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Motivation in an organisation

Riddhimaan Nandgaonkar Ravindra Thakur Pravin Nadar Akshay Jain Rishabh Dwivedi Chirag Mehta Brian Ridley 25/8/2008

Vidyalankar School of Information Technology.

Submitted by: Riddhimaan Nandgaonkar Pravin Nadar Akshay Jain Rishabh Dwivedi Chirag Mehta Brian Ridley Ravindra Thakur Submitted to: Mrs. Leena Nair Date of Submission: 25th August 2008

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Acknowledgement

This Project could not have been written without the help of Mrs. Leena Nair who not only served as our supervisor but also encouraged and challenged us throughout this project. My fellow friends and the other students of our class also guided us through this process, never accepting less than our best efforts. We thank them all.

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Declaration
We the undersigned students of Vidyalankar School of Information Technology Second Year B.M.S have done the project on Motivation in an organisation. The Project submitted is true to the best of our knowledge.

Signatures

Riddhimaan Nandgaonkar (07B431)

Pravin Nadar (07B402)

Akshay Jain (07B418)

Rishabh Dwivedi (07B410)

Chirag Mehta (07B464)

Brian Ridley (07B440)

Ravindra Thakur (07B452)

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Certificate
I Hereby certify the project done by : ________________________________ from Vidyalankar School of Information Technology on the topic of Human Resource Planning and the information submitted is true to best of my knowledge.

_____________ (Project Guide)

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Table of Contents Introduction................................................................................................................ 1 Motivation...................................................................................................................3 Application in business...............................................................................................6 About Aditya Birla Group............................................................................................9 Motivation in Aditya Birla group...............................................................................12 Conclusion................................................................................................................ 20 Bibliography.............................................................................................................21 Webliography........................................................................................................... 22 Annexure.................................................................................................................. 23

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Introduction
Ask any person who is successful in whatever he or she is doing what motivates him/her, and very likely the answer will be "goals". Goal Setting is extremely important to motivation and success. So what motivates you? Why are you in college? If you are in college because that's what your parents want, you may find it difficult to motivate yourself. Sure, it's possible to succeed with someone else providing the motivation for you. ("If you graduate from college, I'll give you a car!" or worse "If you don't graduate from college, you won't get a car.") But motivation that comes from within really makes the difference.

Certainly, you need some intelligence, knowledge base, study skills, and time management skills, but if you don't have motivation, you won't get far. Think about this analogy. You have a car with a full tank of gas, a well-tuned engine, good set of tires, quadraphonic CD system, and a sleek, polished exterior. There it sits. This car has incredible potential. (Have you heard that before?) However, until a driver sits behind the wheel, puts the key in the ignition, and cranks it up, the car doesn't function. You guessed it; the KEY is MOTIVATION.

Interest is an important motivator for a student. So is a desire to learn. When you link these two things together, you create success. Often success in an endeavor leads to more interest and a greater desire to learn, creating an upward spiral of motivation toward a goal you have established.

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So be honest with yourself. Are you genuinely interested in being in college? Have you set realistic goals for yourself? How can you develop the internal motivation that really counts? When it comes to motivation, KNOWING is not as important as DOING.

Motivation is the reason or reasons for engaging in a particular behavior, especially human behavior as studied in economics, psychology and neuropsychology. These reasons may include basic needs such as food or a desired object, hobbies, goal, state of being, or ideal. The motivation for a behavior may also be attributed to less-apparent reasons such as altruism or morality.

As we know in an organisation some goals are set and to reach these goals some or the other type of motivation is always needed. For getting any task done from any employee, be it at the lower level or the superior level, it is necessary. These organisations take efforts to motivate their employees. The more motivated their employees, the better their organisation becomes.

We will be looking at how the Aditya Birla group functions on this point. The company is well respected and has topped numerous polls. One of the main is that it has been ranked as the best employer in India. We will see what makes them the best employer in India and how they motivate their employees.

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Motivation
The following definitions of motivation were gleaned from a variety of psychology textbooks and reflect the general consensus that motivation is an internal state or condition, sometimes described as a need, desire, or want that serves to activate or energize behavior and give it direction. Motivation is* Internal state or condition that activates behavior and gives it direction; * Desire or want that energizes and directs goal-oriented behavior; * Influence of needs and desires on the intensity and direction of behavior. * The arousal, direction, and persistence of behavior. While still not widespread in terms of introductory psychology textbooks, many researchers are now beginning to acknowledge that the factors that energize behavior are likely different from the factors that provide for its persistence.

