2014

Thilani Nelunika
Chamali Hapugoda
MG12003BBF0005

IMPACT OF MOTIVATON ON
EMPLOYEE PRODUCTIVITY AT
AIA

A Project Proposal submitted for the partial fulfillment of the requirement of the Higher National
Diploma in International Business Management Program

Individual Report
On
Impact of Motivation on Employees

Submitted
To
SAITM Management Faculty
(South Asian Institute of Technology and Medicine - Malabe)

Supervisor
By
Prof. Gunarathne

Submitted
By
Nelunika Hapugoda
Registration No MG12003BBF0005

Date of Submission
30th July 2014

Acknowledgement
I would like to thanks my Lecture, Prof. Gunarathne for his guidance, continuous support
and initial advices

I are grateful to the Regional Manager of AIA PLC, Colombo for his time and the effort he
put into giving us the information that we need to complete my Human Resource
Management research.

A special thank of my goes to my friends, who exchanged their interesting ideas, thought and
helped me to complete this research.

I would also like to thank my parents for their undivided support they gave me to complete
the research.

And I am grateful to all the persons who inspired me and gave their effort to make this report
a success.

EXECUTIVE SUMMARY

This study elaborates on the different theories of motivation that are available for use and
practice and to study as well for companies in order to motivate their employees and for
individuals as well as group of employees. The study also elaborates on the different types of
research methods that are available and that can be used. The main aim of this study is how
motivation has impacted the employees at AIA PLC. Interviews were conducted and
information interpreted and included in this report in the form of questions and answers
received by employees and the Human Resource manager. The study also shows that
motivation is an important part of the success of a company and how an human resource
department should handle and take care of their employees as they the most important asset
in a business. This study will also show whether the current tools, theories and techniques
used by AIA is motivating their employees enough to a standard where the management is
happy with their productivity levels or whether there need to be changes made to the current
system of motivation in order to improve the productivity levels.

Table of Contents
Declaration .....................................................................................Error! Bookmark not defined.
Acknowledgement .......................................................................................................................... 1
EXECUTIVE SUMMARY ............................................................................................................ 4
List of illustrations .......................................................................................................................... 7
CHAPTER 1- Introduction ............................................................................................................. 8
1.1 Introduction to the organization ............................................................................................ 8
1.2 Introduction to the project ..................................................................................................... 9
1.3 Research problem ................................................................................................................ 11
1.4 Aims and Objectives ........................................................................................................... 11
1.5 Scope of the Research ......................................................................................................... 12
1.6 Research methodology ........................................................................................................ 12
Selection of sample ................................................................................................................... 12
Collection of Data ..................................................................................................................... 12
1.7 Limitations .......................................................................................................................... 13
CHAPTER 2- Theoretical background ......................................................................................... 14
2.1 The concept of motivation................................................................................................... 14
2.2 Definition of Motivation ..................................................................................................... 14
2.3 Theories of motivation ........................................................................................................ 14
2.3.1 Hierarchy of needs theory............................................................................................. 15
2.3.2 Theory X and Theory Y................................................................................................ 16
2.3.3 Two-Factor Theory ....................................................................................................... 17
2.3.4 Expectancy theory ........................................................................................................ 18
2.3.5 Reinforcement theory ................................................................................................... 18
2.3.6 ERG theory ................................................................................................................... 19

2.3.7 Equity theory ................................................................................................................ 19

2.3.8 McClellands theory of needs ....................................................................................... 20
CHAPER 3- Findings ....................................................................Error! Bookmark not defined.
CHAPTER 4 Discussion and Analysis ...................................................................................... 34
CHATPER 5 ................................................................................................................................. 38
Recommendations ..................................................................................................................... 39
Conclusion................................................................................................................................. 38
Appendices .................................................................................................................................... 42
References ..................................................................................................................................... 43

List of illustrations
Figure1-(Maslows hierarchy needs)
Figure2-(Bar chart)
Figure 3- (Bar graph)
Figure 4-(Bar graph)
Figure 5-(Bar chart)
Figure 6-(Bar graph)
Figure 7-(Bar chart)
Figure 8-(Bar graph)
Figure 9-(Bar graph)
Figure 10-(Bar chart)
Figure 11-(Bar graph)
Figure 12-(Bar graph)
Figure 13-(Bar graph)

CHAPTER 1- Introduction
1.1 Introduction to the organization

The AIA Group provides their customers with financial protection, security, and a
comfortable future.
As a company, they understand that life is unpredictable. It has its highs as well as its
challenges and everyone is on a different journey. That's why their starting point has always
been understanding people. By being genuinely engaged with peoples real lives, they gain
deeper insights that enable to offer a range of insurance and wealth management products
that fit the needs of the individual.
Over the last 90 years, they've built their business upon serving the ever-changing needs of
people and companies in Asia. Their personal, relationship-based approach has made them a
part of the fabric of life there. And they will continue to protect generations of people, for
many years to come, whatever life brings to them.
.
Purpose

To play a leadership role in driving economic and social development in Sri Lanka.
Vision

To become the pre-eminent life insurance provider in Sri Lanka.

