Nahar Motivation
Nahar Motivation
Submitted
Neha
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ACKNOWLEDGEMENT There are many forces who work together in a cohesive and coordinating manner, when we are accomplishing some work. It is my Endeavour to appreciate and thank all those forces who influenced my work directly or indirectly. Its a matter of great pleasure and proud privilege for me Mr. Vikrant Jain (deputy personnel manager) at Nahar Spinning Mills Ludhiana to acknowledge and express my sincere gratitude towards for giving his valuable time and efforts on my project. I also express my sincere thanks to the entire marketing team of Vardhman Delhi Yarn Branch, for giving me an opportunity to do my project in their concern and for the facilities provided to me during my internship. I want to express my sincerest thanks to Miss Sapan (Labor Welfare Officer) for allowing me to make project report on. I also acknowledge my thanks to all the other staff members of Nahar Spinning Mills Ludhiana, who have helped me at every step in completing this report. Above all there is an invisible power of Almighty that unquestionably enlightens the path and help in accomplishing work to its prerogative end. I sincerely thank god for helping me in every Endeavour of my life.
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DECLARATION FORM
I hereby declared that I have prepared this project report- NAHAR SPINNING MILLS LUDHIANA on THE STUDY OF EMPLOEE MOTIVATION is an original piece of work carried out by me under the guidance and supervision of Mr. Vikrant Jain. Information has been collected from genuine & authentic sources. The work has been submitted in partial fulfillment of the requirement of MBA to Punjab Technical University.
Place: Ludhiana
Neha Khurana
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PREFACE
This project report pertains to the making of a project SUMMER TRAINING of M.B.A. curriculum. The Purpose of this project on THE STUDY OF EMPLOYEE MOTIVATION is to make the student have thorough knowledge of the topic given to them. I learned a lot from the hard work I put in to collect information regarding the same, which would be of great use in my near future as a professional. Justification cannot be done to whatever I have learnt within a few pages but I have still tried my best to cover as much as possible about EMPLOYEE MOTIVATION in this report. Being students of Masters in Business Administration, we need to be aware of the organization internal environment. Summer training helps us to understand these concepts related to the organization
MBA 3rd SEM
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Contents
Topic
Textile Industry In India
SWOT Analysis Of Textile Industry In India PEST Analysis Of Textile Industry In India Reforms & Future (Textile Industry)
Page No. 7
9 11 13
16 19 22 27 29 38 47 51 53 55 58
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Introduction to the Company History Introduction Mission/Vision Product Positioning Manufacturing Process Major Competitors Achievements SWOT Analysis Introduction to Project Motivation
NAHAR SPINNING MILLS
Objectives Research Methodology Theories Data analysis Findings and suggestion Conclusion Bibliography Questionnaire
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INTRODUCTION: The textile industry occupies a unique place in our country. One of the earliest to come into existence in India, it accounts for 14% of the total Industrial production, contributes to nearly 30% of the total exports and is the Second Largest employment generator after agriculture in both rural as well as urban areas.
Textile Industry is providing one of the most basic needs of people and holds importance; maintaining sustained growth for improving quality of life. It has a unique position as a selfreliant industry, from the production of raw materials to the delivery of finished products, with substantial value-addition at each stage of processing; it is a major contribution to the country's economy.
Indian textile industry has the Highest loom age including handlooms in the world. It contributes about 61% to the world loom age. It also contributes about 12% to the world production of textile fibers and yarns including jute.
India contributes 25% share in world trade of cotton yarn. India is 3rd largest producer of cotton & 2nd largest producer of cotton yarn & textiles. Indian textile industry contributes 22% of world spindle age & 6% of world rotor capacity. Production wise India is 2nd highest spindle age after china (38.60) million.
Textile Industry occupies a vital place in the Indian economy and contributes substantially to its exports earnings. Textiles exports represent nearly 30% of the country's total exports. It has a high weight age of over 20% in the National production. It provides direct employment to over 35 million persons in the mill, power loom and handloom sectors.
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India is the worlds Second Largest producer of textiles after China. It is the worlds Third Largest producer of cotton-after China and the USA & the Second Largest cotton consumer after China. India is the world's largest exporter of yarn, with 25% share of the global yarn market. It contributes 4% to GDP & 14% value addition in manufacturing sector. The textile industry in India is one of the Oldest Manufacturing sectors in the country and is currently the Largest One.
The Best thing is that over 50% of the employees are women who help to sustain the family income.
The Textile industry occupies an important place in the Economy of the country because of its contribution to the industrial output, employment generation and foreign exchange earnings. The textile industry can be broadly classified into two categories:
The Organized Mill Sector: The organized sector generally consists of proper units. This sector covers large brands having in the vicinity with overseas partners. The organized sector is, by and large, update with modern technology, has economies of scale, is cost-competitive and is in a position to execute orders on time. The organized sector concerns itself with the processing of fabric from the grey stage up to its finished state. The Organized Mill Sector contributes only 15% of the total production in the country (ex. Yarn Processing)
The Unorganized Mill Sector: The unorganized sector largely consists of job workers who carry out jobs given by their principals, under their supervision (ex. Weaving). This sector contributes around 85% of the total production in the country.
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STRENGTHS:
Independent & Self-Reliant Industry. Abundant Raw material to reduce cost & lead time. Fast Growing Sector. High quality & cost effective manpower.
WEAKNESS:
Fragmented industry. Technological obsolescence. Absence in SEZ. Stringent taxes & labor law. Highly dependent on cotton. The Indian textile industry's presence in international trade is already very low.
OPPORTUNITIES:
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Elimination of Quota restriction for greater market development. Market Shifting towards Brands & seeking for Quality. Emerging retail industry & malls provide huge opportunity for Apparel & Handicraft Industry. High growth rate (7-8%). Globalization. Increasing disposable income.
THREATS:
Competition in domestic market. Strict International Laws. Tackle Chinese aggression. Revamp consumer consciousness. Falling trade barriers will unleash a flood of imports of cheaper, better fabric and garments into India, and will also make the export market far more competitive. In the free-trade regime, Indian textiles may not only lose some of their foreign markets, but they would also face tremendous foreign competition in the domestic market.
EXTERNAL ENVIRONNENT
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PEST ANALYSIS
POLITICAL :
The principal government policies affecting consumer prices for textile products are excise taxes charged on products as they leave the factory and import tariffs charged on raw and intermediate products used in manufacturing. Historically, both excise taxes and tariffs have been used to discourage domestic use of manmade fibers, which are based heavily on imported raw materials, and to promote the use of cotton, most of which is produced domestically. Both excise taxes and, to a lesser extent, tariffs on manmade fibers have been reduced during the past decade as part of policy reforms aimed at reducing protection and regulation throughout the industrial sector. Overall, excise tax rates on manmade and blended products have been reduced nearly 40 percent since the mid-1990s, while taxes on cotton goods have been reduced about 25 percent. Tariff reductions on manmade raw materials and goods have been more recent and less significant than the excise tax cuts. Despite the cuts, taxation of manmade goods remains high relative to cotton goods.
Tariff and excise tax policies that have discriminated against manmade fibers have played a key role in shaping relative consumer prices and consumption patterns for cotton and manmade products. Recent tariff and excise tax adjustments have reduced discrimination against manmade fibers, but with continued high differentials in taxes on cotton and manmade goods, there is considerable scope for future tariff and tax reductions to further reduce prices for manmade products.
ECOMONIC:
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India has already emerged as a small but growing market for U.S. cotton in recent years, driven by the price and quality consciousness of export-oriented mills and garment makers. India has been a competitive producer of raw cotton and mostly self-sufficient. It is not clear, however, if domestic producers will be able to meet the quantity and quality demands of a rapidly expanding textile sector that, according to government targets, aims to more than triple its exports by 2010. On January 1, 2005, developed countries removed import quotas on textile products previously sanctioned by the 1974 Multi fiber Arrangement (MFA). This change provides a major opportunity for India to expand production and exports of textiles and apparel to developed country markets. The elimination of MFA (Multi Fiber Arrangements) quotas induced Indian policymakers to relax investment restrictions and to adopt market liberalization measures in the textile sector, although these reforms have been slower than developments in some other key countries ,most notably China. However, the opportunity created by the elimination of MFA quotas, together with Indias rapid economic growth and demonstrated comparative advantage in production of both raw cotton and textiles, increases the likelihood that India will continue to adopt policies aimed at expanding its capacity to produce and export cotton and textiles.
SOCIAL:
One of the most interesting social features of the textile industry is that, it migrates from high cost nations to the low cost nations. The growth of the domestic demand for clothing in India is linked with the success of the retailing sector. India presently has entered the second phase of growth and is witnessing a massive rise in the domestic demand. This is primarily due to the rise in the standard of living caused by the rise in the middle-income groups. In our present economic world of demand and supply, price and quality are the key factors, which determine the success of any business. The key element here though, is the cost of labor. India and China have a comparative advantage in this industry though, their vast labor forces and the relatively low cost labor.
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Since, India and China have the advantage of making textiles and so fabric costs are lower than in other countries, they have become the Apparel sourcing choice for many international companies. Sourcing choices arise from profitability. This includes considering costs, such as, buying factors of production, like land, buildings and machines versus factors affecting revenues, including pricing, marketing, and distribution. The issues of labor, material, shipping costs and tariffs structure also affect the sourcing choices. Since, apparel production is a labor-intensive activity, wage rates are also a major factor in sourcing decisions. This gives immediate competitive advantage to producers in countries like India and China to export to more developed and high cost countries like the United States and the European Union.
TECHNOLOGY:
To facilitate needed structural transformation, the Government established TUFS (Textile Up gradation Fund Scheme (Ministry of Textiles; India) to provide subsidized, low-interest loans to purchase imported shuttle less looms. To encourage additional participation, the Government recently reduced interest rates to 2.5-3.0 percent for investments made by larger cotton-processing units. The heavily protected handloom sector is growing much more slowly (about 3 percent annually) than the power loom and hosiery sectors but still accounts for about 13 percent of cloth output. Handlooms, which are highly labor intensive and viewed as a source of employment and supplementary income for 6-7 million people in over 3 million weaver households, will likely continue to receive preferential policy treatment. The Government provides handloom operations with tax exemptions, low-interest loans, and rebates on fabrics sold through cooperatives, and also reserves exclusive rights for handloom operators to produce 11 items, such as non- terry towels and some varieties of bed sheets. In 2001, the Government established the high-level Technology Mission on Cotton (TMC) to direct, coordinate, and fund initiatives to raise the productivity and quality of Indian cotton and strengthen returns to growers.
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TMC activities focus on four program areas: Research and technology generation. Transfer of technology to farmers. Improvement of marketing infrastructure. Modernization of Gins. REFORMS & FUTURE The Indian textile industry (including garments) is just emerging from the shadows of a debilitating quota system, a system which only skewed production for as long as ten years without any reward in return. Government of India is going full steam on economic reforms. To begin with, government has steadily raised the ceiling for investment in plant and machinery of a unit from Rs 1 crore (i.e. US $0.23 million) to Rs 4 crore (i.e. US$. 0.91 million) for the unit to be considered as a unit in the small-scale sector. In so far as garments are concerned the government, realizing its potential, has removed both the woven and knitted sectors from the limits fixed for the small-scale sector. This has resulted in investments flowing into this sector. Expansion of units by adding to capacity or by mergers is in full swing. Amalgamations are the order of the day in the woven garment sector. Backward and forward integrations in the spinning and knitted garment sectors are in evidence, both with the object of ensuring a steady supply of inputs as well as to add value. Foreign Direct Investment (FDI) has been permitted in the garment sector in the shape of joint ventures. FDI in retail is almost on the cards but, for the present, the franchise route is favored. Economic reforms have increased the spending power of the middle-income group which is growing bigger by the day. Consequently, purchasing power is on a high with malls, department stores, discount stores, all springing up in various parts of the country.
