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Report on factors causing dissatisfaction in employees
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DE-MOTIVATION PREVAILING AMONG THE EMPLOYEES AT ENGRO FOODS
Business Communication Report
DE-MOTIVATION PREVAILING AMONG THE EMPLOYEES AT ENGRO FOODS
Business Communication Report
Group Members:
Ammar Yasir 17214
Saad Hassan Qureshi 17678
Sheikh Abdul Waris 17910
Sidra Razi 17360
Date: 17-12-2014
i
Letter of Transmittal
Mr. Asif Khan
Iobm, Korangi Road
Karachi
Dear Sir,
Here is an in depth qualitative study regarding Demotivation prevalent amongst employees at
Engro Foods Corporation.
This study revealed that employees are dissatisfied with the organizational design, work
environment and salary and compensation of the corporation. A majority of employees felt that
office politics and inflexible organizational policies led to increasing job disengagement. The
report suggests ways to enhance employee motivation and productivity. Thank you for
authorizing. We would like to express our immense gratitude for authorizing the research. You
proved to be a perpetual source of guidance. We hope that our suggested strategies proved to be
effective for the employees at Engro Foods.
Yours Sincerely,
Ammar Yasir
Saad Hassan Qureshi
Sheikh Abdul Waris
Sidra Razi
ii
iii
Letter of Acknowledgement
We would like to express our deepest appreciation to all those who provided us with the
possibility to complete this report. Special thanks to the employees at Engro who took out time
from their hectic schedule and provided us with the valuable data to complete our report.
We would also like to express our special gratitude to our teacher Mr. Asif Khan, for his
continuous guidance through our project with suggestions and encouragement.
Thank You,
Ammar Yasir
Saad Hassan Qureshi
Sheikh Abdul Waris
Sidra Razi
iv
Executive Summary
The purpose of writing this report is to determine the causes revolving around an increase in
demotivation prevailing amongst the workers at Engro Foods Corporation and how employers
can enhance employee motivation and productivity. Our research identifies loop holes in the
organizational design and structure and suggests ways to improve this problem. Due to an
increase in the complaints from employees regarding office politics, unbiased attitudes and
perceptions, we conducted this research to find out where exactly the problem existed. Several
studies were conducted previously. However, none of those were successful in identifying the
root causes of the problem or devise viable solutions to solve this problem. Hence, our study
revolved identifying and rectifying the exact issues to provide prompt action. Report revealed
that employees were highly unsatisfied with the corporation’s configuration. A majority of
employees rated poor boss-subordinate relationship and lack of empowerment as the two
imperative factors responsible for decreasing their motivation to perform. The major reasons
behind the demotivation were the weak compensation and benefits policies at Engro that failed to
keep the employees motivated. Organizational design should incorporate non- monetary rewards
to stimulate employee creativity and motivation. The firm should focus on developing
compensation plans for different clusters such as for star performers and laggards. There should
be clear and transparent communication across the organizational hierarchy. Open door policies
and whistle blowing should be encouraged in order to allow employees to air their grievances.
v
Table of Contents
Executive Summary.......................................................................................................................iii
Introduction......................................................................................................................................6
Engro Corporation........................................................................................................................6
Engro Foods.................................................................................................................................6
Problem............................................................................................................................................7
Background of the study..................................................................................................................7
Job Satisfaction............................................................................................................................7
Job Motivation.............................................................................................................................8
Factors leading to job satisfaction and motivation of the employees..........................................8
Methodology....................................................................................................................................9
Findings of the Research...............................................................................................................10
Kinds of Benefits.......................................................................................................................10
Factors important to Motivate Employees.................................................................................11
Factors causing Dissatisfaction to the Employees.....................................................................12
Use of Feedback.........................................................................................................................13
Conclusion.....................................................................................................................................14
Recommendations..........................................................................................................................15
Appendix........................................................................................................................................17
Questionnaire.............................................................................................................................17
6
De-Motivation Prevailing Among The Employees At Engro Foods
Introduction
Engro Corporation
Engro Corporation is a public company based in Pakistan. The company has diversified
into different industries like food, power generation, fertilizers, chemicals and terminal storage
industries. Engro subsidiaries include:
Engro Fertilizers Limited
Engro Foods Limited
Engro PowerGen Limited
Engro Polymers and Chemicals Limited
Elengy Terminal Pakistan Limited
Engro Foods
Engro foods is an 87% owned subsidiary and the products that come under Engro foods
are mainly dairy products, frozen desserts (ice-creams) and fruit drinks. The company is
involved with manufacturing, processing and marketing of all the products. There are two milk
processing units that are located at Sukkur and Sahiwal. There is also a dairy farm at Nara,
Sindh.
Engro foods has many brands that are famous in all the households of Pakistan like
Olper’s, Dairy Omung, Tarang, Omore Ice-cream and Mabrook that has just recently been
introduced in the market.
7
At Engro, Innovation is considered to be the key success factor for the success of their products
in Pakistan. The main focus is to develop such products that will gain maximum customers
preference with superior value.
