ABN AMRO PAKISTAN

MOTIVATION REPORT

ORGANIZATION BEHAVIOR

Prepared By
Mohammad Ijaz

01-122061-028

Submitted To

MBA II
Bahira University Islamabad

I dedicate this project to our beloved families

for keeping our spirits high and for their love,
support and guidance throughout our lives.

Mohammad Ijaz

ACKNOWLEDGEMENT
All Praise to Allah. First and foremost we thank Allah, the Generous, for having finally
made this effort a reality. We praise Him because if it were not for His Graciousness, it
would never materialize.
We are extremely grateful to Mrs. Salma Atif, our course coordinator. She spent a lot of
valuable time with us and gave all the related information and expertise very generously
about report writing.
We thankful to ABN AMRO and its employees who provide the platform to make our
project successfully, specially thanks to Admin Head ABN MR. Zafar Niazi, and Property
Head ABN MR. Aleem Querishe.
We are also thankful to Ms. Saleeha Haroon (Instructor Bahria University Islamabd) and
Mr. Shazadeh Qammar (Asst. Professor Bahria University Islamabad) who guided us in
each step of business research.
At last we, express our deepest gratitude to all those who contributed directly or
indirectly to bring this project to this final format, because we would never have been
able to achieve this by our self.

TABLE OF CONTENTS
Page #
Chapter # 01

07

Chapter # 02

20

Chapter # 03

22

Chapter # 04

42

References

50

Appendix-A

52

Appendix-B

69

Appendix-C

78

Appendix-D

81

EXECUTIVE SUMMARY
Since in Organization Behavior subject of MBA at Bahria University Islamabad, students
are required to prepare the report, to implement the terminologies what ever they studied.
The topic we selected for report is Motivation at ABN Amro Pakistan.
However all of the group members done a lot of work before completing the report, we
has studied different topics from different books and web sites. This work made us to
know about report writing, and different motivation terminologies use by foreign bank
like, ABN Amro in Pakistan.
In this we has researched what is motivation and how ABN Amro implemented
practically its concepts? How it is implemented Internationally?
Pakistan is not working a lot on motivation. There are rarely few or no company in
Pakistan who implementing motivation global terminologies partially and one is ABN
Amro. We has researched that, at extent ABN Amro is using international employee
motivation rules.
Our research will going to give an idea to people who are going to join an organization or
going to hire people for their businesses, they will know how to motivate employee. We
tried our best to recommend some employee motivation techniques that can be
implemented in ABN Amro Pakistan which will going to increase motivation level to its
employees.
ABN AMRO is providing a well competitive compensation package to attain, retain, and
motivate its employees. Employees are free to express their views about the work
situation what they feel about it. Environment and work conditions are user friendly.
While interviewing an executive at ABN AMRO we were told by him the ABN AMRO
environment is best motivator of its employees. This thing is true as well as in the words
of employees we are proud to work at ABN AMRO here we have not just found a job
we have a career. There is much career advancement if the employee show high
performance and work productivity. The behavior of the management to employees is
friendly and they adopting a participative management system. Compensation packages
are based on internal and external equity basis. But the policy of compensation differs for
permanent and contractual employees. Bonuses and rewards are totally based on a fair
appraisal system. Rewards are given in the way of shopping cards, gifts and cash as well.
Parties between employees are a common.
Their mango parties are very interesting part of reward. For recreation tours are
organized. ABN AMRO does not offer profit sharing to management. Some of the things,
which are considered as issues, are presence of no MBO, no profit sharing, and no
flexible work hours. ABN AMRO does not offer profit sharing to management.
Availability of no flexible work for females is problematic. A country like Pakistan where
culturally it is not considered good for a female to live out of home late night. Most of the
employees are contractual they have loyalty to become permanent. As it is the bank
4

policy to make a contractual employee permanent after five years experience. Person who
are directly hired on management positions they are required to have a vast experience of
the banking sector and showing an expertise in their field. An employee when is rotated
from a city to other city he is given settlement expenses. These include fee dues of
children but initial not permanent and settlement allowance.
Then they are offered a high compensation for retention. Employee recognition programs
include employee of the month, employee of the year, king and queen are also entitled in
some conditions. Employees also benefit from the economy class air ticket and in the
case of out of city travel employees are given traveling allowance and residence
allowance for official tour.
Vehicles are offered to management level employees and this range between different
categories starting from 1300cc to 4 million cost vehicle is for the different management
positions. House rents, utilities and medical allowances are also the compensation part. In
case of any mistake by the employee or showing behavior against bank laws employee is
positively enforced to change behavior. But in the case of severe situation an immediate
suspension can occur. These things rarely occur so its not a too strong aspect of actions
against employees.
Conclusively ABN AMRO uses all sort of compensation plans to motivate employees.
But this plan requires some improvements for further betterments
We hope this report will be informative and innovative for students and ABN AMRO.

Chapter 1
LITERATURE REVIEW

1. Article Summary # 01: You Can Make Their Day: Ten Tips for the
Leader About Employee Motivation
2. Article Summary # 02: The More You Believe In Others, The
More They'll Do To Prove You Right.
3. Article Summary # 03: Team Motivation.
4. Article Summary # 04: 12 easy ways to motivate your employees
and get the performance you want.
5. Article Summary # 05: Motivational Techniques to enhance
performance.
6. Essay (Combine Summary).

SUMMARY # 01
You Can Make Their Day: Ten Tips For The Leader About Employees
Motivation
By: From Susan M.
This article is written by Susan M. This article is specifically written for leader, and how
they can motivate their subordinates. Author saying you can nit measure the ways you
can motivate your employees, it can be in thousand of ways like from your body
language, your words, your facial expressions etc. To build your employee motivation
level you need to pay attention on your every day. For increase employee motivation
level author has defined ten tip for leader.
When you arrive at works your entrance tone will tell about your mood that will motivate
or demotivate your employees. Enter confidently in organization with smiling tone which
will sets the employee motivation tone for the day. Tell your staff today going to be the
great days. Always appreciate your employees by using simple and powerful words like
Thank you, Kindly, Please or You are doing a good job. There is not hard work
to use these words.
Leader needs you to be clear at whatever they are conveying. Normally they say
something and employee understand something else. Sometimes requirements change
middle of the day and then new expectations are communicated usually poorly and the
reason for change is rarely discussed. Leader need to make sure that his or her employees
understand clearly by taking feedback what they understand. Your employee needs
regular feedback of their work done. They need to work with you to make sure they
produce positive feed back next time. Give feedback to your employees daily or weeks
bases and discuss with them.
Employees need rewards and reorganization for the positive contribution. Leader can
send Tank you card or small gift for the work done by the employees beyond the
expectations. Employee need administrative process when they fail to meet requirements
and it can be done by leaders, which will motivate employees. Create a work
environment in which individual employees choose to be motivated about work goals and
activities. Thinking on which factors motivate us can create this environment.
Keep your employees on continuous learning and try new ideas for motivation. If your
company offer educational assistance plan then use all of it and if no then ask your
Human Resource Manager for that. Ability of continuous learning will increase your
employees motivation level.
Spend time daily with each person you supervise. Make timetable to meet your
subordinates so that they will feel their leader put attention on them, which will increase
their motivation level. Your employee will learn due to many reasons that can be
8

promotion, different work settings, and new position or leadership role or employee
appreciation your help. Encourage different experiments by taking reasonable risks to
develop employee skills. Ask each employee objectives and what are their aims. Make a
performance development plan with him or her and make sure your helping each person
to carry his or her out the plan.
Share your goals with your employees. Plan regular meeting to share your daily goals and
ideas, which will help employee to get the work done properly and motive them. Get the
feed back and focus on majority before implementing the policies. If your motivated your
employees then your employees will follow you. It always starts from the leader who can
make their employees day wonderful.

SUMMARY # 02
The More You Believe In Others, The More Theyll Do To Prove You
Right.
By: Dr.Alan Zimmerman
The article discusses motivation which you bring in your employees by giving the believe
that they have the potential to come out successful of any crises. It takes two cases, first
one is of a sales lady who was in slump but jus in two years got up to receive the highest
award and the reason she told for her success was her mangers believe in her, which was
more than her own believe and became the motivation factor for her success.
Everyone has the ability; its just he/she needs someone who have faith in his/her abilities,
so we can say A person does his best when someone believes in him. It is the basic fact
in motivation but still it is not used systematically to bring best out of other.
Zimmerman provides two reasons for that, one is that mangers assume that employees
think that no news, is good news but employee take the silence as negative because
even if any employee knows he has done good job, he still needs to know that manager
thinks the same. The second reason is managers are so busy in solving employee
problems that they forget to exhibit their belief in the employees.
If you as a manager are unable to exhibit a strong belief in your employees you are
creating non-communicative employees, which is obvious waste of employee talent.
Failing to exhibit belief also results in employee demoralization .The second case
discusses Russian Military after 1917 Russian Revolution. Due to communist policy that
showed no signs of belief in the officers, resulted in their complete demoralization. After
the problem was identified Russia begin to show overt belief in its officers and used
strategies like giving titles and medals to give them distinctions.
So by going through the whole text of the article we come to the conclusion that it costs
nothing to believe in your employees but it brings wonders to your organization, so start
believing.

10

SUMMARY # 03
Team Motivation.
By: Peter Grazier
Peter Grazier who has a great experience of working in organizations has written this
article. He enlighten some important factors which influence the teem motivation. He is
of the opinion that everyone from us is quiet familiar with the term motivation. Often we
associate this term with the human behavior, which means a state of mind that moves us
to action. He argues that our need of sustenance, safety, security, belonging, recognition
and a sense of growth are the important factors which determine that whether we are
motivated or not.
The word motivation is simple yet too complex. According to the writer the most
important factors that influence team motivation are purpose, challenge, camaraderie,
responsibility, growth, and strong leadership. Teams, whose members are aligned with
their purpose, feel a challenge in their task, have a strong sense of camaraderie, feel
responsibility for the outcome, and experience growth as a team and in their personal
lives, will tend to sustain motivation over the longer period.
This is not to say that they will not have difficulties at times, or their wants and needs
would not change over time. In these cases, some times changes will have to be made. A
member who no longer feels that the team is meeting his or her needs may have to leave
the team to continue on his/her own path. But, in as much as it is possible to sustain
motivation indefinitely, the factors above will tend to create best possible environment.

11

SUMMARY # 04
12 Easy Ways To Motivate Your Employees And Get The Performance
You Want.
By: Alexander Hiam
Alexander Hiam says for managers always remember the strengths of employees before
giving a particular task. Task should be relevant to the employee educational skills and he
should have experience to perform the task otherwise it will make the employee
demotivate or disinterested.
Motivational techniques should be should be changing with time to time and the
employees latest desires should be fulfilled first. Without measurement any thing cannot
be done completely. Measurement provides the manager what he should do and which
method should be adopted. Motivational scales should be measured and any thing wrong
should knock without waiting for the time to pass. Employees should be told continually
about their performance improvements and the advice of getting expertise should be
provided.
Keep on asking about the employee wants and desires. Ask them about what turns them
on. Try to remove different threats of the employees which they often consider about the
management. Managers should try to provide opportunities for the employees and
motivate them by opportunities of what they like.
Most employees want nothing and they fully focus on their work. So any interruption can
break concentration from work and the mind thoughts are dispersed. So they feel bad for
the interruption. If a good manager takes care of the employees then employee most
fundamental no tangible needs are fulfilled. Communication is also a good motivator so
try to meet employees continually and manager can schedule meetings to meet the
employees individually.
Communicate employees many of the times when appropriate and show to make a
personal engagement with them. Employees performance to known by their face the
more information a manager has he can take more corrective steps.
Manager should keep an idea notebook and get a feedback from them as they are on work
and can give a creative idea for the something difficult. Little words like well done you
have the ability to do tasks can more attract employees to work. Its up to manager how
much abilities and guts he have to motivate employees and how he gets success in his
achieving the task.

