Hira Group comprises of two province of the art fabric units by the name of ‘Hira Textile Mills limited ‘ and ‘Hira Terry Mills Limited ‘ located adjacent to each other at 8km from Manga Raiwand Road, Lahore. Hira Textile produces cotton narration with the installation of an in house deceasing unit and Hira Terry manufactures towels.A The units, apart from bring forthing and exporting their several merchandises all across the universe, are besides a all right illustration of perpendicular integrating where at times the merchandise narration is obtained from Hira Textile and optimally weaved to do towels in Hira Terry. Hira Textile Mills has three offices, Corporate HQ in Lahore and one office in US and Canada, severally. ( Hira Textile Mills company web site )
A dynamic profitable and professionally managed successful concern organisation. ( Hira Textile Mills Annual Report, 2011 )
Hira Textile Mills Ltd is committed to the highest criterions of unity, honestness, openness and professionalism in all of its activities whenever they are undertaken. We, the Management Team of HTML are endeavoring to better the quality of narration by continuously bettering its fabrication installations. We are committed to positioning the Company at the vertex of the industry by fulfilling our valued clients, file awaying superior returns for stockholders, by supplying congenial work environment where the employees feel portion of the organisation and be a good corporate citizen by carry throughing our societal duties. ( Hira Textile Mills Annual Report, 2011 )
Although the public presentation of the company is rather satisfactory during the twelvemonth but the future market state of affairs is altering to adversely due to diminish in the narration monetary values, and increase in rewards, markup rates and other input costs. The direction is taking the position of consolidation for the minute and taking advantage of new fabric policy 2009 by moderately heightening its direct and indirect exports by bettering productiveness and quality. Aggressive selling scheme has been the major factor in HTM consistent profitableness over the last old ages. In the visible radiation of the Company ‘s overall objectives the Board of Directors on a regular basis review the Company ‘s scheme concern programs and put public presentation marks consequently. ( Hira Textile Mills Annual Report, 2011 )
Businesss and Merchandises
Hira Terry Mills is a province of the art Terry merchandises fabricating works apparatus in Lahore, Pakistan. The works was set up in late 2006-early 2007 with new machinery comprising of chiefly European machinery from Germany ( Dornier Air Jet Looms, Theis Dyeing, Schumale uninterrupted Double-Needle Side Hemming, Spain ( Anglada Continuous Finishing line ) , Switzerland ( Benninger Weaving readying ) and Japan ( Kindai Continuous Side Hemming, Barudan Cross Hemming and Infinity Continuous Slitting ) . The Plant is a vertically incorporate Terry maker, which has the production capableness of fabrication, all in house, yarns to towels.
A The works has a big assortment of cottons in its spinning operations and is a certified manufacturer of Supima, Egyptian and Organic Cotton narrations. In add-on, it carries a assortment of other cottons such as Australian, Brazilian, California ( US ) and Turkish Cottons in medium basic and Pima and Egyptian in long staple fibres. This gives it a alone place in the market to serve better-best quality towels.
The scope of merchandises extends to:
Cotton Towels made from Supima, Pima, Giza and Pakistani cottons with possibility in Combed, Zero Twist, Soft Twist narrations.
Merchandises range to Bathrobes, Bath towels, Hand towels and Face towels.
Density in towel scopes from 400GSM to 1100GSM.
Hira Textile Mills is equipped with the most modern machinery in whirling, duplicating and yarn dyeing.
The whirling units comprises of 40,000 spindles.
The merchandise scope varies from coarse counts to ticket counts runing from 4/1cd to 80/1cm, bring forthing Ringing Spun every bit good as Compact spun narrations, Slub and Lycra narrations.
Draw frames with car levellers and conditioning machine from Xorella have besides been installed for farther betterments in the quality of narration in the of all time increasing international criterions of the universe market.
