The Impact of Motivation on the Employees Satisfaction Case Study in Arab Fertilizer & Chemicals Industries Ltd Company

Kemapco in Aqaba City - Jordan

-:Research submitted to Department of business administration Jordan of University :Supervisor Dr. Burhan Al-Omari :Submitted By Fathi Radi MBA Master 2012-2013

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TABLE OF CONTENTS
PAGE NO ABSTRACT LIST OF TABLE LIST OF CHART INTRODUCTION 1.1 Sight of an Organization 1.2 Need for the Study OBJECTIVES OF THE STUDY REVIEW OF LITERATURE RESEARCH METHODOLOGY DATA ANALYSIS AND INTERPRETATION FINDINGS OF THE STUDY SUGGESTION & RECOMMENDATION Conclusion TITLE CHAPTER

LIMITATIONS AND SCOPE OF THE STUDY

ANNEXURE Questionnaire Bibliography

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:Abstract We are going to state in this research the results of motivation on employees whom they are working in Arab Fertilizer & Chemical industries Company which is operated in the south of Aqaba City. The researcher will try to identify how the motivational policies in this company will effects in increasing the workers satisfaction, Also to clear the important issues his may affect on the employees performance. The researcher, however, observed & thinks based on his experiences in the same filed that is related to more than seven and half years that most of the motivations policies in the different organizations still are not make the real change in order to urge and lead the employees in each company to put their best efforts and invest their strong skills to achieve the desired goals, In the other meaning we aims to generating the final targets for the stockholders and stakeholder that is a profit. On the same time, this study tries to determine the factors that effects on employee's motivation Keywords: Motivation, motivational policies

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1. Introduction : Every organization today would like to reach to the organization goals, so we will note that the most challenges and difficult are appearing about how the managers can use their knowledge and learning in order to create motivation in the workplace. In shortly, the motivation is too important both to an individual and a business, as for the motivation is significant to an individual we can says, the same will help him to achieve his personal goals, he will feel have job satisfaction, it will help in selfdevelopment of individual and an individual would always gain by working with a dynamic team. The motivation is important also to the organization due to the stakeholders demands. This research aims in studying the The Impact of Motivation on the Employees Satisfaction Kemapco. The main objective of this study is to know the level of satisfaction of each employee in the company. For this goal, the researcher was made randomly questioners in order to measure the difference motivational factors used by the company.

Company Profile
The Company has planned to use new machinery and high skills persons in order to produce their products with highly quality for export. Kemapco has also recently got qualification certificate ISO 9001 [ the researcher was a one of Kemapco ISO team by preparing the documents and asking the departments concerned to comply with the instructions] , acutely, Kemapco wants to be one of the best companies in the Middle East in Fertilizer manufacturing through continuously development in the different areas in addition getting marketing opportunities to export their products, so this issue will reflect in positively actions by carrying out the company plan.

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Company History
Kemapco Arab Fertilizer and Chemicals Industries Ltd Company: Kemapco was started to show on the papers in the beginning of 1990 between Kemira Agro Oy (Kemira) and Arab Potash Company Ltd (APC). (KEMAPCO) Kemira Arab Potash Co. Ltd was registered as Free Zone Corporation as a jointly business of Potash company in Jordan and Kemira Agro Oy in Finland. In summer 1999 the jointly project agreement was signed, so the company was started in plants setting up. In 2000 & in the end of 2003 became all plants are ready to produce the mainly products of Kemapco (NOP, DCP). On Feb.2007, Kemira sold it 50% stake in favor of the Arab Potash Co., so in this case Kemapco was fully owned by Potash Company [APC], who is one of the world leader in the production Potassium Chloride. On Aug.2007, The company name has been changed to be (Arab Fertilizers and Chemical Industries Ltd) instead of (Kemira Arab Potash Co. Ltd) with keeping of the brand name as Kemapco. Now works in a company approximately 211 in permanent job, in addition around 20 employees as monthly contracts workers. The importance point that we have to mention that the company grants attractive motivation such as 16 salary based on basic salary on yearly basis, Medical insurance, supported food meals [Hot & Fruit] , housing allowance , life insurance, transportation to and from company sites as well as there are two funds for saving and Housing.

