Employee Motivation in Kazakhstan

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Last updated: May 26, 2019

Employee Motivation in Kazakhstan Deloitte, Ernst & Young, BTA bank. Bakhytbek Abdaliyev| 20084375| Adilbayev Daniyar| 20060389| Tolibayeva Kamila| 20091449| Ilyassov Baurzhan| | Yelshibayev Baurzhan| 20081962| Ibranova Aigerim| 20080308| Kurmanbayev Ansar| 20080706| Developed by: Contents: * Introduction * Companies’ Background * Literature review * Hypothesis * Research methodology * Finding Analysis * Conclusion * Bibliography Introduction.The project work entitled a EMPLOYEE MOTIVATION in KAZAKHSTAN with special reference to Deloitte, Ernst & Young, BTA bank; These companies are mainly conducted to identify the factors which will motivate the employees and the organizational functions in Deloitte, Ernst & Young, BTA bank. Management’s basic job is the effective utilization of human resources for achievements of organizational objectives. The personnel management is concerned with organizing human resources in such a way to get maximum output to the enterprise and to develop the talent of people at work to the fullest satisfaction.Motivation implies that one person, in organization context a manager, includes another, say an employee, to engage in action by ensuring that a channel to satisfy those needs and aspirations becomes available to the person.

In addition to this, the strong needs in a direction that is satisfying to the latent needs in employees and harness them in a manner that would be functional for the organization. Employee motivation is one of the major issues faced by every organization. It is the major task of every manager to motivate his subordinates or to create the ‘will to work’ among the subordinates.It should also be remembered that a worker may be immensely capable of doing some work; nothing can be achieved if he is not willing to work. A manager has to make appropriate use of motivation to enthuse the employees to follow them. Hence this studies also focusing on the employee motivation among the employees of Deloitte, Ernst & Young, BTA bank. The data needed for the study has been collected from the employees through questionnaires and through direct interviews. Analysis and interpretation has been done by using the statistical tools and data’s are presented through tables and charts.

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LITERATURE REVIEW Rensis Likerthas called motivation as the core of management. Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force . It is the major task of every manager to motivate his subordinate orA STUDY ON EMPLOYEE MOTIVATION Indirect variables are the incentives, interpersonal relations, career development opportunities and performance appraisal system. 1. 6. 12. Presentation of Data.

The data are presented through charts and tables. 1. 6. 13. Tools and Techniques for Analysis.

Correlation is used to test the hypothesis and draw inferences. CHAPTER 2 2. LITERATURE REVIEW Rensis Likerthas called motivation as the core of management. Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force . It is the major task of every manager to motivate his subordinate or 7 to create the will to work among the subordinates . It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work . reation of a will to work is motivation in simple but true sense of term.

Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization . Issuance of well conceived instructions and orders does not mean that they will be followed . A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively.In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction .

If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization . There will be better utilization of resources and workers abilities and capacities.

The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action.Whatever may be the behavior of man, there is some stimulus behind it . Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires. There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors.

The process of motivation studies the motives of individuals which cause different type of behavior. Rensis Likerthas called motivation as the core of management. Motivation is the core of management.Motivation is an effective instrument in the hands of the management in inspiring the work force .

It is the major task of every manager to motivate his subordinate or 7 A STUDY ON EMPLOYEE MOTIVATION to create the will to work among the subordinates . It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work . creation of a will to work is motivation in simple but true sense of term. Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization .

Issuance of well conceived instructions and orders does not mean that they will be followed . A manager has to make appropriate use of motivation to enthuse the employees to follow them. Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively. In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction .If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization . There will be better utilization of resources and workers abilities and capacities.

2. 1 The concept of motivation The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action. Whatever may be the behavior of man, there is some stimulus behind it . Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires.There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time. In general, the different motives operate at different times among different people and influence their behaviors.

The process of motivation studies the motives of individuals which cause different type of behavior. 2. 2 Definition of Motivation. 8 A STUDY ON EMPLOYEE MOTIVATION According to Edwin B Flippo, “Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward.

. 3 Significance of Motivation Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization. The following results may be expected if the employees are properly motivated. 1. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise. 2.Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization.

This will also result in increased productivity. 3. The rates of labor’s turnover and absenteeism among the workers will be low. 4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease. 5.

The number of complaints and grievances will come down. Accident will also be low. 6.

There will be increase in the quantity and quality of products.Wastage and scrap will be less. Better quality of products will also increase the public image of the business. 2. 4 Motivation Process. 1.

Identification of need 2. Tension 3. Course of action 4. Result –Positive/Negative 5. Feed back 9 Rensis Likerthas called motivation as the core of management.

