In this project I am going to talk about Performance management which I faced when I was doing job with Reliance Life Insurance as a sales manager. The sales job is based on performance based and a person should be high motivated to achieve the given targets if he is not motivated he will not perform well and this is a loss for him as well as for company also. I faced lots of problem at my work place because there was a big preacher of work and no time to do that and my advisor were not that much efficient to get good business for the company. There are different motivational problem whit advisor because of that as sales manager I faced problem some time I thought to quit the job because the level of work was not good. Reliance company triad to motivate his advisors by giving different training programs. Many people are facing the same problem at their work place and this is very important part of our life. There are some other problems which come in the performance management which leads to failure. In this project I will relate performance management with different motivation theories and problems in performance management, behaviour of the individual which affect this in different way. Finding the solution of motivation to perform well and what manager should do to motivate his employee to work hard.
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In sales job people are facing so much performance preacher and motivation is playing a big role to achieve the target and helping to improve their performance. Performance management is the how people are working to towards their objective (performance management). Objective can be short-term or annual; the important is how is the balance between defining what the organisation requires to be achieved and what is the motivation towards achieving target  (The motivation hand book, Hollyforde and Whiddett, pg- 217). Performance is based on individual behaviour. According Susan M. Heathfield "Performance management is a work environment which we create for those people who are enabled to perform beat as per their ability. Performance management starts with job with whole work system and its and when employee leave the job .In other word we can say the performance management is contribution of effective management by individual or team to achieve high level of organisation performance .overall we can say the performance management is important in every organization and to do it effectively motivation is very important. In my company this was the most critical situation at my job time.
My company was Reliance Life Insurance which deals in life insurance business. Company has many branches in India and many employees working in this company. As sales manager we have to make our own advisor to get business. Company started in 2006 with investment of 11 million dollar.
The organization structure of the company as branch level is Branch Manager is on the top level of the branch and then Sales manager and the Advisor. Branch manager take daily report from sales manager and the sales manager take business from the advisor and it's a tough marketing job to take business from the advisor because of the high competitive market. Sales manager has to motivate his advisor to get good business.
Sales job is a performance based job if you perform well you will get good inactive, rewards, promotion. You will get this if you achieve your given targets and if you are highly motivated.
The issue or Problems-
The insurance company itself passing through different advisor problems because only advisor get business from the market and they must be responsible for their work. To motivate advisor company followed the McGregor X theory of motivation. Advisor on the other hand suffered from the hygiene factor and to resolve this company use theory which given by the Frederick for motivation. The expectancy theory for high moral and there expectation from their work to increase business of the company. Take all issue of the advisor and apply different theory of motivation can help to improve performance.
THE X THEORY OF MOTIVATION BY MCGREGOR -
Always on Time
Marked to Standard
According to x theory of McGregor, average employee don't like to work because he is directed, controlled, corrected towards organization long-term goal. People try to work on that why so that they can avoid responsibility. They run from their responsibility because they don't get know the benefits of the good work.
In my company we facing there problem because of this system going on the X theory of McGregor and the company assume that advisor do not want to work because they were not trained and they were highly demotivated because lake of training and no clear organization goal. Advisor knows the plans but don't know how to explain this to others because of lake of communication skills. The management realise the situation and tried to resolve this by giving high training of business and motivation so that each advisor can contribute the same.
But there are some other problems which stopping them to do hard work and keep motivating them self and some theories which explain the problem of motivation at work place which are similar with my problem.
THE EXPECTANCY THEORY OF MOTIVATION-
The expectancy theory of motivation says that work react according to the force of environment. Course of action depends on person to person, perceived action lead people to choose their action and in the possible alternative people use rational choices. It's a subjective probability; the act of the person will lead to a certain outcome .
There are many factors that shows that weather a person perform as desired expectancy theory formulates this uncertainty as effort of performance expectancy, only hard work gives outcome. The second theory says that performance followed by the outcome. This outcome includes awards, promotion, pay increase and bonus. The third theory is valence. It has a range of value expressing the degree of avoidance or attraction which shows that the person is associate with the income. The function of motivation is F=V X I X E and this is based on assumptions .
