Employee

Motivating in
Private
Organization
By
Ali Dahmal Al-Aamri

Project paper submitted in partial

fulfillment of the requirements
for the degree of

Master of Business Administration

Open University of Malaysia

(2009/2010)
  

Abstract

Business all over the world today is very challenging. Internal and external
operating environment factors continue to challenge corporate performance
and revenue growth. To stay profitable in the highly challenging and
competitive global market economy, all the factor of production - men,
machine and materials – should be wisely managed. Among the factors of
production the human resource constitutes the biggest challenge because
unlike other inputs employee management calls for skillful handling of
thoughts, feelings and emotions to secure highest productivity. Employee
motivation delivers long-term benefits in the form of high productivity. A
motivated employee is a valuable asset which delivers immense value to the
organization in maintaining and strengthening its business and revenue
growth. The attached project paper studies employee motivating in private
organization. This is accomplished through the six main chapters of this
project study which includes: Introduction, Research Methodology,
Literature Review, Data collection and Analysis, and Summery and
Conclusion. The survey/questionnaire research method was used as the basis
for the research design and results of this survey is analyzed and discussed.
This project paper ends with summery and conclusion.

  ii
  

Application to conduct research paper

1. PART A: STUDENT’S PARTICULAR

Name: Ali Dahmal Hamed Al-Aamri

Student Number: 51061172

2. PART B: PARTICULAR ABOUT THE PROJECT

Title of the project: Employee Motivating in Private Organization

Research objective: To identify the factors that promote positive

motivational behavior among employees. This in turn would improve
customer service, effective time management in each organization.

Proposed research method: Survey/Questionnaire

3. PART C: FACULTY’S INPUT

Topic chosen: Acceptable / Not Acceptable

Suggested supervisor for the student: Dr. Anwar Al-Jawder

  iii
  

Acknowledgments

My gratitude first goes to the Almighty Allah, with His word: Qun Fa Yaqun (Qur’an
Sort Miriam 19: 35). I would like to express my sincere recognition to my advisor Dr.
Anwar Al-Jowar who provided me with quality and friendly advisory to finalize this
work. Sincere regards also due to Mr. K Joshi and all the members of the University
for their Valuables Input. My sincere thanking goes to my parents, my wives and all
my family for their suffering, encouragement, sacrifice whilst studying in the kingdom
of Bahrain since 2007 and throughout until graduation. I would like to thank most
sincerely Saudi Aramco, EXPEC Advanced Research Center granting me a approval
to make my study possible in Kingdom of Bahrain. I am also, deeply grateful to Mr.
Saleh Al-Ammari, Dr. Saleh Al-Mutairi, Mr. Ali Al-Zahrani ,Mr. Ayman Al-Nakhli
and all my friends for the full support and encouragement to finish my study.

  iv
  

Approval

Name of student: Ali Dahmal Hamed Al-Aamri

Student Number: 51061172

Director: Centre of Graduate Student, Open University of Malaysia

Dear Sir,

Attached is the project paper with the following chapters for your evaluation and
examination.

Chapter 1: Introduction

Chapter 2: literature Review

Chapter 3: Research Methodology

Chapter 4: Data collection and Analysis

Chapter 5: Summery and Conclusion

I have thoroughly checked my work and I am confident that it is free from major
grammatical errors, weakness in sentence contractions, spelling mistakes, referencing
mistakes and others. I have checked with OUM MBA program guideline for Writing
Project Papers and I am confident that this project satisfies its requirements.

Thank you,

Student’s Signature: _____________________

I have read the student’s research proposal and I am satisfied that it is in line with the
OUM MBA program Guidelines for writing project proposal.

Supervisor’s Signature (Dr. Anwar Al-Jawdar): _____________________

  v
  

Declaration

Name: Ali Dahmal Hamed Al-Aamri

Student Number: 51061172

I hereby declare that this project is the result of my own work, except for quotations
and summaries which have been duly acknowledged.

Signature: ___________________

  vi
  

Table of contents

1. Chapter-I Introduction…………………………………………………….…1

1.1 Background of the study....................................................................1

1.2 Research of the study.........................................................................1

1.3 Objective of the Study.......................................................................2

1.4 Limitation of the Study......................................................................2

1.5 Definition of Terms...........................................................................2

2. Chapter-II Literature Review............................................................................4

2.1 Motivation.......................................................................................4

2.2 Increasing Employee Engagement................................................11

2.3 Employee Involvement and Productivity......................................12

2.4 Employee Management Programs................................................17

2.5 Business Operation Impacts..........................................................17

2.6 Financial Performance Impacts.....................................................19

3. Chapter-III Research Methodology ..............................................................20

3.1 Research Design...........................................................................20

3.2 Sampling Procedure......................................................................20

3.3 Instrumentation.............................................................................20

3.4 Scale Validity and Reliability.......................................................20

3.5 Data Collection and Procedure.....................................................21

4. Chapter-IV Data Collection and Analysis......................................................22

4.1 Introduction .................................................................................22

4.2 Data Analysis................................................................................22

5. Chapter-V Conclusion....................................................................................40

5.1 Summary.......................................................................................40

5.2 Conclusion....................................................................................40

  vii
  

6. References and Appendix...............................................................................41

6.1 List of References.........................................................................41

6.2 Appendix......................................................................................43

  viii
  

List of Tables

1. Table No.1-How long have you worked with the present organization….…22

2. Table No.2 - Sate the department you work in…...........................................23

3. Table No.3 - Describe your job responsibility................................................24

4. Table No.4 - Which of the following aptly describes

your satisfaction level with present organization...........................................25

