This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
Motivation is the key focus area in the organisation today. Many business managers today are aware of the effects that motivation does have on their business and it is important that they learn and understand the factors that determine positive motivation in the organisation. This is an important area in today's business world. Motivation is something that is approached differently by different business and responsibility of its integration lies with all immediate supervisor of staff. And motivation is a reflection of the level of energy, commitment and creativity that employee brings to their jobs in the organisation. The rapid evolution and changes in modern environment, employers now have to manage employees while keeping the essence of motivation in mind. Motivated employees are crucial to create a sustainable competitive advantage for the company (Bruno S. Frey, Margit Osterloh 2002).
The Topic Chosen
I have chosen the topic 6 as the as the area of my research and it requires me to analysis of key factors or indicators of employees in the organisation. This project report is mainly conducted to identify the factors which will motivate employees in the organisation. Motivation theories have been applied to explain and interpret overall employee's attitude towards the organisation.
Reason for choosing this topic
Motivation affects on the output of the business in terms of both quality and quantity. Organisation relies heavily on the efficiency of the employees to make sure that organisation has fulfilled the demand and achieved the objectives. Employees are the greatest assets and no matter how efficient technology and equipment is. There are many factors which are directly linked to human behaviour that affects their rate of motivation. Motivation basically deals with the psychology of people and it is crucial success of any organisation.
If the organisation made efficient motivational programme, the organisation can achieve the efficiency, and it will also develop the good organisational culture. Motivations can effects in the context of individual's mental health, productivity, turnover and absenteeism.
As I am a ACCA student, I wish to apply my knowledge, skills gained during my ACCA studies into real world company so that I can increase my experience in this area.
My main objectives and aim of conducting the research and analytical projects is to understand the important factor which is needed to motivate the employees and how it affects and helps to achieve overall organisation goal.
My main research objectives are:
A) To identify the key indicators which influence the employee's motivation and evaluate those indicators.
B) To understand the motivation theories and apply those theories with the research results.
C) To know about how the organisation dealing with the employees motivation and overall reaction of the employees.
E) To provide practical suggestion and recommendation for further improvement for organisation's motivation policies.
About the company
I have chosen the company is called Cinnovation Inc and also called Cinnovation Group. It is a BVI (British Virgin Island) Company. Cinnovation Group is a multi-dimensional conglomerate .The group was established in 1990 in Singapore. It provides world -class services and products in various fields such as Hotels& Resorts, Wildlife and in-bound Tourism, Aviation services, Real Estate, Financial Services and Fast Moving Consumer Goods (FMCG). Cinnovation Group is moving rapidly to establish regional principle office across the globe with a single purpose: To think globally and act locally (Cinnovation Incorporated- Corporate Profile, 2005)
Cinnovation is involved in the hospitality sector in various parts of the world such as China, and India. Cinnovation is also involved in the real estate sector in the Middle East with plans to foray into Indian Real Estate development. So far Cinnovation has achieved significant growth and diversification which is expected to significantly enhance revenue growth which launch of various new projects. Cinnovation has launched more than 15 projects to complete between 2010 to 2015. (Cinnovation Incorporated- Vision Mission, 2009)
2. Information Gathering
Information is a raw data which can be used to produce reliable analysis of the relevant topic of research. Information should be free from bias, I am aware of collecting relevant and reliable information from the employees to arrive in the better conclusion of my project. Primary and secondary researches which are information gathering technique have used to collect the relevant information for my research project.
2.1 Primary data
Primary data can be obtained from directly through questionnaire and interview .It can be applied for the purpose of analysis and interpretation. Researcher need to take great efforts in gathering reliable data in order to arrive in effective judgement. I have been used number of methods of collecting primary data including questionnaires, interviews and observation. Primary sources of information allows to access original information. A primary source requires the learner to interact with the source and extract information.
2.1.1 Survey Questionnaire
Survey is the collection of data from the given population for the purpose of analysis of particular issues.
As I am based in Singapore, I have limited time to take other overseas (eg, India) office employee's response in my survey. I have only taken the Singapore office employees responses. There was total of 21 employees except CEO who were given survey forms and 18 employees were returned the completed forms.
Survey is the most effective way of obtaining mass data from the target group. I have identified the target population to be the employees of "Cinnovation". This survey mainly focused on the motivation factors and overall attitude towards Cinnovation. The factors has been ranked from 1 to 10 (1 being the most important and 10 is least important).