The effect of valence in Reliance Life Insurance Company and by motivational point of view can say that there was low morale level in the advisor and on fair input by them. The expectancy level was also very low because there was no reward for the good work. If any advisor doing good job he got treated same as other low performer advisor. This behaviour increase dissatisfaction among the good advisors and they start thinking that if they are same as other then why they do hard work, it effect the company by low productivity because advisors start to avoid responsibility and search for other work in which they can earn more. Even company not giving that benefits which other company giving to their advisors. Then company start losing their advisors.
TWO FACTOR MOTIVATION THEORY BY HERZBERG-
American psychologist Frederick Herzberg develops the theory of job enrichment at first and it say the different factor between the job satisfaction and job dissatisfaction. The first factor is about motivator as known as job or content factor and the second factor is known as hygiene factor or organizational context factor. The advisor of the Reliance Company were unskilled and their work satisfaction dependent upon hygiene factor. Insurance company need to redesign the job to increase the business by motivation which lead the performance improvement, absence of hygiene factor and the reward system in the company and that's why the advisor were not satisfied with job. Advisor were not satisfied with this at all because other factor like socioeconomic, personal factor also affect this and the absence of hygiene factor like irregularity in commission, rewards etc. also there. The company policy in this mater was not good and the expectancy level of the sales manager and the advisor came down very low.
GOAL SETTING THEORY OF MOTIVATION OR TASK MOTIVATION THEORY
The immediate relationship between employees pay and performance is goal setting theory. There are different preposition in goal setting theory. This preposition lead certain specific goal which followed by motivational techniques.
According to E.A.Locke "More difficult goal results in higher level of performance then easy goals". High goal increase the performance level and give high motivation to go on.
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Specific goals produce higher level of performance than general goals. This goals shows performance. Specific goal give the opportunity to increase the skill and the batter way to achieve the goal.
This theory is the intention to make a certain task choice or to respond in a certain way.
Knowledge of result
For the effective goal setting the feedback is very important. As per the company point the management should know the result of their decision. Management take decision to improve the productivity and they take decision based on there competitor.
In my company high goals were there but without motivate the employee we can't achieve them. Employee behaviour is very much leading the success to achieve the goal. The above theories give the way to resolve the motivational problem at work place.
In many term organization behaviour is related with the motivation because employee behaviour shows his motivational but there are some question to know the management knowledge and the motivational theories.
What is organizational behaviour?
Why organizational study behaviour?
Organization behaviour gives the one of the mainstream approaches to the study the management and the organizations. This is a relation of management and effectiveness of the organization. People work in the organization and trained to carry out their specific job responsibility but this is a practical approach involve in learning weather it is sales, finance, marketing, or computers or whatever. Goal achievement depends on Organization behaviour. So we must know the goal difficulty .
Goal difficulty- Every employee adjusts with his ability to do the given task but if the worker employer relation is not good the worker motivation get low. And it becomes hard to perform well. Management should give clear goal which is clearly explained to employee. In my company goal was not clear because company high level employee never talk to them about the company goal.
Finding and Analysing
Different motivation theory, expectancy theory, Herzberg, and the goal setting theory suggest motivation techniques to motivate the employee and give the way to resolve the workplace problems.
In my company I faced different motivation problems with my advisors. In this report I relate these work problems with motivation theories. This problem relates with the reliance life insurance company and I am doing this to show the problems of the advisor and how these theories help to get out of this problems.
