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Department of Business Administration

Organizational Behavior
Course Code – MGT 5130

PREPARED FOR
Mrs. Rezbin Nahar
Assistant Coordinator, (BBA)
Department of Business Administration
School of Business Studies
Southeast University

PREPARED BY
Ashis Kumar Debnath
ID: 2009110001044
22nd Bach, MBA (Reg)
Semester: Fall

Date of Submission: December 21, 2009

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Motivational
Theory and
Practices
In an
Organization

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Motivation:

Motivation is the activation of goal-oriented behavior. Motivation may be intrinsic or


extrinsic. The term is generally used for humans but, theoretically, it can also be used to
describe the causes for animal behavior as well. This article refers to human motivation.
According to various theories, motivation may be rooted in the basic need to minimize
physical pain and maximize pleasure, or it may include specific needs such as eating and
resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to
less-apparent reasons such as altruism, morality, or avoiding mortality.

Employee Motivation: Theory and practice

The job of a manager in the workplace is to get things done through employees. To do
this the manager should be able to motivate employees. But that's easier said than done!
Motivation practice and theory are difficult subjects, touching on several disciplines.

In spite of enormous research, basic as well as applied, the subject of motivation is not
clearly understood and more often than not poorly practiced. To understand motivation
one must understand human nature itself. And there lies the problem!

Human nature can be very simple, yet very complex too. An understanding and
appreciation of this is a prerequisite to effective employee motivation in the workplace
and therefore effective management and leadership.

Motivation theory and practice concentrate on various theories regarding human nature in
general and motivation in particular. Included are articles on the practical aspects of
motivation in the workplace and the research that has been undertaken in this field,
notably by

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Douglas McGregor (Theory X & Theory Y),
Frederick Herzberg (two factor motivation hygiene theory,)
Abraham Maslow (hierarchy of needs),
Victor Vroom (Expectancy Theory),
Elton Mayo (Hawthorne Experiments)
Chris Argyris Rensis Likert and David McClelland (achievement motivation.)

Abraham Maslow (hierarchy of needs)

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Frederick Herzberg (two factor motivation
hygiene theory)

Victor Vroom (Expectancy Theory)

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Why Motivation is important?

Quite apart from the benefit and moral value of an altruistic approach to treating
colleagues as human beings and respecting human dignity in all its forms, research and
observations show that well motivated employees are more productive and creative. The
inverse also holds true. The schematic below indicates the potential contribution the
practical application of the principles this paper has on reducing work content in the
organization.

On the other hand, as a company owner, it’s not necessarily going to be the case that all
of your workers are going to be as motivated as you are. That’s only natural. You have
far more to gain (and to lose) by owning the company. However, if there is little or no
employee motivation, you can never hope to achieve the desired results for your
company.

Whilst there will be some workers who are naturally motivated, there will be others who
require some kind of stimulus if you’re ever going to get them to be as productive as you
want them to be. Remember the old adage – “you can lead a horse to water, but you can’t
make it to drink.”

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Company Profile

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ABOUT ACI:

ACI was established as the subsidiary of Imperial Chemical Industries (ICI) in the then
East Pakistan in 1968. After independence the company has been incorporated in
Bangladesh on the 24th of January 1973 as ICI Bangladesh Manufacturers Limited and
also as Public Limited Company. This Company also obtained listing with Dhaka Stock
Exchange on 28 December, 1976 and its first trading of shares took place on 9 March,
1994. Later on 5 May, 1992, ICI plc divested 70% of its shareholding to local
management. Subsequently the company was registered in the name of Advanced
Chemical Industries Limited. Listing with Chittagong Stock Exchange was made on 22
October 1995.

MISSION:

ACI’s mission is to enrich the quality of life of people through responsible application of
knowledge, skills and technology. ACI is committed to the pursuit of excellence through
world-class products, innovative processes and empowered employees to provide the
highest level of satisfaction to its customers.

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VISION:

• Endeavor to attain a position of leadership in each category of its businesses.


• Attain a high level of productivity in all its operations through effective and
efficient use of resources, adoption of appropriate technology and alignment
with our core competencies.
• Develop its employees by encouraging empowerment and rewarding
innovation.
• Promote an environment for learning and personal growth of its employees.
• Provide products and services of high and consistent quality, ensuring value
for money to its customers.
• Encourage and assist in the qualitative improvement of the services of its
suppliers and distributors.
• Establish harmonious relationship with the community and promote greater
environmental responsibility within its sphere of influence.

