______________________ _____________________________________ _

BACHELOR OF BUSINESS ADMINISTRATION

JANUARY 2017

BBGO4103

ORGANISATIONAL BEHAVIOUR

__________________________________________ _______________

NAME : JOANNE NG MAY HONG

MATRIC NUMBER : 941209045256001

NRIC NUMBER : 941209-04-5256

H/P NUMBER : 011-1677 9466

EMAIL ADDRESS : soulcrazy@oum.edu.my

LEARNING CENTRE : Melaka Learning Centre

 CONTENT

1.0 Introduction…………………………………………………………………..1-3

2.0 Definitions on motivation…………………………………………………….4

3.0 Motivation Theories

3.1 Maslow’s Hierarchy………………………………………………………..5-6

3.2 Two Factor Theory…………………………………………………………7-8

3.3 Equity Theory………………………………………………………………9-10

3.4 McClelland’s Theory………………………………………………………11-12

4.0 Financial motivators………………………………………………………….13-14

5.0 Non Financial motivators……………………………………………………..15-17

6.0 Conclusion…………………………………………………………………….18

7.0 References…………………………………………………………………….19

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1.0 Introduction

Gibraltar BSN Life Berhad is a growing life insurance company serving the life
insurance protection needs of Malaysian covering life protection, savings &
investments, retirement and more. Gibraltar BSN Life Berhad is owned by Prudential
Financial, Inc. (PFI) of the United States and Bank Simpanan Nasional of Malayisa.

The name 'Gibraltar' and their iconic 'Rock of Gibraltar' emblem refer to
Prudential Financial, their parent company with over 130 years of history and
financial strength in the United States. Clad in noble blue, these elements represent
our heritage and lineage to PFI. They have a network of 8 branches nationwide.
Meanwhile, Gibraltar BSN Life CEO Vincent Kwo said it will leverage on BSN's
eight million customer base, to whom it will market its life insurance products. BSN
has some RM13.25 billion worth of retail deposits and 399 branches
nationwide.We're bringing to Malaysia our expertise, that we've got over in many
other countries in the world. We're one of the largest life insurance companies
globally with US$1.1 trillion assets under management, 47,000 employees worldwide
working in 20 countries.

Similarly, ‘BSN’ is included in our name to signify our partnership with Bank
Simpanan Nasional, a brand with its own strong financial heritage in Malaysia. In
tandem, Gibraltar BSN combines international insight with local market expertise to
offer you unparalleled life insurance services.

1.1 Mission, Vision & Core Values

Gibraltar BSN Life Berhad's mission is to protect dreams. They believe every human
has a dream and they want to help protect it. At Gibraltar BSN Life, they are
committed to working with their customer to meet customer's current and changing
needs.

Gibraltar BSN Life has a vision to deliver different and better life insurance
solutions for all Malaysians. They aspire to be a provider of different and better life
insurance solutions for growing and protecting wealth for all Malaysians. Meanwhile,

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Gibraltar BSN Life Berhand's vision is driven by four main attributes which are
"Different and Better", "Quality products, service and people", "Collaborative
culture” and “trusted partner".

On the other hand, Gibraltar BSN Life has four core values. Firstly is Worthy of
Trust, Gibraltar BSN life keep their promises and are committed to doing business the
right way. Second is Customer Focused where they provide quality products and
services that meet customer's needs. Thirdly is Respect For Each Other, Gibraltar
BSN Life are inclusive and collaborative, and individuals with diverse backgrounds
and talents can contribute and grow. Lastly is Winning with integrity, Gibraltar BSN
Life are passionate about becoming an industry leader by achieving superior results
for our customers, shareholders and communities.

1.2 Organisation chart

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2.0 Definitions on motivation

‘Motivation' cmes from the Latin word movere, meaning ‘to move' (kreitner R.,
kinicki A., Buelens M., 2002) which means as fact, emotion, need and organic state
which encourages a person to take an action.