The management body of reliance life insurance facing problems with different the management follow the X theory of McGregor and the balance of expectancy was on the lowest level leading to no performance and there was no clear goal. But expectancy theory suggests that if the environment is good work will react the same and it will help to achieve the best goal of job. The Herzberg two factor theories say that different factor between the job satisfaction and job dissatisfaction. The first factor is you must satisfied with your job and the second is hygiene factor and reward system it says the there must be a reward system on good work which was missing in my company and it leads the low performance. Goal setting theory based on behaviour because it shows the direct relation between employee pay and performance but there should be a clear goal. If management set the clear goal and employee has handsome salary he will be more motivated and his performance will be high so this is a direct relation between this two factors. We can say that different motivational theories are to motivate all stages employee from shop level to management level and it help to improve the performance of the every employee. Management should work according to these motivation theories to get good output. If management work according to this motivation the company can get any target without any problem. In sales field the inceptive power is most important because many company believe now a days that money can easily motivate the employee so corporate companies giving incentive on achieving targets. To get this incentive employee work hard. The power of incentive shows in last year survey--
CORPORATE FAITH IN INCNTIVES POWER TO MOTIVATE EMPLOYEE
International research recognition and incentives team did survey on 800 companies in 2009 and in that 41% strongly agreed in incentives and the 50% agreed that to get morale booster incentives are very important. 27% with the strongly agreed and 48% agreed. 62% believed that it helps them to improve their performance and 64% believed that investment is a positive return for them.
This is also a very good example of motivation and now day's companies are realising of this power of motivation and management is working according to this.
REWARD SYSTEM IN COMPANY
The reward system comes in expectancy theory which formulated by vroom and developed in to a model in 1968 by Porter and Lawler. Reward can be given individual or in group for good work. The value of reward for both of them is a satisfaction from their work. It can act as like instrument to get valued outcome. Reward system very much helpful in my company because there was a performance based job so if some buddy performing well he should get reward. On other hand if somebody getting reward other try to do good job to get that reward so employee get motivate to work hard. Reward is a very effective tool to motivate the employee.
The investigation relating to above motivation matter can be take as management dysfunction. The management of my company failed at that time to signify the motivational need among the employee that time. There was a motivational problem with the advisor of my company. The hierarchy of my company not allowed to advisor to get trained and they become untrained advisor. This is because of lack of communication in between them. The upper management of my company make the policy for the employees. They made such a difficult schedule of work that we have no time to train them. The upper management wants the result but never think about the other thing and because of this the motivation of all of us was very low toward work. The management must keep in mind that they make policy in which employee can work and give some benefits to the good employee. Five general motivation technique-Incentive, facility at work, goal setting, reinforcement in positive way, and work participation have been very important to increase the productivity. The management itself make the goal and the force to improve the motivation was not there and the bonus system was also irregular. They take work from the advisor but never think that they are part of the main business and they must take care of them. For overall development motivation theories are very important and they give the solution to improve the productivity of work. If companies make their policy with motivational theories, they never face the motivational problem and employee love their work and do hard work to achieve any target.
The whole system of life insurance depends on the team work and every individual must contribute in that. As successful team and to get good outcome the insurance company need following ingredients-
Management must know the problems of the advisor and involve in resolving it. They must be supportive and try to motivate them in every time. Employee always like supportive management so he can express himself and if is facing any problem he can talk them without any hesitation.
Training is most important in field of sales and company should provide very good training to the advisors because it helps them to keep motivate them self. Trained employee has clear vision of this goal. He knows that where he is now and where he can be in the future if he do his work properly. Training gives the self confidence and power to face the outside challenge.
Effective and open communication always helpful in understand the thing. If there is a good communication in the company it helps to get the great achievement. It is very important that every employee communicate with his colleges and shear his knowledge so other employee can learn with his past experience. Communication makes the friendly environment at the work place.
Rewards and Incentives-
Management must give rewards on good work its help to motivate that person and the others also. Money always motivate employee as self motivation so company must give good incentive for achieving the targets. Reward help to know that which employee doing good job and sprat him from other employee. This makes other to work hard.
Participation in Work-
The advisor participation in achieving targets is very important. Management running different training and motivational programs so it is advisor duty to attend all important programs because this is for them only. If advisor expecting something from company so they do work according that. It is a two way process if they do work hard then they can expect form company to give reward to them.
Behaviour of the employee in the company shows that employee is hard worker or not. Is he want to learn or not. If employee is a hard working person he always motivates him sales and the other colleges. Behaviour of the employee takes him further in the future.