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ENGINEERING MANAGEMENT
FCE 372
GROUP ASSIGNMENTS
PRESENTED BY : VINCENT ODHIAMBO ODHIAMBO
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GROUP MEMBERS
F16/ F16/
F16
F16
F16 F16
F16
F16
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TOPIC ISSUE
Hiring talent is perhaps not as difficult, as is
retaining and keeping them motivated.
While favorable image of an organization may attract
someone to get in, at the same time it is also crucialfor the employees to find appreciation for and
satisfaction from their work.
Elaborate this statement and critically discuss theunderlying issues.
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TABLE OF CONTENTS
Elaboration of Topic Statement
Definitions of Motivation, Job satisfaction and Staff turnover
Staff turnover in depth
Steps in attracting and retaining talented employees
Benefits of having motivated and satisfied employees
Myths about motivation
Theories of employee motivation
Strategies for enhancing job satisfaction and motivation
Challenges in Motivating employees
Managerial Leadership
List of References
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ELABORATION OF TOPIC STATEMENT
Hiring talent is perhaps not as difficult, as is retaining
and keeping them motivated.
While favorable image of an organization may attract
someone to get in, at the same time it is also crucial forthe employees to find appreciation for and satisfaction
from their work.
Elaborate this statement and critically discuss theunderlying issues.
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In spite of having a good Image and Public
relation, an organization still needs to address
issues concerning its employees in order for it tosucceed in retaining them and deriving maximum
output from them.
Employees who are not motivated and feeldissatisfied with their jobs may leave their current
organization for better and more satisfying ones.
It takes more than just attracting good employees,for success of an organization.
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Having talented employees does not necessarilyguarantee desired output in an organization. In dealingwith employees, an intangible factor of will or freedom
of choice is introduced and employees can increase ordecrease their productivity as they choose.
This human quality gives rise to the need for positivemotivation. An employeesperformance can be defined as
being determined by the interaction between ability andmotivation:
Performance = Abilityx Motivation
The first(Ability) determines what he/she can do, thesecond (Motivation)determineswhat he/she will do.
What happens if
Motivation is less than
1
or Greater than 1?
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Therefore motivation is the key element in
management of employees .It is of utmost
importance
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WHAT IS MOTIVATION?
Motivation is the willingness to do something. It is theconsequence of an interaction between the individualand the situation.
People who are motivated exert a greater effort toperform than those who are not motivated.
Motivation is a process which begins with aphysiological or psychological need or deficiencywhich triggers behavior or a drive that is aimed at agoal or an incentive.
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WHAT IS JOB SATISFACTION?
Job Satisfaction is the Degree of enjoyment
employees derive from doing their jobs.
The more the satisfaction, the more willingnessor drive to do the job or engage in a particular
activity.
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WHAT IS EMPLOYEE TURNOVER?
This is the ratio of number of employees that
leave a company to the number of employees on
the payroll.
The reasons for leaving could be resignation,
attrition or dismissal.
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TURNOVER CLASSIFICATION SCHEME
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As Figure above suggests, the first important distinction in
turnover is between voluntary and involuntary.Voluntary turnover is initiated by the employee; for example, aworker quits to take another job. Involuntary turnover is initiated
by the organization; for instance, a company dismisses anemployee due to poor performance or an organizationalrestructuring.
Another important distinction is betweenfunctional anddysfunctional voluntary turnover. Dysfunctional turnover is
harmful to the organization and can take numerous forms,including the exit of high performers and employees with hard-to-replace skills, departures of women or minority groupmembers that erode the diversity of your companys workforce,and turnover rates that lead to high replacement costs.
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By contrast, functional turnover does not hurt an organization.
Examplesof this type of turnover include the exit of poor performers oremployees whose talents are easy to replace.
Some voluntary turnover is avoidable and some is unavoidable.Avoidable turnover stems from causes that the organization maybe able to influence. For example, if employees are leavingbecause of low job satisfaction, the company could improve thesituation by redesigning jobs to offer more challenge or more
opportunities for people to develop their skills. Unavoidableturnover stems from causes over which the organization has littleor no control. For instance, if employees leave because of health
problems or a desire to return to school, there may be little theorganization can do to keep them.
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WHY TURNOVER MATTERS
Turnover matters for three key reasons:
(1) it is costly;
(2) it affects a businesss performance; (3) it may become increasingly difficult to
manage.
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TURNOVER,MOTIVATION AND JOB
SATISFACTION
Job Satisfaction:
Degree of enjoyment employees
derive from doing their jobs
Morale:
An overall positive employee
attitude toward the workplace
Turnover:
The percentage of employees
that leave each year
SATISFACTION/MORALE
TURNOVER
TURNOVER
SATISFACT
ION/MORALE
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STEPS TO ATTRACT AND RETAIN
TALENTED EMPLOYEES
Brilliant marketing campaign
When it comes to attracting people from outsideyour company, one of the most important things is
brand presence. If you have a recognizable brand,built on the back of brilliant and memorablemarketing campaigns, then you become adestination company that people want to work at.
