Rupesh -hr Job Enrichment

IMPACT OF JOB ENRICHMENT ON EMPLOYEE MOTIVATION RUPESH VERMA LOVELY PROFESSIONAL UNIVERSITY 4TH SE

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CONTENTS

PREFACE CERTIFICATE ACKNOWLEDGEMENT CHAPTER 1 1.1 INTRODUCTION 1.2 REVIEW OF LITERATURE CHAPTER 2 2.1 COMPANY PROFILE 2.2 HISTORY 2.3 GROWTH CHAPTER 3 3.1 OBJECTIVE OF THE STUDY 3.2 RESEARCH METHODOLOGY 3.3 RESEARCH DESIGN 3.4 SAMPLE SIZE 3.5 SAMPLING TECHNQUE 3.6 SOURCES OF DATA CHAPTER 4 4.1 ANALYSIS OF THE DATA 4.2 FINDINGS CHAPTER 5 CONCLUSION CHAPTER 6 BIBLIOGRAPHY CHAPTER 7 APPENDICE

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EXECUTIVE SUMMARY Someone has rightly said that practical experience is far better and closer to the real world than more theoretical exposure. The practical experience helps the students to view the real business world closely, which in turn widely influences their perceptions and arguments their understanding of the real situation. Research work constitutes the backbone of any management education programme. A management student has to do research work quiet frequently during his entire span. MBA is the stepping-stone to management care in order to reach practical and concrete results. This project is on Job Enrichment Impact on Employee Motivation of Amrit Banaspati Company Ltd. Job Enrichment refers vertical expansion of jobs. It increases the degree to which the worker controls the planning, execution, and evaluation of work. An enriched job organizes the tasks so as to allow the worker to do a complete activity, increases the employee’s freedom and independence, increases job responsibility and provides feedback. Employee’s job enrichment could be done in number of ways as follows. • By job rotation, allows workers to do different varieties of tasks. • By combining tasks, work activities are combined to give more challenging work assignments. • By implementing participative management, this allows employees to participate in decision making and strategic planning. • By providing autonomy for work , this allows employees to work independently • By providing feedback for their work, this allows employees to understand how poor or well they are doing. • By increasing client relationships, this increases direct relationship between employee and his clients. 3

Based on above understanding of job enrichment, we have identified factors which by which job enrichment could be done .These factors are as follows. •

Job redesigning

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Autonomy

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Feedback

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Work place challenge

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Customer interaction

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Participate management

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Flexible working hours

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Use of technical skills

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On the job training

The main objectives of the project is to understand the JOB ENRICHMENT IMPACT ON EMPLOYEE MOTIVATION in detail by interacting with the management, supervision and

workers and to see how far the various measures are implemented and bring out the drawbacks if any and recommended measures for the betterment of the system. Secondly to critically evaluate the JOB ENRICHMENT impact on employee motivation as well as on absenteeism and turnover. At last study the most extensive changes those are critical for high motivation and performance.

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PREFACE Corporate Training in an organization is an integral and inseparable part of technical education syllabi; it provides an opportunity and practical exposure to the students who are the future professional captains or leaders of the industry. There is a definite gap between theoretical knowledge/information imparted in classes and practical happenings/ground realities in any industrial organization. This gap is bridged by practical training, which also strengthens the process of communication between the future professionals and corporate world. I have done my summer training project from Amrit Banaspati Company Limited, Chandigarh Road, Rajpura. The company produces the edible oil quality products, having brand names of Gagan, Gini (GNO, CSO), Bansari, Sunehri Teer, and Merrigold, Sunflower oils under its banner. I am assigned the task to study Job Enrichment Impact on Employee Motivation of ABC, which is controlled by the personnel department. During this training period I learned a lot of other things beside the project assigned to me. I have learned the office procedure in maintaining various registers and dissemination of information at various managerial levels. I fenced the professional attitude in air and did grasp to an extent, what it takes to become a professional? One thing more which I learned during my training is that the working area of HR is very wide. 5

In the Nutshell the whole experience was enlightening and interesting.

ACKNOWLEDGEMENT I have prepared this project with the help of the many persons working in the organization. I collected primary data from the personnel department but secondary and supporting data was provided by many others. A project work is never the work of a one person; rather it is a combination of ideas, suggestions, views & contribution involving various folks. I want to thank several people for their professional assistance. This includes Dr.R.K.Kalia (G.M- HR & Admn), B.S.Jaswal (Sr Manager-HR& Pers), Mr. Sita Ram and Mr. Guvinder who gave me privilege of working as a trainee in Amrit Banaspati Company Limited, Rajpura. They devoted their precious time and rendered generous support for my research and writing. I also want to thank all the person of the personnel department who gave their full support in completing my project. All the persons mentioned above not only helped me but also provided guidance for completing the project by their vast experience and professional attitude. I shall ever remain thankful to them and express my sincere gratitude Rupesh verma

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Chapter 1 1.1 Introduction: Job Enrichment The current research project is based on JOB ENRICHMENT. The new changes both in science and technology and business environment have brought a change in functional approach of an industrial organization. The human resource executive plays a significant role to set and achieve the objectives as the functional horizon is extended from legalistic mundane approach to human relation. Employees are not perceived as human resource, as some human resource experts have termed the human resource as “knowledge capital” of the organization. It is, therefore, imperative for human resource executive to adopt a rationale approach to muster and accumulate the so-called knowledge capital. This places an immense responsibility on HR executive, as there no direct scale to measure human HR activities vis-à-vis the output. Definition: Job Enrichment is the addition to a job of tasks that increase the amount of employee control or responsibility. It is a vertical expansion of the job as opposed to the horizontal expansion of a job, which is called job enlargement. Most of us want interesting, challenging jobs where we feel that we can make a real difference to other people’s lives. As it is for us, so it is for the people who work with or for us. So why are so many jobs so boring and monotonous? And what can you do to make the jobs you offer more satisfying? (By reducing recruitment costs, increasing retention of experienced staff and motivating them to perform at a high level; you can have a real impact on the bottom line.)

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One of the key factors in good job design is job enrichment. This is the practice of enhancing individual jobs to make the responsibilities more rewarding and inspiring for the people who do them. With job enrichment, you expand the task set that someone performs. You provide more stimulating and interesting work that adds variety and challenge to an employee’s daily routine. This increases the depth of the job and allows people to have more control over their work. The central focus of job enrichment is giving people more control over their work (lack of control is a key cause of stress, and therefore of unhappiness.) Where possible, allow them to take on tasks that are typically done by supervisors. This means that they have more influence over planning, executing, and evaluating the jobs they do. In enriched jobs, people complete activities with increased freedom, independence, and responsibility. They also receive plenty of feedback, so that they can assess and correct their own performance. Here are some strategies you can use to enrich jobs in your workplace: •

Rotate Jobs – Give people the opportunity to use a variety of skills, and perform

different kinds of work. The most common way to do this is through job rotation. Move your workers through a variety of jobs that allow them to see different parts of the organization learn different skills and acquire different experiences. This can be very motivating, especially for people in jobs that are very repetitive or that focus on only one or two skills. •

Combine Tasks – Combine work activities to provide a more challenging and complex

work assignment. This can significantly increase “task identity” because people see a job through from start to finish. This allows workers to use a wide variety of skills, which can make the work seem more meaningful and important. For example, you can convert an assembly line process, in which each person does one task, into a process in which one person assembles a whole unit. You can apply this model wherever you have people or groups that typically perform only one part of an overall process. Consider expanding their roles to give them responsibility for the entire process, or for a bigger part of that process. •

Identify Project-Focused Work Units – Break your typical functional lines and form

project-focused units. For example, rather than having all of your marketing people in one department, with supervisors directing who works on which project, you could split the department into specialized project units – specific storyboard creators, copywriters, and 8

designers could all work together for one client or one campaign. Allowing employees to build client relationships is an excellent way to increase autonomy, task identity, and feedback. •

Create Autonomous Work Teams – This is job enrichment at the group level. Set a

goal for a team, and make team members free to determine work assignments, schedules, rest breaks, evaluation parameters, and the like. You may even give them influence over choosing their own team members. With this method, you’ll significantly cut back on supervisory positions, and people will gain leadership and management skills. •

Implement Participative Management – Allow team members to participate in decision

making and get involved in strategic planning. This is an excellent way to communicate to members of your team that their input is important. It can work in any organization – from a very small company, with an owner/boss who’s used to dictating everything, to a large company with a huge hierarchy. When people realize that what they say is valued and makes a difference, they’ll likely be motivated. •

Redistribute Power and Authority – Redistribute control and grant more authority to

workers for making job-related decisions. As supervisors delegate more authority and responsibility, team members’ autonomy, accountability, and task identity will increase. •

Increase Employee-Directed Feedback – Make sure that people know how well, or

poorly, they’re performing their jobs. The more control you can give them for evaluating and monitoring their own performance, the more enriched their jobs will be. Rather than have your quality control department go around and point out mistakes, consider giving each team responsibility for their own quality control. Workers will receive immediate feedback, and they’ll learn to solve problems, take initiative, and make decisions. Job enrichment provides many opportunities for people’s development. You’ll give them lots of opportunity for their task to participate in how their work gets done, and they’ll most-likely enjoy an increased sense of personal responsibility. Job enrichment is connected to the concept of job enlargement.

