An analysis of the key factors that influence the levels of motivation

An analysis of the key factors that influence the levels of look atThe purpose of this study argon the motivational factors that Shell Pakistan use to impels its employees to work in assorted departments. I cast taken five departments Sales, Marketing, Finance, HR and Production department. As around 300 people work in Shell and to motivate them shell uses different motivational theories which whitethorn include Alderfers ERG speculation, McClellands Theory of Needs, fairishness Theory, Expectancy Theory.These are the following motivational factors that these departments practice continuously to motivate employees.Employee judgementIntrinsic AwardsEmployee contactSkill-based Pay PlansFlexible BenefitsBenefits programmeTraining provisionTime off and time outOur diverse global communitySports and favorable activitiesListening to our employeesAfter the analysis of complete survey we rump conclude that employees of gravel PAKISTAN enjoys different attributes of Motivation li ke they have Job Satisfaction as they believe they have personal and professional growth opportunities, they feel they have empowerment.They have re everyy skillful, extravagantly-quality and superior functional environment. They believe that their carrying out is appreciated leave alone result in reward as SHELL PAKISTAN is having EDR system. The one thing that may be a bring of de-motivation is SHELL PAKISTAN does not offer spare benefits.CORPORATE PROFILESecond Largest oil marketing comp any(prenominal) in Pakistan with an average turn over of over US$3.4 one million million million and market share of over 24% in black oil and 35% in white oil.Blue chip organization with market capitalization of around Rs. 44 billion US$ 755 million contributing US$ 873 million to the national exchequer.Regained market leadership in Mogas during FY 04 by elevating market share to 44%Set pecuniary landmarks over the last 4 days with earnings almost doubled from Rs.2.3 billion to Rs. 7.0 6 billion maximizing shareholders value.Only Pakistani corporation to become fellow member of the World Economic Forum based on stringent and forward looking criteria.Only company in Pakistan whose turnaround and remarkable performance is cited in various lesson studies both locally and internationally.Around 3,800 sell outlets across the country including 1,000 New Vision outlets commissioned inside five years.Vast cornerstone of 9 installations and 23 depots from Karachi to Chitral and a supply chain supported by 2000 strong tank-lorry fleet and 950 rail modality wagons.Extensive storage capacity, almost 15% of hit national storage, i.e. around 160,000 metric tons.A company fully aware(p) of HSE standards and using these as part of continuous improvement emergence.ISO 90012000 certification of study retail outlets, Mobile Quality Testing Units and key installations/ depots and ISO 140011996 distinction for Kemari Terminal C.Leading National lodge committed to support ongo ing or innovative amicable and charitable projects in the field of education, health, welfare, women empowerment, etc.TABLE OF CONTENTS1 COMPANY INTRODUCTION 71.1 Introduction 71.2 Vision Evaluation 81.3 Values 81.4 Responsibilities 81.5 Future Engagements 92 MOTIVATION IN ORGANIZATION 112.1 Definition 112.2 Motivation Process 112.3 Employee Motivation at Workplace 113 MOTIVATIONAL THEORIES ADOPTED AT SHELL PAKISTAN 133.1 Alderfers ERG Theory 133.1.1 Difference between Maslows pecking order of Need Alderfers 133.1.2 Alderfers ERG Theory AT SHELL PAKISTAN 143.1.3 Relatedness 153.1.4 Growth 153.2 Equity Theory 163.2.1 Theory Overview 163.2.2 Equity Theory AT SHELL PAKISTAN 183.3 Expectancy Theory 183.3.1 Theory Overview 183.3.2 Expectancy Flowchart 193.3.3 Expectancy Theory AT SHELL PAKISTAN 204 other(a) MOTIVATIONAL FACTORS AT SHELL PAKISTAN 214.1 Employee Appraisal 214.2 Intrinsic Awards at SHELL PAKISTAN 234.3 Employee Involvement 244.3.1 Employee Involvement AT SHELL PAKISTAN 244.4 Flexible Benefits 254.4.1 Retirement Plans 254.4.2 Health Insurance 264.4.3 Unexpected Conditions 264.4.4 Rightsizing 274.5 De-motivated Employees 274.5.1 Counseling 274.5.2 Career Development 275 SURVEY DETAILS 285.1 Job Satisfaction 285.2 Work surround 305.3 Employee Empowerment 325.4 effect Appraisal Satisfaction 335.5 Flexible Benefits 356 CONCLUSION 367 RECOMMENDATION 388 APPENDIX A Survey Questionnaire 39COMPANY INTRODUCTIONIntroductionThe history of Shell as a brand name in South Asia is more than 100 years old. Shell brand name dating back to 1899 when Asiatic Petroleum, the marketing arm of two companies Shell catch familiarity and Royal Dutch Petroleum Company began their imports of kerosene oil from Azerbaijan in South Asia. Till today, the heritage of the past