Human Resource Management HRM Business Essay

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Human Resource Management (HRM) associates employee's allied work to the strategy of business or organization. HRM is the management that takes care of issues associated to workers such as performance management, compensation, safety, employee motivation, administration, communication and training. An effective HRM enables workers to execute their work in an efficient and productive way in relation to the company's direction and towards the goals and objectives set.

"Moreover, nowadays HRM gives the opportunity to employees to participate in decision making of the organization and also work with the vision to facilitate and improve the performance of employees by building a conductive work environment. Major activities of HRM are determined towards development of high performance leaders and encouraging employee motivation." (managementstudyguide.com)

As such, to be able to have an efficient and modern civil service in Mauritius, the need to apply Performance Management System is clear.

"A performance management process sets the guideline to reward workers by aligning activities with the mission and objectives set by the organization and also make sure that employee and the organization understand the significance of a precise job in achieving outcomes. By providing clear information of what is expected such as outcomes, behaviors and measures to employees, it helps them to understand more of what is actually being expected from their jobs and hence setting of standards might help in terminating jobs which are of no use." (managementstudyguide.com)

An organization that want to search for and struggle to be competitive will be able to do so by motivating and empowering their human resource for a greater job performance. (hrmbusiness.com, 2008). As a result come the purpose of a Performance Management System which is aimed at influencing people in a positive way for the achievement of the organization's target, as well as the evaluation and recognition of employees work to enhance their efficiency and effectiveness and in addition, a mean to improve by understanding and managing performance within a framework of planned goals, objectives and support incentives.

"It is simple to understand that psychologically well employees will perform better. Hence, as an elevated employee performance is inextricably attached to a company's bottom line, employee's welfare can be an important part when establishing competitive advantage." (Sciencedaily.com, 2009)

Thus, when employees are well motivated and are happy with their work conditions, they will be performing at a higher level. Hence, contributing in the success of the organization.

"To conclude, PM is seen as a realistic system of managing employee performance to guide the workers and the company towards desired performance and outcome. It is about striking a pleasant alliance between workers and company's objectives to achieve excellence in performance." (managementstudyguide.com)

Research Background

Employees' performances have been extensively studied because it affects productivity and service quality. As such, it can be recognized that organizational commitment and participation can be part of factors that contribute in the performance of employees. Motivational factors certainly satisfy the needs of employees and as such they are more encouraged and repay it by working hard. Determining the needs and responding to it is the basic approach of companies to obtain employees commitment. (Chughtai, 2008). With the good relationship between employers and employees, the company effectiveness can be used for employee's performance to be demonstrated.

It is also defined that motivational factors can likely strengthen the workforce which can influence in employees expected performance. (Byham and Moyer, 2005). Furthermore, the process of motivation can boost and affect the job performance and also other outcomes of an individual that can reach the employees' outmost performances and even their job satisfaction (Strain, 1995; Chughtai, 2008).

1.3 Research Questions

In order to obtain the appropriate information for this research, the following questions will help to achieve the objectives set.

What motivational factors contribute in the performance of employees?

What is the present level of job satisfaction in the government service sector?

The above questions are important because employees' performance contribute in the productivity of the organization. It also affects the employee personally and their delivery to the clients and also the efficiency of the organization. And in a public service sector, staff satisfaction has a direct connection to client satisfaction.

1.4 Aims and Objectives

The aim of this study is to understand the performance of employees in a public service sector. How are they motivated to give their best performance and how can this affect their work as well.

Objectives:

To analyze performance of the employees and factors contributing to it.

To determine the level of job satisfaction.

To assess job motivation at work.

To assess the link between motivational factors, performance of employees and success of organization.

To come up with new ideas to increase the performance of the employees.

1.5 Outline of study

The dissertation is structured as follows:

Chapter 1; provides an introduction about the topic including the problem statement, the aims and objectives of the study and also an overview of the company where research will be undertaken.

Chapter 2; reviews the existing literature on performance of employees. The chapter encompasses on how the company can increase the performance of employees, to what extent are they motivated to work and give their best performance, and how satisfied are they with their work.