12

SUMMARY # 05
Motivational Techniques To Enhance Performance.
By: Gregory P. Smith
The article is written by Gregory P. Smith who recommends some motivational
techniques by himself and some others which are adopted by different organizations. His
techniques of motivations are as:
Money is somewhat motivator but rewards and employee recognition programs are vital
part of motivation. By creating family environment includes, special incentives like
celebrate employee work anniversary, provide facilities to employees children (schooling,
pick & drop), and employee safety bonus plans and job rotations is part of motivation.
This builds strong team work and employee satisfaction.
The organizations using different motivation techniques are as following:
Queen or King for the quarter, used by Dayton Metro Housing. Reward the worker as
King or Queen who demonstrating good customer satisfaction skills.
You are the Magnificent is used by MAG Insurance Company. Through this program
employees nominate each other towards best behavior during the job and top five get gift
certificates.
Shining Star, employees allowed to reward each other by titles according to their
performance.
Safety Bingo used to reduce accidental work during the job.
These informal programs provide an efficient strategy for motivating employees and they
feel sense of pride, accomplishment and purpose what they do and they are easy to
administer.

13

Essay on Motivation
There are so many ways to motivate employees but most favorable is that one which is
most accepted by the employees giving them the potential that they are able to perform
difficult tasks. In this regard the Germany, France, Denmark, Sweden and Austria have
constitutionally required by the companies of having elective representative of employee
groups as members in the Board of Directors. There is also another way to make
employees involved in the decision making of work counseling. In this method groups of
selected employees are consulted for the particular thing. The basic and the foremost
advantage of the participative management is that the each and every suggestion is
listened in detail and if accepted by the management when it comes to the
implementation phase employees show a keen interest in its settled goals achievement.
The common idea of the all this example is that the developed countries has started
employee involvement programs but in third world like India, Sri Lanka, Bangladesh,
Myanmar and Pakistan (sub continent) till have a very low practice of the employee
involvement. But when now the environment is getting a positive change as globalization
factor have pushed these third world countries to make better their production levels and
legislation improvement. This thing practically is seen in the case of new coming
companies like telecom sector in Pakistan and the multinational banks. Employee
involvement and the productivity are tested phenomena and are not just stories. While
interviewing a sales manager he said I was at a very low position two years but as I
started giving tasks to sales people at their own responsibility the sales went very high
and employee morale was very well they were feeling a high sense of achievement
Every person has the ability to perform difficult tasks but the need is that someone should
believe in him. We can say a person does his best when the duty is assigned him at totally
depending his own effort. It is very simple but it needs to be applied and seek the lesson
to judge outcome. Things can go right or wrong in any direction but the effort can bring it
to a desired direction. If a manager does a good job he needs to know that the manager
thinks about him in the same way. In this regard the quality circles (a group of
employees, who meets management to discus their quality problems, investigate causes
and recommend solutions) can also play a vital role (P. Robbins, 2003). If a manager is
unable to create a strong belief in the employees then he is creating non communicative
employees which are an obvious waste of the employee talent. Here the leadership role of
the manager cannot be denied.
The manager should have the capacity to make better communication and relationship
creation with employees for better environment and providing counseling in the case of
need and edge of more experience should provide benefit to employees.
The lack of these things appeared happened with the Russian army in 1917 resolution due
to communist policy that showed no signs of believing in its officers resulted in their
complete demoralization. After the problem was identified then Russia converted its
attention and showing belief in the military officers. Here practically we see if the

14

Russian have not coming to the forthcoming threat in the army then they would have a
destruction of military but they saved it after tackling the problem.
Here after discussing the example it is clear how an autocratic environment makes
employees feel suffocate. Such environment keeps employees especially higher
management away from the daily evidences faced by the employees. Decision of the
superiors is considered the final thing and no change can be made. Practically this way of
work is considered better in the militant forces. In public institutions this method has
produced lot of troubles and retaliation from the employees. Autocratic environment
keeps person in stress and declines their productivity by not accepting their views. In
comparison if democratic environment is judged there employees have chances to
express themselves and share thoughts and give expertise opinion. Freedom of expression
and getting and giving feed back has proved very positive effects. Every one is quiet
familiar of the term motivation.
Often motivation is associated with the human behavior. Yes it is the human behavior of
responding toward something positively and showing keen interest of achievement. The
need of sustenance, security, belonging, recognition, and a sense of growth are very
important factors, which keeps employee motivated. Although word motivation is simple
yet too complex .Its not easier to judge which thing makes an employee necessarily
motivated. A motivating factor not for long period remains of the same effect so it
requires a change.
In monitory rewards along with pay there are certain more benefits offered. These include
profit sharing and gain sharing. Profit sharing is usually offered to higher management on
the well-defined formula a particular percentage of the company profits. While gain
sharing is offered to group work or the team work in which improvement of the group
productivity determines the amount of the money to be allocated.
Teams whose
members are aligned with its purpose feel a challenge in their task and feel a great sense
of responsibility for the outcome. This is not to say that they will not feel difficulties and
that members want and need would not change over time a member who is not feeling
bad can continue can continue on their own path. But in as much as it is possible to
sustain motivation indefinitely the factors above will tend to create the best possible
environment for it. This is to tell about practical implementation of researches for the
motivational techniques.
Practically for the purpose of motivation employee strength and ability, capacity should
be kept in mind and the assignment given should according their skills and interests. So
for a good manager it is necessary always remember the strengths of employees before
giving a particular task. A task beyond the employee skills and approach may create
difficulties for him and the chances of failure of meeting the goals are more than ever.
Here it means that the manager should keep the right person at right place i.e. no misfit
job be given.
Skills of the employees for a job counts lot for example a person hired for sales his basic
skill is to have know how of the marketing but if he brings some more skills like knowing
15

of information technology then he has more edge to be successful in his field because he
will have no problem to understand e- commerce. In the case if person has more and
more portfolio of skills then its his right to achieve more compensation. It means the
compensation provided on skill basis keeps employees to seek more and more about the
particular field and their motivation level goes above. Motivational factors should be
changing with time to time and the employees latest desires should be fulfilled first. A
thing which is motivating today for an employee perhaps it will change tomorrow and it
is human nature as well to get bored from a repeatedly practiced thing. So for an
employee if more pay is motivating at one time but at other timer his motivator may be
promotion or the role of leadership.
Motivational scales should be measured and any thing wrong should knock out without
waiting for the time to pass. Employees should be told continually about their
performance improvements and the advice of getting expertise should be provided. For
this purpose employees of the same scale can also contribute help to each other, managers
can provide a forum of internal discussion between employees to improve and come off
with the situation. Keep on asking about the employee wants and desires. Ask them
about what turns them on.
Different threats faced by the employees make them uncomfortable and their creativity
level comes down. Try to remove different threats of the employees which they often
consider about the management. These threats may include end of the contract any social
problem with the employee or a solid reason which distracts employees. Some managers
also threat employees about not meeting goals its very rude way to attract employees.
Managers should try to provide opportunities for the employees and motivate them by
opportunities of what they like. Most employees want nothing and they fully focus on
their work. If a good manager takes care of the employees then employee most
fundamental no tangible needs are fulfilled.
Communication is also a good motivator so try to meet employees continually and
manager can schedule meetings to meet the employees individually. Employees
performance to known by their face the more information a manager have he can take
more corrective steps. Manager should keep an idea notebook and get a feedback from
them as they are on work and can give a creative idea for the something difficult.
Rewards on better performance create very well feelings in the employees.
Motivational things are different from those of professionals they tend to get more
rewards and intrinsic satisfaction from their work so mostly professional work employees
get more intrinsic rewards then others due to having an expertise skills. Its also
necessary for firms to retain them because an expertise getting is not an easy thing. Now
is the period of competition so the firms should attach some portion of the pay to
production (piece rate) that is coming out of the traditional way of motivational
techniques.
Employees can be given piece rates and bonuses and some time different prizes like
parties shopping card and dinner parties as well. So if a companys production is falling
16

down than it is best policy to say employees your salaries are attached to the production
and the profits of the firm and then see how it affects the level of motivation and intrinsic
desire of work in the employees for the different operations of the firm.
Flexible benefits are an addition to the motivation factors here employees make their
benefit plan and they are then allowed to select benefits from a menue to meet their needs
for if a recreation program is offered then employee is given the chance to go or not. In
case of not going amount of money equal to tour expense can be offered and on the other
hand it is better tapped the employee satisfaction then offering a single thing and not
getting employee will involved.
Tours of beautiful places reduce the boredom level of employees. Tea parties, mango
parties and invitation for dinners are also factors adding the motivation. Rewards like
medals, gifts shopping cards and recognition for employees like employee of the month,
employee of the year, are very important motivating tactics practiced by the
multinationals. In addition to these all factors human resource departments are also
available for employee help.
Compliance is also playing very effective role in this regard as well. Compliance actually
have gotten the role of corrective responsibility and keeping the line of work established
so that the policies of one department should not conflict with other department by
providing interactive facilities between departments.
So to create an effective and motivating plan a firm should consider the following things;
Conclusively we can say that a firm should use all the ways of best motivation including
employee participation in decision making quality improvement, getting their continuous
feedback and a combination of monitory and non monitory rewards.

Understand person-to-person difference.

Compensation is provided on tasks and good appraisal.

Participative management is practiced.

Better linkage of reward and performance should be created.

The level of internal and external equity for the employees should be maintained.

Provision of work friendly environment.

Flexible work hours and flexible benefits should be provided.

Measures to reduce sexual biases are adopted and sense of equality be provided.

17

Females in Pakistan like country are not allowed to live nights outside so their
night duties should not be there.

Multinationals should consider host country culture more than parent country
culture for motivation.

18

Chapter 2
Organization Overview

19

1. About ABN AMRO.

2. Mission Statement.
3. Vision Statement.
4. As an organization.
5. Corporate Values.
6. Business Principles.
7. Financial Status.
8. ABN AMRO Pakistan.
9. Clients.
10.Competitors.
11.Organization Functioning.
12.Organization Structure.

20

ABOUT ABN AMRO1

As an international bank, ABN Amro has more than 4,500 branches in 53 countries. They
cater to your needs both at home and abroad. They have a clear focus on consumer and
commercial clients in our local markets and focus globally on select multinational
corporations and financial institutions, as well as private clients.
The merger between ABN BANK and Amro Bank created ABN AMRO on 22 September
1991 in Amsterdam. The date of incorporation of ABN AMRO is 29 March 1824 in the
Hague. On that day Nederlandsche Handel-Maatschappij (Netherlands Trading Society,
NTS) was established by Royal Decree of King Willem I. With effect from 3 October
1964 after the merger with Twentsche Bank, NTS changed her name to Algemene Bank
Nederland (ABN Bank). After the merger with Amro Bank in 1991, ABN changed its
name to ABN AMRO
The ABN AMRO name is derived from the initials ABN (Algemene Bank Nederland)
and AMRO (Amsterdam-Rotterdam Bank), the founding banks of ABN AMRO in 1991.

MISSION STATEMENT
ABN AMRO World wide mission statement is Making More Possible.
ABN AMRO World HR base mission statement is Employer of Choice.