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HISTORY
The parent company Nahar Retail Ltd. Is a wholly owned subsidiary of Nahar Industrial Enterprises which was set up in 1949.The promoters belief of Where commitment leads, achievement follows has led to tremendous growth with the company involved in spinning weaving, processing and garmenting and supplies to some of the biggest brands in the world like Marks and Spencer, GAP, Tommy Hilfiger and Armani. Nahar Industrial Enterprises Limited is an Integrated Textiles Player. The company is engaged in manufacturing right from yarn, Greg (?) fabric to processed fabric to readymade garments in the domestic market. Processed fabric is sold to companies/brands like Madura garments, Raymonds Color Plus, Allen Solly, Louis Philippe, Provogue, and Pantaloon. In the export market, Neils clientele includes names like GAP, Oshkosh, Ann Taylor, M&S, Liz Claiborne, Timberland, Tommy Hilfiger etc. In NIEL, a wholly owned subsidiary Nahar retail Ltd. was set up for its foray into retailing. The brands Cotton County, Femme, Tazo etc are retailed through Executive Brand Outlets under the name and style of Cotton County and as so on there were 500 outlets, located across India in 300 cities and 21 states & 1 Union Territory. The retail network is largely operated through Franchisees.
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COMPANY PROFILE
NAHAR SPINNING MILLS
Spinning a web of pure enchantment seems to be the aim and objective of NAHAR SPINNING, reckoned to be the blue-chip in the NAHAR firmament.
Starting out as a tiny worsted spinning & hosiery unit in Ludhiana, it was incorporated as Private Limited company in December 1980 & became a Public Limited company in 1983. The steady growth in manufacture & export of woolen/cotton hosiery, knitwears & woolen textiles enabled the company to earn the recognition as an Export House followed by a Recognized Trading House by the Government of India in a short span of 8 years. Its turbo-charged performance brought them a host of fresh laurels they include the National Export Trophy and "Gold Trophy" by the Apparel Export Promotion Council and "Gold Trophy" by 'Cotton Textile Export Promotion Council' in recognition of its excellent Export performance. In 1992, as a measure of backward integration, the company diversified into the Spinning Industry. Today it has an installed spindlage of 346096 spindles.
Simultaneously the company also established an ultra modern facility to manufacture 12.5 Million pieces of Hosiery Garments. Today Nahar Spinnings T-shirts are being exported to reputed international brands such as GAP, Arrow, Chaps, Old Navy, Pierre Cardin, Philips Van Heusen, Izod, Quicksilver, Price Costco etc.
As a measure of further value addition Nahar Spinning has put up a plant for the manufacture of fine count mercerized yarn & fabrics catering to both, the domestic hosiery garment market as well as export markets.
To make use of the emerging opportunities on the Global Textile Scenario and also to have a focused business approach, the company went in for the Scheme of Demerger and
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Arrangement to restructure its businesses. The Scheme was approved by the Hobble Punjab & Haryana High Court vide its Order dt. 21st December, 2006. As per the scheme, companys Investment Activities stand demerged and transferred to Nahar Capital and Financial Services Limited. This has drawn a visible line between two segment i.e., One Industrial (Textile) business and Secondly Investment and Financial Activities. Further as per the scheme Textiles Business of Nahar Exports Limited stand demerged and transferred to the company (post demerger of investment business) in accordance with the terms of the scheme. Thus upon implementation of the Scheme the spindlage capacity of the company stand increased to 3.46 Lacs spindles.
The Company's mantra "World is our markets" is truly reflected in its operations. The Company is one of the largest integrated textile player in India. The Management vision coupled with company's inherent strength in terms of cost and quality has enabled the company to become the second largest Cotton Yarn manufacturer in India.
Nahar Spinning Mills is a subsidiary of the Nahar Group and was established in 1983. the company is involved both, in the manufacture and export of cotton and woolen products. The production unit of the company comprises 66,288 spindles which manufacture 13,077 metric ton of synthetic and cotton yarn per annum.
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Nahar Spinning Mills started off with the Ludhiana unit and subsequently acquired another unit at Madhya Pradesh. The Ludhiana unit dealt with hosiery goods and utilized worsted spinning technology using wool whereas blended spinning technique was incorporated in the Madhya Pradesh unit which used cotton instead of wool. The company specializes in various kinds of yarns such PLANS as OF acrylic, woolen, blended, SPINNING and cotton. MILLS:
EXPANSION
NAHAR
Nahar Spinning Mills has spent Rs.15 crore in the year 2003 for the purchase of latest equipments to improve the existing spinning standards of the company in order to stay ahead of the other companies in the textile sector. A sum of ` 13.57 went towards the development of the garment section of the company in that year. The goodwill of Nahar Spinning Mills has spread throughout the world, especially in the textile markets of Singapore, Spain, South Africa, Indonesia, Lebanon, Chile, and Malaysia. The company has decided to increase the quantity of production of yarn and fabrics in both, the Bhiwadi and Lalru manufacturing plants. Nahar Spinning Mills has decided to invest a sum of ` 800 crore for the twin purpose of raising the production capacity of the units and installation of power plants adding 45 megawatt more to the present capacity of 8 megawatt. The number of retail outlets will also be increased to enhance OF the quantity NAHAR of sales of its cotton products. MILLS:
SEGMENTS
SPINNING
Nahar Spinning Mills considered the increasing need of mercerized cotton (cotton processed to bring shine and favor treatment with dye) in the textile market. This made the company establish a Mercerizing as well as dyeing unit at an investment of ` 45 crore. This unit produces nearly 2,040 tons of mercerized cotton per annum and has raised the profit ratio of Nahar Spinning Mills. The segment dealing with garments has been growing in leaps and bounds on account of the excellent garment quality. The earnings secured from the garment segment reached ` 201 crore in 2003 which was comparatively higher than Rs.169 crore in 2002. Again, exports amounted to Rs.115 crore, delineating quite an impressive growth rate of 32 % in comparison to 2002.
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PERFORMANCE
OF
NAHAR
SPINNING
MILLS:
The total income of Nahar Spinning Mills in March, 2007 amounted to ` 937.14 crore against ` 509.33 crore in 2006. The income from other sources in this year has also improved compared to 2006, from ` 29.13 crore to ` 30.04 crore. The expenditures have also increased at the same pace, from ` 211.05 in 2006 on raw materials to ` 405.22 crore in 2007. The net sales figure has increased to balance the rise in expenditures, from ` 473.53 crore in 2006 to in ` 891.87crore 2007. The payment towards employees was calculated as ` 37.67crore in 2006 which increased to ` 64.87 crore in 2007.
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With increasing capacity & demand for its products, oswal woollen mills limited soon became a name to reckon with, both in the domestic & international markets. Research & development also received focused attention & today the company boasts of north indias most sophisticated laboratory, approved by the international wool secretariat (iws)& is even authorized to act as a quality checking center for other manufacturers. For the domestic market the company launched monte carlo, the first truly international range of designer knitwear followed by another prestigious brandcanterbury. Later on an ultra modern lambs wool & angora spinning plant has been set up, of which more than 50% manufacturer is for captive consumption. The balance meets the requirements of other hosiery knitwear exporters in india. This in turn means immense saving in foreign exchange for india. Further a modernization cum balancing program has been introduced to upgrade its capacity for manufacturing garments & fabrics for various government & defense departments. The group has spinning capacity of 0.55 millions cotton spindles 25000 worsted spindles with turnover of $550 million inclusive of export turnover of $175 million. The production fascility have been awarded iso 9001:2000/iso14002 certification & okotex certification. The markets of nahar group are cris crossed all over the globe. The objective is meeting the buyers expectations with consistant quality backed by r& d divisions equipped with latest equipment,cream of highly qualified technocrats and adhering to timely schedules. Today oswal woollen mills ltd. Is a company that owes its strength in the market and solidity to foresight of its chairman Sh jawahar lal oswal,the professional inputs of the board of directors and able team of highly skilled managers oswal woollen mills ltd is the flagship company of over us$ 550 million nahar group of companies.
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YARNS By spinning knitting yarns perfectly in keeping with global trends towards easy care, warmth & lively feels, owm is leading the way in hosiery manufacturing, offering wool tops,blended tops, worsted dyed yarns, acro-wool blended yarns, fancy yarns & wool polyamide combinations for velvety looks. The wide range of variety yarns from oswal woollen mills ltd has helped the knitwear designer fashioners to produce an infinite variety of hosiery for all age groups. Latest developments in lambs wool & machine wash have been introduced for the convenience of busy housewives. For hand-knitting yarns which continue to be popular among tradition loving ladies. Highest quality parameters are the specialities of owm in this sphere, for developing varities of yarn for the third millennium.Fancy yarns are produced from viscose,polyamide, polyster and fine acrylic fibres manufactured from latest hollow spindles,crochet machines,allma/saurer and twisting machines from japan, italy,germany,korea,china etc. Hosiery yarns are made out of worlds australian fine micron wools and (synthetics, acrylic and nylons, polyster, polymides, viscose etc.) From the worlds best suppliers with the latest technology in spinning.
The Management
Chairman`s Perspective
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As we step in to the threshold of the new millennium, its time to look back, to move forward. Take stock of the past, scrutinize our present before charting our agenda for the future. Globalization and liberalization have opened up a brave new world for us, offering new challenges along with new opportunities. At Nahar, keeping pace with the changing environment is our forte since the world is our market and the spirit of excellence, our enduring credo. Propelled by new technologies and inspired by our exalted goal to explore new frontiers, our march towards blazing new trails to span new horizons takes on a new dimension setting the tone for a new millennium. MANAGEMENT STRENGTH
KAMAL OSWAL Vision is the key. Without vision there can be no mission, no agenda to road map the future. Vision provides the vital differential between the ordinary & extra ordinary, defining the cutting edge that powers organizations way above & beyond competition. No progressive group can ignore this vital input. GLOBAL THINKING
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DINESH OSWAL Globalization offers exciting challenges that can be converted into rewarding opportunities only if you are sharply attuned to the ground realities pertaining to business and industry. At the end of the day, words remain words. Explanations remain explanations. Promises remain promises. Only performance speaks. NAHAR GROUP OF COMPANYS PHILOSOPHY At Nahar, each company continues to practice good Corporate Governance. The Group firmly believes that good Corporate Governance is the key to success in business. The Groups corporate philosophy envisages creation and maximization of Shareholders/Stake holder's wealth while observing the highest levels of transparency and accountability. CODE OF CONDUCT FOR BOARD MEMBERS AND SENIOR MANAGEMENT At Nahar, each company is committed to conduct its business in accordance with the applicable laws, rules and regulations and the highest standards of transparency. The herein mentioned code of conduct, applies to all the Directors and Senior Managers of the Company and sets forth specific guidelines for the performance of their professional duties/responsibilities. COMPLIANCE WITH LAWS, RULES AND REGULATIONS All Directors and Senior Management Personnel shall act in the interest of the company and shall comply with all the applicable laws, rules and regulations of the relevant regulatory and other authorities as may be applicable to such Directors and Senior Management Personnel in their individual capacities. CONFLICT OF INTEREST No Director or Senior Management Personnel shall engage in any business or activity or enter into any relationship which might result in conflict of interest with that of the company unless he/she makes full disclosure of all the facts and circumstances to the Audit Committee and obtains written approval of Chairman or Managing Director of the company. SECURITY TRANSACTIONS/CONFIDENTIAL INFORMATION
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All Directors and Senior Management Personnel shall safeguard the confidentiality of all the information that they become privy to in connection with the companys business and shall not derive any benefit or assist others to derive any benefit from such confidential information which is not in the public domain and thus, continues to be insider" information. PROTECTING COMPANY'S ASSETS All Directors and Senior Management/Personnel shall protect the companys assets and ensure their efficient use for the conduct of Companys business. DISCLOSURES All Directors and Senior Management Personnel shall disclose all the financial/commercial transactions in which they might be or deemed to be involved or interested either himself/herself or through their relatives as defined in the Act.
NAHAR SAGA
The year was 1949. While their beginnings were small the vision was big. The burning desire to evolve, grow & one day position itself as a responsible & reputed corporate entity playing out its role in improving the people's quality of life through their products & service, remained a driving force. It is their relentless spirit of enterprise, boundless enthusiasm, grit & determination to live the dream that enabled them to add a new dimension to their philosophy- where commitment leads, achievement follows.
