research paper on motivation in pharma industry of pakistan

7/30/2019 Research Paper on Motivation in Pharma Industry of Pakistan

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MOTIVATIONthrough

Compensation and Working Environmentin

Motivation through Compensation and Working Environment

in Pharma Industry of Pakistan

Pharma Industry of Pakistan

Submitted to:

Mr. Nabeel Arif

Submitted by:

M. Amir Mushtaq (Leader) EXMBAFAL12058M.Zeeshan Munir EMBAFAL12019Rehan Baber EXMBAFAL12062

Mehroze Arshad EMBAFAL12008

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CONTENTS

Abstract.3

Literature Review .4

Research Methodology 8

Statistical Data . 9

Findings 14

Conclusion 16

Guidance for Further Research 17

Reference .... 18

Questionnaire 20



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ABSTRACT



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In any organization employee motivation is the key factor for organizational

performance. Previous studies have shown positive impact of Working

Environment and Compensation on employees motivation. In this study a

sample of 100 Pharma Employees was taken by adopting non probabilityconvenient sampling, to investigate the relationship between Motivation &

Working Environment and Employee Motivation. Pharma Employees found

not highly motivated as a result of working environment and compensation.

Result showed there is a highly positive relationship of independent

variable over dependent variable.


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LITERATURE REVIEW

Introduction

A literature review is a clear and logical presentation of the relevant

research work done before in the same area of investigation.Over and over again studies (Bacon et al, 1996; Deshpande and Golhar,

1994 and Julien, 1998) have emphasized that employees are key to

maintaining a competitive edge by a business. To be successful in a global

market, a firm needs a highly motivated, skilled and satisfied workforce

that can produce quality goods at low costs (Wagar, 1998).

RESEARCHERS VIEW

Figure: Compensation and Work environment effect on

Employee Satisfaction and Performance.

(Emmert and Tamer)

Compensation

Basically compensation refers to all forms of financial returns and tangible

services and benefits employees receive as part of an employmentrelationship (Milkovich & Newman).

Many researchers describe the importance of compensation in motivating

employees.

Compensation benefits (Pay, rewards, medical & transportation) are a

major consideration in human resource management because it provides

employees with a tangible reward for their services (Bohlander, Snell, and

Sherman, 2001)



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Sansone and Hareckiewicz (2000) identify that compensation benefits

energize and guide behaviors toward reaching a particular goal (Milkovich

and Newman, 2002).

Stone (1982) indicated that people are motivated by money for manydifferent reasons. The need to provide the basic necessities of life motivates

most people (Kovach, 1987).

Benefits, both financial and otherwise, send a powerful message to

employees of an organization as to what kind of organization management

seeks to create and maintain, and what kind of behavior and attitudes

management seeks from its employees (Beer, et al 1988).

I- Pay or Salaries

Cotton and Tuttle say that employee satisfaction with pay level is important

because it has been found to have an effect on levels of absenteeism and

turnover (Jerald, 1997).

Pay can be a factor in decision to stay or leave, it is clear that

dissatisfaction with pay can be a key factor in turnovers (R. Heneman and

T. Judge: 1999).

Linkage between pay and behaviors of employees results in better

individual and organizational performance (W. N. Cooke: 1987).

The process by which the organization creates and administers incentive

pay can help, it use incentives to achieve the goal of motivating employee

(R. T. Kaufman: 1992).

Level of pay and pay system characteristics influence a job candidates

decision to join a firm (E. E. Lawler: 1971).

II- Rewards & Incentives

In motivation, rewards and incentives directly effect on the behaviors ofemployees. Human Resource Professionals are continuously searching for

fresh and innovative ideas to drive positive results through employees

incentive, recognition and reward programs. According to Daniel and

Metcalf, High-performance companies understand the importance of

offering awards and incentives that recognize, validate and value

outstanding work. They keep employees motivated and are effective

methods of reinforcing company expectations and goals, especially in times

when promotion is rare, health premiums are on rise and overall job

satisfaction is low (Evans, 1986).



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According to a report by the American Compensation Associations, August

1996.

When it comes to reinforcing team behavior, the reward system is one of

the most effective and influential tools available to the organization (IRS

1996).

Rewards may enhance the employees financial well-being through wages,

bonuses, or profit sharing, or indirectly, through employer-subsidized

benefits such as retirement plans, paid vacations, paid sick leaves, and

purchase discounts (Sue Shellenbarger, 19999).

In Cheung and Scherling (1999:563), Martin and Touch identifies that

employee job satisfaction is a function of extrinsic (pay, promotion and

good relationship in the work place) and intrinsic (achievement of tasks)

rewards offered by a job.

