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Business Report
Table of Contents
Acknowledgement....................................................................................................... 2
Executive Summary..................................................................................................... 3
Chapter 1 - Introduction................................................................................................ 5
Chapter 2 - Literature Review......................................................................................... 6
2.1. Employee Motivation.......................................................................................... 6
2.1.1. Job Satisfaction and Employee Turnover.............................................................6
2.1.2. Herzbergs Two Factor Theory and Maslows Hierarchy of Needs..............................8
2.1.3. Psychological Well-being of the Employees..........................................................8
2.2. Company Profile Faysal Bank Ltd......................................................................10
Chapter 3 - Research Methodology................................................................................ 11
3.1. Adopted Research Methodology...........................................................................11
3.2. Data Collection................................................................................................ 11
3.2.1. Secondary Data.......................................................................................... 11
3.2.2. Primary Date............................................................................................. 11
3.2.3. Sampling.................................................................................................. 12
3.3. Limitation...................................................................................................... 12
Chapter 4 Findings and Discussion..............................................................................13
4.1. Interview........................................................................................................ 13
4.2. Findings......................................................................................................... 13
4.3. Discussion...................................................................................................... 14
Chapter 5 - Conclusion............................................................................................... 15
5.1. Conclusion..................................................................................................... 15
5.2. Recommendations............................................................................................ 15
List of References..................................................................................................... 17
Appendices............................................................................................................. 19
Appendix 1 Leadership Theories and Assumptions........................................................19
Appendix 2 - Questionnaire...................................................................................... 21
Business Report
Executive Summary
This paper aims at studying the importance of employee motivation and the factors
influencing it. The report examines a number of factors that lead to employee satisfaction and
dissatisfaction. The present study was conducted on the employees of Faysal Bank and the
factors influencing their work behavior were studied in detail. The main focus of the paper is
on how employees are managed in the organization and what measures are taken by the
management to motivate existing employees and attract more employees. The paper makes
use of different motivational theories for the analysis of the result.
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Chapter 1 - Introduction
The importance of employee motivation is now being recognized by all the major
organizations as it has a significant impact on the overall performance of the organization.
For any organization to achieve its goals it is important to keep their employee motivated and
satisfied. When employees are motivated the individual quality and quantity of performance
increases which directly has a positive effect on the overall performance of the organization.
Employee motivation leads to job satisfaction which also plays an important role in
increasing the overall efficiency of the organization. The presence of these factors may not be
as important but the absence of these factors can have an adverse affect on the organizational
performance. One of the main jobs of a manager is to motivate his or her employees. This
paper studies the level of employee motivation at Faysal Bank, DHA, Phase IV branch. In
order to develop a better understand of employee motivation and factors affecting it, the
paper begins with a review of the literature and theories related to employee motivation. Then
the adopt research methodology is discussed in Chapter 3. The next chapter includes the
findings and the results of the study. Conclusion and recommendations are explained in
Chapter 5.
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ii.
Evaluation of the expected utility of searching for another job and the costs
iii.
iv.
v.
vi.
vii.
employee turnover and it is only one of the negative effects of job dissatisfaction. Employee
dissatisfaction also brings down the overall productivity of an organization and decreases the
morale of the work force. According to Prices preliminary causal model of turnover, four
main external factors have a significant impact on job satisfaction and employee turnover
(Price, 1975). These factors include pay, primary group, communication, and centralization
(Price, 1975).
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The model also identifies two intervening variables of job satisfaction and opportunity that
have different affect on employee turnover. The model suggests that if the exogenous
variables have a positive effect on job satisfaction is likely to be low. However, if the
exogenous variable produce more dissatisfaction than satisfaction, and if there are other job
opportunities present in the environment, employee turnover is likely to be high (Price,
1975).
2.1.2. Herzbergs Two Factor Theory and Maslows Hierarchy of Needs
Frederick Herzbergs two-factor theory, also known as intrinsic/extrinsic motivation,
assumes that job satisfaction at workplace is influenced by certain factors and their absence
can lead to dissatisfaction (Willmott 2007). The two factors identified by him are:
i.
