For collecting primary data, interviews of the employees of the GVS Pvt. On the other hand, secondary data was collected from various journals, books, online articles, etc. A sample of employees of the company was selected on the basis of simple random probability sampling technique. Qualitative data analysis technique, that is, thematic analysis is applied to analyze the accumulated data as the work is qualitative in nature. The term motivation holds lot of significance not only for the employees working in different organizations, but also for the scholars pursing their career in human resource management.
Therefore, this work has both professional and academic significance. Till date none of the work has been able to draw strict link between motivation and HR policies of a company. Hence, this work tries to fulfil the gap existing in the market. In addition to this, they can evaluate the transparency in their rewards system through this study.
On the other hand, this study is also useful for the professor, scholars and students pursuing HR as one of their subjects.
Finally, scholars researching on similar area can include this study in their literature review section to gain insight on the topic. Human resource management of HRM as it is commonly known as is one of the most important areas in an organization. It deals with management practices which concern with the human capital, that is, people or workers.
In the present business environment, HRM plays significant role as human are the main resource for every organization and therefore it is important for the companies to properly manage them. In many of the research work it has been found that success of any company depends on the methods in which that company manages its workers.
Managers play crucial role in any organization as they are in direct contact with the employees and are nearest to them Gong et al. Hence it is essential for the managers to possess characteristic through which they can easily influence the performance of their subordinates. Although findings of the recent research work on HRM are widely accepted by the companies in present era, but earlier it was not as they were not bear in minds of earlier management.
Although, in the last decade or so a rapid development was seen in the field of human resource management but the activities and practices differ in different nation because of different external factors. The concept of human resource management was developed in the United States of America.
In an industrial revolution was started in the United Kingdom and spread to America. This industrial revolution brought dramatic changes at the workplace in relation to working environment Ichniowski, Shaw and Prennushi, It not only resulted in the speeding in the production process but also contributed in the enhancement of quality and brought dramatic changes for the employees. Before industrial revolution the skills and knowledge of workers very valued very much as most of the workers work as either artisans or farmers.
But invention of machines resulted in significant change in the lives of workers. Now only semi skilled workers were required by the companies who can perform actions in sync with the machines and can handle its operations. Now, there was limited demand for the skilled labours as most of the work was performed by the machines.
In addition to this, hiring a skilled labour adds to the cost. So, all these factors resulted in great deterioration of the working conditions. Since now companies were not dependent much on workers, they started overlooking the needs of the employees Nishii, Lepak and Schneider, As wages of workers were very low, they have to work hard in a dangerous working environment for extended hours.
The conditions become worsen after the end of Second World War. All these situations gave birth to the concept of trade unions. Trade union came into existence to protect the rights of the workers and to develop healthy working environment. He first ever trade union was founded in with an aim to set an eight hour working day and abolish child labor.
As a result of this, in the Fair Labour Act was passed to abolish child labour and to lower the amount of working hours. Since then the trade union have got high popularity among the workers and presently also the trade union fights on the issues of poor working conditions, higher wages and other benefits Osterman, Robert Owne raised his voice for child labor law, regulated working hours and public education.
He focused on selecting the right employee for a particular job and tried to found out the activities and practices which result in motivating employees Pfeffer, He concluded that most important resource for any organization is its human resource and to enhance productivity manager must be capable of establishing better communication between the workers and stimulate them.
He focused on two aspects, authority and incentives and believed that employees give more importance to non monetary rewards such as power and position in comparison to monetary rewards. At the starting when the concept of HRM was quit new, the only purpose of HRM was to protect the rights of the workers and to select right candidate for the right position in the organization. Later on it started focusing on the issue of workers satisfaction and at present the human resource management is primarily responsible for recruiting, training and dismissal of the employees in addition to the above activities.
The foremost important activity of a HRM in an organization is of staffing. Staffing includes strategic human resource planning, recruiting and selection. This is one of the most important tasks for the company as the organization can attain success and sustainability only through proper staffing of employees Wall and Wood, It is essential for the management to put the knowledge, skills and willingness of the employees effectively to the workload. Second important activity for a HRM is conducting training and development activities for the human resource.
Third but the most important activity of HRM is motivation. To retain its employees and to enhance the productivity and performance of the employees and that of company as a whole, it is essential for the management to keep motivating its employees. There are several theories and methods in this regards which are discussed in the later parts of this paper.
Last but certainly not the least; maintenance is also an HRM activity. Every company tries to retain its valuable employees, and thus it is the duty of HRM to maintain healthy and safety relationship between the employees and the organization Gong et al.
