An analysis of the key factors that influence the levels of motivation

An analysis of the key factors that influence the trains of demandThe tender function of this study argon the pauperismal factors that Shell Pakistan delectation to motivates its employees to engagement in different departments. I have taken five departments Sales, Marketing, Finance, HR and Production department. As around 300 raft work in Shell and to motivate them graduated table uses different pauperizational theories which may include Alderfers ERG possibility, McClellands opening of Needs, Equity Theory, Expectancy Theory.These argon the fol scummying motivatingal factors that these departments practice sustainedly to motivate employees.Employee AppraisalIntrinsic AwardsEmployee InvolvementSkill- found Pay PlansFlexible BenefitsBenefits programme provision provision epoch off and time outOur diverse global communitySports and social activities auditory modality to our employeesAfter the analysis of complete survey we dirty dog conclude that employees of scale lea f PAKISTAN enjoys different attri unlesses of motivation kindred they have blood line Satisfaction as they see they have various(prenominal)ised and professional growth opportunities, they savor they have empowerment.They have real skillful, luxuriously-quality and superior working environment. They believe that their commitance is appreciated volition import in final payment as get PAKISTAN is having EDR system. The one thing that may be a f be of de-motivation is overreach PAKISTAN does not offer tailored benefits.CORPORATE PROFILESecond Largest oil grocerying fellowship in Pakistan with an average function everywhere of over US$3.4 billion and marketplace sh be of over 24% in black oil and 35% in white oil.Blue chip brass instrument with market capitalization of around Rs. 44 billion US$ 755 million contributing US$ 873 million to the bow area exchequer.Regained market leadership in Mogas during FY 04 by elevating market share to 44%Set financial landmark s over the last 4 years with earnings almost doubled from Rs.2.3 billion to Rs. 7.06 billion maximizing shareholders value. unaccompanied Pakistani corporation to become member of the World Economic Forum based on close and forrard looking criteria.Only participation in Pakistan whose turnaround and remarkable per gradance is cited in unhomogeneous case studies both locally and inter fieldly.Around 3,800 retail outlets across the country including 1,000 New Vision outlets commission deep down five years.Vast infrastructure of 9 installations and 23 depots from Karachi to Chitral and a supply chain back up by 2000 strong tank-lorry fleet and 950 railway wagons.Extensive storage capacity, almost 15% of total national storage, i.e. around 160,000 metric tons.A association fully aware of HSE standards and using these as part of continuous improvement process.ISO 90012000 certification of major retail outlets, Mobile Quality Testing Units and key installations/ depots and ISO 140 011996 distinction for Kemari ending C.Leading National Company committed to support ongoing or ripe social and good-hearted projects in the field of education, health, welfare, women empowerment, etc.TABLE OF CONTENTS1 social club INTRODUCTION 71.1 display 71.2 Vision Evaluation 81.3 Values 81.4 Responsibilities 81.5 Future Engagements 92 MOTIVATION IN ORGANIZATION 112.1 commentary 112.2 Motivation Process 112.3 Employee Motivation at Workplace 113 MOTIVATIONAL THEORIES ADOPTED AT font PAKISTAN 133.1 Alderfers ERG Theory 133.1.1 Difference amid Maslows Hierarchy of Need Alderfers 133.1.2 Alderfers ERG Theory AT SHELL PAKISTAN 143.1.3 Relatedness 153.1.4 developing 153.2 Equity Theory 163.2.1 Theory Overview 163.2.2 Equity Theory AT SHELL PAKISTAN 183.3 Expectancy Theory 183.3.1 Theory Overview 183.3.2 Expectancy flowchart 193.3.3 Expectancy Theory AT SHELL PAKISTAN 204 OTHER MOTIVATIONAL FACTORS AT SHELL PAKISTAN 214.1 Employee Appraisal 214.2 Intrinsic Awards at SHELL PAKISTAN 234.3 Employee Involvement 244.3.1 Employee Involvement AT SHELL PAKISTAN 244.4 Flexible Benefits 254.4.1 Retirement Plans 254.4.2 Health indemnity 264.4.3 Unexpected Conditions 264.4.4 Rightsizing 274.5 De-motivated Employees 274.5.1 Counseling 274.5.2 Career Development 275 SURVEY DETAILS 285.1 Job Satisfaction 285.2 Work Environment 305.3 Employee Empowerment 325.4 Performance Appraisal Satisfaction 335.5 Flexible Benefits 356 culture 367 RECOMMENDATION 388 APPENDIX A Survey Questionnaire 39COMPANY INTRODUCTIONIntroductionThe history of Shell as a brand name in south-central Asia is to a greater bound than 100 years old. Shell brand name dating back to 1899 when Asiatic Petroleum, the marketing arm of two companies Shell Transport Company and Royal Dutch Petroleum Company began their imports of kerosene oil from Azerbaijan in South