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In the recent years, the world is controlled by business and these businesses are managed by lots and lots of employees and managements. On the basis of that it is not quite easy to describe the management process happening in all the companies around the world because it differs for each organization. The importance that's organizations give for the satisfaction of employee and a smooth working atmosphere is very high. To make it as simple , that can be explained as human resource management ( HRM ) refers to those activities associated with the management of employment relationships in the firm or organizations, the term employee relations will be used as an equivalent term, as will the term labor management. In general, HR involves with many dynamics related to work and also outside work be it covering workforce groups thus it includes questions about how managers themselves are managed the evidence indicates that mangers are always managed differently from the rest of the workforce.
In this research work, the main focus is of the subject management and leadership. For more focusing on the subject a multinational company Exxon Mobil is selected to analysis the theoretical and practical part of the subjects. This particular company is selected for this research work due to several reasons such as firstly company like Exxon Mobil is an international company with professional management styles. Exxon Mobil is also one of the leading oil companies in the world which have the ranking within the top five.
Exxon Mobil Corporation (Exxon Mobil) is an integrated oil and gas company based in the US. It is engaged in exploration and production, refining, and marketing of oil and natural gas. The company is also engaged in the production of chemicals, commodity petrochemicals, and electricity generation. As the company has its own strategies and culture, it is seems as a differences in motivating their employees and managing style. By doing this dissertation, it will be clear that how the organizational management or the managers was able to motivate their employees in different backgrounds. The main highlight of this dissertation is that the employees in the company had lots of problems but they are also happy to work for the organization. As the research comes to end it will be explained how they are happy to work for the organizations beside of their problems.
In the organization, ESSO, the management is very supportive in the case of their employees and also they will do whatever they can do to motivate their employees. The main thing in that is they will motivate their employees according to their needs with the basis of employee`s performance. For that they have weekly assessment, monthly assessment and monthly exams to calculate the knowledge of employees in the job. In that basis the management will motivate the employees according to their need within the organization limits. In this dissertation, the way of assessment and the way they motivate their employees will be investigated and that is the main aim of this dissertation.
The main motive by doing such a research about a multinational company is to find out what is happening in the real business world. For finding that, this research work is planned to do to find out the secondary data such as theories and models which is already mentioned in books and journals by famous writers about the business field. After collecting such information from books and journals, it is quite good to collect the information from the company as well. So by comparing both the information it can be easily concluded the real management style in employee performance. Another benefit in doing such a research is that to know more about such a multinational company. The main topics come into account for this particular research is like motivation, leadership, and also a SWOT analysis of the company is also getting into account for this research.
Another chapter of methodology is included in this work to show what all methods are adopted to collect the data for this research and finally a key part of the dissertation named data analysis is included as a separate chapter to compare the real n theoretical part of this work. This is how the structure of the research work goes and an overall conclusion is also created to conclude the data collected. All the figures and data collected form books and journals are properly referenced in text and at the reference section as well. From the next page itself, the main heart of the research work starts.
This chapter deals with the secondary data collected from books, journals, articles related to the particular topic. The structure of this chapter is designed as first of all a SWOT analysis of the company ESSO (Exxon Mobil) , then some motivational theories related to the employees and at the last it is mentioned about leadership. In this chapter proper references and related diagrams are also mentioned. This chapter will clearly explain one side of the dissertation topic.
2.2 COMPANY BACKGROUND
Standard Oil of New Jersey (Jersey Standard) and Standard Oil of New York (Socony), the chief
predecessor companies of Exxon and Mobil, date back to 1882, when John D Rockefeller acquired various petroleum interests and organized them under the Standard Oil Trust. In 1911, Standard Oil Trust was dissolved, resulting in the spin-off of 34 companies, including Jersey Standard and Socony. In 1931, Socony merged with Vacuum Oil Company. In 1955, Socony-Vacuum became Socony Mobil Oil Company; and in 1966, it was named Mobil Oil Corporation. Jersey Standard changed its name to Exxon Corporation in 1972.Exxon Corporation and Mobil Oil Corporation merged to form Exxon Mobil Corporation (Exxon Mobil) in 1999.
In 2000, the company completed its $2 billion Sable Offshore Energy Project located off the coast of Nova Scotia, Canada. In 2002, Exxon Mobil created a new business venture, Exxon Mobil Travel Guide, to expand the commercial product and service line of the company's Mobil Travel Guide series. In the same year, the company disposed its coal and mineral business to focus on its core operations. In 2003, the company launched its first synthetic blend motor oil for high mileage engines. The company consolidated its US East and US West production organizations to improve business performance, in the same year. Towards the end of 2003, Exxon Mobil's subsidiary, Mobil North Sea, made a gas discovery in the southern sector of the North Sea, following the successful testing of an exploration well (about 32 miles east of Bacton, the UK).
In 2005, Exxon Mobil Chemical Company entered into a product distribution agreement with R T Vanderbilt to distribute Exxon Mobil's commercial vistalon ethylene propylene diene rubber products in North America. The company also announced its plans to convert its 71 Tigermarket convenience stores in Nashville and Memphis to its flagship On the Run convenience store brand, in 2005.In 2006, Exxon Mobil expanded its lubricants distribution network across Germany and Poland to distribute Exxon Aviation Oil Elite 20W-50 and the company's other aviation lubricants for aircraft piston engines. In the same year, Exxon Mobil signed an agreement with Thailand-based PTT Chemical Public Company for production of low-density polyethylene (LDPE) and ethylene vinyl acetate (EVA) in a 100 kilotons per annum autoclave system.
