IMPERIAL INSTITUTE OF HIGHER EDUCATION
Table of Contents Table of Contents ................................................................................................................... 4 1.0
Introduction ................................................................................................................. 5
2.0
Literature Review........................................................................................................ 6
2.1 Stress .......................................................................................................................... 6 2.2 Personality.................................................................................................................. 6 2.3 Emotional Intelligence ............................................................................................... 7 2.4 Motivation .................................................................................................................. 8 2.5 SMART Objectives .................................................................................................... 9 3.0
Organization Profile .................................................................................................. 10
4.0
Hypothetical Situation (Case Study) ......................................................................... 11
4.1 Issue Identification ................................................................................................... 11 4.2 Issue Analysis .......................................................................................................... 11 4.3
Consequences (Analyzed) ....................................................................................... 11
4.4 Conclusion ............................................................................................................... 13 5.0
Analysis (Case Study) ............................................................................................... 14
5.1 Stress ........................................................................................................................ 14 5.2 Motivation ................................................................................................................ 15 5.3 Emotional Intelligence ............................................................................................. 16 5.4 Personality................................................................................................................ 17 6.0
Action Plan................................................................................................................ 18
7.0
Conclusion ................................................................................................................ 19
8.0 References .................................................................................................................... 20 9.0 Appendices ................................................................................................................... 21 Organizational Behavior
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1.0 Introduction Assignment Objectives Understand the basic concepts of Stress, Emotional Intelligence, Motivation and Personality Select a particular organization and apply these concepts and study about its organizational behavioral issues. Develop a Case Study using the particular company and the issues occurred as absenteeism and turnover of employees Understand SMART objectives.
Background This report intends to analyze a company and identify the main problems of a company like absenteeism and employee turnover and identify the main reasons for the said problems. All the problems are to be categorized in to four main characteristics of human behavior. An Action Plan will be developed at the end of the report to overcome the issues and avoid absenteeism and staff turnover. The four main factors are shown below.
Figure 1: Main Concepts of Issues
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2.0 Literature Review The main theories behind this documentation are Stress, Emotional Intelligence, Motivation and Personality as shown in the figure above. And in this chapter a brief description is given for each attribute.
2.1 Stress Stress is a major factor that brings lot of affect to the work life. Therefore it can be considered as one of the most important attribute that need to be concentrated on. And too much work stress may lead to health care issues as well. Lot of research has been done on the stress factor and it shows that stress interfere functions like intellectual, emotional and also interpersonal functioning in an organization. Risks can be occurred in an organization in many ways. In this documentation analysis done on stress and reasons and consequences of stress is determined and solutions are suggested.
2.2 Personality Personality is another main factor that affects work life. Behavior of people in an organization totally depends on the personality. There can be many different personalities that are available in an organization. For a manager it is very important to understand the personalities. It is mainly because dealing with each personality is totally different from the other. In an organization personality differences affect the work life in huge amount. A motivation for a specific person could be a de-motivation for another employee with different personality. The Below diagram shows the main personalities that could be available in an organization.
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Figure 2: Personalities in an organization [Source: Ezine Articles]
Dealing with above each personality is totally different from each other and their demotivational factors and motivational factors are different. Therefore most companies face lot of absenteeism and turnover issues because of the personality factor.
2.3 Emotional Intelligence Emotional Intelligence has become increasingly important to organizational development and developing its people, because the Emotional intelligence philosophy present a fresh approach to understand and assess the people's behaviors in an organization, management styles, their attitudes, interpersonal skills, and of course their potential. Emotional Intelligence has become a key consideration in human resources planning, job profiling, recruitment interviewing and selection, management development, customer relations and customer service, and many of the organizational functions. Therefore Emotional Intelligence is another major factor for the occurrence of issues like absenteeism and employee turnover.
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2.4 Motivation Self actualization is the highest drive of an employee, however before a person can turn to it, he or she must satisfy other, lower motivations like hunger, safety and belonging. The hierarchy has five levels. Physiological (hunger, thirst, shelter, sex, etc.) Safety (security, protection from physical and emotional harm) Social (affection, belonging, acceptance, friendship) Esteem (also called ego). The internal ones are self respect, autonomy, achievement and the external ones are status, recognition, and attention. Self actualization (doing things)
In the work life Motivation is a major factor for the productivity of the employees. If the organization does not concentrate on motivation of employees there could be massive issue with labor turnover and absenteeism. Maslow‟s hierarchy of needs and Herzberg‟s Motivation-Hygiene theory demonstrates the human behavior and major components that affect the motivation as shown below. Motivators Hygiene factors
Figure 3: Maslow‟s Hierarchy & Herzberg‟s Motivation Theory [Source:www.Jayderagon.com]
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2.5 SMART Objectives SMART Objectives are used in this project report. SMART objectives are a set of criteria‟s that are used in projects for better evaluation. SMART objectives are as follow
Figure 3: SMART Objectives
Meanings of the above factors are as follows Specific – Be clear and precise about the proposing or discussing factor Measurable – enumerate the main objectives Achievable – Are the proposing factors are too much to achieve Realistic – Are the resources available is enough for the proposal/ultimate objective to happen. Timed – What is the time duration or the dead line.
