Employee Motivation of Grameenphone Theory and Practice

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Introduction: Origin of the report: In today’s world only academic education does not make a student perfect to become competitive with the outside world. This term paper is highly needed to gain practical data, knowledge and experience.Grameenphone limited is a place where we would learn their telecommunicating service and their employee motivation policy. We faced a lot of problems to organize this term paper and I tried my best to fulfill this term paper. As instructed in the course schedule, we had to prepare a term paper of “Employee Motivation of Grameenphone Limited” supervised of Dr. Md. Morshed Hasan Khan, Assistant Professor, Depertment of Markrting, University of Dhaka. Objective: Two types of objectives are given below: Broad objective: To present an overview and brief introduction to GP To learn about the motivation approaches to employees used by GP To learn about dealing with employees 1

Transcript of Employee Motivation of Grameenphone Theory and Practice

Page 1: Employee Motivation of Grameenphone Theory and Practice

Introduction:

Origin of the report:

In today’s world only academic education does not make a student perfect to become

competitive with the outside world. This term paper is highly needed to gain practical data,

knowledge and experience.Grameenphone limited is a place where we would learn their

telecommunicating service and their employee motivation policy. We faced a lot of problems to

organize this term paper and I tried my best to fulfill this term paper. As instructed in the course

schedule, we had to prepare a term paper of “Employee Motivation of Grameenphone Limited”

supervised of Dr. Md. Morshed Hasan Khan, Assistant Professor, Depertment of Markrting,

University of Dhaka.

Objective:

Two types of objectives are given below:

Broad objective:

To present an overview and brief introduction to GP

To learn about the motivation approaches to employees used by GP

To learn about dealing with employees

Special objective:

To gain a relationship between theoretical and practical learning real life situation of

GP

To identify the motivational factors of GP

To identify the different sectors those have direct involvement with employee

motivation

To give some suggestions for the maintenance of employee motivation

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Methodology: Both primary and secondary forms of information have been used to prepare this report. The

details of these sources are highlighted below.

Primary sources: Discussions with the employees of GP

Informal conversation with the employees of customer service

Different manuals of GP

Secondary sources: Annual report of GP

Information regarding the telecommunication service

Different books and periodicals related to the telecommunication sectors

Newspapers

Website information

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Limitation:

Briefly, we face the following limitation during preparing the term paper:

Since GP is a big corporation it was something difficult to us to prepare the term paper

within this time.

One of the main barriers was time shortage.

Due to time shortage, details of many aspects of the motivational factors of GP have been

skipped in this term paper.

It was very difficult to collect adequate data from such a big corporation because of some

divisional and confidential problems.

We also faced some hierarchical formalities.

Employee Motivation of Grameenphone: Theory and practice

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The job of a manager in the workplace is to get things done through employees. To do this the

manager should be able to motivate employees. But that's easier said than done! Motivation

practice and theory are difficult subjects, touching on several disciplines.

Human nature can be very simple, yet very complex too. An understanding and appreciation of

this is a prerequisite to effective employee motivation in the workplace and therefore effective

management and leadership.

These articles on motivation theory and practice concentrate on various theories regarding

human nature in general and motivation in particular. Included are articles on the practical

aspects of motivation in the workplace and the research that has been undertaken in this field,

notably by Douglas McGregor (theory y), Frederick Herzberg (two factor motivation hygiene

theory,) Abraham Maslow (theory z, hierarchy of needs), Elton Mayo (Hawthorne

Experiments) Chris Argyris ,Rensis Likert and Vroom's Expectancy Theory.

Why study and apply employee motivation principles?

Quite apart from the benefit and moral value of an altruistic approach to treating colleagues as

human beings and respecting human dignity in all its forms, research and observations show that

well motivated employees are more productive and creative. The inverse also holds true. The

schematic below indicates the potential contribution the practical application of the principles

this paper has on reducing work content in the organization.

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Motivation is the key to performance improvement:

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There is an old saying you can take a horse to the water but you cannot force it to drink; it will

drink only if it's thirsty - so with people. They will do what they want to do or otherwise

motivated to do. Whether it is to excel on the workshop floor or in the 'ivory tower' they must be

motivated or driven to it, either by themselves or through external stimulus.

Performance is considered to be a function of ability and motivation, thus:

Job performance =f(ability)(motivation)

Ability in turn depends on education, experience and training and its improvement is a slow and

long process. On the other hand motivation can be improved quickly. There are many options

and an uninitiated manager may not even know where to start. As a guideline, there are broadly

seven strategies for motivation.

