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University of Liberal Arts Bangladesh A new vision in higher education

Academic Year 2014

A Report

On

Empirical Analysis of Herzberg’s Two Factor Theory of Jamuna (Jamuna Group of Industries)

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PREPARED FOR

Muhammad Hasibul Hasan

Senior Lecturer

ULAB School of Business

PREPARED BY

Asif Mahmud Onik ID : 141051002

Umma Tamanna Bithi Athter Shakil Rayhan Nurul Alam

ID : 141051074 ID : 133051065 ID : 133051043 ID : 133051019

[11 April 2014]

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Abstract

Our report presents a summary of the Herzberg Two-Factor Theory of job satisfaction. The purpose of the report is to develop the Herzberg theory and its possible application to an organization as a means of increasing worker productivity. Frederick Herbages developed a “two-factor” theory for motivation base on Hygiene (dissatisfies) & Intrinsic (satisfiers) factors. According to him, Hygiene (dissatisfies) factors basic human needs at work do not motivate, but failure to meet them causes dissatisfaction on the other site Intrinsic (satisfiers) factors are internal rewards that a person feels when performing a job, so there is a direct and often immediate connection between work and rewards. An employee in this situation is self motivated. This study was undertaken to determine how Intrinsic (satisfiers) & Hygiene (dissatisfies) factors can become the foundation for increase the motivation of the marking department employees in the Jamuna group of Industries. Both secondary and primary sources were used to gather information for the study. A sample of 48 marking executives was determined using a percentage formula. Hygiene (dissatisfies) (dissatisfaction) factor of marketing department in Jamuna group like salary, personal life, security, working condition all are fulfill and satisfaction level is high of marketing department employees. But on the other site employees Intrinsic (satisfaction) factor of marketing department like responsibility, experiences and performance they are not satisfied and satisfaction level are low down. The results show that motivator factors were the dominant motivators in Jamuna group marketing department employee. It was found that the respondents received job satisfaction and job dissatisfaction from both the Intrinsic and the Hygiene (dissatisfies) factors. This evidence is sufficient to conclude that Intrinsic (satisfiers) factors are more effective than Hygiene (dissatisfies) in motivating staff in Jamuna group of marketing department.

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Table of Contents: Chapter Topic Page No

Abstract iii

List of figures iv

1.1 General Information 1

1.1.1 Company Philosophy 1

2.1 Introduction 1

2.2 Scope, Objectives and Question of the report 2

3.1 Methodology 2

3.2 Data 3

3.2.1 Limitations of the study 3

3.3 Data Collection 4

4.1 Herzberg’s two factor Theory Intrinsic (satisfiers) and Hygiene (dissatisfies) Theory

5

5.1 Data Presentation and Analysis of marketing department in the Jamuna group

7

5.1.1 Analysis of satisfied and dissatisfied level of marketing department in the Jamuna group

9

6.1 Finding 10

7.1 Conclusions and Recommendations 11

Appendix Reference 12

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1.1 General Information:

Jamuna Group is one of the largest Bangladeshi industrial conglomerates. This company includes several section such as Business Enterprise, Jugantor (a national daily newspaper), Jamuna Future Park (largest shopping mall in South Asia), Jamuna Television, Crown Beverage, Jamuna Kniting and Dyeing Ltd, Jamuna Denims Ltd, Jamuna Spinning Mills Ltd., Shameem Spinning Mills Ltd, Shameem Composite Mills Ltd, Shameem Rotor Spinning Ltd., Jamuna City, New Uttara Model Town, Pegasus Leathers Ltd, Jamuna Distilery Ltd, Jamuna Welding Electrode Ltd.Textiles, Chemicals, Leather, Consumer products, Media, Advertisement etc. The nucleus of Jamuna Group has formed in 1974. Since its inception, the Group has accelerated its journey with the commitment to the business community by maintaining ethical phase and norm to build up industrial backbone for the socio economic development of the country and the globe.

