motivation term paper

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Zaman Mahmud Habib 03-03943-1 Sec: B Nazmul Md. Sarjil Jannat Noor- E Junaeid md. 03-03765-1 03-03941-1 03-03688-1 Sec: C Sec: B Sec: C

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Page 1: Motivation Term Paper

Zaman Mahmud Habib 03-03943-1 Sec: B

Nazmul Md. Sarjil Jannat Noor- E Junaeid md.03-03765-1 03-03941-1 03-03688-1 Sec: C Sec: B Sec: C

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Organizational Behavior (OB) is the field of study that investigates the impact that individuals, groups and structure have on behavior within organizations, for the purpose of applying such knowledge toward improving an organization’s effectiveness. It is the study of human behavior in organizational settings, of the interface between human behavior and the organization and of the organization itself.

The study of organizational behavior can greatly clarify the factors that affect how managers manage. It is the field’s job to describe the complex human context in which manager’s work and to define the problems associated with that realm.

The value of Organizational Behavior is that it isolates important aspects of manager’s job and offers specific perspectives on the human side of management. These are: People as organizations, people as resources and people as people.

Fields of OB

1. Psychology: It is the science that seeks to measure, explain and change the behavior of human and other animals.

2. Sociology: It is the study of people in relation to their fellow human beings.

3. Social Psychology: It is the area within psychology that blends concepts from psychology and sociology and that focuses on the influences of people on one another.

4. Anthropology: it is the study of the societies to learn about the human beings and their activities.

5. Political Science: It is the study of the behavior of individuals and groups within a political environment.

Importance of OB

Globalization: It means working with people from foreign and different cultural backgrounds. It is due to Internationalization in business and economy.

Work force Diversity: This means the increasing heterogeneity of organizations with the inclusion of different groups.

Total Quality Management (TQM): TQM is a philosophy of management that is driven by the constant attainment of

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customer satisfaction through the continuous improvement of all organizational processes. There are 2 main of points of TQM, which are:

Customer is the King

Never be satisfied with the quality of your product

Information Technology (IT): Rapid change is taking place in the technological field. OB is needed for these changes, so the employees of companies and the company itself are up to date with the latest technological advancement.

Improving People Skills: People Skill is very important for an organization. This means how strong is their employees are regarding their production.

Improving Ethical Behavior: Ethics means the situation in which an individual is required to define right and wrong conduct. OB helps to improve ethical behavior in the organization.

The processes that account for an individual’s intensity, direction and persistence of effort toward attaining a goal are called Motivation. It is derived from the word MOTIVE, which refers to a person’s mental state.

Motivation and its Importance

Motivation is the set of forces that lead people to behave in particular ways

Motivation is important in organizations because in conjunction with ability

and environment, it determines performance.

Process of Motivation

Need

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It is the first step in the motivational process. Need it the difference between something that one have and what someone desire to have.

Tension

The next step is tension. Need leads to tension. Tension occurs to fulfill the need.

Drive

The tension leads to drive. Drive is the motivation. It is the activities that one does to reach their need.

Change in Behavior

A person’s behavior changes due to the drive. Since a person needs to a lot of different things due to drive there is a change in his or her behavior.

Reduction of Tension and Fulfillment of Need

Through drive and change in behavior a person achieves what s/he wants to achieve and thus there is a reduction of tension and their need is fulfilled.

The motivation process can be show with the following Diagram

Need

Tension

Drive

Fulfillment of Need

Change in Behavior

Reduction of Tension

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Theories of Motivation

There are two kinds of theories of Motivation. They are:

1. The Content Theory

2. The Contemporary Theory

There are FOUR kinds of theories under Content theory.

1. Maslow’s Theory

According to Maslow’s theory there is hierarchy of five needs – physiological, safeties, social, esteem and self-actualization; as each need is substantially satisfied the next needs become dominant. These needs are:

1. Physiological: Includes hunger, thirst, shelter, sex and bodily needs.

2. Safety: Includes security and protection from physical and emotional harm.

3. Social: Includes affection, belongingness, acceptance and friendship.

4. Esteem: Includes internal esteem factors such as self-respect, autonomy, achievement and external esteem factors such as status, recognition and attention.