Positive reinforcement / high expectations

Effective discipline and punishment

Treating people fairly

Satisfying employees needs

Setting work related goals

Restructuring jobs

Base rewards on job performance

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Motivation theorists and their theories:

Although the process of management is as old as history, scientific management as we know it

today is basically a twentieth century phenomenon. Also, as in some other fields, practice has

been far ahead of theory.

.In fact this field has been so devoid of real fundamental work so far, that Herbert A. Simon is

the first management theoretician to win the Nobel Prize for Economics in 1978. His

contribution itself gives a clue to the difficulty, bordering on impossibility, of real fundamental

work in this field concerned with people. In order to arrive at a correct decision, the manager

must have all the information necessary relevant to the various factors and all the time in the

world to analyze the same.

McGregor's Theory X and Theory Y

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Douglas McGregor (1957) developed a philosophical view of humankind with his Theory X and

Theory Y — two opposing perceptions about how people view human behavior at work and

organizational life. McGregor felt that organizations and the managers within them followed

either one or the other approach:

Theory X

People have an inherent dislike for work and will avoid it whenever possible.

People must be coerced, controlled, directed, or threatened with punishment in order to

get them to achieve the organizational objectives.

People prefer to be directed, do not want responsibility, and have little or no ambition.

People seek security above all else.

In an organization with Theory X assumptions, management's role is to coerce and control

employees.

Theory Y

Work is as natural as play and rest.

People will exercise self-direction if they are committed to the objectives (they are NOT

lazy).

Commitment to objectives is a function of the rewards associated with their achievement.

People learn to accept and seek responsibility.

Creativity, ingenuity, and imagination are widely distributed among the population.

People are capable of using these abilities to solve an organizational problem.

People have potential.

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Grameenphone Theory Implication:

Theory Y:

Grameenphone uses the theory Y in the employee motivation process. It gives them opportunity

to work independently. It believes that the employees have the creativity, ingenuity, potential and

self-direction to treat the customers and they take responsibility for their own interest. Sharing

ideas and views with employees and taking an effective and efficient decision with the

participation of employee is a common phenomenon here.

Theory X:

When an emergency situation creates in the organization grameenphone tends to take or apply

theory X for the better interest of the organization. High official decision, strategically formulas

and to protect organization from some uncared employees grameenphone sometimes apply

theory X.

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Herzberg's Hygiene and Motivational Factors

Frederick Herzberg was considered one of the most influential management consultants and

professors of the modern postwar era. Herzberg was probably best known for his challenging

thinking on work and motivation. He was considered both an icon and legend among visionaries

such as Abraham Maslow, Peter Drucker, and

Douglas MacGregor.

Herzberg (1966) is best known for his list of

factors that are based on Maslow's Hierarchy of

Needs, except his version is more closely related to

the working environment:

HERZBERG'S HYGIENE & MOTIVATIONAL FACTORS

Hygiene or Dissatisfies:

Working conditions Policies and administrative practices

Salary and Benefits

Supervision

Status

Job security

Co-workers

Personal life

Motivators or Satisfiers:

Recognition

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Achievement

Advancement

Growth

Responsibility

Job challenge

Grameenphone Theory Implication:

As a leading telecommunication company grameenphone seems to be more careful about their

standards of service and customer satisfaction. Dissatisfactory factors are generally not found but

sometime policies and personal life factors create some dissatisfactory condition in the

organization.

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Motivating factors often are easily found in the grameenphone as a leading company in this

sector .Employees feels motivated with the statue, recognition such as the company always uses

“we” in its recognition stage. Continuous growth and shareholders eagerness to this company

motivates employee to have a chance to work with such a company.

Maslow's Hierarchy of Needs

Unlike others researchers in the earlier days of psychology, Abraham Maslow's based his theory

of human needs on creative people who used all their talents, potential, and capabilities

(Bootzin, Loftus, Zajonc, Hall, 1983). His methodology differed from most other psychological

researchers at the time in that these researchers mainly observed mentally unhealthy people.

Maslow (1970) felt that human needs were arranged in a hierarchical order that could be divided

into two major groups: basic needs and metaneeds (higher order needs):

Basic Needs are physiological, such as food, water, and sleep; and psychological, such as

affection, security, and self-esteem. These basic needs are also called “deficiency needs”

because if they are not met by an individual, then that person will strive to make up the

deficiency.

Metaneeds or being needs (growth needs). These include justice, goodness, beauty,

order, unity, etc. Basic needs normally take priority over these meta needs. For example,

a person who lacks food or water will not normally attend to justice or beauty needs.

These needs are normally listed in a hierarchical order in the form of a pyramid to show that the

basic needs (bottom ones) must be met before the higher order needs:

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5. Self-actualization — knows exactly who you are, where you are going, and what you

want to accomplish. A state of well-being.

