Impact of Motivational Tools on Performance

INTRODUCTION

Motivation plays a critical role in achieving goals and business objectives and is equally important for companies that work in a team-based environment or in a workplace comprised of workers who work independently. Making sure each employee’s workplace goals and values are aligned with the organization’s mission and vision is important for creating and maintaining a high level of motivation.

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Many business managers today are not aware of the effects that motivation can (and does) have on their business. The size of your business is irrelevant: whether the size of staff is fifty or just one, everyone needs some form of motivation. The key is to awaken this motivation from within each employee by various methods such as incentives, loyalty, support, discipline, security, and recognition, among others, which in turn will goad each employee to do his or her best.

In today’s economy more so in knowledge based industry IT, ITES, BPO the biggest task is to motivate and retain the employees .Managers today realize the fact that high staff turnover can prove costly and reward employees with monetary or tangible as well as non-monetary or intangible compensation to limit employee turnover, improve employee morale and job satisfaction and enhance employee performance.

Frederick Herzberg is regarded as one of the original pioneers of management and employee motivational theory. His book ‘The Motivation to Work’ written in 1959, and expanded upon by later books, postulated that there are two very different sets of factors that drive behaviour in the workplace.  Many other theories since then have also gained currency like the McGregor’s Theory X and Y, Maslow’s Motivation Theory of Hierarchy of Needs, Three-Need Theory/ Acquired Need Theory etc. Motivational strategies can help improve employee performance, reduce the chances of low employee morale, encourage teamwork and instill a positive attitude during challenging times.

Managers can successfully motivate their employees through empathy, leading by example, Management by Objectives (MBO), fairness to all, rewards, awards and recognition for long-service and good work, opportunity for employees’ training and development, periodical promotion and increase in take-home pay, welfare package like employees’ children scholarship, free medical services for employees and their families, recognition of birthdays of employees, the creation of a sense of belonging among all employees, regular feedback from employees, effective communication in the project environment and assurance of employees future within and without the organisation, providing a conducive and attractive working environment for the employees, and instituting conflict resolution management.

Nothing motivates better than working in a cohesive team and being seen as part of a success story. Workers are motivated when they are getting results, otherwise, they feel depressed and weak. Other motivating factors are secondary. Managers should be aware that their job is to plan, organise, control, supervise and direct motivated employees to achieve objectives.

COMPANY PROFILE

Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care Products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs.10, 000 cores.

HUL is also one of the country’s largest exporters; the Government of India has recognized it as a Golden Super Star Trading House.

The mission that inspires HUL’s 36,000 employees, including over 1,350 managers, is to “add vitality to life.” HUL meets every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL share with its parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is distributed among 380,000 individual shareholders and financial institutions.

HUL’s brands –

• Food brands
• Home care brands
• Personal care brands
• Water
• Nutrition
• Health, hygiene & beauty

The operations involve over 2,000 suppliers and associates. HUL’s distribution network, comprising about 7,000 redistribution stockiest, directly covers the entire urban population, and about 250 million rural consumers.

HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Unilever Research Center (HULRC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HULRC and the Global Technology Centers in India have over 200 highly qualified scientists and technologists, many with postdoctoral experience acquired in the US and Europe.

Structure of the organization

HUL has about 15,000 employees, including over 1400 managers.

DERIVATION OF MODULESAIM

The aim of this assignment is to study the motivational techniques & modules used in the HUL and comprehend & evaluate its ramification on employees output.

PREVIEW

For the ease of understanding and better assimilation the report is divided into the following subheads:

Part I – Organization overview.

Part II – Evolution of Concept.

Part III – Special motivational Modules.

Part IV – Recommendations.

PART I – ORGANIZATION OVERVIEW.

COMPANY PROFILE

Hindustan Unilever Limited (HUL) is India’s largest Fast Moving Consumer Goods

company, touching the lives of two out of three Indians with over 20 distinct categories in Home & Personal Care products and Foods & Beverages. They endow the company with a scale of combined volumes of about 4 million tones and sales of Rs.10, 000 cores. HUL is also one of the country’s largest exporters; the Government of India has recognized it as a Golden Super Star Trading House.