In 2007, Exxon Mobil completed the phase one of the Sakhalin-1 project offshore Eastern Russia with affiliates of Rosneft, RN-Astra, and Sakhalinmorneftegas-Shelf, Sakhalin Oil and Gas Development Company, and ONGC Videsh. Further in 2007, Exxon Mobil Chemical completed the expansion of its steam cracker in Singapore. The expansion project, announced in 2005, increased the ethylene capacity of the Singapore Chemical Plant by 75,000 tons per year to more than 900,000 tons per year. In the same month, the company signed a production sharing contract with the government of Indonesia for the Mandar block located in the Makassar Straits offshore West Sulawesi. In the same year,
Exxon Mobil Chemical announced the start-up of a new $20 million compounding facility in January 2008, to supply high-performance polymers to the automotive, appliance, and specialty consumer products industries. In March 2008, Exxon Mobil Exploration and Production Malaysia, a subsidiary of Exxon Mobil, signed a 25-year production sharing contract with the Malaysian national oil company PETRONAS for sustainable energy supplies to Malaysia. In October 2008, ExxonMobil Chemical completed 130,000 tons per year capacity expansion at its Exxsol hydrocarbon fluids plant in Jurong Island, Singapore, increasing capacity at this site to more than 500,000 tons per year. Subsequently, Exxon Mobil entered into an agreement with Pratt & Whitney Rocketdyne to develop next-generation technology to convert coal, coke, or biomass to synthesis gas (carbon monoxide and hydrogen). Exxon Mobil, in March 2009, announced an investment between $25 billion and $30 billion annually over the next five years to meet expected long-term growth in world energy demand. In the same month, the company announced its plans to build a technology center in Shanghai, China to provide product applications support for its growing business in the Chinese and Asian markets. ExxonMobil inaugurated its newest cogeneration plant at its Antwerp refinery in Belgium, also in March 2009. Besides generating 125 MW, the new plant would reduce Belgium's carbon dioxide emissions by approximately 200,000 tonnes per year.
In April 2009, ExxonMobil Chemical applied its proprietary catalyst hydrogenation technology to produce ultra-low aromatic (ULA) fluids that comply with existing environmental and regulatory requirements. Subsequently, Exxon Mobil announced the sale of its On the Run convenience store franchise system in the US, and 43 of its company owned and operated sites in the Phoenix, Arizona to Couche-Tard. In the following month, ExxonMobil Chemical developed two new grades of V series co-extruded battery separator films, which enhanced safety for hybrid and electric vehicles, power tools, and electronic devices including laptop computers.
2.3 SWOT Analysis
SWOT analysis is a strategic planning method used to evaluate the strength, weakness, opportunities and threats involved in a business or a company (Kotler, et al 2008).
By using such an analysis it is easy to identify the internal and external factor which is useful and not useful for the business.
Strengths: Refers to that what the company has does well. What makes the company more competitive? (Roger, et al 2003)
Weakness: The main areas that the company or business struggling to get through. (Kotler, et al 2008)
Opportunities: Evaluating the products and services available in the company to achieve some more competitive advantage (Kotler, et al 2008).
Threats: The internal and external evaluation of company that will do damage to the objective (Kotler, et al 2008)
2.3.1 Analysis of ESSO
Leading market position: Esso is one of the largest petroleum trading companies with market capitalization of $337,236.8 million. The company occupies about 24 countries around the world for production operations. Esso holds 37 refineries in 20 countries and more than 29,000 retail service stations.The company is operating in more than 200 countries under the names Exxon Mobil, Exxon, Esso and Mobil (Exxon Mobil cooperation, 2009). In 2008, the average oil and gas production for sale is simply 3.9 million oil barrels per day. Exxon Mobil has a cutting edge in the petroleum industry with 49 wholly-owned and joint venture around the world. A leading market position in all key products gives a brand image for the company (Exxon Mobil, 2009).
Diversified revenue stream: Exxon Mobil has a wide stream of revenue stream in over all geographic division like US and non-US. In the financial year 2008, the company had generated revenue of 29.9% of the total sale in the whole US. Revenue from non-US countries like Canada is 7.3% ,Japan of around 6.6% ,6.5% from the whole UK .Belgium had contributed of 5.5%,Germany 4.5%, France 4%,Italy 3.9% and Norway 2.7% to the total revenue(Exxon Mobil,2009). The company`s global operation and brand loyalty give competitive advantage over competitors and also a wide range of increase in revenue by utilizing the global influence(Exxon Mobil cooperation,2009).
Steady financial performance: Exxon Mobil has a steady financial growth in the past few years. In regards to the sales and other operating revenues, the company had a compound annual growth rate of 12% in the middle of financial year 2004- 2008 from $291.2 billion in 2004 to $459.6 billion in 2008 (Exxon Mobil,2009). As a result a 17.7% of revenue had increased in the financial year 2008 than 2007.As the net profit of the company is considered, there is a compound annual growth rate of 16% during the financial year 2004-2008 from $25.3 billion in 2004 to $45.2 billion in 2008.That makes a net profit increase of 11.4% in 2008 than 2007(Exxon Mobil cooperation, 2009). The steady financial performance of the company makes them to perform well and also to make an increase in the financial status of the company (Exxon Mobil, 2009).
Strong R&D capabilities: Exxon Mobil has a strong research and development (R&D) department which has the capability to develop new stuffs and also to improve the existing products, as well as to motivate the manufacturing and production methods (Exxon Mobil cooperation, 2009). The company had spent $847 million on R&D in the financial year 2008.In previous years as well the company had spent $814 million in 2007 ,$733 million in 2006,$712 million in 2005 and $649 million in the financial year 2004.As the company has a strong R&D department ,company had launched many new products. For example, in April 2008, company had introduced Metallyte UBW-ES, an oriented polypropylene (OPP) films for flexible packing. This technology had an excellent sealing strength of 1500g/2.5cm and also has the ability to seal through product contamination in the seal area, as compared to traditional OPP films (Exxon Mobil, 2009).
