Department of Business Administration
Organizational Behavior Course Code – MGT 5130
PREPARED FOR Mrs. Rezbin Nahar Assistant Coordinator, (BBA) Department of Business Administration School of Business Studies Southeast University
PREPARED BY Ashis Kumar Debnath ID: 2009110001044 2009110001044 200911000104 4 nd 22 Bach, MBA (Reg) Semester: Fall
Date of Submission: Submission:
December 21, 2009
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Motivational Theory and Practices In an Organization
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Motivation: Motivation is the activation of goal-oriented behavior. Motivation may be intrinsic or extrinsic. The term is generally used for humans but, theoretically, it can also be used to describe the causes for animal behavior as well. This article refers to human motivation. According to various theories, motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, morality, or avoiding mortality.
Employee Motivation: Theory and practice The job of a manager in the workplace is to get things done through employees. To do this the manager should be able to motivate employees. But that's easier said than done! Motivation practice and theory are difficult subjects, touching on several disciplines.
In spite of enormous research, basic as well as applied, the subject of motivation is not clearly understood and more often than not poorly practiced. To understand motivation one must understand human nature itself. And there lies the problem!
Human Human natur naturee can can be very very simp simple le,, yet yet very very comp comple lex x too. too. An unde unders rsta tand ndin ing g and and appreciation of this is a prerequisite to effective employee motivation in the workplace and therefore effective management and leadership.
Motivation theory and practice concentrate on various theories regarding human nature in general and motivation in particular. Included are articles on the practical aspects of motivation in the workplace and the research that has been undertaken in this field, notably by 3
Douglas McGregor (Theory X & Theory Y), Frederick Herzberg (two factor motivation hygiene theory,) Abraham Maslow (hierarchy of needs), Victor Vroom (Expectancy Theory), Elton Mayo (Hawthorne Experiments) Chris Argyris Rensis Likert and David McClelland (achievement motivation.)
Abraham Maslow (hierarchy of needs)
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Frederick Herzberg (two factor motivation hygiene theory)
Victor Vroom (Expectancy Theory)
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Why Motivation is important?
Quite Quite apart apart from from the benefit benefit and moral moral value value of an altrui altruisti sticc approach approach to treat treating ing colleagues as human beings and respecting human dignity in all its forms, research and observations show that well motivated employees are more productive and creative. The inverse also holds true. The schematic below indicates the potential contribution the practical application of the principles this paper has on reducing work content in the organization.
On the other hand, as a company owner, it’s not necessarily going to be the case that all of your workers are going to be as motivated as you are. That’s only natural. You have far more to gain (and to lose) by owning the company. However, if there is little or no empl employ oyee ee moti motiva vati tion on,, you you can can neve neverr hope hope to achi achiev evee the the desi desire red d resu result ltss for for your your company.
Whilst there will be some workers who are naturally motivated, there will be others who require some kind of stimulus if you’re ever going to get them to be as productive as you want them to be. Remember the old adage – “you can lead a horse to water, but you can’t make it to drink.”
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Company Profile
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ABOUT ACI: ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the then
East East Pakist Pakistan an in 1968. 1968. After After indepe independe ndence nce the compan company y has been incorp incorpora orated ted in Bangladesh on the 24th of January 1973 as ICI Bangladesh Manufacturers Limited and also as Public Limited Company. This Company also obtained listing with Dhaka Stock Exchange on 28 December, 1976 and its first trading of shares took place on 9 March, 1994. 1994. Late Laterr on 5 May, May, 1992, 1992, ICI ICI plc plc dive divest sted ed 70% of its its shar shareh ehol oldi ding ng to loca locall managem management. ent. Subseq Subsequent uently ly the compan company y was regist registere ered d in the name name of Advanc Advanced ed Chemical Chemical Industries Industries Limited. Limited. Listing Listing with Chittagong Chittagong Stock Exchange Exchange was made on 22 October 1995.
MISSION: ACI’s mission is to enrich the quality of life of people through responsible application of knowledge, skills and technology. ACI is committed to the pursuit of excellence through world-class products, innovative processes and empowered employees to provide the highest level of satisfaction to its customers.
