17612213 Organizational Behaviour Pak Elektron Limited

ORGANIZATIONAL BEHAVIOUR (PAK ELEKTRON LIMITED)

PAK ELEKTRON LIMITED

INTRODUCTION 1 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.5- Ensa, France.

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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 VDE. PEL’s Switchboards are sheet fabricated, totally enclosed, floor mounting vermin and dustproof.

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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 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.

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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.

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

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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

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:

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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 workersIf 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 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

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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 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

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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 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.

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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.

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”

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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

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 = PerformanceM = motivationA= abilityE= 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.

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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 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.

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MOTIVATION FRAMEWORK

The basic motivation framework is shown as under

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

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Need deficiencies

Search for ways to satisfy needs

Goal-directed behavior

Performance

Reward or punishment

Need reassessment

Employee


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.

Hierarchy of needs theoryAccording 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

Friendship Friends in work

Stability Pension Plan

Shelter Base salary

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Esteem Needs

Belongingness (social) Needs

Security Needs

Physiological Needs


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).

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

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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. 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,

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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

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

Satisfaction No-satisfaction

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.

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Satisfaction Dis-satisfaction

Motivational Factors

Hygiene Factors


Motivation and Hygiene factors in the workplace:

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.

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Motivation Factors Hygiene Factors

Achievement Company Policy & administration Recognition Working Condition Work itself Interpersonal relationship Responsibility Pay/Salary Advancement Security Growth status

Satisfaction No satisfaction Dis – satisfaction No-dissatisfaction


MOTIVATIONAL FACTORS :

Following are the important motivational factors used by management of PEL.

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

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which will ultimately result in advancement. In house recruitment is very good example of advancement. Whenever any vacancy appears in 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.

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

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

REWARD ______ PERSONAL GOALS RELATIONSHIP:

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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.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

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OVERTIMEThe 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 BENEFITSCompany 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.

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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

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.

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EvaluationOf Self

Evaluation Of Other

Comparison ofSelf with other

Feelings of Equity orInequity


Schematically this is represented as follows.

Person’s outcomes other’s outcomesPerson’s inputs other’s inputs

Person’s outcomes other’s outcomesPerson’s inputs other’s inputs

Equity occurs whenPerson’s outcomes other’s outcomesPerson’s inputs other’s inputsBoth 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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Comparison of self with other

Equity

Inequity

Motivation to maintain current situation

Motivation to reduce inequality.1-change inputs2-change outcomes3-after perception of self4-change comparison5-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 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

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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.

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.

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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 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.

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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;

PRINCIPLES OF VERTICAL JOB LOADING

PRINCIPLE MOTIVATORS

1-Removing some controls while retaining Responsibility and personal accountability achievement2-Increasing accountability of individual Responsibility and recognition for own work3-Giving a person a complete natural unit Responsibility, achievement of work and recognition4- Granting additional authority to an Responsibility, achievement employee in activity, job freedom and recognition5- Making periodic reports directly Internal recognition available to worker himself rather than the supervisor6-Introducing new and more difficult Growth and learning tasks not previously handled7- Assigning individuals specific or Responsibility, growth

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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 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:

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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: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.

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Core job dimensions

Skill variety Task identityTask significance

Autonomy

Feed beck

Critical psychologicalStatus

Experienced meaning fullness of work

Experienced responsibility for out comes of work

Knowledge of the actual results of the work activities

Personal and work outcomes

High internal work motivation.

High quality work performance.

High satisfaction with the work.

Low absenteeism and turn over.

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 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.

=

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

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Motivational potential score (MPS)

Skill variety

Task identity

Task significance

Autonomy Feedback


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 3Application at PEL: 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 THEORYEdwin 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

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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 PELThe 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 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

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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 SETTINGSuperiors 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:

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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: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.

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CONCLUSION: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

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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 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.

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17612213 Organizational Behaviour Pak Elektron Limited

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cumulative

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