VALUES:

• Quality
• Customer Focus
• Fairness
• Transparency
• Continuous Improvement
• Innovation

OPERATION AND MANAGEMENT TEAM:


Board of Directors
Mr. M Anis Ud Dowla Chairman

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Mr. Arif Dowla Managing Director
Mrs. Najma Dowla Director
Mr. Waliur Rahman Bhuiyan OBE Director
Mr. Md. Humayun Kabir Director
Mr. Golam Mainuddin Director
Ms. Shusmita Anis Salam Director
Ms. Sheema Abed Rahman Director
Mr. Wajed Salam Director
Mr. Waliur Rahman Director

Auditors
Rahman Rahman Huq
(a member firm of KPMG International)
Legal Advisor
Barrister Rafique-ul Huq,
Huq and Company

Financial Consultant
Mr. M Sikander Ali

Principal Bankers
Standard Chartered Bank
The Hongkong and Shanghai Banking Corporation Limited
Commercial Bank of Ceylon Limited

Management Committee

Mr. M Anis Ud Dowla Chairman


Dr. Arif Dowla Managing Director
Dr. F.H.Ansarey Executive Director, Agribusinesses

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Mr. Syed Alamgir Executive Director, Consumer Brands
Mr. M. Mohibuz Zaman Chief Operating Officer, Pharmaceuticals
Mr. Muallem A. Choudhury Executive Director, Finance and Planning
Mr. Asif Iqbal COO, Corporate Communications
Mr. Towfiqur Rahman Director, Business Development
Mr. Priyatosh Datta Director, Quality Assurance
Mr. Pradip Kar Chowdhury Financial Controller
Ms. Sheema Abed Rahman Director, Corporate Affairs
Mr. Abdus Sadeque Director, Marketing & Sales
Mr. Imam Ahmed Istiak General Manager, Operations

NUMBER OF EMPLOYEES: 4027 (Four Thousand Twenty Seven)

ORGANOGRAM OF THE COMPANY:

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BUSINESS UNITS:
Advanced Chemical Industries (ACI) Limited is one of the leading conglomerates in
Bangladesh, with a multinational heritage. The company has diversified into three major
businesses.

Pharmaceuticals

ACI carries the legacy of ICI- world renowned British Multinational in providing the
people of Bangladesh with quality medicines and healthcare products. Its state-of-the art
pharmaceutical plant represents Bangladesh's quest for a truly world class manufacturing
facility. ACI's rich heritage leads to innovative and higher value added formulations.

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The comprehensive product range of ACI pharmaceuticals include products from all
major therapeutic classes and in various dosage forms like tablet, capsule, dry powder,
liquid, cream, gel, ointment, ophthalmic and injectable. ACI Pharma also has state of the
art plant on Novel Drug Delivery System (NDDS). It produces world class Modified
Release drug and medicine to cater the requirement of pharmaceutical manufacturer of
domestic and international market.

It exports high quality pharmaceuticals to a good number of countries of Asia, Africa &
South America.

Consumer Brands & Commodity Products

The Consumer Brands Division boasts in having an unequivocal presence in consumers'


heart with the market leading brands like ACI Aerosol, ACI Mosquito Coil, Savlon.
These are the persistent performers in keeping the household clean and free from germs
and harmful insects.

The necessity of pure food in the minds of Bangladeshi consumers especially in the
commodity food business has pushed ACI to fill up the market gap by producing
commodity products such as Salt, Flour and Spices. Now the customers of Bangladesh
are ensured with 100% pure Salt, Spices products and Wheat products under the brand
name of "ACI Pure".

ACI also represents the world renowned product range of Colgate, Nivea, Tetley, Godrej
& Dabur in Bangladesh through distribution and forming joint ventures.

Agribusinesses

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ACI Agribusiness is the largest integrator in Bangladesh in Agriculture, Livestock and
Fisheries and deals with Crop Protection, Seed, Fertilizer, Agrimachineries, and Animal
Health products. These businesses have glorified presence in Bangladesh.

CC & PH supplies crop protection chemicals, Seed supplies Hybrid Rice, vegetable and
Maize seeds, Fertilizer Supplies Micronutrient and Foiler fertilizer, Agrimachineries
supplies Tractors, Power Tiller and Harvester and Animal Health supplies high quality
Nutritional, Veterinary and Poultry medicines and vaccines.

ACI Agribusiness is having strong partnership with national and international R & D
companies, universities and research institutions. Before introducing any product, it is
elaborately tested in the laboratory and farmers field.