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Job enrichment is the process of "improving work processes and environments so they are more satisfying for employees". Many jobs are monotonous and unrewarding - particularly in the primary and secondary production industries. Workers can feel dissatisfied in their position due to a lack of a challenge, repetitive procedures, or an over-controlled authority structure. Job enrichment tries to eliminate these problems, and bring better performance to the workplace. There are three key parts to the process of job enrichment 1. Turn employees' effort into performance: •

Ensuring that objectives are well-defined and understood by everyone. The overall

corporate mission statement should be communicated to all. Individual's goals should also be clear. Each employee should know exactly how she fits into the overall process and be aware of how important her contributions are to the organization and its customers. •

Providing adequate resources for each employee to perform well. This includes support

functions like information technology, communication technology, and personnel training and development. •

Creating a supportive corporate culture. This includes peer support networks, supportive

management, and removing elements that foster mistrust and politicking. •

Free flow of information. Eliminate secrecy.

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Provide enough freedom to facilitate job excellence. Encourage and reward employee

initiative. Flextime or compressed hours could be offered. •

Provide adequate recognition, appreciation, and other motivators.

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Provide skill improvement opportunities. This could include paid education at

universities or on the job training. •

Provide job variety. This can be done by job sharing or job rotation programmes.

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It may be necessary to re-engineer the job process. This could involve redesigning the

physical facility, redesign processes, change technologies, simplification of procedures, elimination of repetitiveness, redesigning authority structures.

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2. Link employee’s performance directly to reward: •

Clear definition of the reward is a must

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Explanation of the link between performance and reward is important

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Make sure the employee gets the right reward if performs well

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If reward is not given, explanation is needed

3. Make sure the employee wants the reward. How to find out? •

Ask them

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Use surveys( checklist, listing, questionnaire)

Job enrichment is a type of job redesign intended to reverse the effects of tasks that are repetitive requiring little autonomy. Some of these effects are boredom, lack of flexibility, and employee dissatisfaction (Leach & Wall, 2004). The underlying principle is to expand the scope of the job with a greater variety of tasks, vertical in nature, that require self-sufficiency. Since the goal is to give the individual exposure to tasks normally reserved for differently focused or higher positions, merely adding more of the same responsibilities related to an employee's current position are not considered job enrichment. The basis for job enrichment practices is the work done by Frederick Herzberg in the 1950's and 60's, which was further refined in 1975 by Hackman and Oldham using what they called the Job Characteristics Model. This model assumes that if five core job characteristics are present, three psychological states critical to motivation are produced, resulting in positive outcomes (Kotila, 2001). Figure 1 illustrates this model.

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Job enrichment can only be truly successful if planning includes support for all phases of the initiative. Ohio State University Extension began a job enrichment program in 1992 and surveyed the participants five years later. The results, broken down into 3 sub-buckets of data beyond the main grouping of advantages/disadvantages as shown in Table 1, indicate the University had not fully considered the planning and administrative aspects of the program (Fourman and Jones, 1997). While the benefits are seemingly obvious, programs fail not because of a lack of benefits, but rather due to implementation problems. These problems can include a perception of too great a cost, lack of long-term commitment of resources, and potential job classification changes (Cunningham and Eberle, 1990).

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In order for a job enrichment program to produce positive results, worker needs and organizational needs must be analyzed and acted upon. According to Cunningham and Eberle (1990), before an enrichment program is begun, the following questions should be asked: 1. Do employees need jobs that involve responsibility, variety, feedback, challenge, accountability, significance, and opportunities to learn? 2. What techniques can be implemented without changing the job classification plan? 3. What techniques would require changes in the job classification plan? (p.3) When asked about the successes of a Training Generalist job enrichment program begun in 2002, Karen Keenan, Learning Manager with Bank of America, stated the accomplishments were, "greater than expected". The Training Generalist program has resulted in three successful participants to date. According to Ms. Keenan, positive results can be directly tied to a program that addressed the strategic goal of greater resource flexibility without adding to staff, as well as to proper planning, guidance, and feedback for the participants. Having a voluntary program contributed as well, attracting a high caliber of individuals eager to expand their skills and be positioned for advancement. To date, all three Training Generalists have experienced promotions 13

and additional recognition while affording Ms. Keenan's team financial results and workload flexibility it could not have otherwise achieved. A job enrichment program can be a very effective intervention in some situations where a Performance Technician is faced with a request for motivational training. Ralph Brown (2004) summed it up very nicely: Job enrichment doesn't work for everyone. Some people are very resistant to more responsibility or to opportunities for personal growth, but…researchers report that some people they expected to resist, seized the opportunity. Enriching jobs is a particularly effective way to develop employees provided the jobs are truly enriched, not just more work for them to do. EVOLUTION OF MOTIVATION THEORIES Mainstream theories about employee motivation have varied greatly over the past century. Early conceptions, sometimes termed "traditional" management theory, assumed that work was an intrinsically undesirable pursuit and that workers naturally sought to do as little as possible. This translated into a sort of carrot-and-stick managerial policy whereby companies tried to maximize motivation by providing adequate compensation as an incentive but also by guarding against any sign of wayward behavior through authoritarian control regimes. A backlash in the 1940s and 1950s against such policies, which did not always prove particularly successful, emphasized building a conducive social environment in which workers felt valued and respected. This model still maintained management's authority over all critical matters, but attempted to make the workplace more palatable by humanizing it. Current notions of employee motivation started to take root in the 1960s. Elaborating on the importance of human factors, contemporary theories envision workers as large and often untapped reserves of skills, ideas, and other potential benefits to an organization. The motivation process, according to this view, involves tailoring the work environment and incentive structure to harness as much of this potential as possible. This approach emphasizes granting employees greater flexibility, power, responsibility, and autonomy so that, to some extent, they may shape their own work environments as they see fit, while remaining accountable for both favorable and unfavorable outcomes of their actions. 14

THEORIES APPLIED Some attempts to bolster employee motivation still consider only extrinsic rewards. Endless mixes of employee benefits such as health care and life insurance, profit sharing, employee stock ownership plans (ESOPs), exercise facilities, subsidized meal plans, child care availability, company cars, and more have been used by companies in their efforts to maintain happy employees. Although some experts argue that many of these efforts, if only directed at motivating employees, are just a waste of company money, it is clear that for certain individuals in certain scenarios, monetary incentives can stimulate better job performance—at least for a while. The debate, rather, has been over whether such material factors have more than a superficial impact on motivation. Many modern theorists propose that the motivation an employee feels toward his or her job has less to do with material rewards such as those described above, than with the design of the job itself. Studies as far back as 1924 show that simplified, repetitive jobs, for instance, fostered boredom and the taking of frequent, unauthorized breaks by those who performed them. In 1950 a series of attitude surveys found that highly segmented and simplified jobs resulted in lower employee morale and output. Other consequences of low employee motivation include absenteeism and high employee turnover, both very costly for businesses. "Job enlargement" initiatives began to crop up in major companies in the 1950s, with one champion of the cause being IBM founder Thomas Watson, Sr. On the academic front, Turner and Lawrence proposed task attributes that characterize jobs that motivate. Turner and Lawrence suggest that there are three basic characteristics of a "motivating" job: 1. It must allow a worker to feel personally responsible for a meaningful portion of the work accomplished. An employee must feel ownership of and connection to the work he or she performs. Even in team situations, a successful effort will foster an individual's awareness that his or her contributions were important in accomplishing the group's tasks. 2. It must provide outcomes which have intrinsic meaning to the individual. Effective work that does not lead a worker to feel that his or her efforts matter will not be maintained. The outcome of an employee's work must have value to him or hers and to others in the organization. 15

