141573569 project report organization
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1
ORGANIZATIONAL BEHAVIOR
A CASE STUDY ON
EMPLOYEE JOB SATISFACTION & WORK MOTIVATION
OF
Nepal Life Insurance Company Limited
Submitted By:
Ambika Adhikari
Kiran Maharjan
Niraj Paudel
Prakash Bhatta
Sharad C. Pyakurel
Tri Ratna Manandhar
(EMBA FALL 2012)
Submitted To:
Mr. Shanker Raj Pandey
Course Facilitator, Organizational
Behavior
Ace Institute of Management
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INTRODUCTION
The underlying concept of motivation is some driving force within individuals by which
they attempt to achieve some goal in order to fulfill their some needs or expectations.
People’s behavior is determined by what motivates them. Their performance is a product
of both ability level and motivation.
The relationship between the organization and its members is influenced by what
motivates them to work and the rewards and fulfillment they derive from it. The nature
of the work organization, styles of leadership and the design and content of jobs can have
a significant effect on the satisfaction of staff and their levels of performance. The
manager needs to know how best to elicit the co-operation of staff and direct their efforts
to achieving the goals and objectives of the organization.
Job satisfaction is a set of favorable environment that affects both administrative and
emotional feelings with which employees consider friendly/congenial for their work.
Locke (1976) has defined job satisfaction as the pleasurable emotional state resulting
from the appraisal of one’s job or job experiences. High productivity and job satisfaction
are closely related. A set of highly satisfied employees can guide an organization to the
peak of its success. Rust et al. (1996) suggested that intention to remain employed in an
organization is strongly influenced by the level of employee satisfaction and that overall
employee satisfaction is driven by satisfaction by managerial processes related to
employee welfare.
The different studies found different aspects as determinants of job satisfaction and work
motivation. Majority of the studies revealed that level of job satisfaction highly depends
on handsome salary, congenial promotional policy, supportive working environment etc.
In addition to these, organizational culture, relation with colleagues and superior,
participation in decision making etc also have influence on the level of job satisfaction.
But this study investigates some new aspects such as nature of work, attitudes of
supervisors, work environment, job security etc which also have an impact on the level of
job satisfaction and work motivation.
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COMPANY INFORMATION
Nepal Life Insurance Company Ltd. (NLIC) is a large organization consisting of more than
300 employees. It has 28 branches and 32 sub branches which has covered major part of
the country. Being in the business of selling life insurance products it is performing the
same job as the other insurers deal with "Life Insurance". Till May 2013, it has 60,941
registered agents. It has been successful to sale more than 700,000 life insurance policies
till May 2013.
The organization structure of the company is formed by seven directors, five from
promoters, one public director and one independent director. The chair person is elected
among the directors. The operating wing of the company is headed by the Chief Executive
Officer, in the corporate office. He is assisted by a Senior Deputy General Manager,
Assistant General Manager and departmental heads of underwriting and policy servicing,
finance, information technology, personnel and marketing. The branch offices which are
the operating offices of the company are headed by the branch managers who are
assisted by marketing and administrative staff in the office and by a network of agents in
the field.
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OB ISSUES TO BE EXAMINED
Behind the success of every organization motivation and job satisfaction of their
employees has an important role. If employees are not satisfied with the job there are
chances of absenteeism, low productivity, committing of mistakes, diverting energy for
different type of conflict, aggressive toward the company etc. so this study is conducted
on behalf of NLIC to identify the level of satisfaction in term of strongly agree to strongly
disagree on various job related factors.
Depending upon the personal need and hierarchy in organization different employees
motivates differently. For some employees financial factor is important and for others it
may be some nonfinancial incentives like award, appreciation, carrier development
trainings, opportunity to visit within or outside the country, etc. In this study we have
focused on employee motivation factors like their feeling about how much they are
valued by the organization, monetary motivation, job security, relationship with their
supervisor and their work environment. In general, some major objectives of this study
are outlined below:
To measure the level of job satisfaction of the employee of NLIC
To study the employees perception towards organization i.e. what they feel and
behave towards their organization.