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Today, as we step into the new millennium, those nascent days of 800 spindle start-up become a distant memory as the Nahar Group surges ahead to establish itself as a reputed Industrial conglomerate with a wide ranging portfolio CottonYarns, WoolenYarns, KnittedFabrics, Knitwears,Sweaters, Greige Fabrics, Finished and Processed Fabrics, Hosiery Garments , Steel, Sugar, Infrastructure Development.
The Nahar group's turbo charged journey in to the highways of tomorrow however was severely tested during the early nineties with the advent of liberalization, opening the floodgates of globalization. Of the enduring belief that "when the going gets tough, the tough get going" the group pulled back to re-focus ,restructure & re-align its corporate blue prints to establish a new & appropriate equation with the new market forces.
This really was the essence of their positive VISION 2000 thrust. It encompassed global aspiration & consolidated brand equity for the domestic markets. Regarding the first ,the group's aggressive & market savvy forays have helped zoom the export sensex ,contributing to over one third of the present turnover of the group. Focusing on the second market driven
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brand extension relating to their high profile & top rated MONTE CARLO and Cotton County have met with resounding success.
Simultaneously, in tune with the market demands the group went in for forward integration for the manufacture of Greige Fabrics, setting up of a modern Process House and finally into the making of garments. On the anvil is the new mantra of the day - Information Technology, where, hotlines to excellence are being explored.
However, beyond their professional portfolio lies the human face of group that has always been deeply entrenched in social upliftment ,at every level .Its most concrete reflections are there for all to see Jawahar Lal Oswal Public charitable Trust which runs free dispensaries in remote areas to fulfill the medical needs of the under privileged & Mohan Dai Oswal Memorial Hospital ,promoted by Oswal Family but run as charitable institution catering to a vast cross section of society.
Creating, developing, consolidating The Nahar group blazes ahead constantly inventing itself to stay ahead.
re-
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EXPORT MARKETS
ARGENTINA, BRAZIL, CHINA, COLUMBIA, CHILE, CZECH REPUBLIC, ISRAEL, LEBANON, LITHUANIA, POLAND, PORTUGAL & PERU
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oxygen, solvent extracted rice brane oil and vanaspati. At present it has five divisions as follow:
NIEL (UNIT: OSWAL FATS AND OILS) Village jalaldiwal, near Raikot, distt. Ludhiana
NIEL (UNIT: NAHAR FABRICS) Village Jabalpur, Chandigarh-Ambala road, distt. Lalru
NIEL (UNIT: SAMBHAV SPINNING MILLS) Industrial focal point, Phase 8, Mundian kalan, distt. Ludhiana.
Nahars Brands
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Nahar industrial enterprises Limited are an Integrated Textile Player. The company is engaged in manufacturing right from yarn to griege fabric to processed fabric to readymade garments in the domestic market. Processed fabric is sold to companies/brands like Madura Garments, Raymonds Color Plus, Allen Solly, Louis Philippe, Provogue, Pantaloon. In the export market, NEILs clientele includes names like GAP, Oshkosh, Ann Taylor, M&S, Liz Claiborne, Timberland, Algle, Tommy Hilfiger, etc. Nahar Industrial Enterprises has floated a wholly owned subsidiary Nahar retail Ltd. For its foray into retailing. The parent company is already involved in spinning, weaving, processing and garmenting and supplies to some of the biggest brands in the world lik Marks, Spencer, GAP, Tommy Hilfiger and Armani. ABOUT COLLECTION Inspired by the freshness of nature, Cotton Countys collection is an exotic retreat that makes it all the more exclusive and exquisite. Targeted at the young, trendy and hip-hop crowd as well as the upwardly mobile youth, trendy and hip-hop crowd as well as the upwardly mobile youth, this collection exhibits an exciting combination of colors, designs
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and styles in stripes, prints, plains and denim lending a very sophisticated and funky look to the entire range. Cargo shirts have been introduced for the first time. Targeted at generation next, the collection of cargo shirts are back in full blast, creating a overall impression of style, while contrast stitching marks the collections gutsy edge, by creating lots of play even in the more basic looks. The collection gives a fashion-conscious man the freedom to choose his own adventures while giving him the wardrobe that compliments his dynamic lifestyle. T-shirts are amazing. You name a color and you can get Cotton County t-shirts right plain collar t-shirts that are available in 35 exciting colors and combinations to round neck t-shirts. The shirts collection comes in a range of carefully selected colors, styles and first-class fabrics. Wrinkle free cotton lets you and your shirt look immaculate all day long. After a few minutes on your body, the shirt mixes business with pleasure MARKET POSITION Gaining brand recognition as a result of the expansion mode that the company is in with the foray in Tier II and Tier III cities. Benefit of first mover advantage. A truly mass volume brand. Also known for selling a lot more than many popular brands. Catches the eye of the customer with attractive offers of heavy discounts. Advanced and in-depth planning and research and also considering the latest trends and customer demands in mind. Highly motivated staff.
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MISSION/VISION
MISSION We aim to meet the aspirations of our customers through our offerings of contemporary fashion and international quality at affordable prices. We look at every Indian as our customer and will operate on a Pan-India basis in Metro, Tier I, Tier II, and Tier III cities and towns. We will create a leadership position in this field by growing faster than competition. We will achieve our goals of customer satisfaction through product excellence and our growth objective through employee motivation and prudent policies for investor satisfaction. VISION 1. To be pro-active in assessing customer needs and to deliver quality product. 2. To grow as a leader ahead of the competition through internal performance achievements. 3. To stand by our commitments to our Vendors, Franchisees and Employees.
PRODUCT POSITIONING As the name suggests, Cotton Countys brand positioning leans on casual comfort and style with cotton as the dominant product input. The versatility of cotton is reflected in the fashion statement embedded in the collection. The current collection is aimed at casual and current fashion with a focus on the younger generation. The companys focus on quality is not just a marketing need but is truly a part of the genes of the company and its parent. Nahar Industrial Enterprises is an ISO 9002/ISI 14002 enterprise with Okotex certification. Cotton County products are manufactured in state-ofthe art facilities with complete capabilities in hi-tech knitting, dying, mercerizing, finishing, compacting and embroidery with total quality control.
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QUALITY Unlike many other enterprises and business organizations, Quality is not just an ordinary word with little or no meaning. For Cotton County, Quality has a significant importance of its own which can describe the potential of the company in no time. We believe If the quality is good, there is room for Cotton County to survive in this corporate world. However, if little attention is paid on Quality, then survival for Cotton County in this competitive era will be a lot difficult. Hence, without giving any second thoughts, we have given Quality, our top priority. Today Quality is something that is evident in all the spheres of the Company-even the products it sells, the work culture, and the various departments of the Company. Our parent Company, Nahar Industrial Enterprises Limited has been awarded ISO 9002/ISI 14002 Certification and Okotex Certification. For us, quality is the ability of our products to be able to satisfy our users, and to ensure this, the garment goes through various Quality checks in order to ensure utmost customer satisfaction. MANUFACTURING PROCESS Cutting Tagging Stitching Washing Finishing Labeling
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Cutting
Tagging
Stitching
Finishing
Washing
If Rejected Labeling
Ironing
Packaging
Packing
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CUTTING:This is the 1st and the foremost step in manufacturing garments. This department have direct link with marketing department and the suppliers. From marketing department they are getting orders and from suppliers they are getting raw materials. 300-400 layers are cut once a time with machines in different sizes as so that all sizes can be manufactured. For this cloth is set on the table and area and sizes are allotted to labor. The machine used in this is as follow:-
After cutting the cloths they are having these kinds of pieces and these pieces are separated as per their sizes.
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TAGGING:After cutting the pieces a sticker is pasted on them so that their sizes can be recognized by others and send them to stitching department so that further step can be taken by them. STITCHING:The next step is stitching. Material passed from 2 steps sent to for stitching department and are loaded on machines. First of all parts are stitched and then joined all the pieces to complete the product, and then buttons are stitched.
WASHING: After the cloths are stitched they are sent to washing department. In washing department the cloths are washed with chemicals as well as in water for this they are using machines. These machines can wash 70 to 80 garments at a time, and then put them in dryers. Washing is
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very important department of company because this is helpful to cleaning all the marks on the cloth.
FINISHING:Cloths are send to finishing department when they are dry. Then cloths are checked by staff over there and if there is any finishing required then they took step on that. For Example:some of the dirty marks are left or the threads are coming out they give proper finishing to the garment so that rejection rate become minimum. QUALITY ASSURANCE:A department is set to check out the quality which is made in earlier stages. A team of 6 people is working under this department. Their work is to check out the lot. It is depend on the lot weather that stock will be rejected or accepted. A random sample of 4 pieces is taken from the lot of 40-50 pieces and if up to 4 pieces are defected then the stock is passed and if the pieces are more than 4 then the whole stock is rejected. The rejected stock is sent back to washing department if there is problem regarding to washing and if there is stitching problem then the whole stock is sent to same department and the proper step is taken by them. This department has the main role in checking the washing, stitching and finishing procedure by using sampling method, and then they send this stock for further process. LABELING:NAHAR SPINNING MILLS
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After the stock is passed out from all these steps, the next step is labeling. A label is tagged on the garment as per their price is fixed. Company do not have different department for this. This is adjoined with packing department, and average no. of people working under this category was 12-15 and the no. of people increased and decreased as per the requirement. IRONING:After the quality is checked the stock is sent for ironing and the company has big pressing machines for this like this machine shown below. This machine is used for all type of trousers. Companies do have ironman staff that is helpful in ironing other garments.
PACKAGING AND PACKING:The garment is packed in a package department and then the garment is placed in the boxes as set wise like for shirts 36, 38, 39, 40, 42, 44 and for trousers like 28, 30, 32, 34, 36 up to 44 size. DISPATCHING:In last the boxes are sent to warehouses for further process. QUALITY CONTROL We observe strict quality control. Our yarn conforms to user 5-10% standards. The quality control exercise starts right from the selection of raw material stage. Each and every bale of cotton is tested, based upon its parameters; it is laid down for mixing. Our emphasis is on 100% bale management. We always use good quality raw material for further processing. Contamination control process starts at the mixing stage, first of all hand sorting of cotton & then vision shield at blow room stage to wipe out contaminations. Final
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control is at AutoZone stage where we have Siros cleaners & UPC 200 contamination clearers. A regular system of testing of yarn at the bobbin stage and final testing at the packaged cone stage is followed for daily production in each count and quality. We follow stringent Quality Control Measures, each and every employee and worker at Nahar is dedicated to bring out the optimum quality through his performance. All our production facilities have been awarded ISO 9002 Certification for quality systems.Environment is great concern to us. We have implemented Environment Management System in our units & have been awarded IS/ISO 14001 for the same. MAJOR COMPETITORS
1. Madhura Garments 2. Arvind Mills Arrow Allen Solly Peter England Elements
Vardhman (woolen)
ACHIEVEMENTS Installed capacity of 93408 spindles ISO-9002 certified Golden Training House. NEW EXPANSIONS Mercerizing plant-2040 MT Garments -90 lakh pieces licensed capacity. 1980 Incorporated as a Private Limited Company. 1984 Recognized as an export house by Govt. of India. 1985 Raises funds through maiden Public issue to finance modernization and expansion. 1988 Recognized as a trading house by Govt. of India. 1991-92 Turnover crossed the Rs. 100 crore marks. 1992 Decides to set up a Spinning Unit with 50400 spindles. Raises capital through a rights Issue. 1994
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Decides to raise the spindle by another 25000 spindles. 1995-96 Turnover crosses the Rs. 200 crore marks. 1996 Receives ISO-9002 Certification. 1996-97 Turnover crosses the Rs. 300 Crore marks. 1999 Accorded Golden Training House Status by Govt. of India. 1999-2000 Mercerizing-cum-dying plant and a 100% EOU Spinning Unit with 28224 spindles under implementation. 2003-2004 The cotton textile export promotion council awarded Texprocil Silver Trophy to the company for its outstanding Export performance in Yarns. 2006-2007 The apparel export promotion council awarded AEPC achievement award to the company for achieving highest exports in garment. SWOT ANALYSIS SWAT analysis is a method used to evaluate the Strengths, weaknesses, Opportunities and Threat involved in a project or in a business venture. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieving that objective. The technique is credited to, who led a convention at $ in the 1960s and 1970s using data from companies
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like every organization NSM has also Strengths, weaknesses, Opportunities and Threat which are as following:-
STRENGTHS: Brand image of brands Monte Carlo and Cant bury is very strong the two brands achieved all time high turnover and reached best exhibited product award from IWS international wool secretariat successive year. Strategic positioning of its product as its products range from rupees 40 to rupees 300. Workforces are highly experienced maintained devoted, loyal and satisfied. Financial position of company is strong. Image of Nahar as a leading company in woolen industries. Good record of operations and turnover making profit continuous.
