Motivation at work (research study)

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UNDERSTANDING MOTIVATION. SUGGESTIONS FOR ENHANCING EMPLOYEE MOTIVATION: CASE STUDY OF NECSOM LTD.

ANNA IKONEN

This report presents the significance of employees for an organization’s success and the importance of motivating them. The case study of Necsom explores the current employee motivation situation

in the company and describes the importance of certain factors in motivating employees. After description of the results of the research project, some conclusion are made how to enhance

employee motivation systems in companies in general, and at Necsom, in particular.

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Table of contents

1 INTRODUCTION ............................................................................................................ 0

2 SUCCESS FACTORS IN A MODERN COMPANY ................................................... 2

3 THE HUMAN FACTOR IN THE COMPANY GROWTH ........................................ 3 3.1 THE GLOBAL HUMAN RESOURCE MANAGEMENT ............................................................ 3 3.2 EMPLOYEES SIGNIFICANCE AND IMPORTANCE OF MOTIVATING THEM ........................... 5

4 WORK MOTIVATION IN THE ORGANIZATIONAL CONTEXT ........................ 9 4.1 THEORIES ON MOTIVATION ........................................................................................... 9

4.1.1 Abraham Maslow ................................................................................................. 9 4.1.2 Frederick Herzberg ............................................................................................ 11 4.1.3 C.P. Alderfer ...................................................................................................... 12 4.1.4 David McClelland .............................................................................................. 12

4.2 A SELF CONCEPT-BASED MODEL OF WORK MOTIVATION ............................................. 16 4.3 METHODS AND WAYS OF MOTIVATING EMPLOYEES .................................................... 19 4.4 CROSS-CULTURAL PERSPECTIVES ON MOTIVATION ..................................................... 23

5 WORK SATISFACTION AND MOTIVATION AND ITS SIGNIFICANCE AS A RESULT OF RESEARCH IN NECSOM COMPANY .................................................. 27

5.1 INTRODUCTION TO THE COMPANY, NECSOM LTD. ...................................................... 27 5.2 SURVEY METHODOLOGY ............................................................................................. 28 5.3 SURVEY RESULTS ....................................................................................................... 29

5.3.1 Demographic data ............................................................................................... 29 5.3.2 Work satisfaction ................................................................................................. 30 5.3.3 Work motivation .................................................................................................. 41

5.4 BRIEF SUMMARY OF RESULTS ...................................................................................... 48

6 DISCUSSION ON THE RESEARCH FINDINGS ..................................................... 49

7 CONCLUSION ............................................................................................................... 53

LITERATURE ................................................................................................................... 55 APPENDIX: SURVEY QUESTIONNAIRE ... ERROR! BOOKMARK NOT DEFINED.

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Table of figures

Figure 1. Maslow’s Hierarchy of Needs ................................................................................ 9 Figure 2. Descriptive statistics of work satisfaction ............................................................ 31 Figure 3. Satisfaction profile at Necsom .............................................................................. 32 Figure 4. Different opinions concerning work satisfaction .................................................. 38 Figure 5. Correlation (carrier prospects / position within the company) ............................. 38 Figure 6. Correlation (feeling stressed at work / position within the company) .................. 39 Figure 7. Correlation (carrier prospects / gender of the employee) ..................................... 39 Figure 8. How satisfaction with pay depends on the position with the company ................ 40 Figure 9. How satisfaction with Necsom’s benefits depends on the position ...................... 40 Figure 10. Ranking of motivational factors at Necsom ....................................................... 41 Figure 11.Descriptive statistics of motivational factors ....................................................... 42 Figure 12. How need to learn new skills depends on the position within company ............ 44 Figure 13. Correlation (importance of appreciation / work place) ...................................... 45 Figure 14. Correlation (need of having good salary / position within company) ................ 46 Figure 15. Correlation ( having good salary /work place) ................................................... 47 Figure 16. Correlation ( having good benefits / position with the company) ...................... 47

