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This study is divided into the following five parts. Each part would contribute and are interrelated throughout the course of the study. The first chapter is the Introduction. It discusses the background knowledge, my personal claim, company profile, industry profile and the aims and objectives of the study.
The second chapter reviews the literatures. The secondary data are collected and analyzed. The works of many previous researchers in the field of employee commitment, importance of employee commitment and motivational factors are analyzed.
The third chapter contains the research methodology. It includes the research design, questionnaire design, sample size calculation, hypothesis development and a brief of the data analysis techniques used in the study.
The fourth chapter critically analyses all the data collected from the questionnaires. It provides the empirical values and tabulations of all the analysis done.
The fifth and final chapter discusses the findings, suggestions, limitations and conclusion of the study.
Motivation and Commitment: A Comparison
Comparing the definitions of motivation and commitment reveals an obvious similarity: Both have been described as energizing forces with implications for behavior. Note, however, that Pinder (1998) described motivation as a set of energizing forces and that Meyer and Herscovitch (2001) defined commitment as a force that binds an individual to a course of action. This implies that motivation is a broader concept than commitment and that commitment is one among a set of energizing forces that contributes to motivated behavior. (Meyer & Herscovitch, 2001, p. 301)
Definition of Commitment: Commitment is a force that binds an individual to a course of action that is of relevance to a particular target. (Meyer & Herscovitch, 2001, p. 301)
The psychological bond of an employee to an organization is known as "Employee commitment".
Employee commitment depends on the:
a) Degree of employee involvement,
b) Employee loyalty and
c) Belief in the values of the organization.
"Employee commitment was badly damaged in the late 20th century during corporate reorganizations and downsizing, which undermined job security and resulted in fewer promotion opportunities. This led to the renegotiation of the psychological contract and the need to develop strategies for increasing commitment. These included flexible working and work-life balance policies, teamwork, employee participation, training and development". (Business Net)
Employee commitment is emerging as the most critical workforce management challenges of the immediate future, driven by employee loyalty concerns, corporate restructuring efforts and tight competition for key talent. For many firms, "surprise" employee departures can have a significant effect on the execution of business plans and may eventually cause a parallel decline in productivity. This phenomenon is especially true in light of current economic uncertainty and following corporate downsizings when the impact of losing critical employees increases exponentially (Caplan and Teese, 1997; Ambrose, 1996; Noer, 1993).
The importance of employee commitment:
Almost more than a decade (1988-2000), the important issue for companies was motivating and retaining people with the skills necessary to do the work. This situation became even worse during 2001 as an economic downturn forced thousands of companies to cut back their employee populations. In the past year alone, more than a million US jobs have been eradicated leaving a scenario of lost trust, eroded loyalties, financial crisis and diminished productivity. Employee stress levels have escalated as morale and creativity plummet, while simultaneously, the cost of absenteeism and medical related expenditures was raised. Further, companies are now indicating that product quality is beginning to suffer; customer satisfaction is dropping and many organizations are beginning to experience a significant increase in turnover of key talent--especially amongst those individuals considered most 'crucial' to the downsized organization (Ambrose, 1996; Caplan and Teese, 1997; Reichheld, 2001; Deal and Kennedy, 1999).
Explain motivation and factors that motivate employees
Motivation has been a difficult concept to properly define, in part because there "are many philosophical orientations toward the nature of human beings and about what can be known about people" (Pinder, 1998, p. 11).Work motivation is a set of energetic forces that originates both within as well as beyond an individual's being, to initiate work-related behavior, and to determine its form, direction, intensity, and duration. (Pinder 1998)
According to the CIPD Annual report (2009), the actions that most organizations took last year to improve employee motivation are
â-ª Offering increased learning and development opportunities (47%),
â-ª improving the induction process (45%),
â-ª increasing pay (42%),
â-ª improving selection techniques (42%),
â-ª improving line manager's HR skills (CIPD, 2009).
The most effective methods to improve employee motivation according to this report are by improving the selection techniques and increasing the learning and development opportunities.
Table 1: Steps taken specifically to address employee motivation in the UK in 2008/09 (%)
Source: CIPD Annual Report 2009
Factors that motivates employees
1. Interesting Work
Real motivation comes from the shear joy and pleasure of doing a task. When you read a great book, no one has to pay for each page you read. It is pleasures to learn how the story display and watch the plot develop. It is the same way with employee motivation. To maximize employee performance, find out what employees like about their jobs and then try to add more tasks that line up with their own natural interests and talents.
2. Job security - The employers should provide as much job security as possible. Employees who feel that their place is at threat would put a great deal of effort to impress the management, tell your employees that the company is lucky to have such a skilled and committed staffs and people will take pride in their work and their organization. Most employees value job security and stability.(CIPD, 2009).
3. Increased Responsibility
We all know that some employees lack ambition and have no desire to advance on the job, but the more majority of employees want a chance to take on more responsibility and add more value to the organization. Always be aware of opportunities for training that will equip your staffs with the skills and tools they will need to advance in their career. Always try to fill open positions with internal applicants before looking for an outside candidate.(CIPD, 2009). This will create a culture of career development and preserve institutional memory and organizational knowledge so that it can be transferred to rising employees as they advance in their own career.
4. Appreciation & Recognition
William James said, "The deepest desire in human nature is to be appreciated." It does not matter how much you pay someone, everyone want to know that their efforts are being noticed and appreciated, especially by their Superior. Don't just send them thank you e-mail. If you really want to thank someone, buy them a real "Thank You" card and describe how their behavior and performance has added value to the organization. Make it a point to catch people doing things right and they will certainly do things right more often.
Napoleon once remarked, "It is amazing how willing men are to risk their lives for a little bit of tin and ribbon to wear upon their chest." Awards can serve as a great motivator to bind the power of healthy competition. It is always better to use rewards that are meaningful and inspiring. When employees achieve your expectations and then make sure you recognize their achievements.
6. Good Wages
Robert Bosch, founder of the world's largest automobile parts supplier, said, "I do not pay good wages because I have a lot of money; I have a lot of money because I pay good wages." If you want motivated, high productive employees you have to pay such people according to their skills and performance. Good employees are motivated by more than just good wages, but never allow low wages to be the lodge a competitor can use to steal away your best people.
7. Good Working Conditions
If you want to get the most out of employees you need to create an nice environment that facilitates success. At the minimum, you must offer a safe, clean, and sanitary work place. To get the most out of employees, help them take pride in their workspace, even if it is only a compartment or workstation. Allow employees to personalize their own work sites with photos or small charms so they will feel like they have a place that belongs solely to them.(CIPD, 2009).
8. Help with Personal Problems
How many times have you heard about awful boss who told their employees to leave their troubles at the door so they could focus on their job? Unfortunately, they probably left their motivation and efficiency at the door as well. Smart managers know that it is not their job to be a counselor or analyst, but it is there job to recognize when one of their employees is having personal problems that are affecting their job performance. They need to have open lines of honest communication so that employees can feel encouraged to ask for help and then be directed to their Employee Assistance Programs.(CIPD, 2009).