VISSION STATEMENT
To be benchmark service provider in the banking industry. We will ensure that our
customers get quality and unparalleled service to satisfy their banking needs. This will be
achieved through investment in terms of both money and effort through distribution,
products and the people who have the necessary skills to deliver our promise. The
organization will also abide by all legal and ethical norms of the industry and individual
countries while striving to stand out from the competition through effective external and
internal communication. ABN AMRO Bank is the brand which can be trusted for
delivering high quality service valued by customers. The brand promises peace of mind
as the key emotional benefits and promises each customer contact to be uniquely ABN
AMRO.

AS AN ORGANIZATION
AMN Amro implements their strategy through a number of Business Units (BUs). These
units are responsible for managing a distinct region, client segment or product segment,
while also sharing expertise and operational excellence across the Group.
1

21

ABN Amro has five regional Client BUs: the Netherlands, Europe, North America, Latin
America and Asia. These BUs serve about 20 million consumer clients and small to larger
businesses worldwide. ABN AMRO is among the world's leading players in these
businesses.
They have two global Client BUs to serve clients with global needs. The BU Private
Clients provides private banking services to wealthy individuals and families and has
EUR 136 billion in Assets under Administration (as at 30 September 2006). The
BU Global Clients serves their 550 multinational clients.
ABN Amro has three Product BUs: Global Markets, Asset Management and Transaction
Banking.
Global Markets develops products for their commercial clients across the globe.
Transaction Banking is their product organization covering all payments and trade in the
bank for their retail, private client, and commercial markets.
Asset Management, which is one of the world's leading asset managers, operates from
over 20 locations worldwide and manages EUR 192 billion worth (as at
30 September 2006) of assets for private investors and institutional clients.

Services
Services were established to create cost savings through consolidation and
standardization. It focuses on further exploiting new market solutions for support services
with the aim to achieve better products and services for our clients at lower costs.

Group Functions
Group Functions collaborates with the BUs in maximizing client and shareholder value.
Its basic functions are governance (facilitating the implementation of Managing Board
policy throughout the bank), standard and policy setting (setting the parameters that the
BUs work within), and sharing expertise across the company.

Segments
To provide all our clients with even better products and services, we also have a cross-BU
Consumer Client Segment and a cross-BU Commercial Client Segment. These segments
focus on aligning the Client BUs with the Product BUs, sharing best practices and
exchanging winning formulas across the Group in order to deliver high-quality solutions
to our client bases across the world.

22

CORPORATE VALUES
Our values and principles also help us on our journey to sustainable development. By
living according our defined Corporate Values and Business Principles we can meet the
needs of our organization and stakeholders today, thus protecting, sustaining and
enhancing human, natural and financial capital for the future.

Integrity
Above all, we are committed to integrity in all that we do, always, everywhere.

Teamwork
Teamwork is the essence of our ability to succeed as a trusted preferred supplier of
financial solutions to our clients. Our overriding loyalty is to the good of the whole
organization. We learn from each other and share our skills and resources across
organizational boundaries for our clients' benefit and our own.

Respect
We respect every individual. We draw strength from equal opportunity and diversity, at
the same time supporting personal growth and development. We value and we all benefit
from the entrepreneurial spirit of each individual.

Professionalism
We are committed to the highest standards of professionalism, we pursue innovation, we
deploy imagination, we are open to new ideas and we act decisively and consistently. We
are determined to deliver outstanding quality so that our relationships with our clients
will be long lasting and close.

BUSINESS PRINCIPLES
We are the heart of our organization.
We pursue excellence.
We aim to maximize long-term shareholder value.
We manage risk prudently and professionally.
23

 We strive to provide excellent service.

We build our business on confidentiality.
We assess business partners on their standards.
We are a responsible institution and a good corporate citizen.
We respect human rights and the environment.
We are accountable for our actions and open about them.

FINANCIAL STATUS
At international level ABN AMRO ranks eighth in Europe and 13th in the world based on
total assets, with more than 4,500 branches in 53 countries, a staff of over 110,000 fulltime equivalents and total assets of EUR 999 billion (as at 30 September 2006).
At Pakistan level ABN AMRO is with total assets of over PKR 66.5 Billion, equity of
PKR 4.5 Billion, and deposits of almost PKR 52 Billion, ABN AMRO is placed and well
positioned as one of the larger foreign banks in Pakistan

ABM AMRO PAKISTAN

ABN AMRO was established in 1948 and was the first foreign bank to be granted a
license by the Government of Pakistan. With total assets of over PKR 66.5 Billion, equity
of PKR 4.5 Billion, and deposits of almost PKR 52 Billion, ABN AMRO is placed and
well positioned as one of the larger foreign banks in Pakistan. We have posted pre-tax
profits of nearly PKR 2.2 Billion (December 31, 2005), and the ROE of almost 51% is
amongst the highest in its peer group. Over the last four years, ABN AMRO has
significantly enhanced its profile in Pakistan, and is comfortably ranked amongst the top
3 foreign banks in the domestic market.
Over the last four years, ABN AMRO has significantly enhanced its profile in Pakistan,
and is comfortably ranked amongst the top 3 foreign banks in the domestic market. The
Bank currently has a presence in 4 cities namely, Karachi, Lahore, Islamabad and
Rawalpindi employs 458 employees countrywide.
It offers long-standing expertise and experience in Consumer Banking, Corporate
Banking, Investment Services, Treasury, Cash Management Services (allowing customers
to provide payment and disbursement instructions electronically), and Correspondent
Banking (for local and international transactions).

24

A network of twelve online branches strategically located in all the major cities supports
an extensive and rich Consumer Banking foundation.

CLIENTS
Personal Banking Clients.
Private Banking Clients.
Business and Commercial Clients.
Corporate and Institutional Clients.

COMPETITOR
Citi Bank.
Standard Chartered Bank.
Habib Bank Zurich.
Dubai Islamic Bank.

ORGANIZATION FUNCTIONING

Consumer Client Segment.

Commercial Clients.
Portfolio Management Group.
Commercial Client Segment.
Assets.
Branch Banking.
Compliance.
Consumer Risk Management.
Credit Cards.
E Business
Islamic Banking.
Marketing and Business Development.
Strategic Business Planning and wealth.
Global Market
2

See Appendix B for further detail of ABN AMRO functioning.

25

Financial Markets.
Credit Markets.
Research.

Group Functions.
Compliance.
Finance.
Group Audit.
Human Resource.
Legal.
Market Risk.
Risk.
Services
Management and Control.
Operations.
Property Services.
PTO.
Transaction Banking.
Business Management.
Delivery Channel Services.
Sales

26

ORGANIZATION STRUCTURE
SEVP

SVP2

SVP1

VP

SVP2

SVP1

SVP1

VP

AVP

SVP1

VP

AVP

AVP

VP

AVP

MANAGER

MANAGER

ASST. MANAGER

ASST. MANAGER

SR. OFFICER

SR. OFFICER

OFFICER

OFFICER

SUPERVISOR

SUPERVISOR

27

Chapter 3
Data Collection & Key Issues.

28

1. Visit to ABN AMRO.

2. Compressed Form of Collected Data.
3. Key Issues Vs Textual Material.

29

VISIT TO ABN AMRO

We personally visited the ABN AMRO in order to understand the system. ABN AMRO
Islamabad branch is located at 12, Markaz F-7, Islamabad. It is nice light yellowish beige
color painted building. It is highly professional computerized environment where all
employees are working formally in very friendly and comfortable environment.
First we had a meeting with Branch Administration Head, Mr. Zafar Niazi. We had
introduced our self to him and purpose coming to ABN AMRO. He authorized us to work
with EOBI to complete our project.
Then we met with Property Head, Mr Aleem Querishe, and introduced our self. To get the
information to understand the current system, analysis, and to find out flaws we had taken
the interview of Mr. Aleem Querishe.
M. Aleen Qareshi has describes about ABN AMRO, its branches, and its few HR policies.
He briefly describes different departments of the ABN AMRO. We asked him different
questions to find out how ABN is motivating its employee and till what extant they are
utilizing international motivation techniques.

30

COMPRISE FORM OF COLLECTED DATA

ABN AMRO is a foreign bank with total 12 branches.

The bank has 450 permanent employees and around 1500 contractual employees.

The staff is spread over various categories of jobs and grades and depending upon
the job description.

New entrants are hired as supervisors and they come through course of
Management Associates it is one year training.

Grading structure of the ABN is as follows:

New Entrants as
Trainees or Management Associates
They are given one year training at MCB Staff College and then
Placed in various departments as per knowledge and skills of the same.
Supervisor Grade

---

starting grade for trainees

Upon completion of certain period of service and based on performance

and availability of positions the staff is promoted into next grades which
are as follows:
Supervisor
Officer
Senior officer
Assistant manager
Manager
AVP
VP
SVP1

to
to
to
to
to
to
to
to

Officer
Senior Officer
Assistant Manager
Manager
AVP
VP
SVP1
SEVP

These are certain salary scales/ grades in which employees are placed.
However some placements are done beyond scales depending on the
employee experience and having a specialized degree and proficient skills.

There are various benefits perks and allowances in addition to basic salary as
follows.
Basic Salary
House Rent
Utilities

X amount
35% of X amount (Basic)
10% of X amount (Basic)

31

Other allowances / perks include

Fuel allowance various limits (liters) from Manager above
Manager
AVP
VP
SVP-1
SVP-2
SEVP

100 Liters
175 Liters
225 Liters
275 Liters
325 Liters
375 Liters

Company car is provided as per entitlement and policy

AVP
VP
SVP-1
SVP-2
SEVP

1300 CC
1500 CC
1600 CC
1800 CC
Has option to buy one or two cars within the
range of 4 millions rupees.

Total maintenance is provided by the bank, but payment is not

made in the form of allowance
.
Medical Expense reimbursement is given 450K per confinement
(90 days payment up to 450000 for single disease).
Free hospitalization insurance and reimbursement of
hospitalization expenses is provided through insurance company.
ABN employee is insured from different insurance company (EFU,
Adamjee, and Commercials Union). On normal death of employee
48 gross salaries are given to employee family. On death due to
accident then 96 gores salaries are given to employee family.
Provident Fund of staff is deducted from their salary @ 10% p.m.
of the basic salary. Similar amount is contributed by the employer
into the Provident Fund. Upon retirement or leaving the bank
employee contribution and employer contribution is paid to the
employee along with the profit earned on investment of PF
amounts.
Bonus based on the performance is given after the year-end
performance appraisals are done and evaluated by the HR Dept.

Recently the bank has offered stock options for the star performers but the same
was limited mainly to the senior management
32

Salary increment is given basically on yearly bases but sometimes ABN increase
on half yearly bases depends on BODs decision.

Employees are entitled to take 30 paid leaves.

30 paid sick leaves allowance given to employees.

Employees are entitled to take 10 casual leaves.

Employees are entitled to take 15 days Hajj/Umrah leaves during career life cycle.

ABN employees can take 5 days marriage leaves during career life cycle.

There is club membership for AVP and above employees.

Islamabad Employee get membership of Islamabad club.
ABN Karachi employees get membership of Creek Club DHA.

Economy class air ticket for all ABN Amro employees.

Partially there is no MBO, ABN have Performance Appraisal Management

program on yearly and half yearly bases and through this program they decide
what task will employees need to do.

ABN has different Employee Recognition Programs. Employee of the month.

Employee of the years.
Employee of the Month.
Best dressed person of the year.

They have Employee Involvement Program which they called Employee

Engagement Service program for decision-making.

ABN doesnt share its profit with employee. It only gives bonus on performance
appraisal.

