MOTIVATION IN THE REAL WORLD: IF MONEY IS NOT A MOTIVATOR THEN WHAT ARE THE REAL MOTIVATORS?

BY

ELENA HALEPOVA

BA (Hons) International Business Management

- Teesside University -

August 2009

ELENA HALEPOVA

ABSTRACT

The subject of this study is MOTIVATION IN THE REAL WORLD: IF MONEY IS NOT A MOTIVATOR THEN WHAT ARE THE REAL MOTIVATORS? The purpose of this research is the analysis of the basic motivational models, stimulation tools and how they are applied not only in different working environments, such as big,
medium and small companies but also on different levels of employees. This will allow me to suggest and to show improvement possibilities of the overall motivational process in the management system and provide it with tools in order to help the company reach its fullest potential.

Such primary and secondary research tools have been employed as data from the companies, surveys that have been sent to a number of focus groups and in-depth interviews conducted with the management staff in order to get a different picture of the higher level employees. As a result, very interesting data have been gathered showing how different environments, management systems and even size of the organization influence and change the whole perspective, and also prove that money, after all, is not the main source of motivation. There is no argument that financial reward is a very good way of motivating people, it is also a very complex motivator but unfortunately it falls into a category of a short term factors. Once an employee gets the salary, the satisfaction level goes up but when the money is gone the employee needs something else to keep their motivational level up.

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This is proven by the final results where employees of three different companies put on the top place motivators such as praise and acknowledgement, job security and status. This stimulus work better and satisfy employees for a much longer-term. Thus, financial rewards come only second. The analysis also revealed that employees are best motivated through work organization, set goals, moral and material stimulation that should be enhanced by the management.

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ACKNOWLEDGEMENTS

I would like to express my deep appreciation to my dissertation supervisor, Andy Cousins, for providing me with objective feedback on every stage of this study, sharing his valuable knowledge and experience. And also for guiding me throughout the process and believing in my potential.

I also want to pass special thanks to my BA program leader, Dave Gannon, who was always there and who supported me throughout the whole final year. Who listened to all of my complaints and encouraged me to overcome every struggle and difficulty Ive met.

And of course, I want to thank all three companies, managers and employees, for participating in my research and sharing valuable information.

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TABLE OF CONTENTS
Abstract.2 Acknowledgements..4 Chapter 1 1.1 Introduction...8 1.2 Rationale..10 1.3 Aim...11 1.4 Research objectives..11 Chapter 2 Companies description 2.1 DHL13 2.2 NEOTECH..13 2.3 PHYSTER...14 Chapter 3 3.1 Literature review..16 3.2 Concept of motivation...17 3.3 Theories and types of motivation...19 3.4 Substantial theories...20 3.4.1 Need-hierarchy by Maslow....20 3.4.2 Existence, Relatedness, Growth(ERG) by Alderfer..23 3.4.3 Acquired needs by McClelland....26 3,4,4 Two-factor or motivation-hygiene by Herzberg..28 3.5 Remedial theories.31 3.5.1 Expectancy by Vroom.31 3.5.2 Equity by Adams.33 Chapter 4 4.1 Methodology.38 4.2 Research design....39 4.3 Secondary research.41 4.4 Primary research..42 4.5 Survey43 4.6 In-depth interviews44 4.7 Reliability and validity.45 4.8 Methods of analysis...46 4.9 Contingency plan..47

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4.10 Ethical consideration...48 Chapter 5 5.1 Analysis50 5.2 Survey51 5.3 In-depth interviews74 5.4 Summary of findings.78 Chapter 6 6.1Conclusion..79 6.2 Limitations.84 6.3 Recommendations85 Chapter 7 7.1 Self reflection...90 7.2 Learning experience...94 7.3 Summary..94 References.96 Bibliography.97 APPENDICES 1 - Employee Motivation Survey.101 APPENDICES 2 - Interview Questions.103

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LIST OF TABLES
Table 1 Need of motivated behavior..17 Table 2 Maslows hierarchy of needs.22 Table 3 Hierarchy of need by Alderfer..24 Table 4 Factors influencing work satisfaction.24 Table 5 Two factor hygienic-motivation theory by Herzberg...30 Table 6 Adams equity theory.34 Table 7 Rewards ad output..35 Survey Results: Table 8 Work period.....51 Table 9 Company values....52 Table 10 Awareness factor...52 Table 11 Satisfaction factor..53 Table 12 - Appraisal system and career development..54 Table 13 Valuable employees.55 Table 14 Unique selling preposition..56 Table 15 Role importance.57 Table 16 Reasons for coming to work..57 Table 17 Support and encouragement....58 Table 18 Competition factor...59 Table 19 Proud to be in the team...60 Table 20 - Trust factor61 Table 21 Feelings towards boss61 Table 22 Among co-workers62 Table 23 New skills development63 Table 24 Punishment63 Table 25 Time spent on valuable work64 Table 26 Department meetings attendance65 Table 27 Work finished..65 Table 28 Distractions at work66 Table 29 Work environment..66 Table 30 Company rules67 Table 31 Employee leave work.68 Table 32 Public Acknowledgement of success..68 Table 33 Criticism factor69 Table 34 Free opinion sharing..70 Table 35 Future perspective sharing70 Table 36 Asked for advice...71 Table 37 - When make mistakes.72 Table 38 Motivation factor DHL....72 Table 39 Motivation factor NEOTECH.73 Table 40 Motivation factor PHYSTER...73

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CHAPTER 1
1.1 Introduction In todays society, market relationships are essential in many countries of the world and there are many organizations that produce the same type of products and provide similar services. Therefore, competition between those is quite high. The main goal of each organization is to produce high quality products and services for a better price than the competition. As a result of organizational effectiveness and efficiency, material and social structures are formed to ensure the achievement of the organizational goals. Even with all the necessary material and facilities to get the job done, the company cannot begin to fully operate without employees as the main resource. They need to be driven using certain motivational tools in order to produce better results; therefore, it is crucial to identify what motivates them and satisfies their needs. Volgin writes that the universally accepted definitions of motivation, it is an internal state of well being, or an internal condition that activates a persons behavior and guides it. Motivation has also been defined as a desire or need which directs and energizes behavior that is directed towards a goal.(1996) The fact that people need to be motivated in order to achieve higher quality results was well known to most managers for centuries. They were able to manage and direct their employees towards set organizational goals but they did not necessarily consider the

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theoretical part of the motivational process. For that purpose they were using many different types and methods of motivation, which sometimes were limited and not quite adaptable in the modern conditions. Such as, work enrichment, for example, when managers overload employees with project but not provided additional support. Another trick that managers still use is they promise bonuses and rewards, consequently employees put more effort into their work and when they never get those bonuses they get demotivated and loose trust in their manager. The topic of my research is Motivation in the real world: if money is not a motivator then what are the real motivators. The overall topic of motivation is fascinating and many researchers and theorists have been trying to reveal different methods behind it. Therefore, many managers have been using it in order to boost the productivity level of their employees. However, it has not been given enough attention and development in many organizations. It is very important for the directors and managers of the companies to know and be able to use motivational factors and tools such as achievement, salary, recognition, advancement, work itself, etc, in order to increase and improve employees performance. High motivation of employees is the main factor behind the companys success. No business can be successful without good employees performance, without their adherence and without their aspiration in contribution towards the achievement of the companys goals and objectives.

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Therefore, it is in the interest of the directors and HR managers to find out what drives employees good performance towards achieving quality results for the company as a whole. Though it is impossible to assert that the output and performance of the employees is determined only by their motivation, its meaning is very critical. And there are many books discussing this topic and scholars trying to come up with more effective and efficient tips and tools that managers can use to motivate their employees. However, often those books are concerned with motivators that are too generic and cannot be applied everywhere. Most of the managers think that once an employee is getting enough financial compensation, he/she is well motivated. However, they often forget that even getting more money cannot make a person tolerate daily disappointments from colleagues, unhealthy environment or job tasks that one doesnt want to complete. Thus, it is very important to consider different issues starting from the personal background of the employee to the working environment. The fact is, other forms of motivation are often more important for the employees performance, satisfaction and well being.

1.2 Rationale The concept of motivation is very old and has been researched by many famous people building up theories around it and suggesting different ways and tools by which people can be motivated. However theory and practice does not always go along together.

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Therefore, working as an intern in a big company such as DHL I had the chance to get a very close look at the working environment, which after a while started looking like a factory where employees survived their shifts and went home. The feeling of enthusiasm was absent but the worse thing was that it was quite contagious. In contrast, I recall the times of working in a small company before that and how different the environment, mood of the employees and enthusiasm was. Seeing these differences and reading motivational theories gave birth to an idea to conduct a study and compare from both a theoretical and practical point of view of how motivational factors and needs of the employees differ from big to medium to small organizations. I believe that this study was important because it revealed the main areas that employer can use to further their development programs and overall improvements of the work place and conditions. Of course this issue is also rather important for the employees performance, satisfaction and well being.

1.3 Aim This research is aimed at identifying whether the specifically chosen motivational tools work in the real world by looking at 3 different sized companies and comparing the differences of the working environment, what the requirements are for each chosen company and what motivates employees of each chosen company. The second aim of this research is to find out which motivational tools, such as achievement, salary, recognition, advancement, tasks and etc. that work best and therefore make suitable suggestions and recommendations.

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1.4 Objectives o Evaluate motivational environment in chosen organizations o Discover and evaluate the effectiveness of the tools application o Draw conclusion for data which shows different motivational needs at different levels o Discover the factors/characteristics for each size company that show the most effective motivational tool

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CHAPTER 2
Company descriptions have been taken directly from their corporate websites. 2.1 DHL general description DHL is the global market leader of the international express and logistics industry, specializing in providing innovative and customized solutions from a single source. DHL offers expertise in express, air and ocean freight, overland transport, contract logistics solutions as well as international mail services, combined with worldwide coverage and an in-depth understanding of local markets. DHLs international network links more than 220 countries and territories worldwide. Some 300,000 employees are dedicated to providing fast and reliable services that exceed customers expectation. DHL is a Deutsche Post World Net brand. The group generated revenues of more than 63 bn euros in 2007.

To cover all of clients extensive service needs with the right level of focus and expertise, DHL operates under four specialist divisions: EXPRESS GLOBAL FORWARDING, FREIGHT SUPPLY CHAIN, CORPORATE INFORMATION SOLUTIONS MAIL

2.2 NEOTECH general description Neotech - one of leaders in sphere of the automated business decisions on the basis of processing center. Clients of the company are the legal bodies who are engaged in

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business in the sphere of receiving of payments from people, and also companies that are engaged in providing services to the population. Also, company gives possibility to receive remote payment by means of Electronic Payment System "Unicard". Principal views of activity of the company: Services in development and realization of projects in the field of electronic and mobile economy, electronic commerce, and electronic payments. Services in the field of processing and data transmission in any form, including, through the processing center created by company. Services in development of technologies in the field of granting of financial services and data processing, including the means of Internet Manufacture and distribution, including, on behalf of the third parties, the payment and prepaid cards with possibility of payment for various services (communication, utilities, household services and etc.). Services in development and realization of projects in conducting big data files (databases), their storage and processing.