Rewards that are proportional to the value of suggestions will facilitate

intrinsic motivations (Amabile, 1996).

Rewards promote efforts, performance and there is lot of evidence that they

often do (Gibbons, 1997; Lazear, 2000,).

D. M. Cable & T. A. Judge (1994) suggest that job candidates look for

organizations with reward systems that fit their personalities.

Therefore the reward issue can not be ignored, as it will create a situation

in which the expectation or the actual goal-directed behavior of one person

or group are blocked or are about to be blocked (Steers and Black 1994).

III- Health BenefitsWellness programs for healthy working environment, may help

organization to cut employer health costs and to lower absenteeism and

turnover of employees (Carolyn Petersen).

Family Health benefits often have spillover effects in the form of loyalty

because employees see the benefits as evidence that the organization care

about its employees. (S. L. Grover and K. J. Crooker: 1995).

IV- Working EnvironmentOrganization officials have a legal responsibility, if not a moral one, to

ensure that the workplace is free from unnecessary hazards and that

conditions surrounding the workplace are not hazardous to employees

physical or mental health (Decenzo).



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Good working environment such as work relationships, adequate

equipment, space, heating, lighting and ventilation motivated employees

(Gerhart).

Green (2001) says managers can motivate employees by setting in motionthe conditions required for motivation such as working environment,

confidence, trust and satisfaction that enforce employees to improve their

performances.

Herzberg and Miller (1968) states that compensation including pay,

rewards, communication and working conditions are four common

incentives, which motivate employees.



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Research Methodology

Objectives / Aims of the research study

It was an attempt to determine the impact of Working Environment andCompensation on employee motivation. The main objectives were:

To investigate the impact of Working Environment and

Compensation on employees motivation.

To investigate the relationship between Independent variables

(Working Environment & Compensation) with dependent variable

(employees motivation).

To recognize the degree of association between Independent

variables and dependent variables.

Instrument:

Sample:

Questionnaire:For this purpose a questionnaire was designed and items were scored on a

five point Likert Scale with end points of Disagree and Strongly

Disagree.

Procedure:Two of the independent and one of the dependent variable relationships

was tried to found. As we have to establish the relationship between

independent variables and dependant variable so we used the correlation to

find the relation of the independent variables with the dependent variable.

To check the impact of independent variables over the dependent variable

we used regression analysis.



Total 100 questionnaires were got duly filled by the employees of the

different Pharmas in Pakistan.

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Primary data was collected thorough questionnaires. This questionnaire

was initially developed by us by consulting a number of research

papers.