ABN AMRO do have skill base pay program but within the range of that
particular grade.

Flexible working conditions is there for employee but at very minimum level
mostly to female employees.

Boredom is removed by; rewards, job rotation, training, sending employee out of
country. HR is usually doing these jobs on periodic bases.

33

For employee complains there are HR Department, Compliance Department,

Supervisors, and Audit Department and these things comes in Quality Circle.

The most motivating factor is the Environment of ABN, comfortably, caring,

friendliness, Rewards.

ABN Environment its self the main Motivator for the employees because ABN
provide them high level of friendly environment and comfortably.

If employee breaks the rule then its depend what type of rule he violate, he can
immediately suspend form the job also but ABN usually use Positively
Reinforcement.

If we apply equity theory then ABN AMRO employees are getting salary more
then market situation. (75 Percentile to 90 Percentile employee market is covered
by ABN. ABN compensation plan captures the market Means 75% t0 90% top
most persons are hired by ABN and they are getting more salary due to their
expertise).

When employee is relocated then his children education expenses in new city are
covered by ABN Amro.

Females are allowed to take 90 days leave during their maternity periods.

Employee is promoted on job requirement and skill.

Relocation Package can also motivate because it offers high salary and bear
employee children new school program expense, provide accommodation rent in
case of package relocation.

Other Motivators used by ABN AMRO are cash rewards, foreign trainings,
parties, concerts etc.

Employee feels easy with their bosses to work and they feel comfortable.

ABN arranges Mango party to motivate employees, Picnic, 5-year medal, 10year medal.

34

KEY ISSUES VS TEXTUAL MATERIAL

ABN AMRO is one of the prominent international organizations. It is basically a service
providing organization, which follows international standards to motivate its employees.
Employees are the back boon of any organization. To get better performance, employees
should be motivated in the form of monetary and non-monetary rewards like employee
recognition program, employee involvement program. Following the key issues we
observed in ABN AMRO.

Management By Objectives (MBO) Program

Management by objectives means converting overall organizational goals and objectives
into specific objectives for organizational units and individual members. In this
technique, the employees set goals participatively (P. Robbins, 2003).
ABN AMRO is partially not agreeing with the Management By Objective (MBO)
program. They believe that it is not possible in practically that you implement MBO in
any organization because organization has its own target to achieve and employee goals
sometimes goes opposite to that direction.
During interview they had given example; If ABN AMRO wants to transfer employee
from Islamabad to Karachi and employee wants to go Lahore then there will be conflict.
Or another example can be employee own objectives are below the organization object
then how can we implement MBO program in organization.
Instead of having MBO program ABN have Performance Appraisal Program on yearly
and half yearly bases and through this program the decide what task employee needs to
perform. We can say they are bit autocratic rather then democratic.

Employee Recognition Program

Employee recognition program consists of personal attention, expressing interest,
approval, and appreciation for the job, which has been done by the employee. Usually it
may be in the form of small words like well done, I m proud on u, u have performed a
great job etc. This kind of words plays a vital role in motivating an employee. It can also
take a form of suggestions by the employee for reducing the cost and improving
production. For each effective suggestion that employees give, they are rewarded small
amount of money (P. Robbins, 2003).
ABN AMRO completely believe in Employee Recognition Program and they do practice
different programs like Employee the month, employee of the year, best dressed person
of the year etc. ABN AMRO can increase these program to motivate employee more and

35

more but they dont. Reason for doing this is, if ABN AMRO do employee recognition on
high scale then employee will lose charm of getting motivated form these programs.

Employee Involvement Program

A participative process that uses the entire capacity of employees and is designed to
encourage increased commitment to the organizations success. It lay stress on
participative management, workplace democracy, empowerment, and employee
ownership. The main logic behind this program is that by involving employees in
decision making, increasing their autonomy (empowering them) and control over work,
employees will become more motivated, more committed to the organization, more
productive, and satisfied with their jobs (P. Robbins, 2003).
ABN AMRO do have Employee recognition Program but they call it as Employee
Engagement service. They listen to employee suggestions and to ideas so that from those
suggestions they can achieve goals successfully.

Profit Sharing Plans

Organization wide program that distribute compensation based on some established
formula designed around a companys profitability. It is the type of variable pay program.
The more the company gain profits, the more they will get based on the particular
formula for compensation (P. Robbins, 2003).
ABN does not have any policy to share its profit with employee. Employee only get
bonus on the bases of there performance appraisal which is done by HR and immediate
managers.

Piece Rate Pay Plan:

It is also a type of variable pay plan. Workers are paid a fixed amount for each unit they
produce. When a worker is paid only for his production i.e. whatever he produces, and
there is no base salary it is known as pure piece rate plan (P. Robbins, 2003).
ABN does not have any policy to share its profit with employee.

Gain Sharing
It is the third type of variable pay plan. This is a formula based group incentive plan.
Improvement in group productivity from one period to another determines the total
amount of money that is to be allocated. The amount that is to be allocated to a group for
its production can be split among the members in various ways, but mostly the 50-50 is
36

being used. In contrast to profit sharing plan, In gain sharing plan compensation depends
on productivity rather than on profitability. It is an important tool for improving
production. The important characteristic of gain sharing plan is that employees can
receive incentive even when the company is not gaining profits or in profitable condition
(P. Robbins, 2003).
ABN AMRO doesnt have any gain sharing program for there employee. Even if group of
employee work hard and save ABN resources still then wont have share in that gain, they
only get bonus on the bases of performance appraisal.

Skill Based Pay System

In this pay plan, compensation is based on how many skill employees have or how many
jobs they can do. It encourages employees to get more range of skills in order to perform
a variety of tasks. From management point of view it is also perceived as beneficial
because it allows the management to hire the people who have more skills according to
the tasks and jobs within the organization, it allow employers to cut their labour force by
reducing the employees and hiring those who have multiple skills. It leads to performance
improvement (P. Robbins, 2003).
ABN AMRO do have skill base pay system, they pay employee according to their skills
but at some extent. Like VP salary is form 70K to 90K then skill base program for VP
will be between 70K and 90K not above that.

Quality Circle
Quality circle basically is the part of employee involvement program. In this program, a
work group of employees who meet regularly to discuss their quality problems,
investigate causes, recommend solutions, and take corrective actions. For instance, a
group of 8 members including one supervisor meet regularly over a period of time,
discuss their problems, recommend the solutions, and try to solve those problems and
provide feed back. Typically they have the responsibility for solving quality problems and
evaluate their own feedback. But management holds the final decision. It is presumed
that lower level of employees inherently have lack of ability to take corrective decision
(P. Robbins, 2003).
They do have Quality Circle but not on regular base and this program is conducted by HR
by departments like compliance, supervisors and Audit people can also join Quality
Circle periodically.

37

Stock Option
It is also the part of employee involvement program. In this plan, Employees acquire
stock as part of their benefits. Basically it is a type of Employee stockowner ship plans.
In a typical Stock Option plan, an employee stock ownership trust is created. Companies
contribute either stock or cash to buy stock for the trust and allocate the stock to the
employees. While employees hold stock in their company, they usually cannot take
physical possession of their shares or sell them as long they are still employed at the
company. The study shows that it increases the employee satisfaction but the impact on
the performance is less clear (P. Robbins, 2003).
Recently the ABN AMRO has offered stock options for the star performers but the same
was limited mainly to the senior management with few exceptions at lower level

Motivating Diversified Workforce

The concept that organizations are becoming more heterogeneous in terms of gender,
race, ethnicity and inclusion of other diverse groups. Multinational or global companies
usually retain employees from different cultures and countries. This difference in
background some times create problem for the management as how to deal with a
diversified group of employees.
It is presumed that not everyone is necessary to motivate by mean of money. People from
different cultures countries and back ground are different from their needs. Now if u
wants to increase motivation in your employees that mean u are grappling with a diverse
type of group (P. Robbins, 2003).
ABN AMRO use all those techniques to motivate employee which are acceptable by
employee. They use different techniques for diversified workforce. But before
implementing that technique ABN AMRO double check whether that technique is
accepted in culture or not.

Punishment
Punishment is causing an unpleasant condition in an attempt to eliminate an undesirable
behavior. Giving an employee a two days suspension from work without pay for showing
up drunk is an example of punishment (P. Robbins, 2003).
ABN AMRO usually not use punishment unless until some serious action has made by
employee.

38

Positive Reinforcement
Following a response with something pleasant is called positive reinforcement. This word
describes, for instance, the boss who praises an employee for a job well done (P. Robbins,
2003).
ABN AMRO usually use positive reinforcement for their employee so that their
motivation level will maintain high to achieve organization goals.

Negative Reinforcement
It is the opposite to positive reinforcement. Following a response by the termination or
withdrawal of something unpleasant is called negative reinforcement. For instance, if
your college instructor asks a question and you dont know the answer, looking through
your lecture notes is likely to preclude your being called on. This is a negative
reinforcement because you have learned that looking busily through your notes prevents
the instructor from calling on you (P. Robbins, 2003).
ABN AMRO doesnt apply negative reinforcement usually.

Equity Theory
Individuals compare their job inputs and outcomes with those of others and then respond
to eliminate any inequities. Employees might compare themselves to friends, neighbor,
co-worker, or colleagues in other organization or compare their present job with past jobs
they themselves have had. Employees can perceive their awards for their efforts or their
input by the following means
Self inside: An employees experience in a different position inside his or her current
organization.
Self Outside: An employees experience in a situation or position outside his or her
current Job.
Other Inside: Another individual or group of individuals inside the employees
organization.
Other Inside: Another individual or group of individuals outside the employees
organization (P. Robbins, 2003).
If we apply equity theory then ABN AMRO employees are getting salary more then
market situation. (75 Percentile to 90 Percentile employee market is covered by ABN.

39

ABN compensation plan captures the market Means 75% t0 90% top most persons are
hired by ABN and they are getting more salary due to their expertise).

Motivating Contingent Workforce

According to a study, one of the more comprehensive changes taking place in
organizations is the addition of temporary or contingent employees. As downsizing has
eliminated millions of permanents jobs, an increasing number of new openings are for
nonpermanent workers. For instance, approximately six millions Americans, or 4.9
percent of those with jobs consider themselves to be part of the contingent workforce.
These includes part timers, on call workers, short terms hires, temps, day labourers,
independent contractors, and leased worker. Usually such kind of workers doesnt have
the security or stability about their jobs that permanent workers have. Temporary workers
are usually provided a little or no health care, pensions, or other similar benefits that
other permanents employees have. In short contingent employees are those employees
who are hired on temporary basis. So motivating them is a big problem (P. Robbins,
2003).
In order to motivate its contingent work force i.e. those who are hired on contract basis or
temporary basis there is no specific motivational technique used by ABN AMRO, even
they dont consider temporary workers as a part of ABN AMRO.

