Introduction background:
Motivating and retailing employee in the current globalized world is altogether a assorted ball game as compared to about ten years ago so much that retaining employees has almost turn into the same with an employee motivation an employee who is motivated will be pleased with his job. More dynamic to stay with the organization. Therefore, a main matter to tackle employee custody is the habits and means of employees.
It is declared that employees do not depart a company because it is bad in its place they leave the organization with a wish that they get a better working atmosphere. This project report will find out the processes and structures on the foundation of which ufone gives dependence to their employees, and what are the motivating factors that direct to employee retention at ufone.
In toady's business world the most major factor is the inspiration of the workers. In order to keep our employees we have to keep on spirited and give a sense of belonging to our employee in order to give confidence to them.
In this fast growing competitive planet motivation is the word used to portray the force that impels an individual to work. A really motivated boss is one who desires to work. If employee knows what make stronger and weaken the motivation level of their employees, they can help their subordinates find more pleasure in their jobs. Employers also fancy to know that what would accurately motivates their staff help them perform improved for best leadership results which would detain have a good effects on their teams. As in human resource management prose, motivation leads to happiness of sub-ordinates from their jobs and help them to carry out up to the superior's hope. So the aim is to communicate this hypothetical likely with the way leadership is accomplished in ufone and as a result how would employee job contentment level get better which would lead to employee retention.
EMPLOYEE RETENTION:
Employee retention is a significant factor in an organization's aptitude to attain constant spirited benefit over longer time. In addition this feature a breakdown to retain capable employees lead to a variety of other problem, and a converse condition has convinced compensations.
The most vital factor in a firm's long term achievement is retaining its the majority brilliant employees. In the engineering and business market, employee retention is particularly taken gravely since the job market can be quite violent for candidates to candidates. The major issue in retaining workers includes, business brand identity, employee intent to stay, association culture, self-worth, want for attainment.
Employee preservation involves taking gauge to support employee to stay in the business for the greatest phase of time. Business facing a lot of troubles in employee custody these days. Hiring familiar people for the job is vital for an employer. But retention is even more significant than hiring there is no lack of opportunities for a brilliant. There are may organizations which are searching for such employees. If an individual not happy by the job he is doing , he may change over to some other more appropriate job. In today's atmosphere it becomes very vital for organizations to retain their employees.
The top organizations are on the top because they worth their employee and they know how to keep them glued to the organization. An employee keeps on and leaves organization for some issues.
The reason may be personal or professional. The reasons should be implicit by the employer and be supposed to be taken care of. The organizations are becoming conscious of these reasons and adopting many strategies for worker retention.
Many organizations depend upon marginal constituencies for serious capital. Resource reliance, institutional and stakeholder theories propose that awareness of peripheral stakeholders (e.g possible employees) influence firm's performance. (Pfeiffer and salanick 1978; Dimaggio and Powell,1983; Freeman, 1984)
The spirited world we are alive in, approximately all the organizations spend a lot on their employees' in terms of initiation, guidance mounting, retaining and maintaining them in their organizations.
Therefore, managers at all expenses have to try to boost employee's pace of retention. Mainly in knowledge-based economics, workers facts, skills and experiences are significant wealth that help organization attain and maintain aggressive advantage (Hall, 1993; Hitt, 2001; Kogut and Zander , 2003) .
Inside developed spirited compensation is more difficult to reproduce, companies are ever more focusing on within-company information making and growth of learning processes. Being striking to budding employees helps firm appoint and keep the best human capital on hand.( Peteraf and Burney, 2003) There is no typical frameworks for accepting employee turnover process as numerous interpretations has been found to be helpful, Therefore, there is a need to build up a fuller indulgent of the employee turnover, more particularly, the sources what determines employee turnover belongings and strategies that managers can put in place reduce turnover. With globalization organizations have to carry on producing concrete products and providing services that are based on strategies created by employees. These workers are very significant to the organization since they value the organization has for them is basically elusive and are based on strategies created by the employees and not easily simulated (Meaghan, 2002) Therefore, employer have to distinguish that their employees are main donor to the efficient achievement of the organization victory. Employer should control the retention rate of employee for the benefit of organization. (Abbasi 2000).
Problem identification:
One of the most usual problems which companies nowadays are facing is to keep their brilliant employees. Office politics, strain, wages, employee and/ or manager conflict, or the permit of improved job opportunities can hold up an employee to depart an organization. The reason for an employee's exit can be several.
In some instances, the conclusion to leave an organization may be a hard one. At other times, the decision to leave is not as demanding. On rare occasions a person may walk away from their employee due to a disagreement of interest.
