joslyn sip
TRANSCRIPT
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Executive Summary
The project title An analysis on employee motivation and its effect on employee
productivity has been undertaken in the MCF Mangalore plant for a period of 6 weeks in the
organization and got an opportunity to study the different functional areas. I also studied the
various HR strategies and functions of the company.
As production management has to do mainly with how, when and where products are to
be made, it is more important in manufacturing firm than in any other business organization.
The primary objective of production is to ensure quality product and service on a continuing
basis with least possible cost both for the unit and its customers.
The finance department concerned with establishing an effective system of finance and
cost accounting.
The maintenance department ensures proper inspections, storage and issuing materials like
Naphtha, Fuel oil and other bulk consumables like bags equipments and spares.
Managing the man power is the most important in any organisation. It is a challenging
task because of the dynamic nature of people. No two people are the same in their mental
ability, personality or knowledge etc hence to manage them is a great task. Human resource
service at MCF Ltd supports the company to fulfil our commitment to excellence in
productivity, customer focus and community services. Our primary objective is to foster a
work environment in the company to achieve the goals of the organization.
The Company was running under a loss some years ago but due to the invention and
adoption of new technology, now has a great turnover. It has adopted most of the safety
measures for the benefits of workers. The total productive management, the 5 S approach and
TQM have helped the company to revive and grow.
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Mangalore Chemicals and Fertilizers Limited (MCF), with a turnover of over Rs. 2,520.11
Crores (FY 2010-2011), is the only manufacturer of chemical fertilizers in the state of Karnataka.
The factory is strategically located at Panambur, 9 km north of the Mangalore city, on the banks
of the River Gurpur opposite the New Mangalore Port. The plant is well-connected, both by rail
and road. The West Coast National Highway (NH-17) from Kochi to Mumbai separates MCF
from the New Mangalore Port Trust.
The Company is a part of the UB Group with Group shareholding of 30.44%. Dr. Vijay
Mallya is the Chairman of the Board of Directors. The operations are managed by a team of
highly dedicated and experienced professionals.
The New Mangalore Port is an all weather port capable of handling ships up to 30 feet
draft. The main raw materials like Naphtha, Fuel oil, Ammonia and Phosphoric acid are obtained
through the port.
The company has the capacity to manufacture 2,17,8800 MT ammonia (intermediate
product), 3, 79,500 MT Urea, 2, 55,500 MT Phosphate Fertilizers (DAP & NP 20:20:00:13), 15,
330 MT Ammonium Bi-Carbonate (ABC) and 33,000 MT Sulphuric acid (SAP) annually. The
design and engineering of the Ammonia/Urea Plants were done by Humphreys & Glasgow
Limited, London, a leading international firm in the fertilizer field and their associates,
Humphreys and Glasgow Consultants Pvt. Ltd., Bombay. (The firm has now merged with Jacobs
Engineering, USA). The Phosphate Plant is designed and engineered by Toyo Engineering
Corporation, Japan. PDIL and Furnace Fabric- these Indian firms were involved in the
construction of ABC and SAP respectively.
The construction work started with the first pile driven on October 15, 1972 by the then
Chief Minister, Shri D. Devaraj Urs. The Ammonia/Urea plants were commissioned in March 15,
1976.
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What do you mean by the word problem?A problem is a system at unrest (Russell Ackoff and Emery 1972). A system is
anything (subject, object, property or event) that is made of two or more parts.
There are 4 kinds of problems
1. Simple problem
2. Complex problem
3. Unstructured problem
4. Wicked problem
Business today is problem resolution management. There are several major problems that
have to be resolved both at the global and national levels, the industry and corporation level and
the internal departmental and divisional/functional levels.
Taxonomies for Classifying Business Management Problems
Is it a market related?Yes it is an unmet need, want or desire. The motivational techniques currently are
traditional are outdated. They need to be revised with the help of innovational ideologies. The
want of deserving something better so as to keep happy the employees in their work life is the
need of the hour at MCF.
After all its only through employee motivation that results in his job involvement that
also results in increased productivity.
Is it a product- related?Yes definitely it is cost related: high investment is done to design and to implement the
training program in order to effectively conduct the training.
Is it a legal problem?Not applicable
Is it environment- related problem?Not applicable
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Upstream, Midstream & Downstream Value Chain Innovation
Upstream value chain relates to ideation, concept development, planning, budgeting and
the like until the new product is designed and engineered.
Midstream value chain relates to the proper sizing, shaping, streaming, packing, bundling
and the like stages until the product / service is market ready.