2.3 PHYSTER Technology general description Physter Technology is a prominent supplier and integrator of professional software systems and information/communication technologies. Devoted team builds on experience mainly in the telecommunications segment practice in business procedures and deep knowledge of technological background of mobile operators finally resulted in development of own off-the-shelf software solutions with standard license and support

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policies. Teaming up with the worlds leading system integrators opens road to supplying operators with our products as well as tailoring solutions according to specific architecture in operators environment. Physter Technology has established itself as a middle sized software house building up its competence on extremely skilled and experienced team, flexible and accurate services and problem solution focus.

Even if companys activities target different technology areas - the key business field is telecommunications more specifically, Physter offers deep knowledge of mobile operators environment, because the core of the team had long history in IT key personnel of the Czech mobile operator, taking advantage of daily life experience with administration and development of mobile operators SW systems.

Service providers and network operators providing the network-based services are facing new and challenging requirements of the market today. End-customers were used to the fact that operations like activation of a cellular phone, adding a new service via Customer Care front desk, electronic money transfers or utilization of self-care web platforms, were not able to process the commands immediately. The batch data processing always caused delay between the request of the service and its final activation or execution. Not anymore.

Software analysis, design, architecture and consulting are the core business for Physter Technology. Physter have developed its own SW products with own license policies, support and maintenance, which have been implemented and currently operated in networks of local telecommunication companies.

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CHAPTER 3

3.1 Literature review The value of the motivational aspects is constantly increasing in the management process. The basic meaning of the motivation of the personnel also means the maintenance of the maximum use of resources and mobilization of the personnel potential. The main objective of the motivational process is obtaining maximum return from the use of available human resources in order to raise productivity and profitability from the organizations performance. Increasing role of the employee is an important aspect of the personnel management. Accordingly, the correlation of the stimulus and requirements that constitute the stimulation or motivational system varies. In order to motivate its employees every organization uses both financial and non-financial methods of compensation. Evolution of the various motivational methods application has shown positive and also negative aspects of their application. Thus, there is no ideal system of motivation in both theory and practice that would meet all the necessary requirements. As for the existing models of motivation, each has different orientation aspect so as the effect when applied. There are various problems connected to motivational policy, such as a problem of mutual relations with management, dissatisfaction with the salary amount, life and work conditions, the overall environment at the company and etc.

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The main obstacle in the way of solving those issues is the unwillingness of the management to reflect on living conditions and work of the employees that are not only the main resource for the companys operation but also the source of income for the company. It is very important to pay particular attention to non-material stimulation and creating flexible system of privileges for the employees. The urgency of the motivation issue is not challenged neither by science or practice because there are many aspects that depend on motivational level of employees, such as an increase of the social, creative, industrial and other fields of activity, productivity, profitability and overall end-results of the organization.

3.2 Concept of Motivation The topic of this research covers motivation of employees specifically and the work environment. The aim was to discover what the factors that motivate people are, how they are different in their needs and desires and what can be done to improve the weaknesses of the system that companies apply to motivate their employees. Thus, in order to clarify, definition of motivation will be given and different theories will be discussed. If you were to ask any manager what motivation was, you would definitely hear such concepts as desire, needs, motives, aspiration, goals, tasks or stimulus. All these concepts are reflected in the following definition of motivation. Motivation is the

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internal condition of the man connected to his needs, which activates, stimulates and directs his actions towards the set goal. The most important area in motivation is its indissoluble connections with human needs. Person aspires to lower the pressure when there is a desire, whether one realizes it or not, in satisfying the actual need.
Table 1. Model of the motivated behavior Pressure connected to this need

Unsatisfied need

Motive, goal

Release of the pressure

Satisfied need

Directed behavior

During the work process people are trying to satisfy various needs, both physiological and social. For many of those people, work is the mean of earning money, which can be directed on satisfaction of the basic biological need, such as food, clothes, habitation and others. Professional work allows a person to satisfy not only biological but also social needs, which are inherent to one as a social creature. Because beside earning money, one also strives to make a good impression on people around, as well as establish good relationships with them, become self-established, grow, make influence on others and be sure in tomorrow. Not all of the needs and desires that motivate human behavior are fully realized by one. For example, the need for authority and independence can be

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shown in the extremely painful reaction of the employee to any pressure or strengthening of the external control, though the real source of such behavior may not necessarily be identified. Motivation makes human behavior goal-oriented; therefore, the achievement of the goal results is releasing the pressure and restores physiological and psychological balance (Table 1).

3.3 Theories and Types of Motivation First historically known approach of motivation was stick and carrot. The main point of it precisely reflects social philosophy that has dominated in the society for centuries meaning that anyone who can be forced to perform their job with the help of a stick, i.e. under the threat of the punishment, should be motivated that exact way. And in the cases where punishment is impossible or can be dangerous, encouragement should be used. There can also be mixed situations where it is necessary to combine both encouragement and punishment. It is quite visible in the example of different approaches used in the antique society or in the Middle Age. Serving class would only work out of fear to be punished, whereas warriors and feudal lords would work for the reward and privileges. Although, modern theorists think that rulers of those times, where there was no scientific conceptions of motivation, acted wrong, the methods they used were more effective in most of the situations. As the methods worked and have been used for many centuries, they deeply rooted in the modern culture apart from modern

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approaches that appeared just recently. Many managers can still feel the influence of those concepts even though those methods cannot always bring wanted results nowadays. Educational level of employees is higher and they are more financially stable. Therefore, their motives can be different and more complex than even a number of years ago. Scientific approaches to study motivational process started in 19 century due to their connection to the development of psychological science. Today there are two approaches on which the substantial and remedial theories of motivation are based.

3.4 Substantial theories of motivation Substantial theories of motivation are based on revealing of internal motives, called needs that force people to action. These theories reflect the mechanism coordinating human behavior with satisfaction of their needs. Out of the considered theories there is Need - hierarchy theory by Maslow , Existence, Relatedness, Growth (ERG) Theory by Alderfer, McClelland's Theory of Needs, Herzberg's Motivation-Hygiene Theory(Two Factor Theory).

3.4.1 Need-hierarchy theory by Maslow This theory is based on study of human needs. Its supporters, including Abraham Maslow, considered that the subject of psychology is behavior rather than consciousness of the person. On the basis of human behavior there are needs that can be divided into five groups (Maslow, 1954):

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Physiological needs, necessary for human survival, which is food, water, rest and etc. Need for security and reliance of the future protection against physical and other possible dangers from the environment and the world and reliance on their physiological needs to be satisfied. Display of this need can be for example the search of reliable work with future perspectives and pension. Social needs necessity of the social environment, which include communication with people and feeling of support. That is a need for affection and belongingness to someone, approval of others, feeling of social interaction and friendship. Need for respect recognition of others and aspiration of personal achievements, includes such internal factors as self-respect, independence, competence, personal achievement and external factors of respect of the status, respect of others and recognition. Need for self-expression, i.e. need for own growth/development and in realization of potential opportunities. The first two groups of needs are primary and the other three are secondary. According to Maslows theory, all these needs can be arranged in a strict hierarchical sequence in a form of a pyramid, where the base layer places primary needs and secondary ones are on top (see table 2 below).

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Table 2. Maslows Hierarchy of Needs

Maslows (1954) hypothesis suggests that in each concrete moment, behavior of the person is determined by one of the strongest unsatisfied need. As the need is satisfied, it stops playing motivational role and so the following one becomes motivational. Thus, according to Maslow, the power of needs goes down from physiological needs to the needs of self-expression on the layers of hierarchy of needs. The need for self-expression and personal growth cannot always be fully satisfied, therefore more complex techniques of motivation should be applied. When you look at personal growth as a motivator, you change the way employees think about their work, you help them become more capable, and you give them a meaningful purpose in coming to work. (Bruce, Anne. How to Motivate Every Employee.) 22

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Therefore, the duty of each manager consists of careful observation of subordinates, finding out what active needs drive and motivate each one of them and make decisions concerning realization of those needs in order to improve performance of employees. This conception has become quite popular, especially among practical managers. It corresponded to their understanding of the problem of motivation and was simple to understand. Unfortunately, empirical researches did not confirm absolute applicability of this theory in practical situations. But here is what Maslow said in his theory of motivation: Man is a wanting animal and rarely reaches a state of complete satisfaction except for a short time. As one desire is satisfied, another pops up to take its place. When this is satisfied, still another comes into the foreground, etc. It is characteristic of the human being throughout his whole life that he is practically always desiring something. We are faced then with the necessity of studying the relationships of all the motivations to each other and we are concomitantly faced with the necessity of giving up the motivational units in isolation if we are to achieve the broad understanding that we seek for. (Adair, John. Leadership and Motivation.)

3.4.2 Existence, Relatedness, Growth (ERG) Theory by Alderfer Ideas of Maslows hierarchy of needs had strong influence on the notion of how employees can be motivated effectively. Later Clayton Alderfer from Yale University, used ideas of Maslow and other authors to formulate another, more applicable approach that was named theory of survival, belongingness and growth.

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Alderfer(1972) created three-level hierarchy of needs, in which he included approximately the same needs as Maslow but divided them into groups differently. He detached groups of vital needs that include physiological needs and needs for financial security, needs for belongingness, all of which consist all social needs of Maslows, plus social security and needs for social appraisal, needs for growth, including need for selfestimation and self-realization.
Table 3. Hierarchy of needs by Alderfer

Need for growth: Internal need for self-estimation Need for self-realization Need for Relatedness: Social needs Need for social appraisal Need for social security Vital needs/Existence: Physiological needs Need for financial security

There are four key points for understanding Alderfers theory: consistency of satisfaction, disappointment (frustration), consistency of disappointment in reverse and aspiration. First component is consistency of satisfaction, which confirms Maslows idea that higher level needs grow as lower level needs are satisfied. Second component is disappointment, which reveals when an individual tries to satisfy some specific needs but fails. So as a result, disappointment can make satisfaction of this need more important, in spite of the fact that the person can fail again. 24

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In the case of repeated failure there is a third component - return sequence of disappointment, which may lead an individual that failed again to shift their attention towards the needs of the lower level that are more concrete and authentic. Last fourth component is aspiration, which fixes that growth represents internal factor of satisfaction. The greater the degree of the personal growth and development, the greater that person aspires to grow. Therefore, the more one satisfies the need for growth, the more they are interested in doing so. Thus, the conclusion to the theory is the following The need becomes more important when it is less satisfied The importance of the next higher level need rises with the bigger satisfaction of the lower-level need The importance of the lower-level need rises with less satisfaction of the higherlevel need Kakabadse (2004) says: This last point, about need frustration, is particularly important. If individuals cannot get what they want from a job then they just demand more of what they can get. Hence, employees may be disruptive at work, demanding more money, when what they really want is a more challenging job. If staff motivational problems are to be overcome it is important to recognize such displacement behaviour. From the theories considered above, Maslows conception is widely known and used in organizations more frequently. However, according to Komarova (1997), Alderfers model is potentially more applicable because it considers more modern points of view

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and uses deeper knowledge and understanding of personal needs and its role in the organization. (1997)

3.4.3 Acquired needs theory by D. McClelland With the development of the economic relations and perfection of management, significant role in the theory of motivation is allocated to the needs of the higher level. Basing on the work of Murray, researcher David McClelland and John Atkinson contributed a lot to understanding of the needs importance towards success, participation and authority for organizational performance. David McClelland (1965) argues that not all needs are as universal as Maslow proposed. Many are socially acquired and vary from culture to culture. He defined three types of socially acquired needs: the need for achievement, the need for affiliation and the need for power. The need for achievement reects the desire to meet task goals. The need for afliation reects the desire to develop good interpersonal relationships. The need for power reects the desire to inuence and control other people. McClelland argues that it is difcult for people to change their needs, once acquired. Pursuing this line of thought, it is important to diagnose needs at the selection stage. Managers can try to match individuals with particular needs to positions where these can best be satised. (Kakabadse, Andrew; Bank, John; Vinnicombe, Susan. Working in Organisations.) Travin (1995) writes that every need can be a powerful motivational factor for the employees.