5. Self-actualization: The drive to become what one is capable of becoming includes growth, achieving one’s potential and self-fulfillment.

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Maslow’s separated the five needs into higher and lower orders.

Lower-order needs: Needs that are satisfied externally; physiological and safety needs.

Higher-order needs: Needs that are satisfied internally; social, esteem and self-actualization.

2. ERG Theory

ERG theory is quite like the Maslow’s need theory.

According to ERG theory there are three groups of core needs:

E = Existence R = Relatedness G = Growth

Existence - Needs that a person requires to survive in the world. The physiological and safety needs of Maslow’s are known to be the existence needs.

Relatedness - These are needs that a person requires in case of being related and at the need of belongingness. These are the social and esteem needs.

G = Growth - The need that a person needs in need of personal growth. This is the self-actualization need.

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ERG Theory

Growth

Relatedness

Existence

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3. Theory X and Theory Y

Theory X

The assumption that employees dislike work, are lazy dislike responsibility and must be coerced to perform. Under theory X the four assumptions held by managers are:

Employees inherently dislike work and whenever possible will attempt to avoid it.

Since employees dislike work, they must be cored, controlled or threatened with punishment to achieve goals.

Employees will avoid responsibilities and seek formal direction whenever possible.

Most workers place security above all other factors associated with work and will display little ambition.

Theory Y

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The assumption that employees like work, are creative, seek responsibility and can exercise self-direction. Under theory Y four positive assumptions is contrast to the negative views of theory X are:

Employees can view work as being natural as rest or play.

People will exerciser self-direction and self-control if they are committed to the objectives

The average person can learn to accept, even seek, responsibility.

The ability to make innovative decisions is widely dispersed throughout the population and is not necessarily the sole province of those in management position.

4. Hygiene Factor Theories

This theory says that intrinsic factors are related to job satisfaction, while extrinsic factors are associated with dissatisfaction. This theory can be described through the x and y-axis. It is shown in graph that at 0 levels, a person is satisfied; at 10 they are motivated and at -10 they are dissatisfied. So a person has his or her physiological and safety need is at level 0. At the level 10 they have love, esteem and self-actualization needs. The factors that satisfy them are known as hygiene factors and the factors that motivate them are known to be the motivating factors.

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There are THREE kinds of theories under contemporary theory:

1. Equity Theory

According to this theory, individuals compare their job inputs and outcome with those of others and then respond to as to eliminate any inequities. People form equity erceptions by comparing their situation with that of someone else. If they experience equity they are motivated to maintain the current situation. If they experience inequity, they are motivated to use one or more strategies to reduce inequity.

Inequity Equity

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Motivation to reduce Motivation to maintain

Inequity current situation

1. Change Input

2. Change Outcomes

Comparison used by employees

Self-inside: An employee’s experiences in a different position inside his or her current organization.

Self-outside: An employee’s experiences in a situation or position outside his or her current organization.

Other-inside: Another individual or group of individuals inside the employee’s organization.

Other-outside: Another individual or group of individuals outside the employee’s organization.

2. McClelland’s Theory of Needs

David McClelland and his associates developed this theory. It says that achievement, power and affiliation are three important needs that help explain motivation.

1. Need for Achievement: The drive to excel, to achieve in relation to a set of standards, to strive to succeed.

2. Need for Power: The need to make others behave in a way that they would not have behaved otherwise.

3. The desire for affiliation: The desire for friendly and close interpersonal relationship.

3. Expectancy Theory

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It says that the strength of a tendency to act in a certain way depends on strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. The theory therefore focuses on three relationships:

1. Effort-performance relationship The probability perceived by the individual that exerting a given amount of effort would lead to performance.

2. Performance-reward relationship The degree to which the individual believes that performing at a particular level will lead to attainment of a desired out come.

3. Rewards-personal goals relationship The degree to which organizational rewards satisfy an individual’s personal goals or needs and the attractiveness of those potential rewards for the individual.