40

Chapter 4
Concluding Remarks

41

1. Observation.
2. Gaps At ABN AMRO.
3. Conclusion.

42

OBSERVATION
It is important to mention that in Pakistan earning your bread and butter is itself enough.
Getting a job in an international organization is also considered as a motivational factor.
By taking in accounts all these culture factors we observed that how the organization is
being responded to motivate its employee.
After visiting the organization and asking the question we came to know that to some
extent the motivational techniques, which have been mentioned in the book, are being
followed. Now we were in the position to compare the strategies, which are being used
by ABN AMRO to the strategies, which has been mentioned in the book.
Usually organization has different criteria and techniques for employees having different
designations. Like for its top management they offer stock option plan in order to
motivate them. So, we also wanted to see that whether organization offer stock option to
its top management or not. We came to know that there is a stock option, which is being
implemented but only for executives.
Beside of these monetary rewards the organization also has some non-monetary
motivational techniques. ABN AMRO arranges parties for its employees arrange concerts
and give them the cell- phones. Now as far as the bookish techniques are concerned, not
all but some of them are being followed. To some extent they use MBO program but not
completely. But it is confined to the non-decisional tasks only. Employees are not
encouraged to participate in decision making completely. Then there is no gain sharing
and profit sharing plan as mentioned in the book.
ABN AMRO also has some motivational plans for those employees who are transferred
to another city. Like if they have children then organization pays the admission fees in
order to get their children admitted in the school.
We came to know that if an employee violates the rules and regulation of the organization
then positive reinforcement is used. But if that particular employee keeps on creating
disturbance then he or she is dismissed.
The rewards and benefits that are given to the employees in order to motivate them are
obtained by mean of performance appraisal. After appraising its employees the
organization decides to what level the rewards should be given in order to motivate its
employees. That means in ABN AMRO motivation is depends upon the performance of
employees. If he or she is performing well then the rewards are given other wise not.
On the bases of our observation and research we had made the following diagrams which
shows link between motivation and the factors which increase or decrease motivation of
employee at ABN AMRO.

43

The dependent variable 3is motivation, which is the variable of primary interest in which
the variance is attempted to be explained by independent variables of different
components of compensation like (1) Direct and indirect compensation (2) Training and
education (3) Employee satisfaction (4) Performance appraisal.
Direct & Indirect
Compensation

Training &
Education
Motivation
Employee
Satisfaction

Performance
Appraisals

Independent Variables

Dependent Variables

The greater is the amount of compensation package quantity (pay, bonus, reward etc) the
greater is the motivation and if less the compensation package quantity is the lesser the
motivation will be. So we can say compensation and motivation are directly related. For
example whenever the demotivation is observed the better relationship between
compensation and motivation is unlikely. Each employee will loose its motivational spirit
and will be working just to survive in the society and it will loose her large picture of
mind creativity and organizational citizenship behavior. Its a core idea of business world
that to attain high motivational employees you have to pay high compensation packages.
We can say if better compensation then more motivation level among employees. The
more perks and benefits employee get the more motivation level will increase.
Direct & Indirect
Compensation
Independent Variable

Motivation
Dependent Variable

The other major source to achieve motivation is to train and educate the employees. A
better training program makes the employee capable of performing the organizational
operations in better efficient and less time spending and improved productivity.
3

Dependent variable is primary interest of the researcher.

44

Cooperative workers companions can also better help each other by telling the skill of
each others interest. Managerial policies also help the employees to work in a better
environment. Managers can very easily help to reduce boredom of work in employees by
encouraging employees better interrelationship. The more employee trained more
employee will motivated, because when employee will get skill enhancement then it will
also increase his salary or benefits.

Training &
Education

Independent Variable

Motivation

Dependent Variable

The other independent variable 4is employee satisfaction. The more employees satisfied
the more he motivates. Or in other words the more you compensate employee more your
employee will satisfy.

Employee
Satisfaction

Independent Variable

Motivation

Dependent Variable

Performance appraisal can also increase the motivation level of employees. When we do
appraisals then we tell employee he is better in such field due to which he will get such
benefits which will he will going to get. It is also possible that appraisal can demotivate
employee.
Performance
Appraisals

Independent Variable

Motivation

Dependent Variable

The moderating variable5 in this research are companys compensation policies and
companys budget. If company policy is positive towards employee compensation
program then there will be more motivation otherwise it will decrease the motivation
level of employee. In other words it can disturb the relation ship between employee
4

Independent variable is the variable, which have effect on dependent variable.

Moderating variable is the third party variable, which effect on the relationship between dependent and
independent variable.
5

45

compensation and motivation. Other moderating variable is companys budget, if

company have large budget then it will give more compensation, which will increase the
motivation level.

Direct & Indirect

Compensation

Motivation

Company
Compensatio
n Policy

Independent Variable
Variable

Company
Budget

Moderating Variables

Dependent

Intervening variable6 in this research is participative management. Due to participative

management employer will know how employee wants to be compensated and employee
will know how his employer can compensate them. This thing will increase the
motivation level by supporting the employee compensation program.

Direct &
Indirect
Compensati
on

Independent Variable
Variable

Participative
Management

Intervening Variable

Motivation

Dependent

If more direct and indirect compensation then more motivation level among
employees.

Intervening variable is the supplementary to dependent variable.

46

 If more training and education provided to employees then more motivation

among employees.
If more employee satisfaction then more motivation.
If performance appraisal then motivation.
Indirect variables
Direct & Indirect
Compensation

Intervening variable
Participative
Management

Training &
Education
Motivation
Employee
Satisfaction

Direct Variable

Performance
Appraisals

Company
Compensatio
n Policy

Company
Budget

Moderating variables

47

GAPS AT ABN AMRO

They are not implementing Management By Objective program.

ABN AMRO doesnt share its profit with its employees.

There is no concept of Gain sharing in ABN AMRO.

There no flexible working conditions for all employee except females in certain
conditions.

ABN AMRO doesnt have refined techniques to motivate diversifies workforce.

There is no or very less motivation for contingent workforce.

There are not major program for employee children education.

There is not special program for working parents.

CONCLUSION
ABN AMRO is one of the prominent international organization. It is basically a services
providing organization, which follows international standards to motivate its employees.
Employees are the back boon of any organization. To get better performance, employees
should be motivated in the form of monetary and non-monetary rewards like employee
recognition program, employee involvement program, MBO plan, profit sharing plan,
gain sharing, and stock option etc.
Beside of its own motivational techniques ABN AMRO should follow not all but some of
the motivational techniques, which have been mentioned in chapter 3 under Key Issues.
The motivational factors which are not being implemented so far are MBO (Management
by objective), profit sharing, gain sharing, Involvement of employees in decision making,
and motivating employees by flexible time hours.
Working environment of ABN is very friendly i.e. very helpful to motivate the lower and
middle employees. But they are not allowed to participate in decision-making. It may
demotivate the employees especially when they see other organization where
participation in decision is encouraged.
In the end, If you dont take care of your employee then other will do.

48

REFERENCES

49

Organization Behaviour 10th Edition.

By: Stephen P. Robbins

Effective Business Communication 7th Edition.

By: Herta A. Murphy.
Herbert W. Hilderbrandt.
Jane P. Thomas.

Source:_http://humanresources.about.com/od/motivationsucces3/a/lead_motivati
on.htm

50

Appendix-A
Articles

51

You Can Make Their Day: Ten Tips for the Leader About Employee Motivation
From Susan M. Heathfield,
Your Guide to Human Resources.
Source http://humanresources.about.com/od/motivationsucces3/a/lead_motivation.htm
You can make their day or break their day. Your choice. No kidding. Other than the
decisions individuals make on their own about liking their work, you are the most
powerful factor in employee motivation and morale.
As a manager or supervisor, your impact on employee motivation is immeasurable. By
your words, your body language, and the expression on your face, as a manager,
supervisor, or leader, you telegraph your opinion of their value to the people you employ.
Feeling valued by their supervisor in the workplace is key to high employee motivation
and morale. Feeling valued ranks right up there for most people with liking the work,
competitive pay, opportunities for training and advancement, and feeling "in" on the
latest news.
Building high employee motivation and morale is both challenging and yet supremely
simple. Building high employee motivation and morale requires that you pay attention
every day to profoundly meaningful aspects of your impact on life at work.
Your Arrival at Work Sets the Employee Motivation Tone for the Day
Picture Mr. Stressed-Out and Grumpy. He arrives at work with a frown on his face. His
body language telegraphs "over-worked" and unhappy. He moves slowly and treats the
first person who approaches him abruptly. It takes only a few minutes for the entire
workplace to get the word. Stay away from Mr. Stressed-Out and Grumpy if you know
what's good for you this morning.
Your arrival and the first moments you spend with staff each day have an immeasurable
impact on positive employee motivation and morale. Start the day right. Smile. Walk tall
and confidently. Walk around your workplace and greet people. Share the goals and
expectations for the day. Let the staff know that today is going to be a great day. It starts
with you. You can make their day.
Use Simple, Powerful Words for Employee Motivation
Sometimes in my work, I get gifts. I recently interviewed an experienced supervisor for a
position open at a client company. She indicated that she was popular with the people at
her former company as evidenced by employees wanting to work on her shift.
Responding to my question, she said that part of her success was that she liked and
appreciated people. She sent the right message. She also uses simple, powerful,
motivational words to demonstrate she values people. She says "please" and "thank you"
and "you're doing a good job." How often do you take the time to use these simple,
powerful words, and others like them, in your interaction with staff? You can make their
day.
For Employee Motivation, Make Sure People Know What You Expect
In the best book I've read on the subject, Why Employees Don't Do What They're
Supposed to Do and What to Do about It Compare Prices, by Ferdinand Fournies, setting
clear expectations is often a supervisor's first failure. Supervisors think they have clearly
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stated work objectives, numbers needed, report deadlines and requirements, but the
employee received a different message.
Or, the requirements change in the middle of the day, job, or project. While the new
expectations are communicated - usually poorly - the reason for the change or the context
for the change is rarely discussed. This causes staff members to think that the company
leaders don't know what they are doing. This is hardly a confidence, morale-building
feeling.
This is bad news for employee motivation and morale. Make sure you get feedback from
the employee so you know he understands what you need. Share the goals and reasons for
doing the task or project. In a manufacturing environment, don't emphasize just numbers
if you want a quality product finished quickly. If you must make a change midway
through a task or a project, tell the staff why the change is needed; tell them everything
you know. You can make their day.
Provide Regular Feedback for Employee Motivation
When I poll supervisors, the motivation and morale builder they identify first is knowing
how they are doing at work. Your staff members need the same information. They want to
know when they have done a project well and when you are disappointed in their results.
They need this information as soon as possible following the event.
They need to work with you to make sure they produce a positive outcome the next time.
Set up a daily or weekly schedule and make sure feedback happens. You'll be surprised
how effective this tool can be in building employee motivation and morale. You can make
their day.
People Need Positive and Not So Positive Consequences
Hand-in-hand with regular feedback, employees need rewards and recognition for
positive contributions. One of my clients has started a "thank you" process in which
supervisors are recognizing employees with personally written thank you cards and a
small gift for work that is above and beyond expectations.
Employees need a fair, consistently administered progressive disciplinary system for
when they fail to perform effectively. The motivation and morale of your bestcontributing employees is at stake. Nothing hurts positive motivation and morale more
quickly than unaddressed problems, or problems addressed inconsistently.
What about supervisory discretion, you are probably thinking.
I'm all for supervisory discretion, but only when it is consistent. People need to know
what they can expect from you. In employee relations, an apt statement is: "Fool me
once, shame on you. Fool me twice, shame on me." (attribution unknown) You can make
their day.
It Ain't Magic. It's Discipline.
Supervisors frequently ask, "How do I motivate employees?" It's one of the most
common questions I am asked. Wrong question. Ask instead, "How do I create a work
environment in which individual employees choose to be motivated about work goals and
activities?"