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Need for success assumes aspiration of achievement of difficult and interesting goals. Individuals, whose need for success is what drives them to perform their task, receive satisfaction when they achieve wanted results, whether or not it was noticed by anyone. Comparing acquired needs by McClelland to Maslows hierarchy, one can see that the need for success is somewhere in between the need for respect and the need for selfrealization. Need for participation is expressed in aspiration to warm and friendly relations with others. People with a highly expressed need for participation like to work in the environment with a closer contact and cooperation with co-workers. Need for participation by McClelland is similar to social needs by Maslow. People with a highly expressed need for participation are often satisfied with the work environment that provides social opportunities. Therefore, they prefer to work in a closer contact with co-workers and company clients. In cases where managers and staff approve, respect and reward good work, employees with a highly expressed need for participation are motivated to work so that they can gain recognition and respect. Need for authority is connected to internal aspiration of the person to control others and influence their behavior. Depending on how this need is being used, it can have positive or negative influence on administrative success. There are two types of power, where either each or combination of both can satisfy this need.

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1. The aspiration to personal authority assumes aspiration to predominate above others in order to achieve this domination. 2. Social strive for authority assumes gaining power as means to achieve group success. People striving for such authority use it for motivation and positive influence on others and for maintaining the achievement of group success. In usual conditions organization should try to avoid hiring people that seek for personal authority. And on the contrary, it should try to hire employees that obtain social aspiration of authority and which should be prepared and educated to take management roles that would allow them to use the authority to benefit the company.

3.4.4 Herzberg's Motivation-Hygiene Theory (Two Factor Theory). An American psychologist, Frederick Herzberg, has created this theory on the basis of interviews taken from various workplaces, in different professional groups and in different countries. Interviewees were asked to describe situations in which they felt satisfaction or dissatisfaction with work. All answers, says Vihansky (1994), were classified into groups; studying the data, Herzberg came to a conclusion that satisfaction and dissatisfaction with work case by various factors. One person characterizes connection between factors and level of dissatisfaction of employees and another one characterizes connection between the factors and level of satisfaction. Factors in both cases are different. Herzberg named the

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first group of factors factors of context or hygienic factors and the second one motivators (see table 4 below). Herzbergs conclusion was: The one dramatic finding that emerged in our review of this literature was the fact that there was a difference in the primacy of factors, depending upon whether the investigator was looking for things the worker liked about his job or things he disliked. The concept that there were some factors that were satisfiers and others that were dissatisfiers was suggested by this finding. From it was derived one of the basic hypotheses of our own study. (Adair, John. Leadership and Motivation.)

Table 4. Factors influencing work satisfaction

Hygienic factors Type of management Company policy Relations with manager Working conditions Salary Relations with co-workers Relations with employees Status Security Achievements

Motivational Factors

Success recognition Work as such (interest in the task) Responsibility Job advancement/Promotion Professional growth Creative growth

Hygienic factors are connected to the environment where person works and motivators are connected to the work itself. According to Herzberg, the absence of hygienic factors leads to ones work dissatisfaction. Vihansky (1994), however, said that if those factors would be present they would not motivate employee for completing his tasks. If factors 29

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of the context create bad situation then employees feel dissatisfaction, but also these factors do not result in the work satisfaction but rather give neutral feeling. Motivators cause work satisfaction connected to the work itself and needs for selfexpression. The absence of motivators result in work dissatisfaction and its full presence provoke work satisfaction and motivate employees to increase performance effectiveness. (Table 5)
Table 5. Two-factor hygiene-motivation theory by Herzberg.

Application of Herzberg theory assumes two-step process for managing satisfaction and motivation of employees. At first, managers should turn to hygienic needs to ensure satisfaction of employees basic needs in order to remove dissatisfaction. When these conditions are achieved, employees will not have the feeling of dissatisfaction with work and they will not be interested in avoiding work and performing poorly. Later, managers

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can go to the second stage and address to satisfaction of much more powerful needs motivators. If those ones were ignored it would be quite difficult to reach long-term satisfaction and high motivation. When the needs-motivators get satisfied, employees are satisfied and motivated to perform their task/job well. Thus, substantial theories of motivation are based on research of need and revealing of the factors determining human behavior.

3.5 Remedial theories of motivation. Remedial theories of motivation are mainly based on human behavior. Thus, such factors as perception of the situation, ability to gain knowledge and cognition of the environment are considered. Below I will go through two theories that relate to this group, which is Expectancy theory by V. Vroom and Equity theory by S. Adams.

3.5.1 Expectancy theory by V. Vroom Expectancy theory states that individuals have tendency to work on the basis of expectations that their actions will be followed by compensation, which would have high interest for individuals. This theory is based on three variables. 1. Correlation between work expenses and results is estimated by an individuals expectation that certain efforts, put into the process, would bring necessary results.

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2. Correlation between the result and reward is estimated by a degree of individuals reliance that the result, achieved on limited conditions, will result in desired reward. 3. Valence of reward utilities, connecting individual with potential result or reward, outcomes from work completion. Where it is considered as a goal or personal need.

Vroom argues that people will be highly motivated when they feel condent of achieving high performance, the attraction of the rewards is high, they feel that they are likely to receive the rewards if they perform highly and they feel fairly rewarded relative to others around them. (Kakabadse, Andrew; Bank, John; Vinnicombe, Susan. Working in Organisations.) According to Gubanov (1997) Expectancy theory is based on a rule that the presence of active need is not a unique necessary condition of ones motivation for performing certain work or task. One should also hope that the chosen type of activity will lead to their needs, satisfaction or wanted results. The main point for this theory is the expectancy conception. Where expectation can be considered as individuals estimation of probability for a certain event. Expectation is measure by the individual with the help of so-called subjective probability, which has the meaning of 1, if the person is absolutely sure that the event will happen and 0 if they are sure that the event will not happen. Accordingly, meanings

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in intervals from 1 to 0, show that these probabilities work when individuals reliance on the event happening, is decreasing. Gubanov suggests that within the framework of this approach the level of motivation can be appreciated quantitatively. If P1 would be designated as subjective estimation of probability that the worker can achieve set results at the certain work expenses, P2 subjective estimation of probability of payment of the reward for achievement of the set results and P3 is the subjective probability of conformity of reward of the realized needs of the employee, the level of Motivation can be appreciated under the following formula:

M = P1*P2*P3

This formula evidently demonstrates that the motivation is different from zero only in the case when the employee considered all subjective probabilities included in the formula, as essentially larger than zero. Otherwise, employee should consider work as manageable, employer as the person carrying out his obligations and reward as desired.

3.5.2 Equity theory by S. Adams and its application in practice of management Developed by Stacy Adams, Equity theory states that each person subjectively determines the connection between received reward and efforts spent on the performance of the task and then correlates this connection to the similar one, which develops for the other people that perform similar tasks. If such comparison leads employee to a conclusion that these relative values are approximately equal, the 33

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situation is subjectively perceived as fair. If the comparison shows misbalance, then an individual thinks that injustice took place. Genkin (1996) says that in this case the employee can have psychological pressure and can come to a conclusion that they are either not getting paid enough or getting overpaid. As the result, the employee can have aspiration to remove the pressure and in order to restore the justice would want to eliminate misbalance.

Table 6. Adams Equity Theory

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Table 7 is the example of how the reward and input process works:

Reward Input Reward Input Reward Input > = <

Reward B Input B Reward B

Injustice (lower pay) Justice

Input B Reward B Input B Injustice (overpay)

Genkin (1996) argues that the important factor in this situation is a choice of the object for comparison, done by the employee. This theory allocates three categories of employees by their behavioral stereotypes determining the choice of the reference group: oriented on others, oriented on the system, oriented on themselves. Employees referring themselves to the first category, compare themselves to different people performing similar tasks in the same organization, including their friends, neighbours etc in other organizations, which means that their reference group is quite big. Employees that are oriented on the system consider the procedures and policies of the salaries in the organization, both theoretical and existing ones. The consideration of the terms and conditions of salary distribution in the company is a usual characteristic for employees of this category, so their reference group is the organization they work for. The category of the employees that are focused on themselves used to analyze only their own correlation between reward and contribution. They compare this value only 35

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with their own previous experience and previous work. In this case, the reference group is the smallest one, which is the employee themselves. Thus, Genkin(1996) suggests that the following conclusion can be formulated from the Equity theory: motivation of the employees depends on the relative reward not to a lesser degree than on the absolute one. As soon as the employees feel injustice they will act towards the improvement of the situation. Results can be shown in a greater or smaller productivity, it can increase or decrease in quality of the results, affect growth of absences and company leaves. L.S. Vygodsky and his students A.N. Leontiev and B.F. Lomov have reached greatest success among Russian scientists in development of the motivational theory. They investigated problems of psychology on the example of pedagogical activity rather than the industrial one. That is why their study has not received further development. But there is an opinion that all basics of Vygodskys theory can be used in industrial environment. Utkin (1996) stating Vygodskys theory says that there are two parallel levels of development in human psychology, higher and lower one that determines high and low level needs and both develop by a parallel. Which means that satisfaction of ones level needs with the means of the other is impossible. For example, if person needs to satisfy his lower needs in a certain moment of time, then material stimulation start working. In this case, higher level needs can only be satisfied by non-material way. L.S. Vygodsky made a conclusion that higher and lower

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needs develop independently and by a parallel, and jointly control human behavior and his activities. So this theory is more progressive than any other. However, it does not take into account the highest needs of the person. Proceeding from the system representation of human activity, Utkin argues that it is possible to confirm that person makes decision on the level of regulation, adaptation and self-organization. Accordingly, needs should be realized on each specified level simultaneously. So the assumption is that lower, higher and highest needs develop by a parallel and jointly and controlled by human behavior on all levels of his organization, meaning that there is a three-level type of satisfaction of needs exists, through material and non-material stimulation.