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VISION: •
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Endeavor to attain a position p osition of leadership in each category of its businesses. Attain a high level of productivity in all its operations through effective and efficient efficient use of resources, adoption of appropriat appropriatee technology technology and alignment alignment with our core competencies.
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Devel Develop op its its empl employ oyee eess by encou encoura ragi ging ng empo empowe werm rment ent and and rewa reward rdin ing g innovation.
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Promote an environment for learning and personal growth of its employees.
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Provide products and services of high and consistent quality, ensuring value for money to its customers.
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Encourage and assist in the qualitative improvement of the services of its suppliers and distributors.
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Establish harmonious relationship with the community and promote greater environmental responsibility within its sphere of influence.
VALUES: •
Quality
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Customer Focus
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Fairness
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Transparency
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Continuous Improvement
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Innovation
OPERATION AND MANAGEMENT TEAM: Board of Directors Mr. M Anis Ud Dowla
Chairman
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Mr. Arif Dowla
Managing Director
Mrs. Najma Dowla
Director
Mr. Waliur Rahman Bhuiyan
OBE Director
Mr. Md. Humayun Kabir
Director
Mr. Golam Mainuddin
Director
Ms. Shusmita Anis Salam
Director
Ms. Sheema Abed Rahman
Director
Mr. Wajed Salam
Director
Mr. Waliur Rahman
Director
Auditors Rahman Rahman Huq (a member firm of KPMG International)
Legal Advisor Barrister Rafique-ul Huq, Huq and Company
Financial Consultant Mr. M Sikander Ali
Principal Bankers Standard Chartered Bank The Hongkong and Shanghai Banking Corporation Limited Commercial Bank of Ceylon Limited
Management Committee Mr. M Anis Ud Dowla
Chairman
Dr. Arif Dowla
Managing Director
Dr. F.H.Ansarey
Executive Director, Agribusinesses
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Mr. Syed Alamgir
Executive Director, Consumer Brands
Mr. M. Mohibuz Zaman
Chief Operating Officer, Pharmaceuticals
Mr. Mr. Mual Mualle lem m A. Chou Choudh dhur ury y
Exec Execut utiv ivee Dire Direct ctor or,, Fina Financ ncee and and Plan Planni ning ng
Mr. Asif Iqbal
COO, Corporate Communications
Mr. Towfiqur Rahman
Director, Business Development
Mr. Priyatosh Datta
Director, Quality Assurance
Mr. Pr Pradip Ka Kar Chowdhury
Financial Co Controller
Ms. Sheema Abe Abed Rahma hman
Director, Corporate Affairs
Mr. Abdus Sadeque
Director, Marketing & Sales
Mr. Imam Ahmed Istiak
General Manager, Operations
NUMBER OF EMPLOYEES:
4027 (Four Thousand Twenty Seven)
ORGANOGRAM OF THE COMPANY:
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BUSINESS UNITS: Advanced Chemical Industries (ACI) Limited is one of the leading conglomerates in Bangladesh, with a multinational heritage. The company has diversified into three major businesses.
Pharmaceuticals ACI carries the legacy of ICI- world renowned British Multinational in providing the people of Bangladesh with quality medicines and healthcare products. Its state-of-the art pharmaceutical plant represents Bangladesh's quest for a truly world class manufacturing facility. ACI's rich heritage leads to innovative and higher value added formulations.
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The comprehensive product range of ACI pharmaceuticals include products from all major therapeutic classes and in various dosage forms like tablet, capsule, dry powder, liquid, cream, gel, ointment, ophthalmic and injectable. ACI Pharma also has state of the art plant on Novel Drug Delivery System (NDDS). It produces world class Modified Release drug and medicine to cater the requirement of pharmaceutical manufacturer of domestic and international market.
It exports high quality pharmaceuticals to a good number of countries of Asia, Africa & South America.
Consumer Brands & Commodity Products The Consumer Brands Division boasts in having an unequivocal presence in consumers' heart with the market leading brands like ACI Aerosol, ACI Mosquito Coil, Savlon. These are the persistent persistent performers performers in keeping keeping the household clean and free from germs and harmful insects.