Motivation is a psychological feature that arouses an organism to act towards a

desired goal and elicits, controls, and sustains certain goal-directed behaviours. It can
be considered a driving force, a psychological one that compels or reinforces an
action toward a desired goal. For example, hunger is a motivation that elicits a desire
to eat. Motivation is the purpose or psychological cause of an action. This is the
process by which a person wants and chooses to act in a particular way.

David (1996) defines motivation as a need or desire that serves to

energize behaviour and to direct it towards a goal. Charles (2000) defined motivation
as psychological forces that determine the direction of a person’s behaviour, a
person’s level of effort, and a person’s level of persistence in the face of obstacles.
Frederick (1993) defines it as what drives or induces a person to behave in a
particular fashion, the internal forces which initiates, directs, sustains and terminates
all important activities. It influences the level of performance, the efficiency achieved
and the time spent on an activity.

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3.0 Motivation Theories

3.1 Maslow’s Hierarchy

The most well known content theory of motivation is the hierarchy of needs which
has been put forward by Abraham Maslow (1943). According to Maslow, people are
motivated by five types of needs and in order to motivate people to work more
productively there is a need to offer them opportunity to satisfy those needs. He
proposed that basic needs are organized in a hierarchy of pre-potency and probability
of appearance (Wahba and Bridwell, 1973). These needs include physiological needs,
safety needs, social needs, self-esteem and self-actualization.

Figure 3.1.1: Maslow’s hierarchy of needs theory

Maslow argued that once a lower order need is fulfilled, the next level of needs
in the hierarchy comes into play that is once employees satisfy the lower order needs
they will next consider the next level of needs. The other further argued that
unfulfilled lower needs dominate ones thinking and behaviour until they are satisfied
(Berl et al. 1984).

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 The core of Maslow's theory is to focus on finding out the level of hierarchy the
person is in and focusing on satisfying his/her needs and the needs above it. Maslow's
theory of needs has been wider recognized and is being practised by managers across
the globe. The theory's ease of understanding and intuitive logic makes it easy to
implement, but there is no empirical evidence to validate the theory and there is no
metric to measure the success of the theory after being implemented.

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3.2 Two Factor Theory

Herzberg proposed the Motivation-Hygiene Theory, also known as Two factor

theory (1959) of job satisfaction. According to the theory, people are influenced by
two factors: Satisfaction, Which is first and foremost the result of the motivator
factors. These factors help magnify satisfaction but have slight effect on
dissatisfaction. Dissatisfaction is principally the result of hygiene factors. These
factors, if inadequate or absent, cause dissatisfaction but their presence has little effect
on long-term satisfaction.

Herzberg's wrote in his theory that hygiene factor and motivational factor are
the two major element associated with satisfaction and dissatisfaction of an
individuals. (J. Beckford, 2002).

Figure 3.2.1: Differences between hygiene and motivator factors

The hygiene factors defined as needed to ensure an employee does not become
dissatisfied. Moreover, the typical of the hygiene factor which included working
condition, quality of supervision, job, company policies and administration. The
motivation factors are needed in order to motivate an employee into higher
performance and the typical motivation factors included achievement, interest in job,
growth and responsibility for task. In this case, Gibraltar BSN is using this two factor

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theory concept in their company and to make sure the employee enjoy the working
environment during their working time.

Herzberg believed that jobs do not motivate people but the environment that the
organisation gives them to work in and to get the best out of people, employers should
facilitate work environments that are conducive to employee satisfaction, harmony
and productivity.

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3.3 Equity Theory

The ERG theory is a spin off of the Maslow theory by Clayton Alderfer. The ERG
Theory is similar to Maslow as it also describes the needs of hierarchy. The ERG
Theory takes place in three steps, which are existence, relatedness, and growth.

The ERG theory is more flexible and states that an employee can be motivated
simultaneously by more than one need level. An example of this would be, if an
employee had met a goal on time and which satisfied their growth need, even though
their growth need had not been
satisfied.