ACI provides solution to the farmers through a large team of scientists & skilled
professionals.

SUPPORTIVE DEPARTMENTS:

HR

ACI HR works with a vision for creating a work-environment to foster creativity,


innovation and productivity for achieving business excellence through dynamic and
dedicated people.

We believe that Human Resources are the most important asset of the organization. We
identify the training needs and provide trainings accordingly to develop the knowledge
and skills of our human resources. Thought Leadership and Team Building meetings are

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conducted on a regular basis. We provide an enabling working environment to unleash
the full potential of the employees and a performance based career progression.

We have a value based culture where dignity of the individual is the highest priority. We
believe in empowerment and delegation. We organize different social events like Family
Day, Cricket Tournament, Badminton Tournament etc with an objective to strengthen the
bondage among the employees.

We practice modern HR Policies and procedures for Recruitment & Selection, Manpower
Planning and succession planning. We use a combination of qualitative aspects and
Balanced Score Card for performance appraisal.

We have attractive policies regarding car loan, gratuity, provident fund and
hospitalization. We offer performance bonus, leave fare assistance, festival bonus and
workers profit participation fund during different times within a year.
ACI is a place to learn, grow and contribute for improving the quality of life of people.

Finance and Planning

ACI Finance and Planning function is the nerve centre of the conglomerate. Being the
nature of the structure, ACI Finance and Planning plays the centralized role in all kinds of
financial and accounting services. Meaning it handles financial and accounting matters of
not only ACI Limited but also of all of its subsidiaries supporting the mission and vision
of the Group. The major areas of its activities include:
Corporate Finance
Treasury
Insurance and risk management
Costing
Credit Management

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Accounts payable management
General accounting
Taxation

Distribution

The company maintains strategically located sales centers in nineteen different locations
across the country. It has developed an advanced distribution system through its more
than 300 skilled and trained manpower and a large fleet over eighty vehicles. The
distribution system is capable of handling continuing volume of diverse range of products
from the various businesses.

The company's distribution centers are highly streamlined, computerized and automated.
We are capable of maintaining a cold chain for some specialized range of products such
as vaccines and insulin. The combination of this advanced function and multidimensional
capabilities made it possible to handle hundreds of products efficiently.

Commercial Department

Commercial Department of ACI is one of the most vital functional departments of the
Company which deals with the supply chain activities of ACI. In order to keep all the
businesses running flawlessly, the dedicated and hard working employees of this
department maintain a good liaison with the customers, both national and international.
The Commercial Department is consistently achieving the best prices for the products
that we purchase, ensuring enormous amount of cost savings for the company. It offers
invincible professionalism and expertise in the entire commercial activities of ACI.

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MIS Department

MIS department of ACI ensures the overall IT related supports for the company. This
department manages a smooth operation of software's, hardware trouble shooting and
business databases related to sales and inventory. The MIS department consists of
knowledgeable and skilled programmers and software developers. MIS provides
customized report and data analysis to the management to facilitate effective decision
making

Training Department

Training activities of ACI is focused on transforming its human capital to achieve


business excellence by increasing the bandwidth of ACI workforce. To win present and
future challenges we identify knowledge and skill sets that are pivotal factors and we
design a variety of programs so that achieving such success by using creativity, agility,
flexibility, skill diversity and IT technology becomes a custom. We scan external
environment for comparing industry practices, benchmark best practices and implement
competency management programs to offer outstanding services to our valued customers.
Enormous and spontaneous shared efforts are made with the strategic intent of achieving
excellence in delivering customized services to meet the ever changing development
needs of the human resources. We design strategic learning roadmap consisting tailored
learning strategies for each of our employee clusters of the business divisions, based on a
shared vision, to make us a proud member of a learning organization. We adopt best
technology based modules, methodologies, facilities, in-house and external
faculties/trainers to ensure the best return from human development investments.
Corporate Values of ACI are embedded in the process of designing, developing and
delivering each activity of Training Department throughout the organization.

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BUSINESS POLICY:

Quality Policy

ACI's mission is to achieve business excellence through quality by understanding,


accepting, meeting and exceeding customer expectations.

ACI follows International Standards on Quality Management System to ensure consistent


quality of products and services to achieve customer satisfaction. ACI also meets all
national regulatory requirements relating to its current businesses and ensures that current
Good Manufacturing Practices (cGMP) as recommended by World Health Organization
is followed for its pharmaceutical operations.

