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1.0 There has been a lot of research done on motivation by many researchers but only some
research topics have been done on motivation like motivation theories, ways to encourage
employee motivation, measures of motivation, principles of motivation, how to motivate your
people pro
2.0
Read more: file:///C:/Documents%20and%20Settings/mansco/My%20Documents/evaluate-
the-effect-of-motivation-on-employees-productivity-business-essay.php.htm#ixzz2nioT8wef
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9.0 INTRODUCTION

Kandy Fabrics (PVT) LTD (KF) manufactures of quality handloom and power loom
fabrics. And their office is situated in Warakamura Matale. Also they have factories in
Kaludawela (Matale) and Palamuna (Baticalo). 100 workers are working in Warakamura
factory and Matale factory. And Bank of Ceylon (BOC) government service sector
serving nationally and internationally. Both organizations are trying to achieve their
organizational objectives by different management and leadership styles.


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02. DIFFERENT APPROACHES TO MANAGEMENT
Managers are the people who guide on towards achieve organizational objectives effectively
and efficiently. It can be describe as the process of planning, organizing, leading and
controlling the efforts of organization members and of using all resources to achieve goals.

Figure I: Functions of management

In order to help identify main trends in the development of organizational behavior and
management theory, it is usual to categories the work of writers into various approaches,
based on their views of organizations, their structure and management.




Planning
Choose appropriate
organizational goals
and courses of action
to best achieve those
goals.
Organizing
Establish task and
authority
relationships that
allow people to work
together to achieve
organizational goals.
Leading
Motivate,
coordinate, and
energize individuals
and groups to work
together to achieve
organizational goals
Controlling
Establish accurate
measuring and
monitoring systems
to evaluate how well
the organization has
achieved its goals.
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Scientific management
Administrative management
Bureaucracy management

Figure ii: Main approaches to organization, structure and management

Scientific management (F. W. Taylors)

Highlighting was on the problem of obtaining increased productivity from individual workers
through the technical structuring of the work organization and the provision of monetary
incentives as the motivator for higher levels of output. Tasks were standardized as much as
possible. Workers were rewarded and punished. Focus on,

Input Output

They focused on three areas task performance to develop, selection of workers, training of
workers and support to worker. Second is supervision to enhance the productivity and finally
motivation and they believe money was the way to motivate workers.








Classical
Human relation Systems
Contingenc
y
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Administrative management (Henri Fayol)

Management focuses on the management process and principles of management which deals
largely with jobs and work at the individual level of analysis, administrative management
provides a more general theory of management and produce quality outputs.

Input process output

Controlled by management

Bureaucracy management(Max Weber)

A formal system of organization and administration to ensure effectiveness and efficiency.
Characterized by division of labor, hierarchy, formalized rules, impersonality, and the
selection and promotion of employees based on ability, would lead to more efficient
management.

Figure iii: principles of bureaucracy


A
bureacracy
should
have
Firm
rules
Fixed
heirachy
A clear
division
of labour
Polices and
procedures
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Behavioral perspective
Focus on the way a manager should personally manage to motivate employees.
Marry Parker Follett Concluded that a key to effective management was coordination.
Elton Mayo - Study of worker efficiency



Figure IV: effect of hawthorn studies
Douglas McGregor proposed the theory X and theory Y


Table I: theory X v theory Y

employees are
motivated by social
needs and association
with others
employees' performance is
a result of peer pressure
than management's
incentives and results
employees want to
participate in decisions
that affect them
managers need to involve
subordinates in
coordiating their work
improve effiency
Theory X
Managers must closely supervise and
control through reward and
punishment
Theory Y
Managers should allow the worker great
latitude and create an organization to
stimulate the worker
Employee is lazy
Managers must closely
supervise
Create strict rules and defined
rewards
Employee is not lazy
Must create work setting to build
initiative
Provide authority to workers
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Chester Barnard
Must establish and maintain a communications system among employees and establish the
objectives of the organization and motivate employees.

Systems perspective
Understanding the organization as an open system that transforms inputs into outputs. For
example, consider to protect the ecology of its environment for business sustainability and
future profitability


Figure v: Open Systems approach


Contingency perspective
Focuses on applying management principles and processes as dictated by the unique
characteristics of each situation. Also when they are taking decisions they consider about the
task, people and environment. There is no best way to manage.