Downstream value chain deals with commercialization and relates to pretest marketing ,
test marketing & accordingly , pricing, promoting , retailing , advertising and launching strategies
and processes. (Evidence: observational study/questionnaire/data analysis)
Upstream Business Functional Value Chain Innovation
Old and new employee motivation and morale boosting strategies and procedures.This is supported by my study and observation on employee motivation at MCF. Motivation is
that factor that helps boost an employees morale and compels to like his job. An employee if
satisfied with his job tends to perform better and meet his/her targets as per the organizations
goals.
During my 6 weeks observational research at MCF, Panambur the employees have a sense of
pride, although working in an organization with a traditional working atmosphere with no
recreational facilities.
SIP is primarily engaged in problem identification, problem definition, problem formulation,
problem specification, and secondary data collection to situate the problem, primary data
collection to throw further light on the problem and its solution alternatives; problem-resolutions
investigation and alternatives assessment, final problem resolution selection, and final resolution
consequences assessment.
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Competitors:
Zuari Industries Rashtriya Chemical Nagarjuna Fertilizers Chambai Fertlizers
To what extent are the controllable variables associated with quality?
The above mentioned controllable variables have a direct relationship on the mind-set of the
employee which could affect their productivity. Making the necessary changes in the motivational
factors may result in improved work life quality of both the employee and the organization as a
whole. The revision and introduction of new innovative motivational techniques will attract the
employee into his/her job.
To what extent are the uncontrollable variables associated with employees?
Motivational factors boost an employees productivity level which helps in achieving the
organizational goals. The relationship is intense enough that any uncertain change in any of the
motivational factors will lead to an ill-effect on employees performance at work and will in turn
affect the organizations productivity.
Categorize variables into controllable and uncontrollable from the consumers viewpoint
Controllable variables: Uncontrollable variables
Traditional motivational techniques Attractive job offers ( Naukri.com,
Monster.com, Kareer edge.com, Likedin etc)
Regulation and compliance Employee intrinsic motivation
Performance Appraisal system Government policies
Recreational facilities Family
Promotional Activities
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Problem specification involves asking the relevant questions to ask about every problem.
Problem specification investigates who did wrong, what went wrong, how, when, where, how
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often, with whom, how and why? The more relevant questions you ask the right way with the
right people, the more complete is problem specification.
Traditional motivational techniques, Performance appraisal system, Promotional activities& Attractive job offers ( Naukri.com, Monster.com, Kareer edge.com, Likedin etc) and
Social networking sites (Orkut Facebook, Google+)
The relationship between these variables is that they are contradicting terminologies.
Employees are attracted towards new job offers in the business world as the motivational factors
in their existing company seem to be less attractive. With the introduction of new innovative
methods in the motivational techniques, Performance appraisal system, Promotional activities
there will be a reduction in the attrition rate and an increase in the performance of employees.
Monetary benefits & Inflation and RecessionMost employees feel that monetary benefits are a source of motivation and some even work
just for the sake of money. Providing these employees with additional monetary benefits in form
of insurance schemes, incentive plans, hike in salary on a timely basis will help motivate them in
times against inflation and recession.
Regulation and compliance & Government policiesThe organizational has certain criterias as per which the employees are provided with
benefits that motivate them to perform better. The introduction of policies in favor of the
employee, induce the organizations to make provisions for the employees.
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TABLE No: 1
Total Sample Size 60
STATEMENT SHOWING THE EDUCATIONAL QUALIFICATION
PUC Graduation Post Graduation Any Other Please Specify(Diploma)
NIL 28 19 13
CHART No: 1
CHART SHOWING THE EDUCATIONAL QUALIFICATION
INTERPRETATION
Here among the 60 data samples collected 32% are post graduates, 47% are graduates and 22%
are diploma holders.
POST
GRADUATION
GRADUATION PUC ANY OTHER
(DIPLOMA)
32%
47%
0%
22%
Educational Qualification
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TABLE No: 2
STATEMENT SHOWING THE FUNCTIONAL DEPARTMENTS
HR Finance Operations Systems Logistics Safety
15 14 14 1 13 3
CHART No: 2
CHART SHOWING THE RESPONDENTS IN THE FUNCTIONAL DEPARTMENTS
INTERPRETATION
2% belong to the logistics dept, 5% belong to the safety dept, 25% belong to the HR dept, 23%
belong to the finance dept, 23% belong to the Operations dept and 22% belong to the Systems
department.