The necessity of pure food in the minds of Bangladeshi consumers especially in the commod commodity ity food busine business ss has pushed ACI to fill fill up the market market gap by produc producing ing commodity products such as Salt, Flour and Spices. Now the customers of Bangladesh are ensured with 100% pure Salt, Spices products and Wheat products under the brand name of "ACI Pure".
ACI also represents the world renowned product range of Colgate, Nivea, Tetley, Godrej & Dabur in Bangladesh through distribution and forming joint ventures.
Agribusinesses
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ACI Agribusiness is the largest integrator in Bangladesh in Agriculture, Livestock and Fisheries and deals with Crop Protection, Seed, Fertilizer, Agrimachineries, and Animal Health products. These businesses have glorified presence in Bangladesh.
CC & PH supplies crop protection chemicals, Seed supplies Hybrid Rice, vegetable and Maize seeds, seeds, Fertiliz Fertilizer er Supplies Supplies Micronutri Micronutrient ent and Foiler Foiler fertilize fertilizer, r, Agrimachi Agrimachineries neries supplies Tractors, Power Tiller and Harvester and Animal Health supplies high quality Nutritional, Veterinary and Poultry medicines and vaccines.
ACI Agribusiness is having strong partnership with national and international R & D companies, universities and research institutions. Before introducing any product, it is elaborately tested in the laboratory and farmers field.
ACI provides provides soluti solution on to the farmer farmerss throug through h a large large team team of scient scientist istss & skille skilled d professionals.
SUPPORTIVE DEPARTMENTS: HR
ACI HR works works with with a vision vision for creating creating a work-e work-envi nviron ronmen mentt to foster foster creativi creativity, ty, innovat innovation ion and produc productiv tivity ity for achievi achieving ng busine business ss excell excellenc encee through through dynami dynamicc and dedicated people.
We believe that Human Resources are the most important asset of the organization. We identify the training needs and provide trainings accordingly to develop the knowledge and skills of our human resources. Thought Leadership and Team Building meetings are
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conducted on a regular basis. We provide an enabling working environment to unleash the full potential of the employees and a performance based career progression.
We have a value based culture where dignity of the individual is the highest priority. We believe in empowerment and delegation. We organize different social events like Family Day, Cricket Tournament, Badminton Tournament etc with an objective to strengthen the bondage among the employees.
We practice modern HR Policies and procedures for Recruitment & Selection, Manpower Planning and succession planning. We use a combination of qualitative aspects and Balanced Score Card for performance appraisal. ap praisal.
We have have attr attrac acti tive ve poli polici cies es rega regard rdin ing g car car loan loan,, grat gratui uity ty,, prov provid iden entt fund fund and and hospitalization. We offer performance bonus, leave fare assistance, festival bonus and workers profit participation fund during different times within a year. ACI is a place to learn, grow and contribute for improving the quality of life of people.
Finance and Planning
ACI Finance and Planning function is the nerve centre of the conglomerate. Being the nature of the structure, ACI Finance and Planning plays the centralized role in all kinds of financial and accounting services. Meaning it handles financial and accounting matters of not only ACI Limited but also of all of its subsidiaries supporting the mission and vision of the Group. The major areas of its activities include: Corporate Finance Treasury Insurance and risk management Costing Credit Management 15
Accounts payable management General accounting Taxation
Distribution
The company maintains strategically located sales centers in nineteen different locations across the country. It has developed an advanced distribution system through its more than than 300 skill skilled ed and train trained ed manpowe manpowerr and a large large fleet fleet over over eighty eighty vehicles vehicles.. The distribution system is capable of handling continuing volume of diverse range of products from the various businesses.
The company's distribution centers are highly streamlined, computerized and automated. We are capable capable of maintainin maintaining g a cold chain for some specialized specialized range of products products such as vaccines and insulin. The combination of this advanced function and multidimensional capabilities made it possible to handle hundreds of products efficiently.