Chapter 3; outlines the research methodology chosen to carry out the research of the study.

Chapter 4; deals with the result and findings of the responses and data collected from the questionnaire respectively for the purpose of this dissertation.

Chapter 5; illustrates the recommendations

Chapter 6: Sums up the research as conclusion

Chapter 2: Literature review

2.1 Introduction

In today's working environment competition keeps on increasing. Many of the workers are well qualified and therefore, they are entrusted higher responsibilities. Within the work place, all workers are given their part of work and they must meet the requirements expected from them. As such, many work places have a system called Performance Management System, which is actually a scheme to motivate workers to give their best performance for they will be evaluated and also be rewarded for their hard work. Moreover in public sectors, such initiatives are well known to burst the performance of staffs. Therefore, the PMS lies at the heart of the Human Resource Management of public sectors.

2.2 Performance Management

Performance Management (PM) contains actions that ensure that goals are constantly being met in an effective manner. It can also be defined as a tool to implement strategy. It can be useful in communicating goal, objectives, reinforce individual responsibility to meet these goals. Performance Management is a systematic process where work place involves its employees in improving the work effectiveness by focusing them on achieving the organization mission and strategic goals.

Performance Management can also be defined as an ongoing process of communicating and to make sure that level management and employees understand each other, by illustrating job responsibilities, priorities and performance expectations. It encourages a development in the management which enables them to obtain feedback and promote teamwork. It focus more on communication and adding value by giving support to the development of improved job performance and encouraging skill. Performance Management also explains job duties, defines performance standards and documents, evaluates and discuss performance with each employee. (indiana.edu, 2005)

Figure 2.1: Performance Management Process

Source: (indiana.edu, 2005)

"Performance Management can be defined as the process of constructing a work atmosphere where employees are able to give the best of their competence." (Susan M. Heathfield, 2012)

Another definition of Performance Management is "performance levels that was thought to be unachievable can be reach only when both the managers and workers set clear lines of communication and moreover, comprehend how their task contribute in achieving the goals of both themselves and the workplace. PM is a complete guidebook on how to set up a clear communication system to be able to obtain top performance and value from workers. It guides to the employees how to accomplish goals- focused performance, how to cultivate a great commitment to success, and how to plan meetings and performance appraisal within each employee. (google.mu, 1990)

2.2.1 How does Performance Management System work?

Performance Management is the systematic procedure where employees and member of the group work in improving the governmental effectiveness in the accomplishment of mission and goals. As such the employee Performance Management includes a working cycle as shown on the next page:

Figure 2.2: PM cycle

Source: (opm.gov)

Planning:

In order to be effective, planning must be done in advance. It is the process of defining performance expectations and goals toward achieving the organizational objectives. It's important to get employees involved in planning process as this help them to understand the goals and therefore how the work must be done, for what purpose it need to be done and how good it should be.

To plan employee performance, it should include standards of their performance appraisal plans that are measurable, understandable, verifiable, equitable and achievable. Employee performance plans should be flexible to adjust to any changes in objectives and work requirements.

Monitoring:

Projects are monitored continually in an effective organization. Monitoring is the process of measuring performance and helping employees to reach their goals by guiding them with continuous feedback. The regulatory requirements to monitor performance include conducting progress reviews with the employees where in fact their performance is compared against their element and standard. Continuing monitoring help to evaluate how far are the employees are on the right path of reaching standards put upon them and to solve unlikely and challenging standards.

Developing:

Developing can be defined as the process of providing training, assignments and improving work processes in an attempt to increase performance ability. Assignments enable new skills and trigger the sense of responsibility. On the other hand, training results in better performance, stronger job skills and helps change to be easy for employees

Rating:

From time to time, summarizing employee performance is important. This can help in looking at and comparing performance over a period of time or among employees. This enables to know who the best performer is.

Therefore, rating involves the comparison of employee performance with standards of the company. Rating can result in increase in pay to highly rated employees and the determination of additional retention service credit

Rewarding:

Rewarding means recognizing employees, individually and as a member of a group for their contribution to the company and for their good performance.