Hygiene Factors: Even thought hygiene factors such as, security, salary,
fringe benefits, working condition, interpersonal relations, etc, do not motivate
people at a work place nor inspire them; their absence can lead to
dissatisfaction which can have an adverse affect on the overall performance
ii.
(Willmott 2007).
Motivation Factors: These factors, which include recognition, growth, interest
in job, advancement at work, etc, are used to motivate the employees to
perform better.
A combination of these two factors results in job satisfaction and employees working
under these situations tend to perform better than employees who work in the absence of
these factors. This theory has been applied in the fields of information systems in particular.
Herzberg also concluded that the factors leading to job satisfaction are different from the
factors that lead to job dissatisfaction and so the managers should focus on eliminating the
factors leading to dissatisfaction. Another theory of motivation, perhaps the most popular
theory of motivation, is Abraham Maslows hierarchy of needs theory. He proposed that there
is a hierarchy of five needs in each individual that needs to be satisfied.
2.1.3. Psychological Well-being of the Employees
A study was conducted by Terry, Nielsen, and Prachard in 1993 to study the
relationship between work stress, social support, and the well-being of the employees. The
study was conducted on a large public sector organization from which a sample of 153
employees was randomly drawn. These employees were put under different working
conditions and then the impact of these conditions on their psychological well-being was
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observed. The following two hypotheses were tested in this research: H1: the high levels of
work stress would have a negative impact on job satisfaction and psychological well-being
[of the employees] (Terry, Nielsen, & Perchard, 1993, p. 168). H2: the perceived
availability of support of work-related problems would have both direct and stress-buffering
effects on levels of well-being (Terry, Nielsen, & Perchard, 1993, p. 168). It was found that
there was a strong relationship between role conflict and role ambiguity and psychological
well-being and job dissatisfaction (Glazer & Beehr, 2005). It was also found that
underutilization of skills had some impact on the psychological well-being of the employees.
Moreover, it was found that the support of the supervisor had a positive impact on the
psychological well-being of the employees, regardless of the level of the work stress. These
findings are consistent with the stress-support matching hypothesis which suggests that workrelated support provides as a shield against work-related stress (Cohen & Willis, 1985).
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2.2. Company Profile Faysal Bank Ltd.
Faysal Bank Limited was incorporated in Pakistan on October 3, 1994, as a public
limited company under the Companies Ordinance, 1984. Currently, the Bank's shares are
listed on the Karachi, Lahore and Islamabad Stock Exchanges. Faysal Bank is engaged in
Commercial, Consumer, Corporate and Islamic Banking activities.
Following the acquisition of RBS Pakistan, Faysal Banks footprint has expanded to
over 220 branches, with combined business assets of over PKR 250 billion, further
strengthening its balance sheet and placing it amongst the top ten banks in Pakistan. Faysal
Banks ambition is to provide par excellence service for its customers while meeting all their
financial needs.
Faysal Bank has a 3 fold objective in their processing of clientele.
Vision
Excellence in all that they do
Mission
Achieve leadership in providing financial services in chosen markets
through innovation.
Values
Daily code of conduct is exemplified by eight core values:
Four threshold values values at the heart of the brand.
Four differentiator values values that set the brand apart.
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3.2.3. Sampling
Sampling is the process of selecting a sample from the whole population that can be
used to fairly represent the population (Freedman, 2010). Sampling may be simple,
systematic, stratified, or clustered. For the present research, a simple random sampling
method has been used. For the present research, a random sample of 6 out of 10 individuals
was selected who were present at the organization. These individuals included three male and
three female participants.
3.3. Limitation
The descriptive nature of the qualitative research methodology used for this study
raises concerns regarding the researchers own understanding and opinion regarding the
research topic. This has been dealt with by gathering and describing data from secondary
sources which provide definite information related to the topic.
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relationship with their supervisors, opportunities to utilize their talent and to learn. However,
it was noted that the employees had a good relationship with their co-workers and were
happy with their job responsibilities and recognition for accomplishment.