is noticeable in a market of South Asia since 1898In 1928, to make their distribution capability efficient effective, the market concentration ofRoyal Dutch Shell plc and the Burma crude oil Company t rammel in sub-continent had merged and Burma Shell Oil Storage Distribution Company of sub-continent was born(p). After the independence of Islamic Republic of Pakistan in 1947, the name changed to the Burma Shell Oil Distribution Company of Pakistan. During 1970, when 51% of the shareholding was transferred to Pakistani investors, the name changed to Pakistan Burma Shell (PBS) Limited. The Shell and the Burma Groups retained the remaining 49% in equal propositions. In February 1993, as economic liberalization began to take root and the Burma showd opportunity to Pakistani Investors by divesting from PBS, Shell Petroleum (Pakistan) stepped into raise its shareholding to 51%. The years 2001-2 have seen the Shell Petroleum Company successively increasing its stake, with the Group now having a 76% stake in Shell Pakistan Ltd (SPL) an expression of confidenceShell has an over 100 years presence in the Subcontinenthttp//www.shell.com.pk/home/ fill/pak/aboutshell/who_we_are/history/h istory_logo/(Date26-11-2010, Time1800)Vision EvaluationThe Vision of Shell as a company associate to energy industry have been very strict focused to competition. The futuristic orgasm has let to the group in investing innovating different get-gos of energy apart(predicate) from oil petroleum.ValuesWe set high standards of performance and ethical behaviour that we apply internationally. The Shell General Business Principles, Code of Conduct and Code of morals help everyone at Shell act according to our core values of honesty, integrity and respect for people and to comply with relevant legislation and regulations.http//www.shell.com.pk/home/content/pak/aboutshell/who_we_are/our_values_and_principles/ (Date 26-11-2010, Time 2100)ResponsibilitiesShell Pakistan depute its total endeavors to implement its core values and ethical conduct by fulfilling its responsibilities expectations to its employees, customers, investors, shareholders to society.EmployeesShell Pakistan alwa ys puts the synthetic rubber security measures of its employees first. This depicts that the organization has a deep concern for its employees value the work efforts by which it fatalitys to achieve success.CustomersThe organization has a high motive to attract retain customers by providing them the products that are competitive in price of high standards in quality. The competition in energy sector has been highly focused by Shell investments in innovative products have always been there.InvestorsIt is important for Shell Pakistan that its investors base remains supportive to the organization so that when it unavoidably to expand or restructure any of its function or component, the business always have financial support to effectively pursue that.ShareholdersShareholders are the real owners of the organization. Shell Pakistan makes most of its efforts to protect shareholders investments provide them with competitive benefits of long term (capital growth) short term retu rns (dividends).To SocietyThere are many aspects of responsibility to society. Some of them are Corporate, Environmental sustainability concern for familiar people that the business directly or indirectly effects to.Shell Pakistan has clear policies for it sustainability has participated in flood relief in Pakistan by providing aids to the most effected.http//www.shell.com.pk/home/content/pak/aboutshell/media_centre/news_and_media_releases/2010/flood_2010.html (Date 26-11-2010, Time 1349)Future EngagementsTo engage in backward integration by acquiring a major National Refinery. This has a capacity of 2.8 million tons of which sales to SHELL PAKISTAN are 25%.To develop a white oil pipeline in collaboration with major POL companies so as to eliminate transportation inefficiencies.Invest in the business of coal mining to capture a lucrative fuel source to which most consumers are switching.MOTIVATION IN ORGANIZATIONDefinitionNo another(prenominal) topic in the field of Organization al Behavior (OB) has received as much attention as the subject of motivation. . (FTC, 2009)Motivation can be defined in a variety of ways, depending on whom you ask. If you ask some(prenominal)one on the street, you may get a response like, Its what drives us or Motivation is what makes us do the things we do. As far as a formal definition, motivation can be defined as forces at heart an respective(prenominal) that account for the level, direction, and persistence of effort expended at work, according. (Parsons and Maclaran, 2009)This is an excellent working definition for use in business. Now that we regard what motivation is, we can look at the