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The factors of effectiveness and efficiency in organizations

Paper Type: Free Essay Subject: Business
Wordcount: 5456 words Published: 1st Jan 2015

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The most significant term for factors which effectiveness and efficiency in organization is enhances the employees’ job satisfaction as well. Because the employees is the utmost important factor when it come to the turnover maximization. It is very tough to be success without employees’ efforts and commitment in organizations.

In organizations job satisfaction and commitment are vital to hypnotize and attract well-qualified personnel. According to the importance of the knowledge-based division, such as the senior education division the employees’ job satisfaction and organizational commitment are more critical. These factors are important for the restaurant related organization. Not only that. But also important in hospitality and entertainment related organizations.

According to the research, the best way for improve employee’s performance, creativeness, motivation is increasing commitment of the each employee. It can be reduced absenteeism and employee turnover. That is why there commitment is a benefit in an organization.

It is necessary to investigate about employees’ job contentment/satisfaction and organizational commitment such as observed relationship between the lower levels of job satisfaction and commitment and prohibiting symptoms of absenteeism, criticism expression, lower morale and higher turnover, tardiness. Due to the necessity of the retaining a stable and loyal workforce, job satisfaction and organizational commitment are more significant indicators for managers. So the researchers well understand about the reasons that authority an individual’s decision to retain or leave in organization.

In the employees’ commitment to the workplace is referred to as organizational commitment. A variety of factors influence an employee’s relationship to work. Relevant issues include satisfaction, wages to the workplace. This study focuses on employee’s commitment to the organization in which they work and examines demographic factors that significantly influence this commitment.

Meyer and Allen’s conceptualization could be defined about this organizational commitment. They have asserted many definitions about this organizational commitment, it is the relationship with the organization and it links for decision to proceed employment with the organization. Actually it’s a psychological condition for employees. Employees are interest to retain with the organization because of the “committed”

When going to describe about psychological state Meyer and Allen’s conceptualization were different with others. There are three dimensions as they emphasize about organizational commitment.

affective commitment,

continuance commitment and

Normative commitment.

“Affective commitment declares to an employee’s emotional connection to and recognition with the organization.” As this high level of commitment the employee wants to continue their employment as their own want.

“Continuance commitment declares to an understanding of the costs related with leaving from organization.” As this high level of commitment the employee stay with the organization due to their necessity.

“Normative commitment declares a feeling of commitment to continue their employment.” As this high level of commitment the employee feel ought to remain and they stay with the organization.

As said by the literature, the employees’ commitment has a various types of advantages to the organization. Because if is very important factor. Some employees plan to leave from the organization and real turnover due to the negative relationship with organizational commitment. This thing had reported in some studies. The literature describes that the employee works hardly and performs well under high powerful commitment than the low-affective commitment. However, researcher tried to determine whether all employees do have a propensity to manifest parity of organizational commitment.

Problem statement

For keep employees’ retention it is very important to have a commitment to an organization. It is impact for their intention of leave and job performance. In most situations organizational commitment is not in the same level to every employee. The commitment level changes for various kind of working employees of within and outside in the organization.

Today management has to face the challenge what is the present employees’ full potentials towards the prosperity of the organization. There are many employees who are coming from the varied backgrounds. Not only the variety of their social, ethnic and cultural backgrounds, their demographic background also different from each others. It is not possible to make similar level of commitment in organization. Hence the employees get different types of incentives by the management to accomplish their needs. But large number of employees feels negatively about their organization and they maintain very weak adherence to the organization. These employees are coming from the different types of backgrounds and different demographic characteristics. So studying the employees’ relations to the demographic characteristics is very important in organization. Determine the drawbacks of current/present recruitment strategy of employees and identify the best suitable way to select an employee in Domino was the purpose of this study. According to this study, it is vital to consideration of the organizational commitment for the various demographic of employees.

Due to their demographic standings, organizational commitment is very hypnotized fact. So that it is necessary to discover the demographic variables and make real organizational commitment. Therefore organization may capable to integrate all results to their employee recruitment strategy.

The problem can be started as to the following statement.

“Whether the present recruitment strategy of the organization could select the most suitable skilled employee that would sustain the brand name of Domino?”

Objective of the Study

The researcher aspires to achieve following objectives by implementing this study.

The overall objective is to find out whether the present recruitment strategy of the organization could select the most suitable skilled employee that would sustain the brand name of Domino.

The detailed objectives are –

To identify the drawbacks of present recruitment strategy.