Organic ( Skal Certified )
Pima ( Supima Certified )
Beginning: Hira Textile Mills company web site ( hypertext transfer protocol: //www.hiramills.com.pk/ )
Purpose of the Study
At the start of this thesis study an explorative meeting was held with Hira Textile Mills ‘ ( HTM ) CEO, Mr. Nadeem Butt in order to research how the human resources section can be improved and whether there were any on-going HR related issues that the house was confronting. It was brought to attending that one of the most of import assets of the company was its employees and had it non been for them the company would non hold been successful in the past, particularly after the new Terry unit was installed. In order to guarantee its uninterrupted growing HTM wants to safeguard its most of import plus, its people. Mr. Nadeem Butt brought into visible radiation the issue of employee morale non being what it one time you used to be, one indicant he had was an increasing employee turnover rate. As the company grew and more people were inducted, it became harder and harder to keep the same degree of ardor, motive and trueness which was one time shared across all direction degrees, in the starting yearss of the company. Larger groups of companies like Nishat, Crescent, Sapphire, Nakhshbandi etc. have become more organized and commercial and hence attract good employees. But if HTM is to last among the giants, it is indispensable to develop and retain a pool of efficient human resources. With the senior direction approaching retirement, it has become of all time more of import to concentrate on retaining and beef uping its well trained in-between direction for sequence planning. I was asked to look into ( I ) Whether low employee morale even exists or is it merely the managers perceptual experience and ( two ) IF it does be, what is doing it and ( three ) how to cover with high employee turnover.
Therefore my research inquiry is:
“ Is the employee morale depression, IF so, what are the grounds behind low employee morale and high employee turnover rates at Hira Textile Mills? ”
What are the current fiscal and non-financial techniques being used by HTM.
Determine the several importance assigned by employees to these fiscal and non-financial inducements.
Determine how satisfied employees are with their several fiscal and non-financial wages.
What is the current degree of employee motive and trueness.
How attractive an employer HTM is in its employee ‘s eyes.
Determine the consequence of fiscal inducements versus non-financial inducements on employee trueness and motive.
Importance of fiscal inducements versus non-financial inducements at different organisational degrees ( lower direction, in-between direction and upper direction ) .
This survey was conducted utilizing a matter-of-fact attack, that is, assorted methods were used. The start of this research survey was explorative research, in which the job was discovered, defined and agreed upon through informal meetings with the CEO and the HR section ; the descriptive portion of the survey consisted of garnering informations to fundamentally find what is presently go oning, the position quo that is ; and the explanatory portion of this survey was the illations derived based on the analysis of the gathered informations.
A combination of qualitative and quantitative research was undertaken to roll up first-hand informations for this survey. Merely first manus informations will be collected for the intent of this research undertaking because no secondary informations beginnings exist as this is a house specific issue, but a thorough literature reappraisal was conducted to polish and enrich the research methodological analysis and to heighten the research worker ‘s apprehension of the research subject.
For qualitative research the undermentioned technique was used:
The chief ground for taking in-depth interviews was the consideration that since the participants belong to the same company, they will non portion their unfastened and honest positions with the group, had the focal point group treatment technique been used. Besides, in-depth interviews provide a opportunity to the research worker to examine deeper in to apparent on the surface issues in order to uncover the nucleus jobs. However, the most of import restriction of this technique is that the point of position received is of merely an person. It is best to utilize in-depth interviews to research the general job country or to travel profoundly into a job, e.g. specifying which variables to include in the quantitative phase of the survey and which 1s to exclude.
The tool used to carry on quantitative research was:
This study questionnaire was administered via electronic mail. This was done because ( a ) This method was more convenient, ( B ) respondents were all educated plenty to understand inquiries in the written signifier and ( degree Celsius ) since merely a selected figure of employees were to be questioned, on the topographic point in the flesh questionnaire filling would hold made the respondents cautious and brought prejudice in their sentiments. Other grounds for taking questionnaires as the informations aggregation instrument are ( Khan, 2007 ) :
The usage of questionnaire for aggregation of informations is comparatively inexpensive compared to other methods.
Questionnaire can easy be coded and analyzed. They were more conformable to statistical analysis.
They can be speedy to administrate, enabling feedback on many things to be gathered in a few proceedingss.
They can be used anonymously, leting scholars the opportunity at least of giving negative feedback without the embarrassment of giving it publically.
The opportunity of prejudice would be minimum because the respondent would liberate of any force per unit area of being observed through these tools.
However, questionnaire technique of informations assemblage besides has some disadvantages ( Khan, 2007 ) :
The Ticky Box syndrome: Peoples become conditioned to do instant responses to inquiries. Geting through the questionnaire rapidly becomes a virtuousness. Responses are made on a surface degree of believing instead than as a consequence of contemplation and critical thought.
