Money Is Not The Only Motivator Management Essay

Money Is Not The Only Motivator perplexity EssayWe be presenting our term project which was chosen from one of the topics standd by the course instructor. We atomic number 18 pleased to present our subject country on topic Money is not the Only motivator This research gave us an excellent circumstances to under fend for the concept of want and its applications in practical world. We chose Pakistan landed estate Oil as our physical composition for our research.We would oerly like to thank all told our respondents, who were kind enough to answer our questionnaires and gave their valuable time in directing and informing us about their perception on our topic. We acknowledge all of your help and support for this research.We really thank our instructor Ms Unzela Hasni for her support and trust in our capabilities.Yours Sincerely,Syed Ahmed Asad (12131)Bilal Jawaid (12093)Riaz Ramzan Ali ((10712)Abdul Moiz Mughal (11540)Maryam Abbasi (11869)AcknowledgementWe begin by expressi ng our gratitude to our Lord, the cleric comp allowelyah without Whose Guidance and Will, all is impossible.We be besides highly thankful to our teacher and instructor, Mr Unzela Hansni, whose teaching has given us great knowledge and a peek into the professional world of Human Resource Management and its dissimilar aspects. This report has sharpened our ability to interpret the concepts and methods with greater sensibility.Executive SummaryPakistan State Oil is the starring(p) oil comp whatsoever in Pakistans energy sector with largest retail outlets to serve all industries and consumers of Pakistan. PSO takes plea authentic to act tradition of excellence and it is full committed to meet energy needs of future. PSO is one of local organization that holds an award for attracting employees because of their strategic kind-hearted resource practices.PSO takes it human resource commission as the around valuable department of their go with because they treat their employees a s their most signifi nookiet asset.PSO along its stiff compensation be after (monetary) holds m many(prenominal) early(a) techniques and methods of modern era to keep employees engaged and make sure that they are strain for the attainment of social clubs goal. In this report we surveyed PSO to collect valuable tuition on various motivational aspects and methods employ by concern to make sure employees feel interested at piddle and oblige a sense experience of belonging to the organization. We learned various techniques such as consummation management, motivational surveys, employee awards, recreational facilities , develop and development and others.HypothesisH0 PSO is victorful in motivating its employeesH1 PSO is not successful in motivating its employeesIn our research we assumed that PSO is one of the most successful domestic organizations to keep a do actforce in Pakistan, so to test our hypothesis we went to the organization and interviewed 2 top managers an d got questionnaires filled from 12 employees colligate to senior , middle and lower level management positions. Our hypothesis is to prove whether a motivated base of employees help individualistics and air to achieve traffic expiation, productive employees, more realise, self development and an effective work surround ( husbandry).MethodologyWe used research based methodology to work on this report. Our research was conducted in several steps that includePlanning which topic to chooseChoosing the OrganisationCollecting secondary entropy from different sources such asHuman Resource BooksInternet denominations from Harvard line critical reviewNext we knowing a questionnaireSite visit (PSO)Get our questionnaires filledInterviewed two managersAssembled primary and secondary data inaugural draft report to check plagiarismFinal reportINTRODUCTIONPSO OverviewJust like any other matched occupation, PSO is a challenging petroleum products marketer, supporting foresight, quick judgment and hard work and acumen. At PSO, we boast been make new grounds since our situation in the market. By introducing a competitive product portfolio, aligning our incorporated social responsibility, putting up up storage depots at far-flung areas, presenting relative marketing techniques, energizing industrial institutions, supporting the surface areas defense forces, ensuring customers blessedness and provision of new clientele challenges, PSO has been setting the benchmark for other oil marketing companies during the 25 years of its excellent existence.Under the strategy, State Oil Company Limited a private guild owned by the Federal establishment in which undertaking were vested on 15th September 1976 took over the entire undertakings of Pakistans Oil limited companies and content Oil limited companies as disclosed in their keepive financial statements declared on June thirtieth.The company then later converted in to Public limited company.In consideration for the transfer, the reconciliation political program provided all shareholders of the two former companies, PNOL and POCL, be issued fully pay-up ordinary shares of PSO against their holdings in PNOL and POCL along with fully paid-up premium shares. This was done at the rate of 1,185 PSO shares for every 1,000 shares of PNOL and 1,136 PSO shares for every 1,000 shares of POCL.The inception period of any company is al demeanors comparatively difficult but for an organization emerging out of the merger of leash separate units, the problems can be more complex. PSO, during its first year of operation, was no amazing. However, most of the problems were properly solved and taken care by the company.PSO sold a follow of 2,514,000 tons of petroleum products till June 30th 1977. This make a turnover of Rs 404.53 crores. Such meager return was partially due to the unrealistic hoggish margins, which