Individual Effort

Individual Performance

Organizational Rewards

Personal Goals

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Other Motivational Theories

There are some other Motivational theories, which is important for Motivational Purposes and for the Field of OB itself.

These theories are:

1. Cognitive Evaluation Theory

2. Goal Setting Theory

3. Reinforcement Theory

1. Cognitive Evaluation Theory

2. Goal Setting Theory

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3. Reinforcement Theory

Integrating Contemporary theories of Motivation

Motivation Applications

Variable Pay Programs: In order to make employees feel like owners in the company a portion of an employee’s pay is based on some individual or organizational measure of performance. The variable pay programs are piece-rate pay plans, profit-sharing plans and gain sharing.

Employee Involvement Program: It is a participative process that uses the entire capacity of employees and designed to encourage increased commitment to the organization’s success. Such as participative

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management, representative participation, work councils board representatives, quality circle and employee stock ownership plans.

Preface

This term paper is prepared for Organizational Behavior (OB), under the guidance of our course instructor FARHEEN HASSAN.

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This term paper is done in order for us, the students, to gain a better understanding of Organizations and its behavior among employees.

The company we have chosen to investigate is Royal Crown (RC) COLA, which is a part of PARTEX group. Our study was conducted on the Head office of PARTEX, which is located at Motijheel C/A.

Our study consisted of both qualitative and quantitative aptitude. Sample questionnaires as well as personalized interview among employees of RC Cola. In order to make an unbiased term paper, we consulted with multiple members of RC and visited the Head office numerous times.

We, the members of the group, would like to take this time to thank our course instructor for allowing us to Choose our own topic as well as the organization of our choice. This aspect has helped us to gain interest about our topic and brought about mutual co-operation from all the members of the group.

We would also like to acknowledge that this temp paper has helped us to gain a better understanding of Organization and how is works among it’s employees.

WE hope this temp paper will not only meet our instructors satisfaction but also will exceed it.

ACKNOWLEDGEMENT

In order for any term paper to be successful, it must be first reviewed by others. Any random person can not judge the result of our paper, only persons who have done such a term

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paper and respected faculty member can prove to be a proper judge.

Here is a list of people who has contributed to the success of this term paper:

Nazmuzzaman Bhuiyan

Faculty of AIUB

Syeda Nuzhat Zaman

Faculty of AIUB

Khan Habib Zaman

Director - National Life Insurance Co.

Reference:

For the success of this term paper, several books were used to guide us in understanding OB.

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These books mainly contributed to the THEORY part of our term paper.

For unbiased purposes, their names and authors should be mentioned.

The books used for our temp paper are as follows:

Organizational Behavior

Stephen P. Robbins

Organizational Behavior

Freed Luthanas

Research Paper on Organizational Culture

Dhaka University

Organizational Behavior

Mullins

Some Websites:

www.partexgroup.com

www.biz.com

Rc is a company of Partex group of Industry which is very known to our country as well as in the world . This is a corporate organization. Rc is growing. Rc already established itself in our country as a one of the leader in this field. It has a great opportunity as this is a part of partex Group of Industry and it tried

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to make its best use of that. This company is oriented with lots of systematic and distinct work group management level lower level employees. As our study says that they have good working condition which is most needed in any organization this is pre-designed. They designed their salary in certain way that their employees are quite satisfied with their salary. They give two bonus each employees, they give some allowances like medical insurance pension and other special allowances.

Their top level management body said that they always try to keep their working condition always smooth flexible and lively. And to make good working condition with all the necessary equipment and facilities relationship among the employees are very important. They want to be effective their employees to be effective employees they felt the necessity of the motivation of the employees. Never let them hopeless be optimistic make a wish or desire among all the employees.

They some time offer their employees some tour to relax. They often offer the marketing department of extra commission if they sale up to their set-up marked. And for that very employee of that department run to achieve their target and it’s actually increase their profit. Their top level management are all time busy to set up their new goal s they take motivation fees as if their target set up is achieved. They let the middle level management to coordinate with the lower level employees. They always feed back their employees performance and according to their performance they get some extra values/status money.