WEAKNESS: It has vulnerable information system which depend on distributors and agents who sometimes provide wrong market information. OPPORTUNITIES: It may go for Kids product in HOSIERY, KNITWEAR etc. sector. Share of India in garments export bias increased and this certainly a green signal for hosiery. As currently looms wool yarns is being in market, the company has right to exploit the opportunities. THREATS:NAHAR SPINNING MILLS
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It deals in seasonal business. It has to depend upon imparted wool and the supply of raw material is affected by the climate in supplier country.
Large financial base, production base and better technology of MNCs are threat of domestic textile sector.
Company is facing threat from the fake competitors like OSWAL WOOLEN MELA.
INTRODUCTION of Project
The project work entitled a STUDY ON EMPLOYEE MOTIVATION with special reference to Nahar Spinning Mills Ludhiana is mainly conducted to identify the factors which will motivate the employees and the organizational functions in Nahar Spinning Mills Ludhiana Managements basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned with organizing human resources in such a way to get maximum output to the enterprise and to develop the talent of people at work to the fullest satisfaction. Motivation implies that one person, in organization context a manager, includes another, say an employee, to engage in action by ensuring that a channel to satisfy those needs and aspirations becomes available to the person. In addition to this, the strong needs in a direction that is satisfying to the latent needs in employees and harness them in a manner that would be functional for the organization. Employee motivation is one of the major issues faced by every organization. It is the major task of every manager to motivate his subordinates or to create the will to work among the subordinates. It should also be remembered that a worker may be immensely capable of doing some work; nothing can be achieved if he is not willing to work. A manager has to make appropriate use of motivation to enthuse the employees to follow them. Hence this studies also focusing on the employee motivation among the employees of Hyderabad Industries Ltd.
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The data needed for the study has been collected from the employees through questionnaires and through direct interviews. Analysis and interpretation has been done by using the statistical tools and datas are presented through tables and charts. RESEARCH PROBLEM The research problem here in this study is associated with the motivation of employees of Nahar Spinning Mills Ludhiana. There are a variety of factors that can influence a persons level of motivation; some of these factors include 1. The level of pay and benefits, 2. 3. The perceived fairness of promotion system within a company, Quality of the working conditions,
4. Leadership and social relationships, 5. Employee recognition 6. Job security 7. career development opportunities etc. Motivated employees are a great asset to any organisation. It is because the motivation and Job satisfaction is clearly linked. Hence this study is focusing on the employee motivation in the organisation. The research problem is formulated as follows: What are the factors which help to motivate the employees? 1.3 SIGNIFICANCE OF THE STUDY The study is intended to evaluate motivation of employees in the organization. A good motivational program procedure is essential to achieve goal of the organization. If efficient motivational programmes of employees are made not only in this particular organization but
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also any other organization; the organizations can achieve the efficiency also to develop a good organizational culture.
Motivation has variety of effects. These effects may be seen in the context of an individuals physical and mental health, productivity, absenteeism and turnover. Employee delight has to be managed in more than one way. This helps in retaining and nurturing the true believers who can deliver value to the organization. Proliferating and nurturing the number of true believers 1is the challenge for future and present HR managers.
This means innovation and creativity. It also means a change in the gear for HR polices and practices. The faster the organizations nurture their employees, the more successful they will be. The challenge before HR managers today is to delight their employees and nurture their creativity to keep them a bloom.
This study helps the researcher to realize the importance of effective employee motivation. This research study examines types and levels of employee motivational programmes and also discusses management ideas that can be utilized to innovate employee motivation. It helps to provide insights to support future research regarding strategic guidance for organizations that are both providing and using reward/recognition programs.
Primary objective 1. To study the important factors which are needed to motivate the employees.
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Secondary Objective. 1. To study the effect of monetary and non-monetary benefits provided by the organization on the employees performance. 2. To study the effect of job promotions on employees. 3. To learn the employees satisfaction on the interpersonal relationship exists in the organization. 4. To provide the practical suggestion for the improvement of organizations performance. RESEARCH HYPOTHESIS A hypothesis is a preliminary or tentative explanation or postulate by the researcher of what the researcher considers the outcome of an investigation will be. It is an informed/educated guess. It indicates the expectations of the researcher regarding certain variables. It is the most specific way in which an answer to a problem can be stated. Research hypotheses are the specific testable predictions made about the independent and dependent variables in the study. Hypotheses are couched in terms of the particular independent and dependent variables that are going to be used in the study. The research hypothesis of this study is as follows.
Ho: There is no significant relationship between incentives and employees performance. Ho: There is no significant relationship between career development opportunities and the extent of employee motivation Ho: There is no significant relationship between performance appraisal system and the extent of motivation.
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Ho: There is no significant relationship between interpersonal relationship in the organization and extent of motivation. RESEARCH METHODOLOGY. Research is a systematic method of finding solutions to problems. It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford woody, research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions, testing conclusions to determine whether they fit the formulated hypothesis2
SAMPLING DESIGN. A sample design is a finite plan for obtaining a sample from a given population. Simple random sampling is used for this study.
UNIVERSE. The universe chooses for the research study is the employees of Hyderabad Industries Ltd.
SAMPLE SIZE. Number of the sampling units selected from the population is called the size of the sample. Sample of 50 respondents were obtained from the population.
SAMPLING PROCEDURE.
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The procedure adopted in the present study is probability sampling, which is also known as chance sampling. Under this sampling design, every item of the frame has an equal chance of inclusion in the sample.
METHODS OF DATA COLLECTION. The datas were collected through Primary and secondary sources.
PRIMARY SOURCES. Primary data are in the form of raw material to which statistical methods are applied for the purpose of analysis and interpretations. The primary sources are discussion with employees, datas collected through questionnaire.
SECONDARY SOURCES. Secondary datas are in the form of finished products as they have already been treated statistically in some form or other. The secondary data mainly consists of data and information collected from records, company websites and also discussion with the management of the organization. Secondary data was also collected from journals, magazines and books.
NATURE OF RESEARCH. Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied. Descriptive research answers the questions who, what, where, when and how.
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Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity.
QUESTIONNAIRE.
A well defined questionnaire that is used effectively can gather information on both overall performance of the test system as well as information on specific components of the system. A defeated questionnaire was carefully prepared and specially numbered. The questions were arranged in proper order, in accordance with the relevance.
NATURE OF QUESTIONS ASKED. The questionnaire consists of open ended, dichotomous, rating and ranking questions.
PRE-TESTING A pre-testing of questionnaire was conducted with 10 questionnaires, which were distributed and all of them were collected back as completed questionnaire. On the basis of doubts raised by the respondents the questionnaire was redialed to its present form.
SAMPLE A finite subset of population, selected from it with the objective of investigating its properties called a sample. A sample is a representative part of the population. A sample of 50 respondents in total has been randomly selected. The response to various elements under each questions were totaled for the purpose of various statistical testing.
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VARIABLES OF THE STUDY. The direct variable of the study is the employee motivation Indirect variables are the incentives, interpersonal relations, career development opportunities and performance appraisal system.
PRESENTATION OF DATA. The data are presented through charts and tables.
TOOLS AND TECHNIQUES FOR ANALYSIS. Correlation is used to test the hypothesis and draw inferences.
LITERATURE REVIEW
Rensis Likerthas called motivation as the core of management. Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force .It is the major task of every manager to motivate his subordinate or to create the will to work among the subordinates .It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work .creation of a will to work is motivation in simple but true sense of term.
Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization .Issuance of well conceived instructions and orders does not mean that they will be followed .A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively.
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In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction .If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization .There will be better utilization of resources and workers abilities and capacities.
INTRODUCTION
Motivation can be defined in a number of ways. Generally, it is defined as a driving force that initiates and directs behavior. In other words, motivation is a kind of internal energy which drives a person to do something in order to achieve something. It is a temporal or dynamic state within a person which is not concerned with his/her personality.
ROBBINS- MOTIVATION IN AN ORGNIZATION SENSE AS TO REACH ORGNIZATION GOALS, CONDITIONED BY THE EFFORTS , ABILITY TO SATISFY SOME INDIVIDUAL NEEDS.
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THE CONCEPT OF MOTIVATION The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it .Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires.
There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior.
MOTIVATION DEFINED AS: o The word Motivation derived from motive means an idea, need or emotion that prompts a person into action . o Behaviour of a person is the response to a stimulus is dependent upon the motive. Motive depends on the need and desire. o Different motives operate in different times among different people and influence their behaviour.
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THERE ARE DIFFERENT TYPES OF MOTIVATION : ACHIEVEMENT MOTIVATION AFFILIATION MOTIVATION COMPETENCE MOTIVATION POWER MOTIVATION ATTITUDE MOTIVATION Motivation is based on three specific aspects such as the arousal of behavior, the direction of behavior, and persistence of behavior. Arousal of behavior involves what activates human behavior and direction of behavior is concerned with what directs behavior towards a specific goal. Persistence of behavior is concerned with how the behavior is sustained.
Various studies have been conducted to understand the different motives that drive a person to success. Motives are categorized into three: homeostatic motives, nonhomeostatic motives, and learned or social motives. Almost all the motives belong to one or more of these three groups. Motives such as thirst, hunger, respiration, and excretion are included in homeostatic motives. Nonhomeostatic motives include required activities such as seeking shelter and curiosity about the environment. Curiosity, a desire for novelty, power, achievement, social affiliation, and approval are considered as learned motives or social motives. Motivation is essential to be successful in any endeavor you undertake. It can be positive or negative, subtle or obvious, tangible or intangible. It is very important in workplaces as it plays a key role in the effective performance of employees. In industry, managers play a significant role in employee motivation. They use different motivation techniques to improve productivity, thereby promoting cooperation between employees and employers.
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Learning is somewhat interrelated to motivation. In education, instructors also use motivation techniques in order to motivate the students to learn. It is essential to increase student motivation as it can make a student more competent. Also, motivation encourages self confidence and problem-solving skills.
FEATURES OF A GOOD MOTIVATION SYSTEM Motivation is a state of mind. High motivation leads to high morale and greater production. A motivated employee gives his best to the organization. He stays loyal and committed to the organization. A SOUND MOTIVATION SYSTEM IN AN ORGANIZATION SHOULD HAVE THE FOLLOWING FEATURES: Superior performance should be reasonably rewarded and should be duely acknowledged. If the performance is not consistently up to the mark, then the system must make provisions for penalties. The employees must be dealt in a fair and just manner. The grievances and obstacles faced by them must be dealt instantly and fairly. Carrot and stick approach should be implemented to motivate both efficient and inefficient employees. The employees should treat negative consequences (such as fear of punishment) as stick, an outside push and move away from it. They should take positive consequences (such as reward) as carrot, an inner pull and move towards it. Performance appraisal system should be very effective. Ensure flexibility in working arrangements. A sound motivation system must be correlated to organizational goals. Thus, the individual/employee goals
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must be harmonized with the organizational goals. The motivational system must be modified to the situation and to the organization. A sound motivation system requires modifying the nature of individuals jobs. The jobs should be redesigned or restructured according to the requirement of situation. Any of the alternatives to job specialization - job rotation, job enlargement, job enrichment, etc. could be used. The management approach should be participative. All the subordinates and employees should be involved in decision- making process. The motivation system should involve monetary as well as non- monetary rewards. The monetary rewards should be correlated to performance. Performance should be based on the employees action towards the goals, and not on the fame of employees. Motivate yourself to motivate your employees should be the managerial approach. The managers must understand and identify the motivators for each employee. Sound motivation system should encourage supportive supervision whereby the supervisors share their views and experiences with their subordinates, listen to the subordinates views, and assist the subordinates in performing the designated job. IMPORTANCE: Productive use of resources Increased efficiency and output Achievement of goals Development of cordial relationships Stability in workforce.