The mission that inspires HUL’s 36,000 employees, including over 1,350 managers, is to “add vitality to life.” HUL meets every day needs for nutrition, hygiene, and personal care with brands that help people feel good, look good and get more out of life. It is a mission HUL share with its parent company, Unilever, which holds 51.55% of the equity. The rest of the shareholding is distributed among 380,000 individual shareholders and financial institutions.

HUL’s brands –

• Food brands
• Home care brands
• Personal care brands
• Water
• Nutrition
• Health, hygiene & beauty

The operations involve over 2,000 suppliers and associates. HUL’s distribution network, comprising about 7,000 redistribution stockiest, directly covers the entire urban population, and about 250 million rural consumers.

HUL has traditionally been a company, which incorporates latest technology in all its operations. The Hindustan Unilever Research Center (HULRC) was set up in 1958, and now has facilities in Mumbai and Bangalore. HULRC and the Global Technology Centers in India have over 200 highly qualified scientists and technologists, many with postdoctoral experience acquired in the US and Europe.

Structure of the organization

HUL has about 15,000 employees, including over 1400 managers.

PART II – EVOLUTION OF CONCEPT

DERIVATION OF MODULESFrederick Herzberg’s two-factor theory, a.k.a. intrinsic/extrinsic motivation, concludes that certain factors in the workplace result in job satisfaction, but if absent, they don’t lead to dissatisfaction but no satisfaction.

http://www.valuebasedmanagement.net/images/picture_herzberg_factor_theory.gif

Motivators; (e.g. challenging work, recognition, responsibility) which give positive satisfaction.

Hygiene factors; (e.g. status, job security, salary and fringe benefits) that do not motivate if present, but, if absent, result in demotivation.

These modules apparently derive their inspiration from Herzberg’s two factor theory and bear a close affinity to its factors.

HUL feels that instead of fixing the working conditions that employees are complaining about, to strives ahead finding new ways of recognizing their efforts. A simple technique is to hold regular meetings where each employee is asked to say what went well for them since the last meeting, what they did that they are especially pleased about. This simple practice gives employees an opportunity to tell their colleagues what they did and get some public recognition for a job well done.The continuing relevance of Herzberg is the fact that there must be some direct connection between performance and reward, whether extrinsic as in recognition or intrinsic as in naturally enjoyable work, to motivate employees to work harder and to improve their job satisfaction.

EMPLOYEE MOTIVATION MODULES

Objectives:

• To recognize the achievements of the employees
• To motivate the employees to perform better
• To increase the sales revenue and the profit margins of the company

Competitive Reward; Reward for Performance

HUL’s reward philosophy is to provide market competitive salary and benefits with a strong linkage between performance and pay as it is a technique to motivate its employee to enhance their performance.

• Fixed Salary that is competitive with our peer companies
• Variable Salary that is linked to company and individual performance
• Equity compensation (at eligible levels) that is linked to long term (3 year) company performance and your potential.
• Benefits and Perquisites aimed at providing you choices.
• Retirement benefits that are market competitive.

PART III – SPECIAL MOTIVATIONAL MODULES

SPECIAL MOTIVATIONAL MODULES

Modules Outline:

1) STAR OF THE MONTH (SOM)

This is a performance based award

Rating of the employees is done on the grade basis

These grades are given on the basis of achievements of targets, best five should be selected.

2) CUSTOMER DELIGHT:

This is a performance based award

This award should be given to the employees with least number of complaints, with most speedy delivery, with most accurate data, with most orderly data

3) ACHIEVEMENT – TALK BOOK (A-T BOOK):

All achievements of the employees can be talked in this monthly book

This is a very good way of public recognition

This book will be circulated at the beginning of every month.

4) STAR OF THE QUARTER – (SAQ):

This is a performance based award

Rating system is required

These grades are given on the basis of achievements of targets, best five should be selected

5) THINKING OUT OF THE BOX AWARD -(TOTB)

This is the way of idea/suggestion management 

An issue can be put up and employees can be asked to give their suggestions or ideas on the concerned issue 

Web based applications like emails can be used to collect and evaluate the suggestions/ideas.