Commercial Department
Commercial Department of ACI is one of the most vital functional departments of the Company which deals with the supply chain activities of ACI. In order to keep all the busine businesse ssess runnin running g flawle flawlessl ssly, y, the dedicat dedicated ed and hard hard workin working g employ employees ees of this this department department maintain a good liaison with the customers, customers, both national national and internatio international. nal. The Commercial Department is consistently achieving the best prices for the products that we purchase, ensuring enormous amount of cost savings for the company. It offers invincible professionalism and expertise in the entire commercial activities of ACI.
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MIS Department
MIS department of ACI ensures the overall IT related supports for the company. This department manages a smooth operation of software's, hardware trouble shooting and busine business ss databa databases ses relate related d to sales sales and invent inventory ory.. The MIS depart departmen mentt consis consists ts of knowl knowled edge geab able le and skil skille led d prog progra ramm mmer erss and and soft softwa ware re devel develop oper ers. s. MIS MIS provi provide dess customized report and data analysis to the management to facilitate effective decision making
Training Department
Traini Training ng activi activitie tiess of ACI is focuse focused d on transf transform orming ing its its human human capital capital to achiev achievee business excellence by increasing the bandwidth of ACI workforce. To win present and future challenges we identify knowledge and skill sets that are pivotal factors and we design a variety variety of programs so that achieving such success by using creativity, creativity, agility, agility, flexib flexibili ility ty,, skill skill divers diversit ity y and IT technol technology ogy becomes becomes a custom custom.. We scan scan extern external al environment for comparing industry practices, benchmark best practices and implement competency management programs to offer outstanding services to our valued customers. Enormous and spontaneous shared efforts are made with the strategic intent of achieving excellence in delivering customized services to meet the ever changing development needs of the human resources. We design strategic learning roadmap consisting tailored learning strategies for each of our employee clusters of the business divisions, based on a shared vision, to make us a proud member of a learning organization. We adopt best tech techno nolo logy gy
base based d
modu module les, s,
meth method odol olog ogie ies, s,
faci facili liti ties es,,
in-h in-hou ouse se
and and
exte extern rnal al
facult faculties ies/t /trai rainers ners to ensure ensure the best best return return from from human human develo developme pment nt invest investmen ments. ts. Corporate Values of ACI are embedded in the process of designing, developing and delivering each activity of Training Department throughout the organization.
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BUSINESS POLICY: Quality Policy
ACI's ACI's missio mission n is to achiev achievee busines businesss excell excellenc encee throug through h qualit quality y by unders understan tandin ding, g, accepting, meeting and exceeding customer expectations.
ACI follows International Standards on Quality Management System to ensure consistent quality of products and services to achieve customer satisfaction. ACI also meets all national regulatory requirements relating to its current businesses and ensures that current Good Manufacturing Practices (cGMP) as recommended by World Health Organization is followed for its pharmaceutical operations. 18
The management of ACI commits itself to quality as the prime consideration in all its business decisions. All employees of ACI must follow documented procedures to ensure compliance with quality standards.
The pool of human resources of the company will be developed to their full potential and harnes harnesse sed d thro throug ugh h regu regula larr trai traini ning ng and and thei theirr part partic icip ipat atio ion n in seeki seeking ng cont contin inuou uouss improvement of work methods
Environmental Policy
ACI is committed committed to maintain the harmonious balance of our eco-system eco-system and therefore constantly seeks ways to manufacture and produce products in an eco-friendly manner so that the balance of nature n ature remains undisturbed and the environment remains sustainable.
In pursuit of this goal, ACI will Comply fully with all local and national environmental regulations.
Conserve natural resources like water and energy for sustainable development, and adopt environmentally safe processes.
Ensure appropriate treatment of all effluents prior to discharge, to prevent pollution or degradation of environment.
Ensure appropriate communication and cooperate with internal and external interested parties on environmental issues.
Create awareness on environmental issues among our employees and suppliers. 19
Adopt modern waste management technology.
MARKET: Domestic market
Being Being a develop developing ing countr country, y, the pharmaceut pharmaceutica icall market market and at the same same time, time, the pharmaceutical industry of Bangladesh is growing. In this growing market, ACI has been able to maintain its growth through its innovative marketing strategies.