To study the best suitable way to select an employee.

To make recommendations with regard to recruitment and selection of employees.

Significance of this Study

“Unless commitment is made, there are only promises and hopes; but no plans” – Peter F. Drucker. Organizational commitment is very precious. Because of the employee who consists with vastly committed, he will recognize the goals and values of the organization well. And they are willing to display superior organizational citizenship performance to the duties due they have a strong aspire to belong to the organization. Human resources should be considered for the competitive advantage of organization well. Job satisfaction is mainly concern with organizational research. Nowadays organization must consider and focus about their commitment successfully. The most important reason for studying this is that researches have been frequently found the important of employee behaviors, absenteeism, such as turnover, and to a lesser extent, job performance (Gruneberg 1979: Mowday, Porter, and Steers (1982). Therefore the organizational commitment and motivation for job satisfaction may have great repercussions for organizational effectiveness.

In an organization the employees arrive from varied ethnic backgrounds, gender, age groups, marital status, educational levels and personality. So the purpose of this study is discovering the effect of selecting the best committed employee as well as discovering strategies of motivation.

For all time Committed employees are more valuable than those with less committed employees (Raju & Srivastava, 1994; Mowday, 1998). So employee motivation for retention is more valuable. That is why this study tries to realize where the diversity of demographic variables of employees has an impact on the organizational commitment.


Difficulty of collecting the data from the employees.

Decided to limit the domain of study to the Domino due the logistical and financial constraints faced by the researcher.

Inauspicious attitudes from the employees and the disappointing response from them.

Limited of the time availability to learn this project.

Sample size is limited.

Bad attitudes from the employees and the unsatisfactory response from the employees.

Resource availability for discovering the useful data is limited.

From the motivation strategies employee can be motivated greatly. Also they can be motivated through other effective factors such as environmental factors. It can be affected for this purpose. These kinds of factors can be use towards the success of the organization.

The layout of the report

This placement report consists with five chapters apart from the addenda and the list of references.

Chapter II signifies the literature review of the theoretical and conceptual background of this study. Formerly it provides literature on varied definitions about motivation, Employee recruitment process, Next it regards as the literature on the theories which proposed in from time to time by the professionals. And also it consists the ways that how motivation impact to the development of the business and the methods are used to motivate their workforce in the Business.

Chapter III symbolizes the organizational outline where the study is carried out. It outlines the record of the organizational mission and vision statements and the objectives. Then it represents the organizational structure and services offered for general public.

Chapter IV comprises analysis of data collected by the questionnaire and the conversation on the findings. It provides the background information on the section, the data collection procedures, analysis of gathered data and concluding.

Chapter V provides the general idea on conversation based on the conclusion of the study and the final remarks. It also supplies information on way for further research with in the same field of study. Further this chapter is discussed for carried out the limitations of this study.




In the previous chapter could present about the background of the study. Also there included the problem statement, objectives of the study, and layout of the report. In addition it provided methodological issues and possible limitations relate to this report. This chapter is regarding to characterize about motivation, its importance towards success of the company and review of motivational theories. The first segment carries out the definition of the motivation. And the second segment talks about about the varied theories of the motivation. Then the third segment declares on how affect motivation on the progress of the business. After that next one review on what methods of the motivation can be used towards the success of the organization when the company in a competitive marketing (climate) environment.

What is motivation

In this sector is discussing about the explanations of motivation and point out those.

Motivation is

“Motivation: The psychological feature that arouses an organism to action towards a desired goal, the reason for that action.”

“Motivation is the internal condition that activates behavior and gives it direction; energizes and directs goal-oriented behavior.

Motivation is a desire to achieve a goal, combined with the energy to work towards that goal. Students who are motivated have a desire to undertake their study and complete the requirements of their course”.

“Motivation is the driving force which allows us take action on our desires or goals. There is always a motivating force behind anything we do and it is the intensity of our motivation which determines how well and how fast we succeed at obtaining what we wish to achieve”.

Motivation is the cause for engaging in distinctive behaviors. Human behavior is very especially when talk about this. Further as studied in economics, neurophysiology and psychology. These causes may consist of basic needs. For example food, hobbies, state of being, and goals. Motivation is mention to persistence of human behavior, direction, initiation and intensity.