It is essential for the present business managers to have adequate knowledge of work psychology which deals with motivation and stimulation so that managers can understand the attitude of the employees towards work. In other words it can be said that people feel motivated towards those activities which result in fulfillment of their needs. If an individual is motivated towards performing certain activity, it means his or her inner power is driving the individual to perform the task.
These inner elements which influence the mind of an individual can be habit, needs, values, interest and ideas. Generally these are the motivating forces for an individual to perform and not to perform any activity. Among all the sources, needs are the main motivating source for an individual Ichniowski, Shaw and Prennushi, Human beings are greatly influenced by the environment in which he or she lives and therefore it is quite obvious that a British person of 40 year age will have different needs than an American.
Thus people tend to compare and perform their task. Even two different persons can have different expectation for a similar job, one may desire for good relationship at the workplace, other may need job security, and when these are fulfilled, they feel satisfied.
There are three main dimensions of motivation, these are; direction, intensity and persistence Nishii, Lepak and Schneider, In the views of Luthans , motivational theories can be defined in two categories.
Firstly are those theories which focus on factors that motivate people. Second category of motivation theories focuses more on cognitive variables and their relation with other variables. American Psychologist came up with a motivational theory which states that human needs can be categorized in five categories and these categories can be arranged in an ordered hierarchy. Psychological needs are placed at the bottom of the pyramid.
It means these needs are the most important needs for all individuals. This includes food, water, sexual satisfaction, etc. Then comes the needs of safety. Human beings want safe and secure shelter and job. Next in the series is a social need which includes belongingness, acceptance in the society and relationship. Forth in the list is the need of esteem which includes both internal self-respect, autonomy, achievement and external status, recognition, attention factors. Finally, it is the needs of self actualization.
This theory is very useful in the business environment as management can determine the method through which it can motivate the employees Pfeffer, For example those worker which have low salary will get motivated by some monetary rewards on the other hand, individuals which earns enough money will get motivated if more power or higher position is rewarded to them.
According to Douglas McGregor, views of human beings can be differentiated into two parts. One are the passive people which are denoted by theory X and remaining are active people which are denoted by theory Y.
Passive people do not like to work and run away from the responsibilities. On the other hand, active people like to take responsibility are have desire to success Wall and Wood, Thus, if manager wants work from passive individual, he needs threaten and control then, whereas, for active individual he must provide them open environment so that they feel motivated and can come up with innovative ideas.
According to him, there are two factors that significantly influence job satisfaction of the employees. First are the motivator factors which leads to motivation but lack of these factors does not result in dissatisfaction. These factors are responsibility, growth, advancement, achievement, reorganization. Such factors includes relationship with supervisor, company policy, supervision, relationship with employees, relationship with peers, working conditions, salary, personal life, status and security.
Frederick Herzberg believes that if a manager wants to motivate his team, he must focus more on motivator factors. Adam proposed equity theory on the basis that people do not live in vacuum and at workplace they keep on comparing themselves with others. For achieving equality in rewarding they keep on comparing their work assignment, knowledge, skills with their peers.
In case of positive imbalance, employee performs necessary actions to gain it again Gong et al. Vroom proposed the expectancy theory of motivation and developed a formula to measure the motivation. The three main variables of the formula are valence, expectancy and instrumentality. Thus, if any of the variables is not present, the value of motivation becomes zero; it means employees are not motivated Guest et al.
After discussing different motivational theories it can be said that before applying any of the theory into practice, managers must first give attention towards their employees.
It is essential to first communicate with them and then plot a picture of their expectations and behavior. Further, none of the theory is fully applicable on any of the situation as all are based on certain assumptions. If an individual is motivated to achieve something or to perform certain action, he or she will put all the efforts in the task.
Thus, it is essential for a manager to hire a motivated person with knowledge, skills and experience because hiring a de-motivated worker with knowledge, skills and experience will not solve the purpose.
Only motivated employees can attain their goals in sync with the goals of the organization. Every organization has two kinds of people. One which are self motivated and do not require any external impulse to perform a task and other which are much more common and requires external impulse to get motivated for completing the assign task Cappelli and Neumark, Three factors play crucial role at the time of evaluation of job performance; motivation, ability and working environment.
Thus, job performance can be defined as:. Motivation is explained in detailed in the above section; ability is related to the physical and mental limits of an individual. It also includes qualification, technical knowledge, training and work experience Flynn, Finally, working environment includes relationship with colleagues and supervisors, the level of safety in the workplace, machines or instruments, etc.
In the past few years there has been lot of talks regarding transparency in reward systems. Transparency in reward system is very important for the organizations and they cannot keep it in isolation. This is the reason companies are facing pressure from employees and other stakeholders to share more and more financial information and this is one of the growing feature of reward architecture Lee, Law and Bobko, The main reason behind this is lack of communication in the organizations and their lack of understanding regarding their reward packages Lee, Law and Bobko, Further, to have better understanding of the financial information, companies need to train their employees so that they can understand how their benefits and rewards are derived.