Good performances don't need a nomination for formal awards to be solicited to be recognized. It is an ongoing process. Award policy offers a wide range of forms that formal merit can use, such as cash, tome off, and many nonmonetary items.

Managers and employees together have follow each key component process and have been practicing good PM. Goals are reviewed and work is planned accordingly frequently, and in addition those goals progression are being measured and the feedback is given to the employees. High standards are placed and the responsibility to take care to develop skills required achieving them also. To recognize the performance and the outcomes that complete the mission, formal and informal rewards are used. The five components processes operating as one and supporting one another attain natural effective PM. (opm.gov)

2.2.2 Benefits of Performance Management

Enhance quality of work life:

Employees' work life change as they have new experiences and when evaluating their performance and their success being shown, they become more confident and have a greater job satisfaction.

Increase employee responsibility:

There is new way to make employees responsible for their decision making and also actions taken by them and this is by communicating realistic and challenging work to them and therefore make them understand what is expected from them. That is their job expectation, which will hence, make them committed to the organization as well.

Pulling together:

An effective performance management with a well defined objective will help employees to better understand how they are contributing in the organization productivity and thus, boost their motivation. Moreover, this will help to ensure that employees are working together toward the same goals.

Happy workers:

With a performance management system at work, this will enable employees to know their value in the organization, as such improve their personal motivation. Hence, workers will surely respond well to praises and they are likely to double their efforts towards higher target.

Communication:

Performance management can also help to establish a good communication between employees and employers. Employees can feel free to discuss any matters with managers or supervisors and therefore exchange opinions and find solution to the related matters.

Feedback for employees:

When evaluation is done on a regular basis, and feedback provided to employees, they may find it easier to do their job, as they will be able to understand what is expected from them. This will also help them to have a better and clear objectives and how they should improve. Consequently, they will feel encourage also to perform better. (Thales- Training & Consultancy, 2011)

2.2.3 Performance Appraisal

Performance Appraisal (PA) can be defined as the process of analyzing employee's performance and keeping records of their work. It is a review of employee's assigned responsibilities and tasks. Therefore, evaluating employees' performances in terms of required expectations.

PA "is the process of evaluating the performance of employees, sharing that information with them and searching for ways to improve their performance." (slideshare.com)

2.2.3.1 Purpose of Performance Appraisal

Performance appraisal is done mainly to evaluate performance of employees and as such see to it that the organizational objectives are being met via the employee's dedication in work. The following are some example why PA is needed in an organization:

Career Development

This help in an opportunity for career counseling and help in succession planning of the organization. Moreover, it provides the opportunity to discuss about career objectives and how to assess in developing individual abilities.

Feedback

Feedback provides a two way communication between employees and supervisors or managers. This can also provide a constructive discussion on how the employee's performance is seen as feedback can either strengthen performance or encourage employees to work better or give the opportunity to discuss about performance deficiencies.

Organizational Goals

The purpose of PA can also be a way o communicate and clarify organizational expectations to its employees and provide opportunities to assess employees' performances with the organizational goals

Administrative uses of PA

This enables to identify the poor performers and who are the better performers and therefore take action as to whether promote the good performers, increase salaries or how to reward them and as for the poor performers see that they are given a development program to help them improve.

Performance history

Performance history is not dependent upon human memory, rather it may b useful in personnel decisions including compensation decision making. In addition, provide the occasion to review and compare past and present performances and analyzing strength and weakness of employees. (Davi Ngo, hrvinet.com)

2.2.3.2 Types of Performance Appraisal

Different PA methods differ in suitability and effectiveness. The methods stated herein are some of the many methods used in employee performance appraisal.

360 Degree feedback:

360 degree feedback is one of the current topic and being taken into consideration in management evaluation and assessment and is considered to be an innovative approach in PA.

This process consists of assessing colleagues that work around themselves. It is an anonymous assessment, and this enables each employee to receive and gives their feedback on their colleagues.

Management by Objectives (MBO):

MBO is a process by which both managers and employees set their objectives that they should meet and work toward this objective. Later they will assess their performance and based on the results obtained, they will be rewarded.

As such, MBO is more concerned on what to achieve rather than how the objectives have been met.