3. It must provide the employee feedback about his or her accomplishments. A constructive, believable critique of the work performed is crucial to a worker's continuance or improvement of that which has already been performed. In 1971 Hackman and Lawler tested these ideas. Using a telephone company as a test site, they surveyed 200 employees to determine relationships between employee attitudes and behavior and the characteristics of the employee's job. The study also assessed whether an employee's reaction to his or her work was dependent upon particular kinds of satisfactions valued by the employee. Positive correlations were found to exist between the quality of an employee's job, with quality jobs meeting the three criteria above, and positive employee attitudes and behavior. Further, "doing well" at a job was interpreted by the employee as having put in a high quality performance, rather than a high quantity performance. Employees felt positively when they had accomplished something they felt was meaningful, and strove to do so if given an encouraging opportunity. MOTIVATION TOOLS The methods of motivating employees today are as numerous and different as the companies operating in the global business environment. What is the nature of the company and its industry? Is it small or big? What kind of culture is fostered? Is it conservative or innovative? What is important to the employees? What steps have been taken to find out? The best employee motivation efforts focus on what employees deem to be important. It may be that employees within the same department of the same organization will have different motivators. Many organizations today find that flexibility in job design and reward has resulted in employees' increased longevity with the company, increased productivity, and better morale. Although this "cafeteria-plan" approach to the work-reward continuum presents variety, some strategies are prevalent across all organizations that strive to improve employee motivation. EMPOWERMENT Giving employees more responsibility and decision-making authority increases their control over the tasks for which they are held responsible and better equips them to carry out those tasks. Trapped feelings arising from being held accountable for something one does not have the 16

resources to carry out are diminished. Energy is diverted from self-preservation to improved task accomplishment. Empowerment brings the job enlargement of the 1950s and the job enrichment that began in the 1960s to a higher level by giving the employees some of the power to expand their own jobs and create new, personally identified challenges. CREATIVITY AND INNOVATION At many companies, employees with creative ideas do not express them to management for fear of jeopardizing their jobs. Company approval and toeing the company line have become so ingrained in some working environments that both the employee and the organization suffer. When the power to create in the organization is pushed down from the upper echelon to line personnel, employees are empowered and those who know a job, product, or service best are given the opportunity to use their ideas to improve it. The power to create motivates employees and benefits the organization in having a more flexible workforce, using more wisely the experience of its employees and increasing the exchange of ideas and information among employees and departments. These improvements also create an openness to change that can give a company the ability to respond quickly to market changes and sustain a first mover advantage in the marketplace. Minnesota Mining and Manufacturing Co., better known as 3M, has fostered company wide creativity for decades. Its relentless support of new ideas has paid off in profitability and loyal employees who are so motivated that they have the most nimble and successful new product development system in the industry. MCI (now part of MCI WorldCom), too, encourages employees to develop new ideas and take chances with them. A top manager there stated, "We don't shoot people who make mistakes around here, we shoot people who don't take risks." LEARNING If employees are given the tools and the opportunities to accomplish more, most will take on the challenge. Companies can motivate employees to achieve more by committing to perpetual enhancement of employee skills. Accreditation and licensing programs for employees are an increasingly popular and effective way to bring about growth in employee knowledge and motivation. Often, these programs improve employees' attitudes toward the client and the company, while bolstering self-confidence. Supporting this assertion, an analysis of factors 17

which influence motivation to learn found that it is directly related to the extent to which training participants believe that such participation will affect their job or career utility. In other words, if the body of knowledge gained can be applied to the work to be accomplished, then the acquisition of that knowledge will be a worthwhile event for the employee and employer. QUALITY OF LIFE The number of hours worked each week by American workers is on the rise again and many families have two adults working those increased hours. Under these circumstances, many workers are left wondering how to meet the demands of their lives beyond the workplace. Often, this concern occurs while at work and may reduce an employee's productivity and morale. Companies that have instituted flexible employee arrangements have gained motivated employees whose productivity has increased. Programs incorporating flextime, condensed workweeks, or job sharing, for example, have been successful in focusing overwhelmed employees toward the work to be done and away from the demands of their private lives. MONETARY INCENTIVE For all the championing of alternative motivators, money still occupies a rightful place in the mix of motivators. The sharing of a company's profits gives incentive to employees to produce a quality product, perform a quality service, or improve the quality of a process within the company. What benefits the company directly benefits the employee. Monetary and other rewards are being given to employees for generating cost savings or process-improving ideas, to boost productivity and reduce absenteeism. Money is effective when it is directly tied to an employee's ideas or accomplishments. Nevertheless, if not coupled with other, non monetary motivators, its motivating effects are short-lived. Further, monetary incentives can prove counterproductive if not made available to all members of the organization. OTHER INCENTIVES Study after study has found that the most effective motivators of workers are non monetary. Monetary systems are insufficient, in part because expectations often exceed results and because disparity between salaried individuals may divide rather than unite employees. Proven non monetary motivators foster team spirit and include recognition, responsibility, and advancement. 18

Managers, who recognize the "small wins" of employees, promote participatory environments, and treat employees with fairness and respect will find their employees to be more highly motivated. One company's managers brainstormed to come up with 30 powerful rewards that cost little or nothing to implement. The most effective rewards, such as letters of commendation and time off from work, enhanced personal fulfillment and self-respect. Over the longer term, sincere praise and personal gestures are far more effective and more economical than awards of money alone. In the end, a program that combines monetary reward systems and satisfies intrinsic, self-actualizing needs may be the most potent employee motivator.

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1.2 Review of Literature Honold(1997), suggests that an empowered organization is one where managers supervise more people than in a traditional hierarchy and delegate more decisions to their subordinates (Malone, 1997). Managers act like coaches and help employees solve problems. Employees, he concludes, have increased responsibility. Superiors empowering subordinates by delegating responsibilities to them leads to subordinates who are more satisfied with their leaders and consider them to be fair and in turn to perform up to the superior’s expectations (Keller and Dansereau, In practice, the definition of delegation appears to be of critical importance.It can be discerned by the language used by the researcher. The words “subordinate” and “superior” in the language suggests giving additional tasks to employees. This is not perceived as empowering by employees (Menon 1995). Providing for the development of self-worth by negotiating for latitude in decision making and changing aspects of the employee’s job leads to increased levels of perceived self-control and hence empowerment. Johnson (2008), studied that absenteeism due to stress increased slightly in South African companies in 2008 compared with the previous year. So far 3.4% of all sick leaves taken until the end of June this year were due to stress, depression and anxiety, according to Cams, a company which looks at corporate absenteeism. This was line with indications that the country was experiencing an economic downturn. In 2007 this figure was 3.1% and 3.9% in 2006. The research was done with the help of statistics from 100,000 employees in 60 companies, using data from doctor-issued sick certificates. "Companies should therefore continue to ask themselves what they could do to make their staff happy and productive." Mills(1973), predicts that Industrial sociologists and psychologists have often paid little more than scant attention to the actual work of the people they have been studying. The literature is full of brief comments about the work situation which lack both data and an analytical framework. This deficiency is surprising. Work content has been shown to have a significant impact on behaviour, morale, and productivity in the workplace. The purpose of job design research is to seek to understand this relationship more clearly and then to use research-based insights to create jobs which are more satisfying to perform, and more efficient in performance. As such this body of knowledge should be a subject of particular relevance for personnel 20

specialists since job content considerations should affect recruitment, training, placement and effort-reward policies. However, although job content has very wide repercussions for the personnel area, job design is frequently left by default to the technical and engineering specialists, who seek to make their work system function effectively in production rather than human terms. Mogelof et.al (2005), discusses context-driven job satisfaction tradeoffs associated with careers in élite versus non-élite organizations and the role organizations may play in facilitating or impeding workers’ participation in valued activities. It emphasizes the importance of participation in valued activities as a key driver of job satisfaction. The original purpose of this study was not to focus on job satisfaction, but rather to conduct an exploratory investigation of how symphony orchestra players cope with the frustrations and disappointments of orchestra life. Symphony orchestra players report surprisingly low levels of job satisfaction given the perception held by many that life and work in symphony orchestras is glamorous and rewarding. Orpen(2007), examined that (1) Employees in the enriched condition perceived their jobs as more enriched than before; (2) enrichment caused significant increases in employee job satisfaction, job involvement, and internal motivation; (3) enrichment led to significant decreases in absenteeism and turnover; but (4) enrichment had little impact on performance, whether assessed by superiors' ratings or by actual output. These findings, which are described in terms of the Hackman-Oldham theory of job design, are regarded as suggestive evidence that enrichment can cause substantial improvements in employee attitudes, but that these benefits may not lead to greater productivity. It is argued that in order to explain the effect of enrichment on performance, it is necessary to consider other factors besides the psychological states produced by jobs which are seen to have certain characteristics. Peter et.al (2004), said Job enrichment is a type of job redesign intended to reverse the effects of tasks that are repetitive requiring little autonomy. Some of these effects are boredom, lack of flexibility, and employee dissatisfaction (Leach & Wall, 2004). The underlying principle is to expand the scope of the job with a greater variety of tasks, vertical in nature, that require selfsufficiency. Since the goal is to give the individual exposure to tasks normally reserved for