Idea/suggestion board can be put up in the cafeteria and learning center, as these places are easily accessible to all employees.

Best ideas would be collected on the monthly basis but rewarded on the quarterly basis

Feedback can be given to the employee through web or through phone, voice mails etc.

6) ON THE SPOT:

This is an on the spot award

This award can be given to the employees for their on the spot attitude towards some particular situation

This is a mere recognition for good and humble gestures towards peer and presence of mind throughout

Their managers give this award to the employee as they can keep a constant observation on their employees.

SOM: SOM is performance-based award, which is measured completely on the basis of an employee s performance within the working place. The employee is awarded on the basis of the rating given to him and this rating of the employees is done on the grade basis, which already exist within the organization. These grades are given to the employees on the basis of their achievements of targets set by their managers or supervisors. This is a monthly award where employees are rated for a month and then the deserving candidate is awarded. The best five are selected.

PURPOSE:

STAR OF THE MONTH award, which is given as per the ratings of an employee. This is a quarterly based award.

First of all work plan to the employee of each department is allotted

and set target are given. The work plan of an employee consists of PARAMETERS and the MILESTONES to be achieved.

These MILESTONES have some POINTS allotted.

REWARDS: The department head takes the final decision and gives away the award to the

employees on the ceremony-honoring employee ceremony.

2) CUSTOMER DELIGHT:

Customer delight is again a performance-based award, which is given to the

employees for performing well. As we know that an employee not only has external

customers but also internal customers i.e. the employee of the other departments An

employee has to deal with various other employees within the branch, they can be from

the same department as well as other department. Thus the employee

With the least number of complaints

With most speedy delivery of data

With most accurate data

With most orderly data

The employees get to fill a customer delight form on basis of which the most suitable candidate is selected for this award. Maximum of 5 employees can be selected for the award. The customer delight form is as follows:

I AM DELIGHTED!!!

MY NAME MY DESIGNATION MY DEPARTMENT

I VOTE FOR

HIS/HER NAME:

HIS/HER DESIGNATION:

HIS/HER DEPARTMENT:

I VOTE BECAUSE:

I HAVE NO COMPLAINTS AGAINST THIS EMPLOYEE

THIS EMPLOYEE PROVIDES A SPEEDY DELIVERY

THIS EMPLOYEE PRODUCES ACCURATE DATA

THIS EMPLOYEE PRODUCES MOST ORDERLY DATA

THIS EMPOYEE SHOWS A DECENT CONDUCT

OTHER REASONS____________________________________________________________

WHAT WOULD HAVE HAPPENED IF HE/SHE DID NOT DO

WHAT HE/SHE DID?_____________________________________________________

_____________________________________________________________________

THINGS I WOULD DO TO EXPRESS MY THANX:___________________________________

_______________________________________________________________________

SIGNATURE

PURPOSE:

Customer delight is an award to promote and recognize employees for outstanding customer service.

REWARDS: Department heads makes the final decision. A ceremony-honoring employee is conducted where the 3 employees are awarded for their outstanding customer service.

The head of the branch would give away the award on the ceremony day.

3) A-T BOOK:

A-T Book is a monthly issue of a book, which is circulated in all departments of the office. This book talks about the achievements of the employee and gives them the peer recognition in this form. As every employee loves to be recognized at his working place and amongst the people he works with, this is a very effective form and way of recognizing ones performances. This book consists of:

• Detailed information about the employees who have achieved some milestone during the month.
• The detail of the day and month of the achieved milestone.
• Birthday wishes are sent to the employees through this book.
• Various articles or precious experiences of employees.

PURPOSE:

A-T book is an ACHIEVEMENT – TALK BOOK, which provides an employee, with the public recognition amongst the peers in the organization. This book is a great means of boosting the confidence and recognizing the performances and deeds of an employee in public. This recognition makes him/her feel recognized and motivated and definitely proves to be a boon in improving performance.