were available to the oil marketing companies in all primary(prenominal) products and were fixed by the government as far back as 1963.At the end of the first year, the extent of the PSO operations was that it had four nautical terminals, 34 inland depots, four blending plants and 950 retail outlets. Of the retail outlets, 715 were gasoline and HSD stations, 126 service stations, 44 LDO rise stations and 65 kerosene stations.In its first year of operations, the upcountry storage capacity of the company was augmented by 33,000 tons. The storage capacity was established at Gilgit, Chitral and Skardu, enabling the residents of the Northern Areas to obtain their requirements of petroleum products doneout the year and at reasonable harms.By the second year of operations i.e. 1977, the company had successfully overcome the initial problems of the merger, establishing itself as a homogeneous commercial force capable of playing its recompenseful(prenominal) role in the economic progress of the country. It sold 1,826,000 metric tons of petroleum products during the year as a gainst 1,746,000 tons in the first year. This indicated an increase of 4.56 per cent.Since then, PSOs success story has continued with the company making a strong impact on the countrys overall development over the years with excellent prospects for further growth.A cursory look at PSO at a Glance in the annual report reveals unparalleled financial strength accumulated since inception. Statistics, though nearwhat restricted, neverthe slight, give a picture of all-round betterment despite temporary setbacks.The companys shareholders piss reposed unwavering confidence in the astute financial policies followed by the company that have not only given extremely attractive cash dividends year-after-year but also a consistent increase in the shareholders equity from Rs 116.2 million in 1977 to Rs 9,808 million in 2001.Where do we stand today?PSOs sales revenue during FY-2001 rose to Rs. 170 billion, showing a growth of 25.7% over the foregoing year. The company earned an all-time rec ord gross profit of Rs. 6.4 billion, which was up by 12.4% over the preceding year. The profit after tax was Rs. 2.25 billion. This was marginally higher than the previous years profit of Rs. 2.23 billion.If PSO had not make these provisions, the company would have reflected an additional profit of the like amount, which would have resulted in significantly higher profit than the preceding year.Not only that, the company has emerged as one of the countrys few largest tax presenters in the corporate sector. PSOs business operations have helped collect over the years Rs 338 billion in duties and taxes on behalf of the government.Integral to our success are our efforts to provide our customers an unmatched service based on innovation, deep care and our vision for the future. Accordingly, we have launched an aggressive plan to prove New Vision outlets in order to provide better character service to its customers. Some 330 New Vision retail outlets have been established all over the c ountry in a short period of two and a half years, which is a record.At the same time, to set high standards of customer service, the number of Company-owned and Company-operated (CoCo) sites has increased to 20.Yet another ambitious program that PSO has launched will see the promotion of Internet, especially in inaccessible areas of Pakistan. A total of 500 retail outlets are to be provided with Internet facility, which is now available at 150 outlets.The philosophy of HR in PSO1. guess human asset as the only asset which gets appreciated by passage of time.2. Always the right mortal at the right place for the right trade.3. Continuously re-align organization in line with contemporary business practices.4. halt Organization responsive by making it lean and flexible.5. All HR issues to be handled with transparency and keenness.Work environment in PSOEmployee RecognitionTo boost the morale of employees a reward and comprehension scheme is in place for the last few years and has b een a great source of creating a spirit of healthy competition amongst employees. Each year employees are propose for two company-wide ceremonies viz Shaukat Raza Mirza Management excellency apportion and PSO Managing Directors Performance AwardMotivation SurveySpecial efforts for continuously enriching our business systems and implementing relative strategies have always been fruitful which are aimed at augmenting a work shade that enhances employee motivation as swell up as gaining a better considering of forces that shapes motivation, attitude, demeanor patterns and expectations.Employee Motivation surveys are conducted that recognize the needs, opinions, concerns and perceptions of our human majuscule about the organization and what they value in terms of professional and personal interests and incentives. Keeping a human element is mind these surveys help identify a meaningful employee relationship with the organizational objectives and understand their chew over respon sibilities and work expectations.CommunicationOpen-book direct approach environmentAn assortment of forums/meetings at hand (Executive Committee, Management Committee, Employee leading Team) inspire discipline and accelerate establishment of processes systems.Encourage team work group dynamics season inculcating a sense of ownership through empowered Cross Functional Teams (CFTs)Employ Business adjoin Reengineering (BPR) to maintain an international working environment by streamlining processes and removing unnecessary layersInteractive sessions are regularly held by the Managing Director at all levels because clear, coherent and consistent messages ensure that employees are able to integrate the inputs into their sentimentAll organizational changes are announcedToleranceWe have high ethical