The Performing Dogs syndrome: Many people make fulling in questionnaires tend to delight the research worker. They can normally state which responses will delight the people giving them the questionnaire and the people whose work is involved in the issues covered by the questionnaire. If they like the people, they are likely to notice favourably on things.
Lost Learning chances syndrome: Questionnaires are frequently used after the event instead than during it. This tends to minimise any existent acquisition results of the procedure of finishing questionnaires.
The ‘wysiwyg ‘ syndrome: ‘What you see is what you get ‘ . Questionnaires produce feedback on the peculiar issues covered but frequently non on other of import issues. There is a inclination to plan questionnaires which will give positive feedback.
Blue, Rosy and Purple, questionnaire: A major restriction of most questionnaires is that responses are colored by how people feel at the minute of make fulling them in. If the same questionnaire were used a few yearss subsequently, some responses may be wholly different. Yet the consequences are frequently statistically analyzed as though they reflected lasting reactions to inquiries and issues instead than fleeting, transeunt reactions.
This survey was executed in three parts:
Part I: Qualitative Research – In-depth interviews conducted with employees at assorted degrees of HTM and from different sections.
Part II: Quantitative Research – Using the qualitative research findings a questionnaire was developed to prove these findings. Once the field work completed and informations was tabulated in excel format, ready for use and extraction, it was analyzed to reply the research inquiry and accomplish the stated research aims.
Part III: Report Writing, Formatting and Referencing – This is the concluding phase of the research survey. In this phase all the tabulated informations, its research consequences and analysis are articulated into a standardised study format with proper citing to avoid plagiarism.
The relevancy of this thesis subject can be derived from the get downing lines of Rihova ‘s article ( 2009 ) which argues that
“ The basis of a company ‘s success is aA chiseled and enforced corporate scheme which the whole company lives ”
In order for a company to successfully make its strategic ends, its employees need to “ experience closely connected to the ( corporate ) scheme ‘s values and way and motivated to carry through the company ‘s designated ends ” . Two of import things have been mentioned here by the writer, foremost, holding a well defined corporate scheme is polar to any company ‘s success and secondly, unless there is a strong connexion between the employees and these ends, employees are non likely to be motivated. In other words, the employer needs to do corporate ends as unambiguous ( this will assist in giving “ way ” ) and relevant for the employees as possible, so that a strong connexion can be made, hence, giving manner to motive for employees. However, this entirely does non incite motive but instead it is the necessary status which needs to be fulfilled for other motive techniques and tools to work efficaciously. Therefore, doing the thesis ‘ research inquiry, ‘Which compensation technique reaps the highest degree of motive and trueness towards the organisation? ‘ a cardinal subject to be looked into.
Ivana Rihova farther states that:
“ To find the outlooks, the company ‘s strategic ends are broken down in item to the degree of ordinary employees.
Employees so seek motive to run into the designated ends in which the company is able to assist them by puting come-at-able conditions and steps. Hence, the public presentation of employees corresponds to how the work and wagess ( both fiscal and non-financial ) meet the employee ‘s demands. ”
“ Conditionss and steps ” here refer to the substructure, regulations & A ; ordinances and the criterion operating processs that define how work is done in a company and besides serve to enable the employees to transport out their occupations efficaciously. This is synonymous to the 7-S model ‘s “ hardware and package ” . The point that the writer intends to foreground here is that wagess should be based on employees demands ; otherwise it will non be able to actuate them.
At this occasion the writer challenges the conventional belief that ‘the higher the fiscal wagess, the higher the motive of an employee ‘ by saying that many studies and experiments have been conducted over the old ages which yield a different consequence. Although fiscal wagess are a hygiene factor and make lend towards motive, it does non intend that they are the most optimum motive accelerator. Fiscal wagess can merely actuate employees up to a certain point, after which non-financial wagess are more utile in making motive. This decision is besides validated by economic sciences ; the labour curve of a individual employee is a downward ‘U ‘ form curve with figure of labour hours on the X-axis and the corresponding wage on the Y-axis. This downward ‘U ‘ form of the curve depicts that up to a certain point an employee is willing to work more hours for more wage, but beyond the extremum of the downward ‘U ‘ curve the employee really prefers to work less hours for each increase in salary. It is particularly at this point that non-financial motive comes in ready to hand. Hence, there is a demand to plan a balanced compensation system which includes fiscal aswell as non-financial wagess.