Fun, energetic brands, especially those with humorin their advertising, tend to be magnets for young,ambitious and talented employees.
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Great work environment: flexible, caring
and positive
Companies that support family lifestyles and
really support their employees in times of
need quickly gain a reputation for being great
places to work. Of course, some unscrupulousemployees will take advantage of a supportive
system, but over time a positive environment
tends to gather momentum.
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Offer great work experience for interns
and newcomersMost organizations use internships as an opportunity toget some of those annoying odd jobs finished. Most likelythe intern will then tell their friends that the place is
terrible but, hey, they can now tick it off the to-do list ontheir way to finding somewhere better to work.
If you give an intern an end-to-end task, one in whichthey can work on something at the beginning, rightthrough to completion and then allow them to witness an
effect theyve created (perhaps a small scale marketingcampaign) then you not only provide a great learningexperience but you also give them a reason to come back!
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Know the rates for staff: Make sure its
attractive and not low
Although I often talk about salary as being a
poor motivator of good working performance,
there is a reality that needs to be faced: if you cut
too close to the bone with salary packages then
you are giving an excuse for job applicants to
look elsewhere. You dont have to be excessive,
but you do need to make sure youre not at thevery lowest end of the scale unless you can
provide clear and rewarding career pathways.
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Offer opportunities to learn, travelbecreative!
When you want your talented employees to grow, thefirst thought that most management teams have is topush them towards structured education. Although itis effective, you can be a bit more creative and
memorable than this!Some businesses use employee of the month schemesor a fancy lunch as a reward, but if the aim is toreward your team member andhelp them grow then
think about extending their world exposure. When yougive someone a memorable experience it is much moreexciting and motivating than any of these predictablerewards.
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Career progression and opportunities for
advancement
There is nothing more demotivating than a
ceiling. If someone feels they have reached their
limit within an organization their performancewill plateau and theyll work for comfort. Larger
companies have the benefit of mapping out a
career path and providing promotion as anincentive to work harder and achieve more.
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Profit sharing
When people feel as though they are part of
something bigger they tend to present morealtruistic behaviors and a stronger work ethic.One such method is to offer shares or profitsharing for employees that have done
particularly well, or have been an integral part ofa successful advancement of the company.
Although it is a monetary reward, profit sharing,particularly by way of shares in the company,
works differently because it is not seen as cash.When employees feel like they own part of thecompany they work for, they will likely showmore commitment and pride.
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BENEFITS OF HAVING MOTIVATED AND
SATISFIED EMPLOYEES
A well-motivated workforce can provide the following
advantages:
Better productivity (amount produced peremployee).
This can lead to lower unit costs of production and so
enable a firm to sell its product at a lower price.
Lower levels of absenteeism
This is because the employees are content with their
working lives.
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Lower levels of staff turnover (the number of
employees leaving the business).This can lead to lower training and recruitment costs.
Improved industrial relations with trade unions.
As there are less complains from your employees sinceyou adhere to the unions regulations.
Contented workers give the firm a good reputation asan employer.
This makes it easier for the firm to recruit the bestworkers.
Higher Quality of Service or Product.
Motivated employees are likely to improve product
quality or the customer service associated with a product.
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MYTHS ABOUT MOTIVATION
Myth #1 ---I can motivate peopleNot really -- they have to motivate themselves. You can'tmotivate people anymore than you can empower them.Employees have to motivate and empower themselves.However, you can set up an environment where they best
motivate and empower themselves. The talent lies in knowinghow to set up the environment for each of your employees.
Myth #2 ---Money is a good motivator
Not really. Certain things like money, a nice office and jobsecurity can help people from becoming less motivated, butthey usually don't help people to become more motivated.
A key goal is to understand the motivations of each of your
employees.
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Myth #3 --- Fear is a good motivator
Fear is a great motivator -- for a very short time. That's why
a lot of yelling from the boss won't seem to "light a spark
under employees" for a very long time.
Myth #4 --- I know what motivates me, so I know
what motivates my employees
Not really. Different people are motivated by different
things. I may be greatly motivated by earning time away
from my job to spend more time my family. You might bemotivated much more by recognition of a job well done.
People are not motivated by the same things. Again, a key
goal is to understand what motivates each of your
em lo ees.
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Myth #5 -- "Increased job satisfaction means
increased job performanceResearch shows this isnt necessarily true at all.
Increased job satisfaction does not necessarily mean
increased job performance. If the goals of theorganization are not aligned with the goals of
employees, then employees aren't effectively working
toward the mission of the organization.