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differently focused or higher positions, merely adding more of the same responsibilities related to an employee's current position is not considered job enrichment. Pettman(1979), examines that “quality of working life” (QWL) has grown steadily over a period in which the industrialised nations have increasingly come to question the role and status of human beings in the modern technological environment. In recent years concern with the nature of work, its impact upon people, and their attitudes towards it, seem to have sharpened. Investigation of, and experimentation with, the qualitative aspects of working life—its ability to confer self-fulfilment directly, for example, as opposed to being a means of acquiring goods— has gained momentum under the influence of a unique set of economic, social, political and technological factors. The outpouring of books, reports and articles from a wide variety of sources has, not surprisingly, grown apace. Roberts(2006), study that absence is a major issue for many UK organizations, yet less than half monitor the cost of absence to their business (CIPD, July 2007). On average the cost of absence is £659 per employee per year and in addition to this the indirect cost of absenteeism on the organization is significant, affecting productivity levels and knowledge management and putting customer

service,

morale

and

corporate

reputations

at

risk.

Managing absence is about starting with the little things. Ullah(1991), Considers that implementing total quality management is more a matter of changing people than changing technologies. Shows how psychology can be used to facilitate the process. Examines attitudes and behaviour, values and motivation. Discusses work redesign and goal setting as methods of motivating staff to achieve desired standards of work behaviour. Finally, considers the importance of psychological measurement to test customer attitudes. Concludes that there are other areas of organisational psychology which have implications for implementing a programme of total quality, and that the human side of TQM is at least as important as the technical side.

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Chapter 2 23

2.1 COMPANY PROFILE Amrit Banaspati is an ISO 9001-2000 certified company. It has a history of five decades in business of edible oil products. Today, it is one of the largest manufacturing unit of edible oil in the country. Its main brands are Gagan, Ginni (GNO, CSO), Bansari, Sunehri Teer, Merrigold, and Sunflower Oil, which are very popular and virtually common household names in various parts of the country. In terms of turnover Amrit Banaspati Company Limited, has been rated amongst the top 100 companies of the India. Late Shri Laxmi Narain Bajaj set up Amrit Banaspati Company Limited in the year 1940. It was the ninth company of the country established in the Banaspati industry. The main branches that are under the Amrit group are: a) Amrit Banaspati Company Limited, Ghaziabad (UP.) b) Amrit Paper Sailkhurd, Hoshiarpur (Punjab) c) Amrit Banaspati Company Limited, Rajpura (Punjab) Amrit Banaspati Company Limited, Ghaziabad (UP.) In Ghaziabad Amrit Banaspati Company has a corporate office. Amrit Paper Sailkhurd, Hoshiarpur (Punjab) One of the leading producers of the print paper in the country. The production capacity has increased from 10,000 mts in 1980 to 24,000 mts at present. The company is saving precious foreign exchange for the country. Amrit Banaspati Company Limited, Rajpura (Punjab) This unit of the Amrit Group was put in the year 1969-1970 with a capacity of 100 mts per day of Banaspati (Hydrogenated vegetable oil). Later in the year 1982-83 capacity was increased 125 mts per day. Then later on a separate facility to produce set of refined oils to the capacity of 60 mts per day. At present company is manufacturing 3600 mts of Banaspati oil out of which 3000 of mts is produced in small packets under the brand name Gagan, which is a well-known and accepted brand in entire Northern India. In Refined oil company is producing 1600-1700 mts per month. 24

Types of Refined Oil:  Ginni Ground Nut Oil  Ginni Ground Cotton Seed Oil  Ginni Gold Sunflower Oil  Ginni Corn Oil Ginni is again a renewed and well-known brand in Northern India. Very recently the company has launched table margarine under the brand name Merrigold. The product has received a good response. Rajpura Company is catering in the states of Punjab, Haryana, Himachal Pradesh, Jammu and Kashmir, Rajasthan, Madhya Pradesh, and West Bengal & Chandigarh. Northern Eastern states are roughly estimated around 60% of the turnover of Rajpura is around 400 crores. Rajpura plant is equipped with latest technology, developed in field of oil processing. Besides technology developed by machinery suppliers, the company has its own complete research and development facility. Where company keeps improving the process needed for oil processing and other R&D work. Hence the plant regularly introduces new products in the market at regular intervals of time.State of Punjab has plenty of edible oils available and hence maximum need of the

company is met locally within the Punjab state and rest of the need is fulfilled from the

other parts of the country.In future it seems that oil industry is going to be in good demand as its products are a basic part of the day today life and part of household.

LIST OF PRODUCTS:-

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1. Gagan Vanaspati 2. Ginni Gold Refined Sunflower 3. Ginni Refined Cotton Seed Oil 4. Ginni Refined Ground Oil 5. Ginni Lite Refined Oil 6. Ginni Refined Ricebran Oil 7. Ginni Refined Soyabean Oil 8. Merrigold Table Margarine 9. Gagan Kachi Ghani Mustard Oil 10. Merri Lite Calorie Vegetable 11. Gagan Salt 12. Gagan Basmati Rice

VARIOUS SLOGANS USED BY COMPANY 26



Khao Gagan Raho magan

:

Banaspati



The Oil of Today

:

Cotton Seed Oil Woman of today



The Complete Oil



Its Takes on the Flavour of Food

:

Groundnut Oil



As Pure as Mother’s Love

:

Mustered Oil



It’s Not Butter, It’s Better

:

Merrigold Table Margrine



The Taste of Good Health

:

Merritreat Bread Spread

:

Sunflower Oil Complete family

27

THE MISSION STATEMENT OF THE COMPANY “To product and sell goods to achieve the highest return on sales in the industry and the total satisfaction of the customers, employees and the share holders in that order”.

KEY ORGANIZATION ELEMENTS OF AMRIT BANASPATI CO.LTD •

Chairman cum Managing director

•

Vice Chairman cum Managing director — Mr. Jagesh Kumar Khaitan

•

Senior Executive Director

— Mr.Suresh.C. Aggrwal

•

Director

—Mr. Manmohan Lal Sarin

•

Director

—Mr.Romesh Lal

•

Director

—Mr.Hari Shankar Goenka

•

Director

—Mr.Lalit Mohan Suri

•

Director

—Mr.Virander kumar Sibal

•

Director

—Dr.Balbir Singh Bhatia

•

Director

—Mr.Pavan Khaitan

•

Director

—Mr.Ashwani Kumar Bajaj

•

Director

—Mr.Vikram Bajaj

•

G.M- HR & Admn

—Dr.R.K.Kalia

•

Sr Manager-HR& Pers

—Mr.B.s.Jaswal

— Mr.Naresh Kumar Bajaj

28

2.2 HISTORY Amrit Banaspati Company is a public limited company started on 29 March 1940 by Late Sh. Laxmi Narain Bajaj. The company Commenced business on the day of basakhi i.e. 13th April 1940 by production of Banaspati at its Ghaziabad plant. In 1940, 25-mt capacity of plant was started at Ghaziabad (U.P.). Very soon the product became popular and sales increased accordingly. Hence the capacity of the plant was increased to 50-mt per day in 1954. The company was managed by M/S Amrit Agency Private Limited till 1956. Thereof the managing agency was terminated and now Board of Directors manages it. Governor of Punjab Dr D.C. Pavte realizing the increased demand in the field a 100-mt per day plant was started at Rajpura in the year 1969. The foundation stone of the company was laid by Dr D.C. Pavte on March 06, 1969 while the company was inaugurated by the honorable chief minister of Punjab Mr. S. Gurnam Singh on December 06, 1969. The commercial production of the Banaspati at Rajpura unit started on January 10, 1970. By noticing the power shortages in the state the company has installed diesel generator sets of high capacity at both of its units so as to reduce production losses due to power failures. The company’s most prestigious product today is Merrigold Cholesterol free Margarine launched in 1991 at its Rajpura unit. Since its establishment the company has grown very fast and also diversified its business. The main objective of the company is the consumer satisfaction, quality of the product to reach at break-even point and price stabilization 2.3 GROWTH BUSINESS TURNOVER The Present turnover of Amrit group is around 1100 crores and that of Rajpura unit is of 800 crores. In terms of turnover Amrit Banaspati Company has been ranked amongst the top companies of the India.