Company Chart
The chart of Kemapco enclosed represents how departments and sections are link together and the mainly depts. in Kemapco will be as follows: Commercial Dept. - Planning - Exports & Logistic - Marketing & Sales Operation Dept. - Material Handling - Maintenance & Planning - Technical - Production

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 Finance Dept. - Accounting - Warehouse - Purchasing Projects, IT, HR & Security.

Company Products
Kemapco is manufacturing the following products: 1. Potassium Nitrate (NOP), the main uses are: Water-soluble NPK fertilizer mixtures Liquid feeds

2. Dicalcium Phosphate (DCP), the main uses are: Animal feed concentrate Compound animal feed Mineral animal feed

Resource: www.kemapco.com

The importance of the study

This study aims to achieve the following objectives: To study and know the employee motivation design in Kemapco. To know the employees satisfaction level with the motivation factors that used by the company. To identify how the organization motivates the employees.

2. Review of literature : 2.1 Motivation:

Motivation, simply, we can define it as the degree which makes people act in the certain way they do or like. Motivation (The extent to which they are willing to perform well) and by their ability (the extent to which they possess the skills and abilities necessary to perform

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well). Feldman and Daniel (1983) are jointly determined by both motivation and ability. "Motivation" is the process of urging people to act in ways which serve the needs of the organization providing the incentive. We can say that the story of motivational theory is related to the starting of twenty century, Motivation can also be described as something desire the person needs to get it. Motivation plays an important in the connection between management and its employees. We can say the beginning of studies of motivations refers Hawthorne Experiments carried out by Elton Mayo. This study was seen the employees are not motivated alone by money and employee behavior is linked to their attitudes (Dickson, 1973). We have to take into account that the studies cleared that performance in workers increased when workers were given attention and personal interest in their work was especial point. From that date we noted there are four specific theories of motivation were stated and generally accepted in the field of motivational theory. So, we will find Abraham Maslows Hierarchy of needs which states that employees have five levels of needs and the rest theories which will explain them in the next paragraph.

Motivation Theories:
Motivation, simplicity, we can define it as the degree which makes people act in the certain way they do or like. Truly the motivation begins with the needs that found in our life, so, if those things are not satisfied we put a target and do our utmost best to catch this goal/ target. The persons in any organization are differs from one to another , for example Fathi try to get his PHD trust in order to be as he thought while another person would like to earn different thing. Briefly, the organization environment sometime is differently due to situation for each person. Human life consists of the number of theories that explain peoples behavior. Those theories explain human motivation through human needs and human nature. The famous of the same is related to Maslow's Need Hierarchy Theory, McGregors Theory x and y and Herzberg two factor theory.
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We'll insert our perception on each theory in brief as follows:1. Maslow's Need Hierarchy Theory 2. McGregor Theory x and y and 3. Hertzberg Two Factor Theory. 1. Maslows Hierarchy of needs: it consider as the first theory and which is known in 1943 by Maslows Hierarchy of needs also its famous as A Theory of Human Motivation. According to this theory there are five levels of needs of individuals, starting with the physiological needs (which include of basic needs for Humans to be a life such as air, water and food) and ending with the top-level of needs which describe as selfactualization needs exist, this level of need a agree with getting the persons full possible so already walk in the previous steps safety needs, belonging needs and self esteem needs.

2. Theory X and Theory Y: McGregor developed two theories of human behavior at work: Theory and X and Theory Y. Theory X workers could be mentioned as follows: Individuals dislike work and avoid it where possible. Individuals lack willing to work. Individuals dislike responsibility and prefer to be led by others. Individuals like to security.