4. Esteem — feeling of moving up in world, recognition, few doubts about self.

3. Belongingness and love — belong to a group, close friends to confide with.

2. Safety — feel free from immediate danger.

1. Physiological — food, water, shelter, sex.

Grameenphone Theory Implication:

As a leading telecommunication company grameen phone seems to be more careful about their

standards of service and employee motivation. As a human being employee here tends to find a

good working life . standard salary which serves as basic need of an emoployee,job safety unless

any kinds of unwanted occurrence works as safety needs, group working which fulfills belonging

needs,

GP uses “we” in their formal work standards this fulfills the recognition needs, the need is totally

employee personal factor but as far as we know a high recognition is given for an employees

total contribution in the organization through the whole life.

Chris Argyris Theory:

According to Argyris, organization needs to be redesigned for a fuller utilization of the most

precious resource, the workers, in particular their psychological energy. The pyramidal structure

will be relegated to the background, and decisions will be taken by small groups rather than by a

single boss. Satisfaction in work will be more valued than material rewards. Work should be

restructured in order to enable individuals to develop to the fullest extent. At the same time work

will become more meaningful and challenging through self-motivation

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Grameenphone Theory Implication:

The employee motivation of Grameenphone mostly follow the small group based works rather

than the boss based works and also they follow the satisfaction in workplace rather material

rewards. They emphasize the work restructured in order to enable individuals to develop to the

fullest extent. Grameenphone also tries to motivate their employees individually that their work

time will become more meaningful and challenging through self motivation.

Rensis Likert Theory:

Likert identified four different styles of management:

exploitative-authoritative;

benevolent-authoritative;

consultative;

participative.

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The participative system was found to be the most effective in that it satisfies the whole range of

human needs. Major decisions are taken by groups themselves and this results in achieving high

targets and excellent productivity. There is complete trust within the group and the sense of

participation leads to a high degree of motivation.

Grameenphone Theory Implication:

Grameenphone uses these four types of styles to motivate their employees in their different

situations when they face any types of employee motivation problems. When the employees

don’t be motivated then the company uses the exploitative-authoritative motivation program and

also uses the benevolent-authoritative. By counseling they use the consultative motivation

program and by the participation of all employees they user the participative motivation

program.

Vroom's Expectancy Theory:

Vroom's Expectancy Theory (1964)states that an individual will act in a certain way based on the

expectation (belief) that the act will be followed by a given outcome and on the attractiveness of

that outcome to the individual. This motivational model has been modified by several people, to

include Porter and Lawler (1968). Vroom's Expectancy Theory is written as a formula:

Valence x Expectancy x Instrumentality = Motivation

Valence (Reward) = the amount of desire for a goal (What is the reward?)

Expectancy (Performance) = the strength of belief that work related effort will result in

the completion of the task (How hard will I have to work to reach the goal?)

Instrumentality (Belief) = the belief that the reward will be received once the task is

completed (Will they notice the effort I put forth?)

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Grameenphone Theory Implication:

The employee will work more and more when their outcome will be equal or more than their

expectation. They will be also motivated when a relationship between what they want and what

they get is positive. If the company evaluates their employees work then the employees will be

motivated to do more work to gain performance reward and Grameenphone does these kinds of

works for motivating their employees.

Theory Z:

In THEORY Z, (William G. Ouchi 1981) describes the art of Japanese management and shows

how it can be adapted to American companies. He takes readers behind the scenes at several U.S.

corporations making the Theory Z change and shows step-by-step how the transition works.

Ouchi also examines the corporate philosophies that have become blueprints for Theory Z

success, and looks at the evolving culture of “Z” people in society.

Professor Ouchi's new theory of management promises to change the way managers and

employees alike think about their jobs, their companies, and their working lives. Theory Z,

according to the best management minds in America, will soon take its rightful place in

everyone's business vocabulary.

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Grameenphone Theory Implication:

Grameenphone uses this theory when they face the problem of change their internal and external

changing program in their organization. The management of Grameenphone promises to change

the way managers and employees alike think about their jobs, their companies, and their working

lives.

Organization Profile:

Organization Vision:

We exist to help our customers get the full benefit of communications services in their daily

lives. We’re here to help.

Organization Mission:

Grameenphone is the only reliable means of communication that brings the people of

Bangladesh close to their loved ones and important things in their lives through

Unparalleled network, relevant innovations & services.

Organization Values:

MAKE IT EASY

Everything we produce should be easy to understand and use. We should always remember that

we try to make customers’ lives easier.

KEEP PROMISES

Everything we do should work perfectly. If it doesn’t, we’re there to put things right. We’re

about delivery, not over-promising. We’re about actions, not words.

