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    ENGINEERING MANAGEMENT

    FCE 372

    GROUP ASSIGNMENTS

    PRESENTED BY : VINCENT ODHIAMBO ODHIAMBO

    3/25/2014FCE 372 GROUP 11

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    GROUP MEMBERS

    F16/ F16/

    F16

    F16

    F16 F16

    F16

    F16

    3/25/2014FCE 372 GROUP 11

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    TOPIC ISSUE

    Hiring talent is perhaps not as difficult, as is

    retaining and keeping them motivated.

    While favorable image of an organization may attract

    someone to get in, at the same time it is also crucialfor the employees to find appreciation for and

    satisfaction from their work.

    Elaborate this statement and critically discuss theunderlying issues.

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    TABLE OF CONTENTS

    Elaboration of Topic Statement

    Definitions of Motivation, Job satisfaction and Staff turnover

    Staff turnover in depth

    Steps in attracting and retaining talented employees

    Benefits of having motivated and satisfied employees

    Myths about motivation

    Theories of employee motivation

    Strategies for enhancing job satisfaction and motivation

    Challenges in Motivating employees

    Managerial Leadership

    List of References

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    ELABORATION OF TOPIC STATEMENT

    Hiring talent is perhaps not as difficult, as is retaining

    and keeping them motivated.

    While favorable image of an organization may attract

    someone to get in, at the same time it is also crucial forthe employees to find appreciation for and satisfaction

    from their work.

    Elaborate this statement and critically discuss theunderlying issues.

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    In spite of having a good Image and Public

    relation, an organization still needs to address

    issues concerning its employees in order for it tosucceed in retaining them and deriving maximum

    output from them.

    Employees who are not motivated and feeldissatisfied with their jobs may leave their current

    organization for better and more satisfying ones.

    It takes more than just attracting good employees,for success of an organization.

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    Having talented employees does not necessarilyguarantee desired output in an organization. In dealingwith employees, an intangible factor of will or freedom

    of choice is introduced and employees can increase ordecrease their productivity as they choose.

    This human quality gives rise to the need for positivemotivation. An employeesperformance can be defined as

    being determined by the interaction between ability andmotivation:

    Performance = Abilityx Motivation

    The first(Ability) determines what he/she can do, thesecond (Motivation)determineswhat he/she will do.

    What happens if

    Motivation is less than

    1

    or Greater than 1?

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    Therefore motivation is the key element in

    management of employees .It is of utmost

    importance

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    WHAT IS MOTIVATION?

    Motivation is the willingness to do something. It is theconsequence of an interaction between the individualand the situation.

    People who are motivated exert a greater effort toperform than those who are not motivated.

    Motivation is a process which begins with aphysiological or psychological need or deficiencywhich triggers behavior or a drive that is aimed at agoal or an incentive.

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    WHAT IS JOB SATISFACTION?

    Job Satisfaction is the Degree of enjoyment

    employees derive from doing their jobs.

    The more the satisfaction, the more willingnessor drive to do the job or engage in a particular

    activity.

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    WHAT IS EMPLOYEE TURNOVER?

    This is the ratio of number of employees that

    leave a company to the number of employees on

    the payroll.

    The reasons for leaving could be resignation,

    attrition or dismissal.

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    TURNOVER CLASSIFICATION SCHEME

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    As Figure above suggests, the first important distinction in

    turnover is between voluntary and involuntary.Voluntary turnover is initiated by the employee; for example, aworker quits to take another job. Involuntary turnover is initiated

    by the organization; for instance, a company dismisses anemployee due to poor performance or an organizationalrestructuring.

    Another important distinction is betweenfunctional anddysfunctional voluntary turnover. Dysfunctional turnover is

    harmful to the organization and can take numerous forms,including the exit of high performers and employees with hard-to-replace skills, departures of women or minority groupmembers that erode the diversity of your companys workforce,and turnover rates that lead to high replacement costs.