Motivational theories

There are many theories on the subject for motivation. For general, according to the motivation source(s) there are two main components come under motivation. It could mention as intrinsic (internal to the person) and extrinsic (outside the person). Further Intrinsic sources can be subcategorized for few classes such as cognitive, affective, cognitive (physical/body, mental/ mind or spiritual/transpersonal)

Figure: 1 Motivation Theory Categories

Extrinsic Motivation

Extrinsic motivation is the motivation that comes from personal outside. Actually it comes from individually such as external motivation factors. Money or grades is appropriate examples for this. These rewards can be kept the satisfaction as well as the pleasure. A person, who has motivated extrinsically, works very hard and tries to complete the task well due to they feel interest about that. Because they know they will get some reward after completing the task well. Sometimes reward can be as simple as smiley face. According to the example, extrinsically motivated employees work on the duties and try to achieve their tasks successfully. As they need to get some reward for completing tasks they strive continuously to fulfill that.

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“Extrinsic motivation is present throughout a person’s life. As a child, an individual experiences it in the form of grades on tests and assignments or in the form of increased popularity that is the result of certain behavior. In adulthood, an individual experiences it in the form of his or her paycheck, status or recognition and even everyday things such as credit card rewards or incentives. Extrinsic motivation can be highly effective in eliciting certain behaviors. A person who is extrinsically motivated might work on a task even if he or she has no interest in it, solely for the purpose of receiving the anticipated reward or avoiding punishment.”

Intrinsic Motivation

Extrinsic motivation is the motivation that comes from personal inside. An extrinsically motivated person is expected a real time interest and unable to force him. So this kind of motivation is difficult to generate. When an organization is going to build an intrinsic motivation for a particular employee they have to make that person occupy in the circumstance or action, you need to explain him in detail why it will advantage him and how is going to develop his life through this. If a teacher wants to impress the lesson to his students as it is he must connect them in to the topic via creating a background of interactivity and live case studies, the students need to pick out the topic as interesting and practical in their lives.

Operant conditioning Theory

“Operant conditioning is a type of learning. In this kind of learning, an individual’s behavior is shaped predominantly through reinforcement. Negative reinforcements, like the burns you received after you touched the hot stove, are likely to weaken behavior. In other words, once you know the negative consequences of touching a hot stove, you weaken the behavior of touching. Positive reinforcements, like scoring an A on a test after hard work, are likely to strengthen your studying behaviors. Operant conditioning is largely attributed to the research of psychologist B.F. Skinner who argued that behaviors become more or less likely to occur based predominately on the effect they induce. He called this “operant” conditioning because the individual or organisms he studied used their behavior to operate on their immediate environments in order to achieve some goal.”

http://www.helium.com/items/560941-introduction-to-operant-conditioning [Access 27/12/2010]

Components of Operant Conditioning

Some key concepts about operant conditioning:

A reinforce is any occasion or increases the behavior it follows. There are two types of reinforces:

Positive reinforces are encouraging events or outcome that are offered after the behavior. It imitates positive reinforcement, a reaction or behavior is strengthening by the new section of something, such as commendation or a fair reward.

Negative reinforces engage the removal of hostile events or outcomes after demonstrate of a behavior. In these kinds of situations, a response is strengthened by the taking away of something considered unsavory.

Social Cognition Theory

Acronym is SCT. “Social cognitive theory provides a framework for understanding, predicting, and changing human behavior. The theory identifies human behavior as an interaction of personal factors, behavior, and the environment (Bandura 1977; Bandura 1986).

In the model, the interaction between the person and behavior involves the influences of a person’s thoughts and actions. The interaction between the person and the environment involves human beliefs and cognitive competencies that are developed and modified by social influences and structures within the environment. The third interaction, between the environment and behavior, involves a person’s behavior determining the aspects of their environment and in turn their behavior is modified by that environment.

In conclusion, social cognitive theory is helpful for understanding and predicting both individual and group behavior and identifying methods in which behavior can be modified or changed.”

The incentive theory of motivation

The incentive theory declares that in fact the environment carry out behaviors. The goal is the vital concept of the incentive theory. Because when the goal is at hand, the person (employee) strives to reach that goal without delay. Incentive motivation can be categorize in to two types as tangible and intangible. Tangible incentive may engage offering awards or something it may offer public recognition as well. And intangible incentive may offer good feeling in relation to oneself. Tangible incentives are named as extrinsic rewards while Intangible incentives are named as intrinsic rewards.

It is very hard to apply suitable motivational techniques rather than it seems. Steven Kerr clarified that when producing a rewards system, it can be very simple to reward A while expecting for B, and its process, gathers risky effects that can endanger your goals. A reinforce is always differ from the reward.