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In this case the management will not be able to achieve the organization objective so the workers need follow up and control continuously. Theory Y workers could be stated as follows: Individuals like work. Individuals have willing to work, so you will find them trying to comply with self-direction and self-control. Individuals are looking forward to accept responsibility Individuals like to make innovation in the workplace. 3. Herzberg two factor theory: According to Hertzberg, there are two factor theories: kinds of needs, there are some job factors that result in satisfaction while there are other job factors that keep from dissatisfaction, His idea was focuses between: Hygiene Factors: Wages & Salary Company policies & Interpersonal Relation with similar. Job Security & Supervisors Technical

Hygiene factors present dissatisfaction in the organization, according to him, hygiene factors are very important in order to keep on the human resources. Motivational Factors: Job itself Estimation Achievement Responsibility Growth and Advancement.

Above mentioned factors are linked together and will lead to positively feeling to motivation.

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With reference to Hertzberg job promotions, higher responsibilities, participation in central decision making are all will be guide of growth and advancement of employee in the organization

2.2 Satisfaction:
Definition: Employee satisfaction used to describe whether employees are happy and they are going ahead in fulfilling their desires and needs at work. Many measures were mentioned as clearly that employee satisfaction is a factor in employee motivation, employee goal achievement, and positive employee morale in the workplace.

2.3

Importance of employee satisfaction for employees

Its very importance so we can summarize the importance of employees satisfaction for employees mainly by increasing the productivity and participation in doing the organization targets, therefore, the employ will act as the following: To think that your firm will be satisfying in the long run. To do his best efforts to make the work with high quality.

Case Study in Arab Fertilizer & Chemicals Industries Ltd Company Kemapco in Aqaba City - Jordan
The resecgher was divided the motiviactionn that already applied in kemapco as follws: 1. sdcvsd 2. x xxc

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Table 1: Non-monetary incentives Clause No of Respondents Percentage

Insurance Medical Life Insurance Transportation Supported Meals Total

25 12 18 45 100

25 12 18 45 100

Non-monetary incentives
50 45 40 35 30 25 20 15 10 5 0 Insurance Life Insurance Supported

Percentage

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Table 1: Facilities to Employees: Percentage 43 25 __ 32 100 No of Respondents 43 25 __ 32 100 Particulars Insurance Medical Transport Canteen Total

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INFERENCES: From the above table shows that organization provides facilities to employees that 43% of respondents say Insurance, 25% of respondents says medical &32% of respondents says canteen & there is no transport for the employees.

6. FINDINGS OF THE STUDY

In overall employee in Anglo French Textiles Limited 75% of respondents say that the company provides employees. 68% of the respondents are satisfied with the motivation that the company provides; only 32% of respondents are not satisfied with the motivation. motivation to the employees, only 25%of respondents says no that the company did not provide motivation to

56% of respondents say that motivation creates interest towards a job for employees & 44% of respondents say no that the motivation does not create interest towards a job.

54% of respondents say that motivated employee will increase the productivity level to large extent & 24% of respondents say it to some extent & 22% says that not at all the motivated employee will increase the Productivity level.

54% of respondents says that organization provide Recognition for performance & 46% of respondents says no that organization does not provide recognition for performance.

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36% of respondents say that manager gives Continuous feedback about the performance to large extent, 34% of respondents says to some extent, 30% of respondents say not at all.

55% of respondents say yes that the company teach employees to measure their own performance & 45% of respondents says no that the company does not teach employees to measure their own performance.

Organization provides facilities to employees that 43% of respondents say Insurance, 25% of respondents says Medical &32% of respondents says Canteen & there is no Transport for the employees.

65% of respondents say yes that Medical Facility &Insurance provided by company is highly motivate & 25% of respondents says no that it is not motivate for them.

34% of respondents are highly satisfied with basic needs, 26% of respondents are satisfied, 18% of respondents say no opinion, 12% of respondents are dissatisfied, and 10% of respondents are highly dissatisfied with basic needs.