Motivation is the core of management. Motivation is an effective instrument in the hands of the management in inspiring the work force . It is the major task of every manager to motivate his subordinate or 7 A STUDY ON EMPLOYEE MOTIVATION to create the will to work among the subordinates .It should also be remembered that the worker may be immensely capable of doing some work, nothing can be achieved if he is not willing to work . creation of a will to work is motivation in simple but true sense of term. Motivation is an important function which very manager performs for actuating the people to work for accomplishment of objectives of the organization .

Issuance of well conceived instructions and orders does not mean that they will be followed . A manager has to make appropriate use of motivation to enthuse the employees to follow them.Effective motivation succeeds not only in having an order accepted but also in gaining a determination to see that it is executed efficiently and effectively.

In order to motivate workers to work for the organizational goals, the managers must determine the motives or needs of the workers and provide an environment in which appropriate incentives are available for their satisfaction . If the management is successful in doing so; it will also be successful in increasing the willingness of the workers to work. This will increase efficiency and effectiveness of the organization .There will be better utilization of resources and workers abilities and capacities. 2. 1 The concept of motivation The word motivation has been derived from motive which means any idea, need or emotion that prompts a man in to action.

Whatever may be the behavior of man, there is some stimulus behind it . Stimulus is dependent upon the motive of the person concerned. Motive can be known by studying his needs and desires. There is no universal theory that can explain the factors influencing motives which control mans behavior at any particular point of time.In general, the different motives operate at different times among different people and influence their behaviors. The process of motivation studies the motives of individuals which cause different type of behavior. 2. 2 Definition of Motivation.

8 A STUDY ON EMPLOYEE MOTIVATION According to Edwin B Flippo, “Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward. 2. 3 Significance of Motivation Motivation involves getting the members of the group to pull weight effectively, to give their loyalty to the group, to carry out properly the purpose of the organization.The following results may be expected if the employees are properly motivated.

1. The workforce will be better satisfied if the management provides them with opportunities to fulfill their physiological and psychological needs. The workers will cooperate voluntarily with the management and will contribute their maximum towards the goals of the enterprise. 2. Workers will tend to be as efficient as possible by improving upon their skills and knowledge so that they are able to contribute to the progress of the organization. This will also result in increased productivity.

3.The rates of labor’s turnover and absenteeism among the workers will be low. 4. There will be good human relations in the organization as friction among the workers themselves and between the workers and the management will decrease. 5. The number of complaints and grievances will come down. Accident will also be low.

6. There will be increase in the quantity and quality of products. Wastage and scrap will be less. Better quality of products will also increase the public image of the business. 2.

4 Motivation Process. 1. Identification of need 2. Tension 3. Course of action 4. Result –Positive/Negative 5.

Feed back 9Theories of Motivation. Understanding what motivated employees and how they were motivated was the focus of many researchers following the publication of the Hawthorne study results (Terpstra, 1979). Six major approaches that have led to our understanding of motivation are Mcclelland’s Achievement Need Theory, Behavior Modification theory; Abraham H Mallows need hierarchy or Deficient theory of motivation. J. S. Adam’s Equity Theory, Vrooms Expectation Theory, Two factor Theory. According to McClelland’s there are three types of needs; Need for Achievement (n Ach); This need is the strongest and lasting motivating factor.

Particularly in case of persons who satisfy the other needs. They are constantly pre occupied with a desire for improvement and lack for situation in which successful outcomes are directly correlated with their efforts. They set more difficult but achievable goals for themselves because success with easily achievable goals hardly provides a sense of achievement. Need for Power (n Pow) It is the desire to control the behavior of the other and to manipulate the surroundings. Power motivations positive applications results in domestic leadership style, while it negative application tends autocratic style.Need for affiliation (n Aff) It is the related to social needs and creates friendship. This results in formation of informal Are they born with the self-motivation or drive? Yes and no. If no, they can be motivated, for motivation is a skill which can and must be learnt.

This is essential for any business to survive and succeed. Performance is considered to be a function of ability and motivation, thus: • Job performance =f(ability)(motivation) Ability in turn depends on education, experience and training and its improvement is a slow and long process.On the other hand motivation can be improved quickly. There are many options and an uninitiated manager may not even know where to start. As a guideline, there are broadly seven strategies for motivation. There are broadly seven strategies for motivation. • Positive reinforcement / high expectations • Effective discipline and punishment • Treating people fairly • Satisfying employees needs • Setting work related goals • Restructuring jobs • Base rewards on job performance Essentially, there is a gap between an individual’s actual state and some desired state and the manager tries to reduce this gap.

Motivation is, in effect, a means to reduce and manipulate this gap. Hypothesis. Employee motivation is one of the major issues faced by every organization. It is the major task of every manager to motivate his subordinates or to create the ‘will to work’ among the subordinates in order to achieve organizational goals. However, employee motivation is a subjective topic because human beings are unique. What motivates one person may de-motivate another. Employee motivation theories are varied, but a few theories have stood the test of time and are relied upon for encouraging workers throughout the corporate world.