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CHAPTER 4

4.1 Methodology In order to strengthen the quality of research, both secondary, with the use of literature, internet and etc , and primary research have been used. For the later one two methodological tools for gathering material were applied: survey and in-depth interviews. Both methodological tools were chosen in order to supplement each other, and provide for the most complete view of the situation as possible. The first company for conducting studies was Logistics team of the Customer Integration Services, DHL Europe. The team included 3 women and 29 men. All of the team members were within the age range of 25-37. The company office is situated in Prague, Czech Republic. The second company was NEOTECH and it has 15 employees overall, 2 women and rest 13 are men. It is less formally structured than DHL and the team age group was between 24 and 30. NEOTECH is situated in Bishkek, Kyrgyzstan. The third company was Physter Technologies. The team of respondents consisted of 8 permanent employees, only one of which was a female. Other employees are contractors that were considered irrelevant due to their short term stay in the company. The age range was between 28 and 55 years. Physter Technology is located in Prague, Czech Republic.

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The survey does not contain open questions but rather give multiple choice answers, thus the overall completion of the survey should not take more than 15 minutes. The questions created provide an opportunity to gather in-depth information on working environments, employee attitudes and top motivators allowing to examine topic thoroughly. Therefore, this method is the best and since it is anonymous and outside of the company, none of the employees should be afraid to share the information. Another method to be used is the in-depth interviews with mainly managers, which allowed to get different perspective on the subject of the research and to extract more detailed information by providing more open questions and giving the opportunity to express their opinions, thoughts and recommendations on improvements, etc. Interviews are to be conducted in the same places as the survey. Both of the methods chosen have certain strengths by containing detailed questions and anonymity which allowed respondents to be more open and share valuable information for this research.

4.2 Research design There are various techniques that could have been used in the conducted research , therefore it was very important to choose the appropriate tool that would best fit the purpose and help to achieve set objectives of this study. Research seeks, through data, to discover underlying truths(Leedy, P.D., Ormord, J.E., 2005, p.89)

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Thus, in order to reveal the truths for the specific topic of the research, it should be designed properly. According to Saunders, research design is the overall plan to answering research question. Therefore it is very important to clearly identify research questions, choose data collection and analysis methods and justifications.(2007) The means for gathering primary research data were survey and in-depth interview. For the survey, a questionnaire, consisting of 35 question, was designed that aimed at revealing employees' attitudes in their everyday job environments. In order to avoid the psychological pressure on the respondents and becoming possible misleading information from them, the questionnaire was sent via email with a guarantee that the answers will not be subject to any other use as for this research and will be protected as anonymous. For the optimal time for filling out the questionnaire, the length of the questionnaire was suited to be completed in approximately 15 minutes per respondent. For the in-depth interviews, consisting of 10 questions, the respondents were asked for their personal opinions and their personal explanations on the selected topics. The structure of interview questions was flexible to fit possible deviations from the initial answers, in order to allow respondents to clarify their views and give them opportunity to express themselves as fully as possible. The time for answering the questions was not subject to any limits. Methods by steps: 1. Research and review of the literature on Employee Motivation and Motivation Theories in general

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2. Create a questionnaire/survey and send it out to the team members 3. Compose questions for in depth interviews 4. Interview people and gather all the answers (whether they are sent by emails or written by hand,..) 5. Collect the surveys and analyze the results with the application of the motivation theories used for the study

4.3 Secondary research Secondary data can be valuable addition to any research, Ghauri says: Secondary data are useful not only to find information to solve our research problem, but also to better understand and explain our research problem also verification process is more rapid and the reliability of the information and conclusions is greatly enhanced. (Research Methods in Business Studies, 2005) Sources for secondary data are: books, internet(corporate websites, online magazines, library, databases), journal articles, catalogues and previous research by the company, which can answer some of the survey questions, because contained information is gathered from inside and therefore provides a more detailed picture on the company, its employees and environment. These factors cannot be researched or observed thoroughly just by a short observation and one time survey or interview. Consequently, it is necessary to find those sources and evaluate them for relevancy. The evaluation process is inevitable part of the process because not every data is appropriate to be used, therefore a number of comparisons should be made and back-

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up information should be found for each specific data to prove reliability and validity.(Ghauri, 2005, p.92) The literature review for this study mainly based on historical studies of theories of motivation and its development, along with the textbooks and other published material both online and printed journal articles. Ghauri cites Churchill(1999:215): do not bypass secondary data. Begin with secondary data, and only when the secondary data are exhausted or show diminishing returns, proceed to primary data.(Research Methods in Business Studies, 2005, p.95) With the help of available sources mentioned above, the core structure of this research has been created and has lead to appropriate primary data selection.

4.4 Primary research In order to support secondary data findings it was necessary to conduct further research to compare the historical development of theories of motivation. Primary data includes focus groups observation, questionnaires and surveys, experiments and interviews.(Ghauri, 2005, p.102) There are certain advantages for using primary data, such as that it was created for this particular study, and in this case consisted of a survey and an in-depth interview. Each of the two had specific questions directly linked to the theory that have been selected as a source for the secondary data. According to Ghauri, after choosing the appropriate method the relevant unit of analysis should be defined. He also says: this is particularly important in an

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international research setting, as the complexity of environmental and contextual factors may have major impact on the topic/area of research(Research Methods in Business Studies, 2005). As mentioned above first method to be used is a survey, which is a strategy that involves the structured collection of data from sizeable population.(Saunders, 2007) this method was conducted by creating a questionnaire and sending it out to respondents. This method suited best to receive statistical data from employees. The second method was in-depth interview, which was aimed on gathering valid and reliable data from managers because more detailed information from a different perspective was required for this study. In-depth interviews are non-standardized and also referred to as qualitative research interviews.(Saunders, 2007)

4.5 Survey Survey research involves acquiring information about one or more groups of peopleperhaps about their characteristics, opinions, attitudes, or previous experiences-by asking them questions and tabulating their answers. The ultimate goal is to learn about a larger population by surveying a sample of that population,..(Leedy, D., P. Ormrod J. E., 2005, P.183) This method has been chosen due to its flexibility and an ability to concentrate on and aggregate large amount of data from the specific research target area. This method provides for rather direct answers from the interviewees that are preselected to the most relevant referential group to the research. This, in turn, allows for a build-up of an

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estimate analysis of the situation. Thus, according to Rugg, Gordon et. al., survey is a great tool of getting the estimate numbers of the research (2006). This methodology tool was especially suited for analysis of the data from the DHL company, which has a large stuff size. If approached in another way, not only it would have been very difficult to survey every single or even the majority of employees, but the quality of data would not necessarily win in quality and relevance. This would be due to the incomplete access to different departmental levels. Therefore, based on the methodological guidelines for a survey focus group, a specific team has been chosen as a focus group, each member of which had agreed to participate in the survey and fill out a specially designed questionnaire. Questionnaire was created out of 35 questions with multiple choices, with a gradation of answers to maximum of four options. The overall survey should not take more than 15 minutes per employee. Questionnaires were sent out through internal email with the approval of the manager. Each company or participant team had a week to complete this questionnaire and send it back to the researches.

4.6 In-depth interviews In order to get a deeper understanding of how management perceives motivation in their organizations in-depth interviews were chosen as a method that can extract more information through its strongest advantage of interacting with people directly and observing their immediate responses. This gave an opportunity to watch people while

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they were answering and see how they felt was valuable key to gathering material on human side of the issue, which cannot be substituted by other non-direct communication tools. As Lisa Guion describes it: The goal of the interview is to deeply explore the respondent's point of view, feelings and perspectives. In this sense, in-depth interviews yield information. In-depth interviews aimed on managers, who, according to Saunders, prefer to be interviewed than fill out a questionnaire. An interview provides them with an opportunity to reflect on events without needing to write anything down.(2007) Managers have been chosen for this specific method to obtain data from different perspective on motivation than the ones from employees. This was important to see how managers perceive this topic and thus, to write recommendations for the company basing on both, managers and employees. Interviews have been conducted in a relax atmosphere with no time limit in order to give the opportunity for each manager to express his thoughts and opinions.

4.7 Reliability and validity Validity and reliability of data is crucial for every research. According to Saunders, validity shows to which extend data collection method is chosen appropriately and to which extend the research findings are accurate in their content. Reliability shows to which extend data collection method that have been used will defer consistent findings.(2005)

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Therefore, it is important to eliminate all the possible threats that can be found in some questions that an employee would be hesitant to answer truly, the timing, avoiding stressful work overload periods, making sure the environment is suitable, in the case of the interview, for example, or privacy issue may arise. Thus the ethical code should be included with each survey and presented at the beginning of the interview, agreeing on all the terms with the respondent.

4.8 Methods of analysis In order to analyze the data gathered from the surveys two methods have been used, such as data matrix and bar chart. Both of these methods are best in representing quantifiable data, which according to Saunders are the ones values of which are evaluated numerically as quantities.(Research Methods for Business Students, 2007)p408 Data matrix is a simple table, each column of it represents a separate variable of collected data. Each row of this table contains variables for an individual case or unit of the collected data.(Saunders, 2007)p411 Second method of analysis method was bar chart that visually more attractive way of presenting findings. It is also more precise representation and is good for using in research papers.(Saunders, 2007, p423) According to Rugg(2006), specific categories needs to be identified and counted how many times each subject came up in the answers. Then it is a matter of choosing

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whether the result will be presented as a number or as in the case of this research, as a percentage. Research findings were all presented in percentage form to generalize results of the whole company by sampling a specific group of employees that the access was granted. Both of the methods, data matrix and bar chart were supported by description to avoid confusions and make finding comprehensive to any reader.

4.9 Contingency plan Contingency plan is necessary to provide a back-up or secure research in a case of failure. This study has been conducted in three different companies of various sizes. Thus, if one of those companies would have refused to participate in the research or not enough of sufficient data would have been collected, another group of similar size companies have been found. The completion of both interviews and surveys would have been required to obtain necessary data to complete this research. In order to avoid this step that would have not only slowed down the research process but also might have required additional sources and more time spent on this stage. Therefore, all the threats should have been eliminated by providing maximum convenience, flexibility, necessary and requested information for each company.

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4.10 Ethical consideration Ethical consideration should be created in order to avoid one of the potential threats not only for data validity and reliability but also for overall completion of the interviews and surveys. According to Ghauri: Ethics are moral principles and values that influence the way a researcher or a group of researchers conducts their research activities. (Research Methods in Business, 2005, p.19) Therefore each of the moral considerations should have taken place and code of ethics have been created to support this research.