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Tables

Table 1. Gender of the employees........................................................................................ 29 Table 2. Nationality of respondents ..................................................................................... 29 Table 3. Age category .......................................................................................................... 29 Table 4. Work place of the employees ................................................................................. 29 Table 5. Education level of the employees .......................................................................... 30 Table 6. Position within company ........................................................................................ 30 Table 7. Basis of employment .............................................................................................. 30 Table 8. Working atmosphere .............................................................................................. 32 Table 9. Interesting work ..................................................................................................... 32 Table 10. Variety in the job.................................................................................................. 33 Table 11. Responsibility at work ......................................................................................... 33 Table 12. Having an idea of what is expected of the employee ........................................... 33 Table 13. Encouragement to improve job performance ....................................................... 34 Table 14. Chance of being promoted for a good job............................................................ 34 Table 15. Use of skills and experience................................................................................. 34 Table 16. Recognition of work ............................................................................................ 34 Table 17. I think I am well paid for my job ......................................................................... 35 Table 18. Opportunities to develop skills and abilities ........................................................ 35 Table 19. Necsom provides enough training for employees ................................................ 35 Table 20. Necsom provides relevant training ...................................................................... 35 Table 21. I prefer to work individually rather then in a team .............................................. 36 Table 22. I get a lot of support from the people I work with ............................................... 36 Table 23. I have to cope on my own when I have difficulties with work ............................ 37 Table 24. I am satisfied with my pay ................................................................................... 37 Table 25. I am satisfied with Necsom’s benefits ................................................................. 37 Table 26. Right facilities, equipment, systems to do the job well ....................................... 37 Table 26. Right facilities, equipment, systems to do the job well ....................................... 37 Table 31. Interesting work ................................................................................................... 42 Table 32. Good work atmosphere ........................................................................................ 43 Table 33. Good working conditions ..................................................................................... 43 Table 34. Secure job ............................................................................................................. 43 Table 35. Professional development and growth ................................................................. 43 Table 36. Learning new skills .............................................................................................. 44 Table 37. Carrier and promotion prospects .......................................................................... 44 Table 38. Sufficient time to do the job well without feeling stressed .................................. 45 Table 40. Working for a friendly, competent supervisor ..................................................... 45 Table 41. Working with friendly, helpful fellow employees ............................................... 45 Table 42. Being fairly paid for the work .............................................................................. 46 Table 43. Having good salary .............................................................................................. 46 Table 44. Having good benefits other than salary................................................................ 46 Table 45. Contribution to the company ............................................................................... 47 Table 46. Knowing what is expected of me ......................................................................... 48

1 Introduction Formation of the market according to developing community and recent demands for new

products dictate constant changes. It forces the companies to introduce new techniques,

technologies, train their workers in such direction and employment on newly formed

positions, which causes exerts pressure on educating the employees or gaining the

educated ones.

Organisations face increasing demands in terms of improving quality and business

outcomes in order to remain competitive. A key challenge for employers therefore

concerns how to motivate and retain committed employees in order to achieve business

objectives.

The report shows what a company formed by its workers is and, at the same time, what the

workers formed by their company are, development of human factor in market needs, the

role of workers employed there, and methods of motivating personnel.

We are all motivated to: eat, sleep, have fun, and work. The challenge for management is

to discover what motivates people at work to do what is necessary for the organization to

succeed. In the past, in the industrial-bureaucratic era of rigid hierarchy and

electromechanical tools, management's task was to motivate employees to obey orders and

perform set tasks. Today, in the age of service industries, managements' task is to motivate

employees to take responsibility for: solving problems, responding to customer needs,

cooperating with team members, and continuously improving products and services.

The labour market is changing in its profile, and employees have different aspirations and

expectations from their life and work than did earlier generations. Employers therefore

have a real need to understand employees’ views and needs in order to develop and deliver

sustainable HRM policies.

Motivating employees requires designing jobs that engage employee’s values and provide

satisfying rewards. This requirement is a challenge not only to managers, but also to

employees. In the motivating organization, people are engaged by their responsibilities, by

the challenges that are part of their job. They feel supported by their relationships, and

satisfied by their rewards. Furthermore, they understand organization goals and find them

meaningful.

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This report presents the significance of employees for an organization’s success and

importance of motivating them. The aim of the report is to discover what the main

motivation factors within a company are. This aim is pursued through a case study of

Necsom Ltd, where the author worked when writing the report. Some methods and ways of

motivating employees have been suggested in following chapters.

This report presents few motivation theories and the research is aimed to show how those

theories are utilized in practise. The research has been done in Finnish telecommunication

company, Necsom Ltd. The case study explores the current employee motivation situation

in this company and describes the importance of certain factors in motivating employees.