5. Table No.5 - Inform about your supervisor / manager...................................27

6. Table No.6 - Rate your satisfaction with overall management.......................29

7. Table No.7 – State your satisfaction level with your supervisor,

manager or Management for response to suggestions proposed by you…...30

8. Table No.8 - How would rate your job satisfaction........................................31

9. Table No.9 - How satisfied are you with the level of training

and development received...............................................................................33

10. Table No.10 - Job Knowledge among workforce...........................................34

11. Table No.11 - Employee Skills Development................................................35

12. Table No.12 – Employee Development Support............................................36

13. Table No.13 – Right Use of Employee Talent................................................37

14. Table No.14 – Employee Performance Appraisals

and Performance Expectation Understanding.................................................38

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List of figures

1. Figure No. 1 - The Two Sides of Human Resources................................14

2. Figure No. 2 - Employee Management Practices.....................................16

3. Figure No. 3 - Employment Duration.......................................................23

4. Figure No. 4 - Nature of Work.................................................................24

5. Figure No. 5 - Job Description.................................................................25

6. Figure No. 6 - Satisfaction level- Employee Evaluation.........................26

7. Figure No.7 - Supervisor / Manager Perception......................................28

8. Figure No.8 - Satisfaction Level- Overall Management..........................30

9. Figure No.9 - Satisfaction Level on Proposed Suggestion......................31

10. Figure No.10 - Job Satisfaction...............................................................32

11. Figure No.11-Training & Development-Satisfaction Level....................34

12. Figure No.12 -Job Knowledge among workforce ..................................35

13. Figure No.13 - Employee Skills Development........................................36

14. Figure No.14 - Supervisor / Team leader support....................................37

15. Figure No.15 - Use of Talent by Organization.......................................38

16. Figure No.16 – Employee Performance Appraisal &

Performance Expectation Understanding ..............................................39

  x
  

1. Chapter-I Introduction

1.1 Background of the Study

Business all over the world today is very challenging. Internal and external operating

environment factors continue to challenge corporate performance and revenue

growth. To stay profitable in the highly challenging and competitive global market

economy, all the factor of production - men, machine and materials – should be

wisely managed. Among the factors of production the human resource constitutes the

biggest challenge because unlike other inputs employee management calls for skillful

handling of thoughts, feelings and emotions to secure highest productivity. Employee

motivation delivers long-term benefits in the form of high productivity. A motivated

employee is a valuable asset which delivers immense value to the organization in

maintaining and strengthening its business and revenue growth.

1.2 Research Problems

Effective employees management lead to a competitive advantage in the form of

more motivate workforce by extension improved operational and business

performance. The research problem question to be answer in this research is to define

the main factors that motivate employs in different companies and to see if there is

any specific organization function that depends on organizational uniqueness

employee behavior.

  1
  

1.3 Objectives of the Study

The Objective of this research is to identify the factors that promote positive

motivational behavior among employees. This in turn would improve customer

service, effective time management in each organization.

1.4 Limitation of the Study

The limitation of the study can be briefly stated in following points:

1. Title of the questionnaire (about Motivation) so that the respondents thought

that they should be affected by the motivation system before filling the

questionnaires.

2. The length of the questionnaire – around 14 questions.

3. The collective respondents will be analyzed and the results of the

questionnaire will be documented.

1.5 Definition of Terms

Motivation: is the internal condition that activates behaviour and gives it direction;

energizes and directs goal-oriented behaviour. The term is generally used for human

motivation but, theoretically, it can be used to describe the causes for animal

behaviour as well. This article refers to human motivation. According to various

theories, motivation may be rooted in the basic need to minimize physical pain and

maximize pleasure, or it may include specific needs such as eating and resting, or a

desired object, hobby, goal, state of being, ideal, or it may be attributed to less-

apparent reasons such as altruism, morality , or avoiding mortality.

  2
  

Employee satisfaction: is the terminology used to describe whether employees are

happy and contented and fulfilling their desires and needs at work. Many measures

purport that employee satisfaction is a factor in employee motivation, employee goal

achievement, and positive employee morale in the workplace. Employee satisfaction,

while generally a positive in your organization, can also be a downer if mediocre

employees stay because they are satisfied with your work environment.

Employee Performance: the act of performing; of doing something successfully;

using knowledge as distinguished from merely possessing it; A performance

comprises an event in which generally one group of people (the performer or

performers) behave in a particular way for another group of people.

  3
  

2. Chapter-II Literature Review

2.1 Motivation

Motivating is the work managers perform to inspire, encourage and impel people to

take action (Louis Allen 1986). To motivate the employees, the employee must be

reached to reach him there must be a completed understanding of the complexity his

make-up (Louis Allen 1986). Motivation efforts must be directed towards improving

organization operations. To be effective, however they must also be designed to

show benefits to the employee. In fact, motivation can best be accomplished when

workers are able to merge their personal ambitions with those of the organization.

According to Robin and DeCenzo (1995; 271) motivation is defined thus “the

willingness to exert high level of effort to reach organizational goals, conditioned by

the effort’s ability to satisfy some individual need”. Campbell and Pritchard (1976)

in defines motivation as a set of independents and dependant relationships that

explains the direction, amplitude and persistence of an individual’s behavior holding

constant the effects of aptitude, skills, understanding of a task and the constraints

operating in the work environment. Schrader (1972) linked construction worker need

to motivation and it was subsequently concluded by Thomas et al. (1990) that there is

evidence supporting the existence of a linkage between an employee’s motivational

level and their individual performance. Atkinson (1964) defines it as the

contemporary immediate influence on the direction, vigor and persistence of action.

