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Every organization requires planning of activities, organization of resources, establishment of communication system, leading and motivation of people, and control of operations for the realization of its goals or objective Management is necessary for all the organizations irrespective of its size, nature and functions. The concept of management is not restricted to business organization but even non-business organization needs to manage its functions. Management is a pervasive and universally accepted function. No organization can work smoothly and efficiently without management. "Management consists of getting things done through others". A manager one who accomplishes organizational objectives by directing the efforts of others.
It is the responsibility of Management to motivate its employees for higher productivity and low absenteeism. Management can motivate its employees on various bases. Firstly, motivation may be positive or negative. Positive motivation is the process of attempting to influence the employees' behavior through the possibility of reward. Negative motivation is based on fear, i.e., demotion, lay off, etc. The second classification relates to extrinsic and intrinsic motivation. Extrinsic motivators arise away from the job. They do not occur on the job. These factors include wages, fringe benefits, medical reimbursement, etc. Thus, they are generally associated with financial incentives. But intrinsic motivators occur on the job and provide satisfaction during the performance of work activity itself. Intrinsic motivators include recognition, status, authority, participation, etc.
Lastly, motivators may be financial and non-financial. Financial motivators are those which are associated with money. They include wages and salaries, fringe benefits, bonus, retirement benefits, etc. Non-financial motivators are those which are not associated with monetary rewards. They include intangible incentives like ego-satisfaction, self-actualization and responsibility.
This electrical goods manufacturing company is providing fringe benefits and has liberal policies but still facing low productivity and high absenteeism. Let's know what fringe benefits are.
Fringe Benefits= "Fringe" benefits are those monetary and non-monetary benefits that are given to the employees during and post-employment period, and are connected with employment but not with the employee's contribution to the organization. The term "fringe benefits" covers bonus, social security measures, retirement benefits like provident fund, gratuity, pension, workmen's compensation, housing, medical, canteen, cooperative credit, consumer stores, educational facilities, recreational facilities and so on.
Objectives of Fringe Benefits=
To create and improve sound industrial relations
To boost up employees morale.
To motivate the employees by identifying and satisfying their unsatisfied needs.
To provide qualitative work environment and work life.
To provide security to the employees against social risks like old age benefits and maturity benefits.
To protect the health of employees and to provide safety to the employees against accidents.
To promote employee's welfare by providing welfare measures like recreation facilities.
To create a sense of belongingness among employees and to retain them. Hence, fringe benefits are called golden handcuffs.
To meet requirements of various legislations relating to fringe benefits.
This manufacturing unit is providing these benefits but still facing low productivity and high absenteeism. From my point of view, the manufacturing unit should adopt the following measures:
Carrot and Stick Approach= Traditionally, management has resorted to be autocratic. This form of motivation in industry emphasizes authority and economic rewards. This approach consists of forcing people to work by threatening to punish or dismiss them or to cut their rewards if they do not work. The assumption is that people would work if they are driven by the fear of punishment. To prevent people from going away from the work, there must be close supervision. Management must spell out every rule and give the workers the narrowest range of direction. This approach paid off fairly well in the early days of industrial revolution. It is because needs for food, clothing and shelter were paramount. This approach is known ac 'Carrot and Stick' approach.
Financial Incentives= It can offer the following financial incentives:
Co partnership/Stock Option= Under these incentives schemes, employees are offered company shares at a set price which is lower than market price. Sometimes, management may allot shares in line of various incentives payable in cash. The allotment of shares creates a feeling of ownership to the employees and makes them to contribute for the growth of the organization. In Infosys, the scheme of stock option has been implemented as a part of managerial compensation.
Profit Sharing= Profit sharing is meant to provide a share to employees in the profits of the organization. This serves to motivate the employees to improve their performance and contribute to increase in profits.
Productivity Linked Wage Incentives=Several wage incentives plans aim at linking payment of wages to increase productivity at individual or group level.
Non- Financial Incentives= Such incentives can not be measured in terms of money. They are concerned with the satisfaction of social and psychological needs of the employees. These needs cannot be satisfied by money alone. They can be satisfied by non-monetary incentives which may include the following:
Status= Status refers to rank, authority, responsibility, recognition and prestige related to job. By offering higher status or rank in the organization managers can motivate employees having esteem and self- actualization need active in them.