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The management of KF is mostly similar to the Fredric W Taylors scientific management.
Because they believed this methods of scientific management would lead to improved
managementlabor relations and contribute to improved industrial efficiency and success.
They mainly consider about the input and output through task performance, supervision and
motivation. Especially in the department of dying, winding, weaving, cutting and packaging
they supervise the workers and calculate the output per day and add bonuses to their salary.
They believe this will improve productivity. Also they only give some training at the initial
stages and recruit people according to the experience and near to the factory because they
give some bus charge to long distance worker. They have to work Monday to Friday at
7.30am to 4.00pm. If they are getting lave they have to inform before there days. Also they
have maintain 24 days must if they present only 23 days salary will reduce by 500Rs.but if
they worked 25 days by three day overtime they can get 1000Rs bonus.

Advantages
Work in order to decide the best method for achieves each task.
Selection of employees is based on the experience and qualification need to the job so
the works are done by the best way to achieve the goals.
Management is the full responsibility to planning and work. Worker should
implement the managers view so reduce risk by unskilled labor.
Follow fair performance standards for pay based on the work standards.

Disadvantages

Need to pay higher wages from increased performance.
Management watched that only by production control.

Never consider about human behavior.
Employees are not developed other than their work.

KF should consider on their management thought. Because they only consider about the
output. So sometimes employees can be demotivate when someone expects recognition he
will be demotivate. So as Maslows hierarchy they will never achieve esteem and self
actualization needs.
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The management of BOC is mostly similar to the Max Weber scientific management. They
have clear hierarchy, division of labor, polices and firm rules. They recruit people according
to the government legislation. And select employees through exams and interviews. Also in
bank they have to follow rules and procedures. For example, for open an account customer
must fill mandates and attach ID copy. Not only in accounts opening department but also
pawning, loan, cash counter etc. anyone of the labor cannot go beyond firm rules. They have
to keep all the records and it will be govern by the government.
Advantages
Every customer will treat equally because of the rules.
Result of specialization because of the division of labor.
Effective organization is based on structure and delegation through different layers of
the hierarchy
Less errors

Disadvantages
Take too much of time because of the procedures.
Absence of employee is cost effective.

The use and implementation of rules and procedures help to ensure essential values and
ethics. Also the functions are run on a consistent and fair basis. But because of the procedures
customers will get irritate so management should flexibility as customer view.
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03. EFFECTIVENESS OF DIFFERENT LEADERSHIP STYLES AND
HOW MANAGEERS CAN UTILIZE THE LEADERSHIP IN AN
EFFECTIVE WAY SPECIALY IN PERIODS OF CHANGE.

The nice thing about teamwork is that you always have others on your side Margaret Carty

There is no such thing as a self-made man. You will reach your goals only with the help of
others. George Shinn
Leadership is an important factor for an organization to make it successful. Leadership can be
identified as the process of influencing or direct others towards the achievement of
organizational objectives. KF follows Autocratic decision making style. Because they has
performance based culture. All decision making powers are centralized. Sometimes this can
be fixed to the KF employees because they have routine and unskilled jobs like they have to
work with machines to produce the bed sheets and pillow covers. Soothe employment have
clear idea about what needs to be done, when should be done and how should be done.
But BOC follows democratic decision making style. For example in loan department when
they want to pass loan to their customer operational manger will discuss with credit officer
and loan officer. Sometimes they will discuss with recoveries officer to confirm that he can
pay back. But the final decision will taken by the operational manager. So they consult and
gather information from members and take decisions. But in autocratic decision making they
will never get ideas from members. But in the both styles leader will authorized to take
decisions.



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Bank of Ceylon(Democratic) Kandy fabrics(Autocratic)
Because of the participation decision making
process will take time.
Leader will take quick decisions
Concentrate on quality of service High volume productivity
Because of the participation they grow on
their jobs and are promoted.
Employees work only for the reward and
punishment
It values the input of team members Do not allow for employee input
Table ii: differences of Autocratic and Democratic

