Description
The documentation explains the significance of motivating employees in the organization.
Motivation @ Organizations
TABLE OF CONTENTS
MOTIVATION ....................................................................................................................................3 CLASSIFICATION OF MOTIVATION ....................................................................................................3 SECTOR CHOSEN FOR STUDY ............................................................................................................5 Highlights of the Indian IT industry ..............................................................................................5 Study Methodology ......................................................................................................................5 Classification by Age and region of Origin ....................................................................................7 Various Theories of Motivation ..................................................................................................... 10 1.Maslow’s Hierarchy of Needs ................................................................................................. 10 2.Herzberg’s Motivation-Hygiene theory .................................................................................. 11 THE DRIVERS AND ORGANIZATION LEVERS OF MOTIVATION ...................................................... 14 SURVEY ANALYSIS – DETERMINATION OF THE LEVELS OF THE DRIVERS OF MOTIVATION .......... 16
MOTIVATION
Motivation is a desire to achieve a goal, combined with the energy to work towards that goal. It is the creation of stimuli, incentives, and working environments which enable people to perform to the best of their ability in pursuit of organizational success. Performance = f(Ability)(Motivation) Performance can be defined as the function of ability and motivation. Ability depends on education, experience, and training and its enhancement is a slow and long process. On the other hand motivation can be improved quickly and that in turn increases the performance of the individual manifold. CLASSIFICATION OF MOTIVATION
Motivation can be classified as follows ? Positive and Negative ? Intrinsic and Extrinsic
Intrinsic Motivation: Intrinsic motivation refers to the motivation that comes from inside an individual rather than from any external or outside rewards, such as money and grades The motivation comes from pleasure one gets from the task itself or from the sense of satisfaction in completing or even working on a task. for e.g. an intrinsically motivated person will work on a math equation because he finds it enjoyable. However the person does not work on the task because there is some reward involved but because he is simply motivated to complete the task. Extrinsic Motivation: Extrinsic motivation refers to the motivation that comes from outside an individual. The external rewards will provide the individual with satisfaction and pleasure which the task itself might not provide. An extrinsically motivated person will work on a particular task even though he has little interest in it with the anticipation that he will get some reward on the successful completion of the task. The rewards which might motivate a person maybe something minor or major. For e.g. an extrinsically motivated student who dislikes math may work on a particular problem because he anticipates a reward on the successful completion of that problem. The reward in this case maybe good grade in this case. Positive Motivation: Positive motivation is a factor which plays a role in improving your performance in a task you are involved in . for e.g. in sport, primary motivation plays an important role in the performance of an athlete. A series of continuously good performances will act as source of primary positive motivation and a supportive audience will act as a secondary positive motivation. Negative Motivation: Negative motivation is a factor which plays a role in causing detrimental effect on your performance due to internal or external factors. For e.g., in sport, negative motivation might cause a considerable dip in the performance of an athlete. A series of bad performance acts a primary negative motivation and an audience heckling can act as a secondary negative motivation.
SECTOR CHOSEN FOR STUDY
The IT sector was chosen as the area of study on motivation because it is one of the largest employers in the country today and most of us have some direct or indirect relation to this sector. This sector has placed India firmly on the global map and provided an employment opportunity to large number of youngsters. So it was decided to study the motivation factors for the employees working in this organization.
Highlights of the Indian IT industry ? ?
It has grown its revenues ten fold in the past decade, from $4.8 billion in FY 1997-98 to $47.8 billion in FY 2006-07. It has emerged as the largest employers in the last decade and employs around 1.6 million people
?
Its contribution to GDP is estimated to have grown from 1.2 percent to 5.4 percent in the same period.
?
On course to achieve an exports target of $60 billion by 2010. - NASSCOM Strategic Review 2007
Study Methodology
The study was conducted by preparing a questionnaire and determining the response of the IT engineers who were working in different organizations and also who were from the different parts of the country.