Critical Incident Method:

This type of PA is a method which describes incidents of employees whether they did well in their job or need improvement during their performance period. Managers analyze the negative and positive behavior and performance of employees.

Graphic Rating Scale:

This is one of the oldest methods of PA and most used one. Graphic rating scale is the simple way to rate the performance of employees. It assesses the performance of employees between the minimum and maximum number of the rating scale.

Behaviorally Anchored Rating Scales (BARS):

BARS is a mix of rating scale and critical incident methods of PA. As the name mentioned it, BARS basically rates on the behavior of the employees at work. The attitude and behaviors of employees are being assessed. This also provides how effectively or ineffectively they performed in work.

Ranking Methods:

This method rate employee from their highest to lowest performer. Moreover, managers compare an employee to another employee. Each employee will b evaluated compare to another one on a scale of best to worst performer.

Essay Evaluation:

Essay evaluation is a qualitative technique of obtaining information. Managers must point out the strength and weaknesses of employees and present it in a written format in a paragraph.

Assessment Centers:

This method was previously used to select employees and managers. Now it has become a method of PA. The individual is assessed on different criteria such as psychological tests, management games, oral presentation and other exercises. They are then judged and decide on their appraisal. (Davi Ngo, hrvinet.com)

2.2.3.3 Performance Appraisal at a Civil Service

In Mauritius, the type of performance appraisal used in the civil service is called Confidential Report (CR). It is a descriptive report that is prepared by the employee's supervisor and presented at the end of year. What the supervisor or manager think of its employee is written in this CR. They highlight the strength and weaknesses of employees and give it in a written form and it is strictly confidential. The employee is not given any details about the report. And besides, they are not submitted to any feedback.

In the government sector, performance appraisal must begin with performance conformity on the basis of pre-determined work schedule preparation, sustaining to ongoing process, and finally complete with an overall revision of performance, appreciation and also evaluation of development needs.

PA at the individual level is an ongoing process between an employee and his supervisor. The PA process, covering a twelve months period consists of 3 phases:

Pre-appraisal: Individual assessment and describing performance expectations.

Mid-appraisal: Provide feedback on performance and develop performance improvement plan.

Final appraisal: Provide an overall rating on performance and also plan for future performance.

All important information in relation to the performance of employees is recorded on a PA form

This form contains an officer's individual performance at work and also its involvement to meet the strategic goals and objectives of the ministry/ department for a given period of time. Only the appraiser can keep the original of this for and hand it over to the Personnel Section after conducting the final appraisal phase. The appraise is given a copy of this form.

2.3 Motivation at Work

Motivation is a process that initiates that bring out the inner power within an individual to keep goals focus behavior alive. Motivation is what causes people to act, to perform and to achieve something. This is what strengthen someone ambition, give the willingness and direction to meet someone's goal.

"When factors about how to motivate employees in a workplace is being discussed, mainly the factor that come to mind is a high salary. In some situation this is true as some employees are motivated by money, but this does not really satisfy other employees. As such it can be concluded that human motivation is not a one fits all option but rather a personal characteristic. (bizhelp24.com, 2010)

Motivation is a very important factor in an organisation. Without being motivated to work, employees won't perform well. Motivation is needed to reach goals that have been set. Moreover, motivation has a direct effect on the productivity of the organisation. Therefore, if these employees are not motivated, the organisation will fail to meet its goals and objectives and also affect its production.

Employees are the greatest asset of an organisation, and no matter how efficient the technology and equipment may be, it is of no match to the effectiveness and efficiency of the employees.

Motivation is the psychological process that gives behaviour purpose and direction (Kreitner, 1995)

2.3.1 Intrinsic and Extrinsic Motivation

There exist many theories of what motivates people, and consequently people are motivated both by internal and external factors, as there is a combination of reasons that exist as why people do, react, attain, act, and discover. Every deeds has an original source and the key to amend and improve outcomes are to considerate the source of such deeds. (Novella Thompson, livestrong.com, 2012).

