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ORGANIZATIONAL BEHAVIOUR (PAK ELEKTRON 1

LIMITED)

PAK ELEKTR ON LIMITED

INTRODUCTION1
PAK ELEKTRON LIMITED: was established with the technical
collaboration of M/s AEG, West Germany, in 1956 and is the oldest
composite electrical equipment-manufacturing unit of Pakistan producing
Power as well as Consumer products. The present range of power products
includes Transformers up to 33 KV-5Mva capacity, Switchgears up to 33
KV, Squirrel Cage Induction Motors up to 40 H.P, Single Phase Energy
Meters, Small Generators, Shunt Capacitor Banks and Reclosers etc. In the
year 1980 the company expanded in to consumer durables with the
introduction of Window Type Air Conditioners and today also
manufactures Refrigerators, Deep freezers and Compressors etc. In its ever-
increasing quest for meeting market needs of Pakistan the manufacture of
color Television has now been started by its joint-venture company.
PEL-DAEWOO:
PEL, Products right form the beginning has been of a high standard
and the name PEL is synonymous with quality all over Pakistan. In fact
PEL has been more than just an industrial unit. It has been acting as an
institution working for the advancement and development of electrical
engineering know-how and technology in the country. Through its
apprenticeship schemes and training programmers for engineers and
technicians, it has produced hundreds of skilled workers and technicians
who have exhibited high proficiency in their profession, both in and outside
Pakistan.
PEL equipment has been used in numerous projects of national importance,
and over a period of years, PEL has had the privilege of getting its
equipment approved and certified form such well reputed international
consultants as:
1- Preece, Cardew & Rider, England.
2- Harza Engineering Company, U.S.A.
3- SNAM Progetti, Italy.
4- Societe Dumez, France.
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5- Ensa, France.
6- Miner & Miner International Inc. U.S.A and many others.

It was in early 70’s that PEL became known in overseas markets due to
its quality and the company started it exports to countries like Saudi
Arabia, Dubai, Abu Dhabi, Qatar, etc. Later on PEL supplied electrical
equipment to various countries in the Middle East, Far East and Africa with
great success.
At the same time within Pakistan, PEL equipment was chosen for such
vital projects as Mangla Power Station, Tarbela Power Station and
Combined Cycle Kot Addu Power Station. PEL for the first time in
Pakistan developed Dry Type Power Transformers up to 750 KVA rating,
meeting high safety and design standards.
Subsequently PEL developed portable Generating Sets and specialized
D.C Motors etc. of various capacities for Army use and entered in the
phase of manufacturing equipment meeting strict Army Standards.
In October 1978, PEL was taken by Saigol Group Of Companies, which is
one of the largest industrial and commercial groups. The Saigol Group
belongs to Saigol Family, which is an old business family and has
contributed a lot towards Pakistan’s industrial development. Saigol Group
remains a leading and forward-looking group and believes in continuous
development and growth. The result is a global business activity monitored
through various offices worldwide.
Meeting Saigol’s traditions, since it’s take-over by the group, PEL is a
company on the go”.
PEL’s first major power product being produced since 1956 is
DISTRIBUTION TRANSFORMERS, up to 33 KV and 5000 KVA
capacity. These oil-immersed transformers are suitable for both indoor and
outdoor installations, being manufactured as per I.E.C 76, B.S.S. 171 or
VDE 0532 standards. PEL transformers have been tasted in KEMA labs
(Holland), against Short Circuit Withstand in addition to Routine, Type,
and Impulse Tests in Pakistan.
PEL’s second major power product is High Tension and Low
Tension Switchgears being produced for indoor and outdoor installation
complying with the latest international specification i.e. IEC, BSS OR

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VDE. PEL’s Switchboards are sheet fabricated, totally enclosed, floor


mounting vermin and dustproof.
PEL’s third power product is Single Phase and Three Phase
Induction Motors being manufactured in 35 models up to 40 horsepower
range. PEL’s totally enclosed fan-cooled motors are suitable for operation
under extreme climate conditions. Its robust design and special enclosure
offers effective protection against dirt and humidity. These motors are
designed and manufactured according to IEC, VDE/BSS Standards. PEL’s
Motors are more suitable for Spinning Mills, Power Looms, Ginning
Factories, Oil Expellers, Cement, Sugar and Chemical Plants, Tube Wells,
etc.
PEL’s fourth power product is the high tech., high quality Single
Phase Watt Hour Meters being produced under license from M/s A.B.B,
Power T&D Company U.S.A in the range 10-40 Amps and rated 240-Volts.
PEL’s are also planning to expand in other metering areas in the near
future.
In the year 1980-81 the company added the first consumer product to
its production range i.e. Window Type Air-Conditioners of 19000BTU
called “PEL-air” in technical collaboration with General Corporation Of
Japan. This unit in a short time becomes the No. 1 local air-conditioned in
Pakistan because of its high quality and performance
Production of Window Type Air-conditioners at he moment is in 3
models i.e., 12000 BTU (1 Ton), 19000 BTU (1.5 Tons), 24000 BTU (2
Tons) produced with brown or white colored grills, providing a variety of
customer’s selection. During the 1987-88 Split Type Air-conditioners were
also introduced in the market, which has also been a great success.
During the year 1986-87 PEL introduced two more consumer
products in the market i.e. Refrigerators and Deep Freezers in technical
collaboration with M/s. SILTAL SPA (Italy) and M/s. ARISTON (Italy)
respectively, which were also received with great enthusiasm by the
consumers.
PEL Refrigerators called “PEL COOL” are specially designed to
work most efficiently under the extreme climatic conditions of Pakistan.
Special consideration has been given to the latest styling trends and
changing market demands to get a better consumer response. Production of

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Refrigerators in three different colours i.e. Green, Beige and White and six
different models from 180 liters to 410 liters in single door and double door
design provides the consumers with a variety to select from according to
his needs and taste.
Also, during the year 1986-87, PEL, introduced in the market Chest
Type Deep Freezers, called “PEL FREEZE”. The units are designed to give
a high level of performance during the extreme climatic conditions of
Pakistan. Production of Deep Freezers in two different colours i.e. White
and Off- White, and six different models i.e. form 175 liters to 410 liters in
Single door and Twin door designs give the consumers a variety to select
from.
During 1993 PEL had set up a high –tech Compressor manufacturing
facility at PEL in collaboration with Necchi of Italy.
Production of High Tech Colour Televisions has also been started
and the product has been well received in the Pakistan market by PEL
joint-venture company M/s PEL-DAEWOO Electronic Limited.
In order to keep the high quality and standard of production PEL
quality control and inspection department keeps a very close check of the
quality control at various stages of production of equipment. A very strong
Quality Assurance and Quality Control (QA/QC) programmed has been
introduced for our normal productions and they are also in the process of
implementing ISO 9000 Certificate.