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STATISTICAL DATA

GenderMale 74%

Female 26%

AgeAbove 20 years

21-30 years 53%

31-40 years 28%

41-50 years 11%

Above 50 years 5%

Education

Ph.D 1%

Master Degree 60%

Bechlore Degree 31%

Intermediat 8%

Others

Income (monthly) Rs.10,000-Rs.20,000 28%Rs.21,000-Rs.30,000 38%

Rs.31,000-Rs.40,000 11%

Rs.41,000-Rs.50,000 17%

Above 50,000 6%

Work Experience Less than 6 month 5%

6 month to 1 year 32%

1 to 2 years 22%

3 to 5 years 23%

More than 5 years 18%

S. No. Demographics Working Environment Compensation Motivation IV 1 IV2 DV

1 2.6 2.0 2.25 2.00

2 2.2 2.0 2.125 2.00

3 2.2 2.6 3.375 2.00

4 2.4 2.4 3.375 3.00

5 2.8 1.9 3 2.00

6 2 2.4 3.375 2.50

7 3 1.7 2.625 2.00

8 2.2 2.5 3 3.00

9 2.6 2.3 2.25 2.00

10 1.8 2.2 3.5 2.00

11 2.6 2.3 3.125 2.50

12 2.4 2.3 3.25 2.50

13 1.4 2.3 2.875 2.00

14 2.6 2.6 3.125 3.00

15 1.8 1.9 2.875 2.00

16 1.8 2.0 2.375 2.00

17 2 2.0 2.5 2.00

18 1.8 2.3 3.25 2.50

19 2 2.3 2.625 2.50

20 2 1.8 3 1.00

21 2.2 1.6 1.75 1.50

22 1.8 2.1 3 2.00



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23 1.8 2.0 3 2.00

24 1.4 1.9 4.25 2.50

25 2.4 2.2 2.125 2.00

26 3.4 2.0 2.375 1.50

27 3.8 2.0 2.125 2.00

28 3 2.3 2.25 2.00

29 1.8 3.0 3 3.00

30 2.4 2.2 1.75 2.50

31 2.4 2.6 3.5 3.00

32 1.8 2.5 2.625 2.00



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33 2.2 2.0 2.375 2.00

34 2.4 1.8 2.25 2.50

35 1.8 2.4 3.625 3.00

36 2.6 1.8 2 1.50

37 2.8 3.8 4.5 2.00

38 2.8 2.3 2.375 2.00

39 2 2.2 2.125 2.50

40 2 2.0 2.375 2.00

41 2.2 2.2 2.5 2.00

42 3 1.8 1.625 2.50

43 2.2 2.3 3.25 2.00

44 3.4 2.0 2.5 2.00

45 1.8 1.6 3.75 2.00

46 2.6 2.4 3 1.50

47 3.2 2.5 3.25 3.00

48 2.2 2.0 3.875 2.50

49 3.8 2.2 2.25 2.50

50 2.4 2.3 2.75 3.0051 3 2.2 2.5 2.50

52 3.4 2.2 2.125 2.00

53 3.2 2.3 2.25 2.00

54 3.4 2.8 2.875 3.50

55 2.8 2.7 2 3.00

56 3.2 2.2 2.25 2.50

57 3 2.2 3 3.00

58 3 2.3 2.125 2.50

59 1.6 2.0 1.75 2.50

60 2.6 2.2 1.875 2.00

61 2.4 2.2 1.75 1.50

62 2 2.0 3 2.50

63 1.6 2.4 2.625 2.00

64 1.8 2.4 2.5 2.00

65 3.2 1.9 3.875 3.50

66 2.2 2.1 3.5 3.00

67 2.6 2.7 3.625 2.50

68 2.6 3.2 3.5 4.00

69 3.4 1.3 1.75 1.50

70 1.8 3.0 3.75 3.00

71 2.4 1.8 1.25 1.50

72 2.2 1.8 2.875 2.00

73 3 2.0 3.375 3.50

74 3.2 2.3 1.625 2.50

75 2.6 2.2 2.875 1.50

76 2.2 2.1 3.5 2.50

77 3.8 1.7 1.5 1.50

78 2 1.5 2 2.00

79 2.4 2.1 2.25 3.00

80 2.8 2.0 2.625 2.00

81 2.2 2.8 1.75 3.00

82 2.8 2.3 1.75 2.00

83 2.2 1.6 1.375 2.00

84 2.8 1.8 1.625 1.5085 2.2 2.1 1.25 3.00



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86 4 2.5 2.875 3.00

87 2.6 1.9 2 1.50

88 3 1.7 1.75 1.00

89 3 2.3 1.75 3.50

90 2.8 1.9 1 2.00

91 3.4 2.5 4.5 2.50

92 3.6 1.6 1.25 2.00

93 2.8 2.1 2 2.00

94 2 2.3 3.25 2.50

95 2.4 2.3 1.75 2.50

96 2.4 1.8 2.5 2.50

97 2.4 2.4 2.875 2.50

98 3 1.7 2.375 2.00

99 2.8 2.2 3.125 2.50



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Working

Environment

Compensation Motivation

Mean 2.256666667 2.784166667 2.436666667

Median 2.2 2.6 2.5

Mode 2.0 2.3 2.0

Standard Deviation 0.5 1.0 0.7

Sample Variance 0.3 0.9 0.5

Minimum 1.3 1.0 1.0

Maximum 4.3 5.0 5.0

Correlation b/w Motivation

and king Environment


and Compensation

0.646238187 0.530625915

Regression Lines b/w Motivation

(X) and Working Environment (Y)

Regression Lines b/w Motivation

(X) and Compensation (Z)

X = 0.30 + 0.95Y X = 1.11 + 0.48Z



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FINDINGS

Co Relational Analysis


and Working Environment


and Compensation

0.646238187 0.530625915

According to the research we found that there is a high positive correlation

between Motivation and Working Environment as well as Motivation and

Compensation.



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Descriptive results revealed positive trend of variables i.e. Working

Environment & Motivation and Compensation and Motivation. Likert

scale helped to explain the feelings of pharma officers towardsCompensation, Working Environment and motivation.

Aggregate mean of dependent variable (motivation) is found as (2.44),

median (2.5), mode (2.0) with (0.7) standard deviation and (0.5) sample

variance. We find with the help of this analysis that the motivation level of

Pharma employees is not very high. They are somehow dissatisfied or

not motivated in terms of working environment and compensation.