Our history

AIA Company Limited ("AIA"), Hong Kong acquired the entirety of the shareholding in
AIA Holdings Lanka (Private) Limited who is the majority shareholder of AIA Insurance
Lanka PLC ("AIA Insurance"), in December 2012. AIA also acquired a direct 5% of the
shareholding in AIA Insurance in December 2012.

Through a voluntary offer declared to acquire the remaining shares of AIA Insurance held by
minority shareholders, AIA also acquired a further 4.88% direct holding in AIA Insurance in
May 2013.

Consequent to the above acquisitions of indirect and direct shareholdings, AIA now owns an
effective shareholding of 97.15% in AIA Insurance Lanka PLC.

A I A Insurance Lanka PLC, formerly AVIVA NDB Insurance PLC, is a Sri Lanka-based
company engaged in life insurance and general insurance business. The Company's life
insurance risks include mortality, morbidity, longevity, persistency, expense, policyholder
behavior risk around take-up of insurance guarantees and options, underwriting and
reinsurance basis risk. Its general insurance risks are categorized into property damage,
consequential losses, legal liabilities, financial loss, medical expenses and non-indemnity
benefits. The Company's direct sales force (DSF) serves customers through 55 distribution
points. As of December 31, 2011, its parent entity was AVIVA NDB Finance Lanka
(Private) Ltd., while its ultimate parent entity and controlling party was Aviva International
Holdings Ltd., United Kingdom. As of the same date, it had one wholly-owned subsidiary,
Rainbow Trust Management Limited, which was active in trust management.

1.2 Introduction to the project

Motivation has become important for organizations and companies of all that sizes that want
to reach their own organizational objectives in a competitive marketplace. Motivation plays a
significant role in achieving goals and business objectives and is equally as important for
companies that work in a team-based environment or in a workplace comprised of workers
who work independently. Now-a-days, motivated workforce is more important than ever to
survive in the era of globalization. The best businesses more often have the best motivated
workers. Because well-motivated employees are having higher productivity, better quality
work with less wastage, greater sense of urgency, more employee feedback and suggestions
made for improvements, more feedback demanded from from superiors and management and
on. Motivating and rewarding employees is one more important and challenging activities
that manager and so on. Motivating and rewording employees is one of the most important
and challenging activities that managers should do

Without satisfied employee, good performance cannot be imagined, as dissatisfaction leads

to higher absenteeism and turnover, which will eventually hamper the greater interest of the
organization. Dissatisfied employees also have a tendency of misbehavior with the customers
and even with colleagues. They sometimes create social problems by demonstrating their
frustrations on others. So removal of dissatisfaction is very important
On the other hand, todays employers always seek for top performance, high attainment of
goals, meeting challenges in time to cope with the pace of globalization challenges. To
survive in this challenging period every organization needs highly motivated employees in
their organization. Motivated employees cannot be produced overnight. It requires good deal
of times and efforts. There are some theories which can be practiced to satisfy and motivate
employees. Some of these theories and its implication in real organization will be discussed
later in this report.
There are so many distraction and demotivating factors which therefore, make it important to
study motivation and teach it to others and implement the theories of motivation in ones life
and help others implement it too. There are countless number of theories of motivation
published my various people. Some people follow the traditional methods of motivation that
were discussed, published and implemented decades ago. But it is hard to follow and
implement those same methods todays modern world. So people use different motivation
theories and sometimes combine the new theories with the old ones and prosper from that.
Motivation doesnt all come from theories. The past of a person can prove to be a driving
force to strive harder to be successful and a better person in the future. There are certain
actions that can also help motivate people in different ways.
This study comprises of AIA group and the impact that motivation has on its employees
productivity levels. There are so many different kinds of motivational tools that can be used
in order to increase the levels of productivity of employees. This study will show whether the
current tools, theories and techniques used by AIA is motivating their employees enough to a
standard where the management is happy with their productivity levels or whether there need
to be changes made to the current system of motivation in order to improve the productivity
levels. Different employees react in various ways to the various motivation techniques used
to motivate them. It can be financial or non-financial incentives. Many motivational theories

have been explained in chapter two of this study and those will help to devise a motivational
theory to recommend to AIA

1.3 Research problem

The research problem here in this study associated with the motivation of employee of AIA
group. There are a variety of factors that can influence a persons level of motivation; some
of these factors include.
1. The level of pay and benefits
2. The perceived fairness of promotions system within a company
3. Quality of the working conditions
4. Leadership and social relationships
5. Employee recognition
6. Performance of employees
7. Job security
8. Career development opportunities etc.
Motivated people are a great asset to any organization. It is because the motivation and
productivity is clearly linked. Hence this study is focusing on the employees motivation in
the organization, the research problem is can be recognized as follows
How motivation can be impact on employees productivity?