Does Motivation play important role to RC

Now-a-days RC beverage is very popular to our country. They mentioned that the recent increase of Rc is because of their employees behavior their team work and their heartfelt wish to work for the organization. We ask them that is because motivation of employees. They said YES of course this is the strong motivation of employees that they are successes to make the employees work up to mark. Motivation plays a very significant part in management

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for any organization like Rc .So develop or success in business one has to carefully develop and maintain the motivational factor in the organization.

Their motivation at different level.

They arranged the different motivation for different part of the management. They give the lower level employees make exists with his family. For the middle level workers the arrange interchange of their job so that they avoid the division of labour of course this is within group. The arrange some social program

The massage from the honorable Chairman of Partex Group of Industry:

Partex Group is committed to the prosperity of Bangladesh. Our enterprises play a positive role in alleviating poverty and generating employment an important objective of our country.

Revenue growth over the years is reflected by tweenty companies today that make up the group.

This has been possibly through continuous customer support and loyalty which we are proud. We endeavor to reach our products and services at the client's doorstep through a network of sales and distribution outlets. Human resources is our key asset, who translate the group's objectives into realistic performance. We are committed to have the best people and train them to get the best from them.

Ours is a free market economy, where private sector plays a key role in establishing an industrial base. We are striving to expand our industrial portfolio to meet the needs of a growing population. Starting from a stake in an agro based waste product unit making particle board, the group's industry now cover food, soft drinks, steel container, wood panel, furnitures, paper and cotton yarn. It

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has also stepped into the IT sector and eagerly anticipates further expansion of its product and service portfolio to make a sizable contribution to the national economy.

We believe in new ideas and technology which the road to the future. We shall travel this road hand in hand with our customers and our employees to seek and find prosperity for the Group and the country.

We are really impressed about their motto their mission and vision . This automatically impresses and helps their employees to work at their best effort.

Their Mission:

THE AIM

The Sky is not the limit for us, but our expectation is within limits. Therefore, our imagination soars beyond conventional barriers. We share or destiny with our beloved motherland. We want to serve her in the greater quest for national uplift.

THE WAY

To sincere traveller, the way is never too long. We believe in "progress in diversity and service through entrepreneur". We are, both merchants and missionaries, doers and dreamers, entrepreneurs and professionals. We are futuristic with emphasis on creating thinking and dynamic action.

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THE SPIRIT

Enterprise is our spirit. We manufacture superior import-substitute consumer and industrial products. Our cutting edge precision leads to greater public utility and hygiene, with a great care for the environment and human inhabitation. It is the very ingredient that gives our organization the integrity upon which our reputation is built and we zealously guard it everyday.

Many a thousand minds of our group contributed their gathered knowledge to keep the the wheels rolling that in turn leads us to our goal. This cumulative strength of knowledge is required, today , to find new solutions for the manifold problems of fast- changing economic cultural and ecological milieu.

Market presence Of Rc Bevarage since 1998

1998, Market Presense

25th June//

Introduction of RC Flavors ( RC Cola, Royel Cloudy Lemon,Royel Orange, Upper 10) in

300ml Glass bottle in Greater Chittagong, through 10 distributors.

Introduction of RC Flavors ( RC Cola, Royel Cloudy Lemon,Royel Orange, Upper 10) in

300ml Glass bottle in Greater Chittagong, through 10 distributors.

24th August//

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Introduction of RC Flavors ( RC Cola, Royel Cloudy Lemon,Royel Orange, Upper 10) in

300ml Glass bottle in Greater Noakhali. Four Distributors were mobilized.

28th October//

Just before the closing stages of 1998, after assigning of few new distributors, Partex

Beverage began distributing in Comilla, which added to its penetration in the southern

rigion.

20th May//

To add its line of products, Partex Beverage introduced three of RC’s flavours (RC Cola,

Cloudy Lemon and Royel Orange) in 1 liter Glass bottles. In one short, this new size was

introduced to all its existing markets ( Greater Dhaka, Chittagong, Noakhali and Comilla ).