The results of the study were aimed to help managers at Necsom to form a motivational

programme for the company. Some conclusion are made how to enhance employee

motivation systems in companies in general, and at Necsom, in particular.

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2 Success factors in a modern company

The essence of an effective strategy consists of uniqueness of a company and distinctively

allows its employees and outsiders to protect the company against any other rivals. We

might say that the aim of an effective strategy is a definition of the company’s identity

regardless of the fact if it is a café or a hotel. (Obloj 1998, 32)

An effective strategy makes the company different from others. It is widely agreed that the

basis of success is each company’s strategic approach to conditions and abilities of its

functioning on market and designing a winning strategy (Penc 1999).

Success of a company depends on its employees (Penc 1999; Stredwick 2000). That is why

the company should invest in its employees and motivate them. However, it is also

important that employees involve themselves in the company’s life and care about their

work.

As Walker (2000) points out, it seems clear that the business world of today is no longer

limited by national boundaries and that organizations need to have a global perspective if

they are to survive and prosper in this international environment. Many organizations will

succeed or fail on the basis of their ability to deal with this dynamic environment. There

has been a growing recognition in the past decade that international business is the reality

of the business world today. (Walker 2000)

As we move toward a more global economy, a company's ability to compete is dependent

upon its ability to cultivate its human capital on a global basis. Many companies, whether

international, multinational, or global in business focus, have programs, processes, and

structures that have been established around singular sets of cultural values that may not

reflect diverse workplace issues. (Walker 2000)

As a result, human resource professionals must find ways to transform the HR function to

deliver a set of global HR services that are flexible, adaptable, and focused on attracting,

motivating, mobilizing, and retaining global human capital. To accomplish this formidable

task, organizations are looking to align their key human resources functions more closely

with overall corporate strategy so they can effectively capitalize upon their greatest asset -

people. (Walker 2000)

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3 The human factor in the company growth

Global companies face an added burden in dealing with the leadership crisis. Not only do

they require leaders with solid leadership abilities, but they also need leaders who can

manage within a variety of geographical locations while trying to build a common

corporate culture. This straddling of two cultural worlds - corporate and local - raises the

bar on leadership skills and magnifies the leadership crisis for global companies. (Wellins

2000)

3.1 The global human resource management

As Wellins points out, in addition to looking for candidates with essential core or

functional skills, global companies need to find people who are willing to relocate to a

different country, often more than once. Those candidates must have the skills to work

across cultural boundaries. As a response to that challenge, the global recruiting process is

being overhauled in many companies to better enable them to compete for global talent.

Best Foods, for example, has a Website to attract and qualify candidates for a high-

potential, entry-level talent pool. Other companies, such as Microsoft, are identifying the

unique competencies for managing globally and building assessment processes for global

aptitude. (Wellins 2000)

Global companies, it seems, are using cross-cultural assignments as a way to develop long-

term talent. The success of global business strategies is correlated largely with the success

of an organization's HR practices (Wellins 2000). HR professionals must extend their value

beyond traditional practices by helping senior management create and maintain a shared

mission and culture, both of which are absolutely essential to the ultimate success of a

global business strategy (Wellins 2000).

Multi-national corporations (MNCs) face a variety of questions regarding the appropriate

business practices to use in the different countries in which they compete. MNCs face

challenges in determining the right product, market, finance, and human resource

management strategies across different national cultures (Wellins 2000).

There are a number of unique challenges global companies faces when trying to implement

consistent practices across their global HR networks. The biggest challenge is somewhat

obvious: the worldwide variations in social, political, and economic circumstances. An HR

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practice that works in one country may be unacceptable in another. Fluctuations in

currency, government regulations, compensation expectations, job security, and learning

styles are just a few examples of the local variations a global HR professional faces.

(Buller & McEvoy 2000)

Another global challenge is that the perceived value of the HR function varies across

locations. In one country, HR may be perceived as a true business partner, working with

high-level managers on critical strategic assessments. In another country but within the

same company, HR may be viewed as a transactional personnel department that handles

administrative work. (Buller & McEvoy 2000)

A third major challenge facing global HR practitioners is that different locations have their

own way of doing things and resist change. If an HR initiative that is viewed as corporate

is imposing on the local HR staff, then it can be difficult to gain acceptance from the field.