32% of respondents say yes that company gives monetary reward to employees, 68% of respondents says no that company does not gives monetary reward to employees.

Monetary reward the organization provides for the employees are 56% of respondents says Gifts, 25% of respondents say Cash Awards, 19% of respondents say Allowances.

The activity which motivates them is 15% of respondents says Monetary Reward, 30% of respondents say Job Promotion &55% of respondents says Job Security & the company does not provide Transfer for them.

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54% of respondents say yes that the company makes the employee as part of team & 46% of respondents say no that the company does not make the employee as part of team.

45% of respondents says yes organization gives importance to Career development for employees & 55% of respondents says no that the organization does not gives importance to Career development for employees.

54% of respondents say organization gives Training programmed to improve productivity to large extent, 32% of respondents Says to some extent & 14% of respondents says not at all.

55% of respondents say that manager encourages employee to work independently to large extent, 33% of respondents say to some extent & 12% of respondents say not at all.

Organization collects the employee opinion through 56% of respondents says Suggestion Box,25% of respondents says Weekly Meetings & 19% of respondents says Monthly Meetings.

Hygiene factor will result in Job Satisfaction through 27% of respondents says Job Security,23% of respondents says Promotion,38% of respondents says Working Conditions,12% of respondents Says Pay & Allowances.

53% of respondents say yes that Job Enrichment provide true motivation & 47% of respondents say no that Job Enrichment does not provide true motivation.

25% of respondents says yes organization select best performance of employee in year & 75% of respondents says no that organization does not select best performance of employee in year.

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83% of respondents are proud to be the member of the organization & 17% of respondents are not proud to be the member of the organization.

7. SUGGESTIONS AND RECOMMENDATIONS

The company can provide transport facility to the employees. The management can invest certain amount in transport and fulfill employee needs. It improves productivity and on time on duty in the concern. In AFT Limited the management can provide transfer for the employees in which they can go to some other places and work for a certain period.

In AFT Limited, the organization is not giving more importance to the career development for the employees, so it basically affects the employees future. In that case the company should concentrates on career development for the Employees.

The organization can select the best performance for every year in which it will make the employee to perform well during the training period and during the work time.

The organization can give training programmed in systematic programmed for the employees to improve the productivity level in the concern.

In the company the manager can give feedback for the employees regarding their performance in which the employees can correct their mistake and they can perform well during the work time.

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In the organization the manager can encourage the employees to work independently in which they can do their job well, and it will be motivating aspects for them.

7.1 CONCLUSION
The study conducted at Anglo French Textiles Limited deals with the Employee Motivation. In this present situation, every organization should provide motivation to the employees. Employee motivation will help to increase performance standard of an employee as well as concern. In the duration of the project I have a lot of experience. There are various factors that influence motivational factors such as salary, working conditions, training and job satisfaction. Motivation is the ultimate function of so many individuals attitudes together. It is very complex, complicated and personal experience. It is difficult to determine the relative importance of the factors influencing motivation as the importance varies with time and individuals. The motivation is the continuous process of the organization has come to conclusion that the employee motivation plays a significant role in modern organization

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The study only based on employs side. It is not covering the staffs.

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Title Department

: ----------------------------------------------------------: -----------------------------------------------------------

1. Less 3 Years SALARY: 1. Below 400

2. 03-05 Years

3. 05-08 Years

4. Above Years

2. 401- 650

3. 651-850

4. Above 851

Q1. What factors affect your motivation towards work? 1. Financial factors 2. Moral factors (Fear, Job security, Working environment, Others) 3. Acknowledgement and Praise Q2.What is the factors which will not motivate you from doing work? 1. Lower level of salary 2. Poor working environment 3. Poor scope for personal development Q3. What is your level of satisfaction from the work? 1. More than satisfied 2. Satisfied 3. Not Satisfied