The term commitment and devotion does not exist in the fast rising telecom industries. As soon as a person finds a good chance. He tends to depart the job and take another path in order to growth in his career and get it professional/ vocational needs satisfied.
shapeless interviews have been done with employees of Ufone. It came to our knowledge that the employees in ufone are in front of a lot of troubles due to which they were demotivated hence moving their result. One of the managers we interviewed said that there is no admiration/recognition of work. He said that the mistakes are usually criticized rather than letting the other person know the right way to do it,. Handing over of authority is not a very frequent thing. One of the employees supposed that if we were given the power we would act in the best anxiety of the company. There is no concept of having entertainment. The employees get scorched because of the strict environment. Another broad-spectrum reason, which was derived from the employees when interviewing, was the salary or reward. Most employees who have been in the same organization for a while expect to be remunerated for their hard work and knowledge.
Compensation can be in the form of an increase in salary or a bonus. If people believe they are not being rewarded or considered for an increase, they often consider shifting to someplace else where they can receive a higher salary.
A hostile work environment is also one of the major reasons that make employees feel unmotivated. Employees often consider moving when they feel that they are treated unfairly or feel that their work environment is not safe. Instead of confronting the situation that is disturbing them, they avoid it, leading to greater dissatisfaction. This also makes companies unable to retain their employees.
Problem Statement:
In this research study, we will focus on the motivating factors which are not being implemented in Ufone due to which the company is facing trouble in retaining its employees
Research Question
What are the motivating factors that will lead to greater employee retention at Ufone?
Rationale of the study:
It is vital for us to analyze the significant role played by an organizations capability to hold on to competent employees for developing distinctive competencies for an organization as is essential to develop an understanding of the relationship between the motivation and its ensuing impact on the enthusiasm of the employees to stay with the organization. The fundamental reason behind studying the Human Resource Management Practices (HR) and Employee Retention in relation to level of motivation of employees at Ufone is to evaluate the importance of these aspects for organizations.
This report can be helpful for different organizations and employers who want to be able to retain talented employees but are faced with low employee turnover.
The Telecom industry is expanding vastly in today's world and is currently the 2nd largest sector in Pakistan. In order to understand the sector better, it is imperative to conduct research on telecom related topics as that will also help to increase the revenue generated from this sector and that will, in turn, have a positive impact on the economy.
Naisbitt suggested that motivational implications are very important; most of our economy continues to shift from manufacturing to service and information jobs. In the intense battle to outdo each other, organizations with distinctive competencies do better than their competitors. An organization that wants to surpass others uses every possible mean available in an attempt to gain and maintain a competitive advantage over its competition.
In order to be able to retain their competent employees, all companies want to be able to discover the motivating factors that lead to greater employee retention. The present research focuses on exploring and analyzing the motivating factors that lead to employee retention, which consequentially effects the over all performance of the company.
Research Objective:
To investigate factors that lead to employee retention.
To analyze if the working atmosphere plays a significant role in the motivation process
To assess the impact of recognition of work
To analyze the amount of influence training has when it comes to encouraging the staff
To find out what challenges and bottle necks are preventing Ufone from increasing employee productivity and in retaining staff.
To discover the effect of motivation for employees in their decision to stay with the organization.
To judge whether increased delegation of authority and empowerment gives employees a greater sense of responsibility
To explore if internal and external factor would help increase the motivation process
To analyze the amount of influence that motivation at Ufone has on its employees.
Scope of the study:
This study is limited to the motivating factors that would lead to employee retention at Ufone. In this research, primary data is gathered through interviews and questionnaires survey from the employees of Ufone and some data is obtained from sources such as published articles and reports related to employee retention. This report can be helpful for Ufone as it can bring into light the problems and factors that lead to employees feeling unmotivated. This report can also be useful in shedding light on solutions which can help a company, especially Ufone, retain its employees.
CHAPTER 2
LITERATURE REVIEW:
Motivation, as seen in the business world, is the word that describes the force that drives an individual to work. It can be explained as the personal drive to act in order to satisfy one's needs. It comes from within an individual. It creates a drive to act, which may be influenced by some external stimulus, such as the work environment. An employee who truly wants to work can be described as being motivated. Employees can usually perform more effectively if they are aware of the factors that strengthen and weaken their motivation. That can also lead them to find more satisfaction in their jobs. Employers also want to know what motivates their employees so that they can encourage continued peak performance (Halloran, 1986).