The questionnaire floated to the IT engineers is as follows
Based on the responses received the workforce classification was done which is as shown in the charts given below
Classification by Age and region of Origin
14% 38% 23 24 25 26
Classification by Age and region of Origin
29%
Classification by Age and region of Origin Classification by Age and region of Origin 19%
SOUTH
WEST
EAST
NORTH
0
2
4
6
8
10
12
The commonly used motivation techniques used in the IT industry is as follows ? Spot Award ? Compensation review according to performance ? Onsite opportunity ? Compensatory leaves ? Flexible timings ? Project party
The aspirations of the employees in the IT industry ? Profile Flexibility ? Choice of Workplace location ? Integrated Higher educational programs ? Group motivational exercises ? Growth ? Good Projects Hierarchy prevalent in the Indian IT industry and the nature and content of the job of the employees working in the IT industry are as follows:
Delivery Manager
Senior Project Manager
Project Manager Development Business Analyst Testing Support Software Engineer Maintenance
Delivery Manager: The delivery manager is responsible for interacting with the clients on the behalf of the company. He is one who negotiates with the clients to get the project to the company. Senior Project Manager: The senior project manager is responsible for the high level design and architecture and also to ensure the timeliness and quality of the deliverable to the client. Project Manager: He mainly deals with the billing of the employees who are working under him and also works with the business analyst to estimate the time required for performing a particular task. Business Analyst: The business analyst also referred to as the technical team leaders in some other companies is responsible for resolving any technical issues that the employees working under him might face. He is also responsible for scheduling and allocation of the work to the employees.
Software Engineers: Software engineers form a major chunk of the population working in the organization. The different profiles on which they work are as follows ? Development: This profile involves the development of application and software which are to be delivered to the client. ? Testing: This profile involves the testing the application or software which has been developed by the development team. It involves finding and reporting of bugs in the application. ? Support: This profile involves supporting the end users after the system has been deployed. The people involved may have to work on shifts depending on the clients they support. ? Maintenance: This profile involves maintaining the application after system has been deployed. They usually work on the change requirements which the customer might want to incorporate in the real system.
Various Theories of Motivation
1. Maslow’s Hierarchy of Needs
This theory was developed by psychologist Abraham Maslow in 1940s. This model has been applied to in almost every human pursuit, from marketing products to rehabilitating prison inmates. Maslow’s hierarchy of needs is often depicted as a pyramid consisting of five levels: the first four levels are grouped together as being associated with psychological needs, while the top level is termed growth needs associated with psychological needs. The higher needs in the pyramid come into picture only when all the lower needs are satisfied. Once an individual moves upwards to the next level, needs in the lower level will no longer be prioritized. Psychological needs: These are the basic human needs such as food, water, sleep, breathing etc. Psychological needs can control thoughts and behaviors and cause people to feel sickness, pain and discomfort.
Safety needs: When the psychological needs are reasonably well satisfied, the individual’s safety needs take over and dominate a person’s behavior. These needs are to
do with people’s yearning for a predictable, orderly world in which the injustice and inconsistency are under control. The safety and security needs include security of body, employment, resources, family, health and property. Social needs: After the psychological and security needs of the human beings are satisfied, the third layer of human needs is social. They social needs include the friendship and family. Human beings need a sense of belonging and acceptance. In the absence of these elements, they become susceptible to loneliness, social anxiety and clinical depression. Esteem needs: All human beings have a need to be respected, to have self esteem, selfrespect, and to respect others. Imbalances in this need can result in low self esteem and inferiority complexes. People need to engage themselves to gain recognition and have an activity that gives the person a sense of contribution and to feel accepted and self valued. Self actualization needs: These needs represent the needs for self-fulfillment- a sense that a person’s potential has been realized. Unlike the lower needs this need may never be satisfied. Self actualized needs include morality, creativity, spontaneity, problem solving etc. 2. Herzberg’s Motivation-Hygiene theory
The theory also known as the two factor theory feels that the people are influenced by two factors namely
Satisfaction: This is primarily the result of the motivation factors. These factors help to increase satisfaction but have little effect on dissatisfaction Dissatisfaction: This is primarily the result of hygiene factors. These factors if absent of inadequate cause dissatisfaction but their presence has little effect on long term satisfaction. The motivator factors are achievement, recognition, work itself, responsibility, promotion and growth. The hygiene factors are pay and benefits, company policy and administration, relationships, physical environment, status and job security. On the basis of the questionnaire which we had circulated we were able to relate the responses to these three theories. The result from the responses is as follows
By relating the needs to the Maslow’s theory, the conclusion was ? Interesting work, tactful discipline fall under self actualization needs
?