Intrinsic Motivation:

Intrinsic motivation is defined as doing something for personal reason. It comes from inside of that individual. When someone is intrinsically motivated, they will find pleasure in what they are doing and enjoy it because it is not something they are being pressurized to do.

In addition, when a person is intrinsically motivated, they will look for competency and skill development and be more focus on personal accomplishment.

Extrinsic Motivation:

Extrinsic as the name can describe is external factors or tangible rewards that motivate people. It reflects the desire to do something only to obtain something else in return, such as money, praises or awards. These kinds of people, does not really enjoy what they are doing because they engaged to do something only for some external purpose.

2.3.2 Theories of Motivation

Motivation theories explain the fact of how and why employees in a workforce are more satisfies and feels more motivated with a job more than another one. Therefore, it is vital for managers to understand the concept of work motivation as, a highly motivated worker who is satisfied with its work will more likely be committed to its work and produce better quality product and services compared to a non motivated worker.

In the past, employees were seen as an input in the process of production of goods and services. But what changed this thought was the research referred as the Hawthorne Studies carried by Elton Mayor (Dickson, 1973). According to Dickson (1973), this research analysis that employees sole motivation is not money and their actions are related to their attitudes.

The needs and what motivate employees become the most important focus of managers when the Hawthorne Studies bring in the human relations link to management. (Bedeian, 1993)

There are multiple ways as regard to what enthusiasm workers. And the frequently theories used are discussed below. And each theory has its own conclusion.

2.3.2.1 Mayo:

Contrary to Taylor, Mayo believed that money is not what all matters to workers, there are more than that. Workers are motivated by meeting their social needs. Mayo focuses more on the fact that managers should put more emphasis in interacting with their workers.

After doing some research, Mayo concluded that workers are motivated by:

Better communication; that is, there is interaction between managers and workers and therefore, any misunderstanding or any problems can be dealt between them.

Greater Management Involvement; managers should be more present in employees working life.

Working in groups or teams; employees feel more motivated and encourage working when they are in group or teams are working together in a friendly environment.

2.3.2.2 Maslow:

Abraham Maslow along with Frederick Herzberg focused more on the psychological needs of employees. Maslow forged a theory that employees need to fulfill at work and the theory consists of five levels of human needs.

Organization should therefore offer different incentives in order to help the employees fulfill their requirements and improve the hierarchy of need. (See below).

http://userwebs.cth.com.au/~gcutts/Images/maslow.gif

Figure 2.3: Maslow Hierarchy of Need

2.3.2.3 Herzberg:

Frederick Herzberg had a two factors theory of motivation. The two factors were Hygiene factors and Motivators.

According to Herzberg, motivators are more concerned with the actual job itself, for example; extra responsibility, recognition and promotion, whereas, the Hygiene factor is a factor that surround the job, such as reasonable pay, safe working conditions.

2.3.2.4 Mc Gregor Theory X and Y:

Basic nature of employees that Mc Gregor has characterized in two type.

Theory X:

Employees who are especially committed to their work. They always seek for new challenge, and accept any work given to them. They are motivated workers and very dedicated. They accept responsibilities and can be very creative throughout their work.

Theory Y:

Employees that are contrary to Theory X. they are lazy workers that refuse responsibilities. They must be supervised and threaten to do the work. They don't display any ambition at work and are often punished.

2.3.3 Motivation is the key to Performance Improvement

There is a quote "A horse can be taken to the water but cannot be forced to drink. When it's thirsty it will drink."- So is it with people. People will do as per their wish or what motivated to do.

Performance is alleged as a utility of liability and motivation, and there is a formula that is made from that;

Job Performance = f (ability) (motivation)

Ability depends on the education, experience and training provided to the employee. And its ability is a slow and long process. As for motivation, it can be improved rapidly.

7 strategies known to motivate staff:

Reward employee on their performance

Reshuffle job

Satisfied needs of employees

Situating work linked to goals

Constructive reinforcement

Treating all employees equally

Effective measures of punishment and discipline

Motivation, as such is a guide towards goals stated by motivator. The motivational structure must be customized to the organization's situation.