That is true regardless of whether it is a U.S. multinational "forcing" initiatives on its local

business or a German company "forcing" policies and practices on its international

businesses. (Buller & McEvoy 2000)

A winning global HR function is constantly adjusting the balance between a strong

corporate culture and local cultural differences. According to the DDI (Development

Dimensions International) survey, 85 percent of global companies are trying to establish a

corporate culture in all locations that is consistent with the goals and vision of the

company. However, 88 percent report that local culture and customs have a "moderate to

great" influence on the way they conduct business in particular locations (Dordrecht 1998).

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3.2 Employees significance and importance of motivating them

Nowadays, significance of employees, their qualifications, abilities and motivations have

an unbelievably great influence towards enormous competition, large variability of

environment, growing globalisation and increasing demands of customers (Stredwick

2000, Penc 1999). According to Penc, without the employees’ engagement, initiative

towards creating new values, the best productive and marketing plans most probably would

not bring an increase in demands or income.

Employees are the most valuable resource of the company (Penc 1999; Stredwick 2000;

Obloj 1998). Thanks to them, the company demonstrates its abilities and it is they who

lead it to success. The company should invest in their development and education.

As Penc points out, employee’s competence is a possibility to fulfil the requirements of the

job, ability to meet these demands in an unfailing way in a longer period of time.

According to Wlodkowski (1999) competence is the concept or major motivation factor

that describes our innate desire to take the initiative and effectively act upon our

environment rather than remaining passive and allowing the environment to control and

determine our behaviour.

Personality of an employee seems to be important as well. Therefore, the company should

focus its attention on individual features of an employee and try to create favourable

conditions for purposeful exploiting employee’s usefulness. (Penc 1999)

It should not be forgotten that effective performance of an employee in an organization

depends on his abilities and willingness to act. Potential of this aptitude has a manifold

structure, in which the most important role is played by motivation to work, assuming such

a person has proper competence. (Penc 1999)

According to M. Armstrong (1998) managers start to recognize the significance of training

their employees that in turn brings the following profits:

• Motivates them towards future training and developing new skills

• Increases identification with the company because during training

employees get to know company’s goals and its functioning

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• Improves communication with personnel because of joint training of both

management and personnel; during such courses, methods of solving

specific problems may be found

• Enriches work – training, educational sessions give people chance to accept

new challenge, which is very beneficial for them and their company

• Helps to understand why changes are necessary and what profits those

changes may bring

• Helps the employees to feel that the company treats them seriously

(Armstrong 1998, 146-147)

Motivating employees relates directly to retaining employees (Schwan & Seipel 2000).

Obloj argues that no simple set of guidelines can guarantee success in motivating people.

What motivates one employee may not motivate another. Success in motivating and

retaining employees results from application of some basic motivation principles,

understanding both the employer and employee roles, careful planning, and attention when

possible to each employee. (Obloj 1998)

As Obloj points out, employers can design jobs with employee motivation in mind.

Uninteresting or boring jobs usually cause motivation problems. Managers have the

primary responsibility for designing jobs. They need to take into consideration the tasks

that must be accomplished for the employee to succeed. The employer can also take into

consideration what individuals want in their jobs. Sometimes relatively minor changes in

job design can dramatically improve a job in the employee's view. Certain job

characteristics may help to motivate employees. First, jobs should be designed whenever

possible to encourage employees to use a variety of skills. (Obloj 1998)

Second, jobs should be designed whenever possible so that an employee performs a total

job. Even such a simple task as repairing gates may be more motivating if one person has

the responsibility to do everything including determining what parts are needed, buying

parts, taking the gate apart, replacing parts, reassembling and testing to be sure everything

is in order. (Obloj 1998)

Third, Obloj proposes that, jobs should be designed so that the employee understands the

significance of his/her job to the company. Fourth, jobs should be designed so that each

employee has responsibility, challenge, freedom and the opportunity to be creative. This

requires the manager of the company to delegate some authority. Delegation can be a

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powerful motivator. "You can do the job however you want as long as you get results."

Such words, such delegation, such responsibility can have positive impacts on employees.