HR
25%
FINANCE
23%
OPERATIONS
23%
SYSTEMS
22%
LOGISTICS
2%
SAFETY
5%
Respondents in the Functional Departments
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TABLE No: 3
STATEMENT SHOWING THE EMPLOYEE TENURE AT MCF
1 to 5 years 6 to 10 years 11 to 15 years 16 to 20 years Above 21 years
5 16 21 13 5
CHART No: 3
CHART SHOWING THE EMPLOYEE TENURE AT MCF
INTERPRETATION
8% of the 60 employees interviewed have worked between 1-5 years, 27% have worked between
6-10 years, 35% have worked between 11-35 years, 22% have worked between 16-20 years and
8% have worked for above 21 years at MCF, Panambur Mangalore
1 TO 5 YEARS 6 TO 10 YEARS 11 TO 15 YEARS 16 TO 20 YEARS ABOVE 21
YEARS
8%
27%
35%
22%
8%
EMPLOYEE TENURE AT MCF
IN PERCENTAGE
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1. Does the mission or purpose of your company make you feel your job is important?
INTERPRETATION
80% employees believe that the mission of MCF suits their job profile, 3% dont believe it to be
so and 17% believe that it may be linked to their jobs.
YES NO MAY BE
80%
3%
17%
IMPORTANCE OF JOB BASED ON
COMAPNY MISSION OR PROFILE
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2. Your opinion on the communication system followed in the organization?
Interpretation:
27% employees are highly satisfied with the communication system, 35% are satisfied, 20% have
a neutral approach, 12% are dissatisfied and 6% are highly dissatisfied with the communication
system at MCF.
27%
35%
20%
12%6%
COMMUNICATION SYSTEM IN THE
ORGANISATIOINHIGHLY SATISFIED SATISFIED NEUTRAL
DISSATISFIED HIGHLY DISSATISFIED
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3. Is the management at MCF really motivating the employees
Interpretation:
34% employees believe that they highly agree with motivational practices at MCF, 20%
employees believe that they agree, 43% have a neutral opinion, 25% disagree and 1% highly
disagree.
\
STRONGLY
AGREE
AGREE NEUTRAL DISAGREE SRTONGLY
DISAGREE
34% 20% 43% 2% 1%
MOTIVATION PROVIDED TO
EMPLOYEES
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4. Which type of incentives motivates you more?
Interpretation:
23% employees are motivated by financial incentives, 15% are motivated by non-financial factors
and 62% are motivated by both the factors.
FINANCIAL
INCENTIVES
NON-FINANCIAL
INCENTIVES
BOTH
23%
15%
62%
MOTIVATIONAL FACTORS
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5. Rank the following factors which motivates you the most?(Rank 1, 2, 3, 4. respectively)
Interpretation:
30% employees say that an increase in salary motivates them better, 35% say that promotion
motivates them, 10% say that a leave absence motivates them, 10% say motivational skills and
15% say that recognition in the company motivates them.
30% 35% 10% 10% 15%
SALARY
INCREASE
PROMOTION LEAVE MOTIVATIONAL
SKILLS
RECOGNITION
RANKING MOTIVATIONAL FACTORS
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6. How far you are satisfied with the incentives provided by the organization?
Interpretation:
20% are highly satisfied with the incentives, 13% are satisfied, 39% have a neutral approach, 15%
are dissatisfied and 13% are highly dissatisfied.
20%
13%
39%
15%13%
SATISFACTION LEVEL WITH REGARDS
TO INCENTIVESHIGHLY SATISFIED SATISFIED NEUTRAL
DISSATISFIED HIGHLY DISSATISFIED
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7. Do you think that the incentives and other benefits will influence your performance?
Interpretation:
90% of the employees performance is influenced by the incentives, 7% are not influenced and
3% have no opinion about it.
90%
7%3%0%
20%
40%
60%
80%
100%
INFLUENCE DOES NOT INFLUENCE NO OPINION
INFLUENCE OF INCENTIVES ON
PERFORMANCE
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8. Are you satisfied with the opportunities you have at work to learn and grow?
Interpretation:
12% are highly satisfied with the opportunities at MCF, 28% are satisfied with the opportunities,
40% are neutral, 15% are dissatisfied and 5% are highly dissatisfied.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
HIGHLYSATISFIED
SATISFIED NEUTRAL DISSATISFIED HIGHLYDISSATISFIED
SATISFACTION WITH OPPORTUNITIES
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9. Rate the Training and development program given to employees at MCF
Interpretati
on:
35% are
highly satisfied, 17% are satisfied, 33% are neutral, 10% are dissatisfied and 5% are highly
dissatisfied about the training and development program at MCF.