29

FINANCIAL STATEMENTS FOR AMRIT CORP. LTD Year over year, Amrit Corp. Ltd has seen revenues fall from 4.7B to 242.6M. This along with an increase in income tax expense has led to a reduction in the bottom line from 146.1M to 71.5M. Currency in Millions of Indian Rupees

As of:Mar 31 2004 Press Release

Revenues

Mar 31 Mar 31 Mar 31 2005 2006 2007 Press Press Press Release Release Release

4,474.9 4,628.4 4,671.4

Other Revenues

29.8

23.6

12.2

TOTAL REVENUES

4,504.7 4,648.6 4,695.0

254.7

Cost of Goods Sold

3,164.4 3,238.3 3,055.0

122.7

GROSS PROFIT

1,340.3 1,410.4 1,640.0

132.1

Selling General & Admin Expenses, Total

20.2

242.6

108.7 119.4

123.1

15.0

62.4

11.4

Other Operating Expenses

1,081.3 1,125.4 1,264.5

75.5

OTHER OPERATING EXPENSES, TOTAL

1,227.0 1,299.7 1,450.0

101.9

Depreciation & Amortization, Total

37.1

54.9

OPERATING INCOME

113.2 110.7

190.1

30.2

Interest Expense

-57.3

-57.5

-2.7

30

-59.4

NET INTEREST EXPENSE

-57.3

-59.4

-57.5

-2.7

Other Non-Operating Income (Expenses)

0.0

0.0

0.0

0.0

EBT, EXCLUDING UNUSUAL ITEMS

55.9

51.3

132.5

27.6

Other Unusual Items, Total

--

24.0

99.8

72.5

Other Unusual Items

--

24.0

99.8

72.5

EBT, INCLUDING UNUSUAL ITEMS

55.9

75.3

232.3

100.1

Income Tax Expense

11.5

16.3

86.1

28.6

Earnings from Continuing Operations

44.4

59.0

146.1

71.5

NET INCOME

44.4

59.0

146.1

71.5

NET INCOME TO COMMON INCLUDING EXTRA ITEMS

44.4

59.0

146.1

71.5

NET INCOME TO COMMON

44.4

59.0

146.1

71.5

The revenues fall from 4.7B to 242.6M of Amrit Corp. Ltd because Amrit group splits into various individual companies in 2006 due to this there is sudden fall in the revenue of Amrit Corp. The Present turnover of Amrit group is around 1100 crores and that of Rajpura unit is of 800 crores. In terms of turnover Amrit Banaspati Company has been ranked amongst the top companies of the India.

31

Chapter 3 3.1 OBJECTIVES OF THE STUDY •

To understand the JOB ENRICHMENT IMPACT ON EMPLOYEE MOTIVATION in detail by interacting with the management, supervision and workers and to see how far the various measures are implemented and bring out the drawbacks if any and recommended measures for the betterment of the system.

•

To critically evaluate the JOB ENRICHMENT impact on employee motivation as well as on absenteeism and turnover.

•

To study the most extensive changes those are critical for high motivation and performance.

3.2 Research Methodology Job Enrichment refers vertical expansion of jobs. It increases the degree to which the worker controls the planning, execution, and evaluation of work. An enriched job organizes the tasks so as to allow the worker to do a complete activity, increases the employee’s freedom and independence, increases job responsibility and provides feedback. Employee’s job enrichment could be done in number of ways as follows. • By job rotation, allows workers to do different varieties of tasks. • By combining tasks, work activities are combined to give more challenging work assignments. • By implementing participative management, this allows employees to participate in decision making and strategic planning. • By providing autonomy for work , this allows employees to work independently • By providing feedback for their work, this allows employees to understand how poor or well they are doing.

32

• By increasing client relationships, this increases direct relationship between employee and his clients. The research methodology adopted in this research consists of the following steps: Procedure followed: Based on above understanding of job enrichment, we have identified factors which by which job enrichment could be done .These factors are as follows. •

Job redesigning

•

Autonomy

•

Feedback

•

Work place challenge

•

Customer interaction

•

Participate management

•

Flexible working hours

•

Use of technical skills

•

On the job training

A questionnaire was prepared to see the effect of all of the above factors of employee motivation, absenteeism and turnover which in turn effects employee satisfaction. Independent variables for the study: Job Enrichment ( Job redesigning, Autonomy, Feedback, work place challenge, customer interaction, participative management, flexible working hours, use of technical skills, on the job training) Dependent variables for the study: Motivation, Absenteeism, Turnover, Job Satisfaction. 3.3 Design of Research 33

Research design provides the glue that holds the research project together. A design is used to structure the research, to show how all of the major parts of the research project -- the samples or groups, measures, treatments or programs, and methods of assignment -- work together to try to address the central research questions. Here, after a brief introduction to research design, I'll show you how I classify the major types of designs. Our research design is concentrated with the specification of method and procedures used for conducting study. The research design of our study is both explanatory as well as descriptive. Our research is exploratory in initial stages to provide background to the study. Here we explore general subjects to study. i) Study of available literature. ii) Survey of experienced individuals. iii) Analysis of insight stimulating examples. Gradually as we proceed we shift to a descriptive research design as we concrete data from primary sources as well. We choose to make the study descriptive as it is too made regarding JOB ENRICHMENT IMPACT ON EMPLOYEE MOTIVATION of the company. 3.4 Sample Size Where the frame and population are identical, statistical theory yields exact recommendations on sample size. However, where it is not straightforward to define a frame representative of the population, it is more important to understand the cause system of which the populations are outcomes and to ensure that all sources of variation are embraced in the frame. Large number of observations is of no value if major sources of variation are neglected in the study. In other words, it is taking a sample group that matches the survey category and is easy to survey. The sample size of a statistical sample is the number of observations that constitute it. It is typically denoted n, a positive integer (natural number). Typically, different sample sizes lead to different precision of measurement. This can be seen in such statistical rules as the law of large numbers and the central limit theorem. Population consists of 3000 employees. Our sample element comprises middle level management and staff managers. 34

Name and proper identification of the employees was taken from the attendance register of the company. Our sample unit is AMRIT BANASPATI CO. LTD.

Initial characteristics of the sample size Sample size taken for study:

30

Age Group:

30-45 yrs

Work Experience:

4-8 years

Average rate of absenteeism:

once in 3 months

Job Monotony:

average

Job Satisfaction:

Satisfied

3.5 Sampling technique Sampling is that part of statistical practice concerned with the selection of individual observations intended to yield some knowledge about a population of concern, especially for the purposes of statistical inference. Each observation measures one or more properties (weight, location, etc.) of an observable entity enumerated to distinguish objects or individuals. Survey weights often need to be applied to the data to adjust for the sample design. Results from probability theory and statistical theory are employed to guide practice. The sampling process comprises several stages: •

Defining the population of concern

•

Specifying a sampling frame, a set of items or events possible to measure •

Specifying a sampling method for selecting items or events from the frame

•

Determining the sample size 35

•

Implementing the sampling plan

•

Sampling and data collecting

•

Reviewing the sampling process

The sampling technique will be probabilistic sampling more specifically the random sampling. As in probabilistic sampling the select unit for observation with known probabilities so that statistically sound assumptions are supported from the sample to entire population so that we had positive probability of being selected into the sample. Since the number of employees at different level management is quite high so it is not possible to collect data from each individual working in the company. Here we will use SIMPLE RANDOM SAMPLING method for selecting the employees. In this method each member of the population has an equal probability of being the sample. 3.6 Sources of Data My purpose is to provide information that will assist you in interpreting Statistics data. The information (also known as metadata) is provided to ensure an understanding of the basic concepts that define the data including variables and classifications; the underlying statistical methods and surveys; and key aspects of the data quality. Direct access to questionnaires is also provided. I will used primary source of data that is structured questionnaire will be used. As our research problem is to study job enrichment impact on employee motivation. This research data collected from the primary source only. Our method of collecting the data is from the questionnaire that will be filled by the respondent from the sample, it will be structured questionnaire. The project report much attention was paid on the subjective study because the topic deals with psycho-socio behavior of the workers. The research work was carried out by visiting the various department of A.B.C LTD. 3.7 Test Applied ANOVA: Two-Factor without Replication 36