The relationship between the employer and employee must be one of understanding

in order for the employee to identify himself with his work and with the business he

is working for. Lack of motivation in return affects productivity. A number of

  4
  

symptoms may point to low morale: declining productivity, high employee turnover,

increasing number of grievances, higher incidence of absenteeism and tardiness,

increasing number of defective products, higher number of accidents or a higher

level of waste materials and scrap (William Day 1978). A motivated employee is a

loyal employee and to be loyal implies that the employee supports the actions and

objectives of the firm. The appearance of the job as a whole has, in fact a bearing on

the willingness and quality of an employee’s performance (Martin Bruce 1962).

According to McClelland (1961) individuals tend to develop certain motivational

drives on the cultural environment in which they live and these drives affect the way

people view their jobs. McClelland suggests that achievement, affiliation,

competence and power are four types of motivational drives that are found in

individuals that are self-motivated and this may be the case for many construction

workers. Motivation plays a part in enhancing construction labor productivity (

Smithers and Walker, 2000) and forms the basis for identification of the work

environment factors. For example, Laufer and Moore (1983) advocated the use of

financial incentive programs to improve construction labor productivity, reinforcing

Maloney’s (1982) thesis of driving forces that led to productivity improvements.

Autonomy and comradeship (Edwards and Eckblad, 1984) are also, found to be

important aspects that add to the way construction workers are self-motivated about

their work. However, much work in linking motivation and productivity relied on

Hertaberg’s sample involving mainly white-collar professionals (Mullins, 1996).

Furthermore, Hofstede (1980) decried such motivational theories as merely point

made about the ad nauseam emphasis on the managerial perspective in the quest to

improve productivity.

  5
  

John Borcherding and Clarkson Ogelsby (1974) discovered that productive job

creates high job satisfaction while non-productive job(one which fall behind

schedule) produce dissatisfaction at all levels of the management/worker chain. The

relationship is believed to be due to the very nature of construction, thus different

from the one found in an office or factory setting which states that high job

satisfaction leads to greater productivity. In construction, a worker, through his own

efforts produces a highly visible, physical structure in which great satisfaction comes

from completion. Therefore, jobs that are well-planned and run smoothly produce

great satisfaction while jobs with poor management (with scheduling and planning

problems), create dissatisfaction. This illustrates the relationship between job

satisfaction and productivity since; well-managed jobs are generally more

productive.

A close review of all theories of human motivation reveal a common driving

principle that people do what they are rewarded for doing. In general, the theories on

motivation can be classified as: employee needs motivation through goal-setting,

employee reward/incentives and reinforcement.

According to a recent poll conducted by the Gallup Management Group only 30% of

U.S. employees are fully engaged in their jobs. Improving employee engagement can

increase productivity and profitability while also reducing employee absenteeism and

turnover.

According to Ted Marusarz, Hewitt Associates, prior to the 1990’s employee surveys

were focused on employees did not necessarily produce the type of performance that

helped organization to succeed.

  6
  

Marusarz’s comment echoes Frederick Herzberg’s theory of motivation which states

that the factors which motivate people at work are different to and not necessarily the

opposite of, the factors which cause dissatisfaction. Herzberg claimed that positive

hygiene factors such as work conditions and salary simply satisfy basic employee

needs, whereas motivators (e.g. achievement and recognition) encourage employees

to work above and beyond the minimum requirements. In 2006, the HR Daily

Advisor reported that 89% of employers think their people leave for more money,

while only 12% of employees actually do leave for that reason.

‘Compensation alone is not enough to keep the highly skilled’ motivated and

experienced workforce your business needs to excel’ (Greenburg, 2008). In a four

years analysis of more than 100,000 employees worldwide, the Corporate Leadership

Council discovered that while workers join companies for rational motives (better

compensation, benefits and career opportunities), they are and work hard for

emotional ones. Jean Martin (Lawler 2008 p.51).

The Gallup Management Group (reported in Dernovsek, 2008) showed that

improving employee engagement is important engaged employees have:

• 51% lower turnover

• 27% less absenteeism

• 18% more productivity

• 12% higher profitability

Engagement is about motivating employees to go the extra mile in the workplace. It

is about encouraging employees to have a passion for their work, and identifying the

organization as more than a place to earn money. A recent Harvard Business Review

  7
  

article explained that ‘employees are motivated by jobs that challenge them and

enable them to grow and learn, and they are demoralized by those that seem to be

monotonous or lead to a dead end’ (Nohria et al, 2008, p. 81).

According to Tim Rutledge, owner and publisher of Mattanie Press and author of

Getting Engaged: The New Workplace Loyalty, ‘truly engaged employees are:

• Attracted to and inspired by their work ( I want to do this’).

• Committed (‘I am dedicated to the success of what I am doing’).

• Fascinated (‘I love what I am doing’).

The concept of employee engagement was first developed in response to increasing

globalization (Thereas Welboure, University of Michigan). Such global competition

forced businesses to become more flexible in responding to employee needs. More

recently, Paula Ketter (2008) attributed the rising interest in employee engagement to

the dotcom bubble burst in 2000, to dip, and the subsequent rise in unemployment.

Furthermore, according to W.Stanton Smith (2008), a new generation of workers, the

Millennials, is entering the workforce with a desire for long-term employer

relationships on their own terms. This new group is shaking up the workforce and

demanding more from their employer than simply financial compensation for their

work and ability to be ‘on-call’ at all times thanks to communication technologies.

According to Towers Perrin, employees are more interested in ‘talent friendly’

organizations that offer a good work-life balance than those offer high salaries.

  8
  

As the economy changes and employee demands become more specific, employee

engagement provides as opportunity to increase productivity and in turn profitability

while satisfying employee needs.

• Engaged employees perform 20% better than non-engaged employees (Gallup

Management Group).