The survey questionnaire has used as a primary tool in the data collection. The questions included in the questionnaire are composed mostly of the close-ended queries for easy manipulation of the data during analysis and interpretation (See Appendix A for the survey Questionnaire). Pre-printed survey form had been distributed among the employees before the lunch time taking authority by the Chief Executive Officer. The survey form has three main parts which has included the basic demographic characteristic of the respondents in the first part, second part has followed by the 8 key areas that were focused on the quantifying of opinions and attitude towards Cinnovation (being fully agree to fully disagree).And third part is ranking of motivation factors (1 being most important to 10 being less important). Motivating factor has been compared with the different motivation theories to interpret and explain the results.
Â 2.1.2 Interview
Interview is defined as a conversation between two or more people. Its main purpose is to understand employees behaviour rather than to measure them (BPP 2010) Face to face interview is one type of qualitative research which helps to collect the primary data which are more reliable evidence of opinion rather than collected isolated data.
Face to face Interview has been conducted with the Chief Executive Officer of the organisation. Interview allows respondents to voice out their thought, voice and attitude directly. The questions have been asked to the CEO as a company prospective to express his aspects regarding the motivation. (Please refer to the Appendix B for the transcript of the interview)
2.2 Secondary Data
The secondary data mainly consist of data and information collected from magazines, newspaper, books, encyclopaedia, reference material etc. Secondary sources are edited primary sources, second-hand versions. They represent someone else's thinking (Graphic.org)
2.2.1 References from library
The college library helped me vastly for gaining knowledge about the motivation factors and indicators. I borrowed books from National library of Singapore and read some articles from the magazines available there related to motivation. It greatly helped me to get wider varieties of information and choices to get the accurate information.
2.3 Limitation of gathering information
The procedures were adopted through sampling basis.18 respondent ware successfully returned the survey form out of 21. There were a number of limitations in the primary research that some of the respondents didn't answer some of the questions and some haven't responded at all.
Both the interview and survey have some limitations. Participants may present themselves in the way they want the interviewer to see them. ( Newman Barbara M & Newman R Philipp, 2008)
2.4 Ethical issues in information gathering
Ethics consists of moral principles and standards of conduct. Professional ethics extend beyond moral principles. While gathering information, ethical issues must certainly be taken into account. In this project, I have tried to be extremely careful to make sure that research does not bring in any issues which may caused any harm to anything related to the company. I have got the required permission from the company Chief Executive Officer to obtain information related to the company and I have assured that I will not disclose and misuse the information except my research purpose.
3.1 Concept and Definition of motivation
"Motivation is the process of attempting to influence others to do their work through the possibility of gain reward" (Edwin B. Flippo. 1971)
"Psychological forces that determines the direction of a person's behaviour in an organisation a person's level of efforts and a person's level of persistence "
(G. Jones and J. George, 2007)
Motivation can also define as a reflection of the level of energy and creativity that a company's employees bring to their jobs.
In the modern business environment , organisation are more concerned with organising human resources in such a way to get maximum performance and develop the skills of the employees with the fullest satisfaction. Effective utilisation of human resources helps to achieve organisation's objectives.
Employee motivation is one of the major issues faced by every organisation which is major task for every manager to motivate the lower level staff. Every manager has to make appropriate use of motivation to ensure that employees are willing to work with effective manner.
There are two forms of motivation, Intrinsic and Extrinsic motivation. Employees may work hard for one of two reasons: because they are interested in the work itself (intrinsic motivation) or because they are being paid (extrinsic motivation)
Intrinsic Motivation: It occurs when employees are internally motivated to do something because they think it is important. It refers to motivation that is driven by an interest and enjoyment in the job itself rather than any pressures from superiors.
Extrinsic motivation: Extrinsic motivation comes into play when a employee do something because of external factors like money and good grades, threat of punishment and coercion
3.2 Theories of Motivation
In recent years, there are many different views or theories have developed. The most common motivation theories have discussed below.
3.2.1 Maslow's-Hierarchy of Needs Theory
Abraham Maslow introduced the psychological needs of employees. He believed that human are governed by a hierarchy of physical and emotional needs (Norwood,1999) He put forward a theory that there are five levels of human needs which employees need to have fulfilled at work. Maslow's theory is that human needs are arranged in hierarchy composed of five categories. The highest level is self actualisation and lowest level needs are physiological which a thing to survival is basically needs.