As a part of this strong R&D department, in 2008 Exxon Mobil chemical company had launched a new metallocene polyethylene (mPE) platform. It will help converters to achieve more stable operations, extend film line output, simplify resin sourcing and generate downgauged films. Enable mPE will help for easier packaging for shipping and storing bottle water, beverages, health food and so on(MPE,2009). In April 2009, Exxon Mobil chemical company had developed its hydrogenation technology to introduce ultra-low aromatic (ULA) fluid for more strengthen environments and for regulatory requirements. Recently, the company had introduced two new grade of V series co-extruded battery which is more helpful in electric and hybrid vehicles and also in electronic devices including laptops (Exxon Mobil, 2009).
Legal proceeding: Exxon Mobil has faced many legal proceedings. In OCTOBER 2008, the company has fined about 128million dollars for price fixing of paraffin wax. The company faced an excuse in failing to clean the hazardous pollutants in a fuelling depot fisherman`s wharf. In another incident, a resident in Linden had affected a variety stomach cancer due to wrong conditions of the Bayway refinery in Linden. The company has forced to give a penalty of about 7.5 million dollars for this incident. Such cases result in huge penalties and can have adverse effects on the company's profitability (Exxon Mobil, 2009).
Employee unrest: Exxon Mobil, the largest oil producer of Nigeria, produces about 800,000 barrels per day. In April 2008, the workers of Mobil producing Nigeria went strike for less pay and worst working conditions (Exxon Mobil cooperation, 2009). The eight day strike results to the stoppage of whole production of the oil and also causes a break in shipments. The strike resulted in a decline of the Exxon Mobil's oil production by more than half. In May 2008, the port workers of the company carried out a strike at Los-Angeles refinery in Torrance results a full stop in the production of oil (Exxon Mobil, 2009).
Declining production in US: In the financial year 2004, a decline in production of crude oil and natural gas has been recorded in US. The net liquid production has declined at a compound average growth rate of 10% from 557,000 barrels per day in financial year 2004 to 367,000 barrels per day in financial year 2008(Exxon Mobil cooperation,2009). The company recorded a 6.4% decline in its net liquid production in 2008 compared with 2007.A similar decline is also happened in the production of natural gas as well. The natural gas has got a decline at a compound average growth rate of 11% from 1,947,000 barrels per day in the financial year 2004 to 1,246,000 barrels per day in the year 2008. The company has recorded an overall decline of 15% in its net gas production in 2008 compared to 2007(Exxon Mobil, 2009).
Increasing demand for refined production in ASIA: The company is expecting a wide future of about 60% of world`s petrochemical demand growth in Asia, with more than one-third in China (Exxon Mobil, 2009). The refining capacity in China is forecast to increase from 6.2 million barrels per day in 2006 to 14.6 million barrels per day in 2030.To attain more advantage in Asia and middle east countries the company is developing their technologies, process and marketing innovations(Exxon Mobil cooperation,2009).
Exxon Mobil is currently working on an integrated refining and petrochemical facility located in
Quanzhou, Fujian Province, China. This project includes 800,000 tons per year ethylene steam
cracker and integrated polyethylene, polypropylene, and paraxylene units. The company is developing a world scale petrochemical complex and chemical facility in Singapore. This project includes one million tons per year ethylene steam cracker; and polyethylene, polypropylene, specialty elastomer, and benzene units (Exxon Mobil cooperation, 2009). Also, Exxon Mobil has signed an agreement with Saudi Arabia, Kenya and Yanpet to supply synthetic rubber, thermoplastic specialty polymers, and carbon black. The company is also carrying out a further study about Qatar petroleum for a wide scale petroleum complex in Ras Laffan industrial city; Qatar.These opportunities of the company will take advantage of increasing demand for refined products in Asia (Exxon Mobil, 2009).
Increasing demand for liquefied natural gas: The company is expecting an increase in demand of liquid fuels to 108 million oil barrels per day by 2030. The company forecasts the global liquefied natural gas (LNG) demand to more than triple in volume from 2005 to 2030, driven by the demand in North America, Europe, and Asia Pacific markets(Exxon Mobil,2009). Exxon Mobil is currently planning to build a Golden pass liquefied natural gas terminal at US Gulf coast, with a capacity of 2 billion cubic feet per day (Exxon Mobil cooperation, 2009). The company has also applied for regulatory approval for a new LNG gasification terminal, BlueOcean Energy, 20 miles off the coast of New Jersey (Exxon Mobil, 2009).
In Europe, the company had developed the Golden pass liquefied natural gas terminal at Milford Haven, Wales Italy and so on had started its operations. These terminals have a combined capacity of nearly 3billion cubic feet per day (Exxon Mobil, 2009).
Capital investment: Exxon Mobil plans to invest $25billion to $30billion on future to develop major projects to meet growing energy demand (Exxon Mobil, 2009). The demand for global energy is expected to increase approximately 35% from 2005 to 2030.The company developing nine projects in the financial year 2009 will come over around 485,000 oil barrels per day to the overall company`s production(Exxon Mobil cooperation,2009). By the end of 2010, those projects will increase lower sulfur diesel production by 140,000 barrels per day. In chemical business, the company had invested on petrochemical projects in China and Singapore. These investments aim to develop new technology, bring on new upstream projects, increase the company's base refining capacity, and grow its chemical business. These investments also reinforce Exxon Mobil's position as an industry leader in bringing new supplies to the market (Exxon Mobil, 2009).
Economic slowdown in US and European Union: The company has a significant presence across the US and the European market. According to International Monetary Fund's (IMF) World Economic Outlook, April 2009, the US and the European Union economies could face slowdown in 2009(Exxon Mobil cooperation,2009). The US GDP growth rate declined from 2% in 2007 to 1.1% in 2008. The country is forecasted to record a negative GDP growth rate of 2.8% in 2009.The GDP growth rate in the European Union declined from 2.7% in 2007 to 0.9% in 2008.The region is forecasted to record a negative growth rate of 4.2% in 2009(Exxon Mobil,2009). A weak economic outlook for these regions could depress industrial development and impact the demand for the company's products (Exxon Mobil cooperation, 2009).