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3.0 Organization Profile
MAS Linea Clothing is one of the
leading
manufacturers
in
Apparel Sri
Lanka,
MAS Holdings, are supplying the garment
to
leading
apparel
Suppliers in the World apparel market. Speedo, Victoria Secrete, Mark & Spence, Calvin Klein, Figure 4: Logo of MAS Holding
Michal Korse, Tesco, and Lands End are one of the main
[Source: (MAS Holdings, 2010)]
Customers of MAS holdings. Most of the fabrics are supplied by foreign suppliers. Threads are supplied by Coast Thread Lanka, and elastics are supplied by Stretch Line Sri Lanka, Other trims and suppliers are Foreign Companies. Company has started at 1996 with 300 employees and now company occupies 1350 total employees per one shift. Total direct workers are 1400. Average production is 40000 pieces per day and average efficiency of the production is 60%. Factory is facilitated with Product development center, and they develop the sample that is to be sent to the customers. Linea Clothing is in its 13th year of operations and, has expanded its client base including Victoriaâ€&#x;s Secret, Marks & Spencerâ€&#x;s, Lands End, Tesco, Hinds and Warnaco into its impressive portfolio. Incorporating the most modern technology in the globe, together with the some of the Islands most talented professionals,
The Above Logo is a property of MAS Holdings Pvt Ltd.
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4.0 Hypothetical Situation (Case Study)
In an organization Employee Turnover and absenteeism is a massive issue. This is a case study of MAS Linea Aqua that labor turnover became a huge problem. In this chapter the main discussion is done for the situation occurred. As stated in previous chapter the factory has over 1500 employees on one shift and they are operating on clothing. There are about 20 modules or lines in the factory.
4.1 Issue Identification Since over 40,000 pieces are sewed everyday from the garment, consistency of labor forces is highly necessary. But in last year (2009) labor turnover was more than 10% and showed considerably high absenteeism rate as well. Note: For more details refer Turnover reports in Appendices
4.2 Issue Analysis The report showed over 10% turnover in year 2009 and very high absenteeism rate. Many different reasons were given to resign from the company. Pregnant, sick, transport issues, look after the baby, eyesight problems, to go abroad, personal problems, to do operations, getting married, join army are some of the reasons which they have given to the company. Note: For more details refer Turnover reports in Appendices
4.3 Consequences (Analyzed) High labor turnover is a massive problem from any kind of company. For garment trade existence of skilled and experienced labor is utmost important because it is highly sensitive industry that exist in Sri Lanka.
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When the labor turnover is very high in garment trade it leads to a massive disaster in many ways. All the consequences of resignation of skilled and experienced labor is identified and discussed in below chapters. 4.3.1 Quality Quality is extremely important in a garment industry. Since most of the sewing is done for the international brands it is really necessary to keep the quality high to exist in the market. Therefore special attention should be given to the quality aspect. One of the major issues that need to be concentrated on is the decreasing the quality of the products. As the employee turnover is high new employees are taken in to the company and the new comers are not well trained and experienced in the line. Therefore the quality of the products tends to decrease. And mainly since the sewing and stitching is done using machines which are very fast accidents could happen in the factory as well. 4.3.2 Productivity Productivity is another factor that is necessary for the garment trade because most of the time bonus of a particular person is decided by the productivity of the line. Another reason for productivity to be so important is most of the orders are given to the garment by international companies with a deadline. Most of the time if the deadline is not met the company reject the order. Therefore it is so important to finish everything on deadline keeping the quality up to the standard. When the labor turnover and absenteeism is very high the productivity tends to go down in massive amount. When the absenteeism is high the number of labor goes down and without the necessary amount of human force it becomes impossible to reach the target within the specific time period. When the turnover is very high the garment/organization tend to recruit new people to the company. Since new people do not have enough skills and experience the outcome of the employee is low during first month. That leads to huge trouble if productivity expected at the end of the month is not met. Organizational Behavior
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4.3.3 Time Time is very important factor for garment industry. Each employee has to finish each item in a specific time. If the employee does not finish the item in recommended time the expected productivity will not be met at the end of the day. And it will lead to a huge trouble when it comes to the project deadlines. When the labor turnover and absenteeism is high and when new recruits come to the industry the timing cannot be done correctly because of the low productivity of new recruits. The main reason for this is lack of experience and skills. Therefore it is necessary for the organization to keep the skilled and experience labor in the workforce to reach the ultimate goals. 4.3.4 Training Training is necessary when there are lot of new recruits in the factory to keep up the productivity and outcome. Therefore when the turnover is very high and new recruitments are high, it is necessary for the company to use extra labor force and train the new recruits. It is highly expensive for the company. And when workforce leaves the company after the training period and joins another company, it makes another issue.