All the needs are structured hierarchy, once employee satisfied lower level of needs; they would be motivated by having next need up in the hierarchy. If a person dying of hunger will be motivated to achieve a basic wages to buy a food before worrying about having secure job. Higher needs cannot be satisfied unless lower needs are fulfilled. When the lower needs are satisfied, higher needs emerged. Abraham Maslow's theory of human motivation applied to almost every aspects of individual and social life. (Frank.G.Goble 2004)
(Source: http://laswellonleadership.com/2010/10/25/maslow-on- leadership/500px- maslows_hierarchy_of_needs/)
1. Physiological needs: These are the lowest level of needs such as food, clothes and shelter. These physical needs must be equated with pay rate.
2. Safety: The second step of hierarchal need is safety. Individual wants to be safe from job, security against disease, injury in the workplace, protection, freedom from fear and anxiety.
3. Social belonging: When individual goes up the scale of needs, they feel the desire to work in a group and develop the sense of identification with a group. They want to interact with co-workers and working together with colleagues.
4. Self-Esteem: These needs include the desire for self - respect, status, recognition, prestige and respect from others in a work place.
5. Self Actualization- This is the top level of needs in Maslow's hierarchy. This includes self- realization, continuous self development, challenging job with creative task demands, advancement opportunities and advancement in work.
3.2.2 Herzberg's Two Factor Theory
Herzberg has introduced two types of factors in motivation. He constructed a two- dimensional paradigm of factors affecting people's attitudes about the work. Those factor that motivated them in the workplace were identified as factors such as achievement , advancement job recognition and responsibility that gave employees as incentive to work resulting in job satisfaction which are also referred to as 'motivators'. These motivators increase the job satisfaction and increased their efficiency.
The second factor is called hygiene factors which are related to working environment. Those were identified as a factor that prevented job dissatisfaction. He concluded that such factors as company policy, supervision, working conditions, and salary are hygiene factors rather than motivators. . (Herzberg F, 1959).
Opportunity for Advancement
Company policy and Administration
Table 3.2.2 (Herzberg's Theory of Motivators and Hygiene Factors)
These motivators (satisfiers) were associated with long-term positive effects in job performance while the hygiene factors (dissatisfies) consistently produced only short-term changes in job attitudes and performance.
There are some similarities between Herzberg's Theory and Maslow's theory. Both theories suggest that needs have to be satisfied for the employees to motivate. However Herzberg argue that only higher level of Maslow hierarchy (Self-actualisation, esteem needs) act as a motivator. The remaining needs can only cause if they are not addressed.
3.2.3 Vroom's Expectancy Theory
Victor H. Vroom's developed the Expectancy Theory in 1964. Vroom's tried to understand why employees want to behave in a certain way which helps managers to gain a better understanding of what motivate their employee to behave in certain way. Vroom's theory is based on the belief that employee efforts will lead to performance and performance will lead to rewards. Rewards can be either positive or negative (Victor Harold Vroom 1964)
The Expectancy Theory of motivation explains the behavioural process of individual. This theory introduces three variables within the expectancy theory which are valence (V), expectancy (E) and instrumentality (I).
Three components of Expectancy theory: Expectancy, Instrumentality, and Valence
1. Expectancy: Effort â†’ Performance (Eâ†’P)
2. Instrumentality: Performance â†’ Outcome (Pâ†’O)
3. Valence- V(R)
Employee can be motivated to performed better when there is a belief that the better performance will lead to good performance appraisal and this shall results into realization of personal goal in form of some rewards. (Nahavandi 1998)
3.2.4 Adams Equity theory:
John Stacey Adams developed the Equity Theory in 1963.This theory attempts to explain relational satisfaction in terms of perceptions of fail/unfair distributions of the resources within interpersonal relationships. The theory considered as one of the justice theories. In the organisation, employees seek to maintain equity between the inputs that they bring to a job and the outcomes that they receive from it against the perceived inputs and outcomes of others (Adams 1965). The belief is that people value fair treatment which causes them to be motivated to keep the fairness maintained within the relationship of their co-workers. The structure of equity in the workplace is based on the ratio of inputs to outcomes where inputs are the contribution made by the employees for the organisation.
This theory is a fair balance between an employee's inputs (hard work, skill level, tolerance) and an employee's outputs (salary, benefits, recognition). According to the theory finding the fair balance serves to ensure a string and productive relationship is achieved with employees. Employee compares her/his outcome ratio with contribution and benefits. (Source:wikipedia.org/wiki/Equity_theory)
3.2.5 McGregor's Theory
Douglas McGregor presented two opposite sets of assumption implicit in the most approaches to supervision which are called Theory X and Theory Y.
