joslyn sip

7/30/2019 Joslyn Sip

1/37

Page 1

Executive Summary

The project title An analysis on employee motivation and its effect on employee

productivity has been undertaken in the MCF Mangalore plant for a period of 6 weeks in the

organization and got an opportunity to study the different functional areas. I also studied the

various HR strategies and functions of the company.

As production management has to do mainly with how, when and where products are to

be made, it is more important in manufacturing firm than in any other business organization.

The primary objective of production is to ensure quality product and service on a continuing

basis with least possible cost both for the unit and its customers.

The finance department concerned with establishing an effective system of finance and

cost accounting.

The maintenance department ensures proper inspections, storage and issuing materials like

Naphtha, Fuel oil and other bulk consumables like bags equipments and spares.

Managing the man power is the most important in any organisation. It is a challenging

task because of the dynamic nature of people. No two people are the same in their mental

ability, personality or knowledge etc hence to manage them is a great task. Human resource

service at MCF Ltd supports the company to fulfil our commitment to excellence in

productivity, customer focus and community services. Our primary objective is to foster a

work environment in the company to achieve the goals of the organization.

The Company was running under a loss some years ago but due to the invention and

adoption of new technology, now has a great turnover. It has adopted most of the safety

measures for the benefits of workers. The total productive management, the 5 S approach and

TQM have helped the company to revive and grow.


2/37

Page 2


3/37

Page 3

Mangalore Chemicals and Fertilizers Limited (MCF), with a turnover of over Rs. 2,520.11

Crores (FY 2010-2011), is the only manufacturer of chemical fertilizers in the state of Karnataka.

The factory is strategically located at Panambur, 9 km north of the Mangalore city, on the banks

of the River Gurpur opposite the New Mangalore Port. The plant is well-connected, both by rail

and road. The West Coast National Highway (NH-17) from Kochi to Mumbai separates MCF

from the New Mangalore Port Trust.

The Company is a part of the UB Group with Group shareholding of 30.44%. Dr. Vijay

Mallya is the Chairman of the Board of Directors. The operations are managed by a team of

highly dedicated and experienced professionals.

The New Mangalore Port is an all weather port capable of handling ships up to 30 feet

draft. The main raw materials like Naphtha, Fuel oil, Ammonia and Phosphoric acid are obtained

through the port.

The company has the capacity to manufacture 2,17,8800 MT ammonia (intermediate

product), 3, 79,500 MT Urea, 2, 55,500 MT Phosphate Fertilizers (DAP & NP 20:20:00:13), 15,

330 MT Ammonium Bi-Carbonate (ABC) and 33,000 MT Sulphuric acid (SAP) annually. The

design and engineering of the Ammonia/Urea Plants were done by Humphreys & Glasgow

Limited, London, a leading international firm in the fertilizer field and their associates,

Humphreys and Glasgow Consultants Pvt. Ltd., Bombay. (The firm has now merged with Jacobs

Engineering, USA). The Phosphate Plant is designed and engineered by Toyo Engineering

Corporation, Japan. PDIL and Furnace Fabric- these Indian firms were involved in the

construction of ABC and SAP respectively.

The construction work started with the first pile driven on October 15, 1972 by the then

Chief Minister, Shri D. Devaraj Urs. The Ammonia/Urea plants were commissioned in March 15,

1976.


4/37

Page 4


5/37

Page 5


6/37

Page 6

What do you mean by the word problem?A problem is a system at unrest (Russell Ackoff and Emery 1972). A system is

anything (subject, object, property or event) that is made of two or more parts.

There are 4 kinds of problems

1. Simple problem

2. Complex problem

3. Unstructured problem

4. Wicked problem

Business today is problem resolution management. There are several major problems that

have to be resolved both at the global and national levels, the industry and corporation level and

the internal departmental and divisional/functional levels.

Taxonomies for Classifying Business Management Problems

Is it a market related?Yes it is an unmet need, want or desire. The motivational techniques currently are

traditional are outdated. They need to be revised with the help of innovational ideologies. The

want of deserving something better so as to keep happy the employees in their work life is the

need of the hour at MCF.

After all its only through employee motivation that results in his job involvement that

also results in increased productivity.

Is it a product- related?Yes definitely it is cost related: high investment is done to design and to implement the

training program in order to effectively conduct the training.

Is it a legal problem?Not applicable

Is it environment- related problem?Not applicable


7/37

Page 7

Upstream, Midstream & Downstream Value Chain Innovation

Upstream value chain relates to ideation, concept development, planning, budgeting and

the like until the new product is designed and engineered.

Midstream value chain relates to the proper sizing, shaping, streaming, packing, bundling

and the like stages until the product / service is market ready.

