Tuesday, December 10, 2013

Critical studies of Motivation Theory

 Introduction Once an organization has selected and trained its employees, it is important that employees be both motivated by and satisfied with their jobs. The theory of Motivation define that the internal force that drives a worker to action as well as the external factors that encourage the action. Therefore motivational approaches are widely practiced in industrial field worldwide. As in a developing country like Sri Lanka it’s a great task to uplift the economic growth. The Industrial and the business are two giants fields of Sri Lankan economy. Here I would like to examine how does this motivation theory practice in Sri Lankan context. While examine comparatively the private sectors are more concern and practice on motivation approaches rather than governmental sectors. Here I selected Ceylinco Consolidated Pvt limited to analysis practice of the motivation theory. Ceylinco Consolidated Pvt Ltd is one of Sri Lanka's oldest and largest business conglomerates. The company was founded by Mr. Hugh Weerasekere and Cyril E. S. Perera named as "Ceylon Insurance Co." in 1938. The current chairman is Dr Lalith Kotelawala. It has more than 450 offices with a cadre of over 30000 employees. It’s annual Net income is over than US $ 120 million. Ceylinco Consolidated has more than 500 subsidiaries which have spread among a vast area of business operation sectors in Sri Lanka and abroad. Now they’ve spread to various economic fields of Banking, Insurance, Non- Banking Finance, Investment Banking, Housing & Property Development, Travel & Leisure, Communication & Information Technology, Education and Healthcare. A few of the many companies incorporated are listed below.  Ceylinco Life  Ceylinco Homes  Ceylinco Leasing  Ceylinco Selna  Ceylinco Grameen Credit Co. Ltd  Ceylinco Express Remittance Pte. Ltd  IC&CS Software Solutions  IC & CS Pte. Ltd  Critical studies of Motivation Theory For this study here I interviewed Mr. I.G.A Sampath Kumara who is the current Assistant Branch Sales Manager of Ceylinco Life Insurance, Teldeniya Branch, Kandy. Through friendly conversation with him I received sufficient facts. Its management system is run under Area Manager> Branch Manager > Executive Manager > Sales Consultant. They are more concern on motivation factors. The following motivation factors are provided to employees to increase their productivity. Skill Training:- Every new comers are given 10 days special training to made well aware of the system. Every once in three month they were given training called “Refresher” where train how work on personal targets and company targets comparatively. Through this type of trainings make personal development in employee where they feel they skilled ones. According to Heizberg’s theory it can be known as satisfiers & hygiene factors. Goal, Objective & Decision making :- Every 1st day of each month has a planning meeting which called “Performance Review” in every branch. Every employee are given a specific target to archive in a specific time bound. The area manager gets monthly goal from the head office. Area Managers divide the goals among branch managers by asking how many goal could they archive in a month. Then branch manager divide his goals among executive managers and again executive managers divide their goals to their sales consultant. Likewise they share the goals into team groups by asking their targets and abilities. This is kind of very friend decision making which can be known as the Mayo effect where greater communication, good teamwork, showing interest in others and involving others in decision making. Flexibility:- It has very flexibility in working. Generally employees have to report daily at 8:30 am. If they are unable to come at that time they can inform the office and come in evening. The employees who are from far away from work place have report office only 3days a weeks. This kind of flexibility can known as hygiene factors of Working conditions. Salaries:- There’s no basic salaries given in insurance companies. Every employees works on commission. Every sale consultant should have to get minimum four customers per month which make start their monthly salary. For first three month new comers are given Rs.5000/- per month for traveling fares. And all employees are given official telephone connection of Rs.2500/- per month. Their salaries will increase totally based on targets achievement and promotion. According to Maslow theory, the salary is can taken as basic need where it is essential to get food, shelter etc. Personal Development Training Programs:- Once in every three month a special leadership programs are organized to develop employees’ personality background. Sri Lanka’s well-known skill trainer lectures like Mr.Kuma Iddamalgoda, Mr.Dayarathna Athukorala are invited to conduct the programs. In the interest of the employee, the company empower them to do well known international management diploma course like PDS ( Product Development System) and AMTC ( Agency Management Training Course). Personal Goal Achievement :- Every beginning of a new year all employees are asked to display their personal goal achievement for the year. For example