Research Report on Factors Affecting Employee Motivation

Executive Summary Introduction

Our research is about the factors that may affect the motivation of employees. The company we selected to do our research was Nokia Siemens Networks (NSN). We conducted our research in their Human Research department. We went to their office through a reference. The first appointment we got was from Mr. Haris. We interviewed him so as to know about NSN and to seek the problems they are facing related to employees motivation. In first visit we were not able to find out the problem. The very next day we took another appointment from Ms. Sadia, she is Manager in Human Resource department. While interviewing her we came to know the problem faced by their department was Job leveling. She told us that the major problem in the merger of Nokia and Siemens is the placement of all the employees in appropriate positions and departments to maximize the effectiveness of the merger. So from this interview we some what got direction of our research. By further studying the factors of employee motivation from different articles, research papers, discussion papers and websites we found factors other then job leveling. The important factor we selected for our research was incentives. From this research we figured out that promotion and salaries are also the part of job leveling so we included these two factors as well. After selecting the factors or variables and defining the problem statement we constructed the theoretical frame work so as to define the exact factors that are influencing motivation of employees. Then hypothesis statements were made by relating two variables (dependent and independent). To prove these hypothesis statements we constructed questionnaire. We got the questionnaire filled by 50 employees of Nokia Siemens Networks (NSN). We went to their office and Mr.Haris helped in doing so.

Literature survey

Employees motivation is most important aspect in efficient working of employees. Job leveling is one of the factors which can effect motivation of employees. This problem is being seen during the mergence of Nokia and Siemens. Motivation is intrinsic (internal); it comes from within based on personal interests, desires, and need for fulfillment. However, extrinsic (external) factors such as rewards, praise, and promotions also influence motivation. As defined by Daft (1997), motivation refers to "the forces either within or external to people that arouse enthusiasm and persistence to pursue a certain course of action" (p. 526) (Definition from Barrons: dictionary of business terms) At one time, employees were considered just another input into the production of goods and services. What perhaps changed this way of thinking about employees was research, referred to as the Hawthorne Studies, conducted by Elton Mayo from 1924 to 1932 (Dickson, 1973). This study found employees are not motivated solely by money and employee behavior is linked to their attitudes (Dickson, 1973). The Hawthorne Studies began the human relations approach to management, whereby the needs and motivation of employees become the primary focus of managers (Bodleian, 1993). According to Maslow, employees have five levels of needs (Maslow, 1943): physiological, safety, social, ego, and self- actualizing. Maslow argued that lower level needs had to be satisfied before the next higher level need would motivate employees. An important part of management is to help make work more satisfying and rewarding for employees and to keep employee motivation consistent with organizational objectives. Many factors, including the influences of different cultures, affect what people value and what is rewarding to them. Douglas McGregor also offered his own employee motivation theory in 1960 with the book The Human Side of Enterprise, wherein he developed two behavioral models in the workplace simply called Theory X and Theory Y. The assumptions in the first theory is that people has a natural dislike towards work. Theory Y states that work comes natural to people and employees will take initiative and responsibility if they have the commitment towards the companys goals. Social dilemmas are defined as an interdependence situation in which personal and collective interests are at odds (De Cremer, 2002, p. 1335). We can define a social dilemma as a disagreement or argument within a team or group environment. How this impacts individual motivation is critical to individual/team success and performance. In De Cremer's study, respect in communicating differences by team members led to increases in their individual contributions to the collective.