In statistics, analysis of variance (ANOVA) is a collection of statistical models, and their associated procedures, in which the observed variance is partitioned into components due to different explanatory variables. The initial techniques of the analysis of variance were developed by the statistician and geneticist R. A. Fisher in the 1920s and 1930s, and is sometimes known as Fisher's ANOVA or Fisher's analysis of variance, due to the use of Fisher's F-distribution as part of the test of statistical significance. R.A FISHER,”Analysis of variance is the separation of the variance ascrible to one group of causes from the variance ascrible to other group. Two-way anova (also known as a factorial anova, with two factors) when you have one measurement variable and two nominal variables. The nominal variables (often called "factors" or "main effects") are found in all possible combinations. For example, let's say you are testing the null hypothesis that stressed and unstressed rats have the same glycogen content in their gastrocnemius muscle, and you are worried that there might be sex-related differences in glycogen content as well. The two factors are stress level (stressed vs. unstressed) and sex (male vs. female). Unlike a nested anova, each grouping extends across the other grouping. In a nested anova, you might have "cage 1" and "cage 2" nested entirely within the stressed group, while "cage 3" and "cage 4" were nested within the unstressed group. In a two-way anova, the stressed group contains both male and female rats, and the unstressed group also contains both male and female rats. The factors used to group the observations may both be model I, may both be model II, or may be one of each ("mixed model"). A two-way anova may be done with replication (more than one observation for each combination of the nominal variables) or without replication (only one observation for each combination of the nominal variables). Assumptions Two-way anova, like all anovas, assumes that the observations within each cell are normally distributed and have equal variances

37

Two-way anova without replication Null hypotheses: When there is only a single observation for each combination of the nominal variables, there are only two null hypotheses: that the means of observations grouped by one factor are the same, and that the means of observations grouped by the other factor are the same. It is impossible to test the null hypothesis of no interaction. Testing the two null hypotheses about the main effects requires assuming that there is no interaction. How the test works: The mean square is calculated for each of the two main effects, and a total mean square is also calculated by considering all of the observations as a single group. The remainder mean square (also called the discrepance or error mean square) is found by subtracting the two main effect mean squares from the total mean square. The F-statistic for a main effect is the main effect mean square divided by the remainder mean square. Repeated measures: One experimental design that is analyzed by a two-way anova is repeated measures, where an observation has been made on the same individual more than once. This usually involves measurements taken at different time points. For example, you might measure running speed before, one week into, and three weeks into a program of exercise. Because individuals would start with different running speeds, it is better to analyze using a two-way anova, with "individual" as one of the factors, rather than lumping everyone together and analyzing with a one-way anova. Sometimes the repeated measures are repeated at different places rather than different times, such as the hip abduction angle measured on the right and left hip of individuals. Repeated measures experiments are often done without replication, although they could be done with replication. In a repeated measures design, one of main effects is usually uninteresting and the test of its null hypothesis may not be reported. If the goal is to determine whether a particular exercise program affects running speed, there would be little point in testing whether individuals differed from each other in their average running speed; only the change in running speed over time would be of interest. Randomized blocks: Another experimental design that is analyzed by a two-way anova is randomized blocks. This often occurs in agriculture, where you may want to test different 38

treatments on small plots within larger blocks of land. Because the larger blocks may differ in some way that may affect the measurement variable, the data are analyzed with a two-way anova, with the block as one of the nominal variables. Each treatment is applied to one or more plot within the larger block, and the positions of the treatments are assigned at random. This is most commonly done without replication (one plot per block), but it can be done with replication as well Chapter 4 ANALYSIS AND INTERPRETATION 1) Impact of Job redesign on Motivation, Absenteeism and Turnover

Increase Decrease No Effect

Motivation 25 2 3

Absenteeism Turnover 2 6 8 14 20 10

GRAPHICAL REPRESENTATION

ANOVA: Two-Factor without Replication 39

By applying Anova test we can analyzes if there is impact of Job redesign on Motivation, Absenteeism and Turnover or not. Step1: State Hypothesis: Ho: There is no impact of Job redesign on Motivation, Absenteeism and Turnover. Ha: There is an impact of Job redesign on Motivation, Absenteeism and Turnover. ANOVA: Two-Factor without Replication SUMMARY

Count

Sum 33 24 33

Averag e 11 8 11

Varianc e 151 36 73

Row 1 Row 2 Row 3

3 3 3

Column 1 Column 2 Column 3

3 3 3

30 30 30

10 10 10

169 84 16

ANOVA Source of Variation Rows Columns Error

SS

df

MS

F

P-value

F crit

18 0 520

2 2 4

9 0 130

7.69231 0

0.934205 1

6.944276 6.944276

Total

538

8

Interpretation: The table value at 5% level of significance is 6.944276 and calculated value is 7.69231, since calculated value is greater than the tabulated value, hence null hypotheses is rejected. There is impact of Job redesign on Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 70% employees while on 6.70% level of motivation was decreased and 23.30% were not affected.

40

2) Impact of Job Autonomy on Motivation, Absenteeism and Turnover

Increase Decrease No Effect

Motivation 24 4 2

Absenteeism Turnover 2 8 14 12 14 10

GRAPHICAL REPRESENTATION

ANOVA: Two-Factor without Replication By applying Anova test we can analyzes if there are is impact of Job autonomy on Motivation, Absenteeism and Turnover or not.

Step1: State Hypothesis: Ho: There is no impact of Job autonomy on Motivation, Absenteeism and Turnover. Ha: There is an impact of Job autonomy on Motivation, Absenteeism and Turnover.

41

ANOVA: Two-Factor without Replication SUMMARY Row 1 Row 2 Row 3

Count 3 3 3

Sum 34 30 26

Average 11.33333 10 8.666667

Variance 129.3333 28 37.33333

Column 1 Column 2 Column 3

3 3 3

30 30 30

10 10 10

148 48 4

ANOVA Source of Variation Rows Columns Error

SS

df

MS

F

P-value

F crit

10.66667 0 389.3333

2 2 4

5.333333 0 97.33333

8.54795 0

0.947378 1

6.944276 6.944276

Total

400

8

Interpretation: The table value at 5% level of significance is 6.944276 and calculated value is 8.59231, since calculated value is greater than the tabulated value, hence null hypotheses is rejected. There is impact of Job autonomy on Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 66.67% employees while on 13.33% level of motivation was decreased and 20.00% were not affected.

42

3) Impact of Feedback on Motivation, Absenteeism and Turnover

Increase Decrease No Effect

Motivation 16 4 10

Absenteeism Turnover 6 5 9 13 15 12

GRAPHICAL REPRESENTATION

ANOVA: Two-Factor without Replication By applying Anova test we can analyzes if is impact of Feedback on Motivation, Absenteeism and Turnover or not.

Step1: State Hypothesis: Ho: There is no impact of Feedback on Motivation, Absenteeism and Turnover. Ha: There is an impact of Feedback on Motivation, Absenteeism and Turnover.

43

ANOVA: Two-Factor without Replication SUMMAR Y Row 1 Row 2 Row 3

Count

Sum

Average

Variance

3 3 3

27 26 37

9 8.666667 12.33333

37 20.33333 6.333333

Column 1 Column 2 Column 3

3 3 3

30 30 30

10 10 10

36 21 19

Source of Variation Rows Columns Error

SS

df

MS

F

P-value

F crit

24.66667 0 127.3333

2 2 4

12.33333 0 31.83333

0.387435 0

0.701774 1

6.944276 6.944276

Total

152

8

Interpretation: The table value at 5% level of significance is 6.944276 and calculated value is 0.387435, since calculated value is less than the tabulated value, hence a null hypothesis is accepted. There is no impact of feedback on Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 20.00% employees while on 30.00% level of motivation was decreased and 50.00% were not affected.

