MANAGEMENT OF MOTIVATION AND WORK ENVIRONMENT ON THE

SUCCESS OF THE ORGANIZATION – A CASE STUDY OF ESSAR STEEL

Introduction

Essar Steel is one of the biggest steel manufacturing company in India, which
believes in providing the employees with a work environment, which helps in
their holistic growth, and motivates them. This study looks at all the initiatives
taken up by Essar Steel to manage the work environment and steps taken
towards motivating the employees to obtain the highest amount of productivity
from the employees and retain them. It also studies the motivation level of
employees of Essar steel.

One of the problems of modem era of industrial civilization has been the work
environment viz-a-viz motivation of employees, especially in the large size
enterprises. It implies that by introducing latest machines, technology and the
technical know-how alone cannot bring about economic prosperity unless a
band of satisfied workers and contended workmen with adequate training are
deployed to work in safe and congenial work situation. A corollary to this well
settled fact is that a workman feels fully satisfied about the job he is doing if
he feels that he has reasonably good quality of work life. He cannot be
expected to put in his best of skill, experience, technical knowledge etc. in the
allotted assignment if he feels unconcerned and lost personality. Thus it is
subject of serious concern equally for the entrepreneurs, workmen, research
scholar, economist, and sociologist.

The present study is, therefore, focused on this importance of human-

relations field that has multi-dimensional psychological aspects, component of
work environment & motivation leading to job satisfaction. The contributory
factors that are responsible for job satisfaction or job dissatisfaction fall into
the following categories:

1. Individual factors

2. Organization factors
 3. Extra Organization factors

Motivation is the process that account for an individual’s intensity, direction,

and persistence of effort toward attaining a goal. We have to consider the
quality of effort as well as its intensity. Effort that is directed toward, and
consistent with, the organization’s goals are the kind of effort that we should
be seeking. Finally, motivation has a persistence dimension. Continued
unsuccessful rational coping behaviour may cause frustration, conflict, and
stress and eventually lead to forms of irrational coping behaviour. Frustration
may erupt in several awkward forms:

Aggression: Aggression is an act of force against someone or something.

Aggression can be verbal or physical.

Rationalization: here an individual may blame someone for his inability to

accomplish a task.

Fixation: sometimes frustration can freeze old and habitual responses and
prevent the use of new and more effectual ones.

Regression: sometimes frustrated person tend to give up constructive

attempt at solving their problems and regress to childish behaviour.

Resignation: one way of dealing with prolonged frustration is to leave the

field or withdraw. The withdrawal may be physical, as in fight from the scene,
or it may be internalized and carried to the extreme lethargy seen in apathy.

Table 1: WORK ENVIRONMENT MANAGEMENT AT ESSAR STEEL LTD.

Areas Of Focus Initiaves

1. Training & - Technical
Development - Behavioral
- Leadership
- Functional
- Managerial
- Coaching & mentoring
2. Performance - Identification of Key Performance
Management Areas
- Preparation of Individual
 Learning Plans
- Biannual Appraisals
- Proper feedbacks
3. Leadership - Business Leadership Programs
Programs - Global Leadership Programs
- Graduate Executive Program
4. Talent Management - Executive Talent Review
- Key Account Talent
Management
5. Learning - Learning Hour
- Learning Tree
- Essar Corporate University
- Essar Learning Centre
- Gurukul
6. Employee - Employee Connect Initiative
Engagement - Employee Assistance Program
- Health and Wellness Initiatives
7. Inclusive Initiatives - Essar Privileges
- Samanvay Hobby Groups
- Moves from Stress to Chill
- Essar Care
- Diversity and Tolerance
Source: www.essarsteellimited.com

MATERIALS AND METHODS

The empirical research study based on descriptive research design was

undertaken using primary and secondary data. This study is used to analyze
and record how far administration and management in Essar Steel Ltd. have
rendered socio-economic justice towards the workers associated with them
and to record our findings on the pattern relating to motivation to work and to
find out the problems in this area and to record our suggestions.

Essar Steel Limited has been taken as the universe for detailed study on work
environment vis-à-vis motivation as perceived by a cross section of
employees including both executives and non-executives. The investigation is
done by analysing secondary data and collecting primary data from 60
respondents through questionnaires.

The objective of the study is to study the effectiveness of the management

process in Essar Steel Limited with respect to motivation. The study is mainly
focused on investigating the basic factor influencing motivation in Essar Steel
Ltd. It is directed towards finding out the impact of work environment and
behavioural factors vis-a-vis motivation and productivity.