REWARDS: No one gives away this award as this recognition comes in a book form and talks about people s achievements. Public recognition to all the achievers.

4) SAQ:

SAQ award is again a performance-based award, which is measured completely on the basis of an employee s performance within the working place. The employee is awarded on the basis of the rating given to him and this rating of the employees is done on the grade basis, which already exist within the organization.

These grades are given to the employees on the basis of their achievements of targets set by their managers or supervisors. This is a quarterly award where employees are rated for a quarter and then the deserving candidate is awarded. The best five are selected.

PURPOSE:

STAR OF THE QUARTER award, is given as per the ratings of an employee. This is a quarterly based award.

Targets for the quarter are given which is the parameter to judge PARAMETERS and the MILESTONES to be achieved.

These MILESTONES have some POINTS allotted.

REWARDS: The department head takes the final decision and the branch head gives away the award to the employees on the ceremony-honoring employee ceremony.

5) TOTB:

Every individual in this world has a viewpoint and has an idea or a suggestion waiting to pop out of his/her brain. So if these suggestions or ideas of the employees in the organization are used in a fruitful and an effective manner can work wonders for an organization. Thus it is really important to have an idea/suggestion management in an organization. This scheme of TOTB is a quarterly award. According to this scheme an issue can be put up in the cafeteria and learning center as the employees have a frequent and easy access to these places, and hence the employees can present these ideas and suggestions. Now since collecting and evaluating the ideas is a major work, it can be done through web base applications like: emails, intranet etc.

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PURPOSE:

The TOTB award is THINKING OUT OF THE BOX AWARD. This award is given to the employee/employees for their capability of giving some much needed extraordinary suggestion or idea to the branch management, the suggestion which is helps the management come out of crisis or helps the management to save the maximum and gets implemented is the best suitable for this award. This award is to foster employee suggestions to improve and cut downs in financial terms which ultimately help in productivity.

REWARDS: Department head makes the final decision, and the branch head gives away the award.

6) ON THE SPOT AWARD:

Some deeds of employees on a daily basis are so humble that they need to be recognized. It is sometimes not possible to recognize every individual on a daily basis, thus at such time recognizing an individual on the spot is an important and a sensible thing to do. According to this scheme employees can be awarded:

To the employees for their on the spot attitude towards some particular situation

For good and humble gestures towards peer and presence of mind Throughout

PURPOSE:

ON THE SPOT award is neither a monthly nor a quarterly award, as the name suggests it is an on the spot, instant, spontaneous award. It is not even a performance based award. As per this award the first level managers would recognize the employee.

The purpose of this award is to recognize the employees who go extra mile or who perform above and beyond the call of duty , and many such exceptional courtesies.

REWARD: The first level manager or supervisor can recognize the eligible employee, as he/she can very well observe the employees and their deeds at the working place.

PART IV – RECOMMENDATIONS

RECOMMENDATIONS:

Monetary as well as the non-monetary awards both are equally important but the main aim is to reward or recognize employees time to time.

The recognitions like congratulatory cards, wall of fame, public applause, public recognition is of great importance.

Performance should be considered as the criterion for rewarding 

There should be rewards or recognitions such that the employee can get to celebrated the reward with his family members as well.

The managers should make sure that he has one-to-one interactions with their employees and colleagues Rewards should always be achievable and not out of reach by employees.

CONCLUSION

Closely related to employee satisfaction and morale, employee motivation may be considered both an action and a status. The action occurs when management takes steps to foster a work environment where employees are self-driven to perform their job tasks at a level that meets or exceeds management’s standards.

In today’s turbulent, often chaotic, environment, commercial success depends on employees using their full talents. Yet in spite of the myriad of available theories and practices, managers often view motivation as something of a mystery. Thus the pertinence of identification of the motivators in the varied spheres of Social, Mental and Physical dimension take precedence.

A positive motivation philosophy and practice improves productivity, quality, and service & Motivation helps people:

• Achieve goals;
• Gain a positive perspective;
• Create the power to change;
• Build self-esteem and capability,
• Manage their own development and help others with theirs.