In Bangladesh, ACI introduced the concept of quality management system by being the first company to achieve ISO 9001 certification that reflects its commitment to quality in every aspect of business.
ACI covers the health care community of whole Bangladesh based in both urban and rural markets, through its 18 strategically located depots. 20
International market
To fuel the continuous growth of ACI, the company has started exploring international markets. The quality of ACI products, strengthened by its ISO 9001 certification, has brought immediate success in Sri Lanka, Yemen, Myanmar and Vietnam.
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Employee Motivation of ACI Ltd.
METHODS USED TO COLLECT DATA: I have used questionnaire containing 26 questions related to various control components to collect data. And for this I have interviewed 110 employees of ACI Bangladesh Ltd. Relating to the matter of interest. The sample questionnaire is given at the end of the term Paper.
ANALYSIS OF THE DATA: To Sum up the questionnaire, in terms of mean, standard deviation and percentage have been used to analyze the data.
FINDINGS: The analysis of data helps me to draw the following findings:
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1)
Level of autonomy.
Empowering employees to have some decision making capabilities is a great way to provide motivation. Offer staff the tools to utilize their talents and wan t some responsibility. Most people want to have some independence as they make the day to day decisions that may arise.
Some employees who are micro-managed get frustrated and as a result become demotivated. By offering some autonomous choices, employees feel some ownership in their jobs and as a result want to succeed. Remember to always remain a source of support that people can turn to for advice.
2)
Spec Sp ecif ific ic goa goals ls and and off offer er fee feedb dbac ack k usin using g posi positi tive ve rei reinf nfor orce ceme ment nt..
Employees want to hear they are doing a good job. If they are achieving great results tell them. Even if they are having some difficulties, some constructive criticism through feedback goes a long way.
3)
Inte Integr grat atee roo room m for for grow growth th on the the prom promot otio ion n sca scale le
Most people want to do better in job and like to feel as if they are contributing. Those employees deserve personal growth and promotion to continued development.
4)
Job enrichment
Some staff members bored out of their minds with the redundancy of the same tasks day in and day out. Provide a little variety by rotating responsibilities or changing the monotony in the office environment by introducing innovative ways to set about tasks.
6)
Profit sharing
There are some employees who prefer to feel a sense of ownership; this also gives them a direct reason to want to see the company succeed because they are financially invested. As a means to invigorate many companies offer profit sharing as a reward for strong motivation in a job well done. 23
7)
Offer Fl Flex-time be benefits
Many employee want Alternative work schedules. Sometimes employees flourish on different kinds of work schedules as opposed to the traditional (and often monotonous) 9 to 5 schedule.
80%
20%
RECOMMENDATIONS: Level of Activity
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Check you understand employee’s needs.
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Ensure employee doesn't work too much.
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Try to fix the right person at the right place
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Avoid unnecessary distractions
Structure
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Make sure that the goals for a task are set at a high level, avoiding too much detail d etail
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Try to allow a degree of flexibility in the way they approaches tasks provided any objectives and measures are met.
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Equality in the organization.
Competition & Material Reward
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Provide Performance bonus.
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Increase Salary and Promotion scale.
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Check what constitutes ‘fair remuneration’ for each employee
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In as far as is possible, ensure that salary, bonuses and other financial rewards
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are awarded equitably.
Fear of Failure
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Avoid setting objectives that are so unrealistic that employee unlikely to succeed no matter how hard they tries.
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Provide employee’s sufficient support and that they do not feel exposed to the likelihood of failure
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Encourage to overcome any personal problems or issues
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Ensure Job security
Personal Growth
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Support and authority to make decision necessary for accomplishing their assigned tasks.
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Give opportunity to exchange employee’s views freely in the workplace.
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Questionnaire of Employee Motivation in ACI Ltd.
Name:……………………………………………………………………………………… Designation:……………………………………………………………………………….. Department:……………………………………………………………………………......
Please provide your honest views, avoiding overly positive and overly negative feedback. DEMOGRAPHICS 1.
Gender
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Male 2.