Since motivation influences productivity, supervisors need to understand what motivates employees to reach peak performance. It is not an easy task to increase employee motivation because employees respond in different ways to their jobs and their organization's practices. Motivation is the set of processes that moves a person toward a goal. Thus, motivated behaviors are voluntary choices controlled by the individual employee. The supervisor (motivator) wants to influence the factors that motivate employees to higher levels of productivity.
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Factors that affect work motivation include individual differences, job characteristics, and organizational practices. Individual differences are the personal needs, values, and attitudes, interests and abilities that people bring to their jobs. Job characteristics are the aspects of the position that determine its limitations and challenges. Organizational practices are the rules, human resources policies, managerial practices, and rewards systems of an organization. Supervisors must consider how these factors interact to affect employee job performance.

Simple Model of Motivation The purpose of behavior is to satisfy needs. A need is anything that is required, desired, or useful. A want is a conscious recognition of a need. A need arises when there is a difference in self-concept (the way I see myself) and perception (the way I see the world around me). The presence of an active need is expressed as an inner state of tension from which the individual seeks relief.

In our research we found out seven rules of motivation, they are as follows:1. Set a major goal, but follow a path. The path has mini goals that go in many directions. When you learn to succeed at mini goals, you will be motivated to challenge grand goals. 2. Finish what you start. A half finished project is of no use to anyone. Quitting is a habit. Develop the habit of finishing self-motivated projects. 3. Socialize with others of similar interest. Mutual support is motivating. We will develop the attitudes of our five best friends. If they are losers,
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we will be a loser. If they are winners, we will be a winner. To be a cowboy we must associate with cowboys. 4. Learn how to learn. Dependency on others for knowledge supports the habit of procrastination. Man has the ability to learn without instructors. In fact, when we learn the art of self-education we will find, if not create, opportunity to find success beyond our wildest dreams. 5. Harmonize natural talent with interest that motivates. Natural talent creates motivation, motivation creates persistence and persistence gets the job done. 6. Increase knowledge of subjects that inspires. The more we know about a subject, the more we want to learn about it. A self-propelled upward spiral develops. 7. Take risk. Failure and bouncing back are elements of motivation. Failure is a learning tool. No one has ever succeeded at anything worthwhile without a string of failures.

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Application in business
At lower levels of Maslow's hierarchy of needs, such as Physiological needs, money is a motivator, however it tends to have a motivating effect on staff that lasts only for a short period (in accordance with Herzberg's two-factor model of motivation). At higher levels of the hierarchy, praise, respect, recognition, empowerment and a sense of belonging are far more powerful motivators than money, as both Abraham Maslow's theory of motivation and Douglas McGregor's Theory X and theory Y (pertaining to the theory of leadership) demonstrate.

Maslow has money at the lowest level of the hierarchy and shows other needs are better motivators to staff. McGregor places money in his Theory X category and feels it is a poor motivator. Praise and recognition are placed in the Theory Y category and are considered stronger motivators than money. * Motivated employees always look for better ways to do a job. * Motivated employees are more quality oriented. * Motivated workers are more productive. The average workplace is about midway between the extremes of high threat and high opportunity. Motivation by threat is a dead-end strategy, and naturally staff is more attracted to the opportunity side of the motivation curve than the threat side.

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The assumptions of Maslow and Herzberg were challenged by a classic study at Vauxhall Motors' UK manufacturing plant. This introduced the concept of orientation to work and distinguished three main orientations: instrumental (where work is a means to an end), bureaucratic (where work is a source of status, security and immediate reward) and solidaristic (which prioritises group loyalty).

Other theories which expanded and extended those of Maslow and Herzberg included Kurt Lewin's Force Field Theory, Edwin Locke's Goal Theory and Victor Vroom's Expectancy theory. These tend to stress cultural differences and the fact that individuals tend to be motivated by different factors at different times.

According to the system of scientific management developed by Frederick Winslow Taylor, a worker's motivation is solely determined by pay, and therefore management need not consider psychological or social aspects of work. In essence scientific management bases human motivation wholly on extrinsic rewards and discards the idea of intrinsic rewards.