The aggregate mean of 1st independent variable (Working Environment) is

calculated as (2.26), median (2.2), mode (2) with (0.50) standard deviation

and (0.30) sample variance, which shows that the people working in

pharma industry of Pakistan feel that there is need to update the

working environment of the pharma. They are of a view that working

environment in pharma industry of Pakistan has some flaws in it which

needs to be removed. In nutshell, Pharma employees are not foundhighly satisfied and motivated with their current working environment

of thepharma industry in Pakistan.

The aggregate mean of 2nd independent variable (Compensation) is

calculated as (2.78),median (2.6),mode (2.3) with (1.0) standard deviation

and (0.90) sample variance. This again reveals that most of the people are

not satisfied with the fully satisfied with their compensation structure. The

pharma employees feel that they are not paid according to the services

they are giving to pharma. They are not getting the true fruit of their

hard work. There is a need to update the compensation structureaccording to the services provided by employees.


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If the Working Environment is conducive and cooperating which give the

employees a feeling of self accomplishment, hen they will be more

motivated and loyal to their organization.

Many of other researchers previously found similar results from their

research and analysis. Sansone and Hareckiewicz (2000) identify that

compensation benefits energize and guide behaviors toward reaching a

particular goal (Milkovich and Newman, 2002).

Stone (1982) indicated that people are motivated by money for many

different reasons. The need to provide the basic necessities of life motivates

most people (Kovach, 1987).

Regression ResultsThe regression line expresses the best prediction of the dependent variable

(X, Motivation), on the independent variables (Y, Working Environment)

and (Z, Compensation). The regression lines equations for these variables

are as follows:

Regression Lines b/w

Motivation (X) and Working

Environment (Y)

Regression Lines b/w

Motivation (X) and

Compensation (Z)X = 0.30 + 0.95Y X = 1.11 + 0.48Z



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CONCLUSION

Motivation is linked with good working environment and high level of

compensation.

The organization should must understand that what type of workenvironment can motivate their employees and they can become loyal

employees of the organization which benefit the organization in the long

run. Moreover the organizations should develop such a compensation

structure that fulfill the needs of the employees in a best possible way and

that they dont look around to meet their needs.



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DIRECTION FOR FUTURE RESEARCH

We can further carry on this research by adding certain other variables to

check their relationship with motivation and these factors might be QualitySupervision, Empowerment, Career Development, Growth Opportunities,

Qualification, and Participation etc.

AcknowledgementsThe authors gratefully acknowledge many helpful comments on this

research.



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REFERENCES1. Amabile, T. M. 1996, creativity in context, 2nd ed, Boulder, co, West view press.

2. Beer, M. and Walton, E. R. 1990 Reward Systems and the Role of

Compensation Manage People, Not Personnel: Motivation and performance

Appraisal. A Harvard Business Review Book, Chapter 2, pp.15-30.

3. Bohlander, G., Snell, S. and Sherman A., 2001, Managing Human Resources.Cincinnati, OH: South-Western College Publishing

4. Carolyn Petersen, 2000, Value of Complementary Care Rises, But Poses

Challenges, Managed Healthcare.

5. Colvin, G. (1998). What money makes you do? Fortune 138 (4), 213-214.

6. David A. Decenzo and Stephen P. Robbins. 2002, Human Resource

Management, 7th ed. John Wiley and Sons, Inc.

7. D. M. Cable & T. A. Judge, 1994, Pay Preferences and Job Search Decisions: A

Person-Organization Fit Perspective, Personal Psychology 47, pp.317-48.

8. E. E. Lawler, 1971, Pay & Organizational Effectiveness: A Psychological View,

New York, McGrew-Hill, Inc.

9. Emmert, M. and Tamer W. A., 1992. Public Sector Professionals: The effect of

Public Sector Job on Motivation, Satisfaction and Work involvement. American

Review of Public Administration, Vol. 22, pp.37-48.

10. Evans M. G., 1986. Organizational behavior: The central role of motivation.

Journal of Management.

11. F. Herzberg, B. Mausner, B. Snyderman.1959, The motivation to work. New

York, Johnwiely.

12. Green Berg J, 2001. Organizational Justice as Probation and reactions:

Implications for research `and application. In Cropanzano R (ed.), Justice in

work place: form theory to practice (Vol. 2, pp. 271-302).

13. Gerhart B. (ed.), compensation in organization: Current Research and Practice,pp. 32-60. San Francisco: Jossey-Bass.

14. Gibbons R., 1997, incentives and careers in organizations. In advances in

Economic theory and Econometrics, Vol. II, Kreps D. and Wallis K, ed.

Cambridge University press, U.K.

15. Herzberg. F. 1968, One more time: How do you motivate employees?

Harward business review, Vol. 46, ISS. 1, pp, 53-62

16. IRS Employment Review, 1996, Selecting team rewards. London , Internet

17. Jerald, G. and Robert, A. B., 1997. Behavior in Organizations: Understanding

and Managing the Human Side of Work, Upper Saddle River, NJ: Prentice-Hall,

Inc.