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    By contrast, functional turnover does not hurt an organization.

    Examplesof this type of turnover include the exit of poor performers oremployees whose talents are easy to replace.

    Some voluntary turnover is avoidable and some is unavoidable.Avoidable turnover stems from causes that the organization maybe able to influence. For example, if employees are leavingbecause of low job satisfaction, the company could improve thesituation by redesigning jobs to offer more challenge or more

    opportunities for people to develop their skills. Unavoidableturnover stems from causes over which the organization has littleor no control. For instance, if employees leave because of health

    problems or a desire to return to school, there may be little theorganization can do to keep them.

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    WHY TURNOVER MATTERS

    Turnover matters for three key reasons:

    (1) it is costly;

    (2) it affects a businesss performance; (3) it may become increasingly difficult to

    manage.

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    TURNOVER,MOTIVATION AND JOB

    SATISFACTION

    Job Satisfaction:

    Degree of enjoyment employees

    derive from doing their jobs

    Morale:

    An overall positive employee

    attitude toward the workplace

    Turnover:

    The percentage of employees

    that leave each year

    SATISFACTION/MORALE

    TURNOVER

    TURNOVER

    SATISFACT

    ION/MORALE

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    STEPS TO ATTRACT AND RETAIN

    TALENTED EMPLOYEES

    Brilliant marketing campaign

    When it comes to attracting people from outsideyour company, one of the most important things is

    brand presence. If you have a recognizable brand,built on the back of brilliant and memorablemarketing campaigns, then you become adestination company that people want to work at.

    Fun, energetic brands, especially those with humorin their advertising, tend to be magnets for young,ambitious and talented employees.

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    Great work environment: flexible, caring

    and positive

    Companies that support family lifestyles and

    really support their employees in times of

    need quickly gain a reputation for being great

    places to work. Of course, some unscrupulousemployees will take advantage of a supportive

    system, but over time a positive environment

    tends to gather momentum.

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    Offer great work experience for interns

    and newcomersMost organizations use internships as an opportunity toget some of those annoying odd jobs finished. Most likelythe intern will then tell their friends that the place is

    terrible but, hey, they can now tick it off the to-do list ontheir way to finding somewhere better to work.

    If you give an intern an end-to-end task, one in whichthey can work on something at the beginning, rightthrough to completion and then allow them to witness an

    effect theyve created (perhaps a small scale marketingcampaign) then you not only provide a great learningexperience but you also give them a reason to come back!

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    Know the rates for staff: Make sure its

    attractive and not low

    Although I often talk about salary as being a

    poor motivator of good working performance,

    there is a reality that needs to be faced: if you cut

    too close to the bone with salary packages then

    you are giving an excuse for job applicants to

    look elsewhere. You dont have to be excessive,

    but you do need to make sure youre not at thevery lowest end of the scale unless you can

    provide clear and rewarding career pathways.

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    Offer opportunities to learn, travelbecreative!

    When you want your talented employees to grow, thefirst thought that most management teams have is topush them towards structured education. Although itis effective, you can be a bit more creative and

    memorable than this!Some businesses use employee of the month schemesor a fancy lunch as a reward, but if the aim is toreward your team member andhelp them grow then

    think about extending their world exposure. When yougive someone a memorable experience it is much moreexciting and motivating than any of these predictablerewards.

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    Career progression and opportunities for

    advancement

    There is nothing more demotivating than a

    ceiling. If someone feels they have reached their

    limit within an organization their performancewill plateau and theyll work for comfort. Larger

    companies have the benefit of mapping out a

    career path and providing promotion as anincentive to work harder and achieve more.

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    Profit sharing

    When people feel as though they are part of

    something bigger they tend to present morealtruistic behaviors and a stronger work ethic.One such method is to offer shares or profitsharing for employees that have done

    particularly well, or have been an integral part ofa successful advancement of the company.