Promotion and growth in organization, full appreciation of work done, personal loyalty to employees and sympathetic help with personal problems fall under esteem needs
? ? ?
A feeling of being in on things fall under the social needs Good working conditions, job security fall under the safety needs Good wages fall under psychological needs
Now on the basis of consolidated ranking of these factors we have come to a conclusion that the basic physiological, safety and love belonging needs are more or less satisfied to a large extent as these have been given low ranking. The factors which are given prime importance or which lie in the high ranking are usually in the esteem level or self actualization level.
By relating the needs to the ERG theory, the conclusion was ? A feeling of being in on things, sympathetic help with personal problems, good wages come under existence needs ? Job security, full appreciation of work done, personal loyalty to employees, personal loyalty to employees come under relatedness needs ? Promotion and growth in organization, Good working conditions, Interesting work come under growth needs Similar to the conclusion made in the case of Maslow’s theory, most of the factors that lie in the Existence needs and relatedness needs are satisfied. The factors which lie in the growth needs are the most sought after by the engineers, as these are ranked among the top.
By relating the needs to the two factor theory, the conclusion was ? Interesting work and promotion and growth in the organization were intrinsic needs ? The rest were are extrinsic needs
By the two factor theory we analyzed that the there is a preference of absence of dissatisfaction factors, as well as the presence of satisfaction factors. But there are a large number of extrinsic factors in our survey and they are the base and needs to fulfilled first.
THE DRIVERS AND ORGANIZATION LEVERS OF MOTIVATION
The above four drives play an important role in structuring the motivation levels in an organization.
Drive to acquire: Human beings are driven to acquire something which is scarce. They become happy when their which is fulfilled or get dejected when it is not. The primary lever is basically the reward system wherein the employees wish to see their reward being linked to the performance, pay them as well as the competitors and also to differentiate good performers from average and poor performers. Drive to bond: The drive to bond is associated with strong positive emotions like love and caring. It results in an enormous surge in motivation when the employees are proud of belonging to the company but at the same time there is a loss in morale if the company betrays them. The primary lever is basically the culture in the organization wherein employees value collaboration and team work and wish to share best practices with the other members of the team and the organization. Drive to comprehend: The drive to comprehend is all about making meaningful contribution. Employees are motivated by the challenging job given to them and are demoralized if their job becomes monotonous. The primary lever is basically the design of the job wherein the employees want the jobs to be designed in such a way that it is meaningful and gives the employee a feeling of having contributed to the organization. Drive to defend: The drive to defend is about defending yourself from the external threats. The employees try to defend their accomplishments, ideas from the external threats. The primary lever is performance management and resource allocation where it is necessary for the organization to be more transparent in their operations and building trust with the employees.
SURVEY ANALYSIS – DETERMINATION OF THE LEVELS OF THE DRIVERS OF MOTIVATION
As is clear from the screenshots of the analysis carried over the survey, following are key points that emerged for the IT sector ? Nearly 80% of the employees surveyed here were satisfied with the way the reward system was being handled by their respective company. ? The most satisfying drive and primary lever emerged out to be bond and culture respectively. More than 95% of the respondents said that they were able to foster mutual reliance and friendship among co-workers, shared best practices and valued team collaboration. ? As is expected by most from the IT sector, the most dissatisfying lever turns out to be Job Design from the survey. A mere 40% seem to be satisfied with the importance of their job in the organization, their work life balance and the intellectual stimulation offered by their job. ? A fair amount of dissatisfaction was also observed in the way performance management and resource allocation happens in the firms where the processes do not seem to be transparent and fair and plagued by politics.
doc_578578237.doc
The documentation explains the significance of motivating employees in the organization.