To study the attitude of employees towards their work and organization as a whole.
To identify the major factors that motivates the employees.
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METHODOLOGY
Samples
In this study 22 employees were randomly selected from head office of NLIC, Kamaladi,
Kathmandu. No demographic variables such as age, experience, sex etc were considered
in selecting the sample. The study was conducted on various levels of employees across
different departments.
Variables Studied
Employee Motivation
Employee Job Satisfaction
Job Security
Employee - Supervisor Relationship
Work Environment
A five step scale was used to measure the level of job satisfaction of the employees of
NLIC. The responses of respondents were categorized into five groups namely: Strongly
Agree, Agree, Neutral, Disagree and Strongly Disagree. After getting the responses on
different organizational variables, the responses of each variable were added to get the
proportion of the employee satisfaction level across different variables.
Collection of data
A well-structured questionnaire was prepared for the purpose of collection of data. This
study followed both personal survey with 22 random employees across different
departments and interview with the key informant - Mr. Agam Mukhia , Assistant General
Manager and Head of HR Department. Some of the employees do not feel free in
answering the questionnaire. It was possible to get answer after assuring them about
confidentiality of their information.
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ANALYSIS
The collected data has been analyzed to identify the level of satisfaction in a scale that
ranges from strongly agree to strongly disagree on various job related factors as shown in
Table1 and Table 2 below:
QN Question Strongly
Agree Agree Neutral Disagree
Strongly
Disagree
1 I see a good future for myself in
this organization. 1 9 9 2 1
2
There is a clear and effective
system of appraisal and carrier
development in this organization. 1 7 5 7 2
3 I feel valued by my organization. 2 7 8 4 1
4
Financial incentives motivates me
more than nonfinancial
incentives. 0 10 7 4 1
5 I am satisfied with my present
salary. 0 5 7 8 2
6
The employees in this
organization feel secured in their
job. 1 3 11 5 2
7
I am satisfied with the retirement
benefits available in this company
and it is sufficient for me. 0 0 5 5 12
8
I am applauded and encouraged
by my supervisor when I perform
a 'good job'. 1 10 7 3 1
9
In my professional judgment I
would say that my supervisor is
objective and fair in my ratings. 1 8 9 2 2
7
10 I work in a safe, healthy and
comfortable environment. 1 6 9 4 2
11
I have the necessary tools,
adequate working space and
appropriate equipment to
perform my duties effectively. 0 6 7 7 2
12
The possibility of getting a
promotion influences my
performance 4 14 2 1 1
Total 12 85 86 52 29
Table 1: Responses on the different factors of Job Satisfaction and Motivation
From Table1 it is revealed that around 85% of the sample employees are not satisfied
with the current retirement benefits and the plans, 46% are not happy with their current
pay, 50% of the employees believe that their supervisor encouraged them whenever they
perform good job. Majority of the employees believe that the appraisal and promotion at
NLIC is based on individual performance and their supervisors are not biased. Nearly
45% of the employees believe that they are provided with adequate working space,
necessary tools and comfortable and healthy work environment. Around 77% of the
employee agreed that financial incentives motivate them more than the non financial
incentives, which shows that the employee at NLIC are more inclined towards monetary
motivation. More than 50% of the employee see good future in NLIC and feel valued by
the organization.
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S.N Satisfaction Factor Strongly