In this regards the report by Mercer is align with other studies conducted on the similar issues. They found that in most of the cases employees do not have thorough understanding regarding this issue Shaw and Gupta, Moreover, they also found that employees are very eager to know how pay and grading decisions are formulated and how rewarding schemes affects them.
However, if the employees do not have any knowledge regarding interpreting financial information, they are higher chances that they will misunderstand the final outcome and it will affect engagement and motivation.
Thus, it is essential for the companies to make the employees understand that contribution made by them in the company has been recognized and in return they are getting fair rewards. This raised a question that how a firm can link performance with reward without disclosing required information.
Two of the most important concept associated with the perceptions of pay fairness is equity and justice. All the three elements, that is, reward fairness, equity and justice are strongly related to attitude of the employees which include pay satisfaction, intention to quit, commitment and perceived organization support.
In addition to this, these three elements also have their impact on the behaviour of a worker such as individual performance, citizenship behaviour absenteeism and organization outcomes. Perceptions of reward fairness of employees is strongly related to performance, behaviour and attitude of workers, but still it is not clear how reward practices impact these elements. In organization, employees come from varied background with different experience and skill set Cohen and Gattiker, Thus, to motivate all the employees and to achieve sustainability with enhance performance it is essential for the companies to include the concept of fairness in their reward programs.
In addition to this, formulating a fair reward policy becomes more challenging for those firms which operate globally and have to follow different legislative requirements, cultural, traditional, business and norms. The sense of belongingness helps in creating identity of an individual and is simply a human necessity. The GVS group has included belongingness in his philosophy. The company believes in team work and to maintain this in all the aspects of its business management keeps on providing training and development activities to all the new workers GVS , This helps it in achieving synergy and develops positive competition among the workers and because of this company is able to achieve its goals.
Moreover, company communicates necessary financial information to all the stakeholders and standard procedure is followed for calculating bonus for all the employees whether the worker is from lower management or from top management. All the information are floated in the entire organization on monthly basis and thus employee working in the company not only works to fulfil his or needs but also for attaining the goals of the firm GVS , The main difficulty in making every employee feel part of a big family consist in matching cultures and different backgrounds of all the participants from all the states of the world.
The second key point of the GVS is cantered on transparency and communication inside the company. The transparency gives confidence, cooperation and information to all elements of the group.
GVS exploits this idea to make sure that the clarity of the business remains within the company in its evolution.
In many companies, the EBIT is kept secret to the structure, creating a lack of communication between levels and between business elements. This does not happen in the GVS group who firmly believes in communication, transparency and trust inside the corporate strategy. A classic example is the production that has consumed too much material in a short time, increasing product costs and decreasing EBIT or maintenance that has failed to keep the plants as efficient as the target and this has caused increase in the cost of the product.
Finally, another case may be the logistics that has not shipped, the sales that have not sold enough etc. Keeping this transparency every group and every single person knows why the company has been good or bad and knows what their participation in the result was. The objectivity of the bonus and the reward system. This is what GVS wants to avoid absolutely, every single person should be able to monitor their progress in bonuses during the year and the company provides all the necessary tools to do it.
As previously explained the objectives come from the top, then the managing director compiles a series of personal goals based on the strategies of the group that subsequently declined in a number of objectives for all corporate managers and general manager of the geographical groups which in turn directs creating a series of targets for all the groups below them that in some cases open more subgroups going down until the last person in the group.
These objectives must be very clear and should be able to decide the difficulty level of achieving them. Every objective must always be discussed and agreed with the subject because so as to seek challenging but achievable goals. The assigned objectives must be easy to interpret and should be easy to understand so as to decide whether you have achieved them or not, so that every single person in the group will always know at any time in the year if he will receives a bonus or not and what he needs to do to get it.
This allows people to self-evaluate their work, while avoiding subjectivity where the manager decides whether to give or not the bonus and then not disclose the motivations or reasons for the subject. This is a key and an essential step inside the GVS; human resources make this process one of the pillars of corporate strategy, because motivation as Frederic Taylor says in his theory must be a process of economic achievement directly related to personal fulfilment.
GVS firmly believes in challenging but achievable bonus, and this drives the employee to strive in a positive way to get it, reaching a state of self-esteem and satisfaction that will push him to give more to the company and to give more to his team.