44

4) Impact of Work Challenges on Motivation, Absenteeism and Turnover Increase Decrease No Effect

Motivation Absenteeism 21 8 5 8 4 14

Turnover 6 16 8

GRAPHICAL REPRESENTATION

ANOVA: Two-Factor without Replication By applying Anova test we can analyzes if is impact of work challenges on Motivation, Absenteeism and Turnover or not.

Step1: State Hypothesis: Ho: There is no impact of work challenges on Motivation, Absenteeism and Turnover. Ha: There is an impact of work challenges on Motivation, Absenteeism and Turnover.

45

ANOVA: Two-Factor without Replication SUMMARY Row 1 Row 2 Row 3

Count 3 3 3

Sum 35 29 26

Average 11.66667 9.666667 8.666667

Variance 66.33333 32.33333 25.33333

Column 1 Column 2 Column 3

3 3 3

30 30 30

10 10 10

91 12 28

ANOVA Source of Variation Rows Columns Error

SS

df

MS

F

P-value

F crit

14 0 248

2 2 4

7 0 62

7.112903 0

0.895985 1

6.944276 6.944276

Total

262

8

Interpretation: The table value at 5% level of significance is 6.944276 and calculated value is 7.112903, since calculated value is more than the tabulated value, hence a null hypothesis is rejected. There is impact of work challenges on Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 70.00% employees while on 16.67% level of motivation was decreased and 13.33% were not affected.

46

5)

Impact of customer interaction on Motivation, Absenteeism and Turnover

Increase Decrease No Effect

Motivation 18 3 9

Absenteeism 4 7 19

Turnover 2 8 20

GRAPHICAL REPRESENTATION

ANOVA: Two-Factor without Replication By applying Anova test we can analyzes if is impact of Customer interaction on Motivation, Absenteeism and Turnover or not.

Step1: State Hypothesis: Ho: There is no impact of Customer interaction on Motivation, Absenteeism and Turnover. Ha: There is an impact of Customer interaction on Motivation, Absenteeism and Turnover.

47

ANOVA: Two-Factor without Replication SUMMARY

Count

Sum 24 18 48

Averag e 8 6 16

Varianc e 76 7 37

Row 1 Row 2 Row 3

3 3 3

Column 1 Column 2 Column 3

3 3 3

30 30 30

10 10 10

57 63 84

ANOVA Source of Variation Rows Columns Error

SS

df

MS

F

P-value

F crit

168 0 240

2 2 4

84 0 60

1.4 0

0.346021 1

6.944276 6.944276

Total

408

8

Interpretation: The table value at 5% level of significance is 6.944276 and calculated value is 1.4, since calculated value is less than the tabulated value, hence a null hypothesis is accepted. There is no impact of Customer interaction on Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 13.33%employees while on 23.34% level of motivation was decreased and 63.33%were not affected.

48

6) Impact of Participative Decision on Motivation, Absenteeism and Turnover

Increase Decrease No Effect

Motivation 24 4 2

Absenteeism Turnover 2 5 10 16 18 9

GRAPHICAL REPRESENTATION

ANOVA: Two-Factor without Replication By applying Anova test we can analyzes if there is impact of Participative Decision on Motivation, Absenteeism and Turnover or not. Step1: State Hypothesis: Ho: There is no impact of Participative Decision on Motivation, Absenteeism and Turnover. Ha: There is an impact of Participative Decision on Motivation, Absenteeism and Turnover.

49

ANOVA: Two-Factor without Replication SUMMARY Row 1 Row 2 Row 3

Count 3 3 3

Sum 31 30 29

Average 10.33333 10 9.666667

Variance 142.3333 36 64.33333

Column 1 Column 2 Column 3

3 3 3

30 30 30

10 10 10

148 64 31

ANOVA Source of Variation Rows Columns Error

SS

df

MS

F

P-value

F crit

0.666667 0 485.3333

2 2 4

0.333333 0 121.3333

9.002747 0

0.997258 1

6.944276 6.944276

Total

486

8

Interpretation: The table value at 5% level of significance is 6.944276 and calculated value is 9.002747, since calculated value is more than the tabulated value, hence a null hypothesis is rejected. There is impact of Participative Decision on Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 80.00%employees while on 13.33% level of motivation was decreased and 6.67%were not affected.

50

7) Impact of Flexible Working Hours on Motivation, Absenteeism and Turnover

Increase Decrease No Effect

Motivation 15 7 8

Absenteeism Turnover 3 2 11 18 16 10

GRAPHICAL REPRESENTATION

ANOVA: Two-Factor without Replication By applying Anova test we can analyzes if there is impact of Flexible Working Hours on Motivation, Absenteeism and Turnover or not. Step1: State Hypothesis: Ho: There is no impact of Flexible Working Hours on Motivation, Absenteeism and Turnover. Ha: There is an impact of Flexible Working Hours on Motivation, Absenteeism and Turnover.

51

ANOVA: Two-Factor without Replication SUMMARY

Count

Sum

Average

Row 1 Row 2 Row 3

3 3 3

20 36 34

6.666667 12 11.33333

Varianc e 52.33333 31 17.33333

Column 1 Column 2 Column 3

3 3 3

30 30 30

10 10 10

19 43 64

ANOVA Source of Variation Rows Columns Error

SS

df

MS

F

P-value

F crit

50.66667 0 201.3333

2 2 4

25.33333 0 50.33333

7.503311 0

0.638308 1

6.944276 6.944276

Total

252

8

Interpretation: The table value at 5% level of significance is 6.944276 and calculated value is 7.503311, since calculated value is more than the tabulated value, hence a null hypothesis is rejected. There is impact of Flexible Working Hours on Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 50.00%employees while on 23.33% level of motivation was decreased and 26.67%were not affected.

52

8) Impact of Technical skills on Motivation, Absenteeism and Turnover

Increase Decrease No Effect

Motivation 24 2 4

Absenteeism Turnover 2 9 10 10 18 11

GRAPHICAL REPRESENTATION

ANOVA: Two-Factor without Replication By applying Anova test we can analyzes if there is impact of Technical skills on Motivation, Absenteeism and Turnover or not. Step1: State Hypothesis: Ho: There is no impact of Technical skills on Motivation, Absenteeism and Turnover. Ha: There is an impact of Technical skills on Motivation, Absenteeism and Turnover.

53

ANOVA: Two-Factor without Replication SUMMARY

Count

Sum

Average

Row 1 Row 2 Row 3

3 3 3

35 22 33

11.66667 7.333333 11

Varianc e 126.3333 21.33333 49

Column 1 Column 2 Column 3

3 3 3

30 30 30

10 10 10

148 64 1

ANOVA Source of Variation Rows Columns Error

SS

df

MS

F

P-value

F crit

32.66667 0 393.3333

2 2 4

16.33333 0 98.33333

9.166102 0

0.852516 1

6.944276 6.944276

Total

426

8

Interpretation: The table value at 5% level of significance is 6.944276 and calculated value is 9.166102, since calculated value is more than the tabulated value, hence a null hypothesis is rejected. There is significant difference in impact of Technical skills on Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 80.00%employees while on 6.7% level of motivation was decreased and 13.33%were not affected.

54

9) Impact of on the Job training on Motivation, Absenteeism and Turnover

Variables Increase Decrease No Effect

Motivation 27 0 3

Absenteeism Turnover 6 11 7 10 17 9

GRAPHICAL REPRESENTATION

ANOVA: Two-Factor without Replication By applying Anova test we can analyzes if there is impact of on the Job training on Motivation, Absenteeism and Turnover or not. Step1: State Hypothesis: Ho: There is no impact of on the Job training on Motivation, Absenteeism and Turnover. Ha: There is an impact of on the Job training on Motivation, Absenteeism and Turnover.

55

ANOVA: Two-Factor without Replication SUMMARY

Count

Sum

Average

Row 1 Row 2 Row 3

3 3 3

44 17 29

14.66667 5.666667 9.666667

Varianc e 120.3333 26.33333 49.33333

Column 1 Column 2 Column 3

3 3 3

30 30 30

10 10 10

219 37 1

ANOVA Source of Variation Rows Columns Error

SS

df

MS

F

P-value

F crit

122 0 392

2 2 4

61 0 98

9.622449 0

0.581629 1

6.944276 6.944276

Total

514

8

Interpretation: The table value at 5% level of significance is 6.944276 and calculated value is 9.622449, since calculated value is more than the tabulated value, hence a null hypothesis is rejected. There is impact of on the Job training on Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 90.00% employees while on 0% level of motivation was decreased and 10%were not affected.