factors that help autobuss to be able to motivate and then a look at some of the theories on motivation. (Latham, 2007)Motivation ProcessUnsatisfied bespeak = Tension = Drives = Search Behavior = Satisfied needs = Reduction of tension = New unsatisfied needs (Adair, 2009)Employee Motivation at WorkplaceMotivation is what gets you sta rted. Habit is what keeps you going. Jim RyunThe lineage of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. precisely thats easier said than done Motivation practice theories are difficult subjects, touching on several disciplines. . (FTC, 2009)In scandalise of enormous research, prefatorial as well as applied, the subject of motivation is not clearly understood and more often than not poorly practiced. To understand motivation one moldiness understand human nature itself. And there lies the problemHuman nature can be very simple, yet very complex too. An understanding and appreciation of this is prerequisite to effective employee motivation in the workplace and therefore effective management and leadership (Latham, 2007).There is an old stateYou can take a horse to the water but you cannot force it to drink he will drink if he is thirstyThat is also the case with people they will do what they want to do or otherwise motivated to do, whether it is to excel on the full treatmenthop floor or in the drop tower. The people or employees must be motivated or driven to it, either by themselves or through external stimulus. (Adair 2009 Leadership and Motivation)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. carrying out is considered to be a function of ability and motivation, thusJob Performance = f (ability) (motivation)Ability in turn depends on education, experience and training and its improvements 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 correct know where to start. As a guideline, there are broadly seven strategies for motivation.Positive reinforcement / high expectationsEffective discipline and penalisationTreating pe ople fairlySatisfying employees needsSetting work related goalsRestructuring jobsBase rewards on job performanceThese are the basic strategies, though the intermingle in the final recipe will vary from workplace situation to situation. Essentially, there is a gap between an individuals actual state and some coveted state and the manager tries to reduce this gap (Latham, 2007)Motivation is, in effect, a means to reduce and manipulate this gap. It is inducing others in a specific way towards goals specifically stated by the motivator. Naturally, these goals as also the motivation system must conform to the corporate policy of the organization. The motivational system must be tailored to the situation and to the organization. (Adair, 2009)SHELL PAKISTAN is a huge setup and has about 2000 employees. To keep all of its employees motivated is a very complex task, because of the large offspring of employees and as all(prenominal) employee has his/her own personality. It becomes virtual ly impossible to devise techniques that match the personality of all the employees. So for this purpose they have certain procedures and policies jointly for all the employees of the organization.MOTIVATIONAL THEORIES ADOPTED AT SHELL PAKISTANAlderfers ERG TheoryAlderfers theory is called the ERG theory Existence, Relatedness, and Growth. Alderfers ERG Theory can well be compared with Maslows Hierarchy of Need Theory cause Alderfers has tried to cover all the points as discussed by Maslows with a little change, which is discussed below. . (FTC, 2009)ExistenceExistence refers to our concern with basic material existence requirements what Maslows called physiological and safety needs.RelatednessRefers to the desire we have for maintaining interpersonal births similar to Maslows social/love need, and the external component of his esteem need.GrowthRefers to an inbred desire for personal development the intrinsic component of Maslows esteem need, and self-actualization. (Latham, 200 7)Difference between Maslows Hierarchy of Need AlderfersAlderfers ERG theory differs from Maslows Need Hierarchy insofar as ERG theory demonstrates that more than one need may be operative at the same time. ERG theory does not assume a rigid hierarchy where a lower need must be substantially satisfied before one can move on. (FTC, 2009)ERG Theory argues, like Maslows that satisfied lower-order needs lead to desire to satisfy higher-order needs but multiple needs can be operating as motivators at the same time, and frustration in attempting to satisfy a higher-level need can result in regression to a lower-level need. (Adair, 2009)Alderfers ERG Theory AT SHELL PAKISTANExistenceSHELL PAKISTAN gratifies the need for existence and the employees at SHELL PAKISTAN think that their basic needs are being satisfied