A lot of research has been done on the study of motivation and it can be traced back to the writing of the ancient Greek philosophers. Hedonism has given a basic assumption in the prevailing economic and social philosophies of Adam Smith, Jeremy Bentham, and John Stuart Mill who explained motivation in terms of people trying to maximize pleasure and minimize pain.
A significant factor in an organization's capability to attain a sustained and constant competitive advantage over a period of time is employee retention. Companies that are not able to retain their workers face numerous other problems. Being able to retain competent employees is critical to a firm's long term sustained success. Employee retention is extremely serious especially in the engineering and business markets, since such job markets are tight and competition is very intense. The telecommunication sector is also one of the modern day sectors which are faced with intense competition and new emerging markets, leaving no room for error. The main factors in retaining employees include organizational culture, self-esteem of employees, corporate brand identity, intention of employees to remain, the need for achievement and other motivational factors.
Relationships of a company that are developed and encouraged, promote sustained sponsor ship to the business as customers and clients usually do business with a company because of its people. Employees build relationships for a company, and when he/she departs from the company, the relationships are cut off, leading to a potential loss in customers.
The cost of turnover increases manifold if employee retention is low. While it is not easy to calculate correctly the cost of turnover (including hiring costs, loss in productivity and training costs), the cost of employee turnover increases a company's expenses by hundreds of thousands and it is often quoted by industry experts to be 25% of the average employee salary.
An employee who leaves takes with him precious information about the organization, current projects, customers, strategies and past history. It is even more crucial and critical if the employee leaves to go work with a competitor. A lot of time and money is spent on every employee in anticipation of returns in future and the investment is not realized when the employee quits. When an existing employee leaves, a lot of time is lost in hiring a fresh employee and then training him/her. This becomes an unnoticed additional cost to the company. And even after training the new employee, the company cannot guarantee the same efficiency from the new employee. And if the company cannot assure employee retention, the same process will be repeated over and over again unless the company works on retaining its employees.
Theories of motivation:
Individual theories can be classified as in lieu of either content or a process loom to motivation. Content approaches focus on identifying explicit motivation factors within person. Process theories focus on linking how behavior is motivated. Four vital content approaches to motivation are:
Mallow's need hierarchy
Aldermen's RRG theory
Hertzberg's two factor theory
McClelland's learned needs theory.
Each of these four theories has had an impact on employee retention.
Maslow's Need Hierarchy:
Maslow stated that needs are set in a hierarchy. The low-level needs are physiological, safety security, belongingness, and social and love needs. The maximum level needs are the regard and self-actualization needs (Maslow, 1954).
Goal setting:
Locke estimated that goal setting is a cognitive process of some rational utility. His view is that an individual's alert goals and intentions are yhe prime determinants of actions (Locke, 1968).
It has been noted that one of the usually observed characteristics of purposeful behavior is that its continuing method till it reaches its termination that is once a person starts something (e.g. a job, a new project), he or she pushes on until a purpose is achieved. 1962).
Karren, Mento and steel have confirmed that having goals improves performance. Goals act as motivators, and research in both practical and investigational settings shows that hard goals produce higher level of performance than either no goals or simply commands to "do your best" (Locke, Shaw, Saari and Latham, 1981)(Tubbs, 1986).
Motivation: Applications and Techniques
There are a variety of applications, techniques of motivation, which contain vertical job loading, job enrichment, job rotation, delegation and participation encourages motivation.
Vertical job loading:
According to vertical job loading when jobs are altered, they consist of larger areas of task. Jobs are modernized so that they will become internal assistant more fascinating. The worker is motivated because the job is more challenging and more significant. Vertical loading implies that employees should be gives as a large amount responsibility as possible. They should be expectant to be responsible for their work, with little control.
Job enrichment:
The modem attention in the quality of work life developed though an emphasis on job enrichment. The term was explained by Frederick Herzberg based on his research with motivators and preservation factors. Job enrichment means that additional motivators are added to a job to make it more worthwhile, although the phrase has come to apply to almost any effort to civilize jobs. Job enrichment brings many benefits.
General result is a role fortification than encourages growth and self-actualization. The job is built in such a way that internal motivation is encouraged. Since motivation is increased, performance should get better, thus provided that both a more human and a more productive job. Negative effects also be likely to be reduced, such as turnover, deficiency, complaint and idle time. In this way both the workers benefits (Davis and Newstrom 1985)
Job rotation:
In job rotation employees are shifted from one job to another for removing the repetitiveness. In the course of job rotation employees learn new and attractive, and gain new experiences. But if employees are rotated from one job to another only after the smaller period of time, then it becomes stressful and irritated for employees because they are not completely aware of how to go about it.