Theory-X: It assumes that employees dislike work and responsibility. Therefore they must be coerced, threatened and controlled to get them to make an effort towards achievement of organisation objectives. As a result, management believe that employees need to be closely supervised.
Theory-Y: This theory assumes that employees may ambitious and self-motivated. The average human being does not dislike work because it can be a source of satisfaction. Manager assumes that threat of punishment is not the only means of bringing about efforts towards organisational objectives. Employee can exercise self direction to achieve objectives to which they have committed (McGregor, 1960).
4. ANALYSIS AND FINDINGS
The statistical analysis is conducted using Microsoft Excel where the quantitative data are tabulated and evaluated. Survey results have been presented using charts and table. The information gained from the interview have been attempted to explain the results based on different motivation theories.
4.1 Demographic characteristics of the respondents
(Please refer to Appendix B for the detailed results of the survey)
Gender of the respondents
No. of Respondents (N)
The survey results shows that two third of the respondents are male (67%) and there is minority female participation (33%) in the organisation. It could be inferred that Cinnovation don't provide career opportunities to competitive individuals regardless of the genders.
No. of Respondents (N)
21-30 years old
31-40 years old
41-50 years old
51-60 years old
In terms of age of the respondents are almost more than three quarters (79%) of the total respondents comprise the adult group categorisation (31-60 years old) and the remaining participants are in between 21 to 30 years old. Normally, young age (21-30 years old) respondents can be fresh graduate and they may prefer immediate financial rewards rather than long term.
4.1.3 Civil Status
No. of Respondents (N)
The above chart show that more than half of the respondents ( 56%) are married and 17% of the respondents are indicated divorced and others categories ( e.g., widows) . 28% of the Employees claimed their status as single. From these research results shows that almost three-forth of the respondents (72%) have a high responsibility of meeting the needs of their immediate family members.
4.1.4 Years of employment in the company
Years of Employment
No. of Respondents (N)
1 year - 3 years
3 years - 5 years
more than 5 years
The higher percentage of respondents (44%) stated that they have less than one year of working experience in Cinnovation and employees who have gained one to three years of career experience (33%) in the organisation. However there are 23% of respondents who have at least more than three years of work in the Cinnovation. The findings from the results indicate that company facing high staff turnover and seems company is not focusing to minimise the recruitment cost.
4.2 Ranking of Motivating factors
The ranking of motivating factors have been presented using % basis where the higher percentage are most importance and lower percentage are least importance or low ranked factors. Based on the data collected from the survey, the results have been presented as follows:
(Please refer to Appendix B for the detailed breakdown of the survey and the transcript of the interview)
(Chart 4.2 Importance of motivation factors in Cinnovation)
4.2.1 Comparison with the Maslow's Hierarchy of Needs theory.
Based on the above figure (Chart 4.2), I found the clear link with the Maslow's hierarchical needs theory. Employee has high ranked the physiological needs in the hierarchical structure of Maslow's hierarchy. I have divided into two parts to interpret above Chart 4.2
High ranked Factors
As comparison of this research result with the Maslow's hierarchy of needs theory, higher number of employee rated High salary, Job security and Good working condition as a motivator which are the basic physiological needs in the Maslow's needs theory. Physiological factors are still important for them. The theory suggests that for a person to advance towards self-actualization, he/she would have to fulfil the lower-tier factors.
I had taken the interview with the CEO of company. He mentioned that good salary is the main factor for continuing service in the Cinnovation.
There is also need to consider that there was relatively young (21 to 30 years old) age employees were rated the physiological needs as a motivator. It might be because of increasing living cost and to stable the financial background. It also depends on organisation's other benefit plan such as pension benefit, bonuses and non- financial benefits. Unfortunately, Cinnovation doesn't have such kind of compensation package to benefit the employees. Therefore employees more focused on the salary package which has ranked as a first motivator.
Employees has ranked Job security and Good working condition as a second and third important factors which can be categorised as a safety factor in the Maslow's hierarchy. Basically middle age (31 to 50) group employees are more concern to look for the secured job and require a stable source of income to match their earnings and expenses and support the immediate family members. The survey results from the age group (Appendix A) also support that almost three quarter of the employees are already married and they need to support their family. It can be said that middle age group employees has already satisfied psychological needs and they have step up for choosing the safety needs as their motivating factors.