18. Kovach, K., 1987. What Motivates Employees? Workers and Supervisors GiveDifferent Answers. Business Horizons.

19. Martin, J. and Hanson, S., 1985. Sex, family wage earning status and

satisfaction with work and occupations, 12, 91-109.

20. Milkovich & Newman, 2002. Compensation, 7th ed, The McGrew-Hill

Companies, Inc.

21. R. T. Kaufman, 1992, The Effects of Improshare on Productivity, Industrial

and Labour Relations Review 45, pp. 311-22.

22. R. Heneman and T. Judge, 1999, Compensation Attitudes: A Review and

Recommendations for Future Research, in Compensation in Organization:

Progress and Prospects, S.L. Rynes and B. Gerhart, eds. New Lexington Press,

San Francisco.23. Steers, R. and Black, J. 1994,Organization Behavior, 5th ed, Harper Collins.



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24. S. L. Grover and K. J. Crooker, 1995, Who Appreciates Family Responsive

Human Resource Policies: The Impact of Family-Friendly Policies on the

Organizational Attachment of Parents and Non-parents, Personnel Psychology

48, pp. 271-88.

25. Sue Shellenbarger, 1999, Employees who value time as much as money Now

get their Reward, Wall street journal, p. B-1.26. Wagar, Terry H., 1998, "Determinants of Human Resource Management

Practices in Small Firms: some Evidence from Atlantic Canada," Journal of

Small Business Management, pp.13-23.

27. W. N. Cooke, 1994, Employee Participation Programs, Group based Incentives

& company Performance, Industrial and Labour Relations Review 47, pp. 603-

36.



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This research is confidential. No responder will be disclosed individually. We request

that you provide your honest views, avoiding overly positive and overly negativefeedback.

DEMOGRAPHICS

1. Gender

Male Female

2. Age

a) Above 20

b) 21 30

c) 31 40

d) 41 50

e) Above 50

3. Education Level

a) PhD

b) Post Graduate Level

c) Graduate Level

d) Intermediate Level

e) Other

________________________________________________________________

a) Less than 6 months

b) 6 months 1 yearc) 1 2 years

d) 2 3 years

e) 3 5 years

f) More than 5 years

5. What is your management level?

________________________________________________

6. What is your pay level?



Motivation of Employees in Pharma Industry of Pakistan

Questionnaire

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4. How long have you been working at _________________(Name ofOrganizarion)


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a) 10,000 20,000

b) 20,000 30,000

c) 30,000 40,000

d) 40,000 50,000

e) Above 50,000

WORK ENVIRONMENT StronglyAgree

Agree Neutral Disagree Strongly

Disagree

9. Work assigned to me is

interesting, rewarding and

challenging and give me afeeling of personal

accomplishment.

The amount of work expected to

do in my job is reasonable.

Employees have the support and

authority to make the decision

necessary for accomplishing

their assigned tasks.

Employees have the resources(personnel, finances, tools)

necessary to do quality work.

All employees at ____________

are treated fairly regardless of

age, race, gender, family status,

veteran status, national origin,

disability, personality, thinking

style or sexual orientation.



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Organization provides an

environment where diverse

individuals can work together

effectively and happily.

8. I fully utilize my skills andabilities in the Organization.

7. I am treated with dignity and

respect by management

10

11. Organization is responsive to

change and encourages change

within the organization in order

to stay effective in a changing

environment.Organization place a great

emphasis on honestly, integrity

and ethical behavior.

12

13

14

15

16


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We can exchange our views

freely in the work place.

Work environment is overall

very comfortable, friendly andcooperative.

COMPENSATION StronglyAgree


Disagree

Overall, the employee benefits I

receive meet my needs.

I receive good medical

allowances.

How would you rate the quality

of service you receive when you

have a benefits issue, question or

claim?

Very Good Good Average Poor Very Poor

MOTIVATION StronglyAgree


Disagree

I am satisfied with my

compensation & benefits

package.

Thank you very much for your support



Organization pays forperformance.

I am highly motivated with thecurrent working environment of

my Organization.

The overall benefits given to me

by Organization, provide good

security for me and my family.

Organization is providing

me with transportfacility.

17

18

19

20

21

22

23

24

25

26

27

28

I understand the value of the

total compensation

(compensation + benefits)

package that Organizationdelivers to me.

As Compared to other in theindustry my Organization has

an excellent compensation and

benefits package.

research paper on motivation in pharma industry of pakistan

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