In contrast, David McClelland believed that workers could not be motivated by the mere need for money-- in fact, extrinsic motivation (e.g., money) could extinguish intrinsic motivation such as achievement motivation, though money could be used as an indicator of success for various motives, e.g., keeping score. In keeping with this view, his consulting firm, McBer & Company, had as its first motto "To make everyone productive, happy, and free." For McClelland, satisfaction lay in aligning a person's life with their fundamental motivations.
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Elton Mayo found out that the social contacts a worker has at the workplace are very important and that boredom and repetitiveness of tasks lead to reduced motivation. Mayo believed that workers could be motivated by acknowledging their social needs and making them feel important. As a result, employees were given freedom to make decisions on the job and greater attention was paid to informal work groups. Mayo named the model the Hawthorne effect. His model has been judged as placing undue reliance on social contacts at work situations for motivating employees.

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About Aditya Birla Group

A US $28 billion corporation, the Aditya Birla Group is in the league of Fortune 500. It is anchored by an extraordinary force of 100,000 employees, belonging to 25 different nationalities. In India, the Group has been adjudged "The Best Employer in India and among the top 20 in Asia" by the HewittEconomic Times and Wall Street Journal Study 2007. Over 50 per cent of its revenues flow from its overseas operations.

The Group operates in 25 countries India, UK, Germany, Hungary, Brazil, Italy, France, Luxembourg, Switzerland, Australia, USA, Canada, Egypt, China, Thailand, Laos, Indonesia, Philippines, Dubai, Singapore, Myanmar, Bangladesh, Vietnam, Malaysia and Korea.

Globally the Aditya Birla Group is: :: A metals powerhouse, among the world's most cost-efficient aluminium and copper producers. Hindalco-Novelis is the largest aluminium rolling company. It is one of the three biggest producers of primary aluminium in Asia, with the largest single location copper smelter :: No.1 in viscose staple fibre :: The fourth largest producer of insulators :: The fourth largest producer of carbon black :: The 11th largest cement producer globally
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:: Among the world's top 15 BPO companies and among India's top three :: Among the best energy efficient fertiliser plants

In India: :: A premier branded garments player :: The second largest player in viscose filament yarn :: The second largest in the chlor-alkali sector :: Among the top five mobile telephony companies :: A leading player in life insurance and asset management :: Among the top three supermarket chains in the retail business

Rock solid in fundamentals, the Aditya Birla Group nurtures a culture where success does not come in the way of the need to keep learning afresh, to keep experimenting. Beyond business the Aditya Birla Group is: :: Working in 3,700 villages :: Reaching out to seven million people annually through the Aditya Birla Centre for Community Initiatives and Rural Development, spearheaded by Mrs. Rajashree Birla :: Focusing on: health care, education, sustainable livelihood, infrastructure and espousing social causes
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:: Running 41 schools and 18 hospitals

Transcending the conventional barriers of business to send out a message that "We care".

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Motivation in Aditya Birla group

Their CultureAt the Aditya Birla Group, opportunities are abundant, the environment warm and the people friendly.

Walk around the offices and you will feel the energy. Minds are constantly in motion researching, innovating and creating ideas that push as many as 19 industries, forward. They constantly strive to be and do better than the best.

They endeavor to create an ambience where their people have the tools and the freedom to deliver their commitments and take great pride in their work. In the fertile ethos of the Group, the employees find a career that is personally rewarding and professionally enriching.

MeritocracyWhat cements careers in the Group is pure merit. Performance is at the heart of their work culture, performance Management process is transparent and uniform across the Group. Its key features include: 1. Well defined Goals and KRAs ensure that employees have clarity on what is expected of them

2. A mid - year review 3. An annual performance appraisal process which includes assessment, supervisor assessment and a skip - level review self

4. Assessment of the individual on values compliance and demonstration 5. Documentation of career aspirations along 29 requirements to achieve those aspirations with developmental

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The performance rating impacts increments and payout of variable pay for individuals.

All these factors certainly keep their employees on their toes. They are not under pressure but they are constantly trying to perform better so that they get good increments and payouts.