one may have different personal goals achievement like to buy a motor vehicle, own a house or land etc. And they compare their personal goals with company goals. And the company give loans to fulfill their goals if needed. These type of educational programs and professional guidance help to develop their self esteem and make a ride for self fulfillment according to Maslow Theory Retirement Plain:- Every employee will get retirement plain where 10% of annual salaries are deposit to their pension plan. If employee wishes to increase the percentage he is able to make change by discussing with relevant consultant. Job Security:- In this insurance company job security is quite risky. If someone is unable to performed well and achieved targets within three months the senior supervisor will do supervision on him to find out the weak point by field visiting and personal assessment. If he may have family problems or other he will sent to a professional psycho counselor. Although if he is unable to recover after doing these all, he’ll be fired in the benefit of other employees. The company always deserve a smart personality for smart team work. Above mentioned both retirement plan and job security are security special need according to Maslow theory. And also they can be known as job security under Hygiene factors of Heizberg Theory. Medical Health Insurance:- Every employees receive a medical scheme called “Suva Sampatha”. Annual each one gets Rs.50,000/- for medical emergency. If one is married even their wife and children get this benefit. And also even unmarried one get this benefit to their parents. The physical healthiness can be classified under Security needs of Maslow theory. Reward & Recognition:- Once who was full filled the competitive targets they were highly rewarded by gifting and recognition. They were named as Silver, Gold & Platinum. And also they are gifted money vouchers and holiday tours packages in the island or foreign countries with their family members. These rewards & recognitions are satisfier factor according to Herzberg theory and they are also factors to increase self esteem according to Maslow theory. Entertainment:- Once a month it has nominated a day called “ Fun day”. Every employees are gathered in a place and have a party, play games like Cricket. All are gathered in casual dress where everyone is equal. It makes them friendly environment and built good relationship among each others. Every once a year in December there’s a annual party and annual branch trip. And also they have sport meets among branches vs. branches and company vs. company and winners are highly rewarded. Social Cultural Activities:- They’ve various social cultural activity in a year. On every January 1st they start their work by engaging religious activity in their branch offices. And also they celebrate Local new year on April 14th. Annually they organized a blood donation program. Likewise many other social works are done by the company. These type of Social cultural and entertainment activities make them more friendly which help to stronger their interpersonal relationship. In Mayo effect it can be seen as ‘ensuring the wellbeing of others and showing interest in others. According to Heizberg it is a hygiene factor of Relationship with co-workers. And In Maslow theory it is known as social needs. Promotion:- There is no any hidden policy to get promotion. All the policy and condition are displayed transparent as crystal clear. If anyone has completed the criteria he/she is promoted to higher position. Anyone can get following promotions without any political or external intervention. i- Sale Consultant ii- Team Leader iii- Sale Executive iv- Senior Sales Executive v- Assistant Branch Sale Manager (ABSM) vi- Branch Sale Manager (BSM) vii- Senior Branch Sale Manager (SBSM) viii- Assistant Manager Business Development ix- Manger Business Development x- Senior Manager Business Development xi- Assistant General Manager Director xii- General Manager Director According to Maslow’s hierarchy and Heizberg’s satisfiers of growth, the human beings are always will to grow up or develop. This type of promotion criteria obviously help to their growth. Other Benefits:- The company has founded a fund called “Funeral Expenses Fund”. If anyone’s relatives passed away they will given Rs.40,000/- by the company fund for funeral occasion. And also if there’s wedding of anyone they will gifted Rs.5000/- This type of contribution make them feel that how worthy they are to the company. The belongingness is known as social needs according to Maslow theory.  Conclusion Here we analyzed that how does the Ceylinco company apply motivation theories of Mayo, Maslow and Heizberg. As a consequence today Ceylinco company has achieved higher economic status in the competitive business field in Sri Lanka. It seems that when people are well motivated, they will to perform well because they either enjoy performing the actual tasks or enjoy the challenge of successfully completing the task. While examine the above all facts we can come to a conclusion that the motivation theories are widely practiced and more applicable in Sri Lankan context.
 
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