Many theorists have tried to identify universal human qualities as they develop theories behind motivation in the workplace, but every manager have to think about their specific employees to determine which of these theories actually applies to the people in their sphere of influence. The research problem here in our project is associated with the motivation of employees of three companies, such as Ernst and Young, Delloite and BTA. So, the main question of our project is formulated like: what factors influence a person’s level of motivation of employees and what theories are applied in these three companies in Kazakhstan?There are a variety of factors that can influence a person’s level of motivation; some of these factors include: the level of pay and benefits, quality of the working conditions, leadership and social relationships, employee recognition, job security, career development opportunities, etc. Here are three major theories to consider.

Carrot and Stick. This theory, credited first to Sigmund Freud, relies on the idea that employees are inherently unmotivated to work and would rather be anywhere but at the job being productive.Many schools operate on this principle, believing that children will not learn unless they are policed, coerced and rewarded or punished with grades and privileges in order to get them to perform. Likewise, many workplaces operate under this carrot-and-stick motivation practice, with rewards and punishments doled out via managers, performance reviews, benefits, perks and public humiliation or exaltation.

In such an environment, strict hours, dress codes, bonuses and reversion of privileges are tightly managed in an effort to prod, poke and lure employees into performing efficiently. Self-Development.Douglas McGregor’s theory is founded on the idea that human beings are inherently motivated to learn and work as long as they see their skills improving and feel they are making a difference in the world around them. This theory purports that employees will perform well if they are given the opportunity to advance their knowledge, create a product or provide a service that brings emotional fulfillment. As a result, the employee will feel productive and proud of himself.

This theory suggests that, as long as the work is rewarding, all employees will be motivated to do their very best every day. Satisfy the Base Human NeedsThis theory, developed by Abraham Maslow, puts forth the idea that a person will work to meet her basic needs. These needs may be as foundational as physiological needs (food, water, a place to live) or as lofty as the need to feel one is making a difference in the world. The key to motivating employees, therefore, is to determine which needs the employee is seeking to meet. Is he interested in working just to pay the bills, or does this employee wish to create a product that will better the world? Then the employer would present the task at hand in such a way as to meet the need of that particular employee.A hypothesis is a preliminary or tentative explanation or postulate by the researcher of what the researcher considers the outcome of an investigation will be. It is an informed/educated guess.

It indicates the expectations of the researcher regarding certain variables. It is the most specific way in which an answer to a problem can be stated. Research hypotheses are the specific testable predictions made about the independent and dependent variables in the study.

Hypotheses are couched in terms of the particular independent and dependent variables that are going to be used in the study.The research hypothesis of this study is as follows. Ho: There is no significant relationship between incentives and employee’s performance. Ho: There is no significant relationship between career development opportunities and the extent of employee motivation Ho: There is no significant relationship between performance appraisal system and the extent of motivation. Ho: There is no significant relationship between interpersonal relationship in the organization and extent of motivation Research methodology. Research is a systematic method of finding solutions to problems.

It is essentially an investigation, a recording and an analysis of evidence for the purpose of gaining knowledge. According to Clifford woody, “research comprises of defining and redefining problem, formulating hypothesis or suggested solutions, collecting, organizing and evaluating data, reaching conclusions, testing conclusions to determine whether they fit the formulated hypothesis”. A sample design is a finite plan for obtaining a sample from a given population. Simple random sampling is used for this study.

The universe chooses for the research study is the employees of Deloitte, Ernst ; Young, BTA bank.Number of the sampling units selected from the population is called the size of the sample. Sample of 10 respondents were obtained from the population.

The procedure adopted in the present study is probability sampling, which is also known as chance sampling. Under this sampling design, every item of the frame has an equal chance of inclusion in the sample. The data’s were collected through Primary and secondary sources.

Primary data are in the form of “raw material” to which statistical methods are applied for the purpose of analysis and interpretations.The primary sources are discussion with employees, data’s collected through questionnaire. Secondary data’s are in the form of finished products as they have already been treated statistically in some form or other. The secondary data mainly consists of data and information collected from records, company websites and also discussion with the management of the organization.

Secondary data was also collected from journals, magazines, internet sites and books. Descriptive research, also known as statistical research, describes data and characteristics about the population or phenomenon being studied.Descriptive research answers the questions who, what, where, when and how. Although the data description is factual, accurate and systematic, the research cannot describe what caused a situation. Thus, descriptive research cannot be used to create a causal relationship, where one variable affects another. In other words, descriptive research can be said to have a low requirement for internal validity. A well defined questionnaire that is used effectively can gather information on both overall performance of the test system as well as information on specific components of the system.A defeated questionnaire was carefully prepared and specially numbered.

