Impact of Motivation on Workers Productivity in Alahad Textile

Methods in Business Research

Impact of Motivation on

Workers Productivity in Alahad Textile

ALAHAD TEXTILE

Dated: APRIL 25, 2012

			TABLE OF CONTENTS
	S.NO	Subject		Page
	1	Dedication and Acknowledgment		1
	2	Abstract		2
	3	Introduction:		3
	4	Literature Review		4
	5	Enhancing motivation in organizations		5
	6	Organizational Reward Systems		5
	7	Effects of organizational rewards		6
	8	Performance-based systems		6
	9	Study Problem		6
	10	Research Objectives		6
	11	Research Methodology		7
	12	Secondary Data Collection Method:		7
	13	Primary Data Collection Method:		7
	14	Design of Study:		7
	15	Subject under Study:		7
	16	Analysis of data tabulation		8
	17	Test of Hypotheses		14
	18	Chi-Square Analysis		15
	19	Decision		16
	20	Conclusion and Recommendations:		17
	22	QUESTIONNAIRE		18
	23	Bibliography		20

Abstract

This research reports highlights the different aspects of Motivation. It encompasses how motivation plays a key role in the enhancement of organizational productivity. It focuses what motivating factors are necessary to make organization a successful.

A research proposal has been developed to complete the whole report which has been approved by our respected teacher of MBR Sir Qazi Salman. On the basis of this proposal an effort has been made to compile the whole report.

The report tells us the contributing factors of motivation and organizational productivity of organization. Questionnaire has been attached at the end of this report which was the source of survey method.

The findings from this report will try to highlight the areas/points where there is discrepancy between the staff and workers and the Top management. This will helps the Top Management to understand the issues.

The results of this report will also benefit the Top Management as well as the labor union of the factory to understand easily what are the motivating factors for the employees and how could we increase the productivity and motivation level of the employees.

The findings of this study would help to further highlight the causes of frustrations among the employees and finding out the ways that how could we use motivation as a tool to eliminate or reduce the problems amongst the employees.

Furthermore this study will be very beneficial for the policy makers in the human resource functions of the organization. Also labor union officials and representative during negotiation meeting will find it very useful when putting together their “demands” and it will assist management in these other areas:

It will also help to outline the different approach to work motivation.

It will help to explain the meaning and underlying concept of motivation.

Introduction:

Motivation is present in every life function. Easy acts such as eating are motivated by hunger. Education is motivated by need for knowledge. Motivation can be anything from remuneration to coercion.

The report will also attempt to give answers to the question coming in the minds of management of any organization, as to what steps should they take that really motive the workers which would detain help the organization to be more productive and contribute to the growth of the organization.

The report will also help us to understand from the point of view of the workforce as well. We will try to find out what really motivates the workers and what the causes of poor performance and productivity are.

The purpose of this study include finding out whether there is any significant relationship between sufficient motivational factors and productivity to work among management, junior staff and contract staff respectively in different organization.

I will also try to find out how the staff at any organization, rate the motivational factors and their implications on them. Finally, it is expected that the findings of this study will serve as a basis for improving working relationship between adminnistration and workers.

Literature Review:

Motivation is a key factor in organizational learning due to its ability to make it possible employees function effectively. There are number of theories of motivation which can be useful to managers in motivating employees of organizations. The major theories of motivation have been classified broadly into three distinct categories including “needs theory, cognitive theory and reinforcement theory” (Islam and Ismail, 2008). Motivational theorists have identified basic hierarchical needs (Maslow, 1970) among individuals which should be fulfilled in order to achieve motivation; “existence” which refers to physiological aspects of work including secure working conditions, good remuneration, benefits, food and shelter etc; “relatedness” which refers to relationships, familial, professional and friendly; and “growth” which refers to “self esteem and self actualization” (Alderfer, 1972).

Motivation is present in every life function. Simple acts such as eating are motivated by hunger. Education is motivated by desire for knowledge. Motivators can be anything from reward to coercion. (Pan)

Motivation is characterized in two distinctive kinds: intrinsic and extrinsic. Intrinsic motivation is internal. Internal desires to perform a particular task, people do certain. An activity because it gives them pleasure, develops a particular skill, or It’s morally the right thing to do (FIU.EDU n.d.) Extrinsic motivation occurs when external factors compel the person to do something. Factors external to the individual and unrelated to the Task they are performing. Examples include money, good grades, and other (fiu.edu n.d.) However, there are many theories and labels that serve as sub tittles to the definition of motivation. For example: "I will give you a candy bar if you clean your room." This is an example of reward motivation. (universityofmotivation n.d.)