Age a) b) c) d) e)
Les Less tha than n 2020-20 20 21-30 31-40 41-50 Above 50
3.
Educational Level a) PhD b) b) Post Post Gradu Graduat atee Leve Levell c) Gradu raduat atee Leve Levell d) Inte Interm rmed edia iate te Level Level e) Other
4.
How How Lon Long g have have you you wor workin king g at at thi thiss Org Organi aniza zatio tion? n? a) Less Less than than 6 mon month thss b) b) 6 mon month thss- 1 yea year r c) 1 yea yearr-2 yea years rs d) 2 yea years rs-3 -3 year yearss e) Above bove 3 year ears
WORK ENVIRONMENT
5. 6. 7.
8.
Female
Strongl y Agree
Agree
Neutral
Disagre e
Strongl y Disagre e
I am treated with dignity and respected by management I fully utilized my skills and abilities in the organization Work assigned to me is interesting, rewarding and challenging and give me a feeling of personal accomplishment. Organization provides an environment where diverse individuals can work together effectively and happily.
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Organization is responsive to change and encourages change COMPENSATION within the organization in order to stay effective in a changing 16. environment. What is your pay level? a) 1000 100000-20 2000 000 0 a great places 10. Organization b) b ) 2000 200000-30 3000 000 0 integrity emphasis on honestly, c) ethical 3000 300000-40 4000 000 0 and behavior. d) 4000 40 0000-50 5000 0 expected The amount of 000 work to reasonable. e) doAin bov bomy ve job 50 500is00 11. Employees have the support and authority to make decision necessary for accomplishing their assigned tasks. 12. All employees are treated fairly regardless of age, race, gender, family status, veteran status, national origin, disability, personality, thinking style or sexual orientation. 13. We can exchange our views freely in the workplace. 14. Work environment is overall very comfortable, friendly and cooperative. 15. I am highly motivated with the current working environment of my organization.
9.
Strongl y Agree
Agree
Neutral
Disagre e
Strongl y Disagre e
17 Overall, the employee . benefits I receive meet my needs. 18 I understand the value of the . total compensation (compensation+benefits) package the Organization delivers to me. 19 Organization pays for . performance 20 I receive good medical . allowances.
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21 . 22 .
23 .
24 . 25 .
Organization is providing me with transport allowances or facility. The overall benefits given to me by organization provide good security for me and my family. Compared to other organizations in the industry my organization has an excellent compensation and benefits package. I am satisfied with my compensation & benefits package. How would you rate the quality of service you receive when you have a benefits issue, question or claim?
COMMENTS: 26. Any Additional Comments? (Feel (Feel free to explain the reasons reasons behind your answers to these questions and/or tell us what specific things could be done to enhance your Motivation). If you have no additional comments, please draw an X across these lines.
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Signature & Date
CONCLUSION: A strong team needs individuals who are dedicated to giving their best at work. Highly self-motivated, committed, ambitious employees give the most to their company and get the most from their work. But if you are lacking employee motivation in the workplace the effects can be dramatic. Low team morale, lack of initiative, lack of energy, mistakes and high staff turnover are just some of the clues that motivation is an issue.
People are the key resource in any organization. Everyone in every organization – no matter what the product, service or their position – has to achieve results with and through the efforts of other people. My main premise is that in order to work effectively you need to develop insight into what motivates individuals and teams to maximize their performance. Armed with this fresh perspective, you can then manage your interaction with others to ensure that they work with a sense of commitment rather than merely complying with the minimum needed to get by.
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APPENDIX: Books:
Robbins, Stephen P.; Judge, Timothy A. (2010), Organizational Behavior , Pearson Education
Web: http://www.aci-bd.com/ http://en.wikipedia.org/wiki/Motivation http://www.motivationexpert.co.uk/why-employee-motivation-important.html http://www.hrvillage.com/human-resources/employee-motivation.htm http://www.businessburrito.com/ http://www.scribd.com/doc/6171129/Questionnaire http://www.oppapers.com/essays/Motivation-Theory/162640 http://www.helium.com/items/754663-tips-for-motivating-employees
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