HUMAN RESOURCE & ADMINISTRATION DEPARTMENT

HUMAN RESOURCES DEPARTMENT:

The Head of Human Resources is called “HR Manager”. The Human


resources manager has direct link with the Heads of other departments. As
we discuss in the introduction of PAK ELEKTRON LIMITED that it is
owned by Saigol Group in 1978. At that time personnel department was
established to deal with Personnel problems. Later on this personal
department was renamed as Personnel and Administration Department. It
renamed Personnel and Administration Department up till 1994 due to
importance of human resources competing industries.

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They decided to established human resources department. So on the


May 1999, they appoint Mr. Syed Shujat Hussain Shah as a human
resources manager the head of department. So from 11th May 1999 HR
department was established in a formal way. Now this department is called
HR and Administration Department. Now about 180 employees are
working in this department among which 27 are doing office or clerical job.

FUNCTIONS OF HUMAN RESOURCES DEPARTMENT

The human resources and administration department is performing


following functions;
• Recruitment
• Selection
• Training
• Promotion
• Transfer
• Administration
• Labor affairs
• Staff welfare
• Manpower planning for five years

The PEL has proper rules and regulations regarding recruitment. The personnel manager
together with board of directors forms the recruitment policy, which is strictly followed.

RECRUITMENT PROCEDURE:

For selection of employees, they have their own standards:


• Education standard
• Interpersonal skills
• Communication ability
• Leadership qualities
• Persuasion skills
• Adaptability

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When there is any seat vacant in any department, the head of that
particular department informs human resource to place a proper person for
that particular job.

TRAINING OF EMPLOYEES:

Human resource department of PEL provides opportunity of training


to its employees. The employees go for training periodically on domestic as
well as international level. They attend refreshing courses held in Pakistan
institute of management sciences, Lahore etc. basically PEL has a dynamic
structure, when there is change in the environment, PEL at once adopts that
particular change. This is the reason that PEL is the leading company in
Pakistan and their profit margins are increasing day by day.

ADMINISTRATIVE ROLE:

There is no separate administrative department in PEL. Human


resource department also perform administrative roles. The human resource
is mainly entitled with the responsibility of transfers, promotion and
disciplinary actions. Human resource manager himself directly
administrates the functions and all the affairs concerned with
administration of all departments.
The head of the department prepares annual confidential reports
(ACR) of staff. Personnel manager prepares the performance of all the
heads of the department, which reflects their performance and provides
basis for evaluation of promotion of the personnel. Similarly all the
complaints against the employees are referred to personnel department and
personnel manager after the approval of the directors takes on disciplinary
actions if required.
TRANSFERS:
Transfers in the organization are made on two reasons;
→ Need of the management
→ Need of the workers
If there is any surplus in any department and the need in other
department and workers can easily adjust themselves in the next
department. Then they are transferred. And in second case the transfer is

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made on the request of employees. In first case the union does not make
any influence, because the workers are already idle in their department and
it is better to transfer them instead of their layoffs. But if there is a problem
with the wage rate and salary with the transfer, then definitely the union
favours the employees, but this practice is not there.
And in second case when transfer is on the request of the workers
then there is a direct procedure of direct application in the name of
personnel manager with some solid reason and if the manager thinks it is
suitable then the workers are transferred.

UNION AND LABOR LAW AT PEL:

Union:
A labor union is elected by the employees of PEL every year. The
union takes an active part in all activities. It negotiates with management
for employee’s problems.

Labor Laws:
Labor laws applicable in the country are also applicable at PEL. All
benefits imposed by the government of Pakistan and government of Punjab
is granted to employees.

Relation with Union.

Good relationship between the management and union is very much


essential for any organization. It has much impact upon over all
organization performance. So management always tries to develop sound
relationship with union but not at the cost of organizational objective. On
the other hand, union tries to take possible benefits for the employees. If
there is good relationship between the management and union then there is
a substantial degree of peace between them. Strikes occur rarely. In such
situation both parties consider the needs and limitation of each other.

In Pak Elektron Limited, there is a sound relationship between


management and union. When union leaders are selected by employees for
two years, the management tries to give extra benefits to the union leaders

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to developed good relation. In other words, we can say, union leader are
obliged by the management but it doesn’t mean that employees are
deprived their basic rights. PEL management itself tries to give possible
benefits to employees. Union bargain on annually bases with management
on different issues like.
• Allowances
• Promotion
• Fringe benefits
• Working conditions
• Health and safety
• Beneficiary and home

If company is earning high profit then management itself gives more


possible benefits to the employees i.e. in 1991-92 company earned more
profit and they gave extra benefits to the employees but company has been
earning nominal profits since 1992-94, so company is not in a position to
give extra benefits. In such situation, union considers the company’ s real
financial position and does not go for strike. 15 years ago strike was
observed by union against management policies. When one party faces
major problems other party shares the problems and helps to overcome
such problems. For example, in 1991-92, company was earning high profit
because demand of their products was high in the period. To fulfill this
increasing demand, management hired more employees. But in 1994 when
profit was decreased, the management had to reduce the labor force. On
this critical issue union cooperated with management because there was no
other way for management. Both parties believe on the policy of give and
take. They compromise on different issues, which occur time to time. No
party tries to use power to force other.

Promotion.
The present scenario particularly in PEL is that mostly there is not
much favoritism in the organization and promotion is based upon
performance and seniority. There is no influence of union regarding

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favoritism because the management is restricted on performance for


promotion.

Benefits of Employees.