Delegation:
One way in which to satisfy for achievement, recognition, and responsibility is to give employees a mission and the power to take it out. power is one of the most important positive motivators delegated to employees. If workers are permitted to have it, they may be keen to take on new task. Some leaders, however are scared to award power because an employee may make a deprived decision that would make uncomfortable the boss or the administration. The personnel manager should look for a new way to expand, rather than to limit, the employee's range of actions. Keep in mind that some supervisors do not use their time intelligently because they are not delegating sufficient duties to their employees.
Motivators:
Motivators are those things, which encourage an individual to perform. They may comprise of higher pay, a impressive title, a name on the office door, and a host of other things that give people a motive to execute. To be sure, while motivations replicate want, they are the apparent rewards, or incentives, that hone the force to please these desires;. They are also the means by which contradictory needs may be resigned or one need may be accentuated so that it will be given precedence over another.
A manager can do much to hone motives by establishing an situation constructive to convinced drives. For example, people in business, which has developed a standing for fineness and high quality, tend to be motivated to add this reputation.
A motivator, then, is something that influences an individual's behavior. It makes dissimilarity in what a person will do. Visibly, in any organized enterprise, managers must be worried about motivators. People can-often satisfy their wants in a assortment of ways. A person can, for example, satisfy a desire for association by being active in a social club rather than in a business, meet economic needs by performing a job just sufficient to get by, or please needs by spending time functioning for a political party. What a manager has to do off course is to use that motivator which will lead people to perform successfully for the enterprise that employs them. The world is packed with tedious jobs. Managers must rely on incentives to give confidence to employees to perform their jobs well because many jobs cannot be made satisfying. But managers can have a great control on the design of even the dullest jobs. Preferably, jobs should be prearranged in order to enlarge the employee's capabilities. Workers can be motivated most effectively when managers allow employees to assume responsibility and to particision making(Halloran, 1986)
Motivation barriers:
When we have an inner need and choose deliberately, automatically to satisfy that need, we may show behavior to cut tension. Often, barriers can discourage us from reaching our goals.Such barriers origin irritation, tensions, and strain. The more difficult the barrier is to conquer, the more clear our behavior becomes. Some examples of external barriers encountered by employees are: unfriendly supervisors, dull jobs, and financial insecurity. Some internal barriers that frustrate employees are: poor work habits, dysfunctional personality or poor aptitude. We may even recognize imaginary barriers because of our own individual perceptions.
Stress and Tension:
Not all tension and stress should be considered as negative motivation. To do our best work. We all need to produce some stress and some pressure. Many causes of strain, however, create while off the job and are likely to upset it. They result in inferior and poorer production, hard relationships with other employees, inadequate interest and attention, memory lapses lateness and absenteeism. Horn suggested that 80% of the emotional problems of employees are of this nature; yet the good manager must be equipped to help with troubles no matter what their case {Horn, 1993). In most cases, the person, not the job, creates tensions. Many managers are finding that accountability id strong. They like their jobs and get along fine with their connections and families, and their families assist with their everyday jobs. No longer is it understood that in order to be a victorious manager or executive you must accept wakeful nights, poor consumption habits, ill health, and a give up of family life. Some promotions can create additional stress that can spoil a person's job performance and overflow into his or her home life. Other people greeting and flourish on serious stress and pressure at work. Some know when they have had sufficient and reject a progression, which often confounds people in management. Most people want the endorsement, but do not want the additional headaches, strain and responsibilities that escort it (Horn, 1993).
MOTIVATION:
IN simple words are believed to be "hard work" and its mode are both, extrinsic and intrinsic. The extrinsic motivation is triggered from the environmental factors where as the intrinsic motivation is believed to be due to the cognitive developmental and mental strength.
INTERNAL MOTIVATORS:
The factors that internally motivate the employees during their job. If company facilitate his employee, give incentives and provide friendly working environment then employee will work harder. Halloran revealed his findings saying that little acts and steps of kindness including material benefits to provide relief to the employees really contribute to ha organizations will of better input and serve to be the internal motivators.
EXTERNAL MOTIVATORS:
A healthy environment is found to be a strong and time tested external motivator. The only free adhering to it is the possible lowering of internal motivation. It is said that a good or noble deed is its own reward.
Now, making a material reward an integral condition for better performance every time, actually threatens the volunteer goodness in people and their approach may also render materialistic in this way.
In one survey 1,533 workers rated the importance of various kinds of work angles and internal motivation led to list. Nature of work, suitable level of information, mentoring and equipments and finally the certain degree of freedom to proceed and good salary make chemistry for efficient performance.