Risks associated with conducting business outside the US:
The company operates in more than 200 countries under the names Exxon Mobil, Exxon, Esso, and Mobil. The non-US countries accounted for more than 70% of the total revenues of the company in 2008(Exxon Mobil cooperation, 2009). In these foreign locations, the company might experience fluctuations in exchange rates, complex regulatory requirements, and restrictions on its ability to repatriate investments and earnings from its foreign operations. The company might also face changes in the political or economic conditions in the foreign countries it operates in. Such instabilities could negatively impact the revenue growth of the company (Exxon Mobil, 2009).
Exxon Mobil's businesses are subject to numerous laws and regulations relating to the protection
of the environment. With rising awareness of the damage to the environment caused by industry,
especially regarding global warming, regulatory standards have been continuously tightened in recent years (Exxon Mobil cooperation, 2009). One of the most important developments in this area has been the introduction of the Kyoto Protocol for the reduction of greenhouse gases. The protocol calls on industrialized countries to reduce their greenhouse gas emissions level by 5.2% on an average annual basis during the 2008-12 period, compared with 1990 emissions levels(Exxon Mobil,2009).Further, in 2005, the US environmental protection agency (EPA) issued a 'clean air interstate rule (CAIR), to reduce the emission levels. According to the rule, the states have to reduce the allowable sulfur dioxide (SO2) emissions by 70% and reduce nitrogen oxide (NOX) emissions by 60%, by 2015 compared with the 2003 levels (Exxon Mobil cooperation, 2009). The company is governed by these regulations which could impose new liabilities on the company. This could result in a material decline in Exxon Mobil's profitability in the short term (Exxon Mobil, 2009).
Motivation is to inspire people to work, individually or in groups in the ways such as to produce best results. It is the will to act. It is the willingness to exert high levels of effort towards organizational goals, conditioned by the efforts and ability to satisfy some individual need. Motivation is a general term applied to the entire class of drives, desires, needs, wishes and similar forces (John et al, 2005). Managers motivate their subordinates is to say that they do those things which they hope will satisfy these drives and desires and induce the subordinates to act in a desired manner(Maddock et al,1998) . To motivate others is the most important of management tasks. It comprises the abilities to communicate, to set an example, to challenge, to encourage, obtaining feedback, to involve, to delegate, to develop and train, to inform, to brief and to provide a just reward (Forsyth et al, 2006).
2.4.1 Motivational Theories
An understanding of motivation theories can help managers increase employee performance. Employees generally fall into two types: self-motivated, and those that require external motivation to stay motivated (John et al, 2005). Self-motivated employees tend to exhibit good performance even if they are never provided with much external motivation, but their performance increases still more if they are provided with that motivation. Employees that do require external motivation certainly improve in performance when skillfully motivated. Highly motivated employees are highly productive employees, and they do superior (Forsyth et al, 2006).
184.108.40.206 ABRAHAM MASLOW`S"Hierarchy Theory "
Psychologist Abraham Maslow identified seven categories of basic needs common to all people. Maslow represented these needs as a hierarchy in the shape of a pyramid (Figure 1.2). A hierarchy is an arrangement that ranks people or concepts from lowest to highest. According to Maslow, individuals must meet the needs at the lower levels of the pyramid before they can successfully be motivated to tackle the next levels. The lowest four levels represent deficiency needs, and the upper three levels represent growth needs (Maddock et al, 1998).
Physiological needs: Maslow suggested that the first and the most basic need people have is the need for survival which include physiological requirements like food, water, and shelter. People must have food to eat, water to drink, and a place to call home before they can think about anything else. If any of these physiological necessities is missing, people must be motivated above all else to meet the missing needs (Forsyth et al, 2006).
Safety and security needs: After their physiological needs have been satisfied, people can work to meet their needs for safety and security. Safety is the feeling people get when they know no harm will befall them, physically, mentally, or emotionally; security is the feeling people get when their fears and anxieties are low(Martin et al, 2007).
Love and Belonging needs: After the physiological needs and the needs for survival and for safety and security have been met, an individual can be motivated to meet the needs represented at higher levels of the pyramid. The third level of the pyramid is needs associated with love and belonging (John et al, 2005). These needs are met through satisfactory relationships-relationships with family members, friends, peers, classmates, teachers, and other people with whom individuals interact. Satisfactory relationships imply acceptance by others. Having satisfied their physiological and security needs, people can venture out and seek relationships from which their need for love and belonging can be met (Martin et al, 2007).
Esteem needs: Once individuals have satisfactorily met their need for love and belonging, they can begin to develop positive feelings of self-worth and self-esteem, and act to foster pride in their work and in themselves as people (John et al, 2005). Before they can work toward self-esteem, however, they must feel safe, secure, and part of a group such as a class in school (Martin et al, 2007).
Cognitive needs: The fifth level of Maslow's pyramid represents an individual's need to know and understand. According to Maslow's hierarchy, this motivation cannot occur until the deficiency needs have been met to the individual's satisfaction (Pepitone et al, 1998).
Aesthetic needs: Aesthetics refers to the quality of being creatively, beautifully, or artistically pleasing; aesthetic needs are the needs to express oneself in pleasing ways. People are motivated to meet this need only after the previous five needs have been met (Pepitone et al, 1998).
Need for Self-Actualization: At the top of the pyramid is the need for self-actualization, which is a person's desire to become everything he or she is capable of becoming-to realize and use his or her full potential, capacities, and talents. This need can be addressed only when the previous six have been satisfied. It is rarely met completely (Martin et al, 2007).
Need for Self-Transcendence: Helping others to achieve self-actualization (Martin et al, 2007).
220.127.116.11 DOUGLAS MCGREGOR`S "Theory X and Theory Y "
The average human being has an inherent dislike of work and will avoid it if he can.