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 Figure 3.3.1 Equity Theory

3.3.1 The existence Needs

Over here material existence requirements are mentioned. This group is the same as
what has been called by Maslow physiological and safety needs. In an organizational
context the existence needs are satisfied by money earned in a job and spending them
to obtain foods, clothing, shelter etc. In company, these needs play a vital role in a
worker's life. These needs urge him to get motivated and strive to get success.

3.3.2 Relatedness Needs

An employee desire to maintain important interpersonal relationships with pears,

superiors and subordinates in work context can be termed as relatedness needs.
Relatedness for an employee in an organization context includes the need to interact
with peers, receive recognition from the organization in the form of praise and awards,
and feeling secure around people. Organization satisfies employee relatedness by
creating a work environment that supports relationship between various levels and
department by promoting hormone and collaboration. Organizations also create the

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relatedness when it gives rewards, bonus etc to those employees who have achieve
their target.

3.3.3 Growth needs

These need correlate with Maslow's fourth and fifth levels of needs. These needs
seeks to fulfill an employee desires to by giving them an opportunity to complete the
allotted in a creative and productive manners, thereby build and enhance an
employee's self-esteem through personal recognition and achievements (Robbins &
Judge, 2007). By empowering employee the freedom to take some risks, the
organization not only benefit by availing an opportunity of more profit but also
employee management and leadership skills are polished.

Like physical growth, everyone wishes to get advanced in his corporate life. In
this category, a worker realises his potential and develop his skills and eventually
develop himself.

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3.4 McClelland’s Theory

Developed by psychologist David McClelland in the 1950s, this theory states that a
person's needs are "learned" or altered by social conditions and life experiences. In
particular McClelland identified three learned needs - Need for Achievement (nAch),
Need for Affiliation (nAff) and Need for Power (nPow) (McClelland, 1961).

Figure 3.4.1 three needs of individual behaviour

People with high nAch have a strong desire to assume personal responsibility
for performing a task, tend to set difficult goals, and have a strong desire for
performance feedback.

Individuals with high nAff tend to have little position power, have a strong need
to work through interpersonal relationships and try to avoid conflict and
confrontation.

According to McClelland, need for power is to make others behave in a way in

which otherwise they would not have been behaved. He also distinguishes between
two types of nPow which is personalized power and socialized power. People who
derive power by sheer dominance over others and who gain satisfaction by

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conquering others exhibit a need for personalized power. People who view power as a
means of helping others and derive satisfaction by achieving group/team goals exhibit
a need for socialized power.

The acquired needs theory can be a very useful tool for managers in various
organizational contexts. People who have high nAch are motivated more by the
prospect of achievement satisfaction, not money. In contrast, employees with a low
nAch perform their work better when money is used as an incentive (Shane, Locke &
Collins, 2003). Hence management can assign tasks and responsibilities and design
compensation structure accordingly.

It can also help managers determine the best 'employee-job' fit. For example
employees with high nAff can work as effective conflict mediators and do well in
client relationship management. As argued by J.L.Thomas et al.(2001) in their
empirical study of values predicting leader performance, long-term leadership success
can be associated with the individuals who require a low nAff, rather than those
requiring a high nAff.

The concept of nPow can also help management decision-making with respect
to personnel promotions as argued by Wagner and Swanson (1979) who state that "the
concepts of power needs and power styles should be central to personnel
considerations in organizations as well as to individuals who plan on pursuing
successful careers."

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4.0 Financial motivators

Financial rewards are something given or received in recompense for worthy

behaviour or in retribution for evil acts. Financial rewards are the pay and benefits
that workers receive in return for work, though others might include praise from
superiors and a sense of career progression. In modern society, business markets are
getting more competitive. As a consequence, firms in the markets try to use more
effective ways to achieve their goals, which include earning more profit and
expanding market share. Motivation, which is a way that encourages employees to
make an effort to work, is a feasible method to help firms to reach their targets.