2000, Market Presense

15th March//

For the first time in Bangladesh, as planned, Partex Beverage launched RC flavors in the

revolutionary food grade PET bottles in two sixes- 1.0 and 1.5 Liter, in Greater Dhaka.

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Within a few weeks, Partex Beverage, went on to penetrate not only their exixting markets,

but also markets that they had left unexplored due to the constraints of glass packaging.

26th March//

Just before the Asia Cup, which was held in Dhaka, Partex Beverage added a feather to

its cup, by launching its own mineral water brand, MUM. It was introduced in food grade

PET in two sizes- 0.5 and 1.5 Liter.

6th April//

Partex Beverage launched their products in Sylhet, one of the largest markets in

Bangladesh, with the introduction of RC Flavors and MUM in PET. This PBL did by

mobilization of distributors of Danish Distribution Network. By this pointing time,

Partex Beverage had mobilizing a total of 101 distributors.

7

Rc cola HISTORY:

A SOFT DRINK COMPANY IS BORN

Royal Crown Company Inc., originally called the Union Bottling Works, was born in Columbus, Ga. in 1905. A young graduate pharmacist, Claud A. Hatcher, began creating his

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own soft drinks in the basement of his family's wholesale grocery business. From these humble beginnings, Royal Crown Cola Co. grew to be the third largest soft drink company in America.

At first, the Hatcher Grocery Co. purchased bottled drinks from a local bottler and resold them to its grocery customers. As this part of the business grew, Mr. Hatcher insisted that the bottler pay the company a commission or compensate him in some way for handling the drinks. A dispute arose and Mr. Hatcher concluded that his company had purchased its last case of drinks from an outsider. Henceforth, it would produce and bottle its own drinks under its own labels.

The first line of beverages was named Royal Crown, and the first cola drink that he devised was called Chero-Cola. Subsequent generations were to apply the Royal Crown trademark to a cola, and it was to become so important that the corporation would be renamed "Royal Crown Cola Co."

Shortly after the Hatcher Grocery Company decided to engage in the manufacture of soft drinks, its officials organized the wholly owned Union Bottling Works. The manufacture and bottling of soft drink syrups continued within the framework of the Union Bottling Works until 1912, when the newly organized Chero-Cola Co. took over the business and vastly expanded it.

Among the early products were Royal Crown Ginger Ale, Royal Crown Strawberry, Royal Crown Root Beer and Chero-Cola.

As the sales of carbonated beverages by the Hatcher Grocery Co. became more important, it was decided to incorporate the

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Chero-Cola Co. In 1912, a charter was granted by Judge S. Price Gilbert in Muscogee County Superior Court of Columbus. The company was to manufacture a line of syrups and flavour concentrates to be sold to franchised bottlers who bottle and sell these concentrates and syrups under trademarks owned by the Chero-Cola Co.

In April of 1914, Chero-Cola Co. filed application in the United States Patent Office to register its trademark, Chero-Cola. The Coca-Cola Company then instituted a law suit that lasted for more than nine years.

In fact, litigation concerning the use of the company's trademark continued in one form or another until 1944 when the final victory was won by Royal Crown Cola Co., setting for all times its right to use the word "cola" in the name of its beverages.

The years 1914 - 1920 showed steady, but at times, rapid growth in sales. Both profits and company assets increased steadily.

THE FIRST CRISIS

Chero-Cola Co. faced its first crisis during World War I. In 1918, the Food Administration imposed a severe limitation on the use of sugar by less essential food products, which included soft drinks. This limitation failed to ease the sugar crisis, and in the latter part of 1918, a meeting was held by government officials for the purpose of declaring the soft drink industry non-essential and ordering it to be closed up for the

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duration of the war. However on presentation of the facts showing the widespread nature of the industry, its aggregate size and importance, the threat failed to materialize.

As a first effort to relieve the sugar shortage, Chero-Cola Co. established and operated its own sugar refinery.