- Because of their dislike for work, most people must be controlled and threatened before they will work hard enough (John et al, 2006).
- The average human prefers to be directed, dislikes responsibility, is unambiguous, and desires security above everything (Adair et al, 2006).
- These assumptions lie behind most organizational principles today, and give rise both to "tough" management with punishments and tight controls, and "soft" management which aims at harmony at work (John et al, 2006).
- Both these are "wrong" because man needs more than financial rewards at work; he also needs some deeper higher order motivation - the opportunity to fulfill himself (Evans et al, 2000).
- Theory X managers do not give their staff this opportunity so that the employees behave in the expected fashion (Adair et al, 2006).
- The expenditure of physical and mental effort in work is as natural as play or rest (Adair et al, 2006).
- Control and punishment are not the only ways to make people work, man will direct himself if he is committed to the aims of the organization (Evans et al, 2000).
- If a job is satisfying, then the result will be commitment to the organization (Martin et al, 2007).
- The average man learns, under proper conditions, not only to accept but to seek responsibility (John et al, 2006).
- Imagination, creativity, and ingenuity can be used to solve work problems by a large number of employees (Evans et al, 2000).
- Under the conditions of modern industrial life, the intellectual potentialities of the average man are only partially utilized (Martin et al, 2007).
18.104.22.168 Frederick Herzberg motivation-hygiene theory
To better understand employee attitudes and motivation, Frederick Herzberg performed studies to determine which factors in an employee's work environment caused satisfaction or dissatisfaction (Adair et al, 2006). The studies included interviews in which employees where asked what pleased and displeased them about their work. Herzberg found that the factors causing job satisfaction were different from those causing job dissatisfaction. He developed the motivation-hygiene theory to explain these results. He called the satisfiers motivators and the dissatisfiers hygiene factors, using the term "hygiene" in the sense that they are considered maintenance factors that are necessary to avoid dissatisfaction but that by themselves do not provide satisfaction (Adair et al, 2006).
Factors Affecting Job Attitudes
Herzberg reasoned that because the factors causing satisfaction are different from those causing dissatisfaction, the two feelings cannot simply be treated as opposites of one another (John et al, 2006). The opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. Similarly, the opposite of dissatisfaction is no dissatisfaction. Herzberg argued that there are two distinct human needs portrayed. First, there are physiological needs that can be fulfilled by money, for example, to purchase food and shelter. Second, there is the psychological need to achieve and grow, and this need is fulfilled by activities that cause one to grow (Evans et al, 2000).
22.214.171.124 McClelland's Theory of Needs
In this acquired-needs theory, David McClelland proposed that an individual's specific needs are acquired over time and are shaped by one's life experiences. Most of these needs can be classed as achievement, affiliation, or power. A person's motivation and effectiveness in certain job functions are influenced by these three needs (John et al, 2006).
People with a high need for achievement seek to excel and thus tend to avoid both low-risk and high-risk situations. Achievers avoid low-risk situations because the easily attained success is not a genuine achievement (Evans et al, 2000). In high-risk projects, achievers see the outcome as one of chance rather than one's own effort. High need for achievement individuals prefers work that has a moderate probability of success. Achievers need regular feedback in order to monitor the progress of their achievements. They prefer either to work alone or with other high achievers (Martin et al, 2007).
Those with a high need for affiliation need harmonious relationships with other people and need to feel accepted by other people. They tend to conform to the norms of their work group. High need for affiliation individuals prefers work that provides significant personal interaction. They perform well in customer service and client interaction situations (Martin et al, 2007).
A person's need for power can be one of two types - personal and institutional. Those who need personal power want to direct others, and this need often is perceived as undesirable (Martin et al, 2007). Persons who need institutional power or social power want to organize the efforts of others to further the goals of the organization. Managers with a high need for institutional power tend to be more effective than those with a high need for personal power (Evans et al, 2000).
Leadership has been described as the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. Alan Keith of Genentech states that, "Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen"(Williams et al 2006). According to Ken Ogbonnia, "effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals"(Bolden et al 2003). According to Ann Marie E. McSwain, "leadership is about capacity: the capacity of leaders to listen and observe, to use their expertise as a starting point to encourage dialogue between all levels of decision-making, to establish processes and transparency in decision-making, to articulate their own values and visions clearly but not impose them. Leadership is about setting and not just reacting to agendas, identifying problems, and initiating change that makes for substantive improvement rather than managing change" (Adair et al 2004).
2.5.1 Leadership theories
126.96.36.199 Trait Theory
The trait theory assumes that people inherit certain qualities and traits that make them better suited to leadership (Williams et al 2006). Trait theories often identify particular personality or behavioral characteristics shared by leaders. Stogdill (1974) identified the following traits and skills as critical to leaders (Bolden et al 2003).
McCall and Lombardo (1983) researched both success and failure identified four primary traits by which leaders could succeed: (Adair et al 2004)
- Emotional stability and composure: Calm, confident and predictable, particularly when under stress.
- Admitting error: Owning up to mistakes, rather than putting energy into covering up.
- Good interpersonal skills: Able to communicate and persuade others without resort to negative or coercive tactics.
- Intellectual breadth: Able to understand a wide range of areas, rather than having a narrow (and narrow-minded) area of expertise (Evans 2006).
188.8.131.52. Behavioral and styles theory
Logically, behavioral theory complements the flaws in trait theory because putting together what leader are naturally and what they do seem to pretty much encompass every dimensions of leadership(Bolden et al 2003). One important appeal of behavioral theory is that if we know what leaders do, then it is possible to teach people leadership. So in theory everyone is capable of become a leader if they learn leadership properly. The leadership style that works in one situation may not work at all in another situation (Adair et al 2004). Behavioral theories of leadership are based upon the belief that great leaders are made, not born. Rooted in behaviorism, this leadership theory focuses on the actions of leaders, not on mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation. The managerial grid model is also based on a behavioral theory. The model was developed by Robert Blake and Jane Mouton in 1964 and suggests five different leadership styles, based on the leaders' concern for people and their concern for goal achievement (Adair et al 2004).