Sometimes BOC gets Autocratic decisions, when paying salary also both BOC and KF takes
laissez-Fair Decision when staffs are getting conflicts.
KF should consider on their leadership style because they fully believe in Autocratic decision
making. So they always need close supervision, they depending on their leaders to make their
decisions and sometimes employees expect to have their opinions heard even in promotional
strategies. So if they are demotivating it leads to employee turnover.
So effective leadership focusing on the goal, group, individual and being flexible enough to
utilize these and leads to growth. Also that the success of a leader will measured by the
output but its not effective leadership. Because success can be achieve from position and
power of leader. But effective leadership is, subordinates should realize that their leader have
not only positional power but also have personal power. And then if they followed their
leaders it will be an effective leadership. Especially with the change of periods people follow
leaders who can be recognize as the role of heroic, powerful, charismatic and visionary
leadership. These can be identified as Transactional and Transformational theory.
Transactional theory is people are motivated by rewarding and punishments.
Transformational theory is people will follow a person who can inspire them as their Personal
power. The effective mangers require at least some leadership qualities. So managers are get
other people to do and leaders get other people to want to do by motivating by credible
actions like, challenging, inspiring, enable and encouraging. So as the above discussion
managers can utilize leadership like positional and personal power to motivate employees.
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04. MOTIVATIONAL THEORIES IN ORDER TO ACHIEVE
ORGANIZATIONAL OBJECTIVE

All the organizations mentioned above depend on people or employees. To achieve
organizational objectives efficiently and effectively employees should work with
commitment.
Commitment = Participative + Involvement
Rules & Regulation Motivation

Employees will participate in works to achieve organizational goals because of the rules and
regulations but if they motivated they will do their works with full of involvement and it
leads to achieve the goals successfully.

So motivate to employees to do their jobs and earn wages and importantly to add value to
employment and the management of people. There are different theories of motivation to
explain the nature of motivation. But the report will explain about Maslows Hierarchy of
Needs Theory, Herzbergs Two Factor Theory and Goal setting Theory.







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Maslows Hierarchy of Needs Theory
Maslow made assumptions that people need to satisfy each level of need, before moving their
needs to the next higher level. He suggests that human needs are arranged in a series of levels
represent a hierarchy of importance and all the levels should fulfill one by one to motivate
people. That is why theory is called as hierarchy of needs theory.

Figure VI: Maslows need hierarchy
Physiological needs
Physiological needs mean the needs for basic facilities of life. In work place if a person is
gain enough salary to maintain above needs then employee engages with work
enthusiastically. Both BOC and KF are providing good salary to their employees. Bank staffs
are satisfied with their salary than Factory staffs.
Safety needs
Safety needs mean the physical and environmental security. In work place job security,
financial security, hygienic work environment and health security are the safety needs. In
BOC they have Pension, EPF, ETF, Permanent job and Hygienic work environment. In KF
they dont have a pension plan and ETF. Also it is difficult to work with chemicals and noisy
surrounding. But KF is always considering about their employees health. So they provide
safety equipments like Glues, Boots, Mask, ----, water to wash after working. Also they have
to get Environmental certificates from the environment authority.

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Social needs
Social needs mean the need for love, affection, care, belongingness, and friendship. So in
work place they expect group works and entertainment. Both BOC and KF have many team
works. Especially in banks they celebrate ceremonies like wesak, theru and birthday of bank
together to fulfill their social needs. But in KF only they meet at the working hours.
Esteem needs
Esteem need is about respect, confidence, promotions, recognitions, training and
development, and awards. In KF they do not give any training and development for their
employees after take on. Also they cannot get any promotions or recognitions in their jobs.
They have to work at the same position till end of the day. But in BOC there is a large space
for growth. Because they provide training and development to their employees and also they
can get promotions in their jobs.
Self-actualization need
Self-actualization need helping to top level management , challenging job opportunity to get
growth, this will help the support to become what you are capable for becoming , gaining
more knowledge and achievement. Both BOC and KF are not satisfied the self-actualization
needs like they do not take any experiments and innovations because of the organizations
image and rules. So as the Maslows Hierarchy of Needs Theory,

Figure vii: BOC Motivational stage Figure viii: KF Motivational stage


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Herzbergs Two Factor Theory
Herzberg identified two sets of factors affecting motivation. It includes factors such as
Hygiene factor and Motivators.

Motivators Hygiene factors
Achievement
Recognition
Work it self
Responsibility
Advancement
Growth
Security
Salary
Working condition
Supervision
Company policy and recognition
Relationship with subordinates

He believes by providing hygiene factors dissatisfaction of the employees can be removed
and by providing motivators, employees can be kept satisfied.