1.2 Company Philosophy: The Motto of Jamuna Group of Industries is to achieve the ultimate satisfaction of the company about 1,

70,000 employee’s in Internal and External and ensure business ethics to the customer’s full satisfaction through world class technologies, quality and services to meet the global needs.

2.1 Introduction: Now a day, job Intrinsic (satisfaction) and Hygiene (dissatisfaction) of employees determine the organization success or failure. This paper presents an overview of the Herzberg Two Factor Theory of job satisfaction and dissatisfaction, the analysis of this report focused on marketing department employee’s activity in Jamuna Group of Industries Head Quarters. This group has formed in 1974. The Industries head quarter is Jamuna Future Park. The purpose of this study is to examine the theory as one which area gives attention to on increasing worker productivity through job enrichment. Our group thinking, Herzberg's two-factor theory is probably the most widely known and accepted approach relating directly to job satisfaction. Because most of the time many company use several strategies, which are aimed to improving the design of work in one organizations. Each of these strategies has emerged from different theoretical or philosophical base. As a result it leads to different actions with different goals and unfortunately most of the times all are subject to distortion and misuse. So the aim of this report, how to use Herzberg’s two-factor theory and analysis that is this really works or not in Bangladesh culture base organization like Jamuna Group of Industries employees.

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2.2 Scope, Objectives, and Question of the report:

The objective of the report is to develop our knowledge about how to use Herzberg’s two-factor

theory method in marketing department in Jamuna Industries. The main objective of the report is

to gather knowledge and information how an organization performs their task and what are the

levels of employees satisfiers or dissatisfies of Jamuna group marketing department.

Objective:

1. To Judge the level satisfaction among the employees of marketing department in Jamuna

group.

2. To identify the factors there are affecting the satisfaction level marketing department of

Jamuna group.

3. Identify the major factor behind the satisfaction level marketing department of Jamuna.

4. Try to classify how their company manager or other situation harassed marketing

employees.

Questions of the study:

Which motivation factors are more valuable by employees of marketing division?

Which hygiene factors are more valuable by employees of marketing division of Jamuna

group?

3.1 Methodology

Methodology is the most important component in any study since it explains the procedure and

methods through which a particular study carried out. The population in this study was all

employees of Jamuna group of Industries in Bangladesh. The sample designed from the

marketing department, which was representative of the Jamuna Group of Industries, terms of its

organizational structure and employees Hygiene (dissatisfaction) or Intrinsic (satisfiers) factor.

This paper includes Data / Information Collection, Study Population, Study Area, data collection,

Sample Size, Allocation of sample etc.

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3.2 Data

Data are the raw materials for any study. Relevant data for the study were collect from both

secondary and primary sources. Secondary data were collect from Book and Internet.

Two types of survey were collected in the study-quantitative and qualitative.

1. Quantitative data were gathered from observation of employee’s working activities’ like

recognition; work itself, responsibility, personal and working relationships, working

conditions etc. from marketing department in Jamuna group.

2. Qualitative data were collect from verbal interview and my personal (Asif Mahmud

Onik) job experience (13 months) in Jamuna group.

3.2.1 Limitations of the study

During the time of preparing, this report I have been faced some problem. These are follows:

The period fixed for preparing the report was hard to meet. As a result, sufficient

concentration cannot given which was needed for much better study because when

our group reaches more time, so try to compare Herzberg’s two factors to other

theory like Maslow’s Hierarchy or McGregor X and Y, as a result to know about

company over all management system and clearly know about marketing department

employees require.

To prepare this report our group has faced many problems such as Maintain

confidentiality in marketing department employees, Unavailability of related books or

document and main thing how to use this theory in Jamuna group marketing

department etc. However, our group member’s collaboration and different thinking

try to fulfill this report.

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3.3 Data Collection

Study Population: As the 2013 there are about one 1, 70,000 employees work in Jamuna Group.

Out of them about 78% are men and 22% are woman employee. However, all Jamuna employees

are not satisfied in his/her positions. Most of the workers satisfaction level differs in different

perception and demand.

