IMPACT OF EMPLOYEE MOTIVATION ON ORGANISATIONAL EFFECTIVENESS (A STUDY WITH REFERENCE TO MANUFACTURING CONCERNS IN CHENNAI) K. DIVYA M.com, M.phil ASSISTANT PROFESSOR SDNB VAISHNAV COLLEGE FOR WOMEN CHROMPET
Abstract “Dispirited, unmotivated, unappreciated workers cannot compete in a highly competitive world.” – Francis Hesselbein, Hesselbein The paper takes an in-depth look at employee motivation considering in view of organisational effectiveness is an emerging challenge for both employees and employers. The purpose of this paper is to identify the factors that effects employee motivation and examining the relationship between organizational effectiveness and employee motivation. A total of 50 respondent from various manufacturing concerns in Chennai are included in the study. The organizations should design their rules, policies and organizational structures that give space to the employee to work well and appreciate them on their tasks fulfillment and achievements. This will surely lead to organizational growth. Key words: employee motivation, organisational effectiveness, factors affecting employee motivation, relationship between employee motivation and employee effectiveness.
Introduction:
Motivation is the art of getting people to do what you want them to do because they want to do it. -Dwight D. Eisenhower Every organization and business wants to be successful and have desire to get constant progress. The current era is highly competitive and organizations regardless of size, technology and market focus are facing employee retention challenges. A very few organizations believe that the human personnel and employees of any organization are its main assets which can lead them to success or if not focused well, to decline. Unless and until, the employees of any organization are satisfied with it, are motivated for the tasks fulfillment and goals achievements and encouraged, none of the organization can progress or achieve success. Employee 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 behaviour 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. employee motivation is One of the policies of managers to increase effective work administration along with employees in organizations. motivated employees are constantly looking for better practices to do a work so motivation makes an organization more successful, so it is necessary for organizations to encourage motivation of their employees “Motivation is the process of attempting to influence others to do their work through the possibility of gain or reward” •
Edwin B Flippo
Organizational Effectiveness Organization is the composition of people which generate independent business identity for some particular reason and getting desired result within defined resources is treated as effectiveness. “Organizational effectiveness is defined as the level to which an organization, by the use of certain resources, fulfils its objectives without reducing its resources and without placing excessive tension on its members and society” •
Mary et al
Relationship of employee motivation and organizational effectiveness: Effectiveness and employee motivation towards work refers to prospects of the employee about the organization. It refers to locate the targets and attaining them proficiently in spirited and energetic many literature and various studies the third hypothesis is fully
supported that exists a positive relationship between employee motivation and organizational effectiveness Factors affecting employee motivation: •
Leadership style: The appropriate leadership style depends on the goals and objectives of the organization, the people within the company, and the external environment. In a SWAT team or a fire department, the appropriate style would be more directed and dictatorial, with the person in charge telling people what to do quickly with little concern for personal sensitivities.. •
The Reward system: Every organization is characterized by a particular type of reward structure, often differing from person to person and from department to department.It is quite common for companies to identify their most profitable products and service. •
Organizational climate: The organizational climate is deliberately created and maintained by management. It largely consists of the way that people treat each other up and down the line. The principle of “respect for the individual” was adamantly enforced at every level of the organization, both nationally and internationally.. •
The structure of the work: Some work is inherently motivational, requiring creativity, imagination, and high levels of energy. Work that involves communicating, negotiating, and interacting with other people in order to gain their cooperation to get the job done quickly and well brings out the best energies of the individual.
Objective: 1. To study the important factors which are needed to motivate the employees. 2. To study the relationship between the employee motivation and organisational
effectiveness.. Methodology of the Study • •
Primary data: questioner and observation method ( 50 respondent) Secondary data : periodical reports, journals / magazines, encyclopaedia and browsing
Findings: This study was undergone by two analyses: •
Factor analysis
•
Correlation
FACTOR ANALYSIS:
The study measured the opinion of the respondents relating to impact of employee motivation and organisational effectiveness by applying a five point scale - strongly agree, agree, neutral, disagree and strongly disagree. The data was subjected to factor analysis. The results are:
KMO and Bartlett's Test Kaiser-Meyer-Olkin Measure of Sampling Adequacy. Approx. Chi-Square Bartlett's Test of Sphericity
0.836 2771.128
df
1225
Sig.
.000
Above table shows the KMO adequacy is 0.836. Hence, factor analysis is suitable to all the 50 variables relating to attrition and retention
Factors of employee motivation Factors
Factor loadings
Salary increase
24.56%
Promotion
4.08%
Leave
3.83%
3.44% Motivational talk Recognition
3.30%
Five factors have been extracted by applying factor analysis.
Salary increase Promotion Leave Motivation talk recognition
Correlation analysis: Ho: There is no significant relationship between the organisational effectiveness on employee motivation. H1: There is significant relationship between the organisational effectiveness on employee motivation.
Mean
Std. Deviation
N
Performance appraisal system
2.40
1.143
50
Extent of Motivation
2.60
1.355
50
Correlations performance appraisal system Performance
Pearson
1
Extent of Motivation .962(**)
appraisal system
Correlation Sig. (2-tailed) Sum of Squares and Cross-products Covariance N
Extent of Motivation
Pearson Correlation Sig. (2-tailed) Sum of Squares and Cross-products Covariance N
.
.000
64.000
73.000
1.306
1.490
50
50
.962(**)
1
.000
.
73.000
90.000
1.490
1.837
50
50
Inference: Since the Correlation is significant at the 0.01 level (2-tailed) the null hypothesis that is “There is no significant relationship between the organisational effectiveness on employee motivation” is rejected and an alternative hypothesis is framed. H1: There is significant relationship between performance appraisal system and the extent of motivation. Suggestion: •
Organization should give importance to communication between employees and gain co-ordination through it.
•
Skills of the employees should be appreciated.
•
Better carrier development opportunities should be given to the employees for their improvement
Conclusion: Enterprise managers recognise that motivation is personal to the individual. If employees feel that they are being treated fairly, they will be more likely to give their best. Motivation comes from within an individual
Enterprise has created the right environment for motivating and engaging its people through the development of good communication channels, appropriate training and honest and timely feedback. “Ability is what you're capable of doing. Motivation determines what you do. Attitude determines how well you do it�. -Lou Holtz