19th October 2011

METS INSTITUTE OF COMPUTER SCIENCE

TOPIC- HERZBERGS TWO FACTOR THEORY

It is being done in partial fulfillment of PGDM in MET for the subject ORGANISATIONAL BEHAVIOUR.

Submitted to: Darryl Cabral Prepared By: Tanvi Mhatre Roll No: PG11118 Div: B Course: PGDM (eBusiness)

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INDEX
Sr No
1 2 3 4 5 6 7 8 9 10 11 Acknowledgement Synopsis Company Profile Methodology Questionnaire Tabulation of Data Findings and Analysis Conclusions Bibliography Annexure-1 (Questionnaires) Annexure-2 (Appreciation letter to an employee of the company)

Contents

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ACKNOWLEDGEMENT
It was a learning experience, gave me the opportunity to think out of the box. First and foremost, I thank my professor Darryl Cabral for his advice and guidance on the subject. I would like to thank Miss. Anurupa Roy, Manager (HR) at Anibrain Digital for her invaluable support for conducting the research study. Most importantly, I appreciate, Rohit Karanjavkars and Sushil Kalyanshettis helpful attitude, without both of them it wouldnt have been possible. Last but not the least, I thank my family to give me the permission to go to Pune for my project.

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SYNOPSIS
Subject of study Herzbergs Motivation- Hygiene Theory (Two Factor Theory). Fredrick Herzberg and his associates developed this theory in late 1950s. It brings into picture two factors of motivation, intrinsic and extrinsic (motivation and hygiene) factors. Intrinsic Factors primarily operate to motivate employees and extrinsic to dissatisfy.

Reason for choosing the subject I chose the above subject as I found it very interesting and intriguing. I wanted to find out for myself if intrinsic and extrinsic factors do motivate or demotivate respectively rather than meekly accepting the theory.

Methodology A questionnaire was prepared comprising 7-8 questions encompassing motivation and intrinsic & extrinsic factors. 20 employees were asked to fill them up. The questions had five options and the employees were expected to tick one of

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their choice. There were open ended and rank based questions as well.

COMPANY PROFILE
Anibrain Digital Technologies Ltd is a world class VFX company. It was set up by Jesh Krishnamurthy in early 2006 with a clear intention to create world class VFX and Animation out of India. It is Located at Pune, Viman Nagar. It has strength of around 400 employees, more than half of them are artists and the rest are employed in HR, Production, Finance and IT department. With a credit list of over 30 Hollywood features, A Promax BDA award for best animation and a team of world class artists, Anibrain has become the perfect choice for high end VFX. Anibrain partners with VFX studios globally providing them with a very solid overflow base in India without the need for any extra overheads, management costs or costly investments. They have collaborated with leading VFX facilities on projects such as John Woos Red Cliff, Resident Evil, Ang Lees Lust Caution, The lost medallion, SALT, The Factory, Twilight
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Series amongst others providing services ranging from matte painting, 3D Animation, Particle effects, Procedural Animation, High end compositing etc

METHODOLOGY
The following methodology was followed: A structured interview was undertaken with the help of a questionnaire, comprising 8 questions on motivation and intrinsic & extrinsic factors

20 employees from the VFX department, 6 Team Leaders, 6 senior compositors and 8 junior compositors were given the questionnaires.

The first four questions have options ranging from highly satisfied, satisfied to dissatisfied and strongly agree, agree to disagree. Employees were asked to tick one of their choice.

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In the fifth question, employees gave ranks to factors with respect to their degree of motivation. (Rank 1 being the highest and Rank 3 being the lowest). Employees also answered the open ended questions.

All the answers of the employees from the questionnaire were tabulated in the form of graphs and charts and findings and conclusion were incurred from them

SURVEY ON EMPLOYEE MOTIVATION

Name Name Designation Designation Gender Gender
1. Are you satisfied with the support from the HR department?

AgeAge-

Highly satisfied Dissatisfied

Satisfied Highly Dissatisfied

Neutral

2. Is Management keenly interested in motivating the employees? Strongly agree Disagree PGDM MET Agree Strongly disagree Page 7 Neutral

3. Which type of incentives motivates you the most? Why? Financial incentives Non-financial incentives Both

4. How far are you satisfied with the incentives provided by the organization? Highly satisfied Dissatisfied Satisfied Highly Dissatisfied Neutral

5. Rank the following factors with respect to their Degree of motivation. (1 being the highest and 3 being the lowest) No i. ii. iii. iv. v. vi. vii. viii. ix. Factors Reasonable periodical increment in salary. Allowances, Incentives and Bonus etc. Job security in the company.. Good relationship with co-workers Effective performance appraisal system Growth opportunity in the organization. Support from the supervisor and the boss. Company recognizes and acknowledges your work. Recreational facilities in the organization. Rank

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x.