If workers are motivated well, the business will get better productivity as well
as improved product quality, and earn good reputation. Hence, a business ought to
spend considerable time in thinking the best way to motivate employees, and there are
a significant number of different opinions about it, including financial motivation and
non-financial motivation.

4.1 Pay and Allowances

Here are some financial motivation in GBSN. First of all is the pay and allowances. It
includes basic pay, grade pay, and dearness allowance; pay increments, etc. Good pay
and allowances help GBSN to retain and attract capable persons.

This wages are paid per hour worked and workers receive money at the end of
the week. Then salaries are annual based on year’s work and are paid at the end of
each month. Money is the most direct way of motivate employees. People will think
about salary when are looking for a job.

Allowance is money you get on a regular schedule. Strictly, speaking allowance

means money you just get. It's different from money that you earn by working. That
money is called wages.

4.2 Bonus

A bonus is a supplemental payment as an incentive or reward for hard work, it is often

connected directly to performance, such as generating more sales or motivating a
production line to meet or exceed a quota. Knowing there is a tangible financial

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reward for increased productivity can be precisely the kind of motivation many
employees need.

In GBSN, they have contractual Bonus which was for confirmed employees in
Grade E and NE who had served the Company for full twelve months’ service at the
end of the financial year, will be paid a Contractual Bonus of one month’s basic
salary.

The Performance Bonus will only be payable when the Company is profitable.
Quantum payable will be determined by Board of Directors based on the criteria of
level of profitability of the company in financial period preceding and performance of
individual employees. Confirmed employees who have shown good performance but
have not completed full financial year services as at end of each financial year, shall
be eligible for the pro-rated quantum performance bonus, if declared.

4.3 Employees Provident Fund (EPF)

The Company and the employee shall contribute every month to the EPF according to
the following rate, the sum of which is calculated from the employee’s monthly wage.

4.4 Social Security Organisation (SOCSO)

SOCSO covers employees whose monthly wages do not exceed RM3,000.00.

However, employee who are already covered but whose monthly wages subsequently
exceed RM3,000.00 will continue to be covered by the Act, and enjoy the same
benefit.

4.5 Retirement Benefits

It includes the accumulated provident fund, gratuity, leave en-cashment and pension.
The provision of terminal benefits provides assurance to employees during the service
for their future. In general, a pension is an arrangement to provide people with an
income when they are no longer earning a regular income from employment.

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5.0 Non Financial motivators

Non financial rewards, in employment, a reward to a worker other than extra pay.
Many non-financial rewards are perks such as company cars, free private medical care,
and free pension entitlement. However, an employee may be rewarded, for example,
by being given a better office or a bigger budget to control, or by being given the
choice of where to take a posting in a company. Non-financial rewards can be very
cost-effective for companies because, in contrast with a pay increase, little or no
income tax or national insurance contributions are paid.

5.1 Medical Benefits

The Company provides medical benefits to all employees and their immediate family
members (spouse and children) during the tenure of the employee’s service with the
Company. The medical benefits cover the following;

a. Outpatient Medical: Treatment and medicine provided by a registered medical

practiser.

b. Health Screening

c. Hospitalization: Admission to a government Hospital or any other medical

institutions approved by the Company.

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d. Specialist Treatment: Medical treatment by Specialist in every case will be on the
recommendation of a registered medical practitioner or as referred to by the Human
Resources Department.

e. Dental : All treatments, excludes cosmetic.

f. Optical : Glasses and contact lenses, excludes cosmetic.

5.2 Group Term Life Insurance Plan (GTL)

All employees in GBSN are insured to Group Term Life (GTL) Insurance Plan by the
company which the coverage is according to employee’s Job grade as stipulated in the
GTL policy.