On the other hand, absence of the any or half of the said factors surely lowers the performance graph. Poor hygiene factors which include intern personal relation, money, status, security, policies and working conditions all create upsets.
Deci and Ryan have advocated such congenial environments which offer support and promote competition, challenge and autonomous behavior and in turn lead to sound internal motivation and condemn the threatening factors such as deadlines, surveillance and conditional rewards.
Whereas certain researches such as Daniel and Howard count "organizational structure" as key aspect to stimulate internal motivation. Reduction in internal motivation generates the upsets like fragile quality, more was tag of resources both human and material sense of detachment among workers. It is generally believed that a task characteristic and individual's attribution or seriousness towards the task also come a considerable chance.
One group of thought favors and recommends "use of computers" as an amplifying factor for internal motivation. At the sometime behaviorist declare that external motivation promotes behavior whereas lack of apparent reinforcement has no significant effect on internal motivation.
INCENTIVE SYATEM FOR MOTIVATION:
For all job stratum, incentives work as strong productivity promoting factors. These include bounces, maturity curves, merit rises, pay for knowledge skills etc. Smith and Walky affirm the "conditioned or controlled system" mode of running an organization for its better growth and productivity in terms of incentive. The five basic incentives yet identified include;
Advancement
Hours of work
Salary
Security
Supervisor relationships
As explored out of a group of 284 sounds productive occupations ranging from unskilled manual labor to the profession and the findings were further approved not only by the light of Australian companies but also by either gender as well.
DEVELOPMENT:
The further research to explore the interdependence of motivation and employee retention, the decided sample size will be 250 respondents from Ufone offices in Islamabad. The respondents will belong to both sexes where as the informant to collect the information will be a well designed questionnaire.
INSTRUMENTS AND MEASURES:
This study will compose of questionnaire, which will be spread amongst the diverse workers of Ufone. This questionnaire is composed of 21 items. We are using the Likert to measure the responses of employees and to collect the information with one single person who is strongly satisfied and five being strongly dissatisfied. Starting questions are demographic and then nineteen closed finished questions will be compose of working atmosphere, inducement and empowerment.
PROCEEDURE:
As we have the examining nature of all this research like we have questionnaire, these questionnaire will be distributed between 250 workers in Ufone, all over Islamabad offices. The key purpose in arranging this wide research study is to find out and evaluate the inspiring factors that help Ufone in keeping its employees on the job and improve its performance.
The questionnaire will be distrinuted among different company's offices. The people by whome these questionnaire will be filled are,
Top management
Middle management
Newly graduates
The main purpose is this, we are able to understand what are main inspiring or motivating factors that will make them retain or they stay longer in the company.
The analysis of motivating factors that can lead to employee's retention at Ufone.
QUESTIONNAIRE:
1. Gender â-¡ Male â-¡ Female
2. Age â-¡ 18-27 â-¡ 27-42 â-¡43-65
WORKING ENVIRONMENT:
3. Are you concerned about what people think about your work?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
4. Do you feel if there is a point in working and no one knows about it?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
RECOGNITION:
5. Are you strongly motivated by the appreciation you can earn from other people.
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
6. Do you think it's important to tell people how you are per forming.
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
New Tasks and Goals:
7. Do you like take difficult tasks or assignments that are difficult to attempt and you never have done before.
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
8. Are you motivated enough to help out other people which would lead to good results.
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
TRAINING:
9. Do you feel that knowing your work before hand does not stretch a person's capabilities.
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
10. Do you feel that it is important for the employee of the company to attend his field relevant workshops and courses?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
WAGES:
11. Do you prefer fixed salary job or commission based jobs.
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
12. Do you feel salary plays a vital role when it comes to performing the job and delivering results.
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
EMPOWERMENT:
13. Does empowerment or delegation of authority leads to motivation.
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
14. If you were given to decision making authority, would you feel more secure and committed to your job?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
INTERNAL AND EXTERNAL MOTIVATORS:
15. In your opinion does new environment and job rotation leads to motivation?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
16. Do you feel that extracurricular activities, health and fitness club helps in increasing the motivation level of employees?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
COMPANY:
17. Do you feel other companies are not as good as the one you work fort?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
18. Do you gladly do whatever the company tells you to do?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
19. Do you often make sacrifices for the greater good of your company?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
20. Does your company fulfill your professional/vocational needs?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
21. Would you spend the rest of your career with current organization?
Strongly Agree
Agree
I don't know
Disagree
Strongly Disagree