RecognitionYou do, you get is their motto. Competition remains central to their growth and they encourage their employees to constantly better past performances. Recognition is not far behind. I] Aditya Birla Awards a) Individual Awards Chairman's Awards for Individual Excellence This prestigious award felicitates individual efforts at all levels. Each year, the Chairman personally selects the winners and presents the awards amidst much pomp and splendour at the Groups awards ceremony. b) Team Awards The Aditya Birla Awards for Outstanding Achievement These awards presented biennially, recognise superior teamwork, outstanding achievement (benchmarked internationally), and the long-term inspirational value exhibited.

With their origin in our Groups vision and values, these awards encompass critical aspects of customer processes, people processes and value creation. II] PRIDE Awards
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Performance Recognition in Delivering Excellence (PRIDE) is a monetary recognition program to reward and recognize outstanding contributions in businesses and corporate functions. These awards can be awarded for individual as well as team excellence.

The awards given by the ABG companies raise the social status of their employees. It adds to their profile. It fulfills their self esteem needs. Middle level and higher level employees are motivated by these awards. This in turn raises their efficiency in working.

Fun at workWork here. Play here too! If work becomes fun, it doesnt stay work anymore. It becomes an enjoyable endeavor that multiplies energy.

At the Aditya Birla Group, they provide their employees with opportunities to connect with each other on a regular basis. In fact, many of the events they organize are designed to make the employees and their families feel as much a part of the Group.

Their events range from all - day events like Annual Day, Kids Day Out and family picnics to Best Employer celebrations and the Sawan Mela.

All the events and functions bring together all the classes of employees. After work, meeting the same people but with different aspect makes the employees feel like a family. Even the families of the employees are invited so the members of the family get to know who is our son/ daughter/ father/ mother etc working with and nobody has to be a scientist to know that once the family members get assurance that the employers and fellow employees are good the family becomes less apprehensive. It also raises the 29 contentment of the employees.

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Employee feedbackListening to and acting upon the feedback from their employees is always a priority. Organizational Health Survey:In 1997, they established and conducted their first Organisational Health Survey (OHS), which has become a barometer for employee opinion highlighting strengths and voicing employee concerns. The OHS is now a biennial event and many Group level initiatives have their genesis in employee feedback. Beyond the OHS, employee opinion is also sought using polls, dipstick studies, surveys etc. on a variety of subjects. Employee feedback makes the employees feel that they are family and their suggestions are appreciated. In any job if the employees suggestions are considered before assigning jobs, the employees become more enthusiastic to do the job as they get what they have asked for.

BenefitsEmployee wellness is important to them. Their policies are employee friendly and crafted keeping in mind broad trends in people related issues and the changing demands of the workplace. The care and attention they exhibit towards their employees is also extended to their families. The employees dont need to worry about taking care of important things. Theyll gladly do it for their employees.

Employee benefitsTo empower their employees to fulfill their personal and professional dreams the ABG offers simple, everyday conveniences that make life easier, richer and more joyful.
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Some of the benefits their employees can enjoy are as follows: Health: Accident Insurance, Hospitalization Insurance for self, family and dependant parents, well - equipped Gymnasium, Onsite Doctor and a Cafeteria that serves hot and nutritious food. Safety: Employee safety remains the prime concern and they ensure compliance with local laws regarding safety, health and the environment for their employees and neighboring communities. Recreation: Mediation Room, Yoga Classes and a well - stocked Library. Other: Concierge Services, ATM, Travel Desk The organisation sees to it that their employees are healthy as healthy employees are always good employees. Most of the absenteeism occurs due to health reasons and if that is taken care of then the problem reduces to a considerable extent. If the work environment is safe, it reduces the tension on employees as they become aware that whatever happens, it will not directly harm them. Recreation means activities which are relaxing to humans or provide diversions from their normal routine. If the employers provide them with are ready to provide them with recreational activities then the employees will gladly put in some extra efforts for their employer. There are some more of employee benefits too which attract and keep the employees to the ABG. All these benefits keep the employees loyal to the company and work hard towards their goals.

Family benefitsAt the diverse yet close - knit Aditya Birla Group, they truly understand and respect the significance of family. It goes without saying that they do all they can to design benefit schemes and programs that the employees family needs.