Code of ethics 1. I will not require any personal or contact information of the survey participants 2. Any personal or contact information will not be used reason for this statement is that participants will be sending surveys back by their email. Survey will then be downloaded and stored without any contacts 3. I will not push any of the participant to fill out the survey 4. All research findings will be used strictly for my own research purposes 5. None of the information will go to public publications or company management 6. I will be objective in analyzing the results of the survey 7. Full confidentiality and privacy of the content will be provided

After presenting the code of ethics above to the manager of each company the permission was granted to conduct the study inside of each company. This code of

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ethics was also attached to each email with the survey and when employee agreed to it, the survey was completed and sent back tot eh researcher. In the case of the interviews, code of ethics was presented due to the start of it and interview continued upon mutual agreement on each point of the code.

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CHAPTER 5
5.1 Analysis Major motivational factor in labor market is the degree of satisfaction of the person in terms of the work place/environment and the work itself. And it is easy to assume that the increase of the employees work satisfaction will inevitably result in the increase of their efficiency. Though between work satisfaction and working parameters there is a rather complex relation that many researchers tried to show that high work satisfaction renders positive influence on employees performance. It is connected to the fact that high employees motivation improves their attitude towards work and organization, also promotes growth of the labor and executive discipline and as the result, efficiency and productivity of the employee grows. Another thing that should be considered is the consequences of work dissatisfaction. Because the less employee is satisfied with the work place and his/her responsibilities, the weaker his/her connection will be with this company. It is expressed not only in the desire to leave the company but also in a lower level of labor and executive discipline and in increasing number of absences. And so if best employees start leaving the company or productivity level worsens, then the efficiency and inability to react on environmental changes can dramatically fall. Thus, employee work satisfaction has strong influence on competitiveness and survival of the organization.

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5.2 Survey Survey was created specifically for the purpose of this research and sent out to the employees of all three companies. However it is important to state all the questions clearly so that employees would not spend extra time on answering. The following analysis would show questions and charts underneath with small descriptions of possible difference considering three different companies. The analysis presented in the basic tabular charts and bar charts stating the question and description.

How long have you been with your company?

WORK PERIOD
DHL up to 2 yrs 2 - 5 yrs 5yrs + 20% 70% 10% NEOTECH 10% 90% PHYSTER 87% 10% 3%

This table shows that the majority of employees from DHL and NEOTECH have been working in their companies for over two years, which may have a certain effect such as, for example, the employees of PHYSTER have been working in the company for less than 2 years, which means that they are more enthusiastic.

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Do you know your company values?

COMPANY VALUES KNOWLEDGE DHL yes yes, able to list them yes, but cannot list them no 39% 30% 20% 11% NEOTECH 40% 34% 16% 10% PHYSTER 19% 15% 10% 56%

The table above shows whether employees know their company values and the numbers represent quite discouraging figures because not knowing companys values also means not knowing what an employee is working for. Therefore it is very important that the manager is constantly communicating what the company goes for, its values and goals, that influences motivational level of each employee and may cause dissatisfaction with work, according to Herzberg. The following chart represents two questions:

Do you know what is expected from you and your team? Are you aware of the fact that your success affects your team and the company?

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The awareness chart shows that most of the employees do know what is expected from them and that their success has direct effect on their team members and the company as a whole. This can also be related to Herzbergs theory when he talks about achievements and responsibility, once obtained, causing higher level of satisfaction for each employee. McClelland also writes about the need for success because achieving it, employees receive great satisfaction and are motivated to continue working on the same level. The next bar chart represents question 6 and 7

Do you enjoy working in your company? Do you see yourself in this company in the future?

Satisfaction level varies in each company and even though the majority of employees in all three organizations do want to stay working in their companies, most of them say that the conditions there could be better. By the conditions they see the following: the

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environment, job tasks, co-workers, salary and other things that constitute their daily routine. However, quite a few employees do enjoy working but there is still a small amount of those who would rather leave their companies. Working conditions is a big factor and Herzberg says that if its not suitable for daily routine, cause high dissatisfaction level of employees and they loose motivation to work.

Does your company provide a clear and effective system of appraisal and career development?

This chart shows that the smaller the company the better the system of appraisal and development. This can be connected to the fact that big companies are simply busier maintaining other things than taking a good care of their employees growth. Whereas small companies do understand the value of the employees better and therefore provide a rather clear and effective system of appraisal and career development.

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And there were some interesting suggestions/comments from the employees: Have not had my appraisal completed by anyone with any real knowledge of what I do or interested in my progression. I am hoping my new line manager will change all this... more organizational structure and awareness needed System of appraisal consists of various factors such as compensation and recognition, for example. This is a very powerful tool and Expectancy theory by Vroom is talking about relations between the reward or compensation and efforts that employee put s into completion of his/her work. Therefore, when employees know that they will be rewarded for successfully completed task, they will be willing to put more effort in performing it. This leads to the next question.

Do you feel valued by your company?

Mentioning the value of employees and the size of the company, the chart above demonstrates that DHL, being a big company, where employees are quite not sure 55

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whether they are valued by their managers, therefore the number of yes answers is lower from the smaller companies. Maslows theory of needs suggests that on the third, belongingness, level every person has a need for respect, which include recognition, aspiration of persons achievement. This also find support in Alderfers theory with the need for relatedness, when employee knows hes been valued at work, he tend to relate to this social group.

Do you know your companys unique selling preposition in comparison with competitors?

The value of this question is similar to the one asking whether employees know companys values because in order to produce good quality work each employee, including management should know the common goal, values and how the company is different from the competition. This not only improves motivational factor but also reduces the confusion level. From this chart it is clearly seen that the majority of the employees are unsure of what their companys unique selling preposition is. 56

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How important do you think your role is in your company?

Important Unsure Unimportant

Role Importance DHL NEOTECH 60% 90% 35% 5% 5% 5%

PHYSTER 85% 12% 3%

The majority of the surveyed employees as it shown in this table do say that their role in the company is important the discouraging factor is that the next big numbers say that those employees are unsure whether or not their role worth something. This is quite similar to the value factor because employees get frustrated when they dont know if their role is important enough. Thus, according to Alderfer the need for social appraisal must be satisfied.

Do you enjoy coming to work?

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As mentioned previously, Hezberg states that hygienic factors are directly connected to the environment where person works that include all of the three factors from the bar chart above: working conditions/environment, salary and co-workers. The chart above shows reasons why employees enjoy coming to work every day and it is clearly not the money they are making. Good relations with the co-workers and nice environment are by far better reasons and when considering of improving working conditions, each manager should make sure that working environment is not only matching requirements for the specific job and industry but also that it makes it pleasant to be in.

Do you receive support and encouragement from co-workers?

This chart has absolutely different results from one another. DHL has relatively similar number of those who receive encouragement most of the time and sometimes.

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Whereas NEOTECH and PHYSTER have a big gap in between the two and they are quite opposite. NEOTECH employees are by far more supportive to each other than the ones in PHYSTER, who most likely concentrate on other things like getting their work done or being hostile. According to McClelland, every person has a need for participation, which consists of friendly relations with others. Thus, an employee would far better prefer to be working in a company with closer cooperation with his/her co-workers.

Do you feel that you have to compete with others in you team?

The competition factor chart shows that employees of big companies have a lot bigger competition among each other and small companies barely know what that is. Competition is considered as an important motivational factor that drives people to show that they can do better; therefore the productivity level is more likely to rise. However, this doesnt have to mean that productivity level of smaller companies is lower due to lack of competition. In contrary, employees of the smaller companies are

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far more motivated by other factors, such as the appraisal system, as it was shown earlier, for example. Competition can be related to the personal growth factor that according to Alderfer includes need for self-estimation and self realization.

Are you proud to be part of your team?

This chart shows that even though employees of all three companies are not very proud to be part of their team, they feel quite satisfied to be working there. Nevertheless, there are quite a few employees that are not proud to be working in their companies, DHL and PHYSTER have bigger number. This can be result from various aspects in their surroundings and relate to the mentioned theory above of the need for relatedness and social security by Alderfer.

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Do you trust people you work with?

The trust chart demonstrates that people in smaller companies have more trust for each other that may also be due to less competition, which always creates tension. Trust is an important factor and Alderfer argues that need for social security is crucial. When people dont trust each other they dont feel secure in this social group, which lead to de-motivation and frustration.

How do you feel towards your boss?

FEELINGS TOWARDS BOSS DHL neutral inspiration fear admiration respect 20% 10% 5% 5% 60% NEOTECH 5% 7% 5% 3% 80% PHYSTER 12% 5% 3% 7% 73%

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This particular table might be interesting to managers to know what their employees feel towards them. Most of the answers say respect and only very few employee do admire their manager or take some inspiration from them. This is rather discouraging, because managers are the ones who should lead with passion, inspire by showing good example and be always there when it is needed. According to Herzberg, relations with manager are very important for motivation of employees.

How do you feel in comparison with your team members?

This chart shows that most of the employees of all three companies feel equally among each other. The competitiveness is slightly higher at DHL, which links to the competition factor that was mentioned earlier.

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Does your company provide you with the opportunity to develop new skills?

The new skills development chart tells that each of the three companies do provide special trainings to develop new skills of their employees. This allows personal growth and according to Herzberg is a powerful motivational tool to drive people.

Do you get punished for your poor performance?

Punishment bar chart demonstrates that companies do punish their employees mainly sometimes. The never answers are most likely come from the employees that either

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have been performing well or they havent reached the punishment level, or in other words maybe their mistake was too minor to be noticed. Overall, each company should provide a clear separation and demonstrate that good work will be rewarded and poor performance will be punished. This can be done by lowering wage, not giving bonuses or any other benedictional aspect that company provides.

How much of your time is spent on valuable work?

TIME SPENT ON WORK daily hrs in % 20 40 60 80 DHL 6% 9% 55% 30% 33% 33% 34% 5% 20% 75% NEOTECH PHYSTER

This is another question that perhaps managers would want to know what their employees are doing and how they spend their working day. Sadly for them there is still big number of employees that spend more time on other things not related to their direct responsibilities. But nevertheless, the number of people actually working full day is quite big, NEOTECH, for example, demonstrate that its employees are hard workers.

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Do you attend every department meeting?

DEPARTMENT MEETINGS ATTENDANCE DHL all of them compulsory ones most of them none 5% 20% 70% 5% NEOTECH 80% 10% 7% 3% PHYSTER 2% 5% 85% 8%

The table above shows that employees of DHL and PHYSTER do go to most of the staff meeting but they do not attend all of them, which can have a certain effect that they are less informed or perhaps they are not very much interested in the companys updates and performances.

Do you finish work..?

This is a very positive chart because most of the employees do finish their work on time, however there are very few that do ask for an extension to finish their projects.

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There are many factors involved motivating employees to complete their projects, such as working conditions, work itself or appraisal system, which are the hygienic factors by Herzberg.

Do you get easily distracted by?

This chart says that most of the time it is the noise that cause the main distraction at work and then only comes the co-workers with occasional chats that keep people from completing their projects.

Do you feel that your work environment suits your daily tasks?