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Q4.What is the things you like best about your working place? 1. People and working conditions 2. Financial incentives 3. Challenging jobs Q5.Are you satisfied with the compensation received for your services? 1. Yes 2. No Q6.Are you provided with incentives other than the financial compensation? 1. Yes 2. No Q7.Are you provided with other opportunities for your personal and professional development? 1. Yes 2. No Q8.Does the management system allows open ended communication with the employees? 1. Yes 2. No Q9.What kind of relationship do you have with your superiors? 1. Personal 2. Professional Q10. Do you think that the incentives provided by the management influence you towards work? 1. Influence 2. Doer not influence 3. No opinion

Q11. Does the company provide any motivation to the employees? (a) Yes (b) No
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Q12. Are you satisfied with the motivation that the company provides? (a)Yes (b) No

Q13. Does the motivation create any interest towards a job for employees? (a)Yes (b) No

4. Do you think that a highly motivated employee will increase the productivity level? (a) To Large Extent (b)To Some Extent (c)Not at All Q14. Does the organization provide recognition for your employees? (a) Yes (b) No

Q15. Does the manager give continuous feedback about your performance? (a)Yes (b) No

Q16. Does the company teach the employees how to measure their own performance? (a)Yes (b) No

Q17. Does the organization provide the following facilities to the employees? (a)Insurance (b) Medical (c) Transport (d) Canteen

Q18. Does the medical facility and the insurance provided by the company is highly motivate to you.? (a)Yes (b) No

Q19. Are you satisfied with the basic needs?

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(a) Highly Satisfied Dissatisfied

(b) Satisfied

(c) No opinion

(d) Dissatisfied

(e) Highly

Q20. Does the company give monetary reward to the employees? (a)Yes (b) No

Q21. What type of monetary reward does the organization provides for the employees? (a) Gifts (b) Cash Awards (c) Allowances

Q22. Which activities motivate you the most? (a)Monetary Reward (b) Job promotion (c) Job security (d) Transfer

Q23. Does the company make the employee as part of team? (a)Yes (b) No

Q24. Do you think that the organization gives importance to the career development for employees? (a)Yes (b) No

Q25. Does the organization give training programmed in systematic manner to improve productivity? (a) To Large Extent (b) To Some Extent (c) Not at All

Q26. Does the manager encourage employees to do your work independently? (a) To Large Extent (b) To Some Extent (c) Not at All

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Q27. In which way does the organization collect the employees opinion? (a) Suggestion Box (b) Weekly Meetings (c) Monthly Meetings

Q28. Which of the following hygiene factor will result in job satisfaction? (a)Job security (b) Promotion (c) Pay and Allowances (d) Working Conditions

Q29. Does the job enrichment provide true motivation? (a) Yes (b) No

Q30. Are you proud to be the member of the organization? (a)Yes (b) No

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References ,, 1. http://www.kemapco.com/ 2. http://www.ehow.com/about_6547505_effect-motivation-employeeperformance.html. 3. Schermerhorn/Hunt/Osborn (2005) Organizational Behavior, Ninth Edition. 4. http://www.managementstudyguide.com/importance_of_motivation.htm. 5. http://www.whatishumanresource.com/employee-motivation-introduction. 6. http://www.academia.edu/769482/ 7. Research Journal of International Studies - Issue 14 (May, 2010) 54. 8. "Managerial.Motivation."123HelpMe.com.12.Dec.2012 <http://www.123HelpMe.com/view.asp?id=166128>. 9. http://gettingclevertogether.com/index.php?s=motivation. 10. http://humanresources.about.com/od/employeesurvey1/g/employee_satisfy.htm . 11. http://www.humanresources.hrvinet.com/importance-of-employee-satisfaction/ 12. http://ozgurzan.com/management/management-theories/theories-aboutmotivation/ 13. http://www.bized.co.uk/virtual/bank/business/planning/types/theories.htm. 14. http://www.managementstudyguide.com/herzbergs-theory-motivation.htm. 15. http://www.managementstudyguide.com/maslows-hierarchy-needstheory.htm.

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