A common place that we see the need to apply motivation is in the work place. In the work force, we can see motivation play a key role in leadership success. A person unable to grab motivation and apply it will not become or stay a leader. It is critical that anyone seeking to lead or stay a leader. (oppapers n.d.)

Common to all organizations is the fact that they are relying on their people for the continued survival and existence of their organization. People, or the employees, are the key in sustaining the organization and this importance in their role gives responsibility to the organization to motivate them so as they can function more effectively. Motivation gives inputs to behavior by means of arousing, sustaining and directing such towards a thriving attainment of goals. Therefore, motivation is directly related with performance. Performance refers to the working effectiveness by which the employees does their job and judged according to their effectiveness and relevance. (universityofmotivation, n.d)

Following are the some vital factors through which employees are motivated. (Nadia Sajjad Hafiza 2011)

1. Pay
2. Security of job
3. Credit for work done
4. A meaningful job
5. Opportunity to advance
6. Comfortable, safe and attractive work conditions.
7. Competent and fair leadership
8. Reasonable orders and direction

1) Enhancing motivation in organizations

Managers may persuade motivation through the organization's reward systems, or they may adopt specific interventions resulting from one or more theories. (washington.edu n.d.)

2) Organizational Reward Systems

The organization's reward system is the basic structural mechanism that an organization uses to motivate workers. The reward system includes the formal and informal mechanisms by which employee performance is defined, evaluated, and rewarded. An organization's primary purpose in giving rewards is to influence employee behavior.

3) Effects of organizational rewards

Organizational rewards can affect individual attitudes, behaviors, and motivation. Edward Lawler describes three major generalizations about employee attitudes toward rewards.

• Employee satisfaction is affected by comparison of the rewards they receive with those received by others.
• Employees often misperceive the rewards received by others.
• The system recognizes that different people have different needs and choose different ways to satisfy those needs.

4) Performance-based systems

Organizational reward systems have traditionally either a fixed salary or hourly rate system or an incentive system. Fixed rewards can be tied directly to performance through merit pay systems, whereby people get different pay raises at the end of the year, depending on their overall job performance. Many organizations are experimenting with various kinds of incentive systems, which attempt to reward employees in proportion to their accomplishments. Four popular incentive systems include profit sharing, gain sharing, lump-sum bonuses, and pay for knowledge. (washington.edu n.d.)

Study Problem:

While many organizations believe that motivation will positively affect the performance of the employees and the organization as a whole, the changing nature of organizations, its dynamics and structure could affect the delivery of motivation. In this approach an effort will be made how Motivational Factors will impact the performance of the employees and enhance Productivity. (washington.edu n.d.)

Research Objectives

In this research I will be executing to evaluate and confirm the effects of motivation on the performance of Al Ahad Textile employees as I have selected this organization for the research purpose. In Al Ahad Textile, the following research objectives will be addressed.

• Assess the importance of motivation as taken from the perspectives of the employees working in Al Ahad Textile.
• To Evaluate specific aspects of organizational performance does motivation plays a greater role.
• To analyze how organizations motivate their people to boost their performance.

Research Methodology

In research methodology I have make my research more appropriate and more meaningful I take two types of data collection methods which is used in this study.

• Primary Data Collection
• Secondary Data Collection

However major importance is given on the primary data collection by using the questionnaire survey technique and interviews have been used.

Secondary Data Collection Method:

In order to collect secondary data with reference to the employees strength, business processes and basic information about the company I have referred Organization official website: www.AlAhad.com.

Primary Data Collection Method:

For the collection of primary data I have used observational techniques, interviews with the employees, and used questionnaire to get information about the motivational level of the employees. These employees vary from Management, Staff and Contractual staff.

Design of Study:

Actually the nature of the design of the study is to identify the problems and make assessment for the Top Management review.

Subject under Study:

I have requested 30 respondents from the staff of Alahad Textile (Management, Permanent Staff And Contract Staff) to give answer to a simple questionnaire.