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That question I can answer. The right answer is that, generally, you know what you
should do; you know what motivates you. You just do not consistently, in a disciplined
manner, adhere to what you know about employee motivation.
The ten tips, outlined in this article, are the keys to supervisory success in creating
positive employee motivation and morale. The challenge is to incorporate them into your
skill set and do them consistently - every day. Author, Jim Collins identified disciplined
people doing disciplined things every day as one of the hallmarks of companies that went
from Good to Great: Why Some Companies Make the Leap... And Others Don't Compare
Prices. You can make their day.
Continue Learning and Trying Out New Ideas for Employee Motivation
Use whatever access you have to education and training. You may have an internal trainer
or you can seek classes from an outside consultant, a training company, or a college or
university. If your company offers an educational assistance plan, use all of it.
If not, start talking with your Human Resources professionals about creating one. The
ability to continuously learn is what will keep you moving in your career and through all
the changes I expect we'll see in the next decade.
Minimally, you will want to learn the roles and responsibilities of supervisors and
managers and how to:
provide feedback,
provide praise and recognition,
provide proper progressive discipline,
give instructions,
interview and hire superior employees,
delegate tasks and projects,
listen actively and deeply,
write records, letters, file notations, and performance evaluations,
make presentations,
manage time,
plan and execute projects,
problem solve and follow up for continuous improvement,
make decisions,
manage meetings, and
build empowered teams and individuals in a teamwork environment.
What does all this have to do with employee motivation, you may ask? Everything. The
more comfortable and confident you are about these work competencies, the more time,
energy, and ability you have to devote to spending time with staff and creating a
motivating work environment. You can make their day
Make Time for People for Employee Motivation
Spend time daily with each person you supervise. Managers might aim for an hour a
week with each of their direct reports. Many studies indicate that a key employee work
motivation factor is spending positive interaction time with the supervisor. Schedule
quarterly performance development meetings on a public calendar so people can see
when they can expect some quality time and attention from you. You can make their year.
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Focus on the Development of People for Employee Motivation

Most people want to learn and grow their skills at work. No matter their reason: a
promotion, different work, a new position or a leadership role, employees appreciate your
help.
Talk about changes they want to make to their jobs to better serve their customers.
Encourage experimentation and taking reasonable risk to develop employee skills. Get to
know them personally. Ask what motivates them. Ask what career objectives they have
and are aiming to achieve. Make a performance development plan with each person and
make sure you help them carry out the plan. The quarterly performance development
meeting is your opportunity to formalize plans for people. You can make their career.
Share the Goals and the Context: Communicate for Employee Motivation
People expect you to know the goals and share the direction in which your work group is
heading. The more you can tell them about why an event is happening, the better.
Prepare staff in advance if visitors or customers will come to your workplace. Hold
regular meetings to share information, gain ideas for improvement, and train new
policies. Hold focus groups to gather input before implementing policies that affect
employees. Promote problem solving and process improvement teams.
Above all else, to effectively lead a work group, department, or unit, you must take
responsibility for your actions, the actions of the people you lead, and the
accomplishment of the goals that are yours.
If you are unhappy with the caliber of the people you are hiring, whose responsibility is
that? If you are unhappy about the training people in your work group are receiving,
whose responsibility is that? If you are tired of sales and accounting changing your goals,
schedule, and direction, whose responsibility is that?
If you step up to the wire, people will respect you and follow you. You are creating a
work environment in which people will choose motivation. It does start with you. You
can make their whole experience with your company.

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The More You Believe In Others,

The More They'll Do To Prove You Right.
By: Dr. Alan Zimmerman
Motivation:
At a recent sales conference, achievement awards were being given to the people who
had sold the most. I'll never forget the woman who received the highest award. She had
performed superbly, made a great deal of money, but gave all the credit to her sales
manager.
As she stood before the crowd of 3000 people, clutching her award as the top producer of
the year, she talked about the slump she was in two years before. She said her future had
looked so bleak that she had decided to quit on several occasions. But each time her
manager persuaded her to stay. He kept telling her that she had great potential; indeed, he
wouldn't have hired her if he hadn't believed in her.
The award winner continued her acceptance speech along those lines, but her concluding
comment was most insightful. She said, "Through all those months when I wanted to
quit, when I didn't think I had any future, my manager BELIEVED in me more than I
believed in myself. He wanted me to succeed even more than I did. "
Just like that top performer, everyone has a deep reservoir of ability, a reservoir that goes
untapped until someone believes in him. Quite simply, A PERSON DOES HIS BEST
WHEN HE KNOWS SOMEONE BELIEVES IN HIM, AND HE DOES HIS WORST
WHEN HE THINKS NO ONE BELIEVES IN HIM.
This is a basic truth in motivation. The problem is, most managers and leaders have not
consciously, systematically used this truth to bring out the best in others. They haven't
applied a step-by-step methodology of belief that will produce the results they want. I
wonder why.
I think one of the reasons lies in the fact that many people do not understand how
motivation works. They mistakenly think "no news is good news. "In other words, if the
manager doesn't say anything to the employee, the employee can assume that everything
is okay. The employee can assume that the manager believes in the employee.
Well managers can think that all they want, but that's not how employees think.
Managerial silence or a lack of feedback does not get interpreted by the employees as a
sign of positive belief. Employees interpret silence as a negative.
The no-news-is-good-news philosophy simply doesn't work. Even though the employee
may know he has talent or has done a good job, he needs to know that the manager also
believes that.
The second reason people don't use the power of belief has to do with a misunderstanding
of management. Some managers think it's their duty to point out employee mistakes and
suggest solutions. They adopt a problem- solving mindset and spend most of their time
fighting fires, resolving difficulties, and fixing crises.
As a result, these managers are so busy with the problems that they forget to exhibit their
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belief in their employees. They spend all their time seeing their employees "as they are"
instead of envisioning them "as they could be. "
This approach to management or leadership is half-baked at best. Certainly employees
need guidelines. They need help with problems and limits on their empowerment. But the
transformational leadership that brings out the best in others comes from a strong belief
in the employee.
IF YOU'RE A LEADER OR MANAGER WHO DOESN'T "EXHIBIT" A STRONG
BELIEF IN YOUR EMPLOYEES, YOU'RE PAYING A MIGHTY BIG PRICE FOR
YOUR MISTAKE. At the very least, you're creating non-communicative employees.
When employees think you don't believe in them, they get fearful. And fearful people
don't speak up or offer an opinion. They're too afraid to disagree, and they're unwilling to
participate in team meetings. Their thoughts and feelings, if they ever do come out, come
out behind your back where they do you no good whatsoever.
That's an obvious waste of employee insight and talent. You're losing their contributions
to any improvements you might want to make.
You also create demoralized employees when you fail to "exhibit" your belief in them.
The Russian military learned that after the Russian Revolution of 1917.
Their official communist policy became that of showing no overt signs of believing in the
officers. All status signs were taken away. The officers swabbed their own quarters, ate
with the rank and file, stood in line with the orderlies, received no privileges, salutes, or
titles.
Overnight the military sank to its lowest level in military history. The officers were
completely demoralized. They were worthless as soldiers to say nothing of their
leadership. It soon became obvious what had happened, and Russia began to show overt
belief in its officers. Medals, trophies, and titles were used generously to give distinction
to all segments of the army.
Russia had overlooked one glaring, compelling fact in human behavior. To get the best
from people, you must show that you believe in them. People will work harder for
someone who believes in them than they will for almost anything else.
Belief costs nothing to apply and works wonders. So start BELIEVING.
Action on Motivation:
Select three people you want to "motivate" to higher levels of achievement. They may be
your employees, your coworkers, or even your kids. Think of three ways you can
communicate or "exhibit" your belief in each of them. Then do it. They'll get turned on,
and they'll turn out better results.

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Team Motivation
by Peter Grazier

Motivation. We hear the term often. Generally we associate the word with human behavior,
meaning, a state of mind that moves us to action. And even though few of us have had formal
training in it, its one of those characteristics of life that seems to fit the old adage, I know it when
I see it.
For most of my years working in the field of workplace collaboration, this word has held a place of
stature and importance, because it has been, perhaps, the most significant outcome of worker
involvement. As the collaboration trend, and more specifically, the use of employee teams
continues to grow, one question that is taking on greater importance is how to keep the team
motivated over the long haul.
What are the ingredients or characteristics of teams that seem to sustain high levels of
motivation?
I posed this question to a group of people recently and found that it tapped into some deeply held
beliefs about what makes us do what we do. So for those of you working with teams, here are
some thoughts that might help:
What Makes Us Do Anything?
Probably the first question to be answered in a discussion of motivation is What makes us do
anything? Why am I writing this article? Why are you reading it? Why did you get out of bed
today and go to work? Why did you join that volunteer organization last month? Why did you drop
out of the other one?
Each day brings with it an endless list of decisions to be made. The process of making those
decisions is driven, in large part, by the hope of a benefit or the fear of a consequence.
For example, I truly enjoy coffee and donuts from Dunkin Donuts. I pay them money for the
benefit of enjoying the taste and filling a void in my stomach. However, I limit my intake of these
donuts for fear of the consequences of too much sugar and fat in my diet.
Literally, every decision we make is filtered through this process. The industrial psychologists
have taken this further by defining these consequences as needs. Our needs for sustenance,
safety, security, belonging, recognition, and a sense of growth and achievement become
strong drivers (motivators) of behavior.
The subject of motivation is, at once, simple and complex. Simple, in that it explains much of what
we see happening in human behavior, yet complex when it poses contradictions.
For example, the need to nourish ourselves is strong, and hunger will drive us to extreme actions,
particularly in the case of extreme hunger. However, how does one explain a hunger strike? How
can you explain the actions of someone who has died because they chose not to eat? The
psychologists will say that a higher level need took over....perhaps the need to make a point
about an issue that, to the person, was larger than life itself.
So as we attempt to understand motivation, we need to appreciate the subtleties that exist in
human behavior, and focus our attention on general principles of motivation that have wider
application. At least if we can understand some of these principles, we might be better prepared
to lead or facilitate a long-term, highly motivating team experience.

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Why Be Part Of A Team?

Youve been asked to participate on a team to accomplish some task. Immediately your decisionmaking process begins.

What is the purpose of the team?

Is it a topic that interests me?
Who will be on the team with me?
What kind of authority will we have?
Is it important to management?
What is the reward for participating?
What is the risk (perceived as punishment) for not participating?
How long will it run?
Will I be better off as a result of my participation?

These are some of the questions we ask ourselves when faced with an invitation to participate in
some kind of team. Are they typical questions?...of course. Do they relate to our motivation to
participate?... certainly.
Sometimes, however, we are not given the opportunity to refuse participation on a team: for
example, a work group or an organization that has restructured itself into self-directed work
teams. In these cases, by default, we are part of the group or team.
Nevertheless, in either case, motivation can rise or fall depending on a myriad of factors. Lets
look at some of them.

Factors That Influence Team Motivation

I. Purpose
I have asked people for years to describe the characteristics of their most successful and
rewarding team experiences. At the top of almost everyones list is a clear purpose, focus, or
mission. But further, for long-term motivation, it must be a purpose or mission that they find aligns
with their personal wants and needs.
One can be asked to participate on a temporary task force. If the mission is clear, he might be
able to sustain motivation for the duration if he feels it is important. However, if it is a topic that is
not in line with his wants and needs, his motivation to continue may diminish.
Many years ago on a construction project, I had assembled a group of electricians to streamline
the process of making cable terminations. Since they were all electricians, I thought there would
be great interest in working on a process that was frustrating people the way it was designed.
About a month into the groups work, they were having great difficulty maintaining momentum and
focus. When I asked them why, they said that some of the electricians were conduit specialists
and some were cable tray specialists, and that those not working directly with the cable
terminations simply couldnt get interested in the subject. What a lesson for me! Motivation in
this case was lacking because the teams purpose was not in line with some of the
members wants and needs.
So one strategy with a lethargic team might be to stop the process, re-visit the teams purpose or
mission, and see if theres alignment on it. Even with a team that seems well-motivated, it still is a
good strategy to recheck once in a while.