“ Indeed, the HR map can be expected to put regulations, have knowledge and supply support, yet non-financial motive is the duty of direction, viz. senior direction and line direction. Management is truly incorrect to believe that except for direct assignment of undertakings to employees, which is ensured by the direction, the HR map can take attention of and be responsible for all other reactions of employees at work and associated with work. ”
The writer here talks about the wide-spread misconception among organisations today where directors assume that all types of wagess, may it be fiscal or non-financial, are the duty of the human resource section. In the writer ‘s sentiment it is merely the fiscal wagess which are the exclusive duty of the human resource section but the load of non-financial wagess should fall chiefly on direction ‘s shoulders more frequently than non.
HR Trends of Employee Motivation around the World
By and large, in America the growing of Employee Stock Ownership Plans over the past 25 old ages have played a polar function in the compensation agreements of employees, associating employees pay construction with companies overall public presentation, including wide based stock options, addition sharing, net income sharing etc. Over the old ages, research has shown that on norm, employee ownership houses are in a place to either lucifer or to transcend the public presentation of similar houses ; nevertheless with considerable scattering of consequences. An illustration can be of United Airlines where employee ownership failed to present its promise in certain fortunes while the outstanding success of companies such as SAIC high spots that ownership helps to accomplish long term growing specially in extremely competitory industries.
In order to cut down rule agent job, it is really of import to bind employee wage with the house public presentation and affect employees in decision-making procedure. In this manner non merely the employee ownership agreements will cut down any jobs accruing, but besides it would increase the public presentation of the company. One of the most common expostulations to employee ownership inducement programs is the free rider job. It arises due to the weak connexion between an person ‘s public presentation and fiscal wagess, as the work squad gets larger. As there seems no possible solution to the free rider job, many research workers agree with Weitzman and Kruse ;
“ something more may be needed-something kindred to developing a corporate civilization that emphasizes company spirit, promotes group cooperation, encourages societal enforcement mechanisms, and so forth ” ( 1990: 100 ) .
The cardinal improving factors through employee ownership plans are the inducements, engagement and work topographic point environment. The inducements given to employees must be sufficient to actuate them, engagement must be meaningful for employees to do critical determinations and environment provided should look closely at the free rider job. Consistent with this, researches that have compared workers attitude under employee ownership give a assorted image. Few of the research done have found out higher committedness, motive and satisfaction among employee-owners, while harmonizing to other researches, there no important difference before and after an employee buyout. Some research workers suggest that organisation designation and committedness are higher under employee ownership. However, consequences vary significantly from favourable to impersonal on occupation motive, satisfaction, employee absenteeism, turnover, grudges, hurts and tardiness.
A successful organisation is the 1 that is able to get by with the altering demands of its employees and do them experience an of import portion of the organisation. It is the duty of the top direction to hold strong trust relationship with the lower degree employees so that the employee plants at their maximal capablenesss. Organizations expect the workers to follow the regulations and ordinances of the house and work consequently. They need to maintain in head the criterions set for them ; the employee expects regard, good wage construction, safe working environment, just intervention and unafraid calling along with engagement in determination devising procedure. The outlooks of the employees and organisational caputs vary from one house to another. For the houses to turn to such outlooks, it is really of import to hold a thorough apprehension of employee motive.
Harmonizing to a research done at Piketin Ressearch and Extension Center and Enterprise Center, there are certain factors impacting the motive degree of any employee. These factors include interesting work, good wage construction, grasp of work done, occupation security, nice working conditions, publicities and growing chances, tactful subject, being an of import portion of the organisation, personal truenesss to workers, and sympathetic aid with personal jobs.
The article farther relates these factors with Maslow ‘s need-hierarchy. The top most graded incentive is interesting work, which is besides a ego -actualizing factor. Second incentive is a good wage construction that is a physiological factor. Third is the grasp factor that can besides been seen as self-esteem. Fourth incentive is the occupation security that is the safety factor. Therefore harmonizing to Maslow, out of all, the most of import factors that must be satisfied first are interesting work, physiological, safety, societal and esteem factors.