35%
17%
33%
10%
5%
TRAINING AND DEVELOPMENT
PROGRAM
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10.Does the management involve you in decision making which are connected to yourdepartment?
Interpretation:
20% say that are involved in the decision making of the company, 10% are not involved and 70%
are occasionally involved in the decision making process
YES NO OCCASIONALY
20%10%
70%
EMPLOYEE INVOLVEMENT IN DECISONMAKING
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11.Are you satisfied with the recreational facilities provided by the organization?
Interpretation:
25% are highly satisfied, 30% are satisfied, 35% have a neutral approach, 6% are dissatisfied and
4% are highly dissatisfied with the recreational facilities provided by MCF
25%
30%
35%
6%
4%
10%
SATISFACTION WITH RECEREATIONAL
FACILITIESHIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED
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12.Tick the appropriate boxes:a. Need for a reasonable periodical increase in salary
Interpretation:
60% employees strongly agree that they need an increase in salary, 30% agree, 5% are neutral,
2% disagree and 3% disagree with the fact that they need an increase in salary.
STRONGLY
AGREEAGREE
NEUTRAL
DISAGREE SRTONGLY
DISAGREE
60%
30%
5%2%
3%
INCREASE IN SALARY
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b. Job security exists in the company
Interpretation:
55% strongly agree, 20% agree, 20% are neutral, 3& disagree and 2% strongly disagree that there
exists job security at MCF.
STRONGLYAGREE
AGREE NEUTRAL DISAGREE SRTONGLYDISAGREE
55% 20% 20% 3% 2%
JOB SECURITY
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c. Good relationship with co-workers
Interpretation:
60% strongly agree, 20% agree, 10% are neutral, 6% disagree and 4% strongly disagree that they
have a good relationship with co workers.
60%20%
10%
6%4%
GOOD RELATION WITH CO WORKERSSTRONGLY AGREE AGREE NEUTRAL
DISAGREE SRTONGLY DISAGREE
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d. Effective performance appraisal system
Interpretation:
40% strongly agree, 35% agree, 35% are neutral, 10% disagree and 10% strongly disagree with
the fact that MCF has an effective performance appraisal system.
40%35% 35%
10% 10%
STRONGLYAGREE
AGREE NEUTRAL DISAGREE SRTONGLYDISAGREE
EFFECTIVE PERFORMANCE
APPRAISAL SYSTEM
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e. Effective promotional opportunities in the organization
Interpretation:
20% strongly agree, 10 agree, 40% are neutral, 20% disagree and 10% strongly disagree with the
effective promotional activities at MCF.
STRONGLY
AGREE
AGREE NEUTRAL DISAGREE SRTONGLY
DISAGREE
20% 10% 40% 20% 10%
EFFECTIVE PROMOTIONAL
OPPORTUNITIES
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f. Good safety measures adopted in the organization
Interpretation:
60% strongly agree, 25% agree, 10% are neutral, 3% disagree and 2% strongly disagree that MCF
has good safety measures at its Mangalore Production Plant.
STRONGLYAGREE
AGREE NEUTRAL DISAGREE SRTONGLYDISAGREE
60% 25% 10% 3% 2%
GOOD SAFETY MEASURES
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g. Performance appraisal activities are helpful to get motivated
Interpretation:
57% strongly agree, 13% agree, 23% are neutral, 4% disagree and 3% strongly disagree that the
performance appraisal system at MCF helps getting motivated.
STRONGLY
AGREE
AGREE NEUTRAL DISAGREE SRTONGLY
DISAGREE
57% 13% 23% 4% 3%
PERFORMANCE APPRAISAL HELPS
MOTIVATION
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h. Support from the co-worker is helpful to get motivated
Interpretation:
30% strongly agree, 23% agree, 37% are neutral, 3% disagree and 7% strongly disagree that there
exists support from co workers that helps in motivation.
30%
23%
37%
3%
7%
STRONGLYAGREE
AGREE NEUTRAL DISAGREE SRTONGLYDISAGREE
SUPPORT FROM CO WORKERS HELPS
MOTIVATION
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i. Company recognize and acknowledge your work
Interpretation:
20% strongly agree, 30% agree, 35% are neutral, 10% disagree and 5% strongly disagree that the
company recognizes their work.
20%
30%
35%
10%
5%
15%
COMPANY RECOGNIZES WORK
STRONGLY AGREE AGREE NEUTRAL DISAGREE SRTONGLY DISAGREE
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