Company provides retirement benefits in the form of gratuity and


Provident fund. For Provident fund the company has scheme of 10%
contribution by employees and 10% by the company. Cumulative provident
fund is paid with interest to employees in cash when he retires or resigns
from the company.
Subsidized Meal.
Company provides the subsidized lunch to its workers and officers.
For night shift, it provides dinner to its employee in the factory mess.
Medical allowances.
Workers with salary Rs.3000/ month have medical facility under the
social security. The personnel having salary more than Rs.3000 monthly
are paid Rs.250 per month as medical allowances. For officers and high
grades there is no limit for medical allowances.
Uniform and Locker facility.

Company gives two uniforms in a year to its workers and also


provides lockers to them for the safety of their personal things.
Loans
Loan are given to the employees from the provident fund, car loans
are also given to the executives level officers.
Performance Award.
24th of December is celebrated every year as annual day. At that time
award of best attendants and special performance are given to most regular
employees and to those who perform an extra ordinary job.
Group Insurance.
The company insures workers. The company pays all premiums.
Conveyance Allowance.
Company pays Rs.3 per kilometer for car and Rs.1 per kilometer for
motorcycle in case of office work.

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Motivation
Motivation can be defined as under:
Definition # 1
“A set of process that arouse, direct, and maintains the human behavior
toward attaining some goals”.

Definition # 2

“Motivation is a force that cause people to behave in certain ways”

Definition # 3

“Motivation is a process that starts with a physiological or


psychological deficiency or need that activates behavior or a drive that is
aimed at a goal or incentive”

Definition # 4

“The willingness to exert high levels of effort toward organizational


goals, conditioned by the effort’s ability to satisfy some individual need.”

Definition # 5

“ Motivation basically means an individual’s needs desires, and


concepts that cause him or her to act in a particular manner”
From all these definitions it is obvious that general motivation concerned with efforts
toward any goal. The goal may be good or bad natured. But we will narrow the focus to
organizational goals in order to reflect our singular interest in work-related behavior.

IMPORTANCE OF MOTIVATION

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One of the manager’s primary tasks is to motivate people in the


organization to perform at high levels. This means getting them to work
hard, to be at work regularly, and to make positive contributions to the
organization’s mission. But job performance depends on ability and
environment as well as motivation. The relationship can be stated as
follows.
P = f (M, A, and E)
Where,

P = Performance
M = motivation
A= ability
E= environment

To reach high level of performance, an employee must want to do


the job (motivation), be able to do the job (ability), and have the right
materials and equipment to do the job (environment). A deficiency in any
one of these areas will hurt performance. A manager should thus strive to
ensure that all three of these conditions are met.

Motivation process
Motivation process depicts the sequence through which individual
reduces his or her tension created by unsatisfied need. Motivation process
starts with unsatisfied need and come to end when tension reduced as
follow:

Unsatisfied tension drives search behavior satisfied


reduction of
Need Need
tension

Need occurs when there is discrepancy between current and desired


state of affairs. Simply need means some internal state that makes certain
outcomes appear attractive. An unsatisfied need creates tension that

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stimulates drives within the individual. These drives generate a search


behavior to find particular goals that, if attained, will satisfy the need and
lead to the reduction of tension.
We can say that motivated employees are in a state of tension to
relieve this tension. They exert efforts. The greater the tension, the higher
will be the effort level.

MOTIVATION FRAMEWORK
The basic motivation framework is shown as under

Need
deficiencies

Search for
Need
ways to
reassessment
satisfy needs
Employee

Reward or Goal-directed
punishment behavior

Performance

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The starting point in the process is a need deficiency. A need is


simply a deficiency experienced by an individual. For example, a person
might feel her salary and position are deficient because they do not reflect
the importance to the organization of the work she does. A need triggers a
search for ways to satisfy it. Next comes up the choice of goal directed
behaviors. While a person might actually pursue more than one option at
the same time, most effort will likely be at only one option.
In step four; the person actually carries out the behavior chosen to
satisfy the need. As a result of the performance, reward or punishment will
follow. In this instance, of course, the person will most likely get the raise
and promotion because of the higher performance.
Finally, the person assesses the extent to which the need has been
satisfied. Suppose, for example, the person wants to 10% raise and
promotion to Vice President. If he or she gets both, than he or she should be
satisfied, on the other hand, suppose he/she only get a 7-percent raise and a
promotion to assistant Vice President the person will have to decide
whether to keep trying, accept what he or she did get. Some times, of
course, a need may go unsatisfied altogether despite a person’s efforts.

MOTIVATION AT PEL
NEED THEORY OF MOTIVATION:

Need theory represents the starting point for most contemporary


thought on motivation, although this theory, too, attracted critics. The basic
premise of need theory is that human motivation is caused primarily by
deficiencies in one or more important needs or need categories. Further
more, need theorists have attempted to identify and categorize the most
salient needs, that is, those that are most important to people.
The best –known need theory is Maslow’s hierarchy of needs.

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Hierarchy of needs theory


According to the Maslow’s views there is hierarchy of five needs,
physiological, safety, social, esteem and self-actualization and as each need
is substantially satisfied, the next becomes dominant.
Maslow’s Hierarchy Of Human Needs

General Example Organizational Examples

Achievement Self Challenging Job


Actualization
Needs

Status Job title


Esteem Needs

Friendship Belongingness (social) Needs Friends in work

Stability Security Needs Pension Plan

Shelter Physiological Needs Base salary

Maslow separated the five needs into higher and lower orders.

LOWER-ORDER:
Physiological and security or safety needs were described
as lower-order needs.
HIGHER-ORDER:
Social, esteem and self-actualization were described as
higher-order needs. The difference between the two orders was made on the
premise that higher-order needs are satisfied internally (within the person),
whereas lower- order needs are predominantly satisfied externally (by such
things as pay, union contracts, and tonsure).

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CONCLUSION:
In fact, the natural conclusion to be drawn from Maslow’s
classification is that in time of economic plenty, almost all permanently
employed workers have their lower-order needs substantially met.

MASLOW’S NEEDS THEORY AND PEL :

At PEL, concept of MASLOW about human needs is applied


with different ways. The top management of PEL classify the human rather
employees needs into three
main categories.

1- Basic needs.
2- Social needs.
3- Motivational needs.

The food, shelter, water, air, sex, health which are called
primary needs by researchers fall under category of basic needs while the
social needs are lone, values, companionship and belongingness. The
motivational needs are those needs which are necessary to motivate a
person to show his best such as performance appraisal, pay incentive,
working conditions

Fulfillment of needs at PEL.