Sample Size: It was very difficult to collect data, because the Jamuna Group of Industries is very

large group in Bangladesh. Nevertheless, the data is very essential to prepare the report. For the

time limitation, they could not be able to supply my topic related data. First we identified some

area in Bangladesh (e.g. Dhaka, Gazipur, Chittagong, Others/Subtotal Dhaka) and randomly

selected Jamuna group head office (Jamuna Future Park) in Dhaka area and this office is divided

into 5 (five) division like Department controller, Marketing department, Management

department, Accounting department and Financial department. Therefore, we select Marketing

department because this is the most powerful department and heart of this group. Based on these

we choose marketing department as our sample size.

According to the term of References, the employee’s survey should cover at least total average of

20% active worker who is working in Jamuna group Dhaka zone. There are almost 800 worker

works in Jamuna group head office and 240 people worked in marketing. Hence the sample size

is 240* 20% = 48.

Our group focuses 48 marketing employees because to contact with whole workers would be

time consuming. A sample reporter or researcher using the regular employees and field

interviews of professional researcher just focus one or two days finish work clearly and deeply.

By using the same employee’s interviews and working Seven days, a week it will take many

days to contact all the voting workers that is why we chose 20% active employee’s on marketing

department in Jamuna head office.

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4.1 Herzberg’s two factor Theory Intrinsic (satisfiers) and Hygiene (dissatisfies) Theory: Herzberg’s Intrinsic/hygiene theory assumes that one group of factors, Intrinsic (satisfiers) accounts for high levels of job satisfaction and motivation. However, hygiene factors can cause dissatisfaction with work.

Source: Class lecture Perception and Emotion (Management and Organization) Data Presentation and Analysis: Scale: Definitely Disagree (DD) Generally Disagree (GD) Somewhat Disagree (SA) Generally Agree (GA) Definitely Agree (DA)

(Table: 1) Hygiene (dissatisfies) Factors as Foundations for Heightening/improve Marketing department, Motivation in the Jamuna Group of Industries. “Sample size =48 employees of marketing department”.

Questions DD (%)

GD (%)

SA (%)

GA (%)

DA (%)

Salary and benefits, basic income, fringe benefits, bonuses, holidays, company cars, and similar items can heighten the motivation of the marketing department in Jamuna group.

0

0

23 average

25 average

Working conditions, such as working hours, workplace layout, facilities, and equipment’s provided for the job can heighten the motivation of the marketing department in Jamuna group.

0

0

34 average

14 average

Company policy, which is the rules and regulations formal and informal that manage employers and employees in the Jamuna, can improve the motivation of the marketing department.

0

0

4 average

38 average

6 average

Serial Number

Hygiene (dissatisfies) Serial Number

Intrinsic (satisfiers)

1 Salary good 1 Responsibility 2 Personal life 2 Achievement 3 Security of job 3 Performance 4 Company policy 4 Experience 5 Working condition 5 Work itself 6 Technical skill 6 Opportunity for advancement 7 Interpersonal relations 7 Personal Recognitions

Source: Jamuna group “company policy”& assumption of employee’s satisfaction percentages

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The determination of hygiene (dissatisfies) factors as foundations for improving the marketing department motivation in Jamuna Group of Industry; with the relevant of this factor, we made various questions for respondent employees. As indicated by 23 & 25 employee’s respondents respectively on generally agreed and definitely agreed as well as the mean response average score of 55%, the sampled respondents definitely agree that salary and benefits, basic income, fringe benefits, bonuses, holidays, company cars, and similar items can heighten the motivation of the marketing department in the Jamuna group head office in Dhaka. With 34 employees’ respondents generally agreeing, 14 employee’s respondents definitely agreeing, and a mean response average value of 37%, the respondents generally agree that working conditions, such as working hours, workplace layout, facilities, and equipment’s provided for the job can heighten the motivation of the marketing department in the Jamuna head office. From the responses of four employee’s we got somewhat agreed, 38 employee’s responses on generally agreed and six responses on definitely agreed. Moreover, in the mean response average of 32%, the sample study respondents generally agree the company policy, which is the rules and regulations formally and informally which manage employers and employees in the Jamuna group. In addition, this can improve the motivation of the marketing department in the Jamuna group of Industries.