If that teacher never gives full marks as may be the boy motivated to give the maximum of him? It is impossible, because it is a system non motivational. GVS has conducted extensive studies on this, going all the motivational theories of historical bonuses and developing it with the tools of today to reach a strategy of stimulating and motivating awards which will work forever keeping the eyes to the long term profit GVS , Everybody have to participate to the company success.
The GVS group is divided into geography subgroups: Each geographical group is then divided into functional subgroups like: Each geographical group is measured on its ability to generate EBIT and within the geographical group each subgroup is measured on its ability to generate EBIT with its activities, with clear objectives that are given at the beginning of the year. Above all geographical groups there is the Corporate Group performance that is measured on its ability to generate EBIT at head level supporting all the geographical groups and rising everybody with the planning and choosing of future strategies.
In this way the objectives are developed in October at a corporate level and then are divided by geographical area and then their individual managers are divided again on the breakout thus having a consistency of objectives from the first to the last person inside the company GVS , This strategy allows the company to make everyone feel the company is developing and this injects confidence and motivation in the employees.
Thus from the above discuss it is clear that to enhance the performance and productivity and to achieve sustainability it is essential for the companies to keep on motivating their employees.
Different employees many have different motivating factors, thus companies must work on different strategies so as to motivate all employees. Moreover it is essential for the organizations to formulate fair reward system. In case if reward systems are not fair enough, employees will compare themselves with other co workers and this will affect the working environment.
Bonus and rewards must be as per the performance of an individual and companies must disclose all the information to all the stakeholders. This is the best mode to keep the worker motivated and injects healthy competition.
In simple language, research refers to systematic examination of subject matter so as to acquire detailed knowledge about the same. To gain certain knowledge, researcher undertakes series of action such as data collection, analysis and interpretation. Accurate investigation and analysis of relevant facts and issues are of paramount importance for quality research.
Several methods, tools and techniques are employed by researcher in order to carry out research in systematic manner and to reach at valid and accurate conclusions Bryman and Bell, For this reason, researcher is required to have adequate knowledge about various methods and tools so that correct methodology can be developed Ethridge, This chapter of dissertation elucidates all techniques and methods that are implemented in present research so as to get better understanding about the topic.
It outlines the research techniques that have been employed to collect, evaluate and analyze the relevant data in order to draw valid inferences. With a view to achieve this aim, following objectives have been formulated:. It defines the background and nature of study.
It helps researcher in drawing accurate and valid conclusions without getting biased. Basically, research philosophy is of two types Interpretivism and Positivism. According to Interpretivism philosophy, world is too vast and complex to understand Williams, Therefore, it is not plausible to develop generalized theories and laws. On contrary, positivism philosopher assumes that everything in this world can be generalized into laws, concepts and theories.
It focuses on investigating the facts and realities so as to gather relevant information for study Newman and Benz, As different companies have different views of HR policies and its impact on employee motivation, therefore Interpretivism philosophy is deemed to be appropriate for present research. Research design provides the framework for carrying out the study in systematic and logical manner. It encompasses four main aspects of study namely research questions, data required for study, methods of collecting data and techniques employed to analyze the data.
Primarily there are four types of research design: An Introduction , n. Descriptive research design has been applied in the present study as the researcher tries to find out the characteristics of the HR policies that lead to employee motivation. This research design will aid researcher in gaining deep insight into the topic. There are two research types; qualitative and quantitative. It concerns with acquiring extensive knowledge and understanding of issues under consideration.
This type of research attempts to assess beliefs, ideas and opinion of individuals regarding the topic, this further aid the researcher in drawing valid conclusions Glesne, While on other hand, quantitative research focuses more on mathematical and statistical concepts and tools with a view to carry out study and derive accurate findings.
It will aid researcher in understanding the views, beliefs and opinion of different professionals regarding the impact of HR polices on employee motivation. Inductive and deductive are two main research approaches. Under deductive approach, theoretical facts and concepts are used in order to make rational inferences which are further verified with the data so acquired.
On contrary, under inductive research approach, new theories and model are developed. Researcher makes general conclusions from specific facts. In addition, this approach allows researcher to make necessary modifications Kumar, Initially the researcher will study the HR policies of company and then will find out their impact on employee motivation. There are two types of data sources that are usually used in collecting relevant data for research study; this include primary and secondary data sources.
Primary data refers to the information that has been gathered for the first time by researcher for the purpose of study. There are myriads of methods for collecting primary data such as interviews, surveys, observation, focus group and questionnaire.
Secondary data refers to the data that has already been collected by some other researcher. This type of data can be gathered from various sources such as books, journals, magazines, online articles, periodicals, annual reports of company, published reports etc Bryman and Bell, The present study employs both types of sources i.
In order to strengthen knowledge regarding HR policies and their effects on employee motivation, various journals, books and periodicals have been explored.
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