Average and lower ranked Factors
Full appreciation of work done, promotion and growth and good relationship with the peers which are corresponding to self-actualisation and self -esteem and social factors respectively has medium rated factors. As a theory, self actualisation may not desire if the basic psychological factors are not satisfied. Those employees who have already satisfied their basic needs, they may have ranked and more concerned with the quality and nature of the work.
Interesting work, tactful discipline, recognition and leadership were ranked as least important motivation. These are corresponding to esteem and self-actualisation factors. It shows that employees does not see the importance and long term benefit of the social networking to become part of the company. Self respect is usually achieved through the fulfilment of responsibility delegated by the superior.
Therefore, if the organisations wish to address the most important motivational factor of the employees in Cinnovation, Good salary, Good working Condition and job security must be satisfied. That is to say those strategies needed to increase employees salaries should be a serious agenda for the Cinnovation Group.
4.2.2Comparison with Hertzberg Two-Factor theory
Hygiene Factors (Dissatisfies)
Good salary, Job security and working condition are top ranked motivating factor which are classified as Hygiene factors in the Herzberg's Two-Factor Theory (Table3.22 above). Theory stipulates that the absence of good salary (hygiene factor) certainly caused most employees to look for better job opportunities elsewhere and may cause high staff turn-over in the organisation. Interview with the CEO also support that he is in job because of the reasonable pay that he receives.
According to the survey result (Chart 4.2) above, there should take consideration that employees have ranked hygiene factors (high salary, job security and good working condition) as a top motivator. These may affect by various factors such as people's mentality over money, aspects of society, culture of the country. It indicates that employees are more concern with the immediate compensation from the company rather than long term benefits. It may be because of increasing living cost, some indirect factor such as increasing inflation rate which erode the purchasing power of money. Therefore, hygiene factors are in supreme position over motivating factors.
Motivational Factors (Satisfiers)
Full appreciations of work and promotion have ranked as a fourth and fifth motivators (chart 4.2). In presence of these factors would lead to increase in motivation levels as Hertzberg theory. Minority of the employees who have higher level of skills, good position and secured job and who have such energy to upgrade themselves might ranked those factors as their motivators. These factors are based on the personal growth. If they exist in the Cinnovation which create job satisfaction, employees may improve their performance and efforts to achieve the collective organisational goals.
4.2.3 Comparison with Vroom Expectancy theory
Vroom's expectancy does partially apply to Cinnovation. This theory suggests that employees put efforts to their job where they expect something to get in the future such as rewards and bonus (3.2.3 above).From the interview, CEO of the company mentioned that performance related rewards exist in the company by exceeding of targeted revenue. This may motivate employees towards increasing the revenue and efficiency of work to be entitled for the rewards.
5. Attitudes of the Employees towards Work
5.1 The types of Incentives and other benefits will influence my performance more
(Chart 5.1 Survey Questions 1)
The above figure(Chart5.1) shows that employees are more concerned with the financial incentives (61%) which are those associated with the money such as wages, salaries, bonus and retirement benefits, Medical reimbursement. Normally these are the first basic employees expectation from the organisation rather than non -financial such as praise, group recognition, Job security, opportunities for growth. There is no surprising that 28% respondents have chosen both who may want to prioritise both benefits as their motivating factors.
5.2Rewards and Job satisfactions
(Chart 5.2 Survey Questions 2)
The results from the figure(Chart 5.2) indicates that more than half of the respondent are not satisfied with the current incentives and benefits scheme of the company. Specifically majority of the participating employee are claimed that current compensation scheme such as salary, bonus of the organisation as well as non financial benefits is not good enough or unfavourable in terms of satisfying of basic needs as compared with the related industry average.
Majority of the respondents are also not satisfied with their present jobs. This may indicate that incentives scheme set by the company does not reflect the average market salary that should be paid. Other factor may also cause employees job satisfaction such as company reputation, location of company etc.
It's difficult to measure employee's jobs satisfaction exactly because there is no standard measurement criteria exist which only can be measured by qualitative approaches like observing and inquiring.
5.3 Job securities in the company.
(Chart 5.3 Survey Questions 3)
The results in the figure (chart (5.3) shows that Cinnovation employees having job security problems. Almost three quarter of the employees have a disagreement with the current job security. The possible reason could be that company's seniors are holding traditional autocratic power and dominate the subordinates with the strict rules and regulations. There may have weak union influence with the top management. Some key and senior position staff might agree that they have holding secured job (17%) in the organisation.