(Table: 2)Intrinsic (satisfiers) Factors as Foundations for Heightening/improve Marketing department, Motivation in the Jamuna Group of Industries. “Sample size = 48 employee’s of marketing department”.

Questions DD (%)

GD (%)

SA (%)

GA (%)

DA (%)

Responsibility, Performance, work itself can heighten the motivation of the marketing department in the Jamuna group.

13 average

15 average

20 average

0 0

Achievement, Experience, Opportunity for advancement provided for the job can heighten the motivation of marketing in the Jamuna group.

22 average

26 average

0

0 0

Personal recognition can heighten the motivation of the marketing department.

2 average

4 average

42 average

0 0

Source: Jamuna group “company policy”& assumption of employee’s dissatisfaction percentages

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The determination of Intrinsic (satisfiers) factors as foundations for improving the marketing department motivation in the Jamuna Group of Industry with the relevant of this factor, we made various questions for respondent employees. As indicated by 15 employee’s respondents, and 13 employee’s respondents who generally disagree and definitely disagree and 20 employee’s respondents somewhat agree mean response average score of 25%, the sampled respondents definitely disagree. With 26 employee’s respondents generally disagree, 22 employee’s respondents definitely disagree, and a mean response average value of 57%, the respondents generally disagree. From the responses of 42 employee’s respondents who somewhat agreed, 3 respondents who generally disagreed and 2 employee’s respondents who definitely disagreed and the mean response average of 32%, the sampled study respondents generally disagree.

5.1 Data Presentation and Analysis of marketing department in the Jamuna group:

When the samples for the survey were select, using some stages stratified sampling scheme (proportional allocation). First, our group follows analysis scale like Definitely Disagree (DD), Generally Disagree (GD), Somewhat Disagree (SA), Generally Agree (GA) and Definitely Agree (DA). In drawing support for these findings, Fredrick Herzberg’s two-factor theory distinguished between the two broad categories of factors that can affect marketing department performance on their job. The first category, as indicated in this study, the hygiene factors are the characteristics of the Salary and benefits, basic income, fringe benefits, bonuses, holidays, company cars, and similar items which are shown in table 1, we saw average 55% people are definitely agree for their job in few facilities. The findings suggest that these factors can make the marketing department unhappy if they poorly managed by the Jamuna group managements. However, if they are well managed, and viewed as positive by the marketing department, then the marketing department will not be dissatisfy. However, no matter how good these factors can be, they will only serve the foundation for heightening the marketing department motivation in the Jamuna group. These findings therefore suggest that the key to the true job satisfaction and motivation for the marketing department to perform lies in the second category of the dual factor theory: the motivators. The motivators design the job itself, that is, what the marketing departments do at work. Motivators are the nature of the marketing department work itself, the actual job responsibilities, opportunity available in the Jamuna group for the personal growth and recognition, and the feelings of achievements the marketing job provides. When these factors are

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present, marketing department job in the Jamuan group of industry are presume to be fall both satisfying and motivating for the marketing department is high.