Problem
The management of employee motivation and engagement has become a critical element
for organizational success and performance across the globe. In order to be successful, it is
extremely important for line managers to be able to appraise the performance of employees to fill
in any gaps. This report analyses the inefficiency of Engro Foods Corporation in maintaining
high levels of motivation amongst its workforce.
Background of the study
A study of employee dissatisfaction and disengagement by the Harvard Business School
in United States Of America, found that employee engagement is a measurable degree of an
employee's positive or negative emotional attachment to his job, colleagues, and organization
which profoundly influences his willingness to learn and perform at work. For example, a well
renowned organization in the state of Los Angeles suffered a loss $3.6 million linked to litigation
by employees when appraised poorly.
Job Satisfaction
Job Satisfaction can be defined as any combination of psychological, physiological and
environmental Circumstances that cause a person truthfully to say I am satisfied with my job.
According to this approach although job satisfaction is under the influence of many external
8
factors, it remains something internal that has to do with the way how the employee feels. There
are certain factors attached within the job environment, the job role and organization itself, that
leads to the satisfaction of the employees.
Job Motivation
The main job of any manager or a supervisor is to get things done through the employees.
The employees need to be given certain amount of motivation to achieve goals in an
organization. The employees need some continuous acknowledgment by their supervisors to
perform well at their job.
The need for effective workforce motivation is emphasized in many studies like that of
Herzberg's Two Factor Theory. There are several ways in which the supervisors and the
managers can motivate the workforce. Supervisors could enhance the strong link between the
workforce with positive feedback and by associating such feedback with job challenge and job
involvement. Such a linkage could serve to enrich the supervisor's knowledge of the employees’
performance and move towards supervisor-initiated development. People from Western cultures
are more motivated by the needs for achievement, relationships, and authority over work.
Factors leading to job satisfaction and motivation of the employees
Most companies have the potential to substantially improve multiple aspects of the
performance of their workforce. By paying greater attention to the management of their
compensation plans, they can improve the motivation of their work force and boost their chances
of meeting revenue targets. Companies across the world and even in Pakistan, they are
considering total compensation management, which is to say that they are evaluating
9
opportunities to streamline their compensation processes and to make pay policies more
transparent - and perhaps more logical. Total compensation management is the practice of
centralizing management of the processes and systems responsible for the full compensation of
every individual in an organization, including base pay for both hourly and salaried employees;
benefits; and merit or variable pay in the form of cash, stock, and other incentives.
When we talk about a motivated workforce or employees with job satisfaction, we
identify those factors which led to this motivation and satisfaction. What we need to know is that
only hiring right employee and implementing motivational theories doesn’t help an organization.
An organization is full of departments, each interconnected to one another and at every level the
system and its management plays a very crucial role which can’t be ignored.
If right employee is hired and he is presented with all motivational factors but the system
he works in is highly inefficient so this will eventually lead him to a pool of uncertainties and
result in demotivation. Motivation and satisfaction of the employees is not only restricted to the
job you are performing but it covers a variety of other factors relating to the job environment, the
organization, its cultures and the values prevailing there.
Methodology
The research was conducted at Engro Foods, Karachi. The research was restricted to full-
time employees and they were given a questionnaire that was constructed with questions based
on intrinsic and extrinsic motivation and factors leading to demotivation at work.
10
Findings of the Research
Kinds of Benefits
Engro foods is a huge organization mainly known for the benefits they provide to their
employees, especially non-monetary by providing travelling expenses to the sales task force who
travel abroad frequently. This chart below clearly shows that 66% of the employees are
motivated through the non-monetary benefits, whereas other 34% were satisfied with an extra
pay increase here and then.
66%
34%
Engro FoodsMonetary Benefits Non-monetary benefits
At Engro, employees are given motivation through proper monetary benefits in the form
of effective salary and compensation packages designed for the organization. The employees are
satisfied with the compensation plans that Engro offers to them. These compensation and
benefits plans help in retaining the large number of employees working for the corporation.
11
Factors important to Motivate Employees
The chart below shows the various factors that are used for motivation at Engro Foods.
The most important are salary and benefits plans and favorable relationship with bosses that keep
the employees the most motivated at Engro.
Salary and Benfits Future Opportunities Learning Culture Relationship with your bosses0
1
2
3
4
5
6
7
8
9
10
Rate on a scale of 1 to 10 which factor is most important for employee motivation
12
Factors causing Dissatisfaction to the Employees
The most common reasons for switching jobs at Engro and the decreasing satisfaction of
the employees have been highlighted in the chart below. The reason that has been given most
preference when switching jobs is that of a lack of properly designed salary and benefits
packages in the organization.
As it is clearly suggested by the employees at Engro, a well-designed compensation plan
is the only source of motivation for them. It is important that the company puts all of its focus on
providing the employees with the needed perks and benefits to keep them satisfied in the
workplace.