• Offices with engaged employees are 43% more productive (The Hay Group)

• Employees with the highest percentage of engaged employees, on average,

increase operating margins 3.64% and net profit margins by 2.06% (Towers

Perrin_ISR, June 2007).

• Organizations with the lowest percentage of engaged employees showed

declines of 2% in operating margins and 1.38% in profit margins (Towers

Perrin_ISR, June 2007).

The Best Companies Guide UK 2008 highlights eight possible organizational factors

that can improve employee engagement:

• Leadership: good leadership leads to a happy team.

• My Company: how much people value their company, and are proud to work

there.

• Personal growth: whether employees fell challenged by their job.

• My Manager: the employee-manager relationship.

• Giving something back: community service and volunteering opportunities

• Fair deal: how well employees are treated in terms of pay and benefits

compared to similar organizations.

• Wellbeing: balance between work and home life.

  9
  

Two of the highest rated best companies to work for, Foreign Currency Direct and

Jenrick Recruitment Group focused heavily on the well-being and satisfaction of

their employees while also creating a strong sense of ‘team’ within the workplace.

According to the Best Companies Guide 2008:

• 100% of employees at Foreign Currency Direct agreed that their team is fun to

work with.

• 96% disagreed that they stress related symptoms in the last 12 months because

of their job.

Similarly at Jenrick Recruitment Group:

• 98% of employees agreed that they felt a strong sense of family in their team

and 93% disagreed that their health was suffering because of their work.

Another exceptional example of employee engagement success involves McDonald’s

UK, which recently won the “Outstanding Employee Engagement Strategy” Award

presented by Insala at the HR Excellence Awards 2008. In an effort to eradicate the

negative public perception and reputation of working for McDonald’s, the HR team

implemented a ‘multi-pronged reputation program’ including external press and a

poster and campaign mocking the ‘McJob’ nickname, while also revamping internal

communications in order to reinforce their commitment to staff. A new intranet

allowing staff to see skills gaps and offer access to learning content contributed to

the rise from 60:40 to 75:25 in favor of McDonald’s as an employer reported by

BBC News. Additionally, prior to the campaign only 51% of staff said they would

recommend working for McDonald’s, as evidence of the success of the program,

today 86% would recommend the job.

  10
  

2.2 Increasing Employee Engagement

“What is it that your organization is doing to ensure that people don’t fell like

numbers?” ask Judy Corner, Director of Consulting Services at Insala.

When asked in the strategic HR Review why managers were switching from

employee satisfaction to engagement, Ray Baumruk, Hewitt Associates, responded:

‘employee satisfaction was really a measure of “how people like it here” a opposed

to measuring behaviors that will help organizations become more successful for

engagement practice, I have devised a list of key factors for increasing employee

engagement.

• Remember that employees are seeking to gain more than just money from their

job and career. By working with you they hope to gain both professional and

personal skills.

• Engage employees through direct communication by involving them in

important decisions and keeping them informed of new developments or

changes within the company.

• Get to know your employees as well as their goals and aspirations, so that

together you can develop a clear path for advancement and opportunities for

growth.

• Develop a strong employee-manager relationship. It is often true that when

employees leave an organization, they are in fact leaving their manger.

• Provide efficient and ongoing training for new and experienced employees as

well as offering rewards and recognition for employees who excel and/or

demonstrated a strong passion for their work and organization. According to

  11
  

the Institute of Employment Studies (IES), the main driver of engagement is a

sense of feeling valued and involved.

• Listen to employees and act on their suggestions. Just listening and not

acknowledging, responding or acting on what is being heard can damage

credibility and engagement (Ray Baumruk).

• Remain supportive of the engagement initiative while monitoring the work-life

balance of employees. Highly engaged people run the risk of burnout by

becoming too eager and too passionate about their work.

• Finally, conduct frequent engagement surveys to gain perspective on employee

expectations, desires and goals within the organization.

2.3 Employee Involvement and Productivity

The key starting point in studying the link between workplace relations and

productivity is the indeterminate, or open-ended, nature of the employment

relationship. While compensation and general working conditions are agreed in some

way at the time of employment, the employee’s actual contribution, in terms of

volume and quality of output, remains largely unspecified. Much depends on

employees’ willingness to invest their skills and know-how in the production

process. In turn, such commitment is built on organizational arrangement, well-

accepted working conditions and co-operative relations more generally. In short,

employee involvement is crucial because, to a large extent, effort remains

discretionary.

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Hence, it is important to identify the objective conditions under which co-operation

actually develop. The development of a modus Vivendi between agents is necessary

if the production system is to be efficient enough to produce value added and ensure

the reproduction of the employment relationship in the context of market

competition. There is no doubt that, independently of technological evolution, co-

operation is crucial if acceptable levels of productivity growth are to be generated at

the point of production.

Successful business owners are those who know where to apply their resources for

achieving the greatest positive impact on business performance. Traditionally, this

exercise in strategic allocation of resources has treated employee management

primarily as a cost-containment challenge rather than a potential driver of improved

profit and revenue. Perhaps this has been because measuring the return on investment

in effective employee management practices is more difficult than calculating the

saving from, say, reduced paperwork. Over the past 10 to 15 years, however, a

growing body of evidence has shown that investing in employee management not

only delivers administrative cost savings but is in fact one of the best performance

enhancing investments a company can make.

Research overwhelmingly indicates that effective employee management can and

does lead to a competitive advantage in the form of a more motivated workforce and

by extension improved operational and business performance.

  13
  

Figure No. 1 - The Two Sides of Human Resources

By sharpening your focus on the relationship between employee management and

business performance, you will be better equipped to:

• Identify practice that will maximize the return on your investment in employee

management practice and achieve the positive business results experienced

other companies.