Asia. Till today, the heritage of the past is noticeable in a market of South Asia since 1898In 1928, to make their distribution capab ility efficient effective, the market concentration ofRoyal Dutch Shell plc and the Burma Oil Company Limited in sub-continent had merged and Burma Shell Oil Storage diffusion Company of sub-continent was born. After the independence of Islamic Republic of Pakistan in 1947, the name changed to the Burma Shell Oil dispersion Company of Pakistan. During 1970, when 51% of the shareholding was transferred to Pakistani investors, the name changed to Pakistan Burma Shell (PBS) Limited. The Shell and the Burma Groups retained the remaining 49% in equal pro redacts. In February 1993, as economic liberalization began to take root and the Burma provided opportunity to Pakistani Investors by divesting from PBS, Shell Petroleum (Pakistan) stepped into raise its shareholding to 51%. The years 2001-2 have seen the Shell Petroleum Company in turn increasing its stake, with the Group now having a 76% stake in Shell Pakistan Ltd (SPL) an expression of federal agencyShell has an over 100 years presence in the Subcontinenthttp//www.shell.com.pk/ home base/content/pak/aboutshell/who_we_are/history/history_logo/(Date26-11-2010, Time1800)Vision EvaluationThe Vision of Shell as a company impactd to to muscle industry have been very strict focused to competition. The futuristic approach has let to the group in investing innovating different sources of energy apart from oil petroleum.ValuesWe preparation high standards of performance and ethical behaviour that we apply internationally. The Shell General Business Principles, Code of Conduct and Code of Ethics support everyone at Shell act according to our core values of honesty, integrity and respect for people and to travel along with relevant legislation and regulations.http//www.shell.com.pk/home/content/pak/aboutshell/who_we_are/our_values_and_principles/ (Date 26-11-2010, Time 2100)ResponsibilitiesShell Pakistan put its total efforts to appliance its core values and ethical conduct by fulfilling its responsibilit ies expectations to its employees, customers, investors, shareholders to society.EmployeesShell Pakistan always puts the safety security of its employees first. This depicts that the organization has a deep concern for its employees value the work efforts by which it essentials to achieve success.CustomersThe organization has a high motive to attract retain customers by providing them the products that are warlike in price of high standards in quality. The competition in energy sector has been highly focused by Shell investments in innovative products have always been there.InvestorsIt is important for Shell Pakistan that its investors base remains supportive to the organization so that when it take to expand or restructure any of its function or function, the business always have financial support to effectively pursue that.ShareholdersShareholders are the real owners of the organization. Shell Pakistan makes most of its efforts to protect shareholders investments prov ide them with competitive benefits of long term (capital growth) short term returns (dividends).To SocietyThere are many aspects of responsibility to society. roughly of them are Corporate, Environmental sustainability concern for general people that the business directly or indirectly cause to.Shell Pakistan has clear policies for it sustainability has participated in flood relief in Pakistan by providing aids to the most effected.http//www.shell.com.pk/home/content/pak/aboutshell/media_centre/news_and_media_releases/2010/flood_2010.html (Date 26-11-2010, Time 1349)Future EngagementsTo engage in backward integration by getting a major National Refinery. This has a capacity of 2.8 million tons of which sales to SHELL PAKISTAN are 25%.To develop a white oil pipeline in collaboration with major pol companies so as to eliminate transportation inefficiencies.Invest in the business of coal mining to witch a lucrative fuel source to which most consumers are switching.MOTIVATION IN ORGANIZATIONDefinitionNo other topic in the field of Organizational Behavior (OB) has received as lots attention as the subject of motivation. . (FTC, 2009)Motivation force out be defined in a conformation of ways, depending on whom you ask. If you ask someone on the street, you may get a response like, Its what drives us or Motivation is what makes us do the things we do. As far as a formal definition, motivation put forward be defined as forces within an individual that account for the level, direction, and persistence of effort expended at work, according. (Parsons and Maclaran, 2009)This is an splendid working definition for use in business. Now that we understand what motivation is, we can look at the factors that help managers to be able to motivate and then a