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II. Challenge
Another term that I hear frequently when I ask about team motivation is challenge. The human
species, as with most animals, has been given a survival mechanism called fight or flight
syndrome. When presented with a challenge, our defenses are alerted to move us to action....to
run away from danger or address it directly.
Many people will say that their most rewarding team experiences resulted from some sort of
challenge. Ive heard the stories often of mediocre groups that responded to a challenge with
heroic success. The challenge itself was the motivator.
In the workplace, these challenges occur infrequently. Teams are not presented with stimulating
challenges every day. So the question becomes how to provide challenges to the team at more
frequent intervals.
An additional criteria for a challenge is the level of difficulty. If a challenge is too difficult,
perhaps perceived as impossible, then team members may give up before they start. However,
the same result may occur if the members perceive the challenge as too easy. Little energy is
required to accomplish something so easily obtained.
So for ongoing teams, periodic stimulation in the form of a worthy challenge is another method of
maintaining motivation.
In 1983, I was managing a work group for a large construction organization. It was a long-term
project (10 years), and senior management had discussed conducting an open house for the
workforce. Management, however, had always nixed the idea--fearing the difficulty of coordinating
an event that would encompass seven thousand workers and their families.
My work group heard about the idea, however, and asked to take on this assignment. There was
enormous interest in conducting this event within the workforce, so with much support, my group
planned and successfully coordinated an open house that ultimately attracted over 10,000
people.
The challenge for my group was enormous....but achievable. The challenge created high levels of
motivation while planning the event; and the sense of accomplishment after the event sustained
motivation even longer.
I dont suggest by this example, that every work group take on such a formidable task, but
simply think about the implications of taking on a new challenge periodically.
III. Camaraderie
Seldom, if ever, in our MBA programs (which purport to be leadership development programs)
have we seen courses of study in team development and motivation. That is changing now and
will continue to change in the future.
If one studies highly effective groups, one finds that the most successful groups over the long
haul tend to address both the technical needs and human needs. These groups are at the same
time competent in the work they perform and highly functional in their interpersonal relationships.
The group is well balanced in both technical and human skills.
Another factor that emerges from my queries about successful teams is camaraderie, meaning
comradeship, fellowship, and loyalty. The people on these teams genuinely like each other and
work hard to develop and maintain their relationships.

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Although they are probably not aware that research supports this behavior, they just seem to
understand that its a lot easier to support your team member when you have a good relationship.
The fallout from this kind of relationship building is open and direct communication,
frequent praising of each others contributions, and mutual support.
So, you will say, that is all well and good for teams whose members like each other, but what if
they dont like each other?
Much of the time we like or dislike someone, it relates more to how well we understand them. And
since our formal training has not addressed this, most of us enter adulthood ill-equipped to deal
with the myriad of personalities, temperaments, cultures, values, beliefs, ideologies, religions, and
idiosyncratic behaviors of those we meet.
One way to break down these barriers is to expand ones understanding of his own species.
Training is available to address most of the topics above, and exercises can be beneficial if they
move us to another level of understanding.
But dont overlook the simple solutions. Designing an off-site activity for the team, sometimes
just to play together, is a powerful way of building camaraderie.
IV. Responsibility
In general, people and teams are stimulated by being given responsibility. Having ownership of
an identifiable block of work is a long-held tenet of motivation in groups.
Responsibility can be tricky, however. Implied in this concept is the understanding that the
responsibility comes along with authority to make the necessary changes. Teams that have both
the responsibility and authority tend to maintain motivation over longer periods of time.
Responsibility can be demotivating if the consequences of error or failure are too great. If
the organization, for example, has a history of punishing mistakes, then the giving of
responsibility is viewed more as a negative. The short-term performance may be good (remember
fear is a motivator), but long-term motivation will suffer. It is difficult to sustain high performance
when energy is being sapped by fear.
V. Growth
Finally, personal and team growth can provide another basis for sustained motivation. When
people feel they are moving forward, learning new concepts, adding to their skill base, and
stretching their minds, motivation tends to remain high. Personal growth adds value to the
individual, enhancing self-esteem and self-worth.
Accordingly, team members and team leaders should look for opportunities that help add
knowledge and skills. A good technique is to simply ask members what they would like to get
from their association with the team, then listen for areas of possible growth.
VI. Leadership
A good leader can be a catalyst for motivation in the short term, but the best leaders create the
conditions for the team to motivate itself.
We have all seen examples of how leaders inspired teams to accomplish some phenomenal task.
History books and Hollywood are full of these stories, and we come to honor these leaders.

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But the charismatic leader that can be so effective in the short term, cannot necessarily sustain
motivation indefinitely. Motivation is inherently intrinsic, residing within oneself. Therefore, if one
depends continually on another for their source of motivation, eventually it ends.
Great leaders have a knack for helping others see the best in themselves, providing the
stimulus for self-actualizing behaviors.
But great leaders also understand the importance of team purpose, challenge, camaraderie,
responsibility, and growth, and focus much of their time on creating the conditions for
these to exist.
Great leaders understand that their team members have needs, and that for motivation to
grow and continue, the activities of the team must help in some way to meet these needs.

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12 easy ways to motivate your employees

and get the performance you want
By: Alexander Hiam, Author, and Streetwise Motivating and Rewarding
Employees
1. Think about your employees' strengths! Most managers worry about what
their people are doing wrong. A natural concern, but it kicks off a demotivating
spiral. To build motivation, remind yourself what each employee's greatest
strength is.
2. Don't use motivation methods that don't work. When you keep telling
employees what to do and they keep messing up, who's being stupid? Some
might say doing the same thing over and over, when it obviously doesn't work,
isn't too sharp. Yet we often do just that, trying the same supervisory behaviors
over and over and getting more and more frustrated when they don't work.
3. Re-calibrate your motivation scale. We routinely accept mediocre motivation
at work, forgetting that everyone is capable of high motivation levels. By looking
at non-traditional benchmarks, we can re-calibrate our sense of what truly high
motivation is. Sharing this realization throughout the organization helps create a
vision of motivation for everyone to pursue.
How? Ask employees and managers for examples of exceptional motivation.
Seek out and share stories of exceptionally motivated explorers, athletes,
musicians, artists, volunteers, inventors and entrepreneurs. Find out what
activities or pursuits have created maximum motivation in the past for
employees.
4. Teach employees to measure their own success. Employees who keep
track of their performances are able to notice and document their development.
They create their own scoreboards and are able to track their wins more
effectively than any manager.
How? Every performance goal can be reduced to a simple, easy-to-track
measurement. If the goal is not inherently quantitative, create a judgment scale
to rate performance against. Today, only employees operating machinery in
quality- oriented factories track their own performances routinely. Tomorrow,
every employee should be measuring their own success.
5. Measure and track motivation levels. How can you manage something you
don't measure? Yet most organizations and managers have no idea how
motivated their people really are. The typical employee satisfaction poll does not
measure motivation. If you start to measure motivation, you can realistically
expect to learn how to manage it. Without good measures, you'll never get any
better at managing it.
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How? Use a simple, repeatable instrument such as the Job Motivation Level
(JML). Take periodic measures of overall employee motivation. And encourage
supervisors to track motivation within their own spans of control on a routine
basis.
6. Ask employees what they want. Employees are motivated by...what
motivates them! Employees have different goals and desires, and therefore need
different performance and development opportunities. You can't motivate
individuals with generic programs. To maximize motivation ask each employee
what turns them on.
7. Learn to recognize and eliminate threats. Employees often feel that their
managers use threats to try to motivate them, yet managers routinely deny it.
They don't mean to threaten employees, but if that's how it feels to the employee,
then it is a threat and it's damaging to motivation levels. So managers need to
learn to recognize the things that employees see as threats and work on
eliminating or reframing them. Opportunity is an effective motivator. Fear is not.
8. Stop Distracting Employees. Most employees want nothing more than to
focus on doing their jobs better and better. But from their perspective, critical
incidents distract them, leading to worries about communication, security,
fairness, respect and other key job criteria that managers rarely recognize. If you
first take care of employ- ees' most fundamental intangible requirements, you can
then shift the focus from their concerns to your motivation and performance
agenda.
How? Ask employees what bothers or worries them about their work and
workplace.
9. Communicate! Open communication is most employees' #1 priority. And the
majority of employees say their managers don't communicate openly with them.
But a majority of managers say they do. Who's right? Wrong question. If
employees feel you are withholding information they need about their work or
workplace, they will lose motivation and develop resistance to your management.
Time to communicate more openly.
How? Since employees and managers generally see this issue differently, the
simplest fix is to ask employees what they want to know. Ask them one-on-one,
by e- mail, in meetings. Give employees at least one chance a week to ask you
for information. And then give them the information.
10. Ask employees for information about their performance. This method
turns on the power of informative feedback, which is information about how you
are doing. The more information, the more intrinsic motivation. So good
managers try to offer informative feedback. But do you always know the details?

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Probably not. So instead of telling them, ask them for information about their
performance.
11. Explain your reward systems. Arbitrary rewards generate cynicism, not
motivation. Employees feel their managers don't respect them when a new
program is announced out of the blue. They complain that the employer treats
them like children. Show your respect for employees and appreciate their need to
know by informing them fully about any new
12. Carry an idea notebook. What do employees think? Do they have any good
ideas? Who cares! At least, that's the attitude many employees assume their
managers take. Yet most managers wish employees would share more of their
ideas and insights. They just aren't very good at asking. They tend to interrupt or
overrule ideas without really meaning to, accidentally discouraging the very
behaviors they desire.

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Motivational Techniques to enhance

performance
by: Gregory P. Smith

Money may attract employees to the front door, but something else
has to keep them from going out the back. Managing people takes an
entirely different approach than it did just a year ago. Managers and
supervisors must place equal importance on employee development as
they do on guests and customers. Today's workers dont just expect a
paycheck, but good employees also want personal fulfillment and a
sense of accomplishment.
Reward and recognition programs are a vital part of creating a
motivating work environment. A successful reward and recognition
program does not have to be complicated to be effective. A welladministered program allows people to celebrate success, have fun,
and feel good about who they are and whom they work for.
The size of your organization and the age of your workforce dictate
which type of program works best. One organization improved
motivation and almost eliminated turnover by creating a family
environment including special incentives.

Every year employees celebrate their work anniversary with a

cake and receive $100 for each year employed made out in a
check.

Twice a year employees children receive a $50 savings bond

when they bring in their all As report card.
They reward employees with a Safety Bonus Program. Each
employees driving record is screened twice a year. Anyone who
has a citation is removed from the program. Those employees
remaining at the end of the year split $2000.
To minimize the we-they syndrome, every Friday employees
rotate jobs for one hour. For example, the person in the Sales
Department works on the front desk. Someone from
Maintenance will work in the Customer Service etc. This builds a
stronger team and improves communication within the company.