2.4 Job Satisfaction

"Job satisfaction is defined as "the degree to which people like or dislike their jobs." (Spector, 1997). Job satisfaction is a broad and international emotional reaction that any employee has for their job. Whilst researchers and practitioners are evaluating universal job satisfaction, there exists other concern in evaluating different "facets or "proportions" of satisfaction. Analyzing these facets is helpful for more evaluation of employee's satisfaction with vital job factors. Usual job satisfaction facets are condition of work, colleagues, salary, nature of work and its benefits and direction."(Williams, 2004)

Moreover, according to Ilham (2009), employee satisfaction refers to the positive or negative aspects of employee's attitude towards works. Employee satisfaction is the expressions used to describe the feeling of employees, that is whether they are happy and fulfilling their needs at work.

2.4.1 Herzberg's Theory on Job Satisfaction

"Frederick Herzberg is well known for his motivational theory. But after doing some research and analyze them, he developed his theory in two dimensions to job satisfaction.

Motivation

Hygiene

Motivation as per Herzberg can create satisfaction by fulfilling individual's needs and personal growth. As such these needs can be appreciation at work, accomplishment, responsibility, progression in work itself.

Hygiene on the other hand cannot motivate employees according to Herzberg, but it can minimize dissatisfaction. Hygiene factors consist of employee's salary; conditions at work, company policies, relation among workers, and management. These are matters associated with employee's environment.

Once hygiene areas are addressed, motivators will encouraged and advocate job satisfaction along with production. (Aafp.org, 1999)

Hygiene issues (dissatisfiers)

Motivators (satisfiers)

Company policies

Achievement

Supervision

Recognition

Salary

Work itself

Interpersonal relations

Responsibility

Working conditions

Advancement

Table 2.1: Herzberg's Theory on Job Satisfaction

2.4.2 5 Job Satisfaction Factors

According to a survey done in 2009 by the Society for Human Resource Management, there are top 5 job satisfaction factors. (Coach-4u.net, 2010)

Job security

Benefits

Compensation/ pay

Opportunities to use skills and abilities

Feeling safe in the work environment

2.4.3 Job Satisfaction In Relation To Job Performance

The relationship between job satisfaction and employee's performance has always been part of organizational behavior and human resource management. According to Robins (1999), job satisfaction and performance can be summarized as "productivity of a happy worker is higher". Job satisfaction lead to higher productivity, organizational responsibility, physical and mental health, so a person will work with better mood and will learn more skills and finally promotion in his performance (Comber. Barriball, 2007).

Chapter 3: Research Methodology

3.1 Introduction

The Research methodology chapter is very crucial in any research study. While choosing a research design, one should be able to strategically choose an approach that would answer the research problem in a best possible way. This chapter discusses the methodology used in this research. The research comprises of four steps:

Defining the problem and Research Objectives

Developing the research plan

Implementing the research plan

Interpreting and reporting the findings

3.2 Defining the problem and Research Objectives

3.2.1 Defining the problem

In this world of massive competition, it is becoming very hard for management to attract, develop and retain knowledgeable employees. Furthermore, it is also difficult to find a suitable environment and working conditions that would construct a workforce of high performance employees.

Companies willing to achieve high performance have always worked hard on the Motivation and Job satisfaction of their workers. Since performance is related directed to the level of motivation of employees, it is the duty of management to create that motivation and there exist many ways in doing so

3.2.2 Research Objectives

The research objectives of this dissertation are as follow:

To find out about the perceptions and feelings the employees have towards their work

To understand what motivate employees, their level of job satisfaction and what are their minds set to perform better.

Identify causes of demotivation among employees

Propose solutions to increase performance

3.3 Developing the Research Plan

Developing the research plan involves the determination of information needed and planning a way to gather them in a most effective manner. The plan contains the sources of already available data that are used in the study, works out the specific research approach, contact methods, sampling plan and other instrument which will be used to gather further information

3.3.1 Indentifying Information Types and Sources

There are two types of data, namely secondary data and primary data. Secondary data are information not gathered for the study specially but gathered previously for some other study. On the other hand, primary data are information collected for the specific purpose at hand. For this study, both primary and secondary data has been used.