Working conditions

6. Does the management involve you in decision making which are related to your department? If Yes, does it motivate you?

Yes

No

7. Are you satisfied with the current motivational strategies adopted by your company? If yes, will you remain loyal to the company?

8. What changes can be made to improve your work place environment?

Thank you for your kind co-operation.

TABULATION OF THE DATA

1. Support from the HR department.

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25% employees are Highly Satisfied, 60% employees are satisfied, 10% employees are neither satisfied nor dissatisfied and 5% are dissatisfied with the support from the HR department.
2.

Management interest in motivating the employees.

25% strongly agree, 60% agree while 15% employees are neutral in their view that management is interested in motivating them. 3. Type of incentives motivates the most.

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70% employees said that financial incentives motivates them the most, while 30% said that financial as well as non-financial incentives motivate them. None were of the opinion that only non-financial incentives motivate them. Most employees feel that money gives you power to fulfill your needs and wants, monetary aid is tangible and can be measured with ones performance directly unlike non-financial incentives which are intrinsic in nature and are intangible.

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4. Satisfaction of employees with the incentives provided.

5a. Intrinsic Factors Ranked with respect to their Degree of Motivation

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Growth opportunity in the organization and company recognizes and acknowledges employees work, are the two intrinsic factors taken into consideration. The latter is ranked ahead of the former by majority of the employees. Company recognition has mostly been ranked no 1 and 2 whereas growth opportunity has been ranked no 2 and 3.

5b. Involvement in Decision making (intrinsic factor)

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Involvement in decision making which makes the employee responsible towards his work and the final output motivated only 50% of the employees. 6. Extrinsic Factors ranked with respect to their Degree of Motivation.

Reasonable increment in salary, Allowances,Incentives and Bonuses, Job Security and Working Conditions are the four extrinsic factors taken into consideration. Salary and Working Conditions are consistently Ranked No 1 by all the employees. More than half of the employees have Ranked Allowance, Incentives and Bonuses as no 1, Job security is equally Ranked No1 and No 2. 7. Comparison of Intrinsic and Extrinsic Factors influence on motivation of employees.

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In the above Pie diagrams, 2 Intrinsic Factors are taken as a whole and the Extrinsic Factors are taken as a whole, it can be seen that, 80% of the employees are of the opinion that extrinsic factors motivate them highly and hence they have ranked them No1. Only 42.5% of the same employees feel that intrinsic factors motivate them highly and have ranked them No 1. Similarly, only a handful of 18.75% and 1.25% of employees have Ranked extrinsic factors as No 2 and No 3 respectively (motivates moderately and low motivation). As compared to extrinsic factors, 35% of employees have said that intrinsic factors motivate them moderately and 22.5% say that they are least motivated by them.
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FINDINGS & ANALYSIS

After tabulating the data, the following are the findings: Herzberg has stated in his theory that intrinsic factors are motivators as they primarily motivate employees and increase their morale whereas extrinsic factors do not motivate
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employees when they are present and if they are absent they dissatisfy. According to the study conducted by me on 20 employees, extrinsic factors act as motivators and not as demotivators. When they are present they motivate employees to work more efficiently.(80% of employees ranked extrinsic factors as No 1 motivators)

Intrinsic Factors are described as the only motivators in the theory, but my study points that though intrinsic factors motivate employees, but not as fiercely as extrinsic factors do, the degree of motivation in case of intrinsic factors is low as against extrinsic factors.

Employees who have ranked intrinsic and extrinsic factors equally are highly satisfied with the incentives given to them by the organization.

Highly motivated employees are more likely to be loyal to their organization.

CONCLUSIONS

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 The findings disapprove Herzbergs theory as extrinsic factors act as motivators for all the employees.

Employees find financial incentives more rewarding as they are tangible in nature and can be utilized for any purpose.

Intrinsic Factors continue to motivate employees but less intensely than extrinsic factors.

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BIBLIOGRAPHY
1. 2.

Organizational Behaviour- K Aswathappa. Organizational Behaviour- V.G.Kondalkar.

3. Employees from the VFX department of Anibrain Digital Technologies Ltd.

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