standards and a Business Principles and Ethics Policy in place. We value, encourage and inculcate corporate reforms, good governance, trump out business practices and an environment of c ontinued adherence to Zero Tolerance, resulting in the development of our human capital and meeting all business challenges.Facilities and Recreational activitiesPSO encourages recreational activities of workforce at all levels. Formation and functioning of PSO Club provides assistance to employees for their psychological and physical health as well as for their social activities. Sports and recreational activities are organized through this forum, where employees and their families are encouraged to participate.It is our top priority to ensure the employees are in good shape and health. To physically show that we care, we have in-house food service with subsidized meals in a cafeteria that can cater all the employees stationed at PSO House. Employees can enjoy gymnasium facility right in PSOs corporate vicinity, a toilet facility of walking from your workstation to a private gym for a revitalizing workout.Performance ManagementSystem of effective act and feed back is worked out at PSO and is a significant figure of our estimation managementIndividual performance is sorted with the business goals and objectives of the companyPerformance-based rewards are offered on early basisAll management employees annual appraisal through a population spreadHuman Resource AwardsIn September 2007 suck up Human Resources (consultancy, solutions and services) in partnership with the Pakistan Society of Human Resources Management (PSHRM) conducted a resource study interviewing 550 graduating MBA students from 8 universities, chosen from the latest Higher Education Commission ranking survey.December 18, 2007, Karachi (PSHRM) and Engage Human Resources, announced the results of the first Most Preferred down Employer 2007 study at the ceremony held for PSHRM Graduate Employer Awards 2007.As we create an aspiring internal credibility along with leading HR practices delivering that promise, we standout for graduating MBA students as the most preferred place to work. Pakistan State Oil won the Most Preferred Local Company Award as the highest ranked Pakistani company with their perceived attractive compensation package as the main reason for their ability to attract talent.Literature ReviewMotivationMotivation is the process that is a florilegium of individuals intensity, direction persistence of effort toward attaining a goal. We would like to describe each element separately.Intensity- states how hard a person tries , or how much effort he will apply in his museDirection- A person should know the areas where he has to put more or less effort.Persistence-states how long a person could maintain his effortEffort that is directed toward and consistent with organizational goals is the kind of effort that we must be seeking.Managers are the nervous system of any organization, so they play the main role to make sure of motivational practices that are necessary for an organization. Major steps which managers should take to motivate employees areRecognize i ndividual differencesUse goals and take feedback on these goalsLink reward to performanceCheck the reward systemMake sure that employees are present in determination making which directly affect themThere are two basic ways to motivate employees. These are monetary and non-monetary approaches that are used by management. and before using rewards to motivate employees we have to take some strategic decisions. These are what should be the pay structure? How to pay employees? Whether there should be flexible benefits or not? How the company should build its intuition programs?First major decision is what to pay, that is to establish a pay structure. It is a rather complex decision and entails balancing internal and external equity. However the best pay system pays the job what it is worth objet dart also paying competitively relative to the labor market.Second decision is how to pay, whether there should be inconstant programs or skill based programs.Variable Pay ProgramsA portio n of an employees pay is based on some individual and/or organization measure of performancePiece Rate Workers are paid a fixed sum for each unit of issue completedMerit-Based Based on performance appraisal ratings. This merit based pay is motivating for employees because if they are designed properly, individuals can see their performance and reward they are getting.Bonuses Reward recent performance rather than historical.SKILLED BASED PAYIt is also known as knowledge based pay, it sets pay based on jobs or skills an employee can perform. salary Sharing plan These are organization wide programs that distribute compensation based on some established formula designed around a companys profitability. These can be cash outlays or pullulate options.Gain sharing It is a formula based group incentive plan. Rewards are tied to production gains not to profits.Employee Stock Ownership Plans In this program employee acquire stocks mainly below market price as part of their benefits, it incr eases employee satisfaction but its impact on performance is still not clear. tierce decision is what benefits to offer, another component is known as flexible benefits.Flexible BenefitsIt allows each employee to put together a benefits package individually tailored to his needs and situation. Three most popular benefits plans are standard plans- a predesigned package of benefits put together to meet needs of specific group of employeesCore-plus plans- consists a issue of benefits and a menu like selection of other benefits.Flexible spending plans- allow employees to set forth up to the dollar amount offered in the plan to pay for particular services.Employee RecognitionFourth is to build a comprehensive