As for as needs are concerned the PEL Management is doing its best to
fulfill these needs.
For Example: -
• They give specific percentage of basic salary as house rent which
fulfill the need for shelter.
• They also provide pollution free environment to their employees,
which is basic requirement.

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• They give medical allowance for the employees and provide the
medical facility to the family of employee and they have a doctor
24 hours a day for each shift employees.
Similarly they accommodate the social needs such as: -
• They give a person his due respect.
• They work in a cordially atmosphere.
• They behave with their employees in a supporting and coordinated
manner.
• They provide group insurance, old age benefit and social security
facilities to satisfy the need of security and safety.
For capacitating motivational needs they do: -
• Performance appraisal.
• Money incentives i.e. bonus, pay increment.
• Honesty awards.
• Better working environment.
• Certificate of appreciation.

TWO FACTOR THEORY


FREDERICK HERZBERG and his associated developed the
two- factor theory in the late 1950’s and early 1960’s.Herzberg began by
interviewing approximately two hundred accountants and engineers in
Pittsburgh. He asked them to recall times when they felt especially satisfied
and motivated by their jobs and times. When they felt especially dis-
satisfied and unmotivated. He then asked them to describe what caused the
good and bad feelings. The responses to the questions were recorded by the
interviewers and later subjected to content analysis (In a content analysis,
the words, phrases, and sentences used by respondents are analyzed and
categorized according to their meanings.

Herzberg’s view of job satisfaction:

The traditional Model

Satisfaction
Dis-satisfaction

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According to Herzberg research, the tradition model of satisfaction


and motivation is incorrect. As shown in the above model, job satisfaction
had up until then been viewed as one- dimensional, ranging from
satisfaction to dis-satisfaction. If this were the case Herzberg reasoned,
single set of factor should influence movement back and forth along the
continuum. But because of his research had identified influences from two
different sets of factors, Herzberg agreed that two different dimensions
must be involved.

Herzberg’s Model
Motivational Factors

Satisfaction No-satisfaction

Hygiene Factors
Dis – satisfaction No Dis – satisfaction

Herzberg’s inference that there is one dimension ranging from


satisfaction to no satisfaction and another dimension ranging from
dissatisfaction to no- dissatisfaction. Presumably, the two dimensions must
be associated with two sets of factors identified in the initial interviews.
Herzberg proposed, employees might be either satisfied or not satisfied
and, at the same time, dissatisfied or not dissatisfied.

Motivation and Hygiene factors in the workplace:

Motivation Factors Hygiene Factors

Achievement Company Policy & administration


Recognition Working Condition
Work itself Interpersonal relationship
Responsibility Pay/Salary
Advancement Security
Growth status

MOTIVATION
Satisfaction No satisfaction Dis – satisfaction No-dissatisfaction
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Motivational Factors.

Herzberg identified above motivational factors in the interviews.


Motivational factors such as achievement and recognition, were often cited
by people in the original study as primary causes of satisfaction and
motivation, when present in a job, then factors apparently could cause
satisfaction and motivation, when they were absent, the result was feeling
of no satisfaction, as oppose to dissatisfaction.

Hygiene Factors

The other sets of factors, hygiene factors, came out in the response to
the question about dissatisfaction and lack of motivation. The respondents
suggested the pay, security, supervisor, and working conditions, if seen as
inadequate, could lead to the feelings of dissatisfaction when these factors
were considered acceptable, however, the person was skill not necessary
satisfied, instead, he or she was not dissatisfied.

Motivation Hygiene Theory In Action At PEL.

The management of PEL is very much in agreement with this theory.


They are applying both hygienic factors and motivational factors side by
side to motivate their employees.

MOTIVATIONAL FACTORS:

Following are the important motivational factors used by


management of PEL.

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1- RESPONSIBILITY:
Each and every employee of the organization is concerned as an
asset. The responsibilities are assigned to every employee from worker
level to management level. Every supervisor delegates responsibility and
authority which creates the feelings of self-significance in employees and
they are motivated to exert more efforts. For example manager human
resource that is the incharge of personnel departments delegates his
responsibilities and proportionate authority to training manager and
personnel manager. These two managers perform the personnel function
and report directly to MHR. So in this way responsibility creates the
feeling of self-significance and usefulness, which ultimately results in high
level of motivation.

2- RECOGINITION:

Every employee is PEL, has given his due recognition. Whenever


any employee show his the best performance he gets his reward in term of
money, certificates on by another means in recognition of his performance.
For example, the management after analyzing the performance of every
employee whether he is a worker of supervisor announces a worker of
month and year and a supervisor of the month and year. Worker of the
week is also announced is order to motivate lower level worker. For this
purpose separate performance appraisal forms has been established which
are prepared by incharge of department and according to these forms
employees get their rewards in return as recognition of their performance.

3- ADVANCEMENT:

Performance and behavior is the only criteria for advancement in


PEL. Who ever show these two characteristics can move upward on
organizational hierarchy. There is no concept of favoritism and nepotism.
This is very important motivational factor for hardworking employees.
They realize whenever they perform better they will get their reward and
which will ultimately result in advancement. In house recruitment is very
good example of advancement. Whenever any vacancy appears in

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department, first of all the employees of that department are invited to


come forward meaning that first of all the employees of respective
department are given the chances to get that job. If they have required job
characteristics then management don’t go for out-of house recruitment.
This technique of motivating people to show their abilities is doing well in
PEL.

4- GROWTH:
There are equal chances of growth for every individual in the
organization. Promotions and layoffs are done solely on merit basis without
any discrimination, which motivate employees to give their best.

5- WORK ITSELF:
During the recruitment process the personnel department judges the
interest and the habits of the person and them accordingly they give the job.
In this way they assign that work to an employee, which is of his interest.
So whenever any person gets the work of his interest then work itself
becomes a source of motivation for him.

HYGIENIC FACTORS
1- COMPANY POLICY & ADMINISTRAION:

The policies, rules and regulations are not very much strict. But
policies regarding customers and seniors are somewhat strict. In PEL there
is decentralized style of management. Guidelines come from higher-level
management and middle management prepares and defines the policies
with consultation of every department.
On the very first day every employee gets a complete orientation
with company policies to be familiar with them. During that orientation
employee is told what he can expect from management and what
management expects from him.