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EARLY THEORIES OF MOTIVATION
These include:
Maslows hierarchy of needs
Equity Theory
Mc Gregors Theory X and Theory Y
MotivationHygiene Theory
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MASLOWS HIERARCHY OF NEEDS THEORY
Works on the assumption that the behavior of
individuals at a particular moment is usually
determined by their strongest need.
Based on hypothesis that within every human
being there exists a hierarchy of five needs.
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MASLOWS HIERARCHY OF NEEDS
Self-
ActualizationNeeds
Esteem Needs
Social Needs
Security Needs
Physiological Needs
Self-
ActualizationNeeds
Esteem Needs
Social Needs
Security Needs
Physiological Needs
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Five needs:
1.Physiological: Basic needs of hunger, thirst, shelter,
sex and other body needs. 2.Safety: security and protection from physical and
emotional harm
3.Social: affection, belongingness, acceptance and
friendship 4.Esteem:Need for both self esteem(self respect,
autonomy and achievement) and external esteem (status,recognition and attention)
5. Self-actualization the drive to become what one iscapable of becoming: includes growth, achieving ones
potential, self fulfillment.
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EQUITY THEORY
Outcomes (self)
Inputs (self)
Outcomes (other)
Inputs (other)compared with
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EQUITY THEORY
Employees evaluate their treatment relativeto the treatment of others
Inputs:Employee contributions to their jobs
Outputs:What employees receive in return
Theperceived ratioof contribution to returndeterminesperceived equity
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MC GREGORS THEORY X AND THEORY Y
Theory X
People are lazy.
People lack ambitionand dislike
responsibility.
People are self-
centered. People resist change.
People are gullible
and not very bright.
Theory Y People are energetic.
People are ambitious
and seekresponsibility.
People can beselfless.
People want tocontribute tobusiness growth andchange.
People are
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HERZBERGS MOTIVATION-HYGIENE
THEORY
Based on the conclusion that people have two
different categories of needs:
Hygiene factorsMotivating factors
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HERZBERGS MOTIVATION-HYGIENE THEORY
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STRATEGIES FOR ENHANCING JOB
SATISFACTION AND MOTIVATION
Reinforcement/behavior modification
Additional payments
Non financial motivation programs
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REINFORCEMENT /BEHAVIOR
MODIFICATION
When rewards are tied directly to
performance
When negative consequences are attached directly
to undesirable behavior
Positive Reinforcement
Punishment
A systematic program of reinforcement to encouragedesirable behavior
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ADDITIONAL PAYMENTS
Monetary
Incentives
(Not so relevantfor
Government
employees)
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NON FINANCIAL MOTIVATION
PROGRAMSJob Enrichment
Provides employees with more variety andresponsibility in their jobs
Job Enlargement
The expansion of a workers assignments toinclude additional but similar tasks
Job RedesignA type of job enrichment in which work isrestructured to cultivate the worker-job match
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Employee recognition programs
Employee involvement programs
Employee participationDelegation of duties
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CHALLENGES IN MOTIVATING EMPLOYEES
Varied needs and expectationsEmployees have varying needs andexpectations and what motivates one may notnecessarily motivate the other.
CostlyIn situations where motivation involves givingincentives in form of cash or awards.
Managerial problems
For example, flextime makes it difficult tomonitor employees, and the productionprocess as a whole.
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MANAGERIAL LEADERSHIP
The process ofmotivating othersto work to meet
specific objectives
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Identifying
Resources
Counseling
Setting
Verifiable Goals
& Clear Plans
Meeting
MANAGEMENT BY OBJECTIVESCOLLABORATIVE GOAL-SETTING
Collaborative
Goal Setting &
Planning
Communicating
Organizational
Goals & Plans
Periodic
ReviewEvaluation
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MANAGEMENT BY OBJECTIVE PROCESS
Goal setting
Subordinate participation
Implementation
Performance appraisal and feedback
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PARTICIPATIVE MANAGEMENT
AND EMPOWERMENT
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FIVE FUNDAMENTAL LEADERSHIP
PRACTICES
Challenge the process
Inspire a shared vision
Enable others to act
Model the way
Encourage the heart
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MANAGERIAL STYLES
Contingency ApproachThe appropriate style in any situation is conti ngent on the
unique elements of that situation
Autocratic Style
Democratic Style
Free-rein Style
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THANK YOU
Be a good
motivator
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LIST OF REFERENCE
http://www.managementhelp.org/guiding/moti
vate/basics.htm
http://www.bized.ac.uk/educators/16-
19/business/hrm/activity/motivation.htm
http://www.managementhelp.org/guiding/motivate/basics.htmhttp://www.managementhelp.org/guiding/motivate/basics.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.managementhelp.org/guiding/motivate/basics.htmhttp://www.managementhelp.org/guiding/motivate/basics.htmTop Related