• Strengthen the quality of the one business variable that no competitor can

duplicate – the quality and motivation of your employees.

• Align your people management practices with your business objectives.

• Set up and track key employee-related performance measures.

• Adopt the tools that are available to you for the managing your employees.

  14
  

The purpose of employee management, then, is to solidify and enhance that

advantage through a systematic program to find, motivate, develop and retain your

employees more effectively than your competitors. If your company adopts

employee management practices that are superior to those of your competitors, it is

likely that you will always have a higher quality workforce, leading to a sustained

competitive advantage. This is not to say that good people who are well managed can

overcome poor products or services, but in the presence of quality and services, well

managed people can be the difference between a successful company and one that is

not competitive.

Effective employee management can positively impact your company’s

performance; you must determine which management practices will meet your needs.

Obviously, the specific components of human resource management needed for your

company are unique to you and your business objectives. But research has shown

that it is a set of employee management practices working together, rather than any

single practice alone, that leads to higher performance.

Each of these components of employee management is important, and all of them

working together toward the accomplishment to your goals will lead to the best

performance outcomes. For example, an initiative to attract high quality employees

to your business will be much more effective if it is coupled with quality training,

development, compensation and management once the new hires arrive. Here’s how

the basic elements of a well-designed employee management program work:

  15
  

Figure No. 2 - Employee Management Practices

• Hiring practice ensure that employees hired for different positions have the

necessary skills and background to be successful in their individual jobs.

• Evaluation practices ensure that the employees are being provided with useful

feedback about their performance.

• Compensation practices provide employees with what they consider to be fair

pay for their work.

• Training and development practices provide employees with opportunities to

grow through job training, job rotation and promotions.

  16
  

2.4 Employee Management Programs

Employee management programs are designed to attract, retain, motivate, develop

and compensate employees, so it makes sense that the most direct impact of an

employee management program will be on employee themselves. When the program

is working well, employees will be generally more satisfied with their employment.

The satisfaction leads them to be more willing to act in the best interest of the

company rather than solely their own best interests. The result is a higher level of

discretionary effort-employees being willing to go beyond what you expressly

require of them. Overwhelming research data illustrates the employee impact of

effective management practices.

1. A study of banking industry firms discovered that effective human resource

management was associated with higher employee productivity and lower

employee turnover

2. Among service sector companies, effective employee management lowered

turnover by up to 40%, according to a study.

3. Another study also found that higher levels of effective human resource

practice resulted in as much as a 29% improvement in employee effort.

2.5 Business Operation Impacts

While the impact of employee management practices on the operations of business is

less direct than the impact on employees, it is nevertheless tangible and measurable.

The operational benefits result from better-qualified and more highly motivated

employees being able to perform their jobs more effectively than less-motivated and

  17
  

less-skilled employees. The discretionary effort cited previously also results in higher

productivity and, hence, improved operational performance.

Effective human resource management has been associated with improved

operational productivity, customer service, quality, efficiency, customer satisfaction

and safety.

• A study of automobile assembly plants found that effective human resource

management systems let to higher productivity measured by the number of

hours required to build a vehicle as well as higher quality as measured by

defects per 100 vehicles coming out of those plants.

• A study of service companies found that effective human resource management

created a positive climate in the companies, which in turn led to higher levels

of customer satisfaction.

Given the operational outcomes cited above, it is not difficult to see how companies

with higher productivity, quality and customer service are able to transfer these

positive impacts into improved financial performance. For example, higher numbers

of referrals and repeat business – all of which impact the bottom line performance of

the company. In addition, higher quality and efficiency lead to lower costs, which

have a further positive effect on the bottom line. In this way, companies with

effective human resource management should experience higher performance than

companies with less effective employee management programs, both through

increased revenues as well as reduced costs.

  18
  

2.6 Financial Performance Impacts

Due to the importance of financial results on the success and even survival of

businesses, this aspect of the impact of employee management practices has received

the most attention from researchers. Multiple studies have found a positive

relationship between effective employee practices and outcomes such as Profit, sales,

revenues, sales growth, profit growth, profit margin, and return on assets and cost

reduction

• A previously cited study in the employee outcomes section found that in

addition to lowering turnover rates, service companies with effective employee

management programs also experienced higher sales growth. Specifically,

implementing well designed employee management programs resulted in an

increase in sales of 16.3%.

• Another study cited previously for its effect on turnover also found that

significantly improved employee management practices resulted in an average

increase in sales per employee of about $27,000 an average increase in firm

cash flow per employee of about $3,800 and an average increase in the market

value of the firm per employee of about $18,000.

  19
  

3. Chapter-III Research Methodology

3.1 Research Design

To do this study, a questionnaire contains questions designed in the way that helps to

achieve my study objectives will be used. The study conducted to determine

employee satisfaction towards and their impact on overall productivity of the

organization in terms of sustained business and revenue, results obtained are

intended to be presented for the consideration of the top management to enhance the

employees.

3.2 Sampling Procedure

The study should be conducted with people from different locations. The

questionnaires were e-mailed to 70 workers in Saudi Aramco who working in

various departments with different job responsibilities and organization position.

3.3 Instrumentation

A survey method will be conducted as a research method for making this project.

Survey can be defined as a method of primary data collection in which information is

collected by email and analyzed.

3.4 Scale Validity and Reliability

The scales used to measure the variables in the questionnaire are Numerical scale.

  20
  

3.5 Data Collection Procedures

Survey can be classified as an Internet Surveys. For much research, data collection

using the internet is often an efficient and effective method. Survey using Internet is

easy to get the respondents feedback in short period of time without costing them

anything.