It indicates that organisation does not care about retaining of valuable employees seriously. Therefore organisation facing high staff turnover, only one employee is working with Cinnovation more than five years (Table 4.1.4 above).The employees are not confident (neutral) about job security and there is a fear that retrenchment may occur.
(Chart 5.4 Survey Questions 4)
The majority of the respondents gave high ratings to the team work which purely exists within the organisation. This implies that employees enjoy working with their colleagues.
The interviewee (CEO) also agreed that team produce better results, more efficiency and creates synergy.
As a results from the above figure (chart 5.4) Majority of the respondents may believe that the collective knowledge and skills of entire workforce has direct relation
and affects the individual performance in the organisation. Cinnovation has encouraged and acknowledged the team work.
5.5Training, development and career advancement
(Chart 5.5 Survey Questions 5)
The research indicates that respondents are able to update knowledge in their area of work. This shows that organisation is able to introduce the training to the existing employees to get the better performance by sharing of knowledge with less experience staff and newly appointed staff.
Most of the respondents in the research activity imply that the organisation place great value and the importance of the great necessity for training and development programmes for the employees. We also can evaluate that organisation is positively recognised the need of being updated in terms of skills and technological knowledge in the modern environment.
Overall response of the participant in the survey concluded that gaining of knowledge is highly valued in the organisation .This also helps to change the organisational culture.
5.6 Communication and co-ordination
(Chart 5.6 Survey Questions 6)
From the above figure (Chart5.6) shows that respondent agreed that organisation has a good channel of communication and employees have received support from superiors and co-workers.
Interviewee (CEO) also said that Cinnovation has open and two way communication which has matched with the respondent's feedback through survey results. He also added that organisation call for the briefing to communicate every staff regarding any issues. However, Communication must be two way. Every employee need to feel that they can express their views with the superiors and they can provide suggestion and feedback which increase the efficiency.
As based on the analysis of the research in Cinnovation, employees are able to consult their superiors on the related to their duties. Management have an open direct communication with their employees especially on the concerns regarding the personal duties, responsibilities of each employee and overall achieving of entrepreneurial aims. This also helps to build the corporate culture and system.
5.7 Leadership and responsibility
(Chart 5.7 Survey Questions 7)
Based on the survey results from the chart 5.7, leadership aspects in the Cinnovation is only possessed with the senior managers and does not delegate power of decision making to the juniors. Respondents may highlighted that organisation has a structure where only powerful senior managers are entitled to the decision making.
More than half (67%) of the respondents are agreed that superior not giving task to fulfil more than their ability. This shows that superior don't pressurise the subordinate in the organisation.
5.8 Management Behaviour.
(Chart 5.8.1 Survey Questions 8.A)
(Chart 5.8.2 Survey Questions 8 B)
The above figure (5.8.1) shows that organisation is able to maintain the good culture of professionalism within the organisation. More than half of the respondents have agreed that each employees and superiors respect each other.
The figure 5.8.2 also highlights that organisation does not discriminate employees and treating fairly to each employees. This is the one way of retaining ethical employees in the organisation through having ethical culture.
5.9 Application of Adams Equity theory.
This theory is applied to Cinnovation. This justice theory mainly focus of maintaining equality and fair distribution of resources among the employees and fair treatment .Cinnovation's employees may be looking for the balance between what they bring in the company and outcome that they receive from the organisation. As compared with the incentives package provided by the organisation, employees are not satisfied (Chart 5.2, Survey Question 2). This indicates that respondents may think they have brought high value to the job which is not equal with what they contributed (input) to the organisation. Respondents may feel that hard work, skills level have not matched with the salary, benefits and recognition which they receive from the company.
5.10 Application of McGregor theory
Theory Y is applied for Cinnovation's case. This theory assumes that employees may be self-motivated and enjoy the mental and physical work duties. Employees are seeking to learn and accept the responsibility and exercise self control and self direction which they have committed to the organisation. In this case, Cinnovation have a good culture of respect among the employee. Organisation is able to maintain open communication regarding the personal responsibility and duties of the employees which may help employees to motivate to fulfil their responsibility (Chart 5.6, Survey Question 6).
However, respondent have a disagreement with the job security, satisfaction with the job, incentives package. This highlight that respondents may not be self-motivated to bring efforts towards organisational objectives.