Downstream value chain deals with commercialization and relates to pretest marketing ,

test marketing & accordingly , pricing, promoting , retailing , advertising and launching strategies

and processes. (Evidence: observational study/questionnaire/data analysis)

Upstream Business Functional Value Chain Innovation

Old and new employee motivation and morale boosting strategies and procedures.This is supported by my study and observation on employee motivation at MCF. Motivation is

that factor that helps boost an employees morale and compels to like his job. An employee if

satisfied with his job tends to perform better and meet his/her targets as per the organizations

goals.

During my 6 weeks observational research at MCF, Panambur the employees have a sense of

pride, although working in an organization with a traditional working atmosphere with no

recreational facilities.

SIP is primarily engaged in problem identification, problem definition, problem formulation,

problem specification, and secondary data collection to situate the problem, primary data

collection to throw further light on the problem and its solution alternatives; problem-resolutions

investigation and alternatives assessment, final problem resolution selection, and final resolution

consequences assessment.


8/37

Page 8


9/37


10/37

Page 10

Competitors:

Zuari Industries Rashtriya Chemical Nagarjuna Fertilizers Chambai Fertlizers

To what extent are the controllable variables associated with quality?

The above mentioned controllable variables have a direct relationship on the mind-set of the

employee which could affect their productivity. Making the necessary changes in the motivational

factors may result in improved work life quality of both the employee and the organization as a

whole. The revision and introduction of new innovative motivational techniques will attract the

employee into his/her job.

To what extent are the uncontrollable variables associated with employees?

Motivational factors boost an employees productivity level which helps in achieving the

organizational goals. The relationship is intense enough that any uncertain change in any of the

motivational factors will lead to an ill-effect on employees performance at work and will in turn

affect the organizations productivity.

Categorize variables into controllable and uncontrollable from the consumers viewpoint

Controllable variables: Uncontrollable variables

Traditional motivational techniques Attractive job offers ( Naukri.com,

Monster.com, Kareer edge.com, Likedin etc)

Regulation and compliance Employee intrinsic motivation

Performance Appraisal system Government policies

Recreational facilities Family

Promotional Activities


11/37

Page 11

Problem specification involves asking the relevant questions to ask about every problem.

Problem specification investigates who did wrong, what went wrong, how, when, where, how


12/37

Page 12

often, with whom, how and why? The more relevant questions you ask the right way with the

right people, the more complete is problem specification.

Traditional motivational techniques, Performance appraisal system, Promotional activities& Attractive job offers ( Naukri.com, Monster.com, Kareer edge.com, Likedin etc) and

Social networking sites (Orkut Facebook, Google+)

The relationship between these variables is that they are contradicting terminologies.

Employees are attracted towards new job offers in the business world as the motivational factors

in their existing company seem to be less attractive. With the introduction of new innovative

methods in the motivational techniques, Performance appraisal system, Promotional activities

there will be a reduction in the attrition rate and an increase in the performance of employees.

Monetary benefits & Inflation and RecessionMost employees feel that monetary benefits are a source of motivation and some even work

just for the sake of money. Providing these employees with additional monetary benefits in form

of insurance schemes, incentive plans, hike in salary on a timely basis will help motivate them in

times against inflation and recession.

Regulation and compliance & Government policiesThe organizational has certain criterias as per which the employees are provided with

benefits that motivate them to perform better. The introduction of policies in favor of the

employee, induce the organizations to make provisions for the employees.


13/37

Page 13


14/37

Page 14

TABLE No: 1

Total Sample Size 60

STATEMENT SHOWING THE EDUCATIONAL QUALIFICATION

PUC Graduation Post Graduation Any Other Please Specify(Diploma)

NIL 28 19 13

CHART No: 1

CHART SHOWING THE EDUCATIONAL QUALIFICATION

INTERPRETATION

Here among the 60 data samples collected 32% are post graduates, 47% are graduates and 22%

are diploma holders.

POST

GRADUATION

GRADUATION PUC ANY OTHER

(DIPLOMA)

32%

47%

0%

22%

Educational Qualification


15/37

Page 15

TABLE No: 2

STATEMENT SHOWING THE FUNCTIONAL DEPARTMENTS

HR Finance Operations Systems Logistics Safety

15 14 14 1 13 3

CHART No: 2

CHART SHOWING THE RESPONDENTS IN THE FUNCTIONAL DEPARTMENTS

INTERPRETATION

2% belong to the logistics dept, 5% belong to the safety dept, 25% belong to the HR dept, 23%

belong to the finance dept, 23% belong to the Operations dept and 22% belong to the Systems

department.