but they dont seem to be completely satisfied with it especially with the material rewards that they get. For e.g.Average SalaryThe employees at SHELL PAKISTAN are not satisfied with their salaries and they consider it to be average. This view is strongly found in the lower govern employees and the contractual employees. Though the upper level employees that include the Departmental Heads, General Managers and above seem to be much satisfied with what they are gainful.Excellent Working EnvironmentThough the average recompense seems to be de-motivating factor for the low level employees and the contractual employees but due to the excellent working environment that SHELL PAKISTAN provides, these employees seem to be seldom de-motivated. It was impress for us to find that there had been various employees who just wanted to work in SHELL PAKISTAN because of the working environment they provide regardless of what they are paid and what job responsibilities are they set aparted. This turned out to be one of SHELL PAKISTANS strongest points.Job SecurityWorking at SHELL PAKISTAN seems to be a assure job as far as the durable and high-level employees are c oncerned but the contractual employees never find it to be as secure. But due to job security being a major issue in Pakistan today, these contractual employees were hesitant to voice their complaint. (Latham, 2007)Insurance Medical BenefitsAll permanent employees at SHELL PAKISTAN enjoy the Life Insurance and Medical Benefits that are entitled to them. In contrast the contractual employees realizing the downward trend in the economy, just want a stable job regardless of the insurance and medical benefits provided by SHELL PAKISTAN. (Latham, 2007)Employee SafetyThe employee safely is given top most greatness and they also have an emergency evacuation system with which the entire organization can be evacuated within minutes. The employees also given various training and sometimes perform various drills for employee safety. The employee seems to be satisfied with the safety that SHELL PAKISTAN provides to them.RelatednessThese needs are social in nature and they are about the interp ersonal relationships of the staff. near Working RelationshipAt SHELL PAKISTAN, these needs are quite well satisfied since the employees have a good working relationship even though there is an air of competency surrounding them.Self Differences between High Level EmployeeIt has also been noticed that few of the high level employees at organization have some self differences that are developed due to status problems and ownership problems which effect the process of maintaining a good interpersonal relationship but then again the high level employees are professionals and they tend to forget these difference when they meet from each one other a global level. (Latham, 2007)Company Events and PrivilegesAll employees are given the special privilege to join and use the SHELL PAKISTAN club, gym, attend in Company events, dinner etc thus allowing them to intermingle with each more.GrowthThe permanent and high-level employees are satisfied with the growth opportunities that SHELL PAKISTAN provides them every now and then.TrainingEmployee training workshops are conducted on a need substructure. Trainings are carried out in areas such asImprovement of Business Communication skillsUsage of new Computer softwareEncourages IdeasEmployees are encouraged to put forward any creative, beneficial ideas. If the idea seems to be attractive, SHELL PAKISTAN gives the employees the opportunity to implement the idea. This turns out to be a very encouraging and motivating approach for the employees and later on the employees are rewarded if the idea is implemented well. (Latham, 2007)Employee Job RotationFor the purpose of employee growth and increase in motivation, employees are often rotated within or between departments.Equity TheoryTheory OverviewEquity (or inequity) is a psychological state residing within an individual. It creates a feeling of dissonance that the individual attempts to nail down in some manner (Latham, 2007)Equity is a social equivalence process, resulting when individuals compare their pay to the pay of others. There is no rational or ace equitable pay rate for any given job or individual. Equity is a subjective evaluation, not an accusive one. Based on the equivalences that an individual uses, each individual is likely to develop different perceptions of equity. (Latham, 2007)The comparisons that individuals use tend to fall into four classes of comparisonSelf Inside An employees experiences in a different position inside his current organization. (Adair, 2009)Self outside An employees experiences in a different position outside his current organization.Other Inside Another item-by-item or group of individuals inside the employees organization.Other Outside Another Individual or group of individuals outside the employees organization.