1.4 Aims and Objectives

1. To find out the effectiveness of the existing motivation system.

2. To critically evaluate and analyze the employees motivational devices, whether it is

financial or non-financial that would impact the employee productivity.
3. To examine the ways to bridge the gap between the employee expectations and the
current motivation system of AIA.

1.5 Scope of the Research

The research scope of this Impact of motivation on employee productivity at AIA has
chosen AIA sub branch in Batharamulla which include around 40 employees.

1.6 Research methodology

Selection of sample
Reason for sampling

Low cost

Greaters

peed of data collection

Easy way to do the research

Sample Method

Simple Random Sampling

Collection of Data
Primary Data

Questionnaires

Observation

Discussion with employees and managers

Secondary Data

Lecture tutorial

Information collect from company web side

Journals, magazine and books

1.7 Limitations

1. Time is not enough to complete the research

2. Company is not willing to give internal information as it is confidential information

3. Company employees are trying to give good view than the reality

4. Organizational structure is difficult to handle for a research

5. High research cost

6. The number of the units of analysis used in study is dictated by the type of research problems
are investigated but not the whole.

CHAPTER 2- Theoretical background

2.1 The concept of motivation

The concept of motivation is combination of three key elements like intensity, direction and
persistence. Motivation is the set of process that moves a person toward a goal. Thus,
motivated execute that any idea, need or emotion that stimulate a man in to achieve the goals.
There is a stimulus behind the behavior of every employee. That stimulus is dependent on the
motivation. Motive can be recognized as studying employee needs and wants .There is no
definite factors influence motivation which control employee behavior at any particular
point. In common sense, the different motivates activate at different times with different
human beings and persuade their behaviors. From motivation procedure we can recognize
how individual gets motivated in different types of behavioral environment. Thats mean
behaviors are voluntary choices controlled by the individual employee.

2.2 Definition of Motivation

According to Stephen P. Robbins, Motivation is the process that account for an individuals
intensity, direction and persistence of effort toward attaining goals.

2.3 Theories of motivation

Abraham H Maslows hierarchy of needs.

Frederick Herzberg two factor theory.

Douglas McGregor theory X and theory Y.

Expectancy theory

Reinforcement theory.

Aldefers ERG theory.

J.S. Adams Equity theory.

McClellands theory of needs

2.3.1 Hierarchy of needs theory

Its probably safe to say that most well-known theory of motivation is Abraham Maslows
hierarchy of needs. Maslows hypothesized that within every human being there exists a
hierarchy of needs.
1. Physiological: includes hunger, trust, shelter, sex and other bodily needs.
2. Safety

: includes security and protection from physical and emotional harm.

3. Social : includes affection, belongingness, acceptance, and friendship

4. Esteem : includes internal esteem factors, such as self-respect, autonomy, and achievement
and external esteem factor such as status, recognition, and attention.
5. Self-actualization: the drive to become what one is capable of becoming, Includes growth,
achieving ones potential, self-fulfillment.
As each of these needs becomes substantially satisfied, the next need becomes dominant. The
individual moves up the step of the hierarchy. Maslow separated the five needs in to higher
and lower orders. Physiological and safety needs were described as lower order needs and
social, esteems and the self-actualization as higher order needs.
(Figure no: 1)

(2010-2012Business Banking Management Marketing & Sales.)

According to AIA, they provide some rewards to their employees, such as non-financial
incentives and financial incentives.
Ex:-Non financial- tours, promotions, rewards, competition, group recognition
Financial- commissions, bonus, loan facilities, insurance, retirement payments

2.3.2 Theory X and Theory Y

Douglas McGregor proposed two distinct views of human beings: one basically negative,
labeled Theory X and other basically positive, labeled Theory Y. After viewing the way in
which managers deal with employees, McGregor concluded that managers view of the nature
of humans beings are based on a certain grouping of assumptions and that managers tend to
mold their behavior toward employees according to X and Y assumptions.

Theory X- the assumptions that employees dislike work, are lazy, dislike responsibility and
must be coerced to perform.