Maslow’s Theory of Motivation – Hierarchy of Needs

In 1943, Dr. Abraham Maslow ‘s article “A Theory of Human Motivation ” appeared in Psychological Review, which were further expanded upon in his book: Toward a Psychology of Being In this article, Abraham H. Maslow attempted to formulate a needs-based framework of human motivation and based upon his clinical experiences with people, rather than as did the prior psychology theories of his day from authors such as Freud and B.F. Skinner, which were largely theoretical or based upon animal behavior. From this theory of motivation, modern leaders and executive managers find means of motivation for the purposes of employee and workforce management. Abraham Maslow’s book Motivation and Personality (1954), formally introduced the Hierarchy of Needs.

The basis of Maslow’s motivation theory is that human beings are motivated by unsatisfied needs, and that certain lower factors need to be satisfied before higher needs can be satisfied. According to Maslow, there are general types of needs (physiological, survival, safety, love, and esteem) that must be satisfied before a person can act unselfishly. He called these needs “deficiency needs.” As long as we are motivated to satisfy these cravings, we are moving towards growth, toward self-actualization. Satisfying needs is healthy, while preventing gratification makes us sick or act evilly.

As a result, for adequate workplace motivation, it is important that leadership understands the active needs active for individual employee motivation. In this manner, Maslow’s model indicates that fundamental, lower-order needs like safety and physiological requirements have to be satisfied in order to pursue higher-level motivators along the lines of self-fulfillment. As depicted in the following hierarchical diagram, sometimes called ‘Maslow’s Needs Pyramid’ or ‘Maslow’s Needs Triangle’, after a need is satisfied it stops acting as a motivator and the next need one rank higher starts to motivate.

Remember, everyone is not motivated by same needs.  At various points in their lives and careers, various employees will be motivated by completely different needs. It is imperative that you recognize each employee’s needs currently being pursued. In order to motivate their employees, leadership must be understand the current level of needs at which the employee finds themselves, and leverage needs for workplace motivation.

Herzberg’s two-factor theory

To better understand employee attitudes and motivation, Frederick Herzberg performed studies to determine which factors in an employee’s work environment caused satisfaction or dissatisfaction. He published his findings in the 1959 book The Motivation to Work.

The studies included interviews in which employees where asked what pleased and displeased them about their work. Herzberg found that the factors causing job satisfaction (and presumably motivation) were different from those causing job dissatisfaction. He developed the motivation-hygiene theory to explain these results. He called the satisfiers motivators and the dissatisfiers hygiene factors, using the term “hygiene” in the sense that they are considered maintenance factors that are necessary to avoid dissatisfaction but that by themselves do not provide satisfaction.

The following table presents the top six factors causing dissatisfaction and the top six factors causing satisfaction, listed in the order of higher to lower importance.

If the motivation-hygiene theory holds, management not only must provide hygiene factors to avoid employee dissatisfaction, but also must provide factors intrinsic to the work itself in order for employees to be satisfied with their jobs.


According to the Frederick Herzberg’s two-factor theory he has defined that how to decrease the demotivation in the workplace. Further the organization can continue the job satisfaction of employees when initiate certain factors in the organization. When absent, they don’t afford to dissatisfaction but also no satisfaction. People can be changed more than their lifetime by the factors of motivate. But organization must guarantee to keep the “respect for me as a person” statement practically. It is the uppermost motivational factor at any stage of being.

He distinguished between:

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

Hygiene factors- Not dissatisfied but not motivated. If present do not motivate but result in demotivation if absent (e.g. company policies, status, personal life, job security, fringe benefits and salary)

The Hygiene factors are used when the presence won’t make you healthier, but also absence be able to cause health drop. The theory is called the “Motivator-Hygiene Theory” as well as “The Dual Structure Theory.”

Herzberg’s theory has initiate application in such professional fields as IS (information systems) and in studies of consumer satisfaction.

Goal-setting theory

Goal-setting theory is focused on the individual interest when attain an evidently defined end state. Oftentimes, this conclusion (end state) is a reward in itself. There are three affective features for goal’s efficiency. Those are proximity, difficulty and specificity. The situation when time between the beginning of behavior and the end state is close, the ideal goal should be presented. Further this describes that children are motivated more when learning bike-riding than learning algebra. A goal should not be too easy or too hard. It should be intermediate. In both cases, majority are not fully motivated, as several want a challenge (assumes some sort of insecurity of success). Always people need to believe that there is a sufficient probability that they’ll succeed. Specificity is concerning the explanation of the goal in their particular class. Always the goal must be intelligible and objectively defined for the individual. Most children don’t know how to put adequate effort for reach to the goal.