184.108.40.206 Situational and Contingency theory
Situational theory assumes that different situations call for different characteristics; according to this group of theories, no single optimal psychographic profile of a leader exists. According to the theory, "what an individual actually does when acting as a leader is in large part dependent upon characteristics of the situation in which he functions (Bolden et al, 2003). Situational theories propose that leaders choose the best course of action based upon situational variable. Different styles of leadership may be more appropriate for certain types of decision-making (Peter et al, 2002).
Contingency theories are a class of behavioral theory that contends that there is no one best way of leading and that a leadership style that is effective in some situations may not be successful in others. An effect of this is that leaders who are very effective at one place and time may become unsuccessful either when transplanted to another situation or when the factors around them change. Contingency theory is similar to situational theory in that there is an assumption of no simple one right way (Bolden et al. 2003). The main difference is that situational theory tends to focus more on the behaviors that the leader should adopt, given situational factors whereas contingency theory takes a broader view that includes contingent factors about leader capability and other variables within the situation (Peter et al, 2002).
2.5.2 Kurt Lewin`s Leadership styles
Leadership styles refer to a leader's behavior. It is the result of the philosophy, personality and experience of the leader. Kurt Lewin had identified three main leadership styles according to their studies (Peter et al, 2002).
Autocratic leadership style
Autocratic leaders centralize all decision-making power in the leader. They give direct orders and directives. Communication is often one-way, and the leaders do not seek any suggestions from subordinates (Peter et al, 2002). This leadership style will potentially work best, when there is no need for input, and when any input would not strengthen the outcomes of the decision. The advantage of the leadership style is that it enables a quick decision-making process. Likewise, this leadership style may motivate the respective leader, who will be powerful enough to control employees and issue orders autocratically. The drawbacks of this leadership style could e.g. be that subordinates would get frustrated by the autocratic ways of decision-making, and that a given decision may not be as successful without the involvement and input from the subordinates (Peter et al, 2002).
Democratic leadership style
Democratic leaders often involve subordinates and groups in the decision-making. The respective leader will have the final say, but only after having consulted the subordinates. This leadership will potentially be most feasible when leaders do not have full insight into the consequences of a specific decision, and when an involvement of subordinates may strengthen the outcome of the decision. The advantage of this leadership style could e.g. be that subordinates will feel more motivated, and that any given decision will be enriched by the knowledge derived from the consultation. The drawbacks could e.g. be that decision making is too slow, and that it becomes difficult to reach a consensus on what is the right solution (Manuel et al, 2006).
Laissez-faire leadership style
Laissez-faire leaders minimize their involvement in the decision-making, and let the subordinates decide on issues for themselves. This leadership style will potentially be most feasible when subordinates are fully competent to make their own decisions, and when the leader does not have the adequate understanding of a given decisional problems. The advantage of this style is e.g. that subordinates get all the decision-making power to make decisions, so that they will be enabled to make sound decisions within their realm of expertise. Likewise, subordinates may feel motivated by this devolution of power, which may enrich their jobs. The drawbacks of this leadership style could e.g. be that subordinates are not coordinated, and that work may be unstructured (Wooden et al, 2005).
This chapter will clearly explains the basic research methods held in a professional research. This will give a clear view about different types of research methods and also it is mentioning about which method is suitable for this particular research with proper reasons.
3.2 Research Methodology Paradigm
A paradigm is a perspective based on a set of assumptions, concepts, and values that are held by a community or researchers. For the most of the 20th century the quantitative paradigm was dominant. During the 1980s, the qualitative paradigm came of age as an alternative to the quantitative paradigm, and it was often conceptualized as the polar opposite of quantitative research. Finally, although the modern roots of mixed research go back to the late 1950s. At the same time, mixed research has been conducted by practicing researchers throughout the history of research.
3.2.1 Quantitative Research
In the social sciences, quantitative research refers to the systematic empirical investigation of quantitative properties and phenomena and their relationships. The objective of quantitative research is to develop and employ mathematical models, theories and/or hypotheses pertaining to phenomena. The process of measurement is central to quantitative research because it provides the fundamental connection between empirical observation and mathematical expression of quantitative relationships.
Quantitative research is used widely in social sciences such as sociology, anthropology, and political science. Research in mathematical sciences such as physics is also 'quantitative' by definition, though this use of the term differs in context. In the social sciences, the term relates to empirical methods, originating in both philosophical positivism and the history of statistics, which contrast qualitative research methods. Quantitative methods are research techniques that are used to gather quantitative data - information dealing with numbers and anything that is measurable. Statistics, tables and graphs, are often used to present the results of these methods. There are mainly two types of quantitative research methods, experimental and non-experimental research methods.
220.127.116.11 Non Experimental Research
In contrast to experimental research, non experimental research involves variables that are not manipulated by the researcher and instead are studied as they exist. One reason for using non experimental research is that many variables of interest in social science cannot be manipulated because they are attribute variables, such as gender, socioeconomic status, learning style, or any other personal characteristic or trait. For example, a researcher cannot randomly place individuals into different groups based on gender or learning style because these are naturally existing attributes. Another reason to use non experimental research is that, in some cases, it would be unethical to randomly assign individuals to different treatment conditions. A classic example of this is that one could not study the effects of smoking by randomly assigning individuals to either a smoking or a nonsmoking group for a given number of years. The only ethical way to investigate the potential effects of smoking would be to identify a group of smokers and a group of nonsmokers and compare them for differences in their current state of health. The researcher, however, would also need to take other variables into account, such as how long people had smoked, their gender, age, and general health level. To do so would be important because the researcher cannot take for granted that the groups are comparable in aspects other than smoking behavior. This is in contrast to experimental groups, which, due to the process of random assignment, start out equal in all respects except for the treatment condition in which they are placed. In non experimental research, groups based on different traits or on self-selection, such as being or not being a smoker, may differ for any number of reasons other than the variable under investigation. Therefore, in non experimental studies, one cannot be as certain as in experimental studies that outcome differences are due to the independent variable
under investigation. The researcher needs to consider possible alternative explanations, to jointly analyze several variables, and to present conclusions without making definitive causal statements. There are mainly three types of non-experimental research, they are
18.104.22.168.1 Descriptive Research
Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for validity. The description is used for frequencies, averages and other statistical calculations. Often the best approach, prior to writing descriptive research, is to conduct a survey investigation. In short descriptive research deals with everything that can be counted and studied. But there are always restrictions to that. Cross-sectional surveys involve the collection of data from selected individuals in a single time period. Longitudinal surveys involve data collection at two or more times in order to measure changes over time.