4.4 Conclusion When the workforce turnover and absenteeism is very high, it makes massive problems. And the main factor to understand is if the turnover is high and if people tend to resign from the MAS Holdings and join another organization it is obvious that there is an internal problem in the company that affects employees. Therefore the problems and reasons should be analyzed and solutions must be performed.
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5.0 Analysis (Case Study)
The clothing industry is both a quintessential global industry and one that is inescapably labor intensive. Due to this reason the labor turnover is relatively high in most of the garment manufacturing plants in MAS holdings. The stats in appendix (1) shows how the staff absenteeism and turnover of MAS Linea Intimo for the year 2009. In this discussion it will be discussed the reasons for the relatively high staff absenteeism and the staff turnover by taking the below given factors in to consideration. It has been identified four main reasons for the labor turnover in the selected industry and the discussion will be based on the following reasons 1. 2. 3. 4.
Stress Motivation Emotional Intelligence Personality
5.1 Stress Stress plays a major role in the event of the absenteeism and labor turnover in the apparel industry. A high production quantity, Demand in production time, work routine, quality control could affect the stress level of the labor force as an internal factor. However from the records of the labor turnover and absenteeism report of MAS Linea Aqua shows that apart from the internal stress factors that there are external factors that contribute majorly on the stress level of the employees. Transportation, sicknesses, restlessness, Relationship issues, marital conflicts, and all the other continuous problems could be taken as external factors that could affect the labor turnover in the organization. If taken a closer look in to these issues one could determine that high intensity of female laborers in these garment factories is one of the reasons for the said external factors and which affect the stress level of them whilst affecting the labor turnover
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5.2 Motivation Motivation factors can play a huge role in the apparel sector in Sri Lanka as the competition among the main players in the industry is immense for the skilled labor. MAS Holdings being one the leading apparel industries in Sri Lanka would provide more motivational factors to their employees than most of its competitors. However a labor turnover of 10% in year 2009 is a considerable percentage. The factors that affect the motivation of an employee of an organization was discussed in figure: 3 In MAS the organization provides most of the discussed factors of motivation. The examples for the discussed factors are as follows.
Physiological MAS provides lunch for its employees with a subsidized charge and tea twice a day (Morning and evening) The sewing plants are well designed that gives the labor force a clean and clear work environment.
Safety The safety policies of MAS are state of the art and practiced across its plants. These practices are mandatory and monitored by the international buyers such as NEXT, VS, and GAP etc…
Social The belongingness, friendly atmosphere is maintained in the highest level in the factory. Movements / projects such as “MAS Women Go Beyond” is an example for this
Figure 5: Women Go Beyond Logo
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Esteem Working for the largest apparel manufacturer in the Island and the standards the organization follows may give a higher esteem to its employees than the employees who work for the competition.
Self Actualization A fulfillment of all the above factors derives in self actualization. Staff motivation could be in a high level among the staff if the above factors are met.
5.3 Emotional Intelligence Emotional Intelligence refers to the process involved in recognition, use, understanding and management of yourself and others emotional states to solve emotion laden problems and to regulate behavior. One can categorize EI as a part of the cognitive abilities alongside social, practical and personal intelligence that is in the „cold‟ side of the cognitive processes. Unlike its other members EI could be categorized a „HOT‟ cognitive emotional process that has a bigger importance to an individual and the surrounding environment. EI is more important to the management level staff at MAS as they need to understand the mindset of an individual who may not have much of an intelligence capacity. These individuals could be the machine operators, cutters, laborers who may possess a minimum level of an intellectual capacity. If one look at the absenteeism report, the reasons given by the staff will give a better idea of the level of instability that the laborers has when considering the personal factors such as „relationship issues & marital issues‟. A management team with a higher EI capacity and introductory level training to the staff on EI will help the organization and the staff to
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Understand the issues that their labor force face on day to day activities Will enable to advance the thinking capacity of the lower level employees force such as the machine operators, laborers etc… Will help the labor force to have a better work – life balance
5.4 Personality When understanding an individual‟s personality it could be identified that one‟s personality is made up of the characteristic patterns of thoughts, feelings, and behaviors that make the person unique. Further to this, personality could arise from within the individual and remains fairly consistent throughout life. Employee personalities could obviously have an impact on many things that they do, if not you could also say that it has an impact on everything. How deep the effect of personality in a specific job performance depends on the unique aspects of an individual's personality. Personality has a great impact on overall productivity in a social workplace. In this case it could be said that an employee personality in MAS has an overall impact on his / her productivity. Cognitive ability, nevertheless, has been exposed to be more positively correlated to actual performance. If an employee is unwilling to perform the task and lacks conscientiousness, then the job will not be done, regardless of potential ability. Social aspects of many traditional work environments may overshadow some other unseen factors that affect overall workplace productivity.