Motivation @ Organizations
TABLE OF CONTENTS
MOTIVATION ....................................................................................................................................3 CLASSIFICATION OF MOTIVATION ....................................................................................................3 SECTOR CHOSEN FOR STUDY ............................................................................................................5 Highlights of the Indian IT industry ..............................................................................................5 Study Methodology ......................................................................................................................5 Classification by Age and region of Origin ....................................................................................7 Various Theories of Motivation ..................................................................................................... 10 1.Maslow’s Hierarchy of Needs ................................................................................................. 10 2.Herzberg’s Motivation-Hygiene theory .................................................................................. 11 THE DRIVERS AND ORGANIZATION LEVERS OF MOTIVATION ...................................................... 14 SURVEY ANALYSIS – DETERMINATION OF THE LEVELS OF THE DRIVERS OF MOTIVATION .......... 16
MOTIVATION
Motivation is a desire to achieve a goal, combined with the energy to work towards that goal. It is the creation of stimuli, incentives, and working environments which enable people to perform to the best of their ability in pursuit of organizational success. Performance = f(Ability)(Motivation) Performance can be defined as the function of ability and motivation. Ability depends on education, experience, and training and its enhancement is a slow and long process. On the other hand motivation can be improved quickly and that in turn increases the performance of the individual manifold. CLASSIFICATION OF MOTIVATION
Motivation can be classified as follows ? Positive and Negative ? Intrinsic and Extrinsic
Intrinsic Motivation: Intrinsic motivation refers to the motivation that comes from inside an individual rather than from any external or outside rewards, such as money and grades The motivation comes from pleasure one gets from the task itself or from the sense of satisfaction in completing or even working on a task. for e.g. an intrinsically motivated person will work on a math equation because he finds it enjoyable. However the person does not work on the task because there is some reward involved but because he is simply motivated to complete the task. Extrinsic Motivation: Extrinsic motivation refers to the motivation that comes from outside an individual. The external rewards will provide the individual with satisfaction and pleasure which the task itself might not provide. An extrinsically motivated person will work on a particular task even though he has little interest in it with the anticipation that he will get some reward on the successful completion of the task. The rewards which might motivate a person maybe something minor or major. For e.g. an extrinsically motivated student who dislikes math may work on a particular problem because he anticipates a reward on the successful completion of that problem. The reward in this case maybe good grade in this case. Positive Motivation: Positive motivation is a factor which plays a role in improving your performance in a task you are involved in . for e.g. in sport, primary motivation plays an important role in the performance of an athlete. A series of continuously good performances will act as source of primary positive motivation and a supportive audience will act as a secondary positive motivation. Negative Motivation: Negative motivation is a factor which plays a role in causing detrimental effect on your performance due to internal or external factors. For e.g., in sport, negative motivation might cause a considerable dip in the performance of an athlete. A series of bad performance acts a primary negative motivation and an audience heckling can act as a secondary negative motivation.
SECTOR CHOSEN FOR STUDY
The IT sector was chosen as the area of study on motivation because it is one of the largest employers in the country today and most of us have some direct or indirect relation to this sector. This sector has placed India firmly on the global map and provided an employment opportunity to large number of youngsters. So it was decided to study the motivation factors for the employees working in this organization.
Highlights of the Indian IT industry ? ?
It has grown its revenues ten fold in the past decade, from $4.8 billion in FY 1997-98 to $47.8 billion in FY 2006-07. It has emerged as the largest employers in the last decade and employs around 1.6 million people
?
Its contribution to GDP is estimated to have grown from 1.2 percent to 5.4 percent in the same period.
?
On course to achieve an exports target of $60 billion by 2010. - NASSCOM Strategic Review 2007
Study Methodology
The study was conducted by preparing a questionnaire and determining the response of the IT engineers who were working in different organizations and also who were from the different parts of the country.