Steps involved in descriptive research
- Stating the problem
- Selecting the participants
- Constructing the instruments
- Validating the instruments
- Pre testing the instruments
- Following up
- Dealing with non responses
- Analyzing results
22.214.171.124.2 Correlational Research
Correlational research involves the collection of two variables, usually both on the same individual. This research method include determining the existence of a relationship before more advanced research is done, predicting an individual predicting individual's score on one variable based on their score on another variable. The sign of the correlation coefficient of indicates the direction of the relationship. A plus sign (positive correlation) indicates that (as the score on one variable increases, the individual`s score on the other variable also tends to increase. A minus sign (negative correlation) indicates (that as the score on one variable increases, the individual's score on the other variable tends to decrease .Remember a correlation of -0.92 is every bit as strong as a correlation of +0.92.
steps involved in a correlational study
- Selecting the problem
- Selecting the participants
- Selecting the measurement instrument
- Determining the design and procedure details
- Collecting the data
- Analyzing and interpreting the data analyzing data
126.96.36.199 Experimental Research
The purpose of experimental research is to study cause and effect relationships. Its defining characteristic is active manipulation of an independent variable (i.e., it is only in experimental research that "manipulation" is present). Also, random assignment (which creates "equivalent" groups) is used in the strongest experimental research designs. The experimental method is usually taken to be the most scientific of all methods, the 'method of choice'. The main problem with all the non-experimental methods is lack of control over the situation. The experimental method is a means of trying to overcome this problem. The experiment is sometimes described as the cornerstone of psychology: This is partly due to the central role experiments play in many of the physical sciences and also to psychology's historical view of itself as a science. A considerable amount of psychological research uses the experimental method. An experiment is a study of cause and effect. It differs from non-experimental methods in that it involves the deliberate manipulation of one variable, while trying to keep all other variables constant.
Steps involved in experimental research
- Selecting and defining the problem
- Selecting participants and measurement instruments
- Selecting the design
- Executing the procedures
- Analyzing data
- Formulating conclusions
3.2.1 Qualitative Research
Qualitative research is a type of scientific research. In general terms, scientific research consists of an investigation that:
- seeks answers to a question
- systematically uses a predefined set of procedures to answer the question
- collects evidence
- produces findings that were not determined in advance
- produces findings that are applicable beyond the immediate boundaries of the study
Qualitative research shares these characteristics. Additionally, it seeks to understand a given research problem or topic from the perspectives of the local population it involves. Qualitative research is especially effective in obtaining culturally specific information about the values, opinions, behaviors, and social contexts of particular populations. Different types of qualitative research are
Phenomenology - a form of qualitative research in which the researcher attempts to understand how one or more individuals experience a phenomenon. For example, you might interview 20 widows and ask them to describe their experiences of the deaths of their husbands.
Ethnography - is the form of qualitative research that focuses on describing the culture of a group of people. Note that a culture is the shared attitudes, values, norms, practices, language, and material things of a group of people. For an example of ethnography, you might decide to go and live in a Mohawk community and study the culture and their educational practices.
Case study research - is a form of qualitative research that is focused on providing a detailed account of one or more cases. For an example, you might study a classroom that was given a new curriculum for technology use.
Grounded theory - is a qualitative approach to generating and developing a theory form data that the researcher collects. For an example, you might collect data from parents who have pulled their children out of public schools and develop a theory to explain how and why this phenomenon occurs, ultimately developing a theory of school pull-out.
Historical research - research about events that occurred in the past. An example, you might study the use of corporeal punishment in schools in the 19th century.
3.2.3 Comparing Quantitative and Qualitative Research
Quantitative and qualitative research methods differ primarily in:
- their analytical objectives
- the types of questions they pose
- the types of data collection instruments they use
- the forms of data they produce
- the degree of flexibility built into study design
The key difference between quantitative and qualitative methods is their flexibility. Generally, quantitative methods are fairly inflexible. With quantitative methods such as surveys and questionnaires, for example, researchers ask all participants identical questions in the same order. The response categories from which participants may choose are "closed-ended" or fixed. The advantage of this inflexibility is that it allows for meaningful comparison of responses across participants and study sites. However, it requires a thorough understanding of the important questions to ask, the best way to ask them, and the range of possible responses.
Qualitative methods are typically more flexible - that is, they allow greater spontaneity and adaptation of the interaction between the researcher and the study participant. For example, qualitative methods ask mostly "open-ended" questions that are not necessarily worded in exactly the same way with each participant. With open-ended questions, participants are free to respond in their own words, and these responses tend to be more complex than simply "yes" or "no."
In addition, with qualitative methods, the relationship between the researcher and the participant is often less formal than in quantitative research. Participants have the opportunity to respond more elaborately and in greater detail than is typically the case with quantitative methods. In turn, researchers have the opportunity to respond immediately to what participants say by tailoring subsequent questions to information the participant has provided.