Ex:
Reasons for labor absenteeism / turnover at MAS linea Aqua which relates to an
employee personality Joining the Army Marriage
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6.0 Action Plan According to the absenteeism / turnover summery of MAS Linea Aqua the highest number records due to health hazards of the employee.
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7.0 Conclusion The need to understand organizational behavior is of utmost importance for an organization to have a competitive edge over its competitors. Human capital is a extremely important tool in an organization. Companies inject huge amounts of funds to identify the appropriate talent required to carry out the demanding positions. The behavior of such human capital will influence the companyâ€&#x;s performance a great deal.
It is known that many behaviorists have come to a conclusion that understanding & managing oneâ€&#x;s stress, emotional intelligence, motivation & personality towards behavior are necessary. This study & application of MAS holdings will highly benefit the company from a human performance & financial perspective.
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8.0 References 1995. Dealing with poor performance. Available at: http://www.mindtools.com/pages/article/newTMM_80.htm [Accessed March 7, 2010]. SMART Objectives. Available at: http://www.learnmarketing.net/smart.htm [Accessed July 10, 2010]. Stress at Work: How to Reduce and Manage Workplace and Job Stress. Available at: http://helpguide.org/mental/work_stress_management.htm [Accessed July 10, 2010]. Amanda Griffiths, 2003. Work Organization and Stress. Available at: http://www.who.int/occupational_health/publications/en/oehstress.pdf [Accessed June 7, 2010]. Antoinette Smith, 2006. What Are the Causes of Stress in an Organization? Available at: http://www.ehow.com/facts_5612348_causes-stress-organization_.html [Accessed July 10, 2010]. Barbara Beccari, 2007. Personality and Work Relations. Available at: http://ezinearticles.com/?expert=Barbara_Beccari [Accessed February 7, 2010]. Ben Dattner, 2007. Executive Coaching. Available at: http://www.dattnerconsulting.com/presentations/executivecoaching.pdf [Accessed March 7, 2010]. Benjamin Schneider, 2004. Personality and Organizations. Psychology Press. Available at: [Accessed July 7, 2010]. Brent MsNutt, How Does Stress Affect Your Performance at Work? Available at: http://www.articlesbase.com/self-help-articles/how-does-stress-affect-your-performance-atwork-558364.html [Accessed August 7, 2010].
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9.0 Appendices
Current performance, gaps, targets
Current : Actual 11 % Target 5% & Gap : 6%
Reflection on last year’s goals, activities, and results Activity
G/Y/R
Key results / issues
Problem Solving Through JCC
Y
All problems not received to JCC
Problem Solving Through Grievance Box
R
Not functioning frequently
G
Employees were satisfied with Functions
G
Employees were satisfied with food
Special function for employees Provide Better food
Figure: Performance [Source: MAS Holdings Pvt Ltd]
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Figure: Sample Turnover sheet 2009 [Source: MAS Holdings Pvt Ltd]
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Figure: Absenteeism Report 2005, 2006 [Source: MAS Holdings Pvt Ltd]
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Figure: Absenteeism Report 2007, 2008 [Source: MAS Holdings Pvt Ltd]
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Figure: Absenteeism Report 2009 [Source: MAS Holdings Pvt Ltd]
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Figure: Turnover Summery Report 2005 [Source: MAS Holdings Pvt Ltd]
Figure: Turnover Summery Report 2006 [Source: MAS Holdings Pvt Ltd]
Figure: Turnover Summery Report 2007 [Source: MAS Holdings Pvt Ltd]
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Figure: Turnover Summery Report 2008 [Source: MAS Holdings Pvt Ltd]
Figure: Turnover Summery Report 2009 [Source: MAS Holdings Pvt Ltd]
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The Optimal Process for Developing Emotional Intelligence in Organizations
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