2- SUPERVISION:

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Supervision is done in a friendly manner. If any person is not doing


some work properly, his supervisor will talk to him that whether he has
some deficiency of training of some personal problems. If he needs training
then proper training is given to him which increases his confidence level
and as well as productivity. During that period of counseling and training
worker and supervisor understands each other and a good working
relationship develop between them.

3- SALARY AND FRINGE BENEFITS:


Every employee gets and handsome salary package according to his
position and job. For example, for lower level workers, which cannot
afford clean, pressed and near clothes, are provided these by organization.
When they come to the factory before their shift they get their uniform dry-
cleaned from laundry. Medical facilities are given to every member of
organization. Group insurance, gratuity and other facilities are also
available to every member.

4- WORKING CONDITIONS:
Working conditions are very much favorable for every worker.
Proper air-conditioning system maintains a moderate level of temperature.
Hot and cold water is available to every employee. There is no noise and
dust at work places.

5-JOB RIGHTS AND ATATUS:


This concept is very much applicable at middle and upper level of
management. Where every manager can perform according to his rights
and obligations and gets respect according to his status.

6-JOB SECURITY:
Job security is an important hygienic factor to motivate employees.
There are two types of employees.
i) The lower level worker such as electrician, sweeper and
others.
ii) The middle and upper level employees.
The lower level workers fall under labor laws and all matters related
with them are delt according labor laws and acts. Middle and upper levels

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employees work on contract basis and this contract can be broken on one-
month notice from either side. The reasons, which can result in termination
of employees, are: -
• Lack of courtesy towards employees
• Continued violation of policies
• Insubordination/disobedience
• Frequent tardiness and / or absenteeism
• Un-cooperativeness with fellow employees
• Drunkenness/use of drugs
• Absence without leave for more than 10 days
• Abusive towards guest or employees
• Theft, fraud /dishonesty
• Striking work or inciting other to strike out work

7- INTERPERSONNEL RELATIONSHIP:
Working relationships with peers and subordinates is very much
positive. Every person behaves in a cooperative and coordinated manner
with other, which increase the level of confidence and trust among
employees.

EXPECTANCY THEORY:

The basic expectancy theory model was emerged from the work of
Edward Tolman and Kurt Lewin. Victor Vroom, however, is generally
credited with first applying the theory to motivate the workforce.
Expectancy theory argues that the strength of a tendency to act in a certain
way depends on the strength of an expectation that the act will be followed
by a given outcome and on the attractiveness of that outcome to the
individual. In more practical terms, expectancy theory says that an
employee will be motivated to exert a high level of effort when he or she
believes that effort will lead to a good performance appraisal; that a good
appraisal will lead to organizational rewards like a bonus, a salary increase

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or a promotion and that the rewards will satisfy the employee’s personal
goals. The theory, therefore, focus on three relationships

1-Effort ____ performance relationship (expectancy)

2-Performance ______ reward relationship (instrumentality)

3-Rewards __________ personal goals relationship (valence)

These relationships are shown as follows:


Individual Individual Organizational Personal
effort performance rewards goals

EFFORT ____PERFORMANCE EXPECTANCY:

The effort to performance expectancy is the perceived probability


that effort will lead to performance in a person who believes that his or her
effort will to higher performance. This expectancy is very strong, perhaps
approaching to 1.0 (where 1.0 equals to absolute certainty that the outcome
will occur). In the person who feels that his or her performance will be the
same no matter how much effort he or she makes, the expectancy is very
low or close to zero (where zero equals absolutely no chance that the
outcome will occur). The person who thinks there is a moderate
relationship between effort and performance has expectancy somewhere in
between one and zero.

PERFORMANCE _____ REWARDS EXPECTANCY:

The performance to reward expectancy is a person’s perception of


the probability that performance will lead to certain other rewards. If a
person thinks or a performer is certain to get a pay increase, this
expectancy is close to one. At the other extreme, a person who believes that
raised are entirely independent of performance, has expectancy close to
zero. Finally, if a person thinks performance has some bearing on the

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prospects for pay raise, his or her expectancy is some where between one
and zero.

REWARD ______ PERSONAL GOALS RELATIONSHIP:

High-level performance might conceivably produce a pay raise,


promotion, and recognition from the boss, stress and less time rest. The
valence of an outcome is how attractive or unattractive that outcome to the
person. Pay raises, promotions and recognition might all have positive
valences, whereas stress and less time to rest might all have negative
valences.

CONCLUSION;

The basic expectancy framework suggests that three conditions must


be met before motivated behavior will occur.

1. The efforts to performance expectancy must be well above zero. That


is, an individual must have a reasonable expectation that an exertion
of effort will produce high levels of performance.
2. The performance to outcome expectancies must also be well above
zero. An individual must feel that performance may realistically
result in valued outcomes.
3. The sum of all the valences for the potential outcomes relevant to the
person must be positive.
EXPECTANCY THEORY AND PEL:
Expectancy theory is applied in following ways at PEL
1-The main task of high-level management and supervisors is to clarify the
employee’s expectations that efforts lead to performance. The supervisor
motivates his sub-ordinates in a way that to achieve their desired goals they
must put efforts.
2- Every body in the organization support others to achieve their desired
goals, specially the supervisor provide guidelines to his sub-ordinates to
achieve organizational goals. Management always set such goals those
should be attainable, if there is any difficult task, the management give
training to the employees to make it possible to achieve such difficult task.

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3- The administration always tries to give such rewards, which get positive
value from the employees. The management has cafeteria style plan
(written rewards) through which management motivates its employees. The
cafeteria plan is as under

OVERTIME
The employees have the facility of overtime, they spend over time
and management gives extra pay to them and by getting more, employees
become motivated and put their extra efforts to achieve assigned goals.

RETIREMENT BENEFITS
Company provides retirement benefits in the form of gratuity and
Provident fund. For Provident fund the company has scheme of 10%
contribution by employees and 10% by the company. Cumulative provident
fund is paid with interest to employees in cash when he retires or resigns
from the company.

Subsidized Meal.
Company provides the subsidized lunch to its workers and officers.
For night shift, it provides dinner to its employee in the factory mess.

Medical allowances.
Workers with salary Rs.3000/ month have medical facility under the
social security. The personnel having salary more than Rs.3000 monthly
are paid Rs.250 per month as medical allowances. For officers and high
grades there is no limit for medical allowances.