employee recognition program. It ranges from a THANKYOU to widely publicize formal programs in which specific fictitious characters of behavior are encouraged and procedures for attaining recognition are clearly identified. Two of the most popular methods are endowment gifts ce rtificates and cash rewards. It also includes giving personal attention to employees.But all factors described above holds some pros and cons. Benefits of it areFulfill employees desire for recognitionInexpensive to implementEncourage repetition of desired behaviorsNon monetary Approaches to MotivationThere are some non monetary approaches to motivate employees. To proceed further we need to understand job design first i.e. way the elements in a job are organized.First way to redesign a job to motivate an employee is job rotation that is periodic shifting of employee from one job to another. When an legal action becomes unchallenging employee is shifted to another job usually at the same level of skills requirements. Another way is job enlargement in which variety and number of tasks of an employee are increased it is a horizontal expansion in an employees job design. Similarly, we expand vertically to which is known as job enrichment. It increases the degree to which thespian co ntrols planning, execution and evaluation at the work.Furthermore there are some alternative work arrangements. These areFlexitimeEmployees work during a common core time work each day but can arrange their total hours a day by themselves from the set of hours outside the core. line of reasoning sharingIt is a practice in which a 40 hour a week job is split between two to threesome employees. It allows management to draw on talents of more than one individual in a given job and is mostly suitable for female workers.TelecommutingIt refers to employees who do their work at home atleast 2 days a week on a computer that is linked to their office. Three types of jobs suits this methodRoutine information handling taskMobile activitiesKnowledge related jobsEmployee InvolvementIt is a process that supports participative management by using employees input to increase their commitment to the organizations success. By increase worker autonomy and control over work lives (involvement), orga nizationsIncrease employee motivationGain greater organizational commitmentExperience greater worker productivityObserve higher levels of job satisfactionThree major forms of employee motivation areParticipative ManagementSubordinates share a significant degree of decision-making power with their immediate superiorsRepresentative ParticipationWorks Councils Groups of nominated or elected employees who must be consulted for any personnel decisionsBoard Representative An employee sits on a companys board of directors and represents the interests of the firms employees.Quality CircleA work group of employees, who meet regularly to discuss their smell problems, investigate causes, recommend solutions, and take corrective actions.Articles on Motivation from HARVARD BUSINESS REVIEWTo make our research more interesting we decided to summarize some very interesting article from Harvard Business Review which we were told to read regularly by our instructor. References to these articles are given at the end.Article 1 Say, Tom, Let Me hush a Little The Power of Intrinsic MotivationArticle Link http//blogs.hbr.org/erickson/2007/07/say_tom_let_me_whitewash_a_lit.htmlSummary or the ArticleThis article develops clear sense of what intrinsic motivation is. Intrinsic motivation is the willingness to engage in an activity without some external rewards (i.e. French benefits) or in other words we can say that it is the motivation that comes from inside of an individual rather than from any external reward. It is the pleasure one gets from the task itself or from the sense of satisfaction in completing or even working on the task.The computer games are the best example as its suckled on the principle of intrinsic motivation. The growing skill level and the increasing degree of difficulties led to effective online learning with the motivation for players to be given towards the next level. Similarly within this type of cultural norms, smaller steps are far better than the big in frequent increment.If workplace sweep same culture than the workers will work harder to compete with colleague and move towards the next level in order to attain the desired goal. Nowadays the workforce are adopting this culture i.e. using games (whether addictive or not) in which there is a use of intrinsic principles to encourage self-motivated work activities that can led to enormous effective production.This is a successful strategy because people want to move to next level as fast as they can and in workforce competition among workers motivate them to work hard and to move towards the next level in order to attain goal after which they get self satisfaction and pleasure which is known as Intrinsic Motivation.Article 2 Four Motivation Mistakes Most leading MakeArticle Link http//blogs.hbr.org/cs/2011/10/four_motivation_mistakes_most.htmlSummaryThis articles talks about the motivational mistakes the leadinghiphip make objet dart leading their employees. The first mistakes they make are by always thinking reasoning(prenominal) and create frustrating unintended consequences. The leaders should rather focus on five sources of meaning for earthly concern at work the impact of the work on society, the customer, the company, the team, and me. Another blunder that is made by the leaders is focusing on offering monetary incentives only. Experience and numerous studies, however, show that big bonuses are less effective than smaller, unexpected gestures, because gifts create a relationship while bonuses are purely transactional also leaders are habitual of giving orders rather