A Study on Employee Motivation in Cement Industry
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1 Volume-6, Issue-3, May-June 2016 International Journal of Engineering and Management Research Page Number: A Study on Employee Motivation in Cement Industry Prof. Brijmohan Vyas 1, Sumathi Nadagouda 2 1,2 Basaveshwar Engineering College (Autonomous), Department of Management Studies-Bagalkot-Karnataka, INDIA ABSTRACT The purpose of this study is to examine the financial and non-financial factors of motivation, which are used in cement industry and to study the effectiveness of financial and non financial aspects on employee motivation. In the context of employee motivation, incentives have been used as motivational tools for encouraging and motivating employees to exert extra effort, and to improve employee work performance and productivity. Thus, incentives are playing a key role in motivating employees. The questionnaires prepared for this purpose, are applied to 50 employees at cement industry. According to the results of the analysis, a significant relation is observed between the financial and nonfinancial incentives on employee motivation. When these relations are compared, the result is that the attitudes towards non financial incentives have a stronger effect on employee motivation than the attitudes towards financial incentives. The research findings also indicated that Employees in the cement industry are motivated by nonfinancial incentives such as Job security, job enrichment, fair treatment to employees Recognition of good work, Encouragement for self-development and career development, Delegation of authority to subordinates rather than financial incentives. At the same time financial incentives also important to motivate employees so company should take care about financial incentives. In this regard, it can be concluded that employees can be motivated by financial incentives and also by non financial incentives. Key words: Employee motivation, financial and non financial factors. I. LITERATURE REVIEW Naldoken 2011 The Effect of Financial and Non-financial Incentives on Job Satisfaction Examined the financial incentive application on the motivations of employees at a state hospital in terms of their performance. It was concluded in the study that the medical employees, who benefited from these financial incentives were positively motivated by this application. Ludivine 2011 Firm s needs to motivate their people and keep them motivated in order to obtain the productivity gains and to insure their competitiveness. Sometimes people who are given responsibilities feel motivated and do their best and work hard accordingly. Öztürk & Dündar 2003 According to the findings obtained in the research, it is seen that managers are more motivated by non-financial incentives than financial incentives in public employees; and employees are more motivated by financial incentives than non-financial incentives. Kaya 2007 Based on these findings, the conclusion was that non-financial incentives were more effective then financial incentives in terms of the attitudes of employees. (Jenkins, Mitra, Gupta and Show, 1998). Financial Incentives and Rewards on Employee Motivation in the Nigerian Electricity Distribution Company Number of others are of mixed findings. While some support a positive relationship between financial incentives and employee motivation, others have not find a strong relationship between them. Shanks (2012), opines that there are two important reasons that employees should be motivated, that is, to achieve their personal and organizational goals. Saira Yousaf, Madiha Latif, Sumaira Aslam and Anam Saddiqui Impact of Financial and non Financial Rewards on Employee Motivation 2014(Published) The success is based on how the firms keep its employee motivated and in what way they evaluate the performance for compensation. The financial incentives is no doubt ranked top in motivating employees because money enables employees to fulfill not only their basic needs, but also their need of belongings and need of power. Though money is a dominant factor, but besides it there are non financial factors also called intrinsic factors which play pivotal role in motivating employees. So, it s not only money that enhances the morale of employee, but non financial rewards like recognition, appreciation and 381 Copyright Vandana Publications. All Rights Reserved.
2 career development opportunities also improve the morale of the employee. Statement of the problem: In Cement Industry it is very keen to find out the present degree of motivation among employees resulting from the existing practices adopted in motivating them. Hence the statement of the problem will be knowing the financial and non financial factors of the employees in Cement Industry and suggesting suitable factors which can be effective II. THE OBJECTIVES OF THE STUDY: To study the financial and non financial factors of motivation To study the effectiveness of financial and non financial aspects on employee motivation III. RESEARCH METHODOLOGY: Sample size: -50 respondents Sources of data: - 1. Primary data: a. Questionnaires for employees. b. Direct interactions with managers. 2. Secondary data: a. Past reports, articles, literature reviews and websites Data collection method: Questionnaires Interaction with managers Data Simple analytical methods like cross tabulation, bar charts, pie charts etc will be employed to interpret the data collected. IV. DATA ANALYSIS AND INTERPRETATION Since from how many years you are working? years of working 1-4 years years years years years years years 1 From the above graph it is found that 34% of the employees are working since from 1-4 years, 11% of the employees are working since from 5-9 years, 2% of the employees are working since from years, another 2% of the employees working since from years, 1% of the employees are working since from years, and another 1% of the employees are working since from years. 382 Copyright Vandana Publications. All Rights Reserved.
3 From the survey it is found that 12% of the people are assistant account 8% of the people are plant engineer, assistant engineer, & chemist trainee. 6% of the people are officer. 4% of the people are MIS Assistant, HR Assistant, manager assistant, graduate engineer trainee, manager, purchase officer. And remaining 2% of the people are computer operator, government employee in mechanical field, general manager, junior engineer and chief burner etc. FINANCIAL INCENTIVES MOTIVATES ME MORE THAN NON FINANCIAL INCENTIVES. Valid Strongly agree Agree Neither agree or disagree Strongly disagree Disagree Copyright Vandana Publications. All Rights Reserved.