The third part of the interview revealed that though the perception of the employees of
their organization is getting better their experience, their perception of their leaders was not
very positive. It was found that up to 83% of the employees agreed that there needs to be a
better communication between the supervisors and the employees and all of the employees
agreed that there is a need for improvement in the management style of the company.
Employees felt their supervisors and managers did not have the communication skills needed
to bring the best out of the employees. Almost all the respondents defined their relationship
with their supervisors as professional.
4.3. Discussion
It was noted that the environmental factors significantly altered the response of the
employees as the organization had been having electricity problems for two days when the
interview was conducted. It was also noted that there was unequal job distribution due to this
problem at the time of the interview. Some employees had nothing to do while others were
overloaded with work as only some of the systems were working. Keeping the environmental
factors aside, it was found that even though employees rated their relationship with coworkers are satisfactory, they were extremely uncomfortable filling the questionnaire in front
of the colleagues. There was also some hesitation in revealing their name on the
questionnaire. It was also found that the employees were unhappy about the scope of their job
and the only reason why the employees who were dissatisfied chose to continue with their
jobs was due the rewarding system, job security, vacation and sick leaves, and other benefits
offered by the organization to motivate the employees. It was also noted that the position of
job had a significant impact on the employee perception of the job, for example, the
relationship managers were not satisfied with their supervisor while the business coordinator
seemed to be very fond of her supervisor. Similarly, the tellers were unhappy with their salary
while the flood manager thought her salary was more than enough. All these factors played an
important role in employee satisfaction. It was also found that employees who had a good
relationship with their supervisors had a lower level of stress compared to the employees who
had a professional relationship with their supervisors. This is consistent with the findings of
the review of the literature which shows that the good relationship with the supervisors
buffers the employee stress (Cohen & Willis, 1985).
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Chapter 5 - Conclusion
5.1. Conclusion
It can be concluded that the level of employee motivation at Faysal Bank is not very
high nor low. Though employees seem satisfied with the working hours, vacations, rewards,
etc, there seem to much dissatisfaction with respect to the leadership style of the organization.
The employees do not seem very happy with the things are managed in the organization
which is likely to have a negative impact on the organization in the long term. It was also
noted that the respondents altered their answers in presence of other employees but they did
make an attempt to indirectly suggest that they are not completely satisfied with their jobs.
The main reason for this appears to be the lack of leadership in the organization and lack of
communication between the employees and their supervisors. If the organization does not
introduce changes in leadership in the organization it can lead to and increased rate of
employee turnover. It is clear from the results that relationship of the employees with their
supervisor plays an important role in increasing employee morale and motivation no matter
how good the rewarding system of an organization is.
5.2. Recommendations
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Utilization of Skills Managers should make sure that the each employee is fit for his
or her job. If the skills of the employees are underutilized this can result in boredom and
dissatisfaction. Each employee must be suited for his or her job position.
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List of References
Britten, N., Jones, R., Murphy, E., & Stacy, R. (1995). Qualitative research methods in
general practice and primary care. Family Practice , 104-114.
Cohen, S., & Willis, T. A. (1985). Stress, social support, and the buffering hypothesis.
Psychological Bulletin, 98 , 310-357.
Freedman, D. A. (2010). Sampling. Retrieved September 28, 2010, from Department of
Statistics: http://www.stat.berkeley.edu/~census/sample.pdf
Glazer, S., & Beehr, T. A. (2005). Consistency of implications of three role stressors across
four countries. Journal of Organizational Behavior, 26 , 467-487.
Lee, T. W. (1988). How job dissatisfaction leads to employee turnover . Journal of Business
and psychology, 2(3) , 263-271.
Locke, E. A. (1976). The nature and causes of job satisfaction. In M. D. Dunnette, Handbook
of industrial and organizational psychology (pp. 1297-1349). Chicago: Rand
McNally.
Miller, F. P., Vandome, A. F., & McBrewste, J. (2010). Maslow's Hierarchy of Needs.