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3. Chapter-IV Data Collection & Analysis

4.1 Introduction

The data for the research has been collected using internet questionnaire. The
questionnaire was distributed randomly to a sample of employees, over 70
employees who were working in various departments, with different job
responsibilities and organization position.

4.2 Data Analysis

After collecting the filled questionnaire, they were analyzed for presentation of
research findings under data analysis

1. How long have you worked with the present organization:

Less than 1 year 4

1-3 years 15
3.-5 years 12
5-10 years 21

Table No.1 - How long have you worked with the present organization

  22
  

Figure No.3 - Employment Duration

The research was directed to find information on the duration of service the
employee has been with the organization. Survey results indicated that highest
number of 21 (40.4%) respondents had been working between 5-10 years and this
followed by 15 respondents (28.8%) who have been with the organization between 1-
3 years. Respondents who have been working for the shortest period of time less than
1 year stood with 5 respondents (7.7%).

2. State the department you work in.

Finance and Accounting 2

Human Resource Management 9
Information Technology 2
Manufacturing 5
Research and Development 11
Sales and Marketing 7
Other (please specify) 17

Table No.2 - State the department you work in

  23
  

Regarding the inquiry on the nature of work performed by the respondents, a highest
number of 11 respondents (30.6%) were engaged in Research and Development.
With 9 respondents (25%) came next for Human Resource Management. Closely
following these respondents in other area have given their approval to proceed
further:

Sales and Marketing = 7 (19.4%)

Manufacturing = 5 (13.9%)
IT and Finance & Accounting = 2 (5.60%)

Figure No.4 - Nature of Work

3. Describe your job responsibility

Operative Employee 33
Supervisor 13
Manager 5
Senior Management 1

Table No.3 - Describe your job responsibility

The research inquired to find the nature of jobs of respondents. The research showed
that highest number 33 respondents (63.50%) were engaged in operative employee

  24
  

related job responsibilities and this closely followed by 13 respondents (25.58%).

These were followed next by:

Manager = 5 (9.6%)
Senior Management = 1 (1.9%)

Figure No.5 - Job Description

4. Which of the following aptly describes your satisfaction level with the present
organization?

Very Satisfied 6
Satisfied 32
Neutral 10
Dissatisfied 4
Very Dissatisfied 1

Table No.4 - Which of the following aptly describes your satisfaction level with the
present organization?

  25
  

The research was directed to find how satisfied the respondents are with their present
organization and results collected indicated the following:

Very Satisfied = 6 (11.5%)

Satisfied = 32 (61.5%)
Neutral = 10 (19.2%)
Dissatisfied = 4 (7.7%)
Very Dissatisfied = 1 (1.9%)

Figure No.6 - Satisfaction level-Employee Evaluation

  26
  

5. Inform about your supervisor / manager

Strongly Somewhat
Perceptions Neutral Disagree
Agree Agree
My supervisor listens to me 20 24 7 2
My supervisor is knowledgeable
17 25 8 3
about my work
My supervisor is fair 12 23 16 2
My supervisor supports personal
11 27 13 1
development
My supervisor has realistic
10 26 13 4
expectations regarding my work

Table No.5 - Inform about your supervisor / manager

An inquiry was made to know what kind of perceptions the employees have about
their supervisor and manager. Results indicated the following:

Listens to employees

Positive Agreement = 44 (83.02%)

Neutral = 7 (13.21%)
Disagreed = 2 (3.77%)

Have knowledge about employee’s work

Positive Agreement = 42 (79.25%)

Neutral = 8 (15.09%)
Disagreed = 2 (3.77%)

Being fair to employees

Positive Agreement = 35 (66.04%)

Neutral = 16 (30.19%)
Disagreed = 2 (3.77%)

  27
  

Support personal development

Positive Agreement = 38 (71.70%)

Neutral = 13 (24.53%)
Disagreed = 1 (1.89%)

Has realistic expectation of employee contribution

Positive Agreement = 36 (67.92%)

Neutral = 13 (24.53%)
Disagreed = 4 (7.55%)

Figure No.7 - Supervisor / Manager Perception

  28
  

6. Rate your satisfaction with your overall management

Very
Perceptions Good Neutral Bad
Good
Your relationship with your boss 16 26 11 1
Your boss/supervisor's management abilities 11 26 15 1
Communication with general management 11 13 24 5
Recognition from management 5 18 22 8
Career development support from your
5 19 22 7
supervisor or management

Table No.6 - Rate your satisfaction with your overall management

An inquiry was made to know whether the employees are fully satisfied with their
current management. Results indicated the following:

Relationship with boss

Very Good = 16 (29.63%)

Good = 26 (48.15%)
Neutral = 11 (20.37%)
Bad =1 (1.85%)

Boss’s / Supervisor’s management abilities

Very Good = 11 (20.37%)

Good = 26 (48.15%)
Neutral = 15 (27.78%)
Bad =1 (1.89%)

Communication with general management

Very Good = 11 (20.37%)

Good = 13 (24.07%)
Neutral = 24 (44.44%)
Bad =5 (9.26%)

Recognition from management

Very Good =5 (9.26%)

Good = 18 (33.33%)
Neutral = 22 (40.74%)
Bad =8 (14.81%)

  29
  

Career development support from supervisor/management

Very Good =5 (9.26%)

Good = 19 (35.19%)
Neutral = 22 (40.74%)
Bad =7 (12.96%)

Figure No.8 - Satisfaction Level- Overall Management

7. State your satisfaction level with your supervisor, manager or management for
response to suggestions proposed by you

Very Satisfied 5
Satisfied 29
Neutral 13
Dissatisfied 4
Very Dissatisfied 1

Table No.7 - State your satisfaction level with your supervisor, manager or
management for response to suggestions proposed by you.