Table 2: AWARDS PRESENTED TO ESSAR STEEL LTD. FOR THEIR

WORK ENVIRONMENT AND HR PRACTICES

Si. No. Award Name Year Awarded By

1. National Safety Council of 2017 National Safety Council

India (NSCI) Safety
Awards 2018

2. Safety Innovation Award 2017 The Institution of Engineers

(India)

3. 7th Annual Greentech HR 2017 Greentech Foundation

Awards

4. Ispat Suraksha Purashkar 2017 Joint Committee on Safety,

Health and Environment in
the Steel Industry (India)

5. DCCIA Pune Award for 2016 Deccan Chambers of

Excellence (Best HR Commerce Industries and
pactices)

6. Global CSR Excellence 2015 The World CSR Congress

and Leadership Award for
Women Empowerment

7. QCI-DLShah National 2015 Quality Circle of India

Award for Quality Circle
Project

Source: www.essarsteellimited.com
Table 3: Response of employees to various areas of concern and their
scores

Si. Areas of Concern No. of Respondents & Their Scores

No.
Strongly Agre Don’t Disagr Highly
Agree e (4) Know ee (2) Disagree
(5) (3) (1)
Basic Need
1. Special wage increase should be 29 24 7 0 0
given to employees who do their (145) (96) (21) (0) (0)
job well.
2. Individual incentives bonuses 35 21 4 2 0
would improve the performance (175) (84) (12) (4) (0)
of employee.
Safety Need
1. Better job description would be 52 8 4 0 0
helpful so that employees will (260) (32) (12) (0) (0)
know exactly what is expected of
them.
2. The company retirement benefit 22 28 10 0 0
and stock programs are important (110) (112) (30) (0) (0)
factor in keeping employees in
their job.
Belongingness Need
1. Supervisor ought to work hard to 52 6 2 0 0
develop a friendly working (260) (24) (6) (0) (0)
atmosphere among their people.
2. Management would show more 48 10 2 0 0
interest in the employees by (240) (40) (6) (0) (0)
sponsoring social events after
work hours.
Esteem Need
1. Individual recognition for above 53 7 0 0 0
standard performance means a (265) (28) (0) (0) (0)
lot to employees.
2. Employees want to feel that their 29 7 7 0 0
skills and capacity are put to use (225) (28) (21) (0) (0)
on their jobs.
Self-Actualization Need
1. Jobs can be made more 36 19 4 0 0
challenging and stimulating. (210) (76) (12) (0) (0)
2. Feel comfortable with the physical 28 18 11 0 3
working condition available with (140) (72) (33) (0) (3)
me.
3. I have some opportunity to try out 28 24 8 0 0
new ideas at work. (140) (96) (24) (0) (0)
4. Feel that organizational policies 8 28 19 2 2
facilitate achievement of (40) (112) (57) (4) (2)
individual goals
5. I feel that I am being paid 5 20 34 0 1
sufficiently for the job I am doing. (25) (80) (102) (0) (1)
Miscellaneous
1. I discuss my personal problem 22 18 16 0 14
with my superiors/ immediate (112) (72) (48) (0) (14)
boss.
2. I get enough support from my 36 18 6 0 0
subordinates. (180) (72) (18) (0) (0)
3. I feel that whatever I want to 30 21 9 0 0
convey to my (150) (84) (27) (0) (0)
superiors/subordinates/peers is
properly communicated to them.
4. My superior are quite frank when 33 17 10 0 0
they discuss any point with me. (165) (68) (30) (0) (0)
5. My subordinates and peers seek 31 20 9 0 0
my advice even for their personal (155) (80) (27) (0) (0)
problems.
Source: Primary Data

Data Analysis and Interpretation

Data analysis from the data collected from employees at Essar Steel ltd.
revealed certain factors, which affect the motivation and work environment of
the employees.

Factors affecting the motivation and work environment of the

employees:

With this research the following points were found:-

1. 48.5 % of the respondents strongly agree that special wage increase

should be given to employees who do there job well and out of the
remaining 51.5%, 40 % agree to the same indicating that employees
who are doing their job with hard work expect monetary reward
appreciation.
2. 58.3% strongly agree to the statement that individual incentive
bonuses would improve the performance. This indicates that
employees feel that there is a very strong linkage between monetary
rewards and performance on the job. This indicates that in order to
increase the employee performance, management should provide
annual bonuses to all its employees.

3. 86.7% of the respondents strongly agree that a proper job description

will help the employees to perform better at their job. This indicates
that knowing by what is exactly expected from them on the job and
what all responsibilities fall under their job profile will help them to
understand their job better and also at the same time it gives a sense
of clarity for the employee to do their job more confidently and safely.

4. 46.6% of respondents agree to the statement that company retirement

plans and stock options are important factors in keeping the
employees in their jobs. This indicates that people feel a sense of
security that once they retire from their work the retirement plans are
there, as a safety blanket to take care of their future basic needs. This
also indicates that management should have a good retirement plan
and stock option plans to retain its employees.

5. 86.7 % strongly agree to the fact that a role of the supervisor is of the
highest importance in creating a work environment, which thrives
higher motivation and better performance from employees.

6. After work socializing events by management are very important for

employees, as it is evident from the response in table 8. 80% of the
respondents strongly agree to the statement that management must
keep on organizing social events for employees to create an
environment wherein employees feel comfortable or rather enjoy
working for the organization.
 7. 91.7% agree to the fact that challenging and stimulating work makes
employee more excited about their work. Challenging jobs makes the
employee work harder and break the monotony of their routine work.