3.3.1.1 Secondary data

Secondary data such as articles from several journals of the same topic, similar dissertation of university students and other research studies were used in the realization of this study. Moreover, most information was gained from the Emerald database and other consultation from various websites. Other important secondary data were collected from the Companies Division itself

Secondary data obtained enables most researches to start their study and acts as a guide as well. However, more importantly are the primary data as it gives specific orientation to the research being conducted and focuses on the predefined problems.

3.3.1.2 Primary data

There are mainly three types of primary data, namely observational, experimental and survey. For this research, a survey has been conducted. This for it has numerous advantages such as cost effectiveness, flexibility and is a fast way of obtaining data.

For this study, information was gathered by using the questionnaire method because of the latter's cost effectiveness and flexibility. Contact methods included sending questionnaire through emails to respondent and by distributing questionnaire to the Companies Division

3.4 Implementing the Research Plan

3.4.1 Questionnaire Design

Based upon the literature review, a questionnaire consisting of 4 sections has been designed.

Section A consisted of questions on Performance management. These questions were put in an attempt to gain information on the level of performance, factors contributing to high performance and perception about performance of the employees

Section B related to Motivation. The questions were set so as to gain a better insight of the motivation situation at the Companies Division.

Section C, on the other hand, comprises questions on Job satisfaction. Questions were asked to gain information on factors affecting employee's job satisfaction at the company.

Lastly, section D consists of the Demographic details of the respondents.

3.4.2 Structure of Questionnaire

While designing the questionnaire, special attention was given to the following:

Question relevance and content

Care also taken so as to ask the exact question for the required information needed for the study

Question wordings and vocabulary

Words were chosen carefully so as to avoid confusion and bias information. Furthermore, he vocabulary used was common and written in such a way that it is easily understood

Simplicity

The questionnaire was designed in the simplest form so as to facilitate the task of each respondent

Types of questions

The questionnaire comprises of mostly questions where more than two options are provided and the respondent chooses the answer that is most closely to his/her perception. Furthermore, there were also questions where only two alternatives were listed.

3.4.3 Pre testing of the Questionnaire

In order to determine if the questionnaire was set to gather maximum information and understood and related to the research objectives, it was pre tested with a group of 5 employees of the Companies Division. The pre test took notice of the validity, clarity and question length. Several amendments were made based on the pre test and it was then concluded that the questionnaire was in its best form.

3.4.4 Sample Plan

Since information cannot be gained from the whole population, researchers based their study on a sample of the whole population. This sample enables them to take conclusion on behalf of the whole population. Information gained from the sample is examined and ways to which it can be applied to the entire population is learn

3.4.4.1 Target population and Sample population

For the purpose of this dissertation, the targeted population was the employees of the Companies Division. However, since the population of the company is around 100, there was not enough time to include all of them in the survey. Moreover, there was also high cost involved in doing so. Therefore, a random sample of 30 employees are chosen and surveyed. There was a 5% mode of error ensured throughout the research on its reliability and validity

After having distributed the questionnaires to the 30 staffs, a delay was given for them to give the views. In this case, the response rate was 97% since one questionnaire was not returned.

Please find below a table of the sample population.

Post

Amount

Head of department

1

Accountant

2

Typist

1

Clerical Officer

7

Compliance Officer

18

Total

29

Table 3.1: Distribution of questionnaires

3.5 Interpreting and reporting the findings

3.5.1 Data analysis

After having gained information from respondents, pertinent findings from the data obtained should be extracted. This is done by tabulating the data and developing frequency distributions, calculating averages and cross tabulation, etc… Bar charts and pie charts can also be used to illustrate data gained from the survey. Essential tools for this process are Microsoft Excel and SPSS.

3.5.3 Preparation of Conclusion and Recommendation

The last task in this study is the summary. This summary will include a conclusion and recommendation will be proposed to solve the problem of the topic. The result of this study will lead us to know how motivation and job satisfaction affects the performance of the employees of the Companies Division

3.6 Limitation of the Research

Despite the fact that the research was carried out in the most effective way and was a success, there exist a number of limitations.