One of the easiest and most effective programs to initiate is peer

recognition. Peer recognition gives employees the power to reward
each other for doing a good job. It works because employees
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themselves know who works hard and deserves recognition. After all,
managers cant be everywhere all the time, and employees are in the
best position to catch people doing the right things.
Queen or King for the Quarter. Dayton Metro Housing created the
QUEST program to reward their workforce for demonstrating good
customer service skills. Each quarter, employees receive three tokens.
When they spot a fellow employee or manager providing good
customer service, they hand them a QUEST token. At the end of the
quarter, the person with the highest number of tokens is crowned king
or queen. Those with eight or more tokens are knighted. All the King,
Queens, and Knights attend a special banquet. At the end of the year
all token winners can use their tokens to bid on various awards and
prizes. Furthermore, the individual with the highest yearly number of
tokens is bequeathed a scepter.
Youre Magnificent! At the MAG Insurance Company they use a form
of recognition called Youre Magnificent! The form is printed in
triplicate and given to all employees to nominate each other for
outstanding behavior. The top copy goes to the recognized employee.
The second copy goes to the employees supervisor. The third copy is
posted for everyone to see on a bulletin board. Once a month they
take the posted copies and randomly draw the names of five
individuals called, Youre Magnificent for $10 gift certificates. Then
three additional Magnificent are drawn each quarter for a $250 gift
certificate.
Safety Bingo. For every accident free day at the Emory Conference
Center Hotel, associates are awarded a bingo number. Each associate
has a card and plays the game. A pot grows at the rate of $1 per day
with a starting amount of $100. The associate who wins at safety
bingo is awarded the cash in the pot. If they go over 100 days without
an accident, it increases by $2 per day. If we have an accident, the pot
falls back down to $100 and it starts over again. If someone wins, the
pot remains at same pay out level, and continues to grow $1 or $2 per
day. This program reduced accidents by 50% each year.
Guess Whose Pet This Is. At Industrial Developments International,
the Esprit Committee organizes fun activities such as the Pet of the
Month contest. A pets picture is put on the bulletin board and they
guess who the owner is.
Shining Stars. Employees are allowed to reward each other and
provided an unlimited supply of Shining Star forms to handwrite notes
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about a coworkers good job. On the back of the form is a list of

behaviors such as:
Demonstrates friendly, caring service
Shows flexibility
Demonstrates teamwork
Helps to save money etc.
Workers hand completed forms directly to coworkers or send it
through interoffice mail. At the end of the month the department holds
a recognition ceremony for everyone recognized. The employee who
received the highest number of forms gets an extra appreciation and a
reward by the director. Then, they place all the months forms into a
basket and they randomly draw out 4-5 forms for additional prizes.
Then the read the forms aloud and provide recognition to both the
awardee as well as the person who submitted the form.
In its Thank You Coupon program, the Texas Credit Union gives each
employee seven coupons a year to give to any employees they wish to
recognize for going out of their way to help customers or fellow
employees. The coupons are redeemed for $10 certificates for food,
movies, golf, and the like. Everyone in the company, from the
president and vice presidents down, is eligible for a coupon.
A work environment that attracts, keeps, and motivates its workforce
is one that gives workers a sense of pride, accomplishment, and
purpose in what they do. These informal programs provide an effective
strategy for motivating employees and they are simple to administer.
They do not cost much, do not take much time, and do not complicate
the payroll. Instead of providing cash incentives, you can substitute by
providing winners with extra breaks, movie tickets, time off, t-shirts,
and other small gifts.

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Appendix-B
Questioner

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ABN AMRO MOTIVATION FOR STAFF

Interviewee
Designation
Branch
Date

Zaffar Niazi and Abdul Aleem Querishe

Admin Head, Property Service Head
ABN F-7 Markaz Branch
05th December, 2006

1. How many branches of ABN are there in Pakistan and how many staff?
Total 12 branches in Pakistan.
Around 450 permanent employees.
Around 1500 contractual employees.
2. At what grade new hires are recruited?
New entrant is hired as Supervisor.

3. At what position you hire new entrants (MTO)?

They are hired through program Management Associates (MAs).

4. How many months training given to new entrants?

One year training is given to MAs.

5. Grading structure?
Supervisor to Officer, Officer to Senior Officer, Senior Officers to Asst. Manager,
Asst. Manager to Manager, Manager to AVP, AVP to VP, VP to SVP-1, SVP-1 to
SVP-2, SVP-2 to SEVP
6. Does ABN hire people beyond the grading scale if yes then in what
circumstances?
ABN Amro do Hiring normally from MAs but in special circumstances the do
beyond the grading scale on the bases of experience for the specialized field.
__________________________________________________________________
__________________________________________________________________

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7. What are the various benefits perks and allowances in addition to the basic
salary?
House Rent = 35% of basic
Utility = 10%

8. Salary package consists of what components?

Allowances
Deductions (Eg: Provident fund, EOBI, Loan etc)

9. What are the other allowances and perks included in the salary?
House Loan, car loans, Mobile phone credit, Bonus, Eid allowance etc, fule
allowance.

10. From what grade and what amount of fuel allowance is given to your
employees?
Manager and above.
Manager 100 liters, AVP 175 liters, VP 225 liters, SVP-1 275 liters, SVP-2 325
liters, SEVP 375 liters.
11. From what grade and what type of car provided to your employees?
Company maintained car is provided to AVP and above employees.
AVP is given 1300 CC car, VP 1500 cc car, SVP-1 1600 cc car, and SVP-2 1800
cc, SEVP have option to buy 1 or 2 cars with 4 million range.
12. What things are included in vehicle maintenance allowance?
Nothing, because car is fully maintained by the company.

13. What is the amount of vehicle maintenance allowance per month?

Car is fully maintained bye the company.

14. What is the amount of medical expenses reimbursement per month?

450K per confinement (90 days payment up to 450000 Rs for single disease).
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15. Is there any insurance company involve for the employee hospitalization and
reimbursement of expense?
Yes, ABN employee is insured from different insurance company (EFU, Adamjee,
Commercials Union)
On normal death of employee 48 gross salaries are given to employee family.
On death due to accident then 96 gores salaries are given to employee family.
16. How much %age of provident fund is deducted from employee salary per
month?
10% of basic.

17. What are the bases of bonus and how many times it is given to employee in a
year?
Normally yearly but sometimes quarterly.
Permanent employees gets bonus on the bases of Performance Appraisal.
Contractual employees gets bonus equal to one gross salary.
18. What is the range of bonus?
Depend on performance appraisal.

19. Is there any stock option for employees and what scale it is offered?
Yes, but only for Executive Employees.

20. What are the bases of salary increment and its range?
Salary increment is given basically on yearly bases but sometimes ABN increase
on half yearly bases depends on BODs decision.
Increment is given purely on performance appraisal bases.
__________________________________________________________________
__________________________________________________________________
21. What retirement package and pension plan ABN offers?
Yes, gratuity is given to employee who worked 5 or more than 5 years in ABN
Amro.

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22. How many paid leaves are given to every employee?

Employees are entitled to take 30 paid leaves.

23. Is there any leave fair assistance allowance given to employees?

No, there is not leave assistance allowance given to employees.

24. How many paid sick leaves are allowed?

Employee to take 30 paid sick leaves.

25. How many casual leaves are allowed with payment?

Employees are entitled to take 10 casual leaves.

26. How many Hajj & Umrah leaves allowed in career?

Employees are entitled to take 15 days Hajj/Umrah leaves during career life
cycle.

27. How many marriage leaves are allowed?

ABN employees can take 5 days marriage leaves during career life cycle.

28. Is there any club membership for employees if yes then from what grade and
in what range?
Yes, there is club membership for AVP and above employees.
Islamabad Employee get membership of Islamabad club.
ABN Karachi employees get membership of Creek Club DHA.
29. Air traveling classes for different employees & executives?
Economy class for all ABN Amro employees.

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30. What are the allowances given to employees when they travel out of the city?
Accommodation plus 800 Rs per day.
If not willing to take accommodation then he is given 2000 Rs per day.

31. Does ABN find out employee interest and aims before setting objective for
them (MBO)?
Partially no. ABN have Performance Appraisal Management program on yearly
and half yearly bases and through this program they decide what task will
employees need to do.
32. Is there employee recognition program in ABN, if yes then what are the
different ways of employee recognition (Employee Recognition Program)?
Yes, ABN have different Employee Recognition Programs.
Employee of the month.
Employee of the years.
Best dressed person of the year.
33. Can ABN employee participate in decision making when setting the
organization goals and objectives (Employee Involvement Program)?
Yes, and they have Employee Engagement Service program for this.

34. Does company share its profit with all employees (Profit Sharing Plan)?
No, ABN doesnt share its profit with employee. It only give bonus on
performance appraisal.

35. Is there any group of employees who received salary on the bases of worked
done or number of takes performed (Piece rate pay plan)?
No.

36. If particular group give performance that increases the ABN profit, then
would ABN share that gain with that group (Gain sharing)?
No. Bonus only on performance appraisal.

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37. Does ABN have any skilled bases pay system in order to motivate skillful
employees (Skill based pay system)?
Yes, but with range.
Like for example AVP salary range is 70K to 90K then skilled based pay system is
applicable in with this range
38. Does ABN provided flexible working conditions to its employees?
Yes, but at very minimum level mostly to female employees.

39. What sorts of benefits are being offered by the organization in order to
increase motivation?
Training, rewards, job rotation, Dog training, sending employee out of country,
buy back option.

40. Is there any impact of benefits on employee performance?

Yes, if performance appraisal is positive otherwise employee need training.

41. To what extent the employees are involved with some specific group to
discuss their quality problems, investigate cause, recommend solution and
take corrective actions (Quality Circle)?
HR is usually doing this job on periodic bases.
HR Department, Compliance Department, Supervisors, and Audit Department is
comes in these or of program.
42. How the organization trade demographic challenges (in the workforce)? How
the ABN maintains the level of motivation among its employees who have
different backgrounds (Motivating diversified workforce)?
ABN use all those techniques to motivate employee which are acceptable by
employees.
There use different techniques for different people.
But ABN also check whether technique is accept table in culture or not.
43. What techniques are used by ABN to motivate lower level employees?
Environment, comfortably, caring, friendliness, Rewards.
44. What is the ABN most important and basic tool for motivating its employees?
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ABN Environment its self the main motivator.

45. If any employee violates the rule of organization then what action
management will take (Punishment, Positive reinforcement, Negative
reinforcement)?
Its depend what type of rule he violate he can immediately suspend form the job
also but ABN usually use Positively Reinforcement.

46. Are the employee getting salaries according to the market situation (Equity
theory)?
Yes, employees are getting salary more then market situation.
75 Percentile to 90 Percentile employee market is covered by ABN.
Means 75% t0 90% top most persons are hired by ABN and they are getting more
salary due to their expertise.
47. Is there any difference in motivating permanent employees and contractbased employees (Motivating contingent workforce)?
Contractual employees not come under ABN.

48. At what extent training is given to employees? Is there any skill enhancement
program offered by ABN?
Depends on performance appraisal.

49. Is there any personal assistance to remove employee personal difficulties?

Yes, it is done by HR.

50. Is there any program to facilitate employee family?

Insurance for employee spouse and children.
51. Any program for employee children education?

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Not really, but when employee is relocated then his children education expenses
in new city are covered by ABN Amro.

52. Any special program for working parent employee?

No, but females are allowed to take 90 days leave during their maternity period.

53. Does ABN employee feel easy with their bosses to work?
Usually yes.

54. What are the criteria for employee promotion?

Depends on job requirements, due to enrichment of job.

55. Which thing would you like to add?

ABN arranges Mango party to motivate employees, Picnic, 5 year medal, 10 year
medal.
Relocation Package can also motivate because it offers high salary and bear
employee children new school program expense, provide accommodation rent in
case of package relocation.
Cash rewards, foreign trainings, parties, concerts etc.

Comment:
By: Abdul Aleem Querishe
Interesting and well organized questioner.
Students have shown keen interest in gaining/obtaining information.
ABN-HR Mission is to be Employer if choice

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Appendix-C
Functioning Details

78

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Appendix-D
ABN AMRO History Report

81