3.2.4 Mixed research method
Mixed research is a general type of research (it's one of the three paradigms) in which quantitative and qualitative methods, techniques, or other paradigm characteristics are mixed in one overall study. Now the two major types of mixed research are distinguished: mixed method versus mixed model research.
Mixed method research - is research in which the researcher uses the qualitative research paradigm for one phase of a research study and the quantitative research paradigm for another phase of the study. For example, a researcher might conduct an experiment (quantitative) and after the experiment conduct an interview study with the participants (qualitative) to see how they viewed the experiment and to see if they agreed with the results. Mixed method research is like conducting two mini-studies within one overall research study.
Mixed model research - is research in which the researcher mixes both qualitative and quantitative research approaches within a stage of the study or across two of the stages of the research process. For example, a researcher might conduct a survey and use a questionnaire that is composed of multiple closed-ended or quantitative type items as well as several open-ended or qualitative type items. For another example, a researcher might collect qualitative data but then try to quantify the data.
Advantages of mixed research
- Perhaps the major goal for researcher who design and conduct mixed research is to follow the fundamental principle of mixed research. According to this principle, the researcher should mix quantitative and qualitative research methods, procedures, and paradigm characteristics in a way that the resulting mixture or combination has complementary strengths and no overlapping weaknesses.
- The use of multiple methods or approaches to research works the same way.
- When different approaches are used to focus on the same phenomenon and they provide the same result, you have "corroboration" which means you have superior evidence for the result. Other important reasons for doing mixed research are to complement one set of results with another, to expand a set of results, or to discover something that would have been missed if only a quantitative or a qualitative approach had been used.
- Some researchers like to conduct mixed research in a single study, and this is what is truly called mixed research. However, it is interesting to note that virtually all research literatures would be mixed at the aggregate level, even if no single researcher uses mixed research. That's because there will usually be some quantitative and some qualitative research studies in a research literature.
The above mentioned all are the basic methods of research used in a international dissertations. The next step in this dissertation is to find out which of the above method is apt for this particular research. Considering the structure of the dissertation, the most suitable method which will furnish this research is the mixed research method. This method is a combination of qualitative and quantitative methods of research. The main plan to complete this research is to collect the data from books and journals as a theory part that have already written and after that to collect information from managers in this company through interview as a practical part.
By completing those two sections, the next step will be combining the theoretical and the practical part. For collecting information from managers, a questioner is prepared with open ended questions. These questions are asked to two managers in the organization. After collecting the information from the managers an analyzing should be taking place with those two managers and then the finite response should be compare with the theoretical part that already had collected. A copy of the questioner is also enclosed in this dissertation.
The data analyzing should be taken place as a separate section, so it will be clear that how the response from the managers and the theoretical part of this research matches.
This chapter deals with the combination of both the theoretical and practical part of this research. In this section the data collected in both the section is analyzing. The structure of this chapter is like that, the data collected from managers through interviews is mentioned by question vise after that, that data will be analyze with the data that collected from books and journals.
4.2 ANALYZING SECTION
As mentioned earlier the analysis of this section should be taking place question vice.
The first question that mentioned in the questioner is about the main strength of the company that makes them more competitive. The manager's response for this question is like, ExxonMobil is one the US largest oil company and also its one of the top five oil company in the world. So the probably the competition should be very high. According to David, the main strength of the company is its market position. The company holds a good market position globally and that makes the company more competitive than others. He continues as the company owns a good financial position in the market and that two factors make the company more competitive than others. Another manager of the company mostly agree with this fact, but he added some more points along with that. The main point he added in that question is about the R&D department of the company. According to him, the R&D department of the company is strong and has the ability to solve all technical problems. He also added that the technological development of the company also makes Exxon Mobil differ from others. These are the main responses that received from managers.
As the data collected from mangers are analyzed with the theoretical part of this dissertation, the interesting thing in that is, the response from both the section seems same. On the basis of that its easy to conclude that the market position and the R&D department of Exxon Mobil makes them to gain more competitive advantage over their competitors. The company owns a top five position for past few years because of their keen development in each and every department. The analysis of first question is completed and the proper reason is concluded as well.
The second question deals with a particular company weakness. The question explains the mangers opinion about employee shift break. The company got lots of strength and positives but one of the drawbacks of the company is employee's shift break. In ESSO, a working shift is of eight hours. In that eight hours there will be no break for the employee, this question related to that. For the question asked, one of the responses got from a manager is that, it is not true that there is no break in a shift of eight hours. With respect to the company policy there is half an hour break for every single shift. But what happens is probably for small stores there will be only one sales advisor at a time for a single shift. So that's not quite good to close the store for half an hour and give a break for the employee. Also the employee will not be busy all the time, definitely he or she will get a relaxation time. That relaxation time should be taken into account as break and the employee is paid for that as well.
The next response got is somewhat same like the first one but there is some difference as well. The second response explains the fact that the employee is getting a shift break of minimum fifteen minutes in every single shift, but only in the basis of there should be two or more sales advisors at a time. So on that occasion, employee will get a shift break. These are the two responses collected for this question which is almost same but defined in different manner. The overall response for this question is that there is a half an hour shift break for every single for every single employee, but the way that available is different. As the collection of theoretical part of this dissertation, it is mentioned about the employee problems in the weakness of the company. The employee shift break can also be taken into account as a company weakness.
The third question explains about the opportunities that company provided by the company for a career growth of an employee. The company Exxon Mobil is really supportive in the fact of employee career growth. The company will support the employees who have the qualification for upgrade is definitely promoted if he or she wishes so. The response fort this question is quite a positive one. The first response that got for this question is that the company will really support the career growth. After all the company have a concept of grow up the ladder, that means the employees who wish to grow in the company is welcomed most. The company will give freedom for the employees to think individually and he or she can grow up in the company if he or she have the wish to do so and proper qualification to furnish the post he or she wish to do so. The opportunities that cleared from the response from both the managers is to think individually. That means it's the employees wish to grow up or not, and if so to what extent as