HR

25%

FINANCE

23%

OPERATIONS

23%

SYSTEMS

22%

LOGISTICS

2%

SAFETY

5%

Respondents in the Functional Departments


16/37

Page 16

TABLE No: 3

STATEMENT SHOWING THE EMPLOYEE TENURE AT MCF

1 to 5 years 6 to 10 years 11 to 15 years 16 to 20 years Above 21 years

5 16 21 13 5

CHART No: 3

CHART SHOWING THE EMPLOYEE TENURE AT MCF

INTERPRETATION

8% of the 60 employees interviewed have worked between 1-5 years, 27% have worked between

6-10 years, 35% have worked between 11-35 years, 22% have worked between 16-20 years and

8% have worked for above 21 years at MCF, Panambur Mangalore

1 TO 5 YEARS 6 TO 10 YEARS 11 TO 15 YEARS 16 TO 20 YEARS ABOVE 21

YEARS

8%

27%

35%

22%

8%

EMPLOYEE TENURE AT MCF

IN PERCENTAGE


17/37

Page 17

1. Does the mission or purpose of your company make you feel your job is important?

INTERPRETATION

80% employees believe that the mission of MCF suits their job profile, 3% dont believe it to be

so and 17% believe that it may be linked to their jobs.

YES NO MAY BE

80%

3%

17%

IMPORTANCE OF JOB BASED ON

COMAPNY MISSION OR PROFILE


18/37

Page 18

2. Your opinion on the communication system followed in the organization?

Interpretation:

27% employees are highly satisfied with the communication system, 35% are satisfied, 20% have

a neutral approach, 12% are dissatisfied and 6% are highly dissatisfied with the communication

system at MCF.

27%

35%

20%

12%6%

COMMUNICATION SYSTEM IN THE

ORGANISATIOINHIGHLY SATISFIED SATISFIED NEUTRAL

DISSATISFIED HIGHLY DISSATISFIED


19/37

Page 19

3. Is the management at MCF really motivating the employees

Interpretation:

34% employees believe that they highly agree with motivational practices at MCF, 20%

employees believe that they agree, 43% have a neutral opinion, 25% disagree and 1% highly

disagree.

\

STRONGLY

AGREE

AGREE NEUTRAL DISAGREE SRTONGLY

DISAGREE

34% 20% 43% 2% 1%

MOTIVATION PROVIDED TO

EMPLOYEES


20/37

Page 20

4. Which type of incentives motivates you more?

Interpretation:

23% employees are motivated by financial incentives, 15% are motivated by non-financial factors

and 62% are motivated by both the factors.

FINANCIAL

INCENTIVES

NON-FINANCIAL

INCENTIVES

BOTH

23%

15%

62%

MOTIVATIONAL FACTORS


21/37

Page 21

5. Rank the following factors which motivates you the most?(Rank 1, 2, 3, 4. respectively)

Interpretation:

30% employees say that an increase in salary motivates them better, 35% say that promotion

motivates them, 10% say that a leave absence motivates them, 10% say motivational skills and

15% say that recognition in the company motivates them.

30% 35% 10% 10% 15%

SALARY

INCREASE

PROMOTION LEAVE MOTIVATIONAL

SKILLS

RECOGNITION

RANKING MOTIVATIONAL FACTORS


22/37

Page 22

6. How far you are satisfied with the incentives provided by the organization?

Interpretation:

20% are highly satisfied with the incentives, 13% are satisfied, 39% have a neutral approach, 15%

are dissatisfied and 13% are highly dissatisfied.

20%

13%

39%

15%13%

SATISFACTION LEVEL WITH REGARDS

TO INCENTIVESHIGHLY SATISFIED SATISFIED NEUTRAL

DISSATISFIED HIGHLY DISSATISFIED


23/37

Page 23

7. Do you think that the incentives and other benefits will influence your performance?

Interpretation:

90% of the employees performance is influenced by the incentives, 7% are not influenced and

3% have no opinion about it.

90%

7%3%0%

20%

40%

60%

80%

100%

INFLUENCE DOES NOT INFLUENCE NO OPINION

INFLUENCE OF INCENTIVES ON

PERFORMANCE


24/37

Page 24

8. Are you satisfied with the opportunities you have at work to learn and grow?

Interpretation:

12% are highly satisfied with the opportunities at MCF, 28% are satisfied with the opportunities,

40% are neutral, 15% are dissatisfied and 5% are highly dissatisfied.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

HIGHLYSATISFIED

SATISFIED NEUTRAL DISSATISFIED HIGHLYDISSATISFIED

SATISFACTION WITH OPPORTUNITIES


25/37

Page 25

9. Rate the Training and development program given to employees at MCF

Interpretati

on:

35% are

highly satisfied, 17% are satisfied, 33% are neutral, 10% are dissatisfied and 5% are highly

dissatisfied about the training and development program at MCF.