The motivation may differ from person to person. For some people money can be the big motivation or office environment for few, but moral boosters and employee retention

tactics are confused with the real motivational factors. As we all know an external motivation is for a short span. The real motivation being the environment created in office for employees by conducting few management classes and encouraging creativity. Promotion and wages positively influence employees' work motivation. Benefits of motivating employees are that they always look for better ways to do a job. They are more quality oriented and are more productive in all ways. Managers need to understand how company employees see them in order to manage the impression they make, not just their intentions. Don Sheelen notes that "If a business wants its people to make a lot of money for them, then it must set high standards and give employees something they can get excited about."(Wikipedia) Employee motivation ideas could be social activities and celebrations sponsored or endorsed by management can significantly affect employee morale and collegiality. For example monthly birthday parties or lunches away from the office, or unplanned gatherings to celebrate something. The completion of a group project can be a good time to celebrate. Setting aside the issue of coercion, people generally want to do things for two basic reasons: (1) it serves some purpose of their own or (2) it serves someone elses purpose and theyve accepted something in return for doing whatever it is that someone else wants done. Self-satisfaction and incentives; these are the two great motivators. (Distance Consulting: Factors Affecting Performance Fred Nickols 2003) Job satisfaction has been defined as a pleasurable emotional state resulting from the appraisal of ones job); an affective reaction to ones job; and an attitude towards ones job. Weiss (2002) has argued that job satisfaction is an attitude but points out that researchers should clearly distinguish the objects of cognitive evaluation which are affect (emotion), beliefs and behaviours. This definition suggests that we form attitudes towards our jobs by taking into account our feelings, our beliefs, and our behaviors.(Wikipedia) Lack of job satisfaction can be a significant source of stress. Reasons why you may not be completely satisfied with your job include: Conflict between co-workers, not being appropriately paid for what you do, not having the necessary equipment or resources to succeed, lack of opportunities for promotion. Sometimes it's the job itself that causes dissatisfaction. For example, the work may be boring, or ill-suited to your interests, education and skills. (MayoClinic.com, Job satisfaction: Strategies to make work more gratifying) Job satisfaction, incentives, promotion and good office environment and job leveling are the factors which we found must be studied in research and our research will be based on these factors.

Theoretical Framework

Job leveling -Promotions -Salaries Incentives

Good Office Environme

Employees Motivation

Job Satisfaction

Our research study shows that employees motivation is directly influenced by job leveling and incentives. Job leveling may include promotion of employees, their salaries or pay scales. Incentives include allowances like medical allowances, car policy, and insurance policy. So, job leveling and incentives works as independent variables and employees motivation as dependent variable. If employees are promoted in time on the basis of their performance and experience they can give well out put and if they are not promoted in time they will be de motivated and will never show good results. Performance awards must be given as they are monetary incentives that reward employees for performance exceeding expectations. Basic pay of employees can be increased as incentive this may help in motivation. Good office environment has a moderating effect on the independent variable-dependent variable relationship. It has a tremendous effect on their level of satisfaction for themselves and for the work they are doing. Even a nice and comfortable chair can make a difference to an individual's psyche. If employees are working in close quarters with little or no personal space, then they may fell uncomfortable. Job satisfaction canceptualize and explains the influence of job leveling and incentives on employees motivation.We form attitudes towards our jobs by taking into account our feelings, our beliefs, and our behaviors.As the employees are satisfied from their job thats why job leveling and incentives will effect employee motivation. Satisfied employees tend to be more productive, creative and committed to their work.

Hypothesis Statements

Promotion and employees motivation 1. Iin time promotion leads to employee motivation. 2. If employees are promoted in time then they will be motivated. 3. Promotion does not effect employee motivation. Salaries and employees motivation 1. Attractive salaries directly influence employees motivation 2. If salaries are according to their scales then employees will be motivated. 3. There is no realationship between salaries and employees motivation.

Incentives and employees motivation 1. More incentives will result in motivation of employees. 2. If more incentives are given then employees will be well motivated. 3. Incentives have no affect on employees motivation.

Research Design
Our research design involves hypothetico-deductive method that includes observations, data gethering, problem definition, theoratical frame work and hypothesis. Causal study is needed in our research as we are studying the important variables i.e job leveling and incentives are effecting the problem i.e employees motivation. Our research has minimal interference in the research environment as we are not changing any thing and taking things as they are. We may call it a field research. The research we are doing is cross-sectional or one-shot. Unit of analysis in our research would be individual as our questionnaire will be filled by individuals and not groups or dyads.