The questions were arranged in proper order, in accordance with the relevance. The questionnaire consists of open ended, dichotomous, rating and ranking questions. A pre-testing of questionnaire was conducted with 10 questionnaires, which were distributed and all of them were collected back as completed questionnaire. On the basis of doubts raised by the respondents the questionnaire was redialed to its present form. A finite subset of population, selected from it with the objective of investigating its properties called a sample.

A sample is a representative part of the population. A sample of 50 respondents in total has been randomly selected. The response to various elements under each questions were tot Research Methodology consisting of enunciating the problem, formulating a hypothesis, collecting the facts or data, analysing the facts and reaching certain conclusions either in the form of solutions(s) towards the concerned problem or in certain generalisations for some theoretical formulation. OBJECTIVES OF RESEARCH The purpose of research is to discover answers to questions through the application of scientific procedures.The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose: Define basic motivation instruments in Deloitte, Ernst; Young, and BTA bank.

Define The most useful instruments in motivation. Advantages and disadvantages of different types of motivation in companies. In research we use the following structure: Identification of a research problem Review of the existing literature Specification of a purpose Collection of Data Analysis and Interpretation of dataReporting on and evaluating data Findings Analysis. We have decided to choose the most successful companies with excellent reputation and great image in Kazakhstan for our research. Two of them are “Deloitte” and “Ernst;Young”, the members of “Big Four” in auditing.

The third is one of the leading Kazakhstan’s banks “???”. Our research was aimed to find out motivation strategies of each of them and then to compare weaknesses and strengths of international and local companies. The first question was about the main aim of the company, in order find out their attitude and awareness of work.Employees of all three sides described the exact aim of each company, while the managers gave the broader answer. That is the evidence that managers have more clear view of companies activities and employees are concerned of their personal work more than companies image. The second question was about the obstacles that may negatively effect on performance.

Everybody was sure that there are no obstacles and that everything is in their hands. We can make the conclusion that the management in these companies is on the high level, stuff have nothing to complain to and understand that their success depends only on them.There were different answers to the question “what motivates you the most”. As the companies we have chosen are leaders in their spheres, stuff are motivated by their status and brand. They are inspired by career opportunities and self-realization.

Some honest people committed that high salary is one of the best motivation for them. Moreover everyone feel they have appropriate authority and have enforcement powers. The next question was about any recent changes in company that may effect on motivation. E;Y has created bonus plan program, ??? became state-owned for 80% andDeloitte Almaty is now obeys on London, not Moscow that gives an opportunity to travel and work abroad. Nevertheless the most inspiring changes seems to be in E;Y, because it is not just circumstances, but motivation program that was created in order to take care of companies stuff and give them a chance to be paid more for their hard work. The next question was about the motivation system in their company.

In Deloitte there exist special promotion program, better performance you have, quicker you climb on career stairs, also salary should be increased in a period of time.As for E;Y besides some bonus programs, stuff said that they enjoy corporative culture and social package. Bank’s workers in opposite are not very glad with the situation. They said that they don’t get expected promotions and do not get a feedback. On the other hand, there are still positive sides: cashiers are moved from one department to another from time to time in order to give them a fresh breath and work in different conditions.

For the next question if companies’ and employees aims are the same, both of international companies agreed immediately.But “???” employees do not think that their colleges think about the companies’ improvement, just about their personal needs. Nevertheless all of the interviewed said that they feel confident, valued and safe at their work, except for bank workers who think that the respect might be higher. The next question was whether they feel that they are involved in process and decision making of company.

E;Y workers have an annual interrogation of each employee in order to figure out what they want to improve or are worried at.As for the bank, they complain that before their idea wiil be valued, it should go through a lot of people, so it might be lost. There were a lot of different answers to the question whether internal image of the company differs from external.

E;Y employees said that it is pretty much the same and that E;Y in Kazakhstan keeps the best from international head company, but still do not loose cultural identity, the same for Deloitte. ???, on the contrary, has an image of modern European bank, but in fact still is on the level of local.According to research we made, it is obvious that Kazakhstani companies still have to improve motivation. The examples are international ones, that keep motivational programmers in every country they exist. Conclusion.

We conclude that Motivation Strategies and structures in Deloitte, Ernst ; Young, BTA bank , have some different. Most different between Deloitte, E;Y and BTA bank. BTA’s motivation structure is very far from ideal. The company has routine at work. Employees feel that they are not valued fully. Whereas In Deloitte, employees are happy that work at this company.Ernst;Young has the same situation.

In Foreign companies employee motivation is one of the most important part of companies activity. Local Companies are short term oriented. BTA’s objective and objectives of employees are not the same. The biggest problem in Local companies is world standards which are not working, Managers are not qualified. Not Define career development opportunities, lack of Leadership and social relationships and Employee recognition.Bibliography.

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