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Both DHL and NEOTECH agree that their working environment suits the tasks they have to complete, whereas 82% of PHYSTER employees say that it actually could be better. This question also related to Herzbergs theory and working condition as motivator, which enhances desire of employees to complete their tasks.

What effect your company rules have on you?

The chart above demonstrates that employees of DHL and NEOTECH are affected by the company rules to some extend, which sometimes makes them feel quite limited and have some effect on their performance. Employees of PHYSTER are not limited by the company rules, which gives them freedom and therefore more motivation. Herzberg suggests another hygienic factor relating to company policies and administration that when these two has large influence on employees performance it creates dissatisfaction.

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When do you leave work?

EMPLOYEE LEAVE WORK .. DHL when shift is over when work is complete between both 40% 50% 10% NEOTECH 8% 90% 2% PHYSTER 2% 95% 3%

This is another very positive chart demonstrating how hard working employees of the chosen companies are. That most of them do not leave home until they finish their work. This, as also mentioned previously, relates to hygienic factors of Herzbergs theory, these factors drive those employees to stay over time and finish their task to receive a reward or get recognition, for example.

Do you get acknowledged publicly in case of your success?

This chart says that employees of DHL and NEOTECH do get acknowledged publicly of their success, which makes them proud and encourages them to keep up on the same 68

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level. As for the third company, PHYSTER, unfortunately their employees do not receive this recognition. This is the factor that Herzberg is discussing in his theory by saying that each person has a need for success recognition in order to be motivated.

How do you feel when criticized?

Criticism tolerance chart shows that DHL and PHYSTER employees, the majority of them, do accept criticism with appreciation, whereas next majority just tolerate it. Criticism or in other words, negative feedback is perhaps more important than the positive one because people learn from mistakes and not when they do things right. This leads us to the next question of how people prefer to be criticized? where the majority of employees of each company prefer to be criticized one on one.

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Do you feel you can express your opinion freely?

Employees of DHL and NEOTECH are able to share their opinion freely among each other, whereas employees of PHYSTER can do it only in some circumstances. Similar to the trust factor and Alderfers theory, people need to feel secure among each other and when it is missing they dont feel comfortable share personal information and communication is also lacking.

Do you believe you can openly talk about your future perspective?

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Employees of the smaller companies have no fear of sharing their future perspective with their co-workers. But DHL employees do it only sometimes; it might be due to their high competition level, as mentioned earlier. This question is also related to Alderfers theory as the one above, there is no trust, no social security.

How often do you get asked for an advice?

The chart above show very different results. DHL employees have quite similar numbers for being asked very often, not often or sometimes, which is the bigger number of them all. NEOTECH employee are always consulting with each other and people at PHYSTER do ask each other sometimes.

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When you make mistake, do you feel..?

Everybody makes mistakes but the reaction to it differs from one another. The results of the survey demonstrates that there are very few people at DHL that actually afraid that their mistake can be used to their disadvantage. But the positive aspect is that the majority of the employees of all three companies do learn from their mistakes.

The final question is - what is the best motivator for you?

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This chart demonstrates motivators and the place that employees put them to, starting from 1 the top high and a very low level of 6.

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This particular question is very important because it shows what employees are really driven from, what motivates them in their daily routine and makes them wake up every day to go to work. Employees of all three companies put money on the second position, which proves the statement of this research that money is not the main motivator. That if working environment doest suit daily tasks, relations with co-workers or management is not good or an employee simply doesnt like what he or she is doing, money will not keep this employee from all those frustrations. This last question fully reflects Herzbergs theory, showing how different motivational and hygienic factors drive employees of each company.

5.3 In-depth interviews In-depth interviews gave more detailed ideas of how employees can be motivated. Employee motivation through work organization Motivational influence on the employees has not only traditional means of stimulation such as money and moral issues but also characteristics of performed task, according to Herzbergs theory. Work disposition, interest in final results, willingness to work with high efficiency, those are the basic displays of working behavior, which shows high level of motivation, thus, substantially depends on characteristics and content of the task. Therefore, in order to achieve desirable results by influencing employee motivation, it is

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necessary to pay attention to the main characteristics of the given tasks for the employees.

Primary influence on employee motivation has the following characteristics of performing tasks: 1. Variety of skills required for performing particular task 2. Completeness of tasks performed by the employee 3. Value, importance and responsibility of the task 4. Independence given to the employee 5. Feedback

Variety of skills is different from the office worker dealing with clients and IT person doing similar tasks everyday, which makes work monotonous and reduces interest towards it. Both of the companies provide similar IT services and each employee has his/her own role, whether it is big or small company. And if to assume that each employee is performing separate elements of work for the overall achievement towards the goal of company, such work organization raises degree of the responsibility, gives knowledge and importance of performed tasks. Importance of the task is the influence that performed work has on people inside the organization. That is why it is important to know that each employee is responsible for his/her actions and that it may have either positive or negative influence on others.

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Independence given to the employee is the area where this employee has freedom and right to plan, define schedule and perform tasks his way. Opportunity for independent decision-making raises feeling of own responsibility for performing particular task. And feedback is the information that employee receives concerning the effectiveness of his work. Regular feedback gives employees knowledge of how their work has been done. If work is organized so that employees receive feedback, then they have more understanding on whether they are good at performing those tasks. This is important as it motivates them to either improve something or work on the same level of productivity.

Motivation through set goals The idea that motivation of the employees can be strengthened through establishment of the company goals is an important part of the management philosophy. Motivation of employees thus depends on the following characteristics of the goal and how the process of its realization and establishment is completed. This has direct connection to achievement of those goals, that Herzberg states as hygienic factors. 1. Concreteness. The more concrete goals are established, the more employees will understand how and when they should achieve them. 2. Complexity. Meaning the level, which is quite difficult for the employee to achieve goals but still manageable.

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3. Acceptability. The degree where employee accepts goals and want to achieve them 4. Active participation. Which allows employee to feel own responsibility for the future success of the work.

System of material stimulation Each manager wants his employees to show higher level of effectiveness and productivity, so that they would be interested in the organizational activities, share its goals and take active participation in problem solving that prevent company from performing well on the market. Money is thus most obvious and frequent stimulus used in employee motivation process, supported by Vrooms expectancy theory. System of material stimulation, except for salary and bonuses, which are rather shortterm motivator, because once those are gone, employee needs another stimulus, can include pension accumulation, participation and profits, training and development programs, loans, paid holidays, food cards, transportation, family benefits and etc.

Moral stimulation of the employees Money, certainly, is the powerful stimulus to work. However it is necessary to understand that people have different attitude towards money. Besides, the biggest problem concerning financial rewards is that people get used to the new higher payment that very soon becomes usual for him/her and now employee needs more for higher motivation. Every organization has rather wide spectrum of non-material

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stimulation that include honor boards, competitions, holiday trips for best employees or teams, celebrations, diplomas and certificates, achievement or appraisal programs, posts and reviews and other factors that Herzberg argues about in his theory. Unfortunately, only few of the mentioned above is applicable in chosen organizations.

5.4 Summary of findings Analysis of the surveys and interviews revealed supportive scope of information to the previous studies on theories of motivation. Especially theories by Maslow and Herzberg proved to be correct to all of the three companies. Consequently, employees require not just one but the whole set of drivers that would keep them motivated in both personal and professional lives. The main areas where employees lack motivation are: Decision Making employees are often very limited at their work and dont feel motivated to complete certain tasks, therefore work enrichment, for example, gives more responsibility and certain amount of decisions to be made. This enhances motivational level and drives employees to complete tasks to get social recognition. Team Work is another area where people usually lack team spirit, dont have good relations, which created unhealthy environment and tension. Thus, by enhancing more group work, some of those issues can be eliminated. Communication is an important factor on every stage. Lack of communication leads to lack of knowledge, this leads to less efficiency and etc. the chain will

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continue to create even more frustration for both, management and employees. Therefore, it is very important to establish good communication on every level and make sure that most effective and efficient ways of communication for each situation is used. Reward System is a complex motivator that depending on the type of it, has long or short effect. Consequently it is crucial to support employees by different means such as long-term bonuses, family incentives, vocation plans and etc.

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CHAPTER 6

6.1 Conclusion In order to examine the process of employee motivation and methods of its improvement in this paper, research tools on motivational approaches and its improvement were executed. On the basis of motivational theories, revealed that there is an indissoluble connection between biological and social need of the person. Motivation makes human behavior purposeful and his/her goal will be to reduce or liquidate the condition of need for something. It has been revealed that high efficiency or output from employees is possible only in the situations when they are interested in the final result, and will positively relate to performing work. It is possible only when process of work its final results allow person to satisfy his/her most important needs. By studying theories of employee motivation and carrying out the research at DHL, NEOTECH and PHYSTER it is possible to formulate four basic principles of the employee motivation in these companies:

1 - Decision Making Involve employees in active participation in organizational activities. Good manager encourages his employees for participation in creating goals and determining standards for performing their tasks. Employees that participate in mentioned activities, work

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harder and strive for success because they are working on tasks that they helped to develop. Also because it is them (employees) who set the goals not the manager that forced them (goals) to make employees work harder. It empowers employees; give them more responsibility, which according to Herzberg enhances employee satisfaction. Therefore, manager can try to make decisions only after employees have taken active participation in its preparation. Give employee an opportunity for growth. It is important to show sincere interest in the employees, their growth and progress. It can be expressed by means of giving more complex tasks to the employee, delegate more responsibility for performing certain tasks. If the employee grows professionally, he/she usually has higher motivation and is more satisfied with work. Regular provision of employee development opportunities drives them for personal growth, according to Herzberg. Establish realistic goals for yourself and others, they should be more complex, interesting and real. Thus, goals should be manageable. If employees think that set goals are too complex, their motivation will be reduced. Make work interesting. The loss of interest connected to boredom and monotony and can create different kinds of problems. Therefore it is necessary to reveal uninteresting monotonous tasks and make them more acceptable. Possible approaches would be work expansion and enrichment and delegation of authority.

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2 - Team Work Encourage cooperation and group work. People need to be related to specific social group, they also need to feel safe in that group. According to Herzberg and Alderfer, by encouraging team work, environment becomes friendly and employees have more trust and openness for one another. Therefore, in the organizations where there are friendly atmosphere and relations between the staff, employees cooperate with each other with greater willingness. It also allows to create and strengthen command spirit and to improve overall performance of the team and organization as a whole. United team promotes satisfaction of need for safety, estimation and self-respect.

3 - Communication Provide regular feedback to employees, how they work, about achieved progress and arising problems, because feedback raises employees motivation and improves their work and skills. Communicate with your employees more often, it is necessary to explain what is going on in the company and why it should be done. Open communication allows strengthening trust and mutual understanding between manager and employees. Support employees when they need it. It improves cooperation and relations between employees and the manager and raises motivation towards achieving set goals and satisfies hygienic factor by Herzberg.