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Motivation plays an enormous part in any organization or organization. The degree of motivation can immediately impact not merely the good quality of life but can strengthen or weaken the bottom line. Just about every manager and or leader really should know and operate to produce certain they keep their employees motivated irrespective of what place those employee's are in their careers. Managers can keep their workers motivated by identifying individual aspects that influence behavior, understanding and applying motivation theories and enacting effective behavior modification that encourages a larger amount of motivation for your person employee. Amotivated workforce can make any business or organization a competitive force. Workers who are motivated often develop at a greater level, develop a much better item or service and may be fertile ground for innovative strategies. The target for managers of all levels is to recognize individual behaviors and assess where improvements are required. Just after understanding what locations require improvement the application of motivational element might be applied using motivation theory.
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The moment the employee is becoming motivated at a higher level the manager's activity is usually to take that motivation and use the acceptable behavior modification strategy to help workers remain motivated and positively influence the atmosphere and character from the organization. Motivation can do more than just make a business run additional successfully or productively. DEFINITION OF MOTIVATION. According to Edwin B Flippo, Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward. DEFINITION: 1. Motivation is the complex forces starting and keeping a person at work in the organization. 2. Motivation is the various drives within or environmental forces surrounding individual that stimulate or attract them in a specific manner. 3. Motivation is the art of understanding motives satisfying them to direct and sustain behavior towards the accomplishment of organization goals. 4. Motivation is the process of operating organizational conditions which will impel employees of any emotion or desire operation ones will and prompting or driving at it to action. Motivation consists of the three interaction and interdependent elements of needs, drives and goals. NEEDS: These are the deficient, and create whenever there is a physiological or psychological imbalance. DRIVE OR MOTIVES: These are set to alleviate needs. These are action oriented and provide an energizing thrust toward goal accomplishment. They are the very heart of the motivation process. GOAL:
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Goals are anything which will alleviate a need and reduce a drive.
NATURE OF MOTIVATION: Following are some of the characteristics of motivation derive from the definitions given by various authors. 1. BASED ON MOTIVES: Motivation is base on individuals motive which are internal to individual. These motives are in the form of feeling that the individual lacks something. 2. GOAL DIRECTED BEHAVIOR: Motivation Leads to goal directed behavior. A goal directed behavior is one which satisfied the causes for which behavior takes place. Motivation has profound influence on human behavior. 3. RELATED TO SATISFACTION: Motivation is related to satisfaction. Satisfaction is refers to the contentment experiences of an individual which we derives out of needs fulfillment. 4. COMPLEX PROCESS: Motivation is a complex process; complexity emerges because of the nature if needs a types of behavior that need attempted to satisfied those needs. SIGNIFICANCE OF MOTIVATION Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated.
1. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise.
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2. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity.
3. The rates of labors turnover and absenteeism among the workers will be low. 4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease. 5. The number of complaints and grievances will come down. Accident will also be low. 6. There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business. MOTIVATION PROCESS. 1. Identification of need 2. Tension 3. Course of action 4. Result Positive/Negative 5. Feed back
THEORIES OF MOTIVATION. Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne study results (Terpstra, 1979). Six major approaches that have led to our understanding of motivation are Mcclellands Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need hierarchy or Deficient theory of motivation. J.S. Adams Equity Theory, Vrooms Expectation Theory, Two factor Theory.
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MCCLELLANDS ACHIEVEMENT NEED THEORY. According to McClellands there are three types of needs; NEED FOR ACHIEVEMENT (N ACH); This need is the strongest and lasting motivating factor. Particularly in case of persons who satisfy the other needs. They are constantly pre occupied with a desire for improvement and lack for situation in which successful outcomes are directly correlated with their efforts. They set more difficult but achievable goals for themselves because success with easily achievable goals hardly provides a sense of achievement. NEED FOR POWER (N POW) It is the desire to control the behavior of the other people and to manipulate the surroundings. Power motivations positive applications results in domestic leadership style, while it negative application tends autocratic style. NEED FOR AFFILIATION (N AFF) It is the related to social needs and creates friendship. This results in formation of informal groups or social circle BEHAVIORAL MODIFICATION THEORY; According to this theory people behavior is the outcome of favorable and unfavorable past circumstances. This theory is based on learning theory. Skinner conducted his researches among rats and school children. He found that stimulus for desirable behavior could be strengthened by rewarding it at the earliest. In the industrial situation, this relevance of this theory may be found in the installation of financial and non financial incentives.
More immediate is the reward and stimulation or it motivates it. Withdrawal of reward incase of low standard work may also produce the desired result. However, researches show that it is generally more effective to reward desired behavior than to punish undesired behavior.
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The intellectual basis for most of motivation thinking has been provided by behavioral scientists, A.H Maslow and Frederick Heizberg, whose published works are the Bible of Motivation. Although Maslow himself did not apply his theory to industrial situation, it has wide impact for beyond academic circles. Douglous Mac Gregor has used Maslows theory to interpret specific problems in personnel administration and industrial relations.
The crux of Maslows theory is that human needs are arranged in hierarchy composed of five categories. The lowest level needs are physiological and the highest levels are the self actualization needs. Maslow starts with the formation that man is a wanting animal with a hierarchy of needs of which some are lower ins scale and some are in a higher scale or system of values. As the lower needs are satisfied, higher needs emerge. Higher needs cannot be satisfied unless lower needs are fulfilled. A satisfied need is not a motivator. This resembles the standard economic theory of diminishing returns. The hierarchy of needs at work in the individual is today a routine tool of personnel trade and when these needs are active, they act as powerful conditioners of behavior- as Motivators. Hierarchy of needs; the main needs of men are five. They are physiological needs, safety needs, social needs, ego needs and self actualization needs, as shown in order of their importance.
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The above five basic needs are regarded as striving needs which make a person do things. The first model indicates the ranking of different needs. The second is more helpful in indicating how the satisfaction of the higher needs is based on the satisfaction of lower needs. It also shows how the number of person who has experienced the fulfillment of the higher needs gradually tapers off.
PHYSIOLOGICAL OR BODY NEEDS: - The individual move up the ladder responding first to the physiological needs for nourishment, clothing and shelter. These physical needs must be equated with pay rate, pay practices and to an extent with physical condition of the job.
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SAFETY: - The next in order of needs is safety needs, the need to be free from danger, either from other people or from environment. The individual want to assured, once his bodily needs are satisfied, that they are secure and will continue to be satisfied for foreseeable feature. The safety needs may take the form of job security, security against disease, misfortune, old age etc as also against industrial injury. Such needs are generally met by safety laws, measure of social security, protective labor laws and collective agreements.
SOCIAL NEEDS: - Going up the scale of needs the individual feels the desire to work in a cohesive group and develop a sense of belonging and identification with a group. He feels the need to love and be loved and the need to belong and be identified with a group. In a large organization it is not easy to build up social relations. However close relationship can be built up with at least some fellow workers. Every employee wants too feel that he is wanted or accepted and that he is not an alien facing a hostile group.
EGO OR ESTEEM NEEDS: - These needs are reflected in our desire for status and recognition, respect and prestige in the work group or work place such as is conferred by the recognition of ones merit by promotion, by participation in management and by fulfillment of workers urge for self expression. Some of the needs relate to ones esteem
e.g.; need for achievement, self confidence, knowledge, competence etc. On the job, this means praise for a job but more important it means a feeling by employee that at all times he has the respect of his supervisor as a person and as a contributor to the organizational goals.
SELF REALIZATION OR ACTUALIZATION NEEDS: - This upper level need is one which when satisfied provide insights to support future research regarding strategic guidance for organization that are both providing and using reward/recognition programs makes the employee give up the dependence on others or on the environment. He becomes growth
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oriented, self oriented, directed, detached and creative. This need reflects a state defined in terms of the extent to which an individual attains his personnel goal. This is the need which totally lies within oneself and there is no demand from any external situation or person.
J.S ADAMS EQUITY THEORY Employee compares her/his job inputs outcome ratio with that of reference. If the employee perceives inequity, she/he will act to correct the inequity: lower productivity, reduced quality, increased absenteeism, voluntary resignation. VROOMS EXPECTATION THEORY Vrooms theory is based on the belief that employee effort will lead to performance and performance will lead to rewards (Vroom, 1964). Reward may be either positive or negative. The more positive the reward the more likely the employee will be highly motivated. Conversely, the more negative the reward the less likely the employee will be motivated.
TWO FACTOR THEORY Douglas McGregor introduced the theory with the help of two views; X assumptions are conservative in style Assumptions are modern in style. X THEORY Individuals inherently dislike work. People must be coerced or controlled to do work to achieve the objectives. People prefer to be directed
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People will exercise self direction and control towards achieving objectives they are committed to People learn to accept and seek responsibility.
TYPES OF MOTIVATION. Intrinsic motivation occurs when people are internally motivated to do something because it either brings them pleasure, they think it is important, or they feel that what they are learning is morally significant. Extrinsic motivation comes into play when a student is compelled to do something or act a certain way because of factors external to him or her (like money or good grades)
2.7 INCENTIVES An incentive is something which stimulates a person towards some goal. It activates human needs and creates the desire to work. Thus, an incentive is a means of motivation. In organizations, increase in incentive leads to better performance and vice versa.
2.7.1 NEED FOR INCENTIVES Man is a wanting animal. He continues to want something or other. He is never fully satisfied. If one need is satisfied, the other need need arises. In order to motivate the employees, the management should try to satisfy their needs. For this purpose, both financial and non financial incentives may be used by the management to motivate the workers. Financial incentives or motivators are those which are associated with money. They include wages and salaries, fringe benefits, bonus, retirement benefits etc. Non financial motivators are those which are not associated with monetary rewards. They include intangible incentives like ego-satisfaction, self-actualization and responsibility.
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INCENTIVES
Financial Incentives
Non-financial incentives
Wages and Salaries. Bonus Medical reimbursement Insurance Housing facility Retirement benefits.
- Competition - Group recognition - Job security - Praise Knowledge of result Suggestion system. - Workers participation.
- Opportunities for growth MOTIVATION IS THE KEY TO PERFORMANCE IMPROVEMENT There is an old saying you can take a horse to the water but you cannot force it to drink; it will drink only if it's thirsty - so with people. They will do what they want to do or otherwise motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be motivated or driven to it, either by themselves or through external stimulus. Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt. This is essential for any business to survive and succeed.
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Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation. There are broadly seven strategies for motivation.
Positive reinforcement / high expectations Effective discipline and punishment Treating people fairly Satisfying employees needs Setting work related goals Restructuring jobs Base rewards on job performance
Essentially, there is a gap between an individuals actual state and some desired state and the manager tries to reduce this gap. Motivation is, in effect, a means to reduce and manipulate this gap. TYPES OF MOTIVATION: There are 2 types of motivation. They are 1. Positive motivation. 2. Negative motivation. Positive motivation is a process of attempting to influence others to do your will through the possibility of gain or reward. Incentive motivation is the pull mechanism.