Uniform and Locker facility.


Company gives two uniforms in a year to its workers and also
provides lockers to them for the safety of their personal things.

Loans
Loan are given to the employees from the provident fund, car loans
are also given to the executives level officers.

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Performance Award.
24th of December is celebrated every year as annual day. At that time
award of best attendants and special performance are given to most regular
employees and to those who perform an extra ordinary job.

Group Insurance.
The company insures workers. The company pays all premiums.

Conveyance Allowance.
Company pays Rs.3 per kilometer for car and Rs.1 per kilometer for
motorcycle in case of office work.
4- management always tries to link rewards with performance, for example
promotion of employees based on performance.

EQUITY THEORY
The equity theory of J. Stacy Adam is based on the simple premise
that people want to be treated fairly. The theory defines equity as the belief
that we are being treated fairly in relation to others and inequity ad the
belief that we are being treated unfairly in relation to others.

EQUITY PERCEPTION:
We can see the equity process through the following figure

Evaluation Evaluation Comparison of Feelings of


Of Self Of Other Self with other Equity or
Inequity

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It shows the four-step process by which people form equity


perceptions. Putting this in an organizational setting, the individual first
evaluates how he or she is being treated by the organization. Next, the
individual develops an evaluation of how a “comparison-other” is being
treated. This comparison other might be a person in the same work group.
Someone in another part of the organization. After evaluating the treatment
of self or other, the individual tends to feel either equality or inequality.
Inequality occurs when a person perceives that the ratio of his/her out
comes to inputs and ratio of a relevant’s others outcomes to inputs are un-
equal.
Schematically this is represented as follows.

Person’s outcomes < other’s outcomes


Person’s inputs other’s inputs

Person’s outcomes > other’s outcomes


Person’s inputs other’s inputs
Equity occurs when
Person’s outcomes = other’s outcomes
Person’s inputs other’s inputs
Both the inputs and outcomes of person and other are based upon the
person’s perceptions.
It is important to note that inequity does not come about only when
the person feels cheated. For example, Adam has studied the impact that
perceived overpayment has no inequity. His finding suggested that workers
prefer equitable payment to over payment. Workers on a piece-rate
incentive system who feel overpaid will reduce their productivity in order
to restore equity. More likely, however, is the case of people who feel
underpaid (outcome) or overworked (input) in relation to restore equity in a
way that may be dysfunctional from an organizational standpoint.

RESPONSES TO EQUITY/INEQUITY

The result of an equity comparison can be summarized in the following


figure.

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Equity Motivation to maintain


current situation

Comparison of
self with other Motivation to reduce
inequality.
Inequity 1-change inputs
2-change outcomes
3-after perception of self
4-change comparison
5-leave situation

A feeling of equity motivates the person to maintain the status quo.


She or he will continue to make the same level of input to the organization,
at least as long as his/her outcomes do not change and inputs and outcomes
of the comparison other also do not change. A person who feels inequity,
however, is motivated to reduce it – the greater the in equity, the stronger,
the level of motivation.

METHODS TO REDUCE INEQUITY: By ADAM

1-We may change our own inputs.


2-We may change our own outcomes.
3-We may also alter our perception of self, but it is complex response.
4-We can also alter our perception.

An other way to reduce the inequity is by changing the object of


comparison.
As a last resort, a person may simply leave the situation that is; transferring
to another department or quality altogether may seem to be the only way to
reduce inequity.
EQUITY THEORY AT PEL:
Management always treats the employees equally having the similar
department, rank, work assignment, qualification, and experience. All
employees get equal salaries and incentives who perform similar work and
have equal rank. Furthermore there is no concept of overpayment and

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underpayment. If any situation (overpayment or underpayment) occurs then


the management at once tries to eliminate it.

APPLIED MOTIVATION
JOB DESIGN:

“ The way tasks are combined to form complete jobs”

Job design is the final approach of motivation that simply means,


how the job can be made interesting, creative and attractive.”
Management should design jobs deliberately of the changing environment
as well as the organization, technology and skills, abilities and performance
of its employees. When this is done, employees are motivated to reach their
full productive capabilities. So, we can say that main purpose of job
designing is to make the employees more satisfied, more efficient and
motivated to achieve high level of performance.

Background on job design:

Job design concerns and approaches are usually considered to have


begun with the scientific management movement at the turn of the century.
Pioneering scientific managers such as FREDERKK W. TAYLOR and
FRANK GILBRETH, systematically examined jobs with techniques such
as time and motion analysis their goal was maximize human efficiency in
jobs. Taylor suggested that task design might be the most prominent single
element in the scientific management.

JOB DESIGNING AT PEL.

The ultimate purpose of the job designing is to increase the


performance and satisfaction of the employees. This goal is achieved at
PEL because it follows or designs the job according to following sequence.

Individual needs+ task attributes+ work setting = Performance Satisfaction.

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The management of PEL considers those aspects (individual needs,


task attributes and work setting) while designing the job of its employees.

INDIVIDUAL NEEDS:

The Top management of PEL looks at the individual needs while


designing the jobs of employees. The organizer knows what employees
really need, either they need more work, more tasks to perform, or they
want to increase their growth, they need for social terms or they need
interesting job.

TASK ATTRIBUTES.

Task attributes means what organization’s task offer to its employees


or what types of qualities should be in the task and what is result of task i.e.
it is hard or easy to perform.
The management of PEL sets and assigns tasks according to
capabilities of employees. The executives consider the abilities of
employees whether he or she is capable to do such task or not.

WORK SETTING:

Work setting means environment of organization in which task has to


be accomplished. The management of PEL always provides good
environment to he employees in which they perform their assigned tasks.

JOB ENRICHMENT
“Job enrichment is designing the job by increasing employees level
of control and responsibility”
It is that sense through which employees feel a sense of control,
achievement, autonomy, freedom, and recognition. When there is job
enrichment then employees set their own standard of work and are
responsible for their performance.
Job enrichment was developed in late 1950s. It is based on
Herzberg’s two-factor theory of motivation. Herzberg thought that

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employees could be motivated by positive job related experience such as


feelings of achievement, responsibility and recognition. To this end he
advocated vertical job loading: not only adding more tasks to a job, as in
horizontal loading, but also giving the employee more control over those
tasks. Vertical job loading should enrich a job in six ways.