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It need to make certain that employees understand how their work is connected to satisfaction of their needs for achieving their personal goals. Motivation of employees rises if they see that achieving goals help them in achieving their personal goals. Treat employees individually. The majority of the employees appreciate the opportunity to share their ideas and to get an opinion or feedback from the manager. It raises the feeling of attachment to performing task, raises self-respect and feeling of being valued as an employee. Be sincere while praising employees. The insincere praise can be easily recognized and will be useless, when it is sincere, it can become a powerful mean for increasing level of employee motivation. All employees appreciate praise and recognition for wellperformed work. If manager praises employee for mediocre or poorly done work, those words would mean absolutely nothing. Thus, there is only one rule: be fair and sincere in praise and recognition of the employees.

4 - Rewards/Appraisal System Define rewards and encouragements that would be valued by every employee. It is easier to influence on employees motivation if you know what is more attractive for them. Connect reward with results. Vroom argues that employee motivation for achievement of set goals is higher if they are informed of what they should do in order to be rewarded. And this reward should be equal to achieved results.

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Organizations usually get what they encourage. Stimulation system should be designed to initiate, to cause desirable types of behavior, for that, it is necessary to create such programs that would stimulate those types of behavior that would help in achieving wanted results instead of trying to use already existing approaches for material and moral reward of employees. Do not reward all employees equally. In order for behavior reinforcement to be effective, reward should be based on the work results. Identical reward for all employees will stimulate average or bad employees and will ignore high efficiency of best employees. The absence of reaction can also influence on employee motivation. Manager influence their employees by what they do and by what they do not do. If manager will not praise distinguished employee, last one will put less effort towards achievement of greater result.

6.2 Limitations One of the biggest limitations is the time constraints. In order to conduct a survey and interview permission should have been granted. Dealing with real organization it has taken more time than expected. Even though the survey should not take more than 15 minutes, employees had to find spare time to do it. Surely enough, few of them might have simply forgotten to do it in their daily routine or due to project overload. Another reason for not receiving all of the surveys back was, perhaps unwillingness to share information or even fear that some of those answers can be seen by their

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managers. This might have leaded some of employees to make their answers rather positive. And also because it was not obligatory, participants may have chosen not to answer the survey and in this case, there would have been less material for the research findings.

6.3 Recommendations Management of all three organizations should pay attention to the following factors by reorganizing work motivation of the employees. The reorganization of work directed on increase of the employee motivation level, assumes all of the factors influencing motivational sphere of the employee and his /her attitude towards work. There can be allocated four different factor groups: 1. Decision Making 2. Team Work 3. Communication 4. Reward/Appraisal System

1 - Decision Making includes: Involve employees in active participation in organizational activities. Give employee an opportunity for growth. Make work interesting.

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Features of work ethics. Employees, for who work, is the main sphere of selfdetermination, who are disposed to hard work, careful attitude towards company resources, working hours, aspiration to take big responsibilities, with greater readiness to accept expansion and enrichment of the roles and responsibilities. Organizational culture. Norms, values and beliefs shared by the employees of the organization, can both raise and lower level of employee motivation. Culture that emphasizes respect for the employees, involves them into decision-making process, gives them independence in planning and performing the tasks, stimulates more selffeedback of the employees, increases interest in the successful competition of the tasks and company goals achievement. Administrative practice. Administrative practice of the company (planning system, work organization, performance control, training and decision-making practice and etc.) has strong influence on employee motivation. The more training practice is oriented on finding the potential of the employees, on the account of their interests, the higher the level of employee motivation, willingness to benefit towards the achievement of company goals. Expansion and enrichment of work. One of the first modern ways to improve employees attitude towards job performance and increase of the work motivation, adding the action of the money stimulus, consist of re-organization of work according to principles of work expansion. That assumes great work content, increase of the number and variety of tasks, which are performed on the same level of complexity.

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Work enrichment practice of granting the opportunity to have more responsibility and greater control over their task performance. People that are performing enriched work, have more opportunities to work on higher level of complexity and responsibility, have more opportunities for self-control in a counterbalance to the external control. Work enrichment is connected to such work organization, which includes different types of tasks and requires higher level of knowledge and skills. As opposed to work expansion, it is not necessary to perform a lot of tasks but supposed to have big responsibility and independence. Work directed on influencing employee motivation through their work enrichment will go easier if to know principles underlying such work and their influence on employee motivation.(see table that was created as the result). Restrictions and difficulties connected to work enrichment. Significant difficulties interfering with the use of work enrichment for influencing employee motivation are connected to those by the individual characteristics that determine susceptibility or immunity of the people to various aspects of work enrichment. Some employees are not attracted to work enrichment. If the get pleasure from work it is not necessarily comes from the work content or formal work organization, it depends more on the relations with the co-workers. So the question arises: which employees react more positively on the work enrichment? One of the researches has shown that those are people with high need for achievement, because work enrichment gives more opportunity for success achievement. People that do not care much about success do not get satisfaction from work enrichment.

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For some employees work enrichment does not represent any interest because of restricted opportunity of communication. Employees suppose that work can be unpleasant and boring but if work enrichment assumes reduction of social activities, such as communication, it can be completely unacceptable for them. Introduction of the work enrichment program can have negative influence on many employees, causing fear of failure due to increased complexity, responsibility and unwillingness to depend on the results of other peoples work, because work enrichment assumes high level of cooperation. Low responsibility, security and relative independence are more important for some employees, than the opportunity of rights expansion, growth and enriched work. Work enrichment is a valuable method of influence on employee motivation but management should use it selectively, taking into account individual characteristics of employees and environmental changes.

2 - Team Work includes: Encourage cooperation and group work. Working group and motivational environment that has developed in it, render significant influence on work motivation of its members. As the majority of the employees aspire to have good and friendly relations with co-workers, they try to act according to the norms and values of this group. If the group opposes itself to the company management and administration, considering high-efficiency and productivity

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employees as self-seekers, then employees wont likely be working with complete efficiency or output.

3 Communication includes: Provide regular feedback Communicate with your employees more often Support employees when they need it Treat employees individually Be sincere while praising employees Each person is different; therefore, it is important to consider different factors when communicating with employees. Age. Younger workers accept feedback, changes and other information with greater readiness. More senior employees would rather prefer avoid criticism, change and would prefer repeating tasks, for example, as they already have adapted to them and know how to perform them well. Education. The higher educational level of the employee, the more they appreciate independent, difficult and perspective tasks, they are more open to accept information manager provides them with, whether it is a feedback or a word of appreciation.

4 - Rewards/Appraisal System Define rewards and encouragements that would be valued by every employee. Connect reward with results.

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Organizations usually get what they encourage. Do not reward all employees equally. The absence of reaction can also influence on employee motivation. Many employees consider work only as the source of money that allows them to do different interesting activities outside of work. And it is impossible to ignore such differences. Attempts to modify work of each employee in all organizations in order to increase potential of the employee motivation can result in that the satisfaction and productivity some part of the employees will decrease. Personnel policy. Methods of employees stimulation, size of the salary and privilege for the people (holiday, pension, etc.), training and development of the employees, social security and other factors of personnel work, render the most direct influence on employee motivation. Personnel selection influences desire of the employee to longterm work in the organization and raises his/her adherence of this company. One of the approaches of work re-organization consists of work re-construction with the use of the three basic methods: work expansion, work enrichment and increase of the quality of work life.

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CHAPTER 7
7.1 Self reflection Conducting this research and writing report to it, perhaps was one of the most challenging experiences in my educational pathway. It was not only due to the complexity of the project and everything involved in it but also of what Ive learned going through every stage of the project. Motivation is rich area of study; therefore, it was quite difficult on deciding which theories would best apply. The selection of motivational theories played big part in choosing the most appropriate research methodology that constituted the survey and in-depth interview, both of which should have been linked on discovering specific aspects of those theories. The survey appeared to be too long and some questions were quite similar, which might have caused certain confusion but from another hand, it gave wider range of answers, which detailed the overall picture of the subject quite well. Interviews were limited to only 10 questions allowing to get a deeper understanding of the research topic. Another difficulty was to choose the appropriate method and analyze the data that have been gathered from the survey and interviews. Main tools for that were the bar charts and tables, both of the methods were quite simplistic and easy to read. The conclusions of the research turned out to be interesting and Ive learned that theory does not always apply to practice. When books drawing a perfect picture of how things 91

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should work they dont consider a lot of obstacles that constantly appear when that described theory is applied in the reality. Most of the theories are very generic and it was interesting to see how peoples mindset is different and what they really want and need even when they appear to have everything. I think that this research would also require some observation and more time to be spent around employees in order to get a broader scope of the subject. In addition to that I would also come back to each of the chosen company with the results and recommendations by trying to test them in the reality and see if I actually made the right conclusions. That would be fascinating prove to my research. The implementation of this, however, requires a lot of time, which I was quite limited in. Throughout the whole process of writing this paper, I have been struggling with managing my time, trying to organize and prioritize the steps that need to be done on every stage of the research and report writing. If I had an opportunity to go back and change some of the things, the first would be to manage the time wisely. Putting the deadlines was easy but meeting them was always difficult because I had tendency of postponing every other deadline. This was also the result of not realizing the complexity of this project and therefore not putting the priorities right. According to Academic Skills Center at Dartmouth College (2001) time management is a great tool that provides the following advantages:

gain time motivates and initiates

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reduces avoidance promotes review eliminates cramming reduces anxiety

Each of these points if used time management wisely, could have made the whole writing and researching experience easier and less stressful, therefore, I regret for not using it. I also could have communicated with my supervisor more in order to receive sufficient feedback that would put me on the right pathway and help me to carry-on on my research and report writing. Due to lack of communication it was quite difficult on some stages not only in continue writing but also in looking at the project from another perspective and objective point of view. The last couple of very last-minute meetings with my supervisor showed me a lot of imperfections that I was not able to see due to being too much involved with this project. Thus, it was absolutely useful and productive to me, because my supervisor showed an outside perspective and how this project looked like and what it was still missing. The organization of the interview and selecting criteria for respondents might have revealed limited results. Since it was only managers who have been interviewed, Ive obtained data only from their point of you, which in many cases might have been quite subjective. Whereas the results of interviewing employees might have given a more

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detailed and interesting picture. Also comparison of the two would have shown how management and employee level perceive the same topic. Other than that, I believe that this research revealed very interesting findings and that this valuable information will be extremely useful not only for my own use in personal and professional lives but also those findings can be directed on improving motivational level of each of the company participated in this study.

7.2 Learning experience While working on this dissertation Ive obtained incomparable knowledge of the motivational theories. How those theories applied in practice, how people are different in their needs and personalities. In addition to that, it was interesting to learn that size of the company plays big role for employees and influences their working mood and motivation. I also had great opportunity of meeting real managers that shared their life-long experience that wouldnt be found in theoretical books. This also allowed me to understand what pathway I want to choose for my future career and I believe that this gained knowledge will enrich me not only as a person make me a valuable asset for any company. Ive also learned that time management skills, self-organization and ability to set the priorities play crucial role. Those are great tools that worth obtaining for the life-long experience because they put things in order and help on every step every day of a persons life.