The questionnaire floated to the IT engineers is as follows
Based on the responses received the workforce classification was done which is as shown in the charts given below
Classification by Age and region of Origin
14% 38% 23 24 25 26
Classification by Age and region of Origin
29%
Classification by Age and region of Origin Classification by Age and region of Origin 19%
SOUTH
WEST
EAST
NORTH
0
2
4
6
8
10
12
The commonly used motivation techniques used in the IT industry is as follows ? Spot Award ? Compensation review according to performance ? Onsite opportunity ? Compensatory leaves ? Flexible timings ? Project party
The aspirations of the employees in the IT industry ? Profile Flexibility ? Choice of Workplace location ? Integrated Higher educational programs ? Group motivational exercises ? Growth ? Good Projects Hierarchy prevalent in the Indian IT industry and the nature and content of the job of the employees working in the IT industry are as follows:
Delivery Manager
Senior Project Manager
Project Manager Development Business Analyst Testing Support Software Engineer Maintenance
Delivery Manager: The delivery manager is responsible for interacting with the clients on the behalf of the company. He is one who negotiates with the clients to get the project to the company. Senior Project Manager: The senior project manager is responsible for the high level design and architecture and also to ensure the timeliness and quality of the deliverable to the client. Project Manager: He mainly deals with the billing of the employees who are working under him and also works with the business analyst to estimate the time required for performing a particular task. Business Analyst: The business analyst also referred to as the technical team leaders in some other companies is responsible for resolving any technical issues that the employees working under him might face. He is also responsible for scheduling and allocation of the work to the employees.
Software Engineers: Software engineers form a major chunk of the population working in the organization. The different profiles on which they work are as follows ? Development: This profile involves the development of application and software which are to be delivered to the client. ? Testing: This profile involves the testing the application or software which has been developed by the development team. It involves finding and reporting of bugs in the application. ? Support: This profile involves supporting the end users after the system has been deployed. The people involved may have to work on shifts depending on the clients they support. ? Maintenance: This profile involves maintaining the application after system has been deployed. They usually work on the change requirements which the customer might want to incorporate in the real system.
Various Theories of Motivation
1. Maslow’s Hierarchy of Needs
This theory was developed by psychologist Abraham Maslow in 1940s. This model has been applied to in almost every human pursuit, from marketing products to rehabilitating prison inmates. Maslow’s hierarchy of needs is often depicted as a pyramid consisting of five levels: the first four levels are grouped together as being associated with psychological needs, while the top level is termed growth needs associated with psychological needs. The higher needs in the pyramid come into picture only when all the lower needs are satisfied. Once an individual moves upwards to the next level, needs in the lower level will no longer be prioritized. Psychological needs: These are the basic human needs such as food, water, sleep, breathing etc. Psychological needs can control thoughts and behaviors and cause people to feel sickness, pain and discomfort.
Safety needs: When the psychological needs are reasonably well satisfied, the individual’s safety needs take over and dominate a person’s behavior. These needs are to
do with people’s yearning for a predictable, orderly world in which the injustice and inconsistency are under control. The safety and security needs include security of body, employment, resources, family, health and property. Social needs: After the psychological and security needs of the human beings are satisfied, the third layer of human needs is social. They social needs include the friendship and family. Human beings need a sense of belonging and acceptance. In the absence of these elements, they become susceptible to loneliness, social anxiety and clinical depression. Esteem needs: All human beings have a need to be respected, to have self esteem, selfrespect, and to respect others. Imbalances in this need can result in low self esteem and inferiority complexes. People need to engage themselves to gain recognition and have an activity that gives the person a sense of contribution and to feel accepted and self valued. Self actualization needs: These needs represent the needs for self-fulfillment- a sense that a person’s potential has been realized. Unlike the lower needs this need may never be satisfied. Self actualized needs include morality, creativity, spontaneity, problem solving etc. 2. Herzberg’s Motivation-Hygiene theory
The theory also known as the two factor theory feels that the people are influenced by two factors namely
Satisfaction: This is primarily the result of the motivation factors. These factors help to increase satisfaction but have little effect on dissatisfaction Dissatisfaction: This is primarily the result of hygiene factors. These factors if absent of inadequate cause dissatisfaction but their presence has little effect on long term satisfaction. The motivator factors are achievement, recognition, work itself, responsibility, promotion and growth. The hygiene factors are pay and benefits, company policy and administration, relationships, physical environment, status and job security. On the basis of the questionnaire which we had circulated we were able to relate the responses to these three theories. The result from the responses is as follows
By relating the needs to the Maslow’s theory, the conclusion was ? Interesting work, tactful discipline fall under self actualization needs
?