    Although it is a monetary reward, profit sharing,particularly by way of shares in the company,

    works differently because it is not seen as cash.When employees feel like they own part of thecompany they work for, they will likely showmore commitment and pride.

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    BENEFITS OF HAVING MOTIVATED AND

    SATISFIED EMPLOYEES

    A well-motivated workforce can provide the following

    advantages:

    Better productivity (amount produced peremployee).

    This can lead to lower unit costs of production and so

    enable a firm to sell its product at a lower price.

    Lower levels of absenteeism

    This is because the employees are content with their

    working lives.

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    Lower levels of staff turnover (the number of

    employees leaving the business).This can lead to lower training and recruitment costs.

    Improved industrial relations with trade unions.

    As there are less complains from your employees sinceyou adhere to the unions regulations.

    Contented workers give the firm a good reputation asan employer.

    This makes it easier for the firm to recruit the bestworkers.

    Higher Quality of Service or Product.

    Motivated employees are likely to improve product

    quality or the customer service associated with a product.

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    MYTHS ABOUT MOTIVATION

    Myth #1 ---I can motivate peopleNot really -- they have to motivate themselves. You can'tmotivate people anymore than you can empower them.Employees have to motivate and empower themselves.However, you can set up an environment where they best

    motivate and empower themselves. The talent lies in knowinghow to set up the environment for each of your employees.

    Myth #2 ---Money is a good motivator

    Not really. Certain things like money, a nice office and jobsecurity can help people from becoming less motivated, butthey usually don't help people to become more motivated.

    A key goal is to understand the motivations of each of your

    employees.

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    Myth #3 --- Fear is a good motivator

    Fear is a great motivator -- for a very short time. That's why

    a lot of yelling from the boss won't seem to "light a spark

    under employees" for a very long time.

    Myth #4 --- I know what motivates me, so I know

    what motivates my employees

    Not really. Different people are motivated by different

    things. I may be greatly motivated by earning time away

    from my job to spend more time my family. You might bemotivated much more by recognition of a job well done.

    People are not motivated by the same things. Again, a key

    goal is to understand what motivates each of your

    em lo ees.

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    Myth #5 -- "Increased job satisfaction means

    increased job performanceResearch shows this isnt necessarily true at all.

    Increased job satisfaction does not necessarily mean

    increased job performance. If the goals of theorganization are not aligned with the goals of

    employees, then employees aren't effectively working

    toward the mission of the organization.

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    EARLY THEORIES OF MOTIVATION

    These include:

    Maslows hierarchy of needs

    Equity Theory

    Mc Gregors Theory X and Theory Y

    MotivationHygiene Theory

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    Rti Jammu

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    Rti, Jammu

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    MASLOWS HIERARCHY OF NEEDS THEORY

    Works on the assumption that the behavior of

    individuals at a particular moment is usually

    determined by their strongest need.

    Based on hypothesis that within every human

    being there exists a hierarchy of five needs.

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    MASLOWS HIERARCHY OF NEEDS

    Self-

    ActualizationNeeds

    Esteem Needs

    Social Needs

    Security Needs

    Physiological Needs

    Self-

    ActualizationNeeds

    Esteem Needs

    Social Needs

    Security Needs

    Physiological Needs

    Rti Jammu

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    Rti, Jammu

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    Five needs:

    1.Physiological: Basic needs of hunger, thirst, shelter,

    sex and other body needs. 2.Safety: security and protection from physical and

    emotional harm

    3.Social: affection, belongingness, acceptance and

    friendship 4.Esteem:Need for both self esteem(self respect,

    autonomy and achievement) and external esteem (status,recognition and attention)

    5. Self-actualization the drive to become what one iscapable of becoming: includes growth, achieving ones

    potential, self fulfillment.