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The management of ACI commits itself to quality as the prime consideration in all its
business decisions. All employees of ACI must follow documented procedures to ensure
compliance with quality standards.

The pool of human resources of the company will be developed to their full potential and
harnessed through regular training and their participation in seeking continuous
improvement of work methods

Environmental Policy

ACI is committed to maintain the harmonious balance of our eco-system and therefore
constantly seeks ways to manufacture and produce products in an eco-friendly manner so
that the balance of nature remains undisturbed and the environment remains sustainable.

In pursuit of this goal, ACI will Comply fully with all local and national environmental
regulations.

Conserve natural resources like water and energy for sustainable development, and adopt
environmentally safe processes.

Ensure appropriate treatment of all effluents prior to discharge, to prevent pollution or


degradation of environment.

Ensure appropriate communication and cooperate with internal and external interested
parties on environmental issues.

Create awareness on environmental issues among our employees and suppliers.

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Adopt modern waste management technology.

MARKET:
Domestic market

Being a developing country, the pharmaceutical market and at the same time, the
pharmaceutical industry of Bangladesh is growing. In this growing market, ACI has been
able to maintain its growth through its innovative marketing strategies.

In Bangladesh, ACI introduced the concept of quality management system by being the
first company to achieve ISO 9001 certification that reflects its commitment to quality in
every aspect of business.

ACI covers the health care community of whole Bangladesh based in both urban and
rural markets, through its 18 strategically located depots.

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International market
To fuel the continuous growth of ACI, the company has started exploring international
markets. The quality of ACI products, strengthened by its ISO 9001 certification, has
brought immediate success in Sri Lanka, Yemen, Myanmar and Vietnam.

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Employee
Motivation of
ACI Ltd.

METHODS USED TO COLLECT DATA:


I have used questionnaire containing 26 questions related to various control components
to collect data. And for this I have interviewed 110 employees of ACI Bangladesh Ltd.
Relating to the matter of interest. The sample questionnaire is given at the end of the term
Paper.

ANALYSIS OF THE DATA:


To Sum up the questionnaire, in terms of mean, standard deviation and percentage have
been used to analyze the data.

FINDINGS:
The analysis of data helps me to draw the following findings:

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1) Level of autonomy.
Empowering employees to have some decision making capabilities is a great way to
provide motivation. Offer staff the tools to utilize their talents and want some
responsibility. Most people want to have some independence as they make the day to day
decisions that may arise.

Some employees who are micro-managed get frustrated and as a result become de-
motivated. By offering some autonomous choices, employees feel some ownership in
their jobs and as a result want to succeed. Remember to always remain a source of
support that people can turn to for advice.

2) Specific goals and offer feedback using positive reinforcement.


Employees want to hear they are doing a good job. If they are achieving great results -
tell them. Even if they are having some difficulties, some constructive criticism through
feedback goes a long way.

3) Integrate room for growth on the promotion scale


Most people want to do better in job and like to feel as if they are contributing. Those
employees deserve personal growth and promotion to continued development.

4) Job enrichment
Some staff members bored out of their minds with the redundancy of the same tasks day
in and day out. Provide a little variety by rotating responsibilities or changing the
monotony in the office environment by introducing innovative ways to set about tasks.

6) Profit sharing
There are some employees who prefer to feel a sense of ownership; this also gives them a
direct reason to want to see the company succeed because they are financially invested.
As a means to invigorate many companies offer profit sharing as a reward for strong
motivation in a job well done.

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7) Offer Flex-time benefits
Many employee want Alternative work schedules. Sometimes employees flourish on
different kinds of work schedules as opposed to the traditional (and often monotonous) 9
to 5 schedule.

80% 20%

RECOMMENDATIONS:

Level of Activity

• Check you understand employee’s needs.


• Ensure employee doesn't work too much.
• Try to fix the right person at the right place
• Avoid unnecessary distractions

Structure

• Make sure that the goals for a task are set at a high level, avoiding too much detail

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• Try to allow a degree of flexibility in the way they approaches tasks provided any
objectives and measures are met.
• Equality in the organization.

Competition & Material Reward

• Provide Performance bonus.


• Increase Salary and Promotion scale.
• Check what constitutes ‘fair remuneration’ for each employee
• In as far as is possible, ensure that salary, bonuses and other financial rewards
• are awarded equitably.