6. Summary of the analysis
Based on the survey and interview results I would say that motivation in the Cinnovation is not at the worst. But they are not adequate enough to mobilizing staffs effort at the maximum. Employees are concerned with the earning (High salary-high ranked factor) or how much they are getting paid rather other non financial factors. Incentives are the main thing to influence the employee's motivation in Cinnovation. Majority of the employees are not fulfilled with the present incentives scheme so that they have expectation to increase the incentives up to the industry norms.
Many motivation theories such as Maslow's theory, Hertzberg's two factors theory has applied and supported to interpret the survey results. Physiological factor has come first when ranking of motivating factors and ultimately ended with self-actualisation factors. Theoretically, if basic needs (physiological) are not fulfilled, employees wouldn't desire to get the self-actualization need (employee recognition). However, employees in Cinnovation still have not fulfilled the physiological needs (High Salary), therefore they weren't denoted to the other factors of the motivation as shown in the survey. Employees still prefer for financial incentives although they have given reasonable payment. Culture also affects the human behaviour and overall mentality of the people.
The employees are not feeling secured in their job. High staff turnover exist in the organization. Some employees might not fit with the organisation culture and they might resign. Overall working environment also help in building the positive attitude among employees. Employees are generally happy with the co-workers in Cinnovation.
Cinnovation Group has a harmonious relationship exists in the organisation among the employees and research also reveals that there is a good co-operation and good communication among employees. Respondents are also favourably accepted that organisation is maintaining the system of professionalism. (Chart 5.8.1 Survey Questions 8.A)
Majority of the employees agreed that organisation has placed training and development opportunities in the organisation and eager to improve the skills and knowledge of the employees to achieve better performance (Chart 5.5 Survey Questions 5).
Organisation should mind that employees are working to fulfil their needs and desires. If the organisation unable to motivate and address their expectations, none of the organisation be able to accomplish the desired results.
7.1Achieving of research objectives
The research concludes that motivating procedures in Cinnovation is found reasonable and effective but not so highly effective. The research shows that employees have highlighted many factors which will help to motivate the employees. My conclusion is based analysis of four research objectives which were stated in the beginning of the Project (1.3 - Project objectives).
A) Identification of the key indicators which influence the employee's motivation and evaluate those indicators.
The purpose of the research of key motivation factors in Cinnovation was to describe those factors and how those factors are important which organisation can focus more to establish into the rewards system. This also helps the organisation to encourage, inspire and retain existing employees.
High salary, job security and good working condition have been ranked the most top and important factors in Cinnovation. Immediate financial benefits are most important from the employee's point of view. Full appreciation of work done, Promotion and growth and good relation with co-workers are medium important for the employees in Cinnovation and they are not so much interested about interesting work, recognition, leadership and social relationship.
B) Understanding of motivation theories and application of those theories with the research results.
The survey and interview results have applied with Maslow's Hierarchy of Needs theory, Herzberg two factor theories, vroom expectancy theory, Adams Equity theory and McGregor theory(X theory and Y theory) which have been introduced earlier (3.2 theories of Motivation). The results from the interviews and survey have been compared those theories with the reasonable explanation.
Survey results agreed with Herzberg Two Factor theory, Vroom expectancy theory and Maslow's needs theory. Respondents in Cinnovation are more concerned with the Hygiene Factors (Hertzberg Theory), Psychological and safety needs of the Maslow's needs theory preferring high salary, job security and good working condition by the employees in Cinnovation.
There are also limitations of the motivation theories. Majority of widely known motivational theories are of American origin and their applicability in other parts of the world is questionable and theories do not distinguish between the gender and culture. As my view, effects of globalisation, lots of people seek employment in other countries and it seems that their main motivator is higher salary, thus conclusion of some theories that money is not prime motivator which doubts.
C) Effective dealing with the employee motivation:
The overall survey results from the survey and interview highlighted that organisation is not more focusing and dealing to motivate the employees. The employee's attitude and aspects towards work is generally positive. As my view, salary and job security still consider the most important factor in the real world. Organisation looks not serious to set the motivation policy. There should have a boardroom leadership to implement those policies to increase the employee's loyalty and prevent the high staff turnover.
Cinnovation is able to deal with the employees to benefit for the organisation such as organisation able to enhance the effective communication between superiors and subordinate (chart 5.6 above) which respondents have also highly supported. Respondents also positively agreed that they have received recommendation to do the task in the team work (chart 5.4 above).