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    EQUITY THEORY

    Outcomes (self)

    Inputs (self)

    Outcomes (other)

    Inputs (other)compared with

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    EQUITY THEORY

    Employees evaluate their treatment relativeto the treatment of others

    Inputs:Employee contributions to their jobs

    Outputs:What employees receive in return

    Theperceived ratioof contribution to returndeterminesperceived equity

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    MC GREGORS THEORY X AND THEORY Y

    Theory X

    People are lazy.

    People lack ambitionand dislike

    responsibility.

    People are self-

    centered. People resist change.

    People are gullible

    and not very bright.

    Theory Y People are energetic.

    People are ambitious

    and seekresponsibility.

    People can beselfless.

    People want tocontribute tobusiness growth andchange.

    People are

    Rti, Jammu

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    Rti, Jammu

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    HERZBERGS MOTIVATION-HYGIENE

    THEORY

    Based on the conclusion that people have two

    different categories of needs:

    Hygiene factorsMotivating factors

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    HERZBERGS MOTIVATION-HYGIENE THEORY

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    STRATEGIES FOR ENHANCING JOB

    SATISFACTION AND MOTIVATION

    Reinforcement/behavior modification

    Additional payments

    Non financial motivation programs

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    REINFORCEMENT /BEHAVIOR

    MODIFICATION

    When rewards are tied directly to

    performance

    When negative consequences are attached directly

    to undesirable behavior

    Positive Reinforcement

    Punishment

    A systematic program of reinforcement to encouragedesirable behavior

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    ADDITIONAL PAYMENTS

    Monetary

    Incentives

    (Not so relevantfor

    Government

    employees)

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    NON FINANCIAL MOTIVATION

    PROGRAMSJob Enrichment

    Provides employees with more variety andresponsibility in their jobs

    Job Enlargement

    The expansion of a workers assignments toinclude additional but similar tasks

    Job RedesignA type of job enrichment in which work isrestructured to cultivate the worker-job match

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    Employee recognition programs

    Employee involvement programs

    Employee participationDelegation of duties

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    CHALLENGES IN MOTIVATING EMPLOYEES

    Varied needs and expectationsEmployees have varying needs andexpectations and what motivates one may notnecessarily motivate the other.

    CostlyIn situations where motivation involves givingincentives in form of cash or awards.

    Managerial problems

    For example, flextime makes it difficult tomonitor employees, and the productionprocess as a whole.

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    MANAGERIAL LEADERSHIP

    The process ofmotivating othersto work to meet

    specific objectives

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    Identifying

    Resources

    Counseling

    Setting

    Verifiable Goals

    & Clear Plans

    Meeting

    MANAGEMENT BY OBJECTIVESCOLLABORATIVE GOAL-SETTING

    Collaborative

    Goal Setting &

    Planning

    Communicating

    Organizational

    Goals & Plans

    Periodic

    ReviewEvaluation

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    MANAGEMENT BY OBJECTIVE PROCESS

    Goal setting

    Subordinate participation

    Implementation

    Performance appraisal and feedback

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    PARTICIPATIVE MANAGEMENT

    AND EMPOWERMENT

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    FIVE FUNDAMENTAL LEADERSHIP

    PRACTICES

    Challenge the process

    Inspire a shared vision

    Enable others to act

    Model the way

    Encourage the heart

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    MANAGERIAL STYLES

    Contingency ApproachThe appropriate style in any situation is conti ngent on the

    unique elements of that situation

    Autocratic Style

    Democratic Style

    Free-rein Style

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    THANK YOU

    Be a good

    motivator

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    LIST OF REFERENCE

    http://www.managementhelp.org/guiding/moti

    vate/basics.htm

    http://www.bized.ac.uk/educators/16-

    19/business/hrm/activity/motivation.htm

    http://www.managementhelp.org/guiding/motivate/basics.htmhttp://www.managementhelp.org/guiding/motivate/basics.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.bized.ac.uk/educators/16-19/business/hrm/activity/motivation.htmhttp://www.managementhelp.org/guiding/motivate/basics.htmhttp://www.managementhelp.org/guiding/motivate/basics.htm