With Theory X assumptions, management's role is to coerce and control employees.

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.

Theory Y the assumptions that employees like work are creative, seek responsibility, and
can exercise self- direction.

With Theory Y assumptions, management's role is to develop the potential in employees and
help them to release that potential towards common goals.

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.

According to the survey most of the AIA employees know their company vision and mission
and also they have planned goals for their branches and for individuals. Thats mean
managers have two way communication and good leadership characteristic to motivate
employees. In this scenario we can apply Douglas McGregors theory Y. Thats mean
employee can view work as being as natural as rest, employees are exercise to self-direction
and self-control because they are committed to the objectives and ability to make innovative
decisions is widely spread throughout this company .In this company management have
moderate participative decision marking responsible and challenging jobs and good group
relationships .As result of above factor we can identify this companys motivation structure
has applied to theory X and theory Y.

2.3.3 Two-Factor Theory

According to Herzberg, understanding what causes employee satisfaction and dissatisfaction
is important for management .The Two-Factor theory also called motivation hygiene theory
was proposed by psychologist Frederick Herzberg. In the belief that individuals relation to
work is basic and that ones attitude toward work can very well determine success or failure,
Herzberg investigated the question What do people want form their jobs? He asked people
to describe in detail, situations in which they felt exceptionally good or bad about their jobs.
These responses were then tabulated and categorized.
Form the categorized responses, Herzberg concluded that the replies people gave when they
felt good about their jobs were significantly different form the replies given when they felt

bad. In this organization HR department is help to employees. Supervisors always help to

consult the employees problem. This strategy act as a motivate factor within in the AIA.

2.3.4 Expectancy theory

The strength of a tendency to act in a certain way depends on the strength of and expectation
that the act will be followed by a given outcome and on the attractiveness of that outcome to
the individuals. This theory was introduced by Victor Vrooms. The Expectancy Theory of
Motivation (Porter & Lawler 1964) is one of the process theories. I see this theory as a
model of behavioral choice, that is, as an explanation of why individuals choose one
behavioral option over others. In doing so, it explains the behavioral direction process. It
does not attempt to explain what motivates individuals, but rather how they make decisions
to achieve the end they value.
In AIA have exact targets for every employee. The employees who achieve their targets they
can get reword such as bounces, salaries increase, tours or promotions and that the rewards
will satisfy the employees. Moreover they offer recognition by evaluating best performer of
the month. The managers support employers for their growth and development by giving
emotional, motivating talks in beginning of the month.

2.3.5 Reinforcement theory

This theory says that behavior is a function of its consequences. Thats mean individual takes
a behaviorist approach, arguing that Reinforcement condition behavior. The Reinforcement
Theory of Motivation includes 4 aspects: Positive, Negative, Punishment, Extinction.
In AIA they provide intrinsic rewards in addition to extrinsic to motivate their employees.
And also they make the work interesting by providing free Wi-Fi technology within working
hours. And its good turn for the company and its effort to motivate employees. When
employees reach their targets they get praises from top level management and it help to
create a good reinforcement condition behavior.

2.3.6 ERG theory

Alderfer's ERG identified three categories of core needs. They are Existence, Relatedness,
and Growth. The most important contribution of the ERG model is the addition of the
frustration-regression hypothesis, which holds that when individuals are frustrated in meeting
higher level needs, the next lower level needs remerge.
ERG Categories:

Existence Needs: physiological and safety needs (such as hunger, thirst and sex)(Maslows
first two levels which was explained earlier)

Relatedness Needs: social and external esteem (involvement with family, friends, co-workers
and employers)(Maslows third and fourth levels as explained above)

Growth needs: internal esteem and self actualization(desires to be creative ,productive and to
complete meaningful tasks) (Maslows fourth and fifth levels explained above)

In AIA they offer physiological needs and safety needs such as salary, employee life
insurance, and job security. Therefore we can say Existence stage of the ERG theory is
fulfilled. Moreover they offer rewards to best performing employees such as tours, salary
increments, and commissions.

Also most of employees are happy to work as a team.

Therefore we made a assumption that The relatedness of ERG theory this fulfilled in this
organization. With employees experience, this company gives scholarship, counseling for
them and they give training programmers for new comers. Because of this they can improve
their self-development and the Growth stage of ERG theory is fulfilled.

2.3.7 Equity theory

This theory says that individuals compare their job inputs and outcomes with those of others
and then respond to eliminate any inequities. This theory has introduced by J.N. Adams.

In this company employees are making comparisons with their job inputs and outcomes. In
this company motivate their employees by providing high salaries, commission, promotions
as outcomes. Because of those the equity theory fulfill in this company.