It was apparent that respondents have been challenged by some factors that limit them to fully participate with the organisation goal. Respondents have adversely commented that respondents are not seeing the career path planning in the organisation. Cinnovation is not implementing any kind of performance related incentives.
By considering overall aspects of the respondents, Cinnovation is not seen well in effective dealing with the employee motivation policies. Cinnovation is not taking into mind that employees are the greatest assets of the organisation who can contribute the great efforts to the organisation.
D) Practical suggestion and recommendation for further improvement for organisation's motivation policies.
As we seen Cinnovation's employees are not satisfied with the salary level, organisation should adjust its level of salary and rewards by matching with the industry norms. Organisation can focus on the financial rewards such as performance related bonus, medical benefits which is the good way of encouraging employees to contribute their efforts to the organisation.
Cinnovation should introduce performance appraisal system in the organisation. This usually takes the form of a periodic interview in which the work performance of the employees is examined and discussed with a view of identifying weakness and strength as well as opportunities for improvement and skills development.
Organisation should introduce the system to identify the better performing employees who should get the majority of the available merit pay increase, bonuses and promotions. It encourages employees to show better performance internally.
Although, organisation has a good communication between the employees and clear reporting line, seniors are not involving subordinate to make the important decision. It limits employees to progress themselves and adversely effects on their career advancement. So organisation can share the decision making power to the subordinate or direct involving them to get their recommendation. This also beneficial for the organisation to make more responsible to the employees of their duties and use their hidden talent.
It is clear from the research that employee's motivation has direct impact on the performance and growth of the organisation. If the organisation able to motivate to their employees, they can invest his/her best effort to carry out his/her duties which enhance the job performance and add value to the organisation.
Senior managers may also change their management style. Managers could use transformational leadership style to attract the subordinates towards good performance by emphasizing the charisma which invokes emotion attraction in subordinates.
Organisation may also evaluate the contribution and values added by the each employee towards their objective. Cost of implementing and motivating the employees shouldn't outweigh the value contributed by the employees.
I faced various limitations to this project. The sample size taken for the research was only from the 18 respondents and response from the respondent may not be accurate. Some of the employees didn't participate in the survey questionnaire which also limits that research couldn't address their views and expectations. I able to interviewed with the CEO of the company only. There could have gather more reliable data if I could interview with other employees in the company.
Motivation is abstract and it is very difficult to measure motivation because it can only be felt. As it intangible and there is no standardize data of motivation. In addition, analysis of the results from the survey may hold uncertainties because there is no statistical measure have been used such as hypothesis testing.
BPP (2010) ACCA F8 Audit& Assurance, BPP Publishing
BPP (2010) "ACCA Tutorial Text Success in your Research and Analysis Project". London, BPP Publishing.
Bruno S. Frey,Margit Osterloh (2002) "Successful management by motivation" Springer.
Edwin Flippo(1971) "Principles of personnel management". McGraw Hill
Frank.G.Goble (2004) "The Third Force: The Psychology of Abraham Maslow" ReinventingYourself.com
Gareth R Jones, Jennifer M. George (2007) "Contemporary Management" McGraw Hill/Irwin
Herzberg, F., Mausner B. & Snyderman, B.B. (1959) "The Motivation to Work". 2nd Edition. New York: John Wiley & Sons
McGregor, D. (1960) "The human Side of Enterprise" New York: McGraw-Hill Book Company
Newman Barbara M & Newman R Philipp, (2008) "Development Through Life: A Psychosocial Approach" Cengage Learning
Norwood,G.(1999).Maslow's Hierarchy of needs.The First Axiom is One's Existence.
Smith, G.P. (1994) Motivation. In W. Tracey (ed.) Human Resources Management and development handbook. 2nd Edition.
Nahavandi, Afsaneh & Malekzadeh, Ali R. (1998) "Organisational Behaviour: The Person-Organisation Fit" USA: Prentices Hall.
Victor Harold Vroom (1964) "Work and Motivation" Wiley,
http://www.sjm06.com/5_1_2010_full%20text/10MalikOK_Polazni.qxd.pdf(Accessed- 5 April 2011)
http://en.wikipedia.org/wiki/Equity_theory(Assessed- (Accessed-19 April 2011)
http://www.graphic.org/resources.html(Accessed -24 March 2011)
http://laswellonleadership.com/2010/10/25/maslow-on-leadership/500px-maslows_hierarchy_of_needs/ (Accessed-29 March 2011)
http://tutor2u.net/business/people/motivation_theory_herzberg.asp(Accessed- 29 April 2011)