Greater opportunity Salary plans Commission Goodwill0
10
20
30
40
50
60
70
80
Most obvious reason for employees to switch job
13
Use of Feedback
In the chart below, the frequency of taking feedback from the employees is highlighted.
At Engro, the managers/supervisors make use of feedback to keep a check on the performances
of the employees. The employees are given feedback on their performances, mostly on quarterly
basis during the year. And also at year-end, analysis is done on the employees’ job and the
results they are providing during the year. This helps the organization to create such
compensation plans that accordingly helps in improving the employees’ performances as well.
Yearly Quarterly Monthly Daily0
2
4
6
8
10
12
Use of feedback by supervisors
14
Conclusion
To conclude, the results obtained after the questionnaires, the fact that since Pakistan is a
developing country, with an increasing level of poverty, monetary funds are focused more when
it comes to motivating employees in organizations. Engro Foods is self-sufficient in resources,
therefore huge motivational activities can be observed, and therefore non-monetary rewards also
play a vital role in improving the productivity of the sales task force.
From this study it has been shown that Engro is efficient in their decision making
policies, further their recruitment process is based on highly recommended practices. Engro
clearly focuses on the transparency of goals and the communication regarding them between the
top to bottom level of the hierarchy, which is important to the employees as well as mutually
beneficial to the organization in executing the ultimate tasks in achieving the required goals.
Lastly, the study suggests that high focus has paid to the feedback provided to the work
force by the executives of the organization , this simply keeps an eye towards the employees
approach , whether it’s on track or not. In this context Engro Foods provides its employees with
non-monetary rewards such as dinner vouchers, allowances, accommodations etc. just to keep
the force focused and motivated towards their goals.
15
Recommendations
The possible strategies that would be carried out in order to motivate employees could be :
Organizational design should incorporate non- monetary rewards that would boost up an
employee’s self-esteem to a great extent. Such non- monetary rewards include giving
appreciation, recognition over a specific project completion, awarding them with small
shields and certificates, mentioning names on the ‘Wall of Fame’ and nominating and
‘Employee of the Month’.
The firm should focus on developing compensation plans for different clusters such as for
star performers and laggards. This would ensure that everyone is rewarded on the basis of
their actual performance and would allow employees to refrain from developing hostile
feelings and indulge in deviant workplace behavior.
Transparency is the backbone of organizational success. Consequently, the firm should
focus on developing policies and procedures that are open, transparent and avoid hidden
biases.
Open door policies and whistle blowing should be encouraged in order to allow
employees to air their grievances. Employees perceive an organizational as equitable if
they are given a voice and express their feelings about their work situation. Whistle
blowing is an effective exercise ensuring a fair organizational system.
National and international training sessions and seminars should be held in order to create
a healthy workplace environment in which employees are motivated to build
Organizational Citizenship Behavior and counter balance any negative connotations
revolving around the work itself.
16
Feedback is the food and fuel for star performers and it has to be timely and consistent in
order to display the overall performance of the employees. Employees should be aware of
the fluctuations in their performance and should be evaluated on the basis of the executed
performance.
17
Appendix
Questionnaire
Q1) Rate on the scale of 1 till 10 as to which factor is most important to the sales people:
a) Salary and benefits
b) Learning
c) Future opportunities
d) Culture
e) Relationship with your bosses
Q2) What makes a sales person switch to some other organization?
a) Employee empowerment
b) Company’s goodwill
c) Sales commission
d) Open communication
Q3) Are the job activities significant and meaningful to the sales people?
a) Yes
b) No
18
Q4) In your opinion what is the most obvious reason for employees to switch jobs?
a) Greater opportunity
b) Salary, perks and benefits
c) Commission
d) Goodwill
Q5) How do you prepare motivational plans keeping in mind the aspiration level of each
individual?
a) Be good for people
b) Nice to subordinate
c) Organizational activities
d) Incentives
e) Salary on time
Q6) Are your motivational plans for the core performers, laggards and the star performers
of the company are the same or different?
a) Same
b) Different
c) We do not have any differentiation
d) Mixed bag
19
Q7) How are tasks set at your Organization?
a) Hierarchy wise
b) Previous record
c) Target wise
d) Market scenario
Q8) Do you personally believe task clarity is important to achieve results?
a) Very Important
b) Important
c) Neutral
d) Not Important
Q9) What is your view on compensation Plans? Is it important for the employee?
a) Very Important
b) Important
c) Neutral
d) Not Important
Q10) What type of compensation tactics your company uses to motivate its workforce?
a) Commission
b) Basic pay
c) Monthly incentives on performance
d) Perks (car, fuel, mobile assistance and etc.)
20
Q11) Does compensation plans at your firm have produced remarkable results?
a) Very significantly
b) Significantly
c) No change
d) Adversely
Q12) Is it important to encourage feedback from sales force?
a) Very Important
b) Important
c) Neutral
d) Not Important
Q13) On what basis do company takes feedback on performance of its sales persons?
a) Quarterly
b) Weekly
c) Monthly
d) Yearly