8. Only 46.7 agree to the same and 13.3 strongly agree. This is because
organizational policies have such a wide range of function that for
every employee it plays a different role.

9. 50% strongly agree, and 35% of the respondents agree that there is
proper communication channel and whatever they want to
communicate to their superiors/subordinates/peers is properly
communicated.

10. 60% respondents agree that peer and subordinate support is very
important for a better work environment.

Table 4: Calculated overall averages for all the areas of Concern

Categories of Question Score Overall

Investigation Nos. Average Average
1. 4.36
Basic Need 4.43
2. 4.51
1. 4.86
Safety Need 4.5
2. 4.2
Belongingness 1. 4.83
4.7
Need 2. 4.76
1. 4.9
Esteem Need 4.6
2. 4.36
1. 4.48
Self- 2. 4.13
Actualization 3. 4.33 3.99
Need 4. 3.58
5. 3.47
1. 3.9 3.9
2. 4.5 4.5
Miscellaneous
3. 4.32 4.32
4. 4.38 4.38
 5. 4.36 4.36
Source: Calculated from Table 2 Scores

Findings and Implications

1. Physiological need with an overall average of 4.43 supports that money

is a very important factor in motivating the employees to perform good
on the job and if the employees are performing good on the job and
working hard, they expect that the management should provide them
with higher salary.

2. The overall average score for safety needs is coming to 4.5, which
indicates that an employee needs to feel secured and confident at the
job to give its best to his job and perform better.

3. The overall average of belongingness need is 4.7 indicating that it is

extremely important for the employees, by cultivating a friendly
relationship with the team members and subordinates and by
management must keep on organizing social events for employees.

4. With an overall average of 4.7, belongingness need is the most

important for employees than any of the other needs i.e physiological
need (4.43), safety need (4.5), esteem need (4.6), and self-
actualization need (3.99).

5. Self-actualization need is the least important compared to all the other

needs with an overall average of 3.99. This indicates that employees
are more concerned with fulfilling there other needs than the self-
actualization need.

6. With an overall average of only 3.9, discussing personal problems with

subordinates is not a desirable part of work environment of an
 employee. It depends on personal outlook of each individual and thus
cant be generalized.

7. The average of 4.5 shows that support from colleagues and

subordinates are very important for a team to function smoothly and
obtain good results. It also creates an environment where helping each
other becomes a part of routine functioning. This leads to a motivated
team.

Figure 1: Trend of EBITA, Personnel Expenses & Admin Expenses by

ESSAR STEEL LTD.

3000

2500

2000
EBDITA (In Crores)

1500 PERSONNELS EXPENSES

(in million)

1000 ADMIN EXPENSES (in

million)

500

0
2005-06 2006-07 2007-08 2008-09 2009-10

Source: ESSAR STEEL LTD. Annual Reports

Conclusion

In the study of the effect of work environment and motivation on the success
of the organization with keeping Essar Steel Limited in focus, it can be
concluded that there is a positive relationship between the two.
Human resource is one of the most important resources for an organization.
In the present scenario, where switching jobs is easy and there are plenty of
employers who keep on recruiting skillful workers, attracting new employees
and retaining the existing employees is of paramount importance for all the
organizations. The most talented human resource and the hardest working
human resource can help the organization to succeed. Creating a healthy and
fun work environment is extremely important to attract new employees
towards the organization. To get the best of the employees to join the
organization, the companies have to create a workspace, which makes the
employees inclined towards joining the organization. At the same time,
organizations have to come up with strategies, which motivate the employees
to keep working hard and to keep on performing their best in order for the
organization to register profits.

In case of Essar Steel Limited, it was evident that the company is recruiting
some of the best talents available to them and it has plenty of retention and
motivation techniques, which are leveraged upon to get the best performance
from its employees. After looking at the various figures of profits and loss
accounts for over the years and the balance sheets, it is clear that the
organization is creating a healthy environment for its workers and motivating
them in the right way.

References

1. Licke E.A.; What id job satisfaction? Organizational

Behaviour 1969; P.409
2. Kurt Lewill; Behavior modification in quality control, Academy
of Manasemi Journal Vol 18 (1975); P. 622-629
3. Kemp G.G.; Perspectives on group processes, Boston, 1970;
P. 102
4. Henton B.L.; The human group New York Harcourt brace &
wared, 1950; P. 102-107
5. Forbes; March 11,2000
6. http://www.essarsteel.com/section_level1.aspx?cont_id=Sye
3k6btpIw=&path=About_us_%3E_Awards
7. https://economictimes.indiatimes.com/essar-steel-
ltd/profitandlose/companyid-13782.cms
8. https://archive.essar.com/upload/pdf/EssarSteel_AR_2016_1
7.pdf
9. Mishra Ramesh, Steel Production by 2020, TC McGraw Hill,
P.17.