look at some of the theories on motivation. (Latham, 2007)Motivation ProcessUnsatisfied need = Tension = Drives = Search Behavior = Satisfied necessitate = decrease of tension = New unsatisfied needs (Adair, 2009) Employee Motivation at WorkplaceMotivation is what gets you started. Habit is what keeps you going. Jim RyunThe trick of a manager in the workplace is to get things done with employees. To do this the manager should be able to motivate employees. But thats easier said than done Motivation practice theories are difficult subjects, woful on several disciplines. . (FTC, 2009)In spite of enormous research, fundamental as well as applied, the subject of motivation is not clearly understood and more oftentimes than not poorly practiced. To understand motivation one must understand human nature itself. And there lies the problemHuman nature can be very simple, yet very complex too. An understanding and appreciation of this is prerequisite to effective employee motivation in the workplace and therefore effective anxiety and leadership (Latham, 2007).There is an old sayingYou can take a horse to the water but you cannot force it to suck he will drink if he is thirstyThat is also the case with people they will do what they sine qua non to do or otherwise motivated to do, whether it is to excel on the workshop floor or in the ivory tower. The people or employees must be motivated or driven to it, either by themselves or through external stimulus. (Adair 2009 Leadership and Motivation)Are they born with the self-motivation or drive? Yes and no. if no, they can be motivated, for motivation is a skill, which can and must be learnt. This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thusJob Performance = f (ability) (motivation)Ability in turn depends on education, experience and tuition and its improvements is a slow and long process. On the other hand motivation can be improved quickly.There are many options and an uninitiated manager may not redden know where to start. As a guideline, there are broadly seven strategies for motivation.Positive financial backing / high expectationsEffe ctive discipline and punishmentTreating people fairlySatisfying employees needsSetting work related goalsRestructuring line of worksBase rewards on job performanceThese are the primary strategies, though the mix in the final recipe will vary from workplace situation to situation. Essentially, there is a gap in the midst of an individuals actual state and some desired state and the manager tries to reduce this gap (Latham, 2007)Motivation is, in effect, a means to reduce and manipulate this gap. It is inducing others in a specific way towards goals specifically stated by the motivator. Naturally, these goals as also the motivation system must conform to the corporate insurance policy of the organization. The motivational system must be tailored to the situation and to the organization. (Adair, 2009)SHELL PAKISTAN is a huge apparatus and has about 2000 employees. To keep all of its employees motivated is a very complex task, because of the large number of employees and as from e ach one employee has his/her own personality. It becomes virtually impossible to devise techniques that match the personality of all the employees. So for this purpose they have certain influences and policies get marriedtly for all the employees of the organization.MOTIVATIONAL THEORIES ADOPTED AT SHELL PAKISTANAlderfers ERG TheoryAlderfers conjecture is called the ERG guess Existence, Relatedness, and Growth. Alderfers ERG Theory can well be compared with Maslows Hierarchy of Need Theory cause Alderfers has tried to cover all the points as discussed by Maslows with a little change, which is discussed beneath. . (FTC, 2009)ExistenceExistence refers to our concern with basic material existence requirements what Maslows called physiological and safety needs.RelatednessRefers to the desire we have for maintaining interpersonal relationships similar to Maslows social/ get by need, and the external component of his esteem need.GrowthRefers to an intrinsic desire for personal de velopment the intrinsic component of Maslows esteem need, and self-actualization. (Latham, 2007)Difference between Maslows Hierarchy of Need AlderfersAlderfers ERG theory differs from Maslows Need Hierarchy insofar as ERG theory demonstrates that more than one need may be operative at the equivalent time. ERG theory does not assume a rigid hierarchy where a lower need must be substantially satisfied before one can move on. (FTC, 2009)ERG Theory argues, like Maslows that satisfied lower-order needs lead to desire to satisfy high-order needs but multiple needs can be in operation(p) as motivators at the same time, and frustration in attempting to satisfy a higher-level need can military issue in regression to a lower-level need. (Adair, 2009)Alderfers