2.3.8 McClellands theory of needs

Note that McClelland's theory allows for the shaping of a person's needs; training programs
can be used to modify one's need profile.
In AVIVA NDB they have provided personal goals to each employee. When they reach to
goals, they get rewards. With this they fulfill achievement stage. They can allocate their own
decisions as well as their have opportunities to sharing information without any disturbance
and company has establish open door policies. With this they fulfill power stage. And they
have their own teams within organization. Because of this employees have buildup good
relationship with each other

CHAPER 3- Findings
3.1 I feel encouraged to come up with new and better ways of doing things.

No

Particular

Percentage

Strongly Agree

2%

Somewhat Agree

58%

Neither Agree nor Disagree

30%

Somewhat Disagree

10%

Strongly Disagree

0%

Total

100%
(Table 1)

70%
60%
50%
40%
30%

Percentage

20%
10%
0%
Strongly
Agree

Somewhat Neither Somewhat

Agree
Agree nor Disagree
Disagree

Strongly
Disagree

(Figure no.2)
Interpretation
Table shows that 58% with the highest percentage, the subjects somewhat agrees to feel
encouraged to come up with new ways of doing things, while 30% of the subjects, being the
second highest neither agree nor disagree to the topic. 10% of the subjects somewhat
disagrees while 2% strongly agrees. And finally, no one strongly disagrees with it.

3.2 My work gives me a feeling of personal accomplishment.

No

Particular

Percentage

Strongly Agree

90%

Somewhat Agree

0%

Neither Agree nor Disagree

2%

Somewhat Disagree

8%

Strongly Disagree

0%

Total

100%
(Table 2)

100%
90%
80%
70%
60%
50%
40%

Percentage

30%
20%
10%
0%
Strongly
Agree

Somewhat Neither Somewhat Strongly

Agree
Agree nor Disagree Disagree
Disagree

(Figure no. 3)

Interpretation
The table shows that 90% of the subjects strongly agree to feel personal accomplishment
through work, while 8% of the subjects somewhat agrees to the same fact. 2% of the subjects
neither disagree nor agree with the topic while 0% of the subjects somewhat agrees and
strongly disagrees.

3.3 I have the tools and resources to do my job well.

No

Particular

Percentage

Strongly Agree

5%

Somewhat Agree

40%

Neither Agree nor Disagree

30%

Somewhat Disagree

25%

Strongly Disagree

0%

Total

100%
(Table 3)

45%
40%
35%
30%
25%
20%
15%

Percentage

10%
5%
0%
Strongly
Agree

Somewhat Neither Somewhat Strongly

Agree
Agree nor Disagree Disagree
Disagree

(Figure no. 4)
Interpretation
The table shows that 40% of the subjects somewhat agrees to the fact that they have the tools
and resources to do their job well. While 30% of the subjects neither agree nor disagree to the
fact. 25% of the subjects somewhat disagrees to have the tools and resourcesthey need to
their job well while, 5% of the subjects strongly agrees. And 0% of the subjects strongly
disagree.

3.4 On my job, I have clearly defined quality goals.

No

Particular

Percentage

Strongly Agree

90%

Somewhat Agree

2%

Neither Agree nor Disagree

0%

Somewhat Disagree

8%

Strongly Disagree

0%

Total

100%
(Table 4)

100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%

Percentage

Strongly
Agree

Somewhat Neither Somewhat Strongly

Agree
Agree nor Disagree Disagree
Disagree

(Figure no. 5)
Interpretation
The above table shows that 90% of the subjects strongly agrees that they have clearly defined
their goal, while 8% of the subjects somewhat agrees. 2% of the subjects somewhat agrees
while 0% subjects neither agree nor disagree and 0% strongly disagrees.

3.5 The Company does an excellent job of keeping employees informed about matters
affecting us.
No

Particular

Percentage

Strongly Agree

25%

Somewhat Agree

62.5%

Neither Agree nor Disagree

12.5%

Somewhat Disagree

0%

Strongly Disagree

0%

Total

100%
(Table 5)

.
70%
60%
50%
40%
30%
Percentage

20%
10%
0%
Strongly Somewhat Neither Somewhat Strongly
Agree
Agree
Agree nor Disagree Disagree
Disagree

(Figure no. 6)

Interpretation
In the given table it is seen that 62.5% somewhat agree that the employees are informed of
matters which are affecting them. The 25% who strongly agrees are very much satisfied on
how the organization treats its employees and will remain with the organization for a long
time frame.