Employees' Participation= It means involving employees in deciding of the issues related to them. In many companies, these programmes are in practice in the form of Joint Management committees, work committees, canteen committees, etc. A scheme of workers' participation in management is devised to ensure effective consultation with workers on points, which ultimately concern them. The notion make the workers' feel that they have better understanding of the industrial process in which they take part and gives them a sense of direct participation in industrial decisions. The workers must be increasingly associated with the management of industrial undertakings so that they develop an awareness of the problems of industry and begin to feel that they have a positive contribution towards the goal of business organization. The principle of participation seeks to meet the psychological needs of the workers, bring them closer to the management, promotes their interest in self-education, gives them an insight into the economic and technical conditions and the purpose of the undertaking where they work and serves to bridge the gulf between the management and the workers.
There are three objects of the scheme of workers' participation in management-
Economic Object= The foremost object of workers' participation is to increase the production and the productivity of the workers by improving the industrial and human relations in industry. The irrational or destructive attitude of workers is replaced by constructive and rational thinking. The system takes the 'maximum economic welfare' instead of 'maximum profit' as one of the motives of industrial production. Job satisfaction will bring about increased production and then higher profits to the industry.
Social Object= The worker being a human being is a social being also. The purpose of this system is to get the workers a respectable status in the society. It is a great achievement for them. It assures the human dignity because they become a partner in the gains of productivity. It can be reflected in terms of maintaining healthy industrial relations by reducing industrial strifes and creating positive conditions in which industrial harmony and place can grow.
Psychological Object= The main purpose of this system is to bring about a change in the attitude of the workers. Up till now, they regard themselves a machine only works when desired and asks for nothing. If workers are given due participation in management, they will think themselves pat and parcel of the unit. This sense of loyalty can only be promoted through the changing attitude of employers towards labor. This system will bring a basic change in the thinking of the workers. They shall put themselves in the production. Psychologically, workers will accept their responsibility in an activity because they feel themselves the partners in taking the decision on the matters concerning them and they will like to see it work successfully. Participation makes them a responsible employee.
Benefits of Workers' Participation=
Eliminating Industrial Disputes=As the workers become the partners of the industry and take part in the decision-making they extend full cooperation to the management in carrying out the decision. They behave a sense of loyalty and better understanding. The possibility of dispute based on irrational grounds is reduced to the minimum.
Increase in Production= Cooperation of workers result in increased production. Better understanding and good relations are the pre-requisites of higher and better production. Production and productivity cannot be increased without effective cooperation of the workers. Increased production will benefit the employers' community and the workers.
No Resistance of Change= Change is generally resisted by the workers because every change is regarded by workers a threat to stability. But, if workers are given a right to participate in the decision-making bodies, they will adjust themselves to the changed environment and one the workers are taken into confidence introduction of change is very smooth.
Industrial Democracy= Industrial democracy means participation of all parties concerned or affected in the management of industries. When workers participate in the management true industrial democracy is established. Their ego will be satisfied and they will contribute something positive in the interest of the industry themselves and of the country because they can express themselves better.
Creativity of Employees can be spotted out= Participation offers an opportunity to intelligent employees to demonstrate their knowledge, skill, imitativeness as well as creativity. Highly capable persons having talent can be easily spotted out and offered due promotion. Thus, participation enables the management to capitalize the talent and ability of employees. Participation also offers an opportunity for the advancement of employees and of management executives.
No Outside Intervention= The employees become responsible for carrying out the decision and industrial disputes become negligible. No question of outside intervention arises in absence of any dispute.
Security of Service= Security of service is a great motivation for the
employees. If his job is secured, he can put maximum efforts to achieve the objectives of the enterprise. He will be free from all mental tensions and he will take greater interest in his work.
Employees Recognition Programme= Most people have a need for due
recognition of their performance. They feel that what they do should be recognized by others concerned. Recognition means acknowledgement with a show of appreciation. When such appreciation is given to work performed by employees, they feel motivated to perform work at higher level. Some examples of employees recognition are:
Congratulating the employees for good performance.
Displaying on the notice board or in the company newsletter about the achievement of employee.
Giving award or certificate for best performance.
Job Enrichment= Job Enrichment means increasing the contents of a job
leading to upgradation of responsibility scope and challenge in its performance. Executives prefer job enrichment because the job becomes more challenging. It increases the level of their motivation.
These measures will help this electronic goods manufacturing unit to increase its productivity and decrease the absenteeism of employees.