ERG Theory AT SHELL PAKISTANExistenceSHELL PAKISTAN gratifies the need for existence and the employees at SHELL PAKISTAN think that their basic needs are being satisfied but they dont wait to be completely satisfied with it especia lly with the material rewards that they get. For e.g.Average SalaryThe employees at SHELL PAKISTAN are not satisfied with their salaries and they consider it to be average. This view is strongly found in the lower pit employees and the contractual employees. Though the upper level employees that include the Departmental Heads, General Managers and above seem to be much satisfied with what they are paid.Excellent Working EnvironmentThough the average salary seems to be de-motivating factor for the low level employees and the contractual employees but due to the excellent working environment that SHELL PAKISTAN provides, these employees seem to be seldom de-motivated. It was surprising for us to find that there had been various employees who just cute to work in SHELL PAKISTAN because of the working environment they provide regardless of what they are paid and what job responsibilities are they given. This turned out to be one of SHELL PAKISTANS strongest points.Job SecurityWorking at SHELL PAKISTAN seems to be a secure job as far as the permanent and high-ranking employees are concerned but the contractual employees never find it to be as secure. But due to job security being a major issue in Pakistan today, these contractual employees were hesitant to representative their complaint. (Latham, 2007)Insurance health check BenefitsAll permanent employees at SHELL PAKISTAN enjoy the Life Insurance and Medical Benefits that are entitled to them. In contrast the contractual employees realizing the downward trend in the economy, just want a stable job regardless of the insurance and medical benefits provided by SHELL PAKISTAN. (Latham, 2007)Employee SafetyThe employee safely is given top most importance and they also have an emergency evacuation system with which the undefiled organization can be evacuated within minutes. The employees also given various training and sometimes perform various drills for employee safety. The employee seems to be satisfied with the safety that SHELL PAKISTAN provides to them.RelatednessThese needs are social in nature and they are about the interpersonal relationships of the staff.Good Working RelationshipAt SHELL PAKISTAN, these needs are quite well satisfied since the employees have a good working relationship even though there is an air of competency surrounding them.Self Differences between High Level EmployeeIt has also been sight that few of the high level employees at organization have some self differences that are veritable due to status problems and ownership problems which effect the process of maintaining a good interpersonal relationship but then again the high level employees are professionals and they tend to forget these difference when they meet each other a global level. (Latham, 2007)Company Events and PrivilegesAll employees are given the special privilege to join and use the SHELL PAKISTAN club, gym, attend in Company events, dinner etc thus allowing them to intermingle with each mor e.GrowthThe permanent and high-level employees are satisfied with the growth opportunities that SHELL PAKISTAN provides them every now and then.TrainingEmployee training workshops are conducted on a need basis. Trainings are carried out in areas such as advantage of Business Communication skillsUsage of new Computer softwareEncourages IdeasEmployees are encouraged to put forward any creative, beneficial ideas. If the idea seems to be attractive, SHELL PAKISTAN gives the employees the opportunity to implement the idea. This turns out to be a very encouraging and motivating approach for the employees and later on the employees are rewarded if the idea is implemented well. (Latham, 2007)Employee Job RotationFor the purpose of employee growth and increase in motivation, employees are often rotated within or between departments.Equity TheoryTheory OverviewEquity (or in faithfulness) is a psychological state residing within an individual. It creates a feeling of dissonance that the indivi dual attempts to resolve in some manner (Latham, 2007)Equity is a social comparison process, resulting when individuals compare their pay to the pay of others. There is no rational or single frank pay rate for any given job or individual. Equity is a subjective evaluation, not an objective one. Based on the comparisons that an individual uses, each individual is likely to develop different perceptions of equity. (Latham, 2007)The comparisons that individuals use tend to fall into four classes of comparisonSelf Inside An employees experiences in a different position inside his up-to-date organization. (Adair, 2009)Self outside An employees experiences in a different position outside his current organization.Other Inside other Individual or group of individuals inside the employees organization.Other Outside Another Individual or group of individuals outside the employees organization.