The work force in Alahad Textile can be divided into three basic categories and questionnaire is filled by these people:

1. The contract staff,

2. The permanent staff officers on salary

3. The management staff officer

Management staff comprises of 9% of total sample, 53% are permanent staff & 37.5% are contractual staff.

ANALYSIS OF DATA TABULATION

Q.1. Do you think that Motivation is important in work?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	11 12 4 2 1	37% 40% 13% 7% 3%
Total	30	100%

Q.2. Do you think that it is important that the CEO should cooperate with staff?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	6 9 8 4 3	20% 30% 27% 13% 10%
Total	30	100%

Q.3. Do you think that the workers put in their best when they are placed on little or no supervision at all?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	13 3 3 4 7	43% 10% 10% 13% 24%
Total	30	100%

Q.4 Do you think that high salaries are the best tools with which to motivate the _workers?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	2 8 8 7 11	7% 22% 22% 19% 30%
Total	30	100%

Q.5 Do you think that Well-motivated staff has a positive approach towards work?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	14 6 4 3 3	47% 20% 13% 10% 10%
Total	30	100%

Q.6. Do you think that the Workers’ welfare should be a main issue of concern for the top management?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	1 24 0 1 4	3% 80% 0% 3% 14%
Total	30	100%

Q.7. Do you think that Hospitals, Staff untidiness and Staff residency are important factors if a worker performs _well?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	3 3 8 2 14 3	10% 3% 27% 13% 47% 10%
Total	30	100%

Q.8. Do you think that some workers can put their best even without any motivation?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	10 9 1 4 6	33% 30% 3% 13% 21%
Total	30	100%

Q.9. Do you think that the workers will still perform well even if their salary gets delayed?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	4 2 2 3 19	13% 7% 7% 10% 63%
Total	30	100%

Q.10. Do you think that organizing parties and cricket matches is good and helps to encourage staff performance?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	9 12 5 2 2	30% 40% 16% 7% 7%
Total	30	100%

Q.11. Do you think that only monetary rewards can bring out the best from the workers?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	2 2 1 11 14	7% 7% 3% 36% 47%
Total	30	100%

Q.12. Do you think that Inter-Personal relationship between top management and staff should be _encouraged?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	9 7 12 1 1	30% 24% 40% 3% 3%
Total	30	100%

Q.13. Do you think that real workers union that could fight for staff welfare within Alahad Textile should be established promoted and encouraged?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	8 12 5 2 3	27% 40% 16% 7% 10%
Total	30	100%

Q.14. Do you think that leisure facilities are important in every organization?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	6 11 6 7 0	20% 37% 20% 23% 0%
Total	30	100%

Q.15. Do you think that it is important to praise and reward for good work?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	9 9 1 5 6	30% 30% 3% 17% 20%
Total	30	100%

Q.16. Do you think that Rewarding good work can create healthy competition_?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	9 11 1 7 2	29% 38% 3% 23% 7%
Total	30	100%

Q.17. Do you think that workers perform best when working equipment and facilities are sufficiently provided?

Options	Participants	Percentage
Strongly Agree Agree Not Sure Disagree Strongly Disagree	12 10 2 4 2	40% 33% 7% 13% 7%
Total	30	100%

Test of Hypotheses:

Hypothesis 1.

There is no significant relationship between motivational factors and work productivity for Al Ahad Textile

Chi-Square Analysis

We shall employ the Chi-Square (X²) analytical method to analyses and test the hypotheses as stated above.

X² =  (Of - Ef)²

Ef

_{Where X}² _{= Chi-Square}

Of	=	Observed frequency
Ef 	= =	Expected frequency Summation (Addicts on sign)

To prove these hypotheses, we shall select relevant questions from the questionnaire.

To prove hypothesis 1: We shall use questions 5 and 8 on the questionnaire. Question 5 states thus: Well-motivated staffs have a positive attitude towards work.

Question 8 states thus: Even without motivation some workers still put in their best.

The data/figures reached/got by these questions shall be tabulated into a contingency table.