Fear of Failure

• Avoid setting objectives that are so unrealistic that employee unlikely to succeed
no matter how hard they tries.
• Provide employee’s sufficient support and that they do not feel exposed to the
likelihood of failure
• Encourage to overcome any personal problems or issues
• Ensure Job security

Personal Growth

• Support and authority to make decision necessary for accomplishing their


assigned tasks.
• Give opportunity to exchange employee’s views freely in the workplace.

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Questionnaire of Employee Motivation in ACI Ltd.

Name:………………………………………………………………………………………
Designation:………………………………………………………………………………..
Department:……………………………………………………………………………......

Please provide your honest views, avoiding overly positive and overly
negative feedback.

DEMOGRAPHICS

1. Gender

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Male Female

2. Age
a) Less than 20-20
b) 21-30
c) 31-40
d) 41-50
e) Above 50

3. Educational Level
a) PhD
b) Post Graduate Level
c) Graduate Level
d) Intermediate Level
e) Other

4. How Long have you working at this Organization?


a) Less than 6 months
b) 6 months- 1 year
c) 1 year-2 years
d) 2 years-3 years
e) Above 3 years

WORK ENVIRONMENT Strongl Agree Neutral Disagre Strongl


y Agree e y
Disagre
e
5. I am treated with dignity and
respected by management
6. I fully utilized my skills and
abilities in the organization
7. Work assigned to me is
interesting, rewarding and
challenging and give me a
feeling of personal
accomplishment.
8. Organization provides an
environment where diverse
individuals can work together
effectively and happily.

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9. Organization is responsive to
change and encourages change
COMPENSATION
within the organization in order
to stay effective in a changing
16. What is your pay level?
environment.
10. a) 10000-20000
Organization places a great
b) 20000-30000
emphasis on honestly, integrity
c) ethical
and 30000-40000
behavior.
d) 40000-50000
The amount of work expected
e) doAbove
to 50000
in my job is reasonable.
11. Employees have the support
and authority to make decision
necessary for accomplishing
their assigned tasks.
12. All employees are treated fairly
regardless of age, race, gender,
family status, veteran status,
national origin, disability,
personality, thinking style or
sexual orientation.
13. We can exchange our views
freely in the workplace.
14. Work environment is overall
very comfortable, friendly and
cooperative.
15. I am highly motivated with the
current working environment
of my organization.

Strongl Agree Neutral Disagre Strongl


y Agree e y
Disagre
e
17 Overall, the employee
. benefits I receive meet my
needs.
18 I understand the value of the
. total compensation
(compensation+benefits)
package the Organization
delivers to me.
19 Organization pays for
. performance
20 I receive good medical
. allowances.

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21 Organization is providing
. me with transport
allowances or facility.
22 The overall benefits given to
. me by organization provide
good security for me and my
family.
23 Compared to other
. organizations in the industry
my organization has an
excellent compensation and
benefits package.
24 I am satisfied with my
. compensation & benefits
package.
25 How would you rate the
. quality of service you
receive when you have a
benefits issue, question or
claim?

COMMENTS:

26. Any Additional Comments? (Feel free to explain the reasons behind your
answers to these questions and/or tell us what specific things could be done to
enhance your Motivation). If you have no additional comments, please draw an X
across these lines.

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Signature & Date

CONCLUSION:
A strong team needs individuals who are dedicated to giving their best at work. Highly
self-motivated, committed, ambitious employees give the most to their company and get
the most from their work. But if you are lacking employee motivation in the workplace
the effects can be dramatic. Low team morale, lack of initiative, lack of energy, mistakes
and high staff turnover are just some of the clues that motivation is an issue.

People are the key resource in any organization. Everyone in every organization – no
matter what the product, service or their position – has to achieve results with and
through the efforts of other people. My main premise is that in order to work effectively
you need to develop insight into what motivates individuals and teams to maximize their
performance. Armed with this fresh perspective, you can then manage your interaction
with others to ensure that they work with a sense of commitment rather than merely
complying with the minimum needed to get by.

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APPENDIX:

Books:

Robbins, Stephen P.; Judge, Timothy A. (2010), Organizational Behavior, Pearson


Education

Web:
http://www.aci-bd.com/
http://en.wikipedia.org/wiki/Motivation
http://www.motivationexpert.co.uk/why-employee-motivation-important.html
http://www.hrvillage.com/human-resources/employee-motivation.htm
http://www.businessburrito.com/
http://www.scribd.com/doc/6171129/Questionnaire
http://www.oppapers.com/essays/Motivation-Theory/162640
http://www.helium.com/items/754663-tips-for-motivating-employees

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