Promotion and growth in organization, full appreciation of work done, personal loyalty to employees and sympathetic help with personal problems fall under esteem needs
? ? ?
A feeling of being in on things fall under the social needs Good working conditions, job security fall under the safety needs Good wages fall under psychological needs
Now on the basis of consolidated ranking of these factors we have come to a conclusion that the basic physiological, safety and love belonging needs are more or less satisfied to a large extent as these have been given low ranking. The factors which are given prime importance or which lie in the high ranking are usually in the esteem level or self actualization level.
By relating the needs to the ERG theory, the conclusion was ? A feeling of being in on things, sympathetic help with personal problems, good wages come under existence needs ? Job security, full appreciation of work done, personal loyalty to employees, personal loyalty to employees come under relatedness needs ? Promotion and growth in organization, Good working conditions, Interesting work come under growth needs Similar to the conclusion made in the case of Maslow’s theory, most of the factors that lie in the Existence needs and relatedness needs are satisfied. The factors which lie in the growth needs are the most sought after by the engineers, as these are ranked among the top.
By relating the needs to the two factor theory, the conclusion was ? Interesting work and promotion and growth in the organization were intrinsic needs ? The rest were are extrinsic needs
By the two factor theory we analyzed that the there is a preference of absence of dissatisfaction factors, as well as the presence of satisfaction factors. But there are a large number of extrinsic factors in our survey and they are the base and needs to fulfilled first.
THE DRIVERS AND ORGANIZATION LEVERS OF MOTIVATION
The above four drives play an important role in structuring the motivation levels in an organization.
Drive to acquire: Human beings are driven to acquire something which is scarce. They become happy when their which is fulfilled or get dejected when it is not. The primary lever is basically the reward system wherein the employees wish to see their reward being linked to the performance, pay them as well as the competitors and also to differentiate good performers from average and poor performers. Drive to bond: The drive to bond is associated with strong positive emotions like love and caring. It results in an enormous surge in motivation when the employees are proud of belonging to the company but at the same time there is a loss in morale if the company betrays them. The primary lever is basically the culture in the organization wherein employees value collaboration and team work and wish to share best practices with the other members of the team and the organization. Drive to comprehend: The drive to comprehend is all about making meaningful contribution. Employees are motivated by the challenging job given to them and are demoralized if their job becomes monotonous. The primary lever is basically the design of the job wherein the employees want the jobs to be designed in such a way that it is meaningful and gives the employee a feeling of having contributed to the organization. Drive to defend: The drive to defend is about defending yourself from the external threats. The employees try to defend their accomplishments, ideas from the external threats. The primary lever is performance management and resource allocation where it is necessary for the organization to be more transparent in their operations and building trust with the employees.
SURVEY ANALYSIS – DETERMINATION OF THE LEVELS OF THE DRIVERS OF MOTIVATION
As is clear from the screenshots of the analysis carried over the survey, following are key points that emerged for the IT sector ? Nearly 80% of the employees surveyed here were satisfied with the way the reward system was being handled by their respective company. ? The most satisfying drive and primary lever emerged out to be bond and culture respectively. More than 95% of the respondents said that they were able to foster mutual reliance and friendship among co-workers, shared best practices and valued team collaboration. ? As is expected by most from the IT sector, the most dissatisfying lever turns out to be Job Design from the survey. A mere 40% seem to be satisfied with the importance of their job in the organization, their work life balance and the intellectual stimulation offered by their job. ? A fair amount of dissatisfaction was also observed in the way performance management and resource allocation happens in the firms where the processes do not seem to be transparent and fair and plagued by politics.
doc_578578237.doc