  30
  

Inquiry on the satisfaction levels of employees to suggestions they propose to

supervisor, manager and the management indicated that satisfaction registered with
29 respondents (55.8%) which is higher than employees expressing neutral with 13
respondents (25.0%) and 5 respondents (9.6%) were very satisfied employees and 4
respondents were dissatisfied employees. In this case, the highest respondents were
registered by the satisfactions employees which is very good indication.

Figure No.9 - Satisfaction Level on Proposed Suggestion

8. How would you rate your job satisfaction?

Very Very
Perceptions Satisfactory Unsatisfactory
Satisfactory Unsatisfactory
Recognition for your
30 11 8 3
hard work
Development
25 4 18 6
opportunities available
Your pay level as
compared to similar 25 6 11 11
position in the industry
Your performance
feedback from 24 6 20 3
management

  31
  

Table No.8 - How would you rate your job satisfaction?

With reference to job satisfaction in terms of the level of recognition employees 30

respondents (56.60%) were satisfied as against 8 respondents (15.09%) who were not
presently satisfied with their work

Figure No.10 - Job Satisfaction

  32
  

9. How satisfied are you with the level of training and development received?

Very Very
Perceptions Satisfactory Unsatisfactory
Satisfactory Unsatisfactory
Initial training received
26 6 14 7
when hired
Ongoing training
necessary to perform 19 11 13 9
your job well
Self development support 18 8 18 7
Preparation for career
15 6 15 14
advancement

Table No.9 - How satisfied are you with the level of training and development
received?

Whether the levels of training employees receive supports in the development of job
handling was inquired into and the response indicates the following. In respect of
initial training and development which employees receive 32 respondents (59.26%)
expressed satisfied while 21 respondents (38.89%) expressed dissatisfaction.

As regard the ongoing training, 31 respondents (57.41%) expressed satisfied while

22 respondents (40.74%) expressed dissatisfied

  33
  

Figure No.11 - Training & Development-Satisfaction Level

10. Job Knowledge among work force

Strongly Somewhat
Perceptions Neutral Disagree
Agree Agree
Workforce has job-relevant
knowledge/skills necessary for successful 8 27 15 2
task completion

Table No.10 - Job Knowledge among work force

Information was also sought to find out whether the workforce around the employee
has job-relevant knowledge and skills. Results obtained indicated that 35 employees
stated in positive agreement and this contrasts with 2 employees who disagreed the
workforce is capable of performing given tasks. 15 respondents were neutral being
unable to agree or disagree to the stated inquiry.

  34
  

Figure No.12 - Job Knowledge among work force

11. Employee Skills Development

Strongly Somewhat
Perceptions Neutral Disagree
Agree Agree
Opportunities are given to improve my skills
8 20 18 6
for the job
Supervisors/Team Leaders support employee’s
7 21 18 6
development
Management imitates efforts to improve
6 19 20 7
training on underperformers in my department

Table No.11 - Employee Skills Development

Information on whether the workforce is given opportunity to improve their job skills
results obtained indicated 28 employees (51.85%) were satisfied with agreement and
against this a low number of 6 respondents (11.11%) disagreed to the issue and 18
respondents were unable to confirm their opinion either positively or negatively.

  35
  

Figure No.13 - Employee Skills Development

12. Employee Development Support.

strongly Somewhat
Perceptions Neutral Disagree
Agree Agree
Supervisors/ Team Leaders in my work
5 29 13 6
support employee development

Table No.12 - Employee Development Support

34 respondents (62.96%) positively stated their satisfaction but against this only 6
respondents (11.11%) expressed their disagreement. While 13 respondents (24.07%)
were neutral being unable agree or disagree positively.

  36
  

Figure No.14 - Supervisor / Team leader support

To the inquiry whether the supervisor / team leader offer valuable information on
how increase productivity. Results obtained indicated that 34 respondents (62.96%)
were in strong / somewhat agreement compared to 6 respondents (11.11%) who
disagreed that management, supervisor and team leader offer great desired level of
support. 13 respondents (24.07%) were unable to voice their convictions either
positively or negatively.

13. Right Use of Employee Talent

Strongly Somewhat
Perceptions Neutral Disagree
Agree Agree
Organization uses my talent in the
9 23 17 4
workplace

Table No.13 – Right Use of Employee Talent

To the inquiry whether the organization is making use of employee’s talent an

overwhelming 32 respondents (60.38%) expressed in positive agreement while only
4 respondents (7.55%) expressed their disagreements implying the employee has
various other talents but the management is not allowing him or her to initiate.

  37
  

Figure No.15 - Use of Talent by Organization

14. Employee Performance Appraisals and Performance Expectation Understanding

Strongly Somewhat
Perceptions Neutral Disagree
Agree Agree
In my most recent performance appraisal, I
understood what I had to do to be rated at different
7 26 15 4
performance level (for example fully successful,
Outstanding)

Table No.14 - Employee Performance Appraisals and Performance Expectation

Understanding

Whether the employees are able to understand performance appraisals which the
organization is carrying out every now and then, 33 respondents (61.11%) replied
positively that they are able to fully understand what the appraisals demand or expect
from them. Only 4 respondents (7.41%) denied that employees are able to understand
them and to expect them to offer wholehearted collaborations to other employees.

  38
  

Figure No.16 - Employee Performance Appraisal & Performance

Expectation Understanding

  39
  

5. Chapter-V Conclusion
5.1 Summary

Relationship with boss had registered as Good by 26 respondents (48.15%) as

against only 1 respondents who registered Bad relationship. This indicates
that the boss has very good relationship with employees all the issues which
concerns by the employees directly raised to top management or the boss
solve the situations and keep a good improvement and relationship with
employees.

