of quitting job. The Medical Promotion Officer profession is not been socially honored. Workload is not comfortable to the MPOs; i.e. the working pressure is excess. The MPOs do not get the good behavior visiting at the retail shop. In the high competitive market, the sales target is extremely unachievable. And this is one of the strong reasons for job insecurity. There is no room for family for the MPOs due the high stress sales target and long working hour. The MPOs deal with the medicine, but the family members of MPOs do not get the health insurance from the respective company. Moreover, there are found some neutral or mixed comments of the respondents. In other words, the MPOs are neither motivated nor demotivated by the factors. The factors are: The MPOs have delivered their neutral opinion about the monthly take home salary. Incentive policy of the companies; i.e. the incentive policy in not very much lucrative. Monthly bike incentive policy is neither satisfactory nor dissatisfactory. Availing of yearly leave; i.e. there is provision of yearly leave but the respondents are not able to avail it due to workload. Peers cooperation does neither motivate nor demotivate the MPOs. Some pharmaceuticals companies have future career and some have not. So, here the MPOs are neutral. Participation in the company decision making policy. In the sufficient policy for future career path, the respondents have neutral position. Table 1: Factor-wise Weighted Score Calculation of the respondents Insert Table 1 here

lematic situation and planning corrective actions for the organization. This technique lies on various assumptions: the present state of things (the current condition) is a quasi-stationary equilibrium representing a resultant in a field of opposing forces. A desired future state of affairs (the desired condition) can only be achieved by dislodging the current equilibrium, moving it to the desired state and stabilizing the equilibrium at that point. For moving the current equilibrium level to the desired equilibrium level, the field forces have to be altered- by adding driving forces or by abolishing restraining forces. The problematic situations of the MPOs are job security, lack of social honor, excess workload, behavior problem of the retailers’, unachievable sales target, no room for family, no provision of retirement benefit and lack of family insurance policy. For reducing the turnover rate and motivating the MPOs by job satisfaction, the driving (or positive) forces through the corrective actions may be: The security of ‘having the job’. Because the MPOs are always in the tension of ‘not having the job’ Ensuring retirement benefit or ensuring the provident fund facility. Such as an MPO’s provident fund will mature after 03 (three) years Family insurance policy or group insurance policy can be a driving force. Incentive policy or performance allowance is needed to revise. In this sector, the MPOs have dissatisfaction Holiday should be holiday and it should be ensured for the family members. Mandatory yearly leave availing can be ensured For reducing the turnover rate and motivating the MPOs by job satisfaction, the restraining (or negative) forces may be: Unambiguous or unclear career path should be removed for giving the job satisfaction to the MPOs. Unsatisfactory monthly take home salary is needed to increase. Insufficient training for the future career path. Low moral of the employees in the company, attitudes towards the peers is non- cooperative. Unachievable monthly sales target. Painful workload.

4. ACKNOWLEDGEMENT
First of all I would like to give thanks and my heartiest gratefulness to the almighty ALLAH who has given me the opportunity for completing the Evening MBA program from Khulna University and doing the this research for fulfillment my program. Then I would like to convey my sincere gratitude and thanks from the core of my heart to my honorable supervisor Mr. Sarif Mohammad Khan, Assistant Professor, Business Administration Discipline, Khulna University, Khulna for his wise and proper guidance in Page 129

3.1 RECOMMENDATIONS
As the oldest intervention in the organizational development practioner’s kit bag, the Force Field Analysis model is used. It is a device for understanding a probCopyright © 2012, Asian Business Consortium | ABR

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the study time. Perhaps it would become tough for me to do the study without his directive support. Then I would like to give thanks and my gratitude to the honorable Coordinator Sir and other teachers of the EMBA program for their suggestions in different time.Special thanks to the respondents of the study who have given their valuable time for me. Finally, I would like to give thanks to my classmates for giving me different suggestions in different times.

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Table 1: Factor-wise Weighted Score Calculation of the respondents Total Number Value Company Reputation 170 Social Honor 88 Safe working condition 134 Comfortable workload 86 Doctor's Behavior 139 Retailer's Behavior 90 Sales Target 85 Working Hour Flexibility 153 Job Security 89 Salary Satisfaction 116 Incentive Feasibility 101 Transportation Support 162 Bike Incentive 126 Providing time to Family 47 Availing Yearly Leave 100 Support from Supervisor 145 Cooperation from Colleagues 107 Clear Career Path 119 Participation in Company Decision Making 115 Sufficient Training Policy 108 Company Recognition 149 Retirement Benefit 46 Insurance Benefit 176 Family Insurance Benefit 54 Job Switch Tendency 145 Source: Data collected from primary sources Standard Median Deviation 4.00 2.00 4.00 2.00 4.00 2.00 2.00 4.00 2.00 3.00 3.00 4.00 3.00 1.00 3.00 4.00 3.00 3.00 3.00 3.00 4.00 1.00 5.00 2.00 4.00 0.5477 0.9747 1.0488 0.6325 0.9354 1 0.9083 0.9618 0.8803 0.8062 1.0124 1.0488 1.0488 0.4183 1.1726 0.9618 1.1937 0.9874 0.9874 1.118 0.9083 0.3873 0.9487 0.8062 0.9354

Factors Status

Mean 4.25 2.2 3.35 2.15 3.475 2.25 2.125 3.825 2.225 2.9 2.525 4.05 3.15 1.175 2.5 3.625 2.675 2.975 2.875 2.7 3.725 1.15 4.4 1.35 3.625

Working Condition

Job Security Salary Technical Supervision Personal Life Inter-personal Relation

Policy and Administration

Benefits Job Switching

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