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Findings: 1. After doing the survey it is found that 68.89% of the employees believe that Job Enrichment increases their motivation and 11.48% decrease their motivation. 2. 19.6% of the employees believe that job enrichment does not effect their motivation. 3. Job Enrichment does not affect absenteeism for 56.3% of the employees and 32.96% of the employee’s feels that absenteeism will decrease with job enrichment. 4.

42.96% of the employees feel that job enrichment will decrease the turnover and

36%of employees feel that job enrichment will have no effect on turnover. 5.

It is also interpreted that level of motivation was increased through Job redesigning

on 70% employees while on 6.70% level of motivation was decreased and 23.30% were not affected. 6.

It is found that there is significant difference on impact of Job autonomy on

Motivation, Absenteeism and Turnover. It is also interpreted that level of motivation was increased on 66.67% employees while on 13.33% level of motivation was decreased and 20.00% were not affected. 7.

It is found that absenteeism was increased on 20.00% employees while on 30.00%

level of motivation was decreased and 50.00% were not affected through feedback. 8.

It is also interpreted that level of motivation was increased on 80.00%employees

while on 6.7% level of motivation was decreased and 13.33%were not affected through technical skills. 9.

It is found that level of motivation was increased on 90.00% employees while on

0% level of motivation was decreased and 10%were not affected through on the job training. 10.

It is also interpreted that level of motivation was increased on 50.00%employees

while on 23.33% level of motivation was decreased and 26.67%were not affected through flexible work hours.

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EFFECT OF JOB ENRICHMENT ON MOTIVATION

Job redesigning Autonomy Feedback Work challenge Customer interaction Participative decision Flexible working hours Use of technical skills On the job training Average

Increase 70.00% 66.67% 53.33% 70.00% 60.00% 80.00% 50.00% 80.00% 90% 68.89%

Decrease 6.70% 13.33% 13.33% 16.67% 10% 13.33% 23.33% 6.7% 0% 11.48%

58

Will not affect 23.30% 20.00% 33.33% 13.33% 30.00% 6.67% 26.67% 13.33% 10% 19.6%

EFFECT OF JOB ENRICHMENT ON ABSENTEEISM

Job redesigning Autonomy Feedback Work challenge Customer interaction Participative decision Flexible working hours Use of technical skills On the job training Average

Increase 0.00% 6.66% 20.00% 26.67% 13.33% 0.00% 10.00% 0.00% 20.0% 10.74%

Decrease 33.33% 46.67% 30.00% 26.67% 23.34% 40.00% 36.67% 36.67% 23.33% 32.96%

59

Will not affect 66.67% 46.67% 50.00% 46.66% 63.33% 60.00% 53.33% 63.33% 56.67% 56.3%

EFFECT OF JOB ENRICHMENT ON TURNOVER Increase Job redesigning

23.33%

Autonomy

26.67%

Feedback

16.66%

Work challenge

20.00%

Customer interaction

6.67%

Participative decision

16.67%

Flexible working hours

6.67%

Use of technical skills

30.00%

On the job training

36.67%

Average

20.37%

60

Decre ase 43.34 % 40.00 % 43.34 % 53.33 % 26.67 % 53.33 % 60.00 % 33.33 % 33.33 % 42.96 %

Will not affect 33.33% 33.33% 40.00% 26.67% 66.66% 30.00% 33.33% 36.67% 30.00% 36.7%

Chapter 5 Conclusion: From the above study we can deduce that the job enrichment helps in increasing motivation and reducing turnover but does not help much to reduce absenteeism. All these effects combined together help in increasing job satisfaction of an employee Employers often use in their speeches the cliché that “Employees are our most important asset” without doing much to improve working conditions and the motivation of employees to do their best for the organization. In today’s fast changing environment employees are faced with increasing demands from various sources. Also with the rising level of education employees aren’t anymore satisfied with repetitive, not meaningful, tasks. Job enrichment offers a good way to increase the variety of work and to motivate employees to truly commit themselves for the benefit of the whole organization. In increasingly competitive environment, management finds that the best way to achieve corporate goals is to work together with the persons who are closest 61

to the actual work. Companies that implement programs that enhance employees’ knowledge, abilities, and experience and allow them to apply these new skills in their work will be profitable in the future.

LIMITATIONS OF THE STUDY

Although the sincere efforts have been done to collect authentic and relevant information, the study may have the following limitation: o

Hard enough to fetch information. It was not an easy task to get information

from middle level management. The respondents were not always open and forthcoming with their views, even agitates and not disclosing. o

Limited scope. Scope of study is limited ABC only and because of limited time

and money. So, results of study may not generalize for India as a whole.

62

o

Results may be inaccurate. The study is based on the assumption that responses

are true and factual although at times that may not be the case. o

Existence of biases. The chances of biased responses cannot be eliminated

though all necessary steps were taken to avoid the same. o

Small sample size: the sample size taken is small and may not be sufficient to

predict the results with 100 % accuracy and findings may not be generalized.

BIBLIOGRAPHY BOOKS  Jain.T.R, Statistics for MBA, 2nd Edition  Ashwatthapa, Human Resource Management, 7th Edition WEBSITES  www.emeraldinsight.com/Insight/viewContentItem  www.articlesbase.com/management-articles/job-enrichment  www.eurofound.europa.eu/emire/IRELAND/JOBENRICHMENT  www.smartmanager.us/eprise/main/web/us/  www.collegeresearch.us/show_essay/11689.html  www.bookpump.com/dps/pdf-b/1120699b.pdf  www.emeraldinsight.com/10.1108/eb003472  http://www.emeraldinsight.com/10.1108/eb055  www.emeraldinsight.com/10.1108/1463444971019547 63

 http://www.emeraldinsight.com/10.1108/EUM0000000003126  www.emeraldinsight.com/10.1108/01437720510587307  http://www.joe.org/joe/1997october/iw1.html.  http://edweb.sdsu.edu/people/arossett/pie/Interventions/jobdesign_1.htm  www.bls.gov/osmr/abstract/ec/ec060010.htm  www.mindtools.com/pages/article/newTMM_81.htm  en.wikipedia.org/wiki/Job enrichment  www.businessdictionary.com/definition/job-enrichment.  http://www.emeraldinsight.com/10.1108/eb055232  http://hum.sagepub.com/cgi/content/abstract/32/3/189  http://faculty.washington.edu/~janegf/jeguide.pdf.  http://www.siu.edu/departments/cola/psych/psyc323/chat07/index.htm.  http://academic.emporia.edu/smithwil/001fmg456/eja/kotila456.html.  http://www.changeboard.com/hrcircles/blogs/hrarticles/archive/2008/02/15/absenteeismhow-to-manage.aspx JOB ENRICHMENT IMPACT ON EMPLOYEE MOTIVATION A SPECIAL STUDY OF A.B.C. LTD. RAJPURA AMRIT BANASPATI COMPANY LIMITED, RAJPURA (PUNJAB)

NAME PLACE 1.

GENDER M/F CONTACT NO: Years of Experience: a. 0 Years b. 5-8 Years

1-2 Years Above

2-5 Years

2. If your job is redesigned in terms of task variety i.e. if more tasks are added to your current job, how it will affect the followings for you Will increase will decrease will have no effect Motivation Absenteeism Turnover 64

3.

If you are allowed to do your job the way you want, i.e. there is no interference by your immediate bosses. (Autonomy) how it will affect the followings for you Will increase will decrease will have no effect Motivation Absenteeism Turnover

4. If your job work is evaluated everyday and respective feedback is given to you, which will enhance your learning in an organization, how it effect the followings Will increase will decrease will have no effect Motivation Absenteeism Turnover 5. If your job is made to have challenges everyday, how it will affect the followings for you Will increase will decrease will have no effect Motivation Absenteeism Turnover 10. If your job includes interacting with customers, how it will affect the followings Will increase will decrease will have no effect Motivation Absenteeism Turnover 11. If company starts implementing decisions proposed by you, how it will affect followings Will increase will decrease will have no effect Motivation Absenteeism Turnover 12. If you are allowed flexible working hours, how it will affect the followings Will increase Motivation Absenteeism Turnover

will decrease will have no effect

13. If you are allowed to use your technical skills in job more frequently, how it will affect the followings Will increase

will decrease will have no effect 65

the

Motivation Absenteeism Turnover 14. If your current company involves you in the training how it will affect the followings? Will increase will decrease will have no effect Motivation Absenteeism Turnover

66