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Negative motivation or fear motivation is based force or fear. Fear causes person to act in a certain way because they are afraid of the consequences if they dont Fear motivation is the push mechanism. The objective of motivation is to create condition in which people are willingly to work with zeal, initiative, interest and enthusiasm, with a high personal and group. Moral satisfaction with a sense of responsibility, loyalty and discipline and with pride and confidence in a most cohesive manner so that the goal of an organization are achieved effectively. EMPLOYEE MOTIVATION IN THE WORK PLACE: The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motive employees. To understand motivation one must understand human nature itself. Human nature can be very simple, yet very complex too. An understanding and appreciation of this is a prerequisite of effective employee motivation in the workplace and therefore effective management and leadership. Motivation is the key to performance improvement: Performance is considered to be a functional improvement: Job performance =f (ability) (motivation) Ability in turn depends on education, experience and training and its improvement is a slow and long process. On the other hand it can be improved quickly. As a guideline, there are broadly 7 strategies for motivation. Positive reinforcement Effective discipline and punishment Treating people fairly Satisfying employee needs Setting work related goals Restructuring job
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BASIC PRINCIPLES TO REMEMBER BY MANAGER FOR MOTIVATING EMPLOYEES: 1. Motivating employees starts with motivating yourself 2. Always work to align goals of the organization with goals of employees 3. Key to support the motivation of your employees understands what motivates each of them. 4. Recognize that supporting employees motivation is a process, not a task. 5. Support employees policies by using motivation by organization systems. Worker motivation must also be viewed from 2 perspectives: 1. Inner drive 2. Outer (external) motivators. A persons inner drives push and propel him/her towards an employer, a particular job, career, line of study, or other activity. The outer (external) motivators are the mirror image the employer or outside world offers in response to the inner drives. In order to attract the cream of the crop of available workers, same as in his/her dealings with customers, the employer not only tries to satisfy these basic needs individual workers have. MOST WORKERS NEED TO: 1. Earn wages that will enable them to pay for basic necessities and additional luxuries such as the purchase of a home, or travel 2. Save for and enjoy old age security benefits 3. Have medical and other insurance coverage 4. Acquire friends at work 5. Win recognition 6. Be acknowledge and rewarded for special efforts and contributions 7. Be able to advance in life and career-wise 8. Have opportunities for self-development 9. Improve their skills, knowledge, and know-how 10. Realize their ideal(s)
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THE EMPLOYER RESPONDS TO THOSE NEEDS BY OFFERING AND PROVIDING: 1. Employment 2. Adequate pay 3. Assistance to workers for their special needs (such as child care arrangements, transportation, flexible work schedule). 4. Job security 5. Clear company policies 6. Clear and organized work procedures 7. A safe work environment 8. Medical coverage and other benefits 9. An atmosphere of team work and cooperation 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. Social activities Reward and recognition programs Open lines of communication programs Systematic feedback Motivation programs Opportunities for promotion Company/business information Information on customer feedback Sharing of company goals and objectives Information on the market situation and industry Future expectations
It is important that the employer discover other extraordinary needs applicants have before hiring them and know beforehand whether she/he can satisfy those needs or not. An employee may have: Family responsibilities and be unable to work shifts, over time, or weekends. Heavy financial responsibilities which he/she can meet only by working at 2 jobs, leading to exhaustion, sick leave, a deficient work performance A desperate financial need for additional overtime and weekend remuneration
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IN ADDITION TO NEEDS AND DRIVES, WORKERS HAVE EXPECTATIONS FROM THEIR EMPLOYER-THEY EXPECT: A knowledgeable, experienced, expert employer Clear and fair policies, procedures, and employment practices Business integrity Clear job description Two-way communication Effective management and supervision Positive discipline Good company repute Good customer relations Company survival Opportunity for personal growth Company growth A share in the companys success.
Most of these needs, expectations and aspirations are unexpressed-it is up to the employer to develop a good system of company communications, employee relations, Motivation that will lead to an environment of openness, cooperation, team work, and motivation that will benefit all the parties involved. MOTIVATIONAL METHODS: 1. BUILDING CONFIDENCE: Facing a challenge, meeting it and mastering it help build confidence. 2. TEAM BUILDING: Team unite and work together when they identify a common purpose whether the aim is the tallest tower made out of newspaper, or a game of rounders on the park. Competition in teams or groups creates teams and ignites team effort
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3. COACHING AND TRAINING: Games and activities provide a perfect vehicle for explaining the Motivation process (train the trainer for example) to managers, team leaders and trainers. 4. PERSONAL MOTIVATION STYLE AND LEARNING: Everyone is different. Taking part in new games and activities outside of the work situation illustrates peoples different strengths and working style preferences. Mutual respect develops when people see skills and attributes in others that they didnt know existed.
5. CONTINUAL DEVELOPMENT: Introducing people, staff or employees to new experiences opens their minds to new avenues of personal development, and emphasizes the opportunity for continuous learning that is available to us all. 6. IMPROVING EMPATHY AND COMMUNICATIONS FOR MOTIVATION To communicate we must understanding the other person. Empathy and intuitive skills are right-side brain of the brain, which we use when we communicate and understand others. Team activities and games promote communications and better mutual understanding-essential for good organizational performance.
HIERARCHY OF NEEDS Abraham Maslow, who was a humanistic psychologist, argued that needs are arranged in a ladder-like steps. He proposed a rising order of needs from the level of physiological to self transcendence. The order of needs starts from basic survival or lower order needs to higher order needs. As one level of need is satisfied another higher order need will emerge and assume importance in life. The hierarchy is shown in Fig. 9.1.
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Physiological needs: The most potent and lowest level of all the needs are physiological needs. Thus the needs of hunger, thirst, sex, temperature regulation and rest occupy the lowest step in the ladder. According to Maslow, when these physiological needs are deprived for a long period, all other needs fail to appear We must eat to live. The biochemical processes which sustain life get their energy and chemical substances from food. Food deprivation results in contractions in the stomach which are felt by the individual as hunger pangs. When this happens, the individual spends energy in trying to get food. Factors like habits and social customs also influence eating behaviour. We can go without food for weeks but we cannot live without water for more than a few days. The brain directs the organism to obtain water. Sex need differs in many respects from hunger and thirst. Sex is not vital to the survival of the organism essential to the survival of the species.
SAFETY NEEDS : When the physiological needs are satisfied safety needs become the dominant force in life. Safety needs are mainly concerned with maintaining order and security, to feel secure, safe and out of danger.
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LOVE AND BELONGINGNESS NEEDS: These are the needs of making intimate relationship with other members of the society. People want to become an accepted member of an organised group, need a familiar environment such as family. These needs are dependent on the fulfilment and satisfaction of physiological and safety needs. THE ESTEEM NEEDS: Esteem needs are divided into the following two categories: (a) Needs related to respect from others like reputation, status, social success and fame. The need of self evaluation occurs in those persons who are comfortably situated and satisfied with the fulfilment of lower order needs. FOR EXAMPLE, a competent professional who has established a high reputation and does not have to worry about getting a job, may become quite choosy about what type of work he/she would accept. (b) Self esteem, self respect and self regard. The other type of esteem needs include need to achieve, to be competent, to gain approval and to get recognition. The need to feel superior to others also falls under this category. For fulfilling this, a person may buy good quality and costly clothes. SELF ACTUALISATION: Self actualisation refers to the desire to utilise ones personal capacities, to develop ones potentialities to the fullest and to engage in activities for which one is well suited. One should realize and be satisfied that he or she has achieved what one is capable of. Self actualization is possible only when the needs of a person are met to the degree that they neither distract nor consume all available energy. When the person succeeds in satisfying his/her lower order needs, only then he can act upon his/her higher order needs. SELF TRANSCENDENCE: This is the highest level of need where a person becomes conscious of broader reality. He transcends the boundaries of self and attends to the needs of collectivity and society. At this level one becomes aware of the entire humanity. At this level spiritual concerns become very important.
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In this hierarchy it is assumed that the lower order needs dominate peoples lives until that level is fairly satisfied; then comes the next one and so on.
TYPES OF MOTIVATION If a manager wants to get work done by his employees, he may either hold out a promise of a reward for them for doing work in a better or improved way, or he may constraint them, by installing fear in them or by using force ,to do the desired work. In other words, he may utilize a positive or negative motivation. Both these types are widely used by managements. A positive motivation involves the possibility of increased motive satisfaction, while
Positive or incentive motivation- is generally based on reward. According to flippo, positive motivation is a process of attempting to influence others to do your will through the possibility of gain or reward. People work or incentives in the form of the four ps of motivation. Praise, prestige, promotion, pay cheque, According to peter drucker,the real and positives motivatorsare responsible for place ments, high standard of performance, information adequate for self-control and the participations of the workers as a responsible citizen in the plant community. Incentive motivation is the pull mechanism.it has its own benefits. The receipt of awards, due recognized, and praise for work well done definitely. Lead to good team sprit, cooperations and a feeling of happiness.
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NEGATIVE OR FEAR MOTIVATION is based on force and fear. Fear causes persons to act in a certain way because they are afraid of the consequences. In other words, fear motivation is a push mechanism. Negative motivations has certain limitations; through its use only the minimum of effort is put in to avoid punishments. However, in recent years, the treands influenced by extensive in the field which have emphasized the important of the use of positives motivation.
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SELF- MOTIVATION OR ATTITUDE MOTIVATION before one can motive others, one must motivate oneself. One must overcome a certain amount of ones natural inertia. One of the most common deterrents to human actions is that of a tired feeling. This tired feeling is due to emotional reactions within oneself. Lillis has rightly observed: if adopt as part of our philosophy that nothing is ever done finally and right; we will go far toward reducing anxiety and inner conflict in at least two ways:first, it will keep us from geeting discouraged and help us to recover from failures or set backs our on the road to established goals are attained. One motive oneself by seeting certain objectives and goals before oneself.
GROUP MOTIVATION the motivation of a group is as important as self- motivation. Others can be well motivated, when they are informed of ideas, plans, investions or system. nothing, can be done,no act can be under taken , no decision made, no thinking done process brought to a. real conclusion unless and until the act of communications is made an inherent part of the under taking . in dealing with others, it must be borne in mind that the when each member properly motivated.therefore,motivation must be used one;s dayto-day activities. STEPS IN MOTIVATION {a}sizing up situations reqiring motivation; {b}preparing a set of motivation tools; {c}selecting and applying an appropraiate motivation ;and {d}following up the results of the applications.
{a} SIZING UP- this envolves a certainning motivational needs. All employees need motivation but of varying kinds and in varying degrees. Stress at size up stage must, therefore, be laid up as individual differences.
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{b}PREPARING A SET OF MOTIVATING TOOLS this reqires a selection of specific tools of motivation. An executives, from personal experience, from the experiences of others.that may people under different circumstances.
{c}SELECTING AND APPLYING MOTIVATORS the excutives should decide about the words, the tone of voice, the guesters, etc;. the place and timming for this purpose are important.
{d}FEEDBACK this involves the finding out of whether an individual has been motivated. If not, some other device may be applied. SUPERVISORS ROLE MOTIVATIONAL MODEL Supervisors, and managments for that purpose , have the responsibility to asses the motivatoprs and needs of the workers to decide how best these can be fulfilled. Each individual must be analysed separately to discover his motives. Many factors may be listed, includingmoney, a good working environment,challenging work communication system, and an appourtunity for growth and advancement. However, motivation may be weak or strong, depending upon the insentives offered by employees, which release workers abilities and potentials in relation to worker needs. In research conduced among employees in an America to answer the question, what do workers want from their jobs? After eindentifying the motives,the managers must decide and offer what will be most appealing and stimulating. In other words, this is matching needs to possible means to fulfillmants.
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He should communication the reward terms to the workers pointing out clearly what he will earn if he performs capably and successfully. He should avoid making false promises. His role should be to give information and supportive assistance rather than be manipulative. The next step is that of evaluating the actionof the workers to determine if the performance is sufficient to earn the promised reward. If performance is inadequate, causes of inadequacy should be discovered. If possible, corrective measures should be suggested. Managerial actions are helpful in geeting a positives reaction concerning feeling of reward equity if rewards are given as directed and promoised, with equal and fair treartment to every one. Satisfaction occurs spontaneously, and the motivational cycle begins again. ACHIEVEMENT MOTIVATION One of the important needs present to some degree in all human beings is the need for achievement or the need to attain excellence and higher level of performance. People in whom the need for achievement is strong seek difficult work and improve their task performance. They are future oriented, aspire for higher goals and persist on the task chosen. They are task oriented and prefer to work on tasks that are challenging and on which their performance can be evaluated in some way. It may be by comparing it with other persons performance in terms of some standard. Achievement motivation can be seen in many areas of human endeavour such as job, school or sports competition. The differences in early life experiences are found to be related to the strength of achievement motivation in later stage. The expectations parents have from their children also play an important role in the development of achievement motivation. Parents who expect their children to work hard, encourage and praise them for their performance do so as to promote achievement oriented behaviour. The degree of achievement oriented behaviour depends on many factors. One of
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these is fear of failure. It inhibits the expression of achievement behaviour. When some one is successful in school, sports and other activities, we say that achievement motivation is very strong in him or her.