(Latham, 2007)Individuals determine equity by comparing their contributions (job inputs) and their rewards (job outcomes) to those of their comparisons. This comparison takes the form of a ratio and if this ratio is in balance, the individual perceives equity. Inequity is experienced when ratio is out of balance. Thus when an individual perceives that his/her contribution is equal to the comparison and his/her reward is lower or his/ her contribution is greater and reward is equal, inequity is felt. (Latham, 2007)The individual responses to inequity includeLeaving the organizationReduction in performance, chiefly extra role behaviorAttempting to increase ones payAttempting to reduce the performance of othersRationalization- perceptually altering reward and/or contributionWhat do individuals view as relevant contributions? Given the perceptual nature of equity, the answer varies with each individual however, contributions fall into a number of categoriesJob contributionslet in the factors that differentiate one job from another. They typically include responsibility, skills, education, and working conditions required by the job itself. (e.g., individuals working in jobs requir ing greater levels of responsibility generally expect higher levels of pay). (Parson and Maclaran, 2009)Personal contributionsInclude attributes the individuals bring to the organization that they believe differentiate them from others such as experience, longevity and extra education (e.g., individuals with greater seniority often expect higher levels of pay).Performance contributionsInclude the extra effort/results that differentiate one employee from another (e.g., individuals who perceive that their performance is better than others with whom they work, often believe they are entitled to higher levels of pay. (Latham, 2007) true Management interestsManagers generally define pay-related problems in terms of their behavioral consequences (turnover or performance). Therefore, inequity itself is not generally viewed as a management problem unless it appears to be related to turnover of reduced performance. Since the links between turnover and pay are often much clearer than those be tween pay and extra role behavior, turnover often becomes the only managerial focus. Therefore, typical management interests relate to keeping the employees who it deems valuable.(Latham, 2007)Typical Employee InterestsFrom the employee perspective, the perception of inequity is a problem in itself. A unions interests lies in achieving equity for the greatest number of its members, regardless of their ability to leave the organization. In fact, it is a unions responsibility to bargain for the interests of those with limited individual power or marketability. downcast morale is often a consequence of inequity. Even when low morale is not manifested in turnover, reduced performance, to reluctance to take on extra duties, from the employee perspective, it is whitewash viewed as a problem. (Adair, 2009)Equity Theory AT SHELL PAKISTANEmployee Performance AppraisalEmployee performance assessment procedure is highly accountable thus going no chance of inequity among employees.Employee S alary EvaluationAn employees educational qualification is given highest importance when evaluating salary. It may be possible that a lower grade employee, within the same or different department, has a higher salary than someone in an immediately higher grade.Thus inequity sometimes arises among employees working in a higher group within the same or different departments. (Parsons and Maclaran, 2009)Expectancy TheoryTheory OverviewThe foretaste theory argues that the strength of a tendency to act in a certain way depends on the strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. In more practical terms this theory saysThat an employee will be motivated to exert a high level of effort when he or she believes that the effort will lead to a good performance appraisal that a good performance appraisal will lead to organizational rewards like a bonus, a salary increase, or a promotion and that the rewar ds will satisfy the employees personal goals (Latham, 2007)ExpectancyThe expectancy is the belief that ones effort will result in attainment of desired performance goals. This belief, or perception, is generally based on an individuals past experience, self-confidence (often termed self-efficiency) and the perceive difficulty of the performance standard or goals. (Adair, 2009)InstrumentalityThe extent of individuals belief of performing at a particular level will lead to the attainment of a desired outcome.ValanceThe extent of attractiveness of rewards offered by an organization that must satisfy an individuals requirements retain them by prospect potential development within career organization.Example Include Do I want a bigger raise? Is it worth the extra effort? Do I want a promotion?Expectancy Flowchart(VroomV H.