Agree Agree Neutral Disagree
Strongly
Disagree
1 Motivation (QN. 1,12) 5 23 11 3 2
2 Value In organization (QN. 2,3) 3 14 13 11 3
3 Monetary Motivation(QN. 4,5,7) 0 15 19 17 15
4 Job Security (QN 6) 1 3 11 5 2
5 Supervisor Relationship (QN.
8,9) 2 18 16 5 3
6 Work Environment (QN. 10, 11) 1 12 16 11 4
Total 12 85 86 52 29
Proportion (%) 4.54% 32.20% 32.57% 19.70% 10.99%
Table 2: Tabular Summary of overall Job Satisfaction and Motivation variables
Figure 1: Bar Chart of overall Job Satisfaction and Motivation variables at NLIC
From Table2 and Figure1 it is revealed that around 33% of the sample employee are
neither satisfied nor dissatisfied with the present job satisfaction and work motivation
level, 37% agree that the current job satisfaction and motivation level is satisfactory and
0
5
10
15
20
25
Motivation Value Inorganization
Monetary Job Security SupervisorRelationship
WorkEnvironment
Strongly Agree
Agree
Neutral
Disagree
Strongly Disagree
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remaining 30% are not satisfied with their current job and work. From the table it is
clearly shown that the agree side of the measurement scale is heavier than the disagree
side of the measurement scale, which advocates that the overall job satisfaction and work
motivation level is good at NLIC.
From the result of this study it is revealed that the overall satisfaction of the employee of
NLIC is at the satisfactory level. But from the analysis of the individual aspect of job only
one area (retirement benefits) is identified sources of dissatisfaction. On the other hand,
six different aspects of job areas (present salary, career development & appraisal system,
value by the organization, job security, employee-supervisor relationship and work
environment) are identified as sources of satisfaction. The overall result shows that the
majority of the employees agree that the job satisfaction and work motivation level at
NLIC is satisfactory. At a glance the study shows that the employees of NLIC are
significantly satisfied.
CONCLUSION
The study tried to analyze the current job satisfaction and work motivation level of
employees at NLIC. The variables that were studied for measuring the employees
satisfaction level are work motivation, job satisfaction, job security, employee-supervisor
relationship and work environment. The result indicated that retirement benefits are
identified as one of the sources of dissatisfaction among employees at NLIC. On the other
hand, six different aspects of job areas namely present salary, career development &
appraisal system, value by the organization, job security, employee-supervisor
relationship and work environment are identified as sources of satisfaction. The
interview with the top management and the findings from the study revealed that the job
satisfaction and work motivation level at NLIC is satisfactory.
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PERSONAL REFLECTION
Working in a group is learning from others. This group assigned for completing the
assignments of Organizational Behavior is very unique in the sense that the composition
of this group is totally different from others. Though all the members of this group are
classmates, the group members seemed totally new to each other. During the group
works we had a lot of interaction directly and indirectly. This helped to strengthen our
personal relationships. All the group members are quite friendly but a couple of them
could not contribute in the assignments due to various reasons. However, we did not
experience any kind of obstructions or ill feelings because of that. All the jobs were
shared for feedback through e-mails to the group members. This helped in unanimous
decision making. We shared our responsibilities as per our time availability and
expertise. This helped to divide the workload. Sharing of different ideas and learning
from them is the greatest strong point of any group work and non-participation of some
members is a negative side of it. These aspects were seen in our group also. Overall this
has been an interesting learning experience for me.
Individual Contribution and Task division:
1. Selection of case study topic and selection of organization
Time Taken: 5 hours
Contributors: Ambika Adhikari, Kiran Maharjan, Niraj Paudel, Prakash Bhatta, Sharad Pyakurel, Tri Ratna Manandhar
2. Questionnaire and Interview preparation
Time Taken: 8 hours
Contributors: Ambika Adhikari, Kiran Maharjan, Niraj Paudel, Prakash Bhatta, Sharad Pyakurel, Tri Ratna Manandhar
3. Take Survey and Interview with top management at NLIC
Time Taken: 6 hours
Contributors: Ambika Adhikari, Sharad Pyakurel, Tri Ratna Manandhar
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4. Survey questionnaire Analysis and Interview Analysis
Time Taken: 15 hours
Contributors: Ambika Adhikari, Sharad Pyakurel, Tri Ratna Manandhar
5. Case Study Analysis
Time Taken: 3 hours
Contributors: Ambika Adhikari
6. Report Preparation
Time Taken: 6 hours
Contributors: Ambika Adhikari, Sharad Pyakurel, Tri Ratna Manandhar
7. Presentation Slides Preparation
Time Taken: 3 hours
Contributors: Sharad Pyakurel
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APPENDIX
Survey Questionnaires:
1. I see a good future for myself in this organization.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
2. There is a clear and effective system of appraisal and carrier development in
this organization.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
3. I feel valued by my organization.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
4. Financial incentives motivates me more than nonfinancial incentives.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
5. I am satisfied with my present salary.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
6. The employees in this organization feel secured in their job.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
7. I am satisfied with the retirement benefits available in this company and it is
sufficient for me.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
8. I am applauded and encouraged by my supervisor when I perform a 'good
job'.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
9. In my professional judgment I would say that my supervisor is objective and
fair in my ratings.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
10. I work in a safe, healthy and comfortable environment.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
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11. I have the necessary tools, adequate working space and appropriate
equipment to perform my duties effectively.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