COMPONENTS FOR MOTIVATION THE FIVE KEY COMPONENTS THAT SHOULD BE INCLUDED IN A WELLROUNDED TOTAL REWARDS PROGRAM:
COMPENSATION Simply put, compensation is pay an employee receives for services rendered (this includes short and long-term rewards). Compensation should support the organization's mission, goals and business objectives.
BENEFITS Programs an employer uses to supplement the cash compensation that employees receive (health, income protection, savings and retirement programs). A welldesigned program will not be generic but customized to the diverse workforce that makes up the chain restaurant/retail industry. For example, older employees may desire benefits
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such as elder care assistance for their parents and younger employees may prefer childcare programs for their children.
WORK-LIFE A specific set of organizational practices, policies and programs, plus a philosophy, that actively supports efforts to help employees achieve success at both work and home. Examples include telecommuting, job sharing, flexible work hours, sabbaticals, compressed workweek, and continued education.
PERFORMANCE & RECOGNITION Performance is the alignment of organizational, team and individual efforts toward the achievement of business goals and organizational success, while recognition acknowledges or gives special attention to employee actions, efforts, behavior or performance. It meets an intrinsic psychological need for appreciation of ones efforts and supports business strategy by reinforcing certain behaviors that contribute to organizational success. An effective program can be formal or informal and have a cash and/or non-cash incentive. Believe it or not, an informal survey my firm conducted indicates that a simple "thank you" or compliment for a job well done can have as great an effect as a cash bonus.
DEVELOPMENT & CAREER OPPORTUNITIES As it pertains to Total Rewards development is defined as a set of learning experiences designed to enhance employees' applied skills and competencies. Development engages employees to perform better and engages leaders to advance their organizations' people strategies. An effective development program will lead to career opportunities, a plan for employees to advance their career goals. When executed correctly the company will support career opportunities so that the best and brightest are deployed in positions that enable them to deliver their greatest value to the organization. In order to be considered the "employer of choice" it will be critical to design a Total Rewards program that includes "all" the components mentioned above.
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knowledge leadership in compensation, benefits and total rewards HOW TO MOTIVATE EMPLOYEES TO PERFORM
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Knowing how to motivate employees is one of the most important aspects of a manager's job. An excellent tool to help you develop your motivational skills is our Apex PERFORM model. Use this model to help you create and manage the conditions for improved performance in the workplace.
This article introduces our series on performance management and outlines the PERFORM framework as a whole. There are 7 other articles in the series, all of which you can access from this page.
Dictionary definitions of the word "perform" refer to things that are accomplished or fulfilled. All too often, though, performance management is about a narrow interpretation of these definitions, such as just ensuring targets are met, or that processes are adhered to. Performance management is now often seen as a corrective action, something we do to manage poor performance.
Of course we need to set goals, and we need processes to provide structure. However, these should not be a main focus of management, and certainly not at the expense of encouraging people to realise their potential. Maybe we should be talking about performance management as something to help our people accomplish something significant. Perhaps we should think about fulfilment in terms of realizing results, but also realizing potential. Surely that is how to motivate employees.
Anything significant or worthwhile will involve the management of skills, attitudes and potential. It will also require the deployment of resources and a focus on achieving goals. Motivating our people is not necessarily an easy function of management, but it is one area where good management really can make a difference.
Regardless of how performance management processes are designed in your organization, or of the culture within which they're embedded, how you interpret and use performance management techniques is up to you. What is most important is the need to manage the factors that contribute to employee motivation, and to create the conditions for people
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toperform and realise their potential. Our tool to help you develop these management skills is the Apex PERFORM model. It stands for: P - Potential - foster a positive attitude towards developing potential in your people E - Expertise - abilities, experience and attitudes needed to perform a job R - Results - for individuals, for their teams, and for their organisations F - Focus - on worthwhile, challenging, personal goals that relate to wider objectives O - Opportunities - to achieve, advance and grow R - Resources - needed in order to support people and to help them perform M - Motivation - making work interesting and challenging.
When considering this model, it's important to remember that all of the factors are interdependent. For example, the absence of proper job training will affect a person's expertise. This will probably affect their motivation, and quite likely their opportunity to
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progress. Conversely, the absence of opportunity to develop may have a negative impact on their motivation, and thus their desire to learn or apply themselves. POTENTIAL Learning how to motivate employees begins with helping people to reach their potential. If we are to find ways to raise performance up to the next level, then we need to find ways to convert potential into performance. "Employees Appraisal: Realizing Potential" is the first article in our series for a good reason. Motivating employees to perform must begin with helping them to realize their potential. EXPERTISE "Employee Performance Review: Making Expertise Count" is the second article in our series and stresses the importance of putting someone's expertise to work, where it can contribute the most. By expertise we mean the skills, knowledge and behaviour that people must possesses, or need to possess, in order to do their job.
RESULTS Our third arcticle in the PERFORM series is: "Benefits of Employee Training: Seeing the Results". Here we ask: how do you realize the benefits of the training and support you've provided to improve someone's performance? If performance is about contribution, then support must be linked to results. There needs to be clarity about what results you want to achieve, and an assessment of what results are actually achieved. FOCUS Performance needs focus. It's one thing to do something well, but it's equally important to ensure it's the right things that are done well. Individual performances, whilst possibly being good in themselves, can be counter-productive if they don't contribute to the wider goals of the team and organization. Controlling this requires good planning and good management. We give some tips on how to do both in: "Performance Management Plan: Be Focused".
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OPPORTUNITIES Without opportunities, a performance management plan will only ever be just just that: a plan. Knowing how to motivate employees is not enough. That knowledge must be combined with a willingness to give people opportunities to perform. We discuss this crucial element of our PERFORM model in our article: Employee Training Development.
RESOURCES Performanced based management is about more than ambition, words or ideas. To encourage employees to perform you need to support them with the right resources. These resources must then be allocated and managed in order to ensure they are most effectively used. Having provided opportunities for people to perform, next it's crucial to understand the importance of resourcing performance based management.
MOTIVATION Knowing how to motivate employees is a complex business and there are numerous pages on this site designed to help. Employee Motivation Techniques has been especially written to relate to the PERFORM model. In this article we explore some fundamental principles of motivation but also ask some more challenging questions.
THE ENERGY TO PERFORM Of course, just knowing how to motivate employees is not enough. Motivation is important but it's not effective without energy. Whilst motivation is considered to be the intent or desire to act, energy can be defined as the capacity to perform work. If you want to know how to motivate employees properly, use the Apex PERFORM model. It will help you combine the intent or desire of motivation, with the capacity and capability to achieve, that is: toPERFORM
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APPLICATIONS
EDUCATION Motivation is of particular interest to educational psychologists because of the crucial role it plays in student learning. However, the specific kind of motivation that is studied in the specialized setting of education differs qualitatively from the more general forms of motivation studied by psychologists in other fields. Motivation in education can have several effects on how students learn and how they behave towards subject matter.[21] It can: 1. Direct behavior toward particular goals 2. Lead to increased effort and energy 3. Increase initiation of, and persistence in, activities 4. Enhance cognitive processing 5. Determine what consequences are reinforcing 6. Lead to improved performance. Because students are not always internally motivated, they sometimes need situated motivation, which is found in environmental conditions that the teacher creates. The majority of new student orientation leaders at colleges and universities recognize that distinctive needs of students should be considered in regard to orientation information provided at the beginning of the higher education experience. Research done by Whyte in 1986 raised the awareness of counselors and educators in this regard. In 2007, the National Orientation Directors Association reprinted Cassandra B. Whyte's research report allowing readers to ascertain improvements made in addressing specific needs of students over a quarter of a century later to help with academic success.[22]
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INTRINSIC MOTIVATION occurs when people are internally motivated to do something because it either brings them pleasure, they think it is important, or they feel that what they are learning is significant. It has been shown that intrinsic motivation for education drops from grades 3-9 though the exact cause cannot be ascertained. [23] Also, in younger students it has been shown that contextualizing material that would otherwise be presented in an abstract manner increases the intrinsic motivation of these students. EXTRINSIC MOTIVATION comes into play when a student is compelled to do something or act a certain way because of factors external to him or her (like money or good grades).
Whyte researched and reported about the importance of locus of control and academic achievement. Students tending toward a more internal locus of control are more academically successful, thus encouraging curriculum and activity development with consideration of motivation theories. Motivation has been found to be an important element in the concept of Andragogy (what motivates the adult learner), and in treating Autism Spectrum Disorders, as in Pivotal Response Therapy.
BUSINESS At lower levels of Maslow's hierarchy of needs, such as physiological needs, money is a motivator, however it tends to have a motivating effect on staff that lasts only for a short period (in accordance with Herzberg's two-factor model of motivation). At higher levels of the hierarchy, praise, respect, recognition, empowerment and a sense of belonging are far more powerful motivators than money, as both Abraham Maslow's theory of motivation and Douglas McGregor's theory X and theory Y (pertaining to the theory of leadership) demonstrate. Maslow has money at the lowest level of the hierarchy and shows other needs are better motivators to staff. McGregor places money in his Theory X category and feels it is a poor
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motivator. Praise and recognition are placed in the Theory Y category and are considered stronger motivators than money.
Motivated employees always look for better ways to do a job. Motivated employees are more quality oriented. Motivated workers are more productive.
The average workplace is about midway between the extremes of high threat and high opportunity. Motivation by threat is a dead-end strategy, and naturally staff are more attracted to the opportunity side of the motivation curve than the threat side. Motivation is a powerful tool in the work environment that can lead to employees working at their most efficient levels of production. Nonetheless, Steinmetz also discusses three common character types of subordinates: ascendant, indifferent, and ambivalent who all react and interact uniquely, and must be treated, managed, and motivated accordingly. An effective leader must understand how to manage all characters, and more importantly the manager must utilize avenues that allow room for employees to work, grow, and find answers independently. The assumptions of Maslow and Herzberg were challenged by a classic study at Vauxhall Motors' UK manufacturing plant. This introduced the concept of orientation to work and distinguished three main orientations: instrumental (where work is a means to an end), bureaucratic (where work is a source of status, security and immediate reward) and solidaristic (which prioritises group loyalty). Other theories which expanded and extended those of Maslow and Herzberg included Kurt Lewin's Force Field Theory, Edwin Locke's Goal Theory and Victor Vroom's Expectancy theory. These tend to stress cultural differences and the fact that individuals tend to be motivated by different factors at different times. According to the system of scientific management developed by Frederick Winslow Taylor, a worker's motivation is solely determined by pay, and therefore management need not consider psychological or social aspects of work. In essence, scientific management bases human motivation wholly on extrinsic rewards and discards the idea of intrinsic rewards.
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In contrast, David McClelland believed that workers could not be motivated by the mere need for moneyin fact, extrinsic motivation (e.g., money) could extinguish intrinsic motivation such as achievement motivation, though money could be used as an indicator of success for various motives, e.g., keeping score. In keeping with this view, his consulting firm, McBer & Company, had as its first motto "To make everyone productive, happy, and free." For McClelland, satisfaction lay in aligning a person's life with their fundamental motivations. Elton Mayo found that the social contacts a worker has at the workplace are very important and that boredom and repetitiveness of tasks lead to reduced motivation. Mayo believed that workers could be motivated by acknowledging their social needs and making them feel important. As a result, employees were given freedom to make decisions on the job and greater attention was paid to informal work groups. Mayo named the model the Hawthorne effect. His model has been judged as placing undue reliance on social contacts at work situations for motivating employees. In Essentials of Organizational Behavior, Robbins and Judge examine recognition programs as motivators, and identify five principles that contribute to the success of an employee incentive program: Recognition of employees' individual differences, and clear identification behavior deemed worthy of recognition Allowing employees to participate Linking rewards to performance Rewarding of nominators Visibility of the recognition process of
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GAMES Motivational models are central to game design, because without motivation a player will not be interested in progressing further within a game. Several models for gameplay motivations have been proposed, including Richard Bartle's. Jon Radoff has proposed a fourquadrant model of gameplay motivation that includes cooperation, competition, immersion and achievement. The motivational structure of games is central to the gamification trend, which seeks to apply game-based motivation to business applications.