Harmonizing to another survey conducted by Kovach ( 1987 ) , the order of motivational factors for the industrial employees was interesting work, grasp of the work done and experiencing an of import portion of the organisation. On the other manus, another survey conducted by Harpaz ( 1990 ) ranked the motivational factors as interesting work on figure one, nice wage construction as figure two and occupation security as the 3rd of import factor to actuate the employees of the administration. Pay construction was non ranked as an of import motivational factor by Kovach, nevertheless, it was ranked 2nd by Harpaz. Similarly grasp of work done was non ranked as an of import motivational factor by Harpaz, nevertheless, it was tanked 2nd by Kovach. This proves that the motive of employees differ amongst assorted types of work done in legion organisations. However, interesting work is considered as the most of import factor for employee motive in about any sort of work topographic point.
Harmonizing to Butkus and Green ( 1999 ) , motive is derived from the word ‘motivate, ‘ which means to carry for fulfilling a demand. Harmonizing to Baron ;
“ Motivation is a set of procedure concerned with a child of force that energizes behaviour and directs it towards accomplishing some specific ends. ”
Many authors have suggested motive as the end directed behavior. Harmonizing to Kreitner and Kinicki ( 2001 ) ,
“ Those psychological procedures that cause the stimulation, continuity of voluntary actions that are end directed ” .
In other words, a motivated person has the consciousness of accomplishing a specific end in some specific manner and so he puts his attempt in order to accomplish such end. Therefore, the function of the directors is to steer the lower degree employees about organisational dockets of how to accomplish its aims.
It is really of import to distinguish between motion and motive. Motion does the work for compensation and wage whereas motive is the entire engagement of an person in the work given out to him. Motion can do an employee compel to make the work whereas motive is self realized jubilant of transporting out different undertaking. The research worker emphasized on motive and non motion as motive is the requirement for success because the individual is happy and satisfied with the work irrespective of the compensation. He carries out the undertaking voluntarily without any greed. Motivation is the ground for the achievement of single in any facet of work. Once the directors understand and agree that employees are of course motivated, they need to supply a nice environment for the employees to heighten their motive.
Importance of Motivation
Peoples motivate themselves to fulfill their ain personal ends, and hence they invest and give their best in accomplishing the organisational aims in order to run into with their personal ends besides. It would intend that organisational ends are linked to personal ends every bit good.
The director ‘s occupation is to acquire work done from the employees under him but it is merely possible if the workers are self motivated instead than directed. The director ‘s engagement is non that of import in the motive of employees, in fact the workers should actuate themselves to work hard.
Irrespective of being skilled, unskilled or professional work force, the major job organisations face is the deficiency of motive by the employees. It is besides one of the major issues faced by commercial Bankss. In this competitory universe, it is a challenge for the disposal to maintain the employees motivated so that they offer efficient services to the clients. The employee ‘s enthusiastic, energetic behaviour and their motive towards their undertaking play a polar function in successes of any organisation.
One of the maps of human resource director is to guarantee employee ‘s workplace motive. They should help the director in maintaining the workers satisfied with their occupations. The service director should be able to develop motivated workers and promote their work morale. If the employees are unsated and unhappy about their workplace, their public presentation is normally hapless.
Degrees of Employee Motivation
By and large, there are three degrees of employee ‘s motives.
Direction of an employees ‘ behaviour ; it is the behaviour that a individual choose to execute.
Degree of attempt ; it relates to how much attempt can be put by the individual to act in a certain manner
Degree of continuity ; it related to individual ‘s willingness to act despite obstructions faced.