12. The possibility of getting a promotion influences my performance.
⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree
Key Informant Interview:
Mr. Agam Mukhia, Assistant General Manager and Head of HR Department, NLIC
Q. Have you ever done a job satisfaction survey in your department or
organization?
Not recently. But I carried a job satisfaction survey in the head office and several other
main branches of Nepal Life Insurance Company throughout Nepal including the
branches in Kathmandu and Biratnagar.
Q. What was the average level of job satisfaction then?
It was quite good. May be it is because the survey was done internally. But, I did the
survey in the name of someone from outside.
Q. What is the turnover rate in your organization?
The turnover rate is minimal. However, it is high in the marketing department. People in
marketing easily get good offers from many places. There was also a trend of entire teams
leaving a company as they are offered better jobs or salaries in similar newly formed
companies. I did not experience such problems in the other departments.
Q. How many times did you experience an entire team leaving?
I did not experience an entire team leaving the organization. But many from a single
department quit in a span of time. Even the CEO has left the organization when he formed
a new company himself.
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Q. Do you face any kind of deviant workplace behavior, absenteeism, irregularity,
frustration etc. in your department or organization?
I know my employees are not cent per cent satisfied with their job and organization. But,
I have not noticed such signs in my employees directly. Moreover, my employees are
always full of workload and new challenges so, they may not have enough time for these.
Q. What are the employee motivation factors in your company?
I believe there are plenty of motivation factors in my company. Some of them are:
competitive salary, bonus, transportation facility, easy loan. Marketing staffs also get
mobile bill payment. Staffs can get loans equivalent to one year's salary from the
company at the rate of 6% per annum. They can easily pay back the loan deducted
monthly from their salary. After two years of service in the company they get 70%
payment for bike from the company.
Q. What kind of motivation is more liked by your employees? Which one have you
found to be more effective?
I usually get demands for skill based, on the job and career development trainings from
many departments. These kinds of trainings have been quite common in our company
and they have been very effective to increase their motivation level.
Q. From our questionnaire survey we have found that a majority of respondents
have expressed their strong dissatisfaction over the retirement benefits in your
company. What is your comment to that?
Retirement benefit depends on the maturity of the company. It is true that the retirement
benefit in our company is low compared to other established and old organizations. But,
it is within the average of similar companies in the market. We are providing retirement
benefits as per the amount of our company's retained earnings. The score in your survey
is not clear what the basis of comparison is. If the employees compare our decade old
company's retirement benefits with other old and established companies and
government agencies, the result is agreeable.
15
Q. What is the main basis of promotion in your company?
There is set procedure of promotion in our company. Every employee is scored on the
basis of their qualification, experience, performance and appraisal from the concerned
department. The decision is made by the CEO till the officers level and the HR committee
comprising the board of directors decide on the higher level staffs. So, promotion is a
regular and unbiased process here.
Q. But many of the survey respondents have considered performance as the major
factor of promotion. How important is it?
Performance is an important factor of promotion but it is not the only one. However, the
marketing staffs get different benefit packages like long holiday trips in and outside the
country, recreational packages etc. on completion of certain set targets.
Q. Do you have other motivations to the staffs like on the job rotation?
We are thinking of rotating some staffs on the job. This will help us to appoint people
immediately when someone leaves the job. But, many admin and finance staffs do not like
the jobs that require direct dealing with customers. We are seriously thinking of making
on the job rotation compulsory in our company. I personally think this is good way
keeping employees fresh in their jobs. For them it will be a new job full of excitement
every day.