4 From the above table it is found that 60% of the respondents have disagreed that financial incentives does not motivates them more than non financial incentives, 16% of the respondents have agree that financial incentives motivates them,12% of the respondents strongly agree and remaining 12% of the respondents have neither agree or disagree. financial incentives are not so effective to motivate employees. THE SALARY INCREMENT GIVEN TO EMPLOYEES WHO DO THEIR JOBS VERY WELL MOTIVATES THEM Valid Strongly agree Agree neither agree or disagree strongly disagree Disagree From the survey it can be observed that 52% of the employees disagreed that salary increment given to employee does not motivate, 16% of the employees agree that increment given to employee does motivates them again 16% of the employees stated as neither agree or disagree and remaining 6% of the employees strongly agree that increment given to the employee motivates them. most of the employees say that increment given to the employee do not motivates them because salary increment provided in the organization is not so effective. I AM SATISFIED WITH THE SALARY I DRAW AT PRESENT Valid Highly satisfied Satisfied neither satisfied or dissatisfied Dissatisfied strongly dissatisfied Copyright Vandana Publications. All Rights Reserved.
5 From the above table it has been observed that 40% of the employees are neither satisfied or dissatisfied with salary, 24% of the people are satisfied with salary, 20% of the people are dissatisfied, 14% of the people are strongly dissatisfied and remaining 2% of the employees are strongly satisfied with salary they draw. From the analysis it can be interpreted that most of the employees are not satisfied with the salary they draw at present because company s do not providing adequate amount of salary which it creates motivation among employees. I AM SATISFIED WITH LUNCH BREAK, REST BREAK AND LEAVES GIVEN IN THE ORGANIZATION Valid Highly satisfied satisfied neither satisfied or dissatisfied dissatisfied strongly dissatisfied From the above table it is found that 68% of the people are satisfied with lunch break, rest break and leaves in the organization 18% of the people are neither satisfied nor dissatisfied and 14% of the employees are totally disagreed. employees in the organization are satisfied with lunch time, rest break and leaves because company provides sufficient time to meet their personal and other needs 385 Copyright Vandana Publications. All Rights Reserved.
6 GOOD PHYSICAL WORKING CONDITION IS PROVIDED IN THE ORGANIZATION Valid Strongly agree agree neither agree or disagree strongly disagree disagree From the above table it can be found that 50% of the people are agreed towards good working condition is provided in the organization whereas 26% of the people are neither agree or disagree and remaining 24% of people are totally disagree. most of the employees are satisfied with infrastructure provide by the organization which it helps to motivate the employee THE EMPLOYEES IN THE ORGANIZAION FEEL SECURED IN THEIR JOB Valid Agree neither agree or disagree strongly disagree Disagree Copyright Vandana Publications. All Rights Reserved.
7 From the survey it can be observed that 42% of the employees says that they feel secured in their job, 28% of the people are neither agree or disagree and 30% of the employees are totally disagreed that they don t feel secured in their job most of the employees are feeling secured about their job as they are performing well and they are getting recognition for their work hence they feels confident, secured and motivated. THE RETIREMENT BENEFITS AVAILABLE ARE SUFFECIENT Valid Excellent very good average below average poor From the survey it can be observed that 66% of the respondents are getting average retirement benefits in the organization, 18% of the people have told very good about retirement benefits, 8% of the employees says poor, 6% of the employees says below average and only 2% of the respondents says excellent retirement benefits they get. most of the employees are not satisfied with retirement benefits given by the organization. THE MEDICAL BENEFITS PROVIDED IN THE ORGANIZATION ARE SATISFACTORY Valid strongly agree Copyright Vandana Publications. All Rights Reserved.
8 agree neither agree or disagree strongly disagree disagree From the survey it can be found that 42% of the respondents are agree with the medical benefits provided in the organization are satisfactory, 22% of the employees are neither agree or disagree and 14% of the employees are totally disagree that they are not satisfied with medical benefits. most of the employees are satisfied with the medical benefits provide by the organization. This motivates the employees. VISIBILITY WITH TOP MANAGEMENT IS IMPORTANT TO ME Valid Strongly agree agree neither agree or disagree disagree Copyright Vandana Publications. All Rights Reserved.
9 From the above table it has been found that 52% of the employees say that visibility with top management is very important to them 22% of the employees are strongly agreed, 18% of the people are neither agree or disagree and remaining employees have totally disagreed with the above statement. visibility with the top management motivates them to work and it is a part of recognition of individual. I FEEL THAT MY SUPERIOR ALWAYS RECOGNIZES THE WORK DONE BY ME Valid Strongly agree Agree neither agree or disagree strongly disagree Disagree Copyright Vandana Publications. All Rights Reserved.