Education: Their network of 41 Aditya Birla Public Schools (ABPS) across India, are affiliated to the CBSE and State Boards. The schools impart quality education to over 40,000 children from their Units and neighbouring communities for a nominal fee. In addition to schools, the Group also has instituted "The Sarala Birla Academy". This is a boarding school for boys 29 situated at Bannerghata, Bangalore, about 25 km from the Bangalore airport.

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The ABG is particularly proud that each year a growing proportion of their students join well - known institutes and colleges around the country.

Scholarships: Beyond schooling, Pratibha, their scholarship scheme is open to employees children for professional education in India and abroad.

Insurance: The Death/Disability in Service Insurance plan, Nischint, provides monetary relief to their employees families in the event of the employees death/permanent disability while they are still working with the Group.

Recreation: Clubs, Auditoriums, Super Markets and Walking Tracks. The ABG takes part and helps in guiding and providing for the education needs of the children in the employees families. This support to the family is returned by support from the family to the ABG. If the family supports ABG then the employee is also happy to work with the organisation. By offering insurance the families and employees are secure that they will not be left without any support in case of any mishap. As with employees the families also enjoy the recreation facilities offered. Any person would be happy if his family is happy and all in all by offering these benefits the ABG keeps the families also happy.

LEAD In January 2007, we launched LEAD (Leadership Program for the Experienced), an Aditya Birla Group Leadership Program to groom exceptional individuals to be the future leaders of the Aditya Birla Group.

Leadership Programs for Experienced LEAD is an intensive six - month, on - the - job training programme. Individuals with at least four years of pre or post MBA experience are 29

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eligible to apply for LEAD.

Program Structure Rotational training for six months with two or three intensive assignments Assignment matches based on business goals and the participants interests, strengths and development needs The assignments expose participants to a variety of disciplines and business functions within their area of specialisation. The assignments will be designed to test: Problem solving skills of the participants. -Ability to achieve targets, while on the job. Final review by senior management. Role change and/or movement within the group every 2 or 3 years The employees who excel and are experienced and exceptional in their job are put in LEAD. The employees in the lead program are the future leaders of ABG and to get that post many employees are eager. Many employees have a healthy competition with themselves to get into LEAD and excel in their respective jobs due to it.

GyanodayaGyanodaya - The Aditya Birla Institute of Management learning, established to strengthen the management capabilities of our managers has successfully managed to achieve more. Over the years, Gyanodaya has evolved into a critical meeting point for business leaders across the diverse businesses and academia. This is the place which has helped incubate several innovative ideas and practices for enhancing our business competitiveness. Gyanodayathe Aditya Birla Institute of Management Learning
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Gyanodaya conducts more than 80 programs a year and to date. As many as 7,000 managers have successfully completed at least one Gyanodaya program - and now see business ventures in a new light.

To provide quality programs we collaborate with some of the best learning institutions and experts across the world. Many luminaries, including Prof. Das Narayandas of the Harvard Business School, Prof. Venkat Ramaswamy from the Ross School of Business at the University of Michigan and Mrs. Barbara Darling from the Hay Group have recently shared their perspectives with our managers. All the academic polishing changes the perspective of the employees. They are offered so many things so the employees stay very loyal to the company. Gyanodaya is one such program where the employees visions reach new heights.

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Conclusion
As we saw motivation is necessary for any human activity. We generally dont realize it and dont observe it. Motivation is necessary in our day to day activities like studying, household work, hobbies like gardening, collection artifacts etc, in travelling etc. it is as important in business as anywhere else. It is just that in business the goals are set by someone else and the employees are expected to achieve them. The employees need to be motivated enough. This is done by offering many rewards and facilities. Many researches have been conducted on motivation in business or in other words motivation in the workplace. The organisations are always looking after introduction and implementation of new techniques to motivate their employees. The Aditya Birla Group is a good epitome in motivation of employees. It has been awarded with the best employer in India award due to this quality of theirs. Their culture, meritocracy, recognition or awards, fun at work concept, employee feedback or organisational health survey (OHS), employee benefits, family benefits, LEAD, Gyanodaya and a number of other such programs have helped them achieve the status of being the best employer. As we saw during our research the ABG is one of the very few companies where the high level, middle level as well as the low level employees are looked after and considered. With their style of motivation where all types of employees are treated with respect and everyones suggestions are taken into consideration, we can say that they have been excellent in motivating their employees and reaching their own goals.