1- ACCOUNTIBILITY:
Workers should be held responsible for their performance.

2- ACHIEVEMENT:
Workers should feel that they are doing some thing worthwhile.

3-FEEDBACK:
Workers should receive direct and clear information about their
performance.

4- WORK PACE:
To the extent possible, workers should be able to set their own work
pace.

5- CONTROL OVER RESOURCES:


If possible, workers should have control over the resources used in
their jobs.

6- PERSONAL GROWTH AND DEVELOPMENT:


Workers should have the opportunity to lean new skills.
JOB ENRICHMENT LOADS THE JOB VERTICALLY

Job enrichment vertically loads the job that means there are not
necessarily more tasks to perform but more responsibility and autonomy.

HERZBERG’S VIEW:
The history of job enrichment starts from the Herzberg. He proposed how to
incorporate these characteristics into a job. We can see them in this table;

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PRINCIPLES OF VERTICAL JOB LOADING

PRINCIPLE MOTIVATORS

1-Removing some controls while retaining Responsibility and personal


accountability achievement
2-Increasing accountability of individual Responsibility and recognition
for own work
3-Giving a person a complete natural unit Responsibility, achievement
of work and recognition
4- Granting additional authority to an Responsibility, achievement
employee in activity, job freedom and recognition
5- Making periodic reports directly Internal recognition
available to worker himself rather
than the supervisor
6-Introducing new and more difficult Growth and learning
tasks not previously handled
7- Assigning individuals specific or Responsibility, growth
specialized tasks, enabling them to and advancement
become experts.

JON ENRICHMENT AT PEL

At PEL, principles of vertically loading the job are applied by giving


the control to employees over their jobs, to make them accountable for
their jobs and subordinates, a complete unit of work and additional
authority, availability of periodic reports and chances to improve
themselves and avail the opportunity to learn more and new skills to do the
jobs effectively and efficiently. For example, management has reduced the
control over supervisors of production department to give the additional
authority for their material and labor force planning. When they are need of
raw material to assemble the products, they have no need to contact with
production manager to send requisition for providing them with necessary
raw material. They have got the permission to make a request directly to
material department for material. It is the case with deficiency of labor
force, they can contact with personnel manager for workers. When they
feel some difficulty to do their jobs, management provides them an

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opportunity to attend refreshes courses and get training to remove their


difficulties in the jobs and enhance their performance up to the mark. They
can also get their periodic reports after three days.
As they have authority and control over their jobs and sub-ordinates
so they feel that management gave them responsibility and recognition. In
this way they do their jobs effectively and efficiently. The employees are
motivated by the feelings of got the chance for self-development, learn new
and more skills for facing and cope with the difficulties in their jobs. So we
can say this job enrichment model is applicable in Pak Elektron Limited.

JOB CHARACTERISTICS MODEL


Hackman and Oldman developed the most widely recognized model
of job characteristics. This model identifies five primary job characteristics.
This interrelationship and their impact on employee productivity,
motivation and satisfaction. According to the job characteristics model any
job can be described in term of five core dimensions, defined as follows;

1- SKILL CARIETY:
The degree to which a job requires a variety of activities so that an
employee can use a number of different skills and talents.

2-TASK IDENTITY:
The degree to which a job requires completion of a whole and
identifiable piece of work.

3- TASK SIGNIFICANCE:
The degree to which a job has a substantial impact on the lives to
work of other people.

4-AUTONOMY:
The degree to which a job provides substantial freedom,
independence and discretion to the individual on scheduling the work and
determining the procedures to use in carrying it out.

5- FEEDBACK:

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The degree to which carrying out the work activities required by a


job results on the individuals obtaining direct and clear information about
the effectiveness of his or her performance.

Core job Critical psychological Personal and work


dimensions Status outcomes

Skill variety High internal work


Experienced meaning
Task identity motivation.
fullness of work
Task significance
High quality work
Experienced performance.
Autonomy
responsibility for out
comes of work High satisfaction with
the work.
Feed beck
Knowledge of the Low absenteeism and
actual results of the turn over.
work activities

Strength of employee growth


needs

The above figure represents the model. Notice how first three
dimensions i.e. skill variety, task identity and task significance combine to
create meaningful work. What we mean is that if these three conditions
exist in a job, we can predict that the person will view his or her job as
being important, valuable, and worthwhile. Notice, too, that jobs that
possess autonomy give the job incumbent a feeling of personal
responsibility for the results and that if a job provides feeds back; the
employee will know how effectively he/she is performing.

From a motivational standpoint, the job characteristic model


suggested that intrinsic (internal) rewards are obtained when an employee

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learns (knowledge of results through feedback) that he or she personally


(experienced responsibility through autonomy of work) has performed well
on a task that he or she cares about (experienced meaningfulness through
skill verity, task identity, and task significance).
The model suggested that more these three conditions (skill variety, task
identity and task significance) characterize a job, the greater the
employee’s motivation, performance, and satisfaction and lower his or her
absenteeism and likelihood of resigning.

COMPUTING MOTIVATIONAL POTENTIAL SCORE.

Motivational Skill Task Task


potential score Autonomy Feedback
=variety identity significance
(MPS)
3

The core dimensions can be combined in to single index as shown in


the above figure. This figure shows to score high on motivation potential,
jobs must be high on at least one of three factors that lead to experiencing
meaningfulness, and they must also score high on both autonomy and
feedback. If job score high as motivating potential, the model predicts that
motivation performance, and satisfaction will be positively affected while
the likelihood of absence and turnover will be diminished. More specially,
jobs motivating potential score or MPS is calculated according to following
formula.

Motivating potential score=(Variety + Identity + Significance) X autonomy X


feedback
3
Application at PEL:

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Job characteristics model is highly applied at PEL. The management


applies this concept into following ways.

EXPAND JOBS VERTICALLY;


The management of PEL expands the job vertically, which gives
employees responsibilities and controls. It partially closes the gap between
the “doing” and the controlling aspects of job and increases employees’
autonomy.

OPEN FEEDBACK CHANNELS;


Every employee at PEL gets immediate feedback of their work
performance from the supervisors and in this way improves their
performance.

COMBINE TASKS:
The management of PEL combines the tasks and different skills of
employees, which increase skill variety and task identity.