(Latham, 2007)Individuals determine equity by comparing their contributions (job inputs) and their rewards (job outcomes) to those of their comparisons. This comparison takes the form of a ratio and if this ratio is in balance, the individual perceives equity. Inequity is experienced when ratio is out of balance. thence when an individual perceives that his/her contribution is equal to the comparison and his/her reward is lower or his/ her contribution is greater and reward is equal, inequity is felt. (Latham, 2007)The individual responses to inequity includeLeaving the organizationReduction in performance, principally redundant role behaviorAttempting to increase ones payAttempting to reduce the performance of othersRationalization- perceptually altering reward and/or contributionWhat do individuals view as relevant contributions? Given the perceptual nature of equity, the answer varies with each individual however, contributions fall into a number of categoriesJob contributions embroil the factors that differentiate one job from another. They typically include responsibilit y, skills, education, and working conditions required by the job itself. (e.g., individuals working in jobs requiring greater levels of responsibility generally expect higher levels of pay). (Parson and Maclaran, 2009)Personal contributionsInclude attributes the individuals bring to the organization that they believe differentiate them from others such as experience, longevity and extra education (e.g., individuals with greater seniority often expect higher levels of pay).Performance contributionsInclude the extra effort/results that differentiate one employee from another (e.g., individuals who perceive that their performance is better than others with whom they work, often believe they are entitled to higher levels of pay. (Latham, 2007)Typical Management interestsManagers generally define pay-related problems in terms of their behavioural consequences (turnover or performance). Therefore, inequity itself is not generally viewed as a management problem unless it appears to be rela ted to turnover of reduced performance. Since the links between turnover and pay are often much clearer than those between pay and extra role behavior, turnover often becomes the only managerial focus. Therefore, typical management interests relate to keeping the employees who it deems valuable.(Latham, 2007)Typical Employee InterestsFrom the employee perspective, the perception of inequity is a problem in itself. A unions interests lies in achieving equity for the greatest number of its members, regardless of their ability to leave the organization. In fact, it is a unions responsibility to bargain for the interests of those with express individual power or marketability.Low morale is often a consequence of inequity. Even when low morale is not manifested in turnover, reduced performance, to reluctance to take on extra duties, from the employee perspective, it is still viewed as a problem. (Adair, 2009)Equity Theory AT SHELL PAKISTANEmployee Performance AppraisalEmployee performan ce idea procedure is highly accountable thus leaving no chance of inequity among employees.Employee Salary EvaluationAn employees educational qualification is given highest importance when evaluating salary. It may be possible that a lower grade employee, within the same or different department, has a higher salary than someone in an immediately higher grade.Thus inequity sometimes arises among employees working in a higher group within the same or different departments. (Parsons and Maclaran, 2009)Expectancy TheoryTheory OverviewThe expectancy theory argues that the strength of a purpose to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. In more practical terms this theory saysThat an employee will be motivated to exert a high level of effort when he or she believes that the effort will lead to a good performance idea that a good performance appraisal will lead to organizational rewards like a bonus, a salary increase, or a promotion and that the rewards will satisfy the employees personal goals (Latham, 2007)ExpectancyThe expectancy is the sentiment that ones effort will result in attainment of desired performance goals. This belief, or perception, is generally based on an individuals past experience, self-confidence (often termed self-efficiency) and the perceived difficulty of the performance standard or goals. (Adair, 2009)InstrumentalityThe extent of individuals belief of performing at a particular level will lead to the attainment of a desired outcome.ValanceThe extent of attractiveness of rewards offered by an organization that must satisfy an individuals requirements retain them by prospect potential development within career organization.Example Include Do I want a bigger raise? Is it worth the extra effort? Do I want a promotion?Expectancy Flowchart(VroomV H.