ONLINE COMMUNITIES Motivation to participate and contribute represents one of the most important element in the success of online communities. HOW TO MAXIMIZE MOTIVATION? If you want to make things happen the ability to motivate yourself and others is a crucial skill. At work, home, and everywhere in between, people use motivation to get results. Motivation requires a delicate balance of communication, structure, and incentives. These 21 tactics will help you maximize motivation in yourself and others. MOTIVATION 1. CONSEQUENCES Never use threats. Theyll turn people against you. But making people aware of the negative consequences of not getting results (for everyone involved) can have a big impact. This one is also big for self motivation. If you dont get your act together, will you ever get what you want? 2. PLEASURE This is the old carrot on a stick technique. Providing pleasurable rewards creates eager and productive people. 3. PERFORMANCE INCENTIVES Appeal to peoples selfish nature. Give them the opportunity to earn more for themselves by earning more for you.
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4. DETAILED INSTRUCTIONS If you want a specific result, give specific instructions. People work better when they know exactly whats expected.
5. SHORT AND LONG TERM GOALS Use both short and long term goals to guide the action process and create an overall philosophy. 6. KINDNESS Get people on your side and theyll want to help you. Piss them off and theyll do everything they can to screw you over. 7. DEADLINES Many people are most productive right before a big deadline. They also have a hard time focusing until that deadline is looming overhead. Use this to your advantage by setting up a series of mini-deadlines building up to an end result. 8. TEAM SPIRIT Create an environment of camaraderie. People work more effectively when they feel like part of team they dont want to let others down. 10. RECOGNIZE ACHIEVEMENT Make a point to recognize achievements one-onone and also in group settings. People like to see that their work isnt being ignored. 11. PERSONAL STAKE Think about the personal stake of others. What do they need? By understanding this youll be able to keep people happy and productive. 12. CONCENTRATE ON OUTCOMES No one likes to work with someone standing over their shoulder. Focus on outcomes make it clear what you want and cut people loose to get it done on their own. 13. TRUST AND RESPECT Give people the trust and respect they deserve and theyll respond to requests much more favorably.
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14. CREATE CHALLENGES People are happy when theyre progressing towards a goal. Give them the opportunity to face new and difficult problems and theyll be more enthusiastic. 15. LET PEOPLE BE CREATIVE Dont expect everyone to do things your way. Allowing people to be creative creates a more optimistic environment and can lead to awesome new ideas.
16. CONSTRUCTIVE CRITICISM Often people dont realize what theyre doing wrong. Let them know. Most people want to improve and will make an effort once they know how to do it. 17. DEMAND IMPROVEMENT Dont let people stagnate. Each time someone advances raise the bar a little higher (especially for yourself). 18. MAKE IT FUN Work is most enjoyable when it doesnt feel like work at all. Let people have fun and the positive environment will lead to better results. 19. CREATE OPPORTUNITIES Give people the opportunity to advance. Let them know that hard work will pay off.
20. COMMUNICATION Keep the communication channels open. By being aware of potential problems you can fix them before a serious dispute arises. 21. MAKE IT STIMULATING Mix it up. Dont ask people to do the same boring tasks all the time. A stimulating environment creates enthusiasm and the opportunity for big picture thinking.
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INTERPRETATION:
The table shows that 52% of the respondents are expressing that both financial and nonfinancial incentives will equally motivate them, 18% are expressing non-financial incentives motivates and 30% respondents says we only motivated through monetary incentives only 1) What factor De-motives you at work place? a) b) c) Job profile Company policy Work environment
No. of Respondents 14 16
Percentage 28 32
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40 100
INTERPRETATION:
The table shows that 40% of the respondents are de-motives with work environment and 32% with company policy and 28% of the respondents are de-motives with job profile. From this it can be concluded that work environment and company policy are de-motives at work place. 1. How far you are satisfied with the incentives provided by the organizations?
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(Table 4.1.4) Particulars Highly satisfied Satisfied Neutral Dissatisfied Highly dissatisfied Total No. of Respondents 18 29 3 0 0 50 Percentage 36 58 6 0 0 100
INTERPRETATION:
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The table shows that 36% of the respondents are highly satisfied and 58% of the respondents are satisfied with incentives provided by the organization so we can conclude most of the employees are satisfied with the incentives provided by the organization. 2. a) b) c) Does your Job improve your skills and abilities? Yes No Never
(Table 4.1.5) Particulars Yes No Never Total No. of Respondents 32 10 8 50 Percentage 64 20 16 100
INTERPRETATION:
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64% of the respondents are agreed that their job improves their skills and abilities and 20% of the respondents agreed that their skills and abilities are not improves. It can be conclude that their job improves their skills and abilities.
3. a) b) c)
Do you think that the incentives and other benefits will influence your performance? Influence Does not influence No opinion
(Table 4.1.6) Particulars Influence Does not influence No opinion Total No. of Respondents 32 12 6 50 Percentage 64 24 12 100
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INTERPRETATION: The table shows that 64% of the respondents those incentives and other benefits will influence their performance,24% respondents says they are not influence their performance and 12% respondents did not say any opinion. 6. Management is really interested in motivating the employees? a) Agree b) Disagree c) Neutral Particulars Agree Disagree Neutral total No. of respondents 25 18 7 50 Percentage 50 36 14 100
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INTERPRETATION: From the above table 50% of the employees are agreed that the management is really interested in motivating the employees and 36% of the employees are disagreed and 14% are neutral.So it can be concluded that management is really interested in motivate the employees in organization. 7. Does the management involve you in the decision making which are connected to your department? a) YES b) No c) Occasionally Particulars Yes No Occasionally TOTAL No. of Respondents 47 0 3 50 Percentage 94 0 6 100
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INTERPRETATION: The table shows 94% of the respondents agree that they the management involves them in decision making which are connected their department.
No. of Respondents 15 30 5 50
Percentage 30 60 10 100
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INTERPRETATION: From the above table, we can conclude that 60% of the respondents agreed that they feel enthusiastic some times in their work. 9. Are you encouraged to come up with new and better ways of doing things? a) Strongly agree b) agree c) Neutral d) Disagree e) Strongly disagree
Percentage
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INTERPRETATION: From the above table we can conclude that 40% of the employees agreed that they are encouraging to come up with new and better ways of doing things.
10. Have you been promoted at work in the last six months? a ) Yes b) No
No. of Respondents 18 32 50
Percentage 36 64 100
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INTERPRETATION: The table shows that 64% of the employees are not promoted from the last six months and 36% of the employees are promoted. From this we can conclude that most of the employees are not promoted. 11. Are you adequately recognized for your good work? a) b) c) Agree Disagree neutral
Particulars Agree
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No. of Respondents 28
Percentage 56
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10 12 50
20 24 100
INTERPRETATION: The figure shows that 56% of the employees agreed that they are recognized for good work and 20% are disagreed and 24% respondents are neutral. So it can conclude that most of the employees recognized by their good work.
12. Rank the following factors which motivates you the most?
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(Rank 1, 2, 3, 4 respectively) No. 1 2 3 4 5 Factors Salary increase Promotion Leave Motivational talks `reorganization Rank
No. of Respondents 21 15 3 5 6 50
Percentage 42 30 6 10 12 100
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INTERPRETATION: The table shows that 42% of the respondents are responding that the increase in salary will motivate them the most. 13. Have you been nominated for training & development programmers for the last 6 months? a) Yes b) No
No. of Respondents 30 20 50
Percentage 60 40 100
INTERPRETATION:
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The table shows that 60% of the respondents are expressing that they are nominated for training and development programme in the organization for the last 6 months. 14. Does the management provide continuous feed back in solving work related problems? a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
Number of Respondents 14 16 9 5 6 50
Percentage 28 32 18 10 12 100
INTERPRETATION:
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The table shows that 28% of respondents strongly agreed and 32% agree that they are getting feedback from management and 20% are neutral and 10% are disagree that they are not getting feedback from the management. 15. Overall are you satisfied with your job? a) Yes b) No Particulars Yes No TOTAL Number of Respondents 28 22 50 Percentage 56 44 100
INTERPRETATION: The figure shows that 56% of the respondents are satisfied with their job and only 44% of the respondents agreed that they are not satisfied with their job.It can be concluded that most of the respondents are satisfied with their job.
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FINDINGS The findings of the study are follows The NAHAR SPINNING MILLS, LUDHIANA,has a well defined organization
structure. There is a harmonious relationship is exist in the organization between employees and management. The employees are really motivated by the management. The employees are satisfied with the present incentive plan of the company Most of the workers agreed that the company is eager in recognizing and acknowledging their work. The study reveals that there is a good relationship exists among employees. Majority of the employees agreed that there job security to their present job. The company is providing good safety measures for ensuring the employees safety. From the study it is clear that most of employees agrees to the fact that performance
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Appraisal activities and support from the co-workers in helpful to get motivated. The study reveals that increase in the salary will motivates the employees more. The incentives and other benefits will influence the performance of the employees
SUGGESTIONS The suggestions for the findings from the study are follows Most of the employees agree that the performance appraisal activities are helpful to get motivated, so the company should try to improve performance appraisal system, so that they can improve their performance. Non financial plans should also be implemented; it can improve the productivity level of the employees. Organization should give importance to communication between employees and gain co-ordination through it. Skills of the employees should be appreciated. Better carrier development opportunities should be given to the employees for their improvement If the centralized system of management is changed to a decentralized one, then there would be active and committed participation of staff for the success of the organization
CONCLUSION
The study concludes that, the motivational program procedure in NAHAR SPINNING MILLS, LUDHIANA,is found effective but not highly effective. The study on employee
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motivation highlighted so many factors which will help to motivate the employees. The study was conducted among 50 employees and collected information through structured questionnaire. The Study helped to findings, which were related with employee motivational, programs which are provided in the organization. The performance appraisal activities really play a major role in motivating the employees of the organization. It is a major factor that makes an employee feels good in his work and results in his satisfaction too. The organization can still concentrate on specific areas which are evolved from this study in order to make the motivational programs more effective. Only if the employees are properly motivated- they work well and only if they work well the organization is going to benefit out it. Steps should be taken to improve the motivational programs procedure in the future. The suggestions of this report may help in this direction.
Bibliography
BOOKS REFFERED Wayne F. Cascio 2006, Managing Human Resources, TMH. Aswathappa, 2006, Human Resource Management, 4th edition, TMH K.Aswathappa, 2006, Organizational Behaviour- Text, Cases and games, Himalaya Publishing House Curtis w. cook and Phillip L.Hunsaker, 2006, Management and Organizational Behaviour, Macgraw-Hill Irwin
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Jyothi P. and DN Venkatesh-2006, Human Resource Management, Oxford University press. HRM Review July 2010. by Dr.G C NAG Adjunct Professor, IBS Mumbai
QUESTIONNAIRE
Employee Name: Age: Sex:
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1. Which Type Of Incentives Motivate You More? a) Monetary Incentives b) Non- Financial Incentives c) Both
2. What factor de-motivates you at work place? a) Job profile b) Company policy c) Work environment
3.How far you are satisfied with the incentives provided by the organisation.? a) Highly satisfied b) satisfied c) neutral 4. Does your job improve your skills and abilities? a) Yes
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b) No c) Never
5. Do you think that the incentives and other benefits will influence your performance? a) Influence b) Does not influence c) No opinion 6. Management is really interested in motivating the employees? a) Agree b) Disagree c) Neutral
7. Does the management involve you in the decision making which are connected to your department? a) Yes b) No c) Occasionally 8. Do you enthusiastic about your work? a) Always b) Sometimes c) Never 9. Are you encouraged to come up with new and better ways of doing things?
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10. Have you been promoted at work in the last six months? a) Yes b) No
11. Are you adequately recognized for your good work? a) Agree b) Disagree c) Neutral
12. Rank the following factors which motivates you the most? (Rank 1, 2, 3, 4 respectively) No. 1 2 3 4
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Rank
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`reorganization
13. Have you been nominated for training & development programmes for the last 6 months? a) Yes b) No
14. Does the management provide continuous feed back in solving work related problems? a) Strongly Agree b) Agree c) Neutral d) Disagree e) Strongly Disagree
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Thank You
Signature
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