Alphascript Publishing.
Mobley, W. H. (1977). Intermediate linkages in the relationship between job satisfaction and
employee turnover. Journal of Applied Psychology, Vol 62(2) , 237-240.
Nimalathasan, B., & Brabete, V. (2011). Job satisfaction and employees work performance: A
case study of peoples bank in Jaffna Peninsula, Sri Lanka. Jaffna Peninsula, Sri
Lanka: University of Jaffna.
Nohria, N., Groysberg, B., & Lee, L.-E. (2008). Employee Motivation. Harvard Business
review .
Price, J. L. (1975). A theory of turnover. In B. Pettman, Labor turnover and retention (pp. 5175). Epping: Gower Press.
Roethlisberger, F., & Dickson, W. (1939). Management and the worker. Cambridge: Harvard
university Press.
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Saari, L. M., & Judge, T. A. (2004). Employee attitude and job satisfaction. Human Resource
management, 43(4) , 395-407.
Smith, M. L. (1987). Publishing qualitative research. American Educational Research
Journal , 173-183.
Terry, D. J., Nielsen, M., & Perchard, L. (1993). Effects of work stress on psychological wellbeing and job satisfaction: The stress-buffering role of social support. Australian
Journal of Psychology, 45(3) , 168-175.
Thomas, D. R. (2003, August). A general inductive approach for qualitative data analysis.
Retrieved September 28, 2010, from Faculty of Medical and Health Sciences:
http://www.fmhs.auckland.ac.nz/soph/centres/hrmas/_docs/Inductive2003.pdf
Znaniecki, F. (1934). The method of sociology. New York: Farrar & Rinehart.
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Appendices
Appendix 1 Leadership Theories and Assumptions
School of Thought
The Great Man Theory
Assumption
Examples
born.
Trait theory is similar to the
combination of traits.
This theory focuses on the
actions of the leader instead
Role Theory
The Managerial Grid
Hersey and
learned by others.
These theories focus on the
situation rather than the
Blanchards Situational
Leadership
Houses Path-Goal
Theory of Leadership
Vroom and Yettons
Normative Model
Fielders Least
Preferred Co-Worker
Theory
Cognitive Resource
Theory
Strategic
Contingencies Theory
Leader Member
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leader-follower relationship
Exchange Theory
to perform better
This theory assumes that it is
Leadership
Bass Transformational
Leadership Theory
Burns
Transformational
Leadership Theory
Kouzes and Posners
Leadership
Participation Inventory
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Appendix 2 - Questionnaire
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Part I General Questionnaire
1. Name:
____________________________________________
2. Age :
____________________________________________
3. Job Position: _____________________________________________
4. How long have you worked for this company?
____________________________________________________________________
5. What previous positions have you held with the company?
____________________________________________________________________
6. How long have you held your current position?
_____________________________________________________________________
7. Has the organization been through any significant changes in the past?
_____________________________________________________________________
8. Briefly describe your work responsibilities (as you would on a resume):
_____________________________________________________________________
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Part II
What is you level of satisfaction with:
Not
Somewhat
Extremely
Satisfied
Satisfied
Satisfied
1
i.
ii.
iii.
iv.
v.
vi.
vii.
viii.
ix.
x.
xi.
xii.
xiii.
xiv.
xv.
xvi.
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Part III Other aspects of job
9. Does your supervisor keep you updated with what is going on in the organization?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________
10. Are you clear about your role in the organization?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________
11. Do you believe that your skills are underutilized? Why?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________
12. Do you believe that you are expected to do more work than you can handle?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________
13. Have you noticed any change in your perception toward the organization since your
employment?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________
14. Do you find yourself stressed out at the end of the day?
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________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________
15. Do you believe youre happy with your job? Explain.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________
16. Are you satisfied with the way things are managed in the organization? Explain.
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________
17. How would you describe your relationship with your manager(s)?
________________________________________________________________________
________________________________________________________________________
________________________________________________________________________
_________
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