Motivators 0 Hygienic
Satisfaction Dissatisfaction
Figure ix: Herzbergs Two Factor Theory



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Also this Herzberg theory can be connect with Maslows theory,

Figure x: Connection of Herzberg and Maslows theory

In KF they provide hygiene factors like, salary, security, good working condition, supervision
and relationship with subordinates. But they do not provide recognition in hygiene factor and
any of motivators factor. BOC provide all the hygiene factors and only the growth in
motivators factor.



No satisfaction No dissatisfaction
Motivators Hygienic
0
Satisfaction Dissatisfaction
Figure xi: Herzberg two factor theory for BOC and KF

BOC Motivational theory
KF Motivational theory

Motivators
Hygiene factors
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Goal setting Theory
Goal achievement is depends on Acceptance and commitment. Which means a specific and
difficult goal with self generated feedback leads to higher performance.
Acceptance
Acceptance mean a person should accept a goal as own. Also it should be specific,
measurable, achievable, and realistic and time bond. Most of the time BOC and KF are giving
clear task. But they do not satisfy with that. Because people are having different personalities
and also external factors affect them. But to motivate employees KF gives a more bonuses
like if a machine can achieve target 25 and a person achieved more than that they add it as
bonus in their salary. But in BOC they can get bonuses when government allows them.
Commitment
Commitment means a personal interest of an individual to achieve a goal as their own. These
can be come through rewarding. KF reward people according performance and BOC reward
people according experience. So KF employees are more commitment to achieve their goal.

Bank Of Ceylon Kandy Fabrics
Paid pension plan, EPF, ETF Not paying Pension and EPF
More social needs with celebrations and tasks Only working time social needs
Recognition, promotion and Growth No promotion, recognition and growth
Both organizations are paying base salary as their qualifications
Not taking any experiments or innovations to challenging job security.
Table III: Differences and similarities of motivational theories

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So if employees are demotivate it leads to employee turnover and poor outputs. Because
unsatisfied needs that motivate employees. So these motivational theories will help managers
to identify real requirements of their employees. So if they identify the requirements, then
they can motivate their employees to work with effort to achieve organizational objectives
effectively and efficiently.
As Maslows hierarchy BOC reached up to the 4
th
layer. But they didnt go to the self-
actualization because of the rules and regulations. But still they can motivate them by sharing
their opinions with top level and fell that they are gaining more knowledge, creativity and
being visual. Also growth will never stop at any level. It is continuous. So they can be close
to no satisfaction to satisfaction.
KF has performance based culture. Because if they worked hard they can achieve some
bonuses but they cant grow themselves. Also they provide only hygiene factor not any
motivator. So KF managers should consider more on motivational factors like they can give
some training lead them to get their growth.

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05. TECHNOLOGY AND TEAM FUNTION
Team work is a crucial element of workplace functioning
Teamwork is very important in an organization to achieve its goals. An effective team always
has clear team goals through encourage team members. Team work increases flexibility and
speed of the work. Technology is also influencing jobs and the organizational works,
especially team works. But it brings opportunities as well as threats. Teams can be building
for the organizational or individuals purpose. In the team function technology has been used
in several ways. When team functions are arising with forming (immature group), storming
(Fractional group), norming (sharing group), performing (effective team) and adjourning
(Disbanding group) they use technologies in numerous ways. They use technologies like,
computers, E-mail, mobile phones, fax machines printer, scanner, etc.
When they are at forming stage members are trying to know each other. They just get to
know each others. Then in storming stage try to know others interpersonal skills and
sometimes conflicts can be occurred also they form clicks and end of this stage build a clear
hierarchy of leadership. They chat with members and understand others skills. In the norming
stage group form as a coordinated team with close relationship. And performing team is the
effective team with fully functional team. Finally in the adjourning temporary groups are
dispend and sometimes willing to work once again.