BE INSPIRING

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We‘re creative. We bring energy and imagination to our work. Everything we produce should

look fresh and modern.

BE RESPECTFUL

We acknowledge and respect local cultures. We want to be a part of local communities

wherever we operate. We want to help customers with their specific needs in a way that

suits way of their life best.

Board of Directors

The Board of Directors and the Management Team of Grameenphone are committed to

maintaining effective Corporate Governance through a culture of accountability,

transparency, well-understood policies and procedures. The Board of Directors and the

Management Team also ensure maintaining of compliance with all applicable laws of

Bangladesh and internally developed policies, procedures and controls.

Chairman

Sigve Brekke

Directors Independent Director

Dr. Jamaluddin Ahmed FCA

Nurjahan Begum

Hilde Tonne

M. Shahjahan

Per Erik Hylland

Md. Ashraful Hassan

Knut Borgen

Snorre Corneliussen

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Management Team

Oddvar Hesjedal, Chief Executive Officer

Raihan Shamsi, Deputy CEO & Chief Financial Officer

Frode Stoldal, Chief Technology Officer

Arnfinn Groven, Chief People Officer

Kazi Monirul Kabir, Chief Communications Officer

Arild Kaale, Chief Marketing Officer

Mahmud Hossain, Acting Chief Corporate Affairs Officer

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Literature review:

The project work entitled a STUDY ON EMPLOYEE MOTIVATION with Grameenphone

Ltd; Grameenphone is mainly conducted to identify the factors which will motivate the

employees and the organizational functions in Grameenphone Ltd. Management’s basic job is

the effective utilization of human resources for achievements of organizational objectives. The

personnel management is concerned with organizing human resources in such a way to get

maximum output to the enterprise and to develop the talent of people at work to the fullest

satisfaction. Motivation implies that one person, in organization context a manager, includes

another, say an employee, to engage in action by ensuring that a channel to satisfy those needs

and aspirations becomes available to the person. Employee motivation is one of the major issues

faced by every organization. It is the major task of every manager to motivate his subordinates or

to create the ‘will to work’ among the subordinates. It should also be remembered that a worker

may be immensely capable of doing some work; nothing can be achieved if he is not willing to

work. A manager has to make appropriate use of motivation to enthuse the employees to follow

them. Hence this studies also focusing on the employee motivation among the employees of

Grameenphone Ltd.

Findings:

To finish this term paper, we find that Grameenphone covers a lot of works for the motivation of

their employees. As Grameenphone is the largest telecommunication company in our country so

their employee motivation is more better than the other telecommunication company. Especially

Grameenphone uses the consultative and supportive leadership program for motivating their

employees in the workplace so that they can easily improve the productivity. After the entire

employee motivation of Grameenphone Limited is more appreciated than others.

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Conclusion:

There is no simple answer to the question of how to motivate people. Can money motivate? Yes,

but money alone is not enough, though it does help. We have discussed some of the pertinent

theories bearing on human motivation and this is balanced by some of the practical factors which

can lead to excellence. Human resource remains the focal point and leadership the critical

component, and motivation has to be 'tailored' to each individual. The next section deals with an

important mode of motivation, namely financial aspects of rewarding employees.

Recommendation:

The recommendations for Grameenphone Ltd. should follows which are given bellow:

As a competitive market, the company should become more innovative and

competitive for their own benefit.

As Grameenphone is the largest organization so they should improve their

customer satisfaction and employee motivation system.

For motivating employee they should give the employees some incentive and

promotional packages.

They should ensure the safety working conditions for the motivating

employees for their own betterment.

They should give the profit sharing opportunities for the employees that

employees will be motivated to work more and more.

They should give the emphasis on the empowerment of employees.

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References:

David A. DeCenzo, Stephen P. Robbins (2007-2008), “Fundamentals of Human

Resource Management” – 8th edition, Liberty of congress cataloging-in-publication Data

(34-52)

John W. Newstorm, Keith Davis-Organizational Behavior: human behavior at work-11th

edition, Tata McGraw-Hill Edition (2003-2004).

Argyris, Chris (1994). “Good Communication That Blocks Learning.” Harvard

Business Review, 72(4), 77-85.

Argyris, Chris and D. Schoen (1996). Organizational Learning II: Theory Method, and

Practice. Reading, MA: Addison-Wesley.

www.wikipedia.com.

www.google.com.

Appendix:

McGregor's Theory X and Theory Y

Herzberg's Hygiene and Motivational Factors

Maslow's Hierarchy of Needs

Chris Argyris Theory:

Rensis Likert Theory:

Vroom's Expectancy Theory:

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Theory Z:

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