35%

17%

33%

10%

5%

TRAINING AND DEVELOPMENT

PROGRAM


26/37

Page 26

10.Does the management involve you in decision making which are connected to yourdepartment?

Interpretation:

20% say that are involved in the decision making of the company, 10% are not involved and 70%

are occasionally involved in the decision making process

YES NO OCCASIONALY

20%10%

70%

EMPLOYEE INVOLVEMENT IN DECISONMAKING


27/37

Page 27

11.Are you satisfied with the recreational facilities provided by the organization?

Interpretation:

25% are highly satisfied, 30% are satisfied, 35% have a neutral approach, 6% are dissatisfied and

4% are highly dissatisfied with the recreational facilities provided by MCF

25%

30%

35%

6%

4%

10%

SATISFACTION WITH RECEREATIONAL

FACILITIESHIGHLY SATISFIED SATISFIED NEUTRAL DISSATISFIED HIGHLY DISSATISFIED


28/37

Page 28

12.Tick the appropriate boxes:a. Need for a reasonable periodical increase in salary

Interpretation:

60% employees strongly agree that they need an increase in salary, 30% agree, 5% are neutral,

2% disagree and 3% disagree with the fact that they need an increase in salary.

STRONGLY

AGREEAGREE

NEUTRAL

DISAGREE SRTONGLY

DISAGREE

60%

30%

5%2%

3%

INCREASE IN SALARY


29/37

Page 29

b. Job security exists in the company

Interpretation:

55% strongly agree, 20% agree, 20% are neutral, 3& disagree and 2% strongly disagree that there

exists job security at MCF.

STRONGLYAGREE

AGREE NEUTRAL DISAGREE SRTONGLYDISAGREE

55% 20% 20% 3% 2%

JOB SECURITY


30/37

Page 30

c. Good relationship with co-workers

Interpretation:

60% strongly agree, 20% agree, 10% are neutral, 6% disagree and 4% strongly disagree that they

have a good relationship with co workers.

60%20%

10%

6%4%

GOOD RELATION WITH CO WORKERSSTRONGLY AGREE AGREE NEUTRAL

DISAGREE SRTONGLY DISAGREE


31/37

Page 31

d. Effective performance appraisal system

Interpretation:

40% strongly agree, 35% agree, 35% are neutral, 10% disagree and 10% strongly disagree with

the fact that MCF has an effective performance appraisal system.

40%35% 35%

10% 10%

STRONGLYAGREE


EFFECTIVE PERFORMANCE

APPRAISAL SYSTEM


32/37

Page 32

e. Effective promotional opportunities in the organization

Interpretation:

20% strongly agree, 10 agree, 40% are neutral, 20% disagree and 10% strongly disagree with the

effective promotional activities at MCF.

STRONGLY

AGREE


DISAGREE

20% 10% 40% 20% 10%

EFFECTIVE PROMOTIONAL

OPPORTUNITIES


33/37

Page 33

f. Good safety measures adopted in the organization

Interpretation:

60% strongly agree, 25% agree, 10% are neutral, 3% disagree and 2% strongly disagree that MCF

has good safety measures at its Mangalore Production Plant.

STRONGLYAGREE


60% 25% 10% 3% 2%

GOOD SAFETY MEASURES


34/37

Page 34

g. Performance appraisal activities are helpful to get motivated

Interpretation:

57% strongly agree, 13% agree, 23% are neutral, 4% disagree and 3% strongly disagree that the

performance appraisal system at MCF helps getting motivated.

STRONGLY

AGREE


DISAGREE

57% 13% 23% 4% 3%

PERFORMANCE APPRAISAL HELPS

MOTIVATION


35/37

Page 35

h. Support from the co-worker is helpful to get motivated

Interpretation:

30% strongly agree, 23% agree, 37% are neutral, 3% disagree and 7% strongly disagree that there

exists support from co workers that helps in motivation.

30%

23%

37%

3%

7%

STRONGLYAGREE


SUPPORT FROM CO WORKERS HELPS

MOTIVATION


36/37

Page 36

i. Company recognize and acknowledge your work

Interpretation:

20% strongly agree, 30% agree, 35% are neutral, 10% disagree and 5% strongly disagree that the

company recognizes their work.

20%

30%

35%

10%

5%

15%

COMPANY RECOGNIZES WORK

STRONGLY AGREE AGREE NEUTRAL DISAGREE SRTONGLY DISAGREE


37/37

joslyn sip

Documents