Payments:

• Death – upon employee’s death, the Company will pay the amount stated in the Plan

• Total and Permanent Disability – upon total permanent disability, the Company will
pay the amount stated in the Plan

• Dread Disease - upon diagnosis of any 36 major illnesses

5.3 Human Resource Development Programme

GBSN HRDP aims to develop employees to their full potential by offering a targeted
programme to support the successful completion of technical-related studies and to
develop appropriate business experience as well as core business discipline outside
their current roles.

In addition to courses on specific/general management held by external

trainer/vendor, employees are encouraged to take up programmes leading to a
qualification relevant to the field of life insurance. The programmes include Life
Office Management Association (LOMA), an American-based insurance examination.
In equipping employees with improved knowledge and understanding of the life

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Insurance operations, the following papers are compulsory for employees in Grade E
and Grade NE and those have not acquired any qualifications relevant to the life
insurance industry.

The company provides an attractive incentive scheme to encourage employees

to pursue and complete successfully professional qualifications in the field of
insurance. The incentive includes cash rewards upon passing every paper and the
reimbursement of course fees as specified in the

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6.0 Conclusion

Motivation is a reason or set or reasons for engaging in a particular behaviour,

especially human behaviour as studied in psychology and neuropathology. The
reasons may include basic needs (e.g., food, water, shelter) or an object, goal, state of
being, or ideal that is desirable, which may or may not be viewed as "positive," such
as seeking a state of being in which pain is absent. The motivation for a behaviour
may also be attributed to less-apparent reasons such as altruism or morality.

To conclude, employee motivation is very important for an organization and for

its productivity. There are a number of theories on the employee motivation. The
scientific method claims that motivation is the scientific management whose basis is
considering employees as an input to the production of goods and services. Unlike
scientific approach behaviour approach places emphasis on what motivates people
and seeks to identify and account for the specific influences that motivate people.

In addition to the theories, among the practical methods of employee motivation

is that employees should always like what they do in order to achieve optimal
productivity. In addition, employees should be rewarded according to their
performance, their reputation should be respected and also they should be given a
purpose in line with their interests. Following this ways of employee motivation,
managers will manage to motivate them and increase their productivity, fruitfulness
and create a good climate in their organizations. GBSN have done great work in
fulfilling employees needs whether in financial and non-financial motivators.

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7.0 References

Books

Kreitner R., kinicki A., Buelens M., 2002, p: 176. Organisational Behaviour (2nd
European Edition). London: McGraw Hill.

MASLOW, A. H. Conflict, frustration, and the theory of threat. J. abnorm. (soc.)

Psychol., 1943, 38, 81-86.

Beckford, J. (2002) Quality: A Critical Introduction. Second edition, Routledge, UK.

Wahba, M., A., & Bridwell, L. G. (1973). Maslow reconsidered: A review of research
on the need hierarchy theory. Proceedings of the 33rd Annual Meeting of the
Academy of Management, 514- 520.

Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The Motivation to Work (2nd
ed.). NewYork: John Wiley & Sons

Robbins, S.P. and Judge, T.A. (2007). Organizational Behaviour. (12th ed.) New
Jersey: Prentice-Hall.

McClelland, D. C. (1961). The achieving society. Princeton, NJ: Van Nostrand.

Shane, S., Locke, E. A., & Collins, C. J. (2003), “Entrepreneurial motivation”, Human
Resource Management Review, Vol. 13, pp. 257 – 279.

Wagner and Swanson (1979). Goldwyn: A Biography, p. 71)

Oxford Advanced Learner's Dictionary of Current English, 2000, p1128

Internet

https://www.gibraltarbsn.com/about-us/Our-Story/introduction.aspx

Charles (2000, 427) Frederick (1993:132) David (1996: 297). Motivation in a second
language learning. Retrieved from
www.motivationraising.com/definitions-of-motivation/ accessed10/10/2013.

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Kalpana R. (2013). Employee Motivation: Financial and Non-financial Techniques of
Staff Motivation. Retrieve from
http://www.businessmanagementideas.com/motivation/employee-motivation-financial
-and-non-financial-techniques-of-staff-motivation/496

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