Every employee has a different background in footings of instruction, experiences and household category, nevertheless the primary involvement of all is to fulfill their personal demand and desires. They want to fulfill their basic necessities of life, linked to survival and security along with a desire to bring forth positive feelings about oneself and to be self fulfilled. Most employees want
just company policies in affairs impacting them ;
favourable occupation position
direction they can be trusted
good working relationships with senior directors and colleagues ;
nice wages and good working environment ;
equal occupation security
The article measures the consequence of Human Resource Strategies on occupation satisfaction, specifically in Pakistan. It is mentioned in the article wage, publicity and preparation has positive consequence on occupation satisfaction, nevertheless in instance of Pakistan, the employees give more importance to pay and publicity instead than developing. Significant differences were found between work forces and adult females occupation satisfaction degree. The service based industry is traveling through legion alterations for the last twosome of old ages. Due to these alterations, the minutess are increasing along with the scope of services provided. As a consequence, different sectors such as educational institutes, telecommunication houses, Bankss are sing high turnover.
Harmonizing to Maslow hierarchy of demands, people are motivated by unsated demands. The lower degree demands need to be fulfilled before traveling on to higher degree demands. In general, there are six types of demands ; physiological, survival, safety, love, respect and self-actualization. Peoples can move unselfishly merely if the first five demands are fulfilled. Maslow called theses demands as lack demands. Equally long as people are motivated to fulfill their desire for demands, they will be traveling higher towards self-actualization. Satisfying our demands is a healthy behaviour whereas forestalling satisfaction makes us act diabolic. Harmonizing to different researches, people have jobs in cognizing that precisely they want from a occupation. This is the ground why the supervisors ignore what the employee wants from the occupation, and in fact enforce on employee what they themselves want from the occupation. As the individual grows through any organisation, his employer provides chances for him to travel higher up the Maslow ‘s pyramid.
Frederick ( 1959 ) modified Maslow ‘s demand Hierarchy theory and came up with the two factor theory ; Hygiene Theory. Harmonizing to Frederick, there are some satisfiers and dissatisfies for employee in any workplace. These are the intrinsic and extrinsic factors. Intrinsic factors are associated with occupation satisfaction whereas extrinsic factors are related to occupation dissatisfaction. Frederick wanted to cognize what do people want from their occupations. He asked people to depict state of affairss where they felt exceptionally good or bad. From the consequences he concluded that the antonym of satisfaction is non dissatisfaction. This means that taking the dissatisfying features from any occupation experience does n’t do the occupation fulfilling. Existent of certain factor in a house is natural and presence of the same does n’t take to motive. However, their non being possibly leads to de-motivation. Similarly there are few factors, the absence of which does n’t do dissatisfaction, but their being has a motivational impact on the employees of the organisation.
Harmonizing to Skinner ( 1953 ) , employees can be motivated by decently planing the environment. Alternatively of taking into consideration the internal factors like feelings, attitudes, feelings etc, and people are directed by what happens in their external environment. This is besides known as the support theory. The work topographic point environment should be suited and nice plenty to actuate the employees of the organisation.
Victor Vroom ( 1964 ) presented anticipation theory which is widely accepted. The theory says that an employee can be motivated plenty to execute better when they believe that the better public presentation gets them a good public presentation assessment and that in bend leads to realisation of personal end in form of some wages. Therefore an employee is:
Motivation = Valence x Expectancy
The focal point of this theory is on three cardinal variables:
Attempts and public presentation relationship ;
Performance and wages relationship ;
Wagess and personal end relationship.
The Adams ‘ Equity ( 1965 ) Theory theoretical account incorporates non merely single ego but besides the influence and comparing of other people ‘s state of affairss in organizing a comparative position and consciousness of equity. When employees feel that they are treated reasonably, they are more likely to be motivated. When employees are treated below the belt, they are extremely prone to demotivation. The manner people measure this sense of equity is the bosom of Equity Theory. Therefore, equity is non dependent upon by how much the wagess exceed the attempt, it is dependent wholly on the equity of the game. It is the comparing that one makes between his wages and investing ratio with the ratio enjoyed or suffered by other employees.
Harmonizing to the article, the eight top most motivational factors include safe work topographic point, just salary, publicity and growing chances in the organisation, disputing work, nice working status, sympathetic aid by people, grasp of work done and personal trueness to workers.
Comparing these motivational factors to Maslow need hierarchy it can be seen that the top most motivational factor, safe work topographic point, is one of the safety needs whereas just wage is related to physiological factors. Traveling on publicity and growing chances are esteem factors and disputing work is associated with self-actualization.
If we compare Vrooms anticipation theoretical account with highest ranked incentive life in a safe country, it is believed that the degree of attempt a individual puts