_{Question 5&8 test of hypotheses contingency table}

Options	Questions		Total
	5		8
SA		14 1		10 6	24
A		06 2		09 7	15
UD		04 3		1 8	5
D		3 4		4 9	7
SD		3 5		6 10	9
TOTAL		30		30	60

The next logical step is to calculate Ef (Expected frequencies) for the already Observed frequencies (Of) labeled _{1, 2......10 in} an italic formant in the table

E₁ = 16.90 E₄ = 6.44 E₇ = 10.40

E₂ = 14.44 E₅ = 9.60 E₈ = 6.45

E₃ = 2.25 E₆ = 22.6 E₉ = 5.04

Applying the formula X2 ⁼  (Of - Ef)²Ef

_X² _{= 99.26 preparation}

The next step is to calculate df (degrees of freedom). df = (r-1) (c-1) where r = number of rows and c = number of columns. Where our contingency table, r = 5 and c = 2. df = (5 - 1) (2 - 1)

= 4 x 1

= 4

Assuming a 5% level of significance, when df = 4, the value of X² from the table of critical values = 9.49.

Test Statistics
	Well-motivated staffs have a positive attitude towards work	without motivation some workers still put in their best
Chi-Square	47.500a	28.800a
Df	4	4
Asymp. Sig.	.5	.5
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 20.0.

DECISION:

Because the calculated value of X² (99.26) exceeds or is greater than the critical value of X² (9.49), we reject the null hypothesis and accept the alternative, which would state that there is a significant relationship between motivational factors and work productivity of BK Textile

Results from the Study:

This study was carried to find out if there is any significant relationship between the motivation and productivity.

This study was also carried out on the basis that money (salary) or financial incentive being a right of the worker is taken for granted and that certain other factors are also needed to adequately motivate or satisfy the workers.

Factors include job security, recognition etc. the new element of irregular or nor payment of salaries in the organization which became current after the study was conceived and started, how ever, tended to slightly alter the findings of this study with a little tilt towards the importance of financial reward.

The findings of the study tells us that workers are facing fear, tension, anxiety and frustration and it is producing a direct impact on the productivity, i.e. making the productivity very low. The rate at which workers are changing job is alarming.

Although the organization is able to pay salaries regularly, it is not enough to evaluate the spirit of the employees as the employees also need some other motivational factors that have been mentioned on the report like cricket matches and other recreational activities.

Every human being wants recognition and respect and the Al Ahad Textile employees are not different in fact the worker seems to want and need it more. The findings of this study point to the need for the leaders of the Al Ahad Textile to recognize this.

A recognition or appreciation of an effort made or a good job done is likely to produce even better job apart from making a happier and more satisfied worker. But if when the work is well done, it attracts no comment but whereas the slightest mistake is condemned (negative stroking) then the likelihood is that more dissatisfied workers with less zeal or productivity for the job will be produced.

Conclusion and Recommendations:

This study reveals that the workers motivational processes in Al Ahad textile have undergone tremendous change since the organization was established. Some of this change was essential for its growth and to make it adjust to the changing economic and socio-political evolution of the country.

- Staff development to enhance productivity and promote self fulfillment should be encouraged as a matter of deliberate policy;

- The managers should de-emphasize seniority and emphasize merit and hard-work as yardstick for promotion;

- There should be a review of the reporting system and reporting staff should be inducted in the act of reporting to make the grading in the reports more uniform;

QUESTIONNAIRE

No.	Question	SA	A	UD	D	SD
1.	Motivation is important in business.
2.	It is important that the Chief Executive Officer cooperates with Staff.
3.	Workers put in their best when they are placed on little or no supervision at all.
4.	Fat salaries are the best tools with which to motivate workers.
5.	Well-motivated staffs have a positive approach towards work.
6.	Workers’ welfare should be a paramount issue of concern to top management.
7.	Hospitals, staff clubs, staff quarters etc are important if a worker must perform well.
8.	Even without motivation, some workers still put in their best.
9.	Workers will still perform well even if their salary is delayed.
10.	Do you think that organizing parties is good to encourage staff performance?
11.	Only monetary rewards can bring out the best in workers
12	Inter-personal relationship between top Management and staff should be encouraged.
13	Groups that fight for staff welfare within an Establishment should be established, promoted and encouraged.
14	Recreational facilities are important in every organization.
15	It is worthwhile to reward good work and excellence.
16	Rewarding good work and excellence can contribute to more excellence and healthy competition.
18	Staff work best when working equipment and facilities are efficiently provided.

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