10 From the above table it has been found that 46% of the employees say that the superior always recognize the work done by employees, 30% of the people are strongly agreed with the statement, 18% of the employees are neither agree or disagree and only 6% of the employees has totally disagreed with the statement. Most of the employees given opinion that superior always recognize the work done by the employees,it creates motivation among employees. I FEEL THAT THE JOB I DO GIVES ME A GOOD STATUS Valid Strongly agree Agree neither agree or disagree strongly disagree Disagree From the above survey it can be found that 54% of the employees say that the job they do gives them a good status, 22% of the employees are strongly agreed with the statement, 16% of the employees are neither agree or disagree and 8% of the employees are totally disagreed with the above statement. From the above analysis it can be interpreted the job status motivates the employees. I AM SATISFIED WITH THE RESPONSIBILITY AND ROLE THAT I HAVE IN MY WORK Valid Strongly agree agree neither agree or disagree Copyright Vandana Publications. All Rights Reserved.
11 disagree From the above table it can be found that 38% of the employees have strongly agreed that they are satisfied with the responsibility and role that they have in their work, 34% of the employees have agreed, 24% of the employees are neither agree or disagree, and 2% of the employees say that they are not satisfied with their role and responsibility. most of the employees say that responsibility and role clarity about their job motivates them to work more in the organization. DEVELOPING NEW SKILLS AND KNOWLEDGE AT WORK MOTIVATES EMPLOYEE Valid Strongly agree Agree neither agree or disagree strongly disagree Disagree Copyright Vandana Publications. All Rights Reserved.
12 From the survey it has been found that 64% of the people says that developing new skills and knowledge at work motivates employees, 28% of the employees are neither agree or disagree, and only 8% of the employees say that developing new skills and knowledge at work doesn t motivates employees From the above analysis it can be interpreted that organizations focus on improving the skills and knowledge of employees. This gives them confidence and it motivates employees. RESPONSIBILITY AND CHALLENGING JOBS AT WORKS MOTIVATES EMPLOYEE Valid Strongly agree Agree neither agree or disagree strongly disagree Total From the survey it can be found that 66% of the employees say that responsibility and challenging jobs at works motivates employees, 32% of the employees are neither agree or disagree, and only 1% of the employees have disagreed that responsibility and challenging jobs at works motivates employee. From the analysis it has been interpreted that most of the employees say that responsibility and challenging jobs at work motivates employee. V. FINDINGS From the survey 60% of the respondents have disagreed that financial incentives does not motivates them compared to non financial incentives. From the survey it can be found that 52% of the employees disagreed that salary increment given to them are not adequate. It doesn t motivate employees. From the survey it can be found that 40% of the employees are not satisfied with the salary they draw at present. From the survey it is found that 68% of the people are satisfied with lunch break, rest break and leaves in the organization 392 Copyright Vandana Publications. All Rights Reserved.
13 From the survey it can be found that 50% of the people are agreed that organisations provides good working conditions. From the survey it can be observed that 66% of the respondents are getting average retirement benefits in the organization From the survey it has been found that 52% of the employees say that visibility with top management is very important for them. From the above table it can be found that 72% of the employees have strongly agreed that they are satisfied with the responsibility and role that they have in their work. From the survey it has been found that 64% of the people says that developing new skills and knowledge at work motivates employees From the survey it can be found that 66% of the employees say that responsibility and challenging jobs at works motivates employees VI. SUGGESTIONS Non financial factors also considered by industry, it motivates lot employees compared to financial factors. As studied in the organization there is 50% of the respondents happy with physical working condition in the organization, so it should meet up the expectations of remaining employees. This motivates them to work more. Company should provide proper retirement policy. This motivate the employees to work more as they feel there future is secured. VII. CONCLUSION According to the findings of the study, the financial incentives are found to be lower than nonfinancial incentives. It can be noticed that the more positive attitude towards nonfinancial incentives. But at the same time financial incentives are also equally important in enhancing the employee motivation and their productivity, so company should take care of proper financial aspects which will help the business to succeed and prosper REFERENCES [1] Seyed Abdol Rasoul Hosseini Factors Affecting Employee Motivation June (2014) [2] Ali Erbaşı 1 & Tugay Arat The Effect of Financial and Non-financial Incentives on Job Satisfaction An Examination of Food Chain Premises in Turkey International Business Research; Vol. 5, No. 10; 2012 ISSN E-ISSN [3] By Coro Strandberg on July 10, (2013) What motivates employees? Financial incentives or nonfinancial incentives? [4] M. Wiese & R. Coetzee The importance of nonfinancial motivators to pharmaceutical sales representatives: A demographic study [5] Seyed Abdol Rasoul Hosseini Factors Affecting Employee Motivation pg 714 [6] Saira Yousaf,Madiha Latif, Sumaira Aslam and Anam Saddiqui Impact of Financial and non Financial Rewards on Employee Motivation Middle-East Journal of Scientific Research 21 (10): , 2014 pg [7] MUOGBO U.S. The Impact of Employee Motivation On Organizational Performance The International Journal Of Engineering And Science 7, Aug (2013) [8] Human Resource Management By kavatekar [9] Human resource management By Dr subbarao 393 Copyright Vandana Publications. All Rights Reserved.
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