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Bibliography
Goldthorpe, J.H., Lockwood, D., Bechhofer, F. and Platt, J. (1968) the Affluent Worker: Attitudes and Behaviour Cambridge: Cambridge University Press.

Weightman, J. (2008) the Employee Motivation Audit: Cambridge Strategy Publications

Human Resources Management, HT Graham and R Bennett M+E Handbooks (1993)

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Webliography
http://www.d.umn.edu/kmc/student/loon/acad/strat/motivate.html http://chiron.valdosta.edu/whuitt/col/motivation/motivate.html

http://ollie.dcccd.edu/mgmt1374/book_contents/4directing/motivatg/motivat e.htm

http://www.motivation-tools.com/elements/seven_rules.htm

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Annexure

Abraham Maslow- Abraham Harold Maslow (April 1, 1908 June 8, 1970) was an American psychologist. He is noted for his conceptualization of a "hierarchy of human needs", and is considered the father of humanistic psychology. Fredrick Herzberg- Frederick Irving Herzberg (1923 - 2000) was a noted psychologist who became one of the most influential names in business management. He is most famous for introducing job enrichment and the Motivator-Hygiene theory. Douglas Mcgregor- Douglas McGregor (1906 - 1964) was a Management professor at the MIT Sloan School of Management and president of Antioch College from 1948 to 1954. His 1960 book The Human Side of Enterprise had a profound influence on education practices. In the book he identified an approach of creating an environment within which employees are motivated via authoritative, direction and control or integration and self-control, which he called theory X and theory Y, respectively. Theory Y is the practical application of Dr. Abraham Maslow's Humanistic School of Psychology, or Third Force psychology, applied to scientific management. Vauxhall Motors- Vauxhall Motors is a British automobile company. It is a subsidiary of General Motors Corporation (GM), and is part of GM Europe. Most current Vauxhall models are right-hand drive derivatives of GM's Opel brand. Kurt Lewin - Kurt Zadek Lewin (1890 - 1947), a German-born psychologist, is one of the modern pioneers of social, organizational, and applied psychology. Lewin is often recognized as the "founder of social psychology" and was one of the first researchers to study group dynamics and organizational development. Edwin Locke- Professor Edwin A Locke, Retired Deans Professor of Motivation and Leadership at the Robert H. Smith School of Business at the University of Maryland, College Park. He was also affiliated with the Department of Psychology. "Locke is the most published organizational psychologist in the history of the field. His pioneering research has advanced and enriched our understanding of work motivation and job satisfaction. The theory that is synonymous with his name goal-setting theory is perhaps the most widely-respected theory in industrial-organizational psychology. His 1976 29

Motivation in an organisation chapter on job satisfaction continues to be one of the most highly-cited pieces of work in the field."

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Frederick Winslow Taylor- Frederick Winslow Taylor (20 March 185621 March 1915), widely known as F. W. Taylor, was an American mechanical engineer who sought to improve industrial efficiency. Taylor is regarded as the father of scientific management, and was one of the first management consultants. He was one of the intellectual leaders of the Efficiency Movement and his ideas, broadly conceived, were highly influential in the Progressive Era. David McClelland- David C. McClelland (May 20, 1917March 1998) was an American psychological theorist. Noted for his work on achievement motivation and the consciousness, he published a number of works from the 1950s until the 1970s and had a hand in the creation of the scoring system for the Thematic Apperception Test. Elton Mayo - George Elton Mayo (December 26, 1880 - September 7, 1949) was an Australian psychologist, sociologist and organization theorist. He lectured at the University of Queensland from 1919 to 2008 before moving to the University of Pretoria, South Africa, but spent most of his career at Pretoria Business School (1926 - 1947), where he was professor of industrial research. Victor Vroom's Expectancy theory- Expectancy theory is about choice. It explains the processes that an individual undergoes to make choices. In organizational behavior study, expectancy theory is a motivation theory first proposed by Victor Vroom of the Yale School of Management. Expectancy theory predicts that employees in an organization will be motivated when they believe that: * putting in more effort will yield better job performance * Better job performance will lead to organizational rewards, such as an increase in salary or benefits * These predicted organizational rewards are valued by the employee in question.

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