Figure XII: Group formation

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In BOC they mostly engage with technologies. They use mobile phones, intranet and
sometimes use E- mail to interact with others. Also when performing they use computers,
printers and faxes. To open the account, with draw or savings, pawning details all are done by
computers. Also to chat they use internet, face book, etc.
In KF they do not engage with technologies. Because all the targets should achieve with
machines in production department. But in office they use only computers and phones.
Advantages of technology in team function
Works will be done very quickly.
Allows more composed working time.
Technology will enable to communicate faster and become livelier in decision-
making.
The struggle will be managing and prioritizing this increasingly specialized.
Open door working.
Communication of the members will increase team bond.
Less expensive office space
Disadvantages of technology in team function
Lower satisfaction levels for users of virtual meeting tools in contrast with fact-to-
face meetings.
Supervision of employees working off-site is also problematic.
Evaluating performance, distributing the work load and motivating employees is more
difficult when they are not physically present.
If team cohesiveness is a primary concern within organization, the lack of interaction
between peers could problematic.
Capital investment per employee is high
Skill requirements, dependence on skilled people.



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06. QUALITY MANAGEMENT TEAM
A way of capturing the creative and innovative power that lies within the work
A Quality Circle (QC) , also known as Quality Control Circle(QCC) is a volunteer group
composed of workers who meet together to discuss workplace improvement, and make
presentations to management with their ideas. Typical topics are improving safety, improving
product design, and improvement in process. Quality circles have the advantage of
continuity; the circle remains intact from project to project.
Major attributes of Quality circle are,
Participation management
Human resource development technique
Problem solving technique
The need for public businesses to improve quality of services is no longer an option but a
requirement. So in BOC they can build a quality circle for customer service to improve
productivity through quality of the service. It can be build by customer service manager with
front office workers, chief manager, general administrative officer, chief securities and
pawning department workers. Because in all these departments they have to more consider of
customers service. Objectives of quality circle are,
Change in attitude From I dont care to I do care
Self-development Bring out hidden potential of people
Development of team spirit individual Vs Team I could not do but we did it
Improvement of organizational culture Higher motivational theory
Reduction of errors - Enhances quality and productivity in the work area.
Problem solving - Creates problem-solving capability
Improved communication - promotes personal and leadership development among all the
employees.
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After deciding to build quality circle the first step is Identification of a problem which
means identify a number of problems. In BOC they should consider about how the
organization is serving to the customers in several departments. Because the firms key factor
is customers. So they have to always consider about the quality of services. Then Selection of
the problem is in which department and the elimination of waiting time of customers should
be identified. Problem analysis is the next step. The problem should clarify and analyzed. In
generating alternative solutions they can identify various alternative solutions like chief
security can manage other s4ecurities to help and identify the customer requirement and help
them. Select the most appropriate solution, The most appropriate and suitable solution is
selected after considering various solutions because the best service will increase the
objective of the organization. Then Preparation of action plan, prepare plan of action for
solution by who, what, when, where, why and how. In Approval of the Management,
solution and the plan of action must be put forward before the management for their approval.
Finally Implementation The management evaluates the solution and examines the same
before implementation.
So this quality circle will develop effective team work in organizations by .so the
participative management, encouragement of creativity, people building and improve
relationship will develop effective teamworks in organization. And also it gives positive
working environment because of the involvement of all level people and improves the
motivational levels.

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07. CONCLUSION AND RECOMENDATION
In both organizations three are some similarities and differences. In their management style ,
leadership styles and motivational factors. KF mostly consider about performance and
motivate employees by reward and punishments. But it will never always successful. If
workers are demotivate employee turnover and effect on output can be occur, so KF should
consider on motivating their employees like work life balance, ceremonies and celebrations,
understanding of customer feelings and sharing ideas with them.BOC always try to m0otivate
their employees and increase of customer service. BUT the key factor of organization is
service to customers. So customers are not always satisfied. Because people are having
different personalities. So they always compare the services with other people as well as
other banks. Especially with private banks. So to reduce this problem they can build a
quality circle and discuss the factors effecting service. It will increase the customer services
as well as employee motivation
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08. REFERENCES
M.J.Deen, Managing Director, Kandy Fabric (PVT) LTD, Mattawa road, Warakamura.
P.W.M.K.Tilakaratne, Operational Manager, Bank of Ceylon- Matale Branch.


Lecture Notes

Andrzej.H and David, 2001, Organizational Behavior, 4
th
edition, Pearson Education
Limited, England.

Principles of management [online] (cited on 3
rd
march 2013) available from
http://www.cliffsnotes.com/study_guide/Five-Approaches-to-Organizational-Design.topicArticleId-
8944,articleId-8882.html





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09. APPENDICIES