GOAL SETTING THEORY


Edwin A. Locke was the researcher who most decisively showed the
utility of goal setting theory in a motivational context.
Goal setting theory assumes that behavior is a result of conscious
goals and intentions therefore, by setting goals for people in an
organization, a manager should influence their behavior. Given this
premise, the challenge is to develop a thorough understanding of the
process by which people set goals and then work to reach them.
Goal setting theory argues that specific goals increase performance
and those difficult goals, when accepted, result in higher performance than
do easy goals.

GOAL SETTING THEORY AND PEL


The management of PEL sometime assigns easy and routine tasks to
the employees. When any difficult task occurs in the organization, the
executives assign tasks to such employees who have abilities and are
willing to perform such difficult task and management also provides

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special training to meet the requirements of difficult tasks to their


employees. The supervisors also provide guidelines to their sub-ordinates
to achieve these difficult tasks.

MANAGEMENT BY OBJECTIVE (MBO)

Management by objective (MBO) is usually attributed to PETER


DRUCKER, who coined the term and suggested that a systematic approach
to setting of objectives and appraising by results would lead to improve
organizational performance and employee satisfaction.
MBO emphasizes, “Participatively set goals that are tangible,
verifiable and measurable.”
MBO appeals to convert overall organizational objectives into
specific objectives. Lower-unit managers jointly participate in setting their
own goals and MBO works from the “bottom-up” as well as from the “top-
down”

MBO PROCESS
MBO implemented through a series of discrete steps, which are
described in following ways.

STARTING MBO:
MBO must start at the top to be successful. Top management must
stand the program and take the first step by establishing overall goals for
the organization

ESTABLISHMENT OF ORGANIZATIONAL GOALS:


The initial goals are, of course, set by upper level managers. Goals
might relate to sales growth, market share growth, costs, productivity,
employees’ absenteeism and turnover, or any other area important to the
organization.

COLLABORATIVE GOAL SETTING

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Superiors and sub-ordinates then collaborate in setting goals. First,


the organizational goals are communicated to every one. Every manager
then meets with each sub-ordinate. During this meeting, the manager
explains the unit goals to the sub-ordinates and the two of them determine
together how the sub-ordinates can most effectively contribute to those
goals.

PERIODIC REVIEW:
During the period of time set for goals attainment (usually one year),
the manager periodically meets with each sub-ordinate again to check
progress. It may be necessary, for example, to modify goals in the light of
new information, to provide additional resources or to take other action

EVALUATION:
Finally, at the end of the specified time period, managers hold a final
evaluation meeting with each sub-ordinate. At this meeting, the two of
them assess how well goals were met and discuss why. This meeting often
serves as the annual performance review as well, determing salary
adjustment and other rewards based on reaching goals.

MBO IN ACTION AT PEL:


Management by objective is highly appreciative at PEL.
Management applies the concepts of MBO in practice as under.

1-PARTICIPATION:
The management of PEL allows sub ordinates to participate in
decision-making. Meetings are held in which both upper body management
as well lower level workers and supervisors participate. The top
management presents an idea and sub-ordinates give suggestions and
effective suggestions are appreciated by executives. Specially when there is
any difficult task is to perform, then participation of sub-ordinates is
considered very important at PEL.

2-FEED BACK:

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It is very open practice at PEL that during working hours each and
every employee can receive feedback from his or her supervisor. When any
worker feels difficulty in his work, his supervisor guides him immediately
and in this way, worker can monitor and correct his own performance.

3-COMMUNICATION:
Communication is very important to achieve desired goals of the
organization. Top level management accept that, it is their responsibility to
communicate each and every thing clearly to their sub-ordinates regarding
any issue of organization. Goals are clearly defined to the workers and
through training management also tells how to achieve these goals.

CONCLUSION:

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As we have discussed all aspects of motivation and its applications at


PEL, which we observed during the survey and, now in this section we will
conclude our report. Our major concern is with Human Resources and
administration departments of PEL, which implement and gets feedback of
all the policies related to motivation. By framing motivational policies of
different level (high and low) the human resources and administration
department give so much consideration to personality as well as the needs
of the employees. They use different techniques to motivate higher level
executives and middle level supervisors with respect to their personalities
and they use mostly certificate awards, appreciation and promotion
techniques to motivate them. For the lower level workers, they mostly use
money awards incentives such as bonus, overtime incentives, honesty
awards and sometimes supportive attitude of supervisors and participation
in the decision-making.
The PEL management classifies human needs into basic needs,
social needs and motivational needs. For the purpose to motivate the
employees, the organization is fulfilling different needs of them by
providing them shelter, safe environment, medical allowances, insurance
facility, money incentives, attention, affection, guidance from the
supervisors, growth, self respect, self achievement and self esteem. The
result of these activities is high performance, job satisfaction, honesty and
loyalty of employees towards organization.
Recognition, achievement, personality and money are major factors
to motivate the employees. The management of PEL believes that rewards
lead to high performance and participation of employees in decision
making make in possible to achieve difficult organizational goals. All the
goals of different departments are integrated in such a way the completion
of each departmental goal result in achievement of organizational goals.
Job enrichment is another important tool, which use to motivate the
employees at PEL. The management believes by giving more autonomy
and responsibility to the employees increase their performance. When the
employees have control over their work, they feel personal responsibility
and achieve their goals with positive view.
The working environment at PEL is very friendly. There is an open
communication system through which each and every employee can

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approach to high-level authorities. When any employee feels any difficulty


regarding his work, the supervisor is there to support him. Further more,
there is efficient training system that helps and provides an opportunity to
employees to achieve difficult goals.
In short, PEL is performing its motivational activities more
efficiently and effectively which help to achieve organizational goals.

SUGGESTIONS:
During over visit to PEL, we found there were some important
points those are not fulfilling by the management of PEL. By the
fulfillment of these factors the organization can increase performance of
their employees more.
The job enrichment of low workers is very important, but at PEL the
job enrichment is only at top level and middle level but the jobs of lower
level workers are not enriched. We suggest that the management should
enrich the jobs of lower level workers to achieve high-level performance
and to achieve their organizational goals.
Another point that we discussed with the employees is control over
work. They told us that they have control over their routine work not on
non-routine work. We suggest that organization should give control to
employees over their non-routine works, to increase their responsibility and
performance in these non-routine jobs.

MOTIVATION

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