The 12.5% who neither disagree no agree may have mixed feelings in how the company
treats its employees and if the company continues to inform its employees of the changes,
this percentage may become decreased

3.6 When a customer is dissatisfied, I can usually correct the problem to their satisfaction.
No

Particular

Percentage

Strongly Agree

70%

Somewhat Agree

15%

Neither Agree nor Disagree

15%

Somewhat Disagree

0%

Strongly Disagree

0%

Total

100%
(Table 6)

80%
70%
60%
50%
40%
Percentage

30%
20%
10%
0%
Strongly
Agree

Somewhat Neither Somewhat

Agree
Agree nor Disagree
Disagree

(Figure no. 7)

Strongly
Disagree

Interpretation
According to the graph, 70% of the time the customers are able to correct the problem to
their satisfaction. 15% of employees are somewhat agree with it. And 15% of employees are
not sure about their ability of deal with customers

3.7 I am satisfied with my opportunity to get a better job in this company.

No

Particular

Percentage

Strongly Agree

5%

Somewhat Agree

40%

Neither Agree nor Disagree

35%

Somewhat Disagree

20%

Strongly Disagree

0%

Total

100%
(Table 7)

45%
40%
35%
30%
25%
20%
Percentage

15%
10%
5%
0%
Strongly
Agree

Somewhat Neither Somewhat

Agree
Agree nor Disagree
Disagree

(Figure no. 8)

Strongly
Disagree

Interpretation
According to the above graph it is seen that the above employee is not very positive of
getting a better job as he strongly agrees only a 5% of the time. However he somewhat agrees
that he will be able to get a better job in the company as the percentage shown is 40%. This
means that the employee sees a future possibility of getting a better job but is uncertain of its
occurrence. The 35% of neither agreement of disagreement shows that the employee is has a
little faith in getting a better job in the company.
But the 20% of somewhat disagreeing would suggest that the employee is very much
uncertain of getting a better job and any leave the company as a result of this mindset.

3.8 My job makes good use of my skills and abilities

No

Particular

Percentage

Strongly Agree

70%

Somewhat Agree

0%

Neither Agree nor Disagree

30%

Somewhat Disagree

0%

Strongly Disagree

0%

Total

100%

(Table 8)

80%
70%
60%
50%
40%
Percentage

30%
20%
10%
0%
Strongly
Agree

Somewhat Neither Somewhat

Agree
Agree nor Disagree
Disagree

Strongly
Disagree

(Figure no. 9)

Interpretation
According to the graph this 70% of the time the employee thinks that his abilities are well
tested and made use well in the company. However 30% of the time the employee thinks that
his abilities are not well tested in the company.

3.9 I satisfy with my working environment

No

Particular

Percentage

Strongly Agree

78%

Somewhat Agree

12%

Neither Agree nor Disagree

3%

Somewhat Disagree

7%

Strongly Disagree

0%

Total

100%
(Table 9)

90%
80%
70%
60%
50%
40%
Percentage

30%
20%
10%
0%
Strongly
Agree

Somewhat Neither Somewhat

Agree
Agree nor Disagree
Disagree

Strongly
Disagree

(Figure no. 10)

Interpretation
78% of the time the employee is satisfied with his working environment. And the employee
somewhat agrees to a level of 12% that his working environment is suitable to carry put his
operations 3% neither agree nor disagree. 7% of the time the employee somewhat disagrees
that his working environment is unsatisfactory and may be less motivated to carry out his
tasks.
3.10 I think that financial incentives more influence my performance than other benefits.
No

Particular

Percentage

Strongly Agree

55%

Somewhat Agree

5%

Neither Agree nor Disagree

45%

Somewhat Disagree

0%

Strongly Disagree

0%

Total

100%
(Table 10)

60%
50%
40%
30%
Percentage

20%
10%
0%
Strongly
Agree

Somewhat Neither Somewhat

Agree
Agree nor Disagree
Disagree

Strongly
Disagree

(Figure no. 11)

Interpretation
The employee strongly agrees up to 55% that the financial incentives are better matched to
his level of performance and may become more motivated if his/her remuneration package is
increased. Employees are somewhat agrees up to 5% that he is motivated by financial
incentives.