Second in drawing support for these findings, Fredrick Herzberg’s two factor theories distinguished between the two broad categories of factors that can affect marketing department performance on their Intrinsic (satisfiers) activities. The first category, as indicated in this study, the Intrinsic factors are the characteristics of the Responsibility, Performance, work itself as well as mean employees response average score of 25% respondents definitely disagree. In Achievement, Experience, Opportunity for advancement provided for the job marketing department employee’s mean response average value of 57%, the respondents generally disagree. Personal recognition means when the employee receives the acknowledgement they deserves the job well done, the satisfaction will increase but our report survey saw that marketing department employee’s work is overlooked or criticized. It will have the opposite effect or decrease productivity and marketing department employee’s response average of 32%, the sample study response generally disagree or personal recognition prospective they are not satisfied, which are shown in table 2. The findings suggest that (table 2) three factors make the marketing department unhappy because some area they are not fulfilling their need and satisfied level low. Some areas in marketing departments’ employees are strongly dissatisfied; about 57% people like achievement, experience, and opportunity for advancement, and gradually it will increase. However, if they are well managed, and viewed as positive by the marketing department, then the marketing department will not be dissatisfy. When these factors are present, marketing department job in the Jamuan group of industry are presume to be both satisfying and motivating for the employees of marketing department is better than the other department. However, no matter how good these other steps like salary, security of job, technical skill can be providing.

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5.1.1 Analysis of satisfied and dissatisfied level of marketing department in the Jamuna group: Surprisingly when our group collects Hygiene and Intrinsic factors this time we follow not every employees affect same factor but person-to-person variable different. The following is a glance of each of the motivation dissatisfies and satisfiers’ factor person to person affect different.

Variable Frequency Satisfied Dissatisfied

Sex:

Male

Female

Total:

33

15

48 employees

10

12

23

3

Education Qualification:

National Diploma

BA Hon’s

BSC

Masters/MBA

Total:

10

12

8

18

48 employees

9

4

5

6

1

8

3

12

Working Experiences:

1-5 Years

6-9 Years

Above 10 Years

Total:

30

12

6

48 employees

11

2

6

19

10

0

When we have seen marketing department employees average respond, that time Hygiene (dissatisfaction) factor like salary, personal life, security, working condition all are fulfill and satisfaction level is high of marketing department employees. Nevertheless, when we talk about employees Intrinsic (satisfaction) like responsibility, experiences, and performance they are not satisfied. Because most of the employees say, few people are not done the work perfectly, performance and experience not enough when compare to the other employees but that inexperienced employees are promoted and quickly grow his/her position this situation other marketing employees satisfaction level are low down.

(Table: 3) Respondents’ Information

Source: Field survey of marketing department in Jamuna group

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A number of marketing employees say degree of freedom an employee has to make their own decision and implement their own ideas. If they took their own decision on that responsibility then they will work with more excitement on the project and will be more satisfied with the result but that can’t be possible most of the time in marketing department employees. Because some time other department employees involved in their task as a result both participation decision making faces many problems and cannot do the task flawlessly.

When our group member use this Herzberg’s two factor theory in Jamuna group of marketing department employee this time we follow most of the time employee are not satisfied and also motivation level low specifically Intrinsic (satisfiers) area. However, in drawing support for these finding, we try take the attention of which employee are dissatisfied in marketing department. So our group divide marketing department some division like Sex, Education quality and also working experiences. Therefore, this moment we will be surprised because Jamuna group marketing department female employees are more satisfied than the male employee. Survey should cover 48 active employees’ and total 15 female employees respond as a result 12 female employees satisfaction level is high and 3 female employees are dissatisfied. However, opposite respond of male employees, total responds 33 people, 10 are satisfied and 23 people are dissatisfied.

Education qualification prospective diploma qualifications respond 10 employees and just 1 people are dissatisfied. BA Hon’s, Bsc, Masters Education qualification Employees according dissatisfied level 8, 3, and 12.

Working experiences prospective above 10 years experienced employee are more satisfied than the other employee’s experiences basis and 6 to 9 years 12 people respond as a result two employees are satisfied and 10 are not.

6.1 Finding:

The result of this study indicates that Herzberg’s two-factor theory may be questionable because some of the elements in this theory is not using properly. Our Finding indicated that most of the employees in marketing department demand or Hygiene (dissatisfaction) factor are fulfill but Intrinsic (satisfiers) area most of the employees are not satisfied. When we input data and show employees respondents information or variable in table 3, this time we follow only Herzberg’s two factor theory Hygiene (dissatisfaction)and Intrinsic (satisfiers) are not enough and clearly judges for the marketing department employees motivation or performance level. When this analysis used in marketing employees in Jamuna group this time we also want perfect information and variable so research report (our group) find more information like observe on employees sex, education quality and working experiences. As a result, we clearly know about which employees are more satisfied or dissatisfied. Moreover, they are motivated or not.