The main limitation is the factor of time. Since time was limited for collecting information from respondents, while some of the latter returned their duly filled-in questionnaire after a short period of time, other had to be contacted several times in order to pressurize them to fill in the questionnaire. This pressure may have been a motivation for these respondents to give bias information.

Furthermore, some respondents may not have revealed the true situation at the company and hence, rather giving false information which would result in bias information.

3.7 Ethical considerations

Ethical considerations were taken very seriously in this study. Firstly all information gained some different sources was properly referenced. Furthermore, respondents were assured that the information gained from them would be treated as confidential and solely for academic purposes. Moreover, data collected were carefully being handled to avoid any faulty data gathering. All data including outliers were taken into consideration even if they did not support the hypothesis

Chapter 5: Recommendations

5.1 Introduction

After having assessed the performance of the respondents, the following are recommendations that can be taken into consideration by the Companies division to increase employee performance.

5.2 Better Work conditions

The study showed that bad working environment affects the performance of nearly 40% of the employees. Furthermore, it has been elaborated that appointing a health and safety officer would help a lot in solving the problem. Moreover, providing better equipments such as computers would also be of great help. Providing recreational activities such as outings would also help in improving the work conditions of the employees.

5.3 Better communication

The respondents also opted for better communication in order to improve their performance. In order to improve the communication system at the Companies Division, several measures could be taken:

Regular meetings between management and employees

Employees should feel free to vice out their opinion, problems, etc…

Management should adopt an 'open door' policy with its employees

5.4 Increase in salary

From the survey, it has been seen that an increase in salary would enable the employees to increase their level of motivation, which would lead to better performance. Therefore, this is another factor that the management must take into consideration in order to increase the performance of its workforce.

5.5 Reward system

However, it has also been found that, together with financial factors, employees also considered work recognition as an important factor for better performance. Therefore, the management should implant a work recognition system at work. An example would be:

Having a 'Best Employees award' each year

Simply words of appreciation from management in meetings

Lunch parties

Furthermore, informal rewards from management would also increase the performance of the employees. Examples would be:

Holidays

Training to enhance skills

Sponsored University courses to improve academic qualifications

5.6 Management Style

From the response received, it can be concluded that there is an autocratic style of management at the Companies Division. This style of management has a very negative effect on the performance of the employees. Therefore, in order to improve the situation, management should allow staffs to take decisions; this will develop a sense of belonging in the employees.

Furthermore, Management should also meet up often with employees to discuss problems and opportunities. At the same time, work objectives should be clarified in order to improve work efficiency.

Chapter 6: Conclusion

There is surely no simple answer of how to increase employees' performance at work. However, based on 2 factors, namely, motivation and job satisfaction, the study has come up with interesting discovering and the followings are conclusions taken out on analysis done from the survey:

First and foremost, it has been seen that employees of the Companies Division put much emphasis on good communication and training on the improvement of their performance. Furthermore, Recognition for their work is also considered important by the employees.

Respondents also considered having a clear view of their roles and having specific targets to an important factor in increasing their performance.

The study also found out that the working condition and environment at the Companies Division is a major factor affecting the performance of the employees there. Moreover, low salary also plays an important role in the level of performance of the employees.

It has also been found that employees at the organization is motivated and the most important factor contributing to their high level of motivation are trust and respect between colleagues and Job satisfaction

The Respondents have also considered an increase in salary and work recognition to be important measures to be taken to increase their level of motivation

Major reasons of satisfaction were found to be that the employees love their jobs since the latter is not bulky. However, some employees said that boss control is a major factor affecting their job satisfaction.

Employees were also found to very dissatisfied with the not being able to participate in decision making, not being recognized for their jobs and the lack of training and development.

The study also found out that the employees of the Companies Division considered financials factors to be linked with job satisfaction.

Lastly, the employees considered health and safety to affect their job satisfaction at a large extent. Furthermore, they also considered office equipments and good work environment to be very important to their level of job satisfaction.

The above were conclusions that could be taken out of the study. Likewise, the recommendation section highlighted all the delicate issues that the management of the Companies Division must take into consideration to build a plan to increase the performance of its employees.

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