(1964) Work And Motivation)ValenceInstrumentalityExpectancyOU TCOME featEFFORTREWARDExpectancy Theory states that the strength of a tendency to act in a certain way depends on the strength of expectation that an act will be followed by a given outcomes and on the attractiveness of that outcome to the individual. (Parsons and Maclaran, 2009)Expectancy Theory AT SHELL PAKISTANAt SHELL PAKISTAN the employees believe in maximum effort which leads to good performance which further results in the outcome in the form of rewards like a raise in income, promotion, performance appraisal letter etc that contribute towards their personal goals.Contractual Employee ViewsThe contractual employees are also aware of this theory but they dont follow it because it has been found that their basic aim is to become a permanent employee. But becoming permanent employee doesnt entirely depend on the performance. It also depends if there is any permanent slot available. So the contractual employees are aware of the facts that even if they perform well, they cannot be come permanent unless there is a slot available. So this serves as a very de-motivating factor for the contractual employees and this is the reason they dont hesitate to switch the job whenever they get even a frail better opportunity or a permanent place in some other organization. (Adair, 2009) lawsuitAt SHELL PAKISTAN, the employees are aware of the fact that if they work competently and put their efforts, they will be able to attain the task performance, as the effort expanded by them will have a positive result.PerformanceWhen the employees of SHELL PAKISTAN put their efforts, they attain the desired performance level and consequently are evaluated on that ground. (Latham, 2007)Instrumentality Instrumentality is also quite high in the company as the management assigns a certain % of work that the employees have to achieve, through which, they are evaluated at the time of dispensing rewards. The % of work is in terms of yearly goals, monthly goals and weekly goals.RewardsWhen t he employees attain certain level of work performance gauged against the goals jell at the start of the year, they are positively evaluated and get rewards in shape of annual increment and organizational performance rewards etc.Valance The employees attach a great deal of value to the rewards they get. The rewards are often in the form of a praise or recognition, to which the employees attach a great deal of significance. monetary rewards are costly and require loads of time and energy. Therefore the management is not too express feelings on imparting such gifts. (Latham, 2007)OTHER MOTIVATIONAL FACTORS AT SHELL PAKISTANEmployee AppraisalAt SHELL PAKISTAN, employee appraisals are conducted annually to evaluate their work related and personal performance. The process of appraisal works in various steps and the HRM department is proud to have such a system instilled in the company where no one objects to the appraisal process as its considered to be the fairest attempt of grading a n employee in the company.The appraisal process is held in between the months of July and June every year. Increments and promotions are devised after this period that becomes effective from the month of October, the same year. Performance Appraisal at SHELL PAKISTAN is a six step approach.Step 1SHELL PAKISTAN HR department have designed two forms named as Form 1A and form 1B to measure the milestone, rear achievements that were made last year. This is done by comparing the goals set last year for each individual employee under their department. Once measured, it is sought out to what extent the company was successful in achieving its target. Also, targets are set for the next year on the basis of this measurement.Step 2In the next step, HRM department does performance analysis by distributing to departmental heads and supervisors Form 2A and 2B (Collectively known as Employee Development Report) to measure the employees capabilities on 24 different attributes and of the attribute is rated on the scale of 1 to 5 summary of these points is reflected in the table belowRatingPoint Summary1Inadequate,Not satisfactory2Marginal,Below Average3Average4Above Average5OutstandingThe 24 different attributes are shared in to key 4 sections a summary of those is listed belowEmployee Development Report (EDR)A What did the employee satisfy?Quality of workCost objectiveProfit objectiveDevelop peopleCommitment to company vision, value and corporate objectiveB Gets the job donePlanningOrganizational communication analysis