listening to the employees perspective. Lastly the leaders need to be approbatory and dont search for problems. Focusing on problems tends to create fatigue and resistance,instead focus on how your organizations or individuals, strengths can be used to overcome your challenges.QuestionnaireFor how long have you been a part of this organization?Less than 5 years5-10 years10-15 yearsMor e than 15 yearsWhat is your level of satisfaction with the working culture of the company? extremely SatisfiedSatisfied check over displeaseHighly DissatisfiedRate the pursuit statementExecutives are interested in motivating the employees?Strongly AgreeAgree impersonal disaccordStrongly discordWhat is your satisfaction level with the incentives provided by the company?Highly SatisfiedSatisfiedModerateDissatisfiedHighly DissatisfiedPlease rate the statements given underneath according to the following ratings.1 for Strongly Agree2 for Agree3 for Neutral4 for take issue5 for powerfully disagreeReasonable periodical increase in salaryJob SecurityGood race with other round members trenchant performance appraisal systemEffective promotional opportunitiesPerformance appraisal activities are helpful to get motivatedSupport from the other staff members is helpful to get motivatedOrganization recognizes and acknowledges your work.Organizational Policies motivates for achieving its aims and objectiveDo you think that incentives and other benefits will influence your performance?YesNo OpinionNoDoes the Top Management involve you in decision making which are committed to your department?AlwaysUsuallyOftenSome propagationRarelyNeverDo you think inbred Competition plays an important role in employee motivation?Strongly AgreeAgreeNeutralDisagreeStrongly DisagreeDoes ethical principles of the organization influence employee motivation?Strongly AgreeAgreeNeutralDisagreeStrongly DisagreeDo you agree that employees are placed on their jobs according to their field of interest?Strongly AgreeAgreeNeutralDisagreeStrongly DisagreeDoes your job provide you the opportunity to continually advance to more senior positions.Strongly AgreeAgreeNeutralDisagreeStrongly DisagreeHow does pressure motivate you?Handling Competing PrioritiesFacing Tight DeadlinesManaging SetbacksBeing in a team motivates you?Strongly AgreeAgreeNeutralDisagreeStrongly DisagreeResultsFor how long have you bee n a part of this organization?Less than 5 years5-10 years10-15 yearsMore than 15 yearsOut of 12 people we interviewed 4 were working for less than five years , 6 were working for more than five years and 2 employees were PSOs part for about 12 years.What is your level of satisfaction with the working culture of the company?Highly SatisfiedSatisfiedModerateDissatisfiedHighly DissatisfiedA very positive reply was noticed as 59% of the sample was satisfied with the corporate culture of PSO as it has a policy of orienting employees according to their need , which then leads employees to understand the culture more easily. Secondly, open entry policy and corporation of colleagues is encouraged in PSO which allows high satisfaction levels. PSO is acknowledge as an EMPLOYER OF CHOICE for which it received an award in 2007. 25% of the sample was satisfied moderately while remaining 16% were employees who were working for more than 10 years and showed their extra satisfaction because of th e growth, status and respect which they received in their career at PSO.Rate the following statementExecutives are interested in motivating the employees?Strongly AgreeAgreeNeutralDisagreeStrongly DisagreeOpen door policy, performance management, career development, training sessions, authority and being a part of departmental decision making are some factors that aroused 67% of the sample to rank this statement with the second option, however some employees who are still new to the organization rated it as neutral that executives are not biased towards other employees but they are also not directly involved in decision making. Top management provides guidance on particular issues, they encourage Cross functional teams, Employee Business Process Reengineering, meeting with employees, different informational and interactive sessions and make sure that all organizational changes are well announced.When the response of these 33% employees was shown to a top executive Rashad Usama brand manager lubricants, he provided us with the answers that it is our policy of first assessing fresh employees and let them show their potential then with their respective supervisors a complete training and development plan is made for them.What is your satisfaction level with the incentives provided by the company?Highly SatisfiedSatisfiedModerateDissatisfiedHighly Dissatisfied16 % employees were highly satisfied with their benefits that include medical insurance , petrol , children education , gift fund, paid holidays, vacations and etc , 67 % employees were just satisfied as they think even in difficult times PSO assumed them as their assets and rest showed moderate responses. Moreover employee recognition awards, ethical standards, tolerance policies and facilities such as gym, cafeteria and PSO club plays a great role in keeping employees proactive.Please rate the statements given underneath according to the following ratings.1 for Strongly Agree2 for Agree3 for Neutral4 for D isagree5 for strongly disagreeReasonable periodical increase in salaryJob SecurityGood Relationship with other staff membersEffective performance appraisal systemEffective promotional opportunitiesPerformance appraisal activities are helpful to get motivatedSupport from the other staff members is helpful to get motivatedOrganization recognizes and acknowledges your work.Organizational Policies motivates for achieving its aims and objectives84 % employees strongly agreed with 2nd, 3rd and seventh