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Consequently, it increased confidence in my personality and abilities to work on complex project without a fear of being incompetence. Throughout working on this project Ive gained valuable knowledge in academic writing, which helped me to improve my writing skills. I have also learned how to put report together and different methods for conducting research and analyzing the data. Another important aspect of the process that I have learned is that communication with supervisor is very important because it would not only help me to set the priorities for the project, meet set deadlines but also to receive feedback that was crucial and helped me to proceed on the project. Overall, it was overwhelming process but through the hard work, even though a lot of which was last minute, I was able to extract useful knowledge of the academic aspect of this study.

7.3 Summary In order to conclude, I have to say that process of learning is very difficult, therefore it is extremely helpful important to use all of the given tools, such as literature or supervisor, for example, that were available to me. In most of the cases I was simply lacking selforganizational skills but I believe that Ive learned so much throughout the whole year by gaining great knowledge and experience. Consequently, it will help me in my future career by being valuable asset to any team and being able to share this knowledge with others.

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LIST OF REFERENCES

Adair, John. Leadership and Motivation., London, , GBR: Kogan Page, Limited, 2006. p 61, 82. http://site.ebrary.com/lib/pcollege/Doc?id=10167419&ppg=61

Alderfer, C.P. (1972) Existance, Relatedness and Growth, Free Press: New York. Bruce, Anne. How to Motivate Every Employee, Blacklick, OH, USA: McGraw-Hill Trade, 2002. p 4. , http://site.ebrary.com/lib/pcollege/Doc?id=10040265&ppg=4

Ghauri, P. Gronhaug, K. Research methods in business studies, Pearson Education Limited, England, 2005. 3rd ed. P. 19, 92, 95, 103

Genkin B.M., Konovalova G.A. Basic Human Management, Russia, 1996. Gubanov S.A. System of work organization and reward. // Economist magazine No.3, Russia, 1997.

Kakabadse, Andrew; Bank, John; Vinnicombe, Susan. Working in Organisations. Abingdon, Oxon, , GBR: Ashgate Publishing, Limited, 2004. p 76, 78, 81 http://site.ebrary.com/lib/pcollege/Doc?id=10211321&ppg=78

Komarova N.N. Employee motivation and productivity increase. // Human and labor magazine, No. 10, Russia, 1997

Leedy, D., P. Ormrod J. E. Practical Research Planning and Design, Pearson Prentice Hall, 2005, 8th ed.

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Lisa Guion, EdD, associate professor, Department of Family, Youth and Community Sciences, Cooperative Extension Service, IFAS, University of Florida, Gainesville, 32611. http://edis.ifas.ufl.edu/pdffiles/FY/FY39300.pdf

Maslow A. Motivation and Personality NY: Harper, 1954. Mark Saunders, Philip Lewis and Adrian Thornhill, fourth edition, 2007, Research Methods for Business Students, Pitman Publishing, 1997.p312, 408, 411, 612

Rugg, Gordon; Petre, Marian. Gentle Guide to Research Methods. Buckingham, GBR: Open University Press, 2006. p 80. http://site.ebrary.com/lib/pcollege/Doc?id=10197031&ppg=80

Travin V.V., Dyatlov V.A. Basic Human Management, Delo magazine, Russia, 1995.

Utkin E.A. Organizational management, Akalis, Russia, 1996. Vihansky O.S., Naumov A.I. Management, Russia, 1994. Volgin N. Reformation of labor reward// Human and labor magazine, No. 3, Russia, 1996.

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BIBLIOGRAPHY

Academic Skills Center, Managing your time, Dartmouth College 2001, wieved on

05.08.2009, available from: http://www.dartmouth.edu/~acskills/success/time.html Accel Team, Employee Motivation. Motivation in the workplace-theory and practice, viewed on 17.11.2008, available from: http://www.accelteam.com/motivation/index.html Adair, John. Leadership and Motivation., London, , GBR: Kogan Page, Limited, 2006. Available from. http://site.ebrary.com/lib/pcollege/Doc?id=10167419&ppg=61 Alderfer, C.P. (1972) Existance, Relatedness and Growth, Free Press: New York. Association for institutional research, Code of ethics, viewed on Nov 6th, 2007, available at: http://www.airweb.org/?page=140 Bruce, Anne. How to Motivate Every Employee, Blacklick, OH, USA: McGraw-Hill Trade, 2002. http://site.ebrary.com/lib/pcollege/Doc?id=10040265&ppg=4 Dessler G. Human Resources Management, Prentice Hall College Div; 7 edition, 1996 Duncan J. Management: Ideas and Action, Oxford University Press, USA, 1999 Educational Psychology Interactive: Motivation, viewed on 12.04.2007, available from: http://chiron.valdosta.edu/whuitt/col/motivation/motivate.html

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Employee motivation questionnaires and surveys, viewed on 25.02.2008, available from: http://www.businessballs.com/employeemotivation.htm

Ghauri, P. Gronhaug, K. Research methods in business studies, Pearson Education Limited, England, 2005. 3rd ed.

Genkin B.M., Konovalova G.A. Basic Human Management, Russia, 1996. Gubanov S.A. System of work organization and reward. // Economist magazine No.3, Russia, 1997.

Guion, L. EdD, associate professor, Department of Family, Youth and Community Sciences, Cooperative Extension Service, IFAS, University of Florida, Gainesville, 32611. http://edis.ifas.ufl.edu/pdffiles/FY/FY39300.pdf

Leedy, D., P. Ormrod J. E. Practical Research Planning and Design, Pearson Prentice Hall, 2005, 8th ed. P183

Kakabadse, Andrew; Bank, John; Vinnicombe, Susan. Working in Organisations. Abingdon, Oxon, GBR: Ashgate Publishing, Limited, 2004. http://site.ebrary.com/lib/pcollege/Doc?id=10211321&ppg=78

Komarova N.N. Employee motivation and productivity increase. // Human and labor magazine, No. 10, Russia, 1997

Maslow A. Motivation and Personality NY: Harper, 1954. Obydentsova T. Wages in private organizations// Economy and life, No. 9, Russia, 1996.

Rugg, Gordon; Petre, Marian. Gentle Guide to Research Methods.

Buckingham, GBR: Open University Press, 2006. Available from: 99

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http://site.ebrary.com/lib/pcollege/Doc?id=10197031&ppg=80 Saunders, M. Philip Lewis and Adrian Thornhill, fourth edition, 2007, Research Methods for Business Students, Pitman Publishing, 1997. Travin V.V., Dyatlov V.A. Basic Human Management, Delo magazine, Russia, 1995. UniSA, Learning Connection, The research proposal, viewed on Nov 6th, 2007, available at: http://www.unisanet.unisa.edu.au/learningconnection/student/research/propo sal.asp Utkin E.A. Organizational management, Akalis, Russia, 1996. Vihansky O.S., Naumov A.I. Management, Russia, 1994. Volgin N. Reformation of labor reward// Human and labor magazine, No. 3, Russia, 1996.

Corporate websites: http://www.dhl.com http://www.neotech.kg http://www.physter.com

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APPENDICES 1 - Employee Motivation Survey

1. What is your position/job title? 2. How long have you been with this company? 3. Do you know your company values? -Yes -No If yes, can you list them? -Yes -No 4. Do you know what is expected of you and your team (if you have one)? -Yes -No 5. Are you aware of the fact that your success affects your team/company? -Yes -No 6. Do you enjoy working in your company? -Yes -Yes, but could be better

-No

7. Do you see yourself in this company in the future? -Yes, I want to stay -No, I want to change if the opportunity comes 8. Does your company provide a clear and effective system of appraisal and career development? -Yes -No If no, what suggestions would you have? 9. Do you feel valued by your company? -Yes -Not at all

-Not sure

10. Do you know your companys unique selling point in comparison with its competitors? -Yes -Unsure -No If yes, please specify 11. How important do you think your job/role is in your team/company? -Very important -Unimportant -Unsure 12. Do you enjoy coming to work because of -People you work with -Environment

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13. Do you receive support and encouragement from those around you in your work place? -Most of the time -Only sometimes -Never 14. Do you feel that you have to compete with other in your team/company? -Yes -No 15. Are you proud to be part of your team/department? -Yes -Very much so -No 16. Do you trust people you work with? -Yes, fully -Yes, partially

-Not so much

-Not really

-Not at all

17. How do you feel towards your boss? -Respect -Admiration -Fear -Inspiration

-Neutral

-other(specify)

18. How do you feel in comparison with your team members? -Equally -Threatened -Competitive

-Other(specify)

19. Does your company provide you with the opportunity to develop new skills? -Yes -No 20. Do you get punished for your poor performance? -Yes -No -Sometimes

-Never

In case of positive answer, please specify what measures have been taken? 21. How much of your time is spent on valuable work -20%+ -40% -60% -80%+ 22. Do you attend every meeting of the department? -Yes, all of them -Yes, only compulsory ones -Most of them 23. Do you finish your work -On time -Prior the deadline 24. Do you get easily distracted by -Noise -Co-workers

-No

-Ask for extension

- I always late

-Other(specify)

25. Do you feel that your work environment is suited for the tasks you have to perform? -Yes -No -Could be better 26. What effect your company rules have on you? -Largely(specify) -To some extend(specify)

-None

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27. When do you leave work? -When work shift finishes

-When work is complete

28. Do you get acknowledged publicly in case of your success? -Yes -No 29. How do you feel when criticized? -Accept it with appreciation 30. How do you prefer to be criticized? -One on one -Publicly 31. Do you feel you can express your opinion freely? -Yes -Sometimes -No

-Tolerate it

-Dislike it

Never

32. Do you believe you can openly talk about your future perspectives? -Yes -Sometimes -No -Never 33. How often do you get asked for an advice/opinion? -Very often -Not very often -Sometimes 34.When you make mistake, do you feel.. -Afraid that it could be used to your disadvantage 35. What is the best motivator for your work? (Please number from 1-highest and 10-lowest) -Financial Rewards -Status -Praise and Acknowledgement -Competition -Job Security -Public Recognition -Other(add and number)

-Never

-You learn from it

-Other

APPENDICES 2 - Interview Questions

1. How do you measure employees performance? 2. What are your expectations of the employees good performance?

3. How do you support your employees in completing their task? 103

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4. How do you motivate your employees? (Any specific plan?)

5. What motivates you as an employer?

6. Do you think your employees have different motivational need? (Do they need a different approach than you might need as a manager?)

7. What do you do when you have problems with your employees in the following situations: a. a problem arises due to miscommunication? b. a problems arises due to misunderstanding? c. a problem arises due to behavioral/attitude issues? d. if your employees are not getting their job done?

8. How do you think your employees and co-workers would describe you? a. As a manager? b. As a co-worker?

9. What do you do/ or would you do when you know that you are right but others disagree with you?

10. What kinds of decisions are most difficult for you to make?

11. What do you think is important for a good working environment? (Do you provide that for your employees?)

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