3.11 I satisfy with the information receive from management on what is going on in my division.
No

Particular

Percentage

Strongly Agree

88%

Somewhat Agree

0.5%

Neither Agree nor Disagree

2.5%

Somewhat Disagree

9%

Strongly Disagree

0%

Total

100%
(Table 11)

100%
90%
80%
70%
60%
50%
40%

Percentage

30%
20%
10%
0%
Strongly
Agree

Somewhat Neither Somewhat Strongly

Agree
Agree nor Disagree Disagree
Disagree

(Figure no. 12)

Interpretation
The employees strongly agree up to 88% of the time that the information received from the
management is satisfactory. According to the graph 0.5% somewhat agrees that the
management provides them with satisfactory information and 2.5% neither agrees not
disagrees..
3.12 I satisfy with the rewords provided by the organization.
No

Particular

Percentage

Strongly Agree

0%

Somewhat Agree

52%

Neither Agree nor Disagree

43%

Somewhat Disagree

5%

Strongly Disagree

0%

Total

100%
(Table 12)

60%
50%
40%
30%
Percentage

20%
10%
0%
Strongly
Agree

Somewhat Neither Somewhat

Agree
Agree nor Disagree
Disagree

Strongly
Disagree

(Figure no. 13)

Interpretation
The employee somewhat agrees up to a 52% percentage of the time that the rewards provided
are satisfactory. While 43% of the time the employee neither agree nor disagree to this
statement. And 5% of the time he somewhat disagrees that the rewards are unsatisfactory.

CHAPTER 4 Discussion and Analysis

Q.1 I feel encouraged to come up with new and better ways of doing things.
A. In the conclusion, most subjects somewhat agrees and to feel encouraged to come up with
new ways of doing things, while none strongly disagree to the fact. This may be due to the
motivation factor been high when initiating new ways of doing things. However 30% neither
disagree nor agree means that there is a percentage of the mind that does not like to initiate
new way of doings things. But the 2% of strongly agreeing may suggest again that only a
very little percentage of the mind wants to start and find new ways of doing things. Finally
we can come up to conclude that employees have freedom for do new things. Therefore their
motivation is high and it will impact to increase their productivity as well.

Q.2 My work gives me a feeling of personal accomplishment.

A. In conclusion, most subjects with a percentage of 90% strongly agree to the fact that work
gives them a feeling of personal accomplishment. Because of that we can say their most of
employees happy with their work environment and job task.

Q.3 I have the tools and resources to do my job well.

A. 70% 0f employees are agree with this statement. Therefore in conclusion, most subjects
agree on the fact that they possess the tools and resources needed to do their job well, while
none strongly disagrees. This factor is work as a motivational factor and also shows that their
comfortable with job tasks and it will help to increase productivity as well.

Q.4 On my job, I have clearly defined quality goals.

A. In conclusion, most subjects strongly agrees while none strongly disagrees and neither
agree nor disagree. The 90% of strong agreement would show that it would be able to

manage quality and show continuous improvement through quality management. It makes
proud of them to work in a clear direction and easy for deal with their job task.

Q.5 The Company does an excellent job of keeping employees informed about matters
affecting us.
A. Around 60% agree with this. And this would give a positive result as employee
involvement is taken into consideration in the organization. This will increase employee
satisfaction. In this context the employee is somewhat considered to be an asset to the
organization and labor turnover will be somewhat decreased. The 25% who strongly agrees
are very much satisfied on how the organization treats its employees and will remain with the
organization for a long time frame. And this shows how they are comfortable with the
security of their job.

Q.6 When a customer is dissatisfy, I can usually correct the problem to their satisfaction.
A. 70% are agreeing with this statement and this would result in the customers been more
satisfied and the increase customer retention. Therefore as a result of this explanation it could
be said that customers satisfaction could be maintained through appropriate employee
behavior and this will impact on productivity level as well.

Q.7 I am satisfied with my opportunity to get a better job in this company.

A. 45% of employees are agreeing with this statement. This means that the employee sees a
future possibility of getting a better job but is uncertain of its occurrence. And 20% of
employees are disagreeing. Therefore in such situations the company should identify such
individuals and provide them with better future opportunities if the company wants to retain
such employees.

Q.8 My job makes good use of my skills and abilities

A. 70% of the time the employee thinks that his abilities are well tested and made use well in
the company. This will result in the employee performing even better in the company and
become more motivated to carry out his day to day jobs. 30% of the time the employee thinks
that his abilities are not well tested in the company. Therefore because of this the employee
may become less motivated ad may not perform his job in the proper manner. This may
affect the organization adversely. Therefore the organization will have to provide work
according to the level of performance of each employee.

Q.9 I satisfy with my working environment

A. 78% of the time the employee is satisfied with his working environment. This will enable
the employee to work in a satisfactory manner and perform his/her daily tasks in a favorable
manner. This will later increase the productivity of this individual and become a valued asset
to the organization. While the employee somewhat agrees to a level of 12% that his working
environment is suitable to carry put his operations 3% neither agree nor disagree. 7% of the
time the employee somewhat disagrees that his working environment is unsatisfactory and
may be less motivated to carry out his tasks. This should avoid if the employee wants to
perform well in the company.