26 respondents (48.15%) were of the belief that Boss’s / Supervisor’s

management abilities as being Good and this is a very good indication. It
shows that employees totally trusting and respecting decisions of the top
management.

Communication with boss / management also, registered Good with 24

respondents (44.44%) as against only 5 respondents (9.26%) who registered
Bad in communication. This is a good indication with high good
communication between the boss and the employees.

Recognition from management was registered Good with 23 respondents

(42.59%) which is a good sign. Employees would become proud that their
efforts are being recognized. They will get more of interest in their jobs and
keep trying to do more and more efforts.

Career Development support from Supervisor / Management was also, listed

as Good with 24 respondents (44.45%).

5.2 Conclusion

It is clear from the study that the employee’s motivation has direct impact on
productivity and growth. A highly motivated employee invests his / her best
efforts in carrying out each and every element of his / her duties and
responsibilities. Enhanced job performances of the employee will add value
to the organization itself and to the employee’s productivity. The empirical
results of this study show that the motivation of the employee has advantages
to the employee and the organization and the organization will keep the
loyalty of the employee at the high peak. Also, the employee will trust his /
her organization, supervisor and top management. Form these observations of
facts it is very clear that business organizations can survive and grow by
taking care of their employees. In the free market economy under today's

  40
  

globalization only organizations which pursue high-performance focused on

their employees can survive and growth rapidly and safely.

6. References and Appendix

1. List of References

1. “Motivating and Retaining Top Talent through Employee

Engagement”

http://www.insala.com/Articles/employee-development/motivating-
and-retainin-top-talent-through-employee-engagemnet.asp.

2. “Motivation as tool to improve productivity on the construction site.”

http://www.cib2007.com/papers/CIDB2008%20Final%20paper%20No
2024a.pdf.

3. “The Influence of Employee Involvement on Productivity: A Review

of Research- June 2000”.

http://www.hrsdc.gc.ca/en/cs/sp/hrsd/prc/publications/research/2000-
002584/page03.shtml.

4. “The business impact of effective employee management.

http://www.mckpeople.com.au/Sitemedia/w3svc161/Uploads/Docume
nts/2af1e130-34a7-4c38-9415-b7fa45a1a52c.pdf

5. “Value Creation-The Key Performance Indicators.”

http://www.hkiaat.org/images/uploads/articles/Value.pdf.

6. Motivation

  41
  

http://en.wikipedia.org/wiki/Motivation

7. Employee satisfaction

http://humanresources.about.com/od/employeesurvey1/g/employee_sat
isfy.htm

8. Employee Performance

http://dictionary.babylon.com/performance

  42
  

2. Appendix

1. How long have you worked in the present organization:

Less than 1 year

1-3 years

3-5 years

5-10 years

2. State the department you work in

Finance and Accounting

Human Resource Management

Information Technology

Manufacturing

Research and Development

Sales and Marketing

Other (please specify)

3. Describe your job Responsibility

Operative Employee

Supervisor

Manager

Senior Management

  43
  

4. Which of the following aptly describes your satisfaction level with the
present organization?

Very Satisfied

Satisfied

Neural

Dissatisfied

Very Dissatisfied

5. Inform about your supervisor / manager etc.

Strongly Agree Somewhat Agree Neutral Disagree

a. My supervisor listens to me.

b. My supervisor is knowledge

about my work.

c. My supervisor is fair

d. My supervisor supports

personal development

f. My supervisor has realistic

Expectations regarding my work

  44
  

6. Rate your satisfaction with overall management

Very Good Good Neutral Bad

a. Your relationship with your boos.

b. Your boss / supervisor’s

management abilities.

c. Communication with

general management.

d. Recognition from management.

f. Career development support

form your supervisor or management.

7. Sate your satisfaction level with your supervisor, manager or management for
responses to suggestions proposed by you.

Very Satisfied

Satisfied

Neural

Dissatisfied

Very Dissatisfied

  45
  

8. How would you rate your job satisfaction?

Very Very
Satisfactory Satisfactory Unsatisfactory Unsatisfactory

a. Recognition for your

hard work

b. Development

opportunities available

c. Your pay level

as compared to similar

position in the industry

d. Your performance

feedback from management

9.How satisfied are you with the level of training and development received?

Very Very
Satisfactory Satisfactory Unsatisfactory Unsatisfactory

a. Initial training received

when hired

b. Ongoing training

necessary to perform

your job well

c. Self development

support

d. Preparation for career

advancement.

  46
  

10. Qualification of fellow employee.

Strongly Agree Somewhat Agree Neutral Disagree

Workforce has job-relevant

Knowledge/Skills necessary for

successful task completion.

11. Skill improvement, support, performance enhancement training.

Strongly Agree Somewhat Agree Neutral Disagree

a. Opportunities are given

to improve my skills

for the job.

b. Supervisors / Team Leaders

support employee’s

development.

c. Management imitates

efforts to improve training

on underperformance in

my department.

12. Employee development support.

Strongly Agree Somewhat Agree Neutral Disagree

Supervisors / Team Leaders

in my work support employee

development.

  47
  

13. Right use of employee talent.

Strongly Agree Somewhat Agree Neutral Disagree

Organization uses my talent

in the workforce.

14. Employee performance appraisals performance expectation understanding.

Strongly Agree Somewhat Agree Neutral Disagree

In my most recent performance

appraisal, I understood what I

had to do to be rated at different

performance level (for example fully

successful outstanding)

  48