It purchased a supply of raw sugar from Cuba. Chero-Cola Co. operated the refinery for a period of about three years. The refinery was not able to furnish the entire sugar requirements of the company, and its output had to be supplemented by the purchase of refined sugar. After approximately two-million dollars worth of sugar had been purchased, filling to capacity every company warehouse in Columbus, the inevitable occurred. The price of sugar dropped drastically. It hit a low of eight cents a pound in December of 1920.

To compound the troubles of the struggling company, the depression was well within sight. During the years, 1922 - 1924 common stock was sold in order to raise capital. It was not until 1926 that all of the debts of the company incurred during this first crisis were finally paid. The continuous growth and successful operation of the company during the years of 1912 through 1919 had generated a firm confidence in the business and its management. Without that confidence, the permanent financing which enabled the corporation to survive its first crisis could not have been obtained.

It was during this severe sugar shortage that a basic change in the operations of Chero-Cola took place. Heretofore all of its products were made and shipped in the form of finished bottling syrup, with all the ingredients, including sugar, already added.

Nothing had to be added by the bottler except water and carbonation.

The sugar crisis, along with the sky-rocketing price of sugar as a result of the shortage, forced Chero-Cola Co. to consider some other forms of manufacturing.

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Therefore, it was during the first half of the 1920s that the Chero-Cola Co. began to ship its products to bottlers in the form of concentrates instead of syrup. This procedure required the bottler to add pure cane sugar and water to the concentrate. At that time, one gallon of concentrate yielded 26 gallons of soft drink syrup. This resulted in savings, both in the container and in the freight cost. It also enabled the finished beverage to have a fresher taste. The policy of shipping concentrates instead of syrups has continued to the present day.

When the policy of franchising bottling plants was instituted in 1912, the first bottling plants, quite naturally, were in the southeast. Prior to World War I, Chero-Cola had acquired about 25 new bottlers each year. During the war and thereafter, because of the sugar shortage and economic conditions, no extensive effort was made to further expand the bottler network until 1922. Even so, by the close of 1921 there were over 200 plants in the bottler organization. From the beginning, the company had sought to establish its bottlers on a sound and permanent basis.

It had never been willing to grant an exclusive franchise or to sell its products to just any bottler willing to accept them.

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A I U B

Dear Sir/ Madam,

We the students of American International University - Bangladesh (AIUB), under the guidance of our course instructor, Farheen Hassan are conducting a survey on your Organization.

We are conducting this survey to see the importance of Motivation in a workplace and also to identify links between theories found in book as opposed to real life situation.

It would be appreciate if you could take some time to fill out this questionnaire.

We assure that all information provided by you will strictly be used for academic purposes only.

Thank you for your co-operation.

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Questionnaire

1. How Long you have been working this organozation

1. 0-5 2. 6-10 3.11-15 4. 16-20 5. more than 20

2. Have you required any pervious job experience for getting this job?

a. Yes

b. No

3. If Yes--- then why you left that job

a. Salary

b. Satisfaction

c. Superior Behavior

d. Other

4. Do you like challenging work in your field?

A] Yes B] No C] May be

5. Are you satisfied with your job?

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A] Yes B] No C] May be

6. Do you think that only money can motivated employees?

A] Yes B] No C] May be

7. Does your organization rightly motivated employees?

A] Yes B] No C] May be

8. Are you satisfied with your motivational strategy?

A] Yes B] No C] May be

9. Does motivation play a important role to achieve goal?

A] Yes B] No C] May be

10. Do you think high-risk taker are good always for any organization?

A] Yes B] No C] May be

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11. Does motivation varies on the basis of organization type?

A] Yes B] No C] May be

12. Do you like to be socially desirable by affilaitaion with others?

A] Yes B] No C] May be

13. People who are giving lower output in the can we motivated by applying need theory?

A] Yes B] No C] May be

14. Those who are very responsible and eager to work can we motivated by giving job security?

A] Yes B] No C] May be

15. Those who are afraid at Boss can good motivation help them to be free?

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A] Yes B] No C] May be