Q.10 I think that financial incentives more influence my performance than other benefits.
The employee strongly agrees up to 55% that the financial incentives are better matched to
his level of performance and may become more motivated if his/her remuneration package is
increased. This shows that the employee is more driven to perform due to financial benefits
than other benefits. He somewhat agrees up to 5% that he is motivated by financial
incentives, yet he has mixed feeling of whether the other incentives are affecting his
performance as well. However employee such as these may become more motivated by
better remuneration packages. We can see financial benefits are not the most important factor
to motivate them

Q.11 I satisfy with the information receive from management on what is going on in my
division.
A. 88% employees are agree and this shows that the management is following an approach
where the employees are well communicated. This will result in the employees becoming
more satisfied with the management as will always reach them if a problem exists. However
they exists a percentage of 9% that somewhat disagrees with the above statement. The
management should look into this matter and communicate even better so that this
percentage would be decreased even more.

Q.12 I satisfy with the rewords provided by the organization.

A. around 50% employees are agreeing but there are no highly agreed employees and 45%
employees havent comment on this. Therefore it is better to the company if the employee
does not have this opinion. Therefore the company should increase the rewards in order to
decrease this percentage of 5% and make the employee be more satisfied with the rewards he
gets. As a result of this, the employee will become further motivated and perform better in
the company.

CHATPER 5 - Conclusion and Recommendations

3.1 Conclusion

This study has proven that motivation affects productivity levels of employees at AIA
Company. And this case study concludes motivation theories implementing in AIA. Its
helped to finds which were related with organization motivational methods which are helps
to motivate employees within the organization.
Employees behavior is most important character which helps to increase productivity and
individual performances .This is one of the most important factor which supervisor should
consider and this is a main criteria to develop when necessary situations.
When an employee motivated he feel organizations environment is will to work because
of that employee give their best effort towards organizational goals. And also he satisfies
about his job and feels more job security. As a result of this supervisors can get maximum
performance from the employees. So supervisors can still concentrate on specific areas which
related to motivation. And also AIA employees motivation is in a satisfactory level and
recommendation of this report may help to motivate moreover.

3.2 Recommendations

Employees performance should be more appreciated further by AIA group in order to

increase the motivation. Such as providing non-financial incentives and financial incentives
by according employees motivational preferences through evaluation criteria.

Self-developments programs should be implement within the organization for development

career paths of AIAs employees which guide to achieve effective and efficient customer
service. Ex. Providing leadership programs, OBT

Employees like to execute modern technological work environment. So company should

offer modern technological facilities as it is increase competitive advantages through
psychological changes. And it ultimately increases the organizational effective and efficiency
within the internal environment. Ex: wireless devises latest system programs

Two way communication should be improve within the organization and also coordination
from supervises want to be more properly. And getting rapid feedbacks which are more
convenient for internal process.

Organization should give opportunities to employees to participate in operational decision

making to give esteem for personal development.

Organization should implement periodical salary increment to improve efficiency and

effectiveness within working environment

Appendices

Strongly
Agree

1. I feel
encouraged to
come up with
new and better
ways of doing
things.
2. My work
gives me a
feeling of
personal
accomplishment.
3. I have the
tools and
resources to do
my job well.
4. On my job, I
have clearly
defined quality
goals.
5. The Company
does an
excellent job of
keeping
employees
informed about
matters affecting
us.

Somewhat
Agree

Neither
Agree
nor
Disagree

Somewhat
Disagree

Strongly
Disagree

6. When a
customer is
dissatisfied, I
can usually
correct the
problem to their
satisfaction.
7. I am satisfied
with my
opportunity to
get a better job
in this company.
8. My job makes
good use of my
skills and
abilities.
9. I satisfy with
my working
environment.
10. I think that
financial
incentives more
influence my
performance
than other
benefits.
11. I satisfy with
the information
receive from
management on
what is going on
in my division.

12. I satisfy with

the rewords
provided by the
organization.

References
Armstrong M, 2002, Employee Reward, Third Edition, Chartered Institute of Personnel and
Development
Opatha, HDNP 2012, human Resource Management, Sri Lanlka
Robbins S.P, 2003, Motivation and Work Behavior, Seventh Edition, McGraw-Hill
Viewed on 22 May, 2014, http://www.aialife.com.lk/index.asp

Viewed on 30 May, 2014, http://psychology.about.com/od/psychologytopics/tp/theories-ofmotivation.htm

Viewed on 13 June, 2014, http://www.cliffsnotes.com/more-subjects/principles-ofmanagement/motivating-and- rewarding-employees/motivation-theories-individual-needs

Viewed on 22 June, 2014, http://www.aialife.com.lk/about-aia/about/about-aia-group/index.asp