Expectancy and Contingency Theories

Expectancy and contingency theory says the employees’ behavior and their goals aren’t simple while they work. Further this theory says individual factors (such as skill, personality, experience, abilities and knowledge) are the foundation for employee performance at work. The theory proposes they can motivate well if they believe their effort lead to increase performance and performance results in pleasing reward even if the persons have varied sets of goals.

The reward satisfies a significant need as well. Then the wish to gratify the need is strong to build the effort maximizes benefits and reduces pain. In this unity, all managers should recognize the individual’s value as their valence such as promotion, money, benefits, time-off or satisfaction rewards.

Managers should recognize what are the most appropriate training, supervision and resources for each employee’s need. Because of the Employees have different confidences and expectations according to their ability of doing. This is called as expectancy. Further, each employee may identify as whether they will get what they wish. So managers must make sure their promises of rewards are completed and employees are conscious of these rewards. The instrumentality means the employee perception of reward. In this method when manger wants to motivate employees, he can apply this expectancy theory.

According to the Contingency theories of employees could recognize the leadership and it’s very important to discern that how to work in different organizational situations and how to work with different types workers. Further amend the leadership to particular situation or amend the situation according to leadership style to manage workforce properly and motivate them.

This theory identifies organizational structural problems such as delegation, span of control, centralization opposed to decentralization, levels of management, decision -making process, which compatible with the internal and external environment and the static and active nature of the external and internal environment.

The contingency theory regards to organizational culture, conflict level, individual differences, and the recognition of these variables to stimulate employees in the organization. The employees’ motivation must be different from one organizational type to another organizational type. It depends on diverse of organizational culture, profile of human potential, planning horizons, personality, technology, individual differences, skill, and the nature of external and internal environment, experience, structure of organization, knowledge, group behavior and dynamics.

How Impact Motivation on Development of Business

Motivation of the employee is directly affects to the success of any business. Human resources are most vital to the productivity, performance and prosperity of any company. So, in order to create an environment with the best performance, the key is “the motivation”.

Every one has their self incentives and own set of motivations to work hard with commitment or not as the case may be. Although some persons are motivated by cash incentives, others are motivated by recognition. Money is not the only one motivational factor in the work station. Incentive programs of employee are very important to ensuring workers feel appreciated and worthwhile. These programs are very great due to they are extremely individualized. Managers must recognize the needs and wants of their employees through these programs. Motivation can be increased through the incentive programs. Because they are encouraging productive performance as well as show employees the business cares.

Increasing employee motivation is the major impact of increased productivity. This is a primary aim while adopting a motivation program. If you increase the employee motivation, you will be able to increase the productivity as similarly to that. Then the bottom line will be increased as well.

Employee incentive programs are the best solution to long term benefits for the organization. Because it can promote work place harmony and increase employee performance.

There are two major factors affect on the development and progress of the business by motivated employees. Those factors are the company loyalty and staff retention. Incentive programs of employee offer rewards for hard works, outstanding performance and final results. Employees are rewarded for their great efforts as they always meet targets and they go beyond those targets by doing a good job. The incentives and rewards differ and act as individual as the workers themselves. Employee motivational programs offer varied rewards that meet the needs of the organization as an entire. The reward system objectives are always in a line with the business goals. Always Individual, team, departmental and organizational objectives are matching each other.

Discussion about the program with employees is very useful to maximize their motivation. This is done by increasing employee incentives. Waste some time for find out your employees really wants of an incentive program. Realize what motivates them and how they would like to be rewarded for fruitful performance. A typical modified program will enhance employee motivation as well as in turn your income.

Either your company is big or small it is essential to motivate employees to the company success. In the present work station human resources are more valued beyond all others. Always motivated employees are committed, happy and productive. As a result employee turnover will be reduced and improve the company loyalty, driven employees and work place concord.

The Methods of the Motivation can be used in Organization

When reaching to the business goals, it is very essential to keep the effective employee motivation at the place of work. It is very crucial to motivate employees and strengthen them with the purpose of maintain your business competitive with a maximum profitability. As a result you will be able to harness their hard works and talents to the maximum.

Money’s the impetus. It instigates employee motivation.

Everybody is moving according to the color of currency. Definitely the greatest motivational factors for s


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