(1964) Work And Motivation)ValenceInstrumentalityExpectancyOUTCOMEPERFORMANCEEFFORTREWARDExpectancy Theory states that the strength of a tendency to act in a certa in way depends on the strength of expectation that an act will be followed by a given outcomes and on the attractiveness of that outcome to the individual. (Parsons and Maclaran, 2009)Expectancy Theory AT SHELL PAKISTANAt SHELL PAKISTAN the employees believe in maximum effort which leads to good performance which further results in the outcome in the form of rewards like a raise in income, promotion, performance appraisal letter etc that set up towards their personal goals.Contractual Employee ViewsThe contractual employees are also aware of this theory but they dont follow it because it has been found that their basic aim is to become a permanent employee. But becoming permanent employee doesnt entirely depend on the performance. It also depends if there is any permanent slot available. So the contractual employees are aware of the facts that even if they perform well, they cannot become permanent unless there is a slot available. So this serves as a very de-motivating factor for the contractual employees and this is the reason they dont weave to switch the job whenever they get even a slight better opportunity or a permanent place in some other organization. (Adair, 2009)EffortAt SHELL PAKISTAN, the employees are aware of the fact that if they work competently and put their efforts, they will be able to attain the task performance, as the effort expanded by them will have a positive result.PerformanceWhen the employees of SHELL PAKISTAN put their efforts, they attain the desired performance level and thus are evaluated on that ground. (Latham, 2007)Instrumentality Instrumentality is also quite high in the company as the management assigns a certain % of work that the employees have to achieve, through which, they are evaluated at the time of dispensing rewards. The % of work is in terms of yearly goals, calendar monthly goals and weekly goals.RewardsWhen the employees attain certain level of work performance gauged against the goals set at the start of th e year, they are positively evaluated and get rewards in shape of annual increment and organizational performance rewards etc.Valance The employees attach a great wrap up of value to the rewards they get. The rewards are often in the form of a praise or recognition, to which the employees attach a great deal of significance. Monetary rewards are costly and require loads of time and energy. Therefore the management is not too keen on imparting such gifts. (Latham, 2007)OTHER MOTIVATIONAL FACTORS AT SHELL PAKISTANEmployee AppraisalAt SHELL PAKISTAN, employee appraisals are conducted annually to evaluate their work related and personal performance. The process of appraisal works in various steps and the HRM department is proud to have such a system instilled in the company where no one objects to the appraisal process as its considered to be the fairest attempt of grading an employee in the company.The appraisal process is held in between the months of July and June every year. Increm ents and promotions are devised after this period that becomes effective from the month of October, the same year. Performance Appraisal at SHELL PAKISTAN is a six step approach.Step 1SHELL PAKISTAN HR department have knowing two forms named as Form 1A and form 1B to measure the milestone, target achievements that were made last year. This is done by comparing the goals set last year for each individual employee under their department. Once measured, it is sought out to what extent the company was successful in achieving its target. Also, targets are set for the next year on the basis of this measurement.Step 2In the next step, HRM department does performance analysis by distributing to departmental heads and supervisors Form 2A and 2B (Collectively known as Employee Development Report) to measure the employees capabilities on 24 different attributes and of the attribute is rated on the scale of 1 to 5 summary of these points is reflected in the table belowRatingPoint Summary1Inade quate,Not satisfactory2Marginal,Below Average3Average4Above Average5OutstandingThe 24 different attributes are divided in to key 4 sections a summary of those is listed belowEmployee Development Report (EDR)A What did the employee accomplish?Quality of workCost objectiveProfit objectiveDevelop peopleCommitment to company vision, value and corporate objectiveB Gets the job donePlanningOrganizational colloquyAnalysis