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7.1 Conclusions and Recommendations:

The marketing job in the Jamuna group of industries consists of a large variety of complex and diverse tasks. Because of this, it is important that the marketing department efforts be in a direction consistent with the company strategic plan. Therefore, the direction of the marketing department effort is as important as the intensity and persistence of that effort. A group of company (Jamuna group) management concerned with motivating the marketing department finds that the complex task is getting them to expand effort on activities consistent with the strategic planning of the company. Many marketing department employees do not need external stimulation to work hard and long; their internal needs motivate them to do so. However, every marketing employee must be externally motivated to perform actions that support the strategic objectives of the company. Finding an effective combination of motivators may be easier if a Jamuna group management understands some of the behavioral factors that affect the marketing force motivation. Three conditions must exist before an unfulfilled need leads to enhanced marketing employee’s performance in the Jamuna group of industry. First, marketing department employees must feel that the rewards are desirable that is, they will satisfy some needs. Second, they must believe that gaining these rewards based on their performance, and they must understand exactly what performance is required to get the rewards. Thirdly, the marketing employees must also believe that the performance goals upon which the rewards are based on their attainability. In other words, the marketing department employees must feel that if they try (expand effort), they can achieve the targets that has been set for them. Also change or set the company management policy in department prospective.

Recommended factors to improve the marketing employee’s motivation in the Jamuna group of Industries are as given below:

I. Safe and healthy environment for marketing department employees in Jamuna group of Industries.

II. Opportunity that develops human capacities for marketing department employee in Jamuna group of Industries.

III. A chance for personal growth and security for marketing employee in the Jamuna group of Industries.

IV. Socially responsible company actions for marketing department employee in the Jamuna group of Industries.

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Reference:

Book:

Organizational Behavior “human behavior at work” John W. Newstrom and Keith Davis -11th

……………………..edition. (108-110).

Jamuna group Annual Report (2013).

Class Lecture (Chapter) Motivation at work.

Internet:

Herzberg’s two-factor model of satisfactions (U.S Department of commerce, National ……………Information service –AD-A033 814).

Rain, J. S., Lane, I. M., and Steiner, D. D. (1991). A current look at the job satisfaction/life ……………satisfaction relationship: review and future considerations. Human Relations, 44, ……………287- 307. Ruthankoon, R., and Ogunlana, S.O. (2003). Testing Herzberg’s Two Factor Theory in the Thai ……………Construction Industry. Engineering, Construction and Architectural Management. ………….. 10(5), 333-342. Stello, C. M. (2013). Herzberg’s Two-Factor Theory of Job Satisfaction: An Integrative …………..Literature Review.

Teck-Hong, T. and Waheed, A. (2011).Herzberg's Motivation-Hygiene Theory and Job ………….Satisfaction. In The Malaysian Retail Sector: The Mediating Effect of Love of ………….Money, Asian Academy of Management Journal, 16(1) 73-94.

Dunnette,M. D., Campbell, J. P., and Hakel, M. D. (1967). Factors contributing to job ………….satisfaction and job dissatisfaction in six occupational groups. Organizational ………….Behavior and Human Performance, 2, 143-174. Alderfer, C.P (1972) Existence Relatedness and Growth: Human Needs in Organization Setting, ……….…New York: The free press. King, N. (1970) “Clarification and Evaluation of the Two-Factor Theory of Job Satisfaction” Herzberg, F. (1966) Work and the Nature of Man, Cleveland: The World Publishing Company.

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Thank You 09 April 2014

Sample

Only use for my group member’s purpose

Asif Mahmud Onik

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