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In order to reduce principle agent problem, it is very important to tie employee pay with the firm performance and involve employees in decision-making process. In this way not only the employee ownership arrangements will reduce any problems accruing, but also it would increase the performance of the company. One of the most common objections to employee ownership incentive plans is the free rider problem. It arises due to the weak connection between an individual's performance and financial rewards, as the work team gets larger. As there seems no possible solution to the free rider problem, many researchers agree with Weitzman and Kruse;
"something more may be needed-something akin to developing a corporate culture that emphasizes company spirit, promotes group cooperation, encourages social enforcement mechanisms, and so forth" (1990: 100).
The key improving factors through employee ownership programs are the incentives, participation and work place environment. The incentives given to employees must be sufficient to motivate them, participation must be meaningful for employees to make critical decisions and environment provided should look closely at the free rider problem. Consistent with this, researches that have compared workers attitude under employee ownership give a mixed picture. Few of the research done have found out higher commitment, motivation and satisfaction among employee-owners, while according to other researches, there no significant difference before and after an employee buyout. Some researches suggest that organization identification and commitment are higher under employee ownership. However, results vary significantly from favourable to neutral on job motivation, satisfaction, employee absenteeism, turnover, grievances, injuries and tardiness.
A successful organization is the one that is able to cope with the changing needs of the its employees and make them feel an important part of the organization. It is the responsibility of the top management to have strong trust relationship with the lower level employees so that the employee work at their maximum capabilities. Organizations expect the workers to follow the rules and regulations of the firm and work accordingly. They need to keep in mind the standards set for them; the employee expects respect, good pay structure, safe working environment, fair treatment and secure career along with involvement in decision making process. The expectations of the employees and organizational heads vary from one firm to another. For the firms to address such expectations, it very important to have a thorough understanding of employee motivation.
According to a research done at Piketin Ressearch and Extension Center and Enterprise Center, there are certain factors affecting the motivation level of any employee. These factors include interesting work, good pay structure, appreciation of work done, job security, decent working conditions, , promotions and growth opportunities, tactful discipline, being an important part of the organization, personal loyalties to workers, and sympathetic help with personal problems.
The article further relates these factors with Maslow's need-hierarchy. The top most ranked motivator is interesting work, which is also a self -actualizing factor. Second motivator is a good pay structure that is a physiological factor. Third is the appreciation factor that can also been seen as self-esteem. Fourth motivator is the job security that is the safety factor. Thus according to Maslow, out of all, the most important factors that must be satisfied first are interesting work, physiological, safety, social and esteem factors. If managers wished to address the second most important motivational factor of centers' employees, good pay, increased pay would suffice. Contrary to what Maslow's theory suggests, the range of motivational factors are mixed in this study. Maslow's conclusions that lower level motivational factors must be met before ascending to the next level were not confirmed by this study.
According to another study conducted by Kovach (1987), the order of motivational factors for the industrial employees was interesting work, appreciation of the work done and feeling an important part of the organization. On the other hand, another study conducted by Harpaz (1990) ranked the motivational factors as interesting work on number one, decent pay structure as number two and job security as the third important factor to motivate the employees of the organisation. Pay structure was not ranked as an important motivational factor by Kovach, however, it was ranked second by Harpaz. Similarly appreciation of work done was not ranked as an important motivational factor by Harpaz, however, it was tanked second by Kovach. This proves that the motivation of employees differ amongst various types of work done in numerous organizations. However, interesting work is considered as the most important factor for employee motivation in almost any kind of work place.
According to Butkus and Green (1999), motivation is derived from the word 'motivate,' which means to persuade for satisfying a need. Baron (1983) defined motivation in his own words. According to Baron;
"Motivation is a set of process concerned with a kid of force that energizes behaviour and directs it towards achieving some specific goals."
Many writers have suggested motivation as the goal directed behaviour. According to Kreitner and Kinicki (2001),
"those psychological processes that cause the stimulation, persistence of voluntary actions that are goal directed".
In other words, a motivated individual has the awareness of achieving a specific goal in some specific way and so he puts his effort in order to achieve such goal. Therefore, the role of the managers is to guide the lower level employees about organizational agendas of how to achieve its objectives,
In another terms, a motivated person have the awareness of specific goals must be achieved in specific ways; therefore he/she directs its effort to achieve such goals (Nel et al., 2001). It means that motivated person is best fit for the goals that he/she wants to achieve as he/she is fully aware of its assumptions.
It is very important to differentiate between movement and motivation. Movement does the work for compensation and remuneration whereas motivation is the total involvement of an individual in the work given out to him. Movement can make an employee compel to do the work whereas motivation is self realized jubilant of carrying out different task. The researcher emphasized on motivation and not movement as motivation is the prerequisite for success because the person is happy and satisfied with the work irrespective of the compensation. He carries out the task voluntarily without any greed. Motivation is the reason for the accomplishment of individual in any aspect of work. Once the managers understand and agree that employees are naturally motivated, they need to provide a decent environment for the employees to enhance their motivation.
Importance of Motivation
People motivate themselves to satisfy their own personal goals, and therefore they invest and give their best in achieving the organizational objectives in order to meet with their personal goals also. It would mean that organisational goals are linked to personal goals as well.
The managers job is to get work done from the employees under him but it is only possible if the workers are self motivated rather than directed. The managers involvement is not that important in the motivation of employees, in fact the workers should motivate themselves to work hard.
Irrespective of being skilled, unskilled or professional workforce, the major problem organizations face is the lack of motivation by the employees. It is also one of the major issues faced by commercial banks. In this competitive world, it is a challenge for the administration to keep the employees motivated so that they offer efficient services to the customers. The employee's enthusiastic, energetic behaviour and their motivation towards their task play a pivotal role in successes of any organization.
One of the functions of human resource manager is to ensure employee's workplace motivation. They should assist the manager in keeping the workers satisfied with their jobs. The service manager should be able to develop motivated workers and encourage their work morale. If the employees are unsatisfied and unhappy about their workplace, their performance is usually poor.
Levels of Employee Motivation
Generally, there are three levels of employee's motivations.
Direction of an employees' behaviour; it is the behaviour that a person choose to perform.
Level of effort; it relates to how much effort can be put by the person to behave in a certain way
Level of persistence; it related to person's willingness to behave despite obstacles faced.
Every employee has a different background in terms of education, experiences and family class, however the primary interest of all is to satisfy their personal need and desires. They want to satisfy their basic necessities of life, linked to survival and security along with a desire to generate positive feelings about oneself and to be self fulfilled. Most employees want
fair company policies in matters affecting them;
favourable job status
management they can be trusted
good working relationships with senior managers and co-workers;
decent salaries and good working environment;
adequate job security
The article measures the effect of Human Resource Strategies on job satisfaction, specifically in Pakistan. It is mentioned in the article salary, promotion and training has positive effect on job satisfaction, however in case of Pakistan, the employees give more importance to pay and promotion rather than training. Significant differences were found between men and women job satisfaction level. The service based industry is going through numerous changes for the last couple of years. Due to these changes, the transactions are increasing along with the range of services provided. As a result, different sectors such as educational institutes, telecommunication firms, banks are experiencing high turnover.