(Obloj 1998)

Finally, employers should incorporate feedback into each job. Most employees want to

know what is expected of them in the job, how they are doing, how they can improve, what

latitude they have in changing how they do their tasks, what should be discussed with an

employer and when the discussion should occur. Employees rarely complain about too

much communication with their employer. They often want more communication. (Obloj

1998)

One of the important matters is to make employees an important part of a team. Saying that

we are a team is easy. Actually functioning as a team is difficult. Making employees feel

important to the team and business takes time. It often starts with how the employer views

employees: employees are working managers or employees are managed workers.

(Schwan & Seipel 2000)

Employees as working managers suggest that each person in the business has ideas on how

to improve the business. Even those people incapable of understanding much about the

business beyond their own jobs may have ideas about how to do their jobs better. Useful

suggestions often stay hidden inside employees’ mind when they do not feel themselves to

be an important part of the company’s team. (Schwan & Seipel 2000)

Turnover among team members forces the team to retreat to a previous stage of

development followed by rebuilding. Sometimes the retreat is all the way back to the

forming stage. Clearly, a continuous rebuilding of the team negatively affects motivation.

Thus, motivating employees and retaining employees are closely related. (Schwan &

Seipel 2000)

Schwan and Seipel claim that employers can improve commitment to team building by

rewarding employees for their contributions to team efforts. Rewarding only individual

efforts may send a strong signal to employees that the business is a collection of

individuals rather than a team.

Other guideline for motivating and retaining employees seems to be the most personal for

the employer. The employer "owns" his or her reputation in the community as a place to

work. Being known as a good place to work immediately gives new employees pride in

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having been hired. New employees speak with enthusiasm with friends about their place of

employment. Employees start with a more positive frame of mind about their job, co-

workers, supervisor and responsibilities. (Obloj 1998)

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4 Work motivation in the organizational context

"Motivation is a concept that explains why people think and behave as they do"

(Wlodkowski 1999, 1).

According to Penc (2000), motivation is a psychological state that contributes to what

degree the man involves himself in something. It covers all the factors that cause,

determine and support human behaviour in a certain direction. People who have strong

motivation most often know what they want from life and what way they will choose to

obtain their aims. (Penc 2000)

Such an attitude is based on two basic conditions

a. Needs and desires of an individual

b. Aim at which the individual is close or remote to (Armstrong 1998, 221).

4.1 Theories on motivation There are many different theories concerning motivation. Some of them are presented

below.

4.1.1 Abraham Maslow As far as the needs are concerned, they are perfectly presented by Abraham Maslow

(1943).

Figure 1. Maslow’s Hierarchy of Needs (adopted from Stredwick 2000, 169)

Self- actualisation

Esteem

Social needs

Safety needs

Physiological needs

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“Need can be defined as a condition experienced by the individual as an internal force that

leads the person to move in the direction of a goal” (Wlodkowski 1999, 10).

Maslow’s hierarchy of needs works from the bottom of the pyramid upwards showing the

most basic needs and motivations at the lowest levels and those created by, or fostered by,

civilization and society towards the top of it. The needs are as follow:

1. Physiological needs

Relation between work and physiological needs is obvious: thank to work people obtain

resources needed to satisfy the needs, which are among others:

• Food and drink

• Sleep and shelter

• Maintaining body temperature

2. Safety needs

These needs are stimulated in situations as having first work, in which we are afraid

whether we are going to manage to fulfil our duties. Similar feelings appear when

promotion, technical, economical and organization modifications, and change of work are

concerned. Therefore the following needs should be taken into consideration:

• Certainty

• Stability

• Care

• Support

3. Social needs

That is a sense of belonging to a society and the groups within it, for example: the family,

the organization, the work group. These needs are:

• Affiliation to a group of people

• Participation in social activities

• Being loved

It can be usually recognized in a man who is in a new environment. When needs

mentioned above are not satisfied, the situation may often result in reluctance towards

other people and dissatisfaction with work.

4. Esteem needs

Many people think that the amount of earnings is a measure of regard for the job,

education level, skill requirements and achieving good working results.

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This also concerns the esteem need:

• Appreciation and esteem accorded by others

• Self-respect

• Self-esteem

• Domination

• Good social status, etc.

5. Self-realization needs

Most of people prefer doing what they wish, what they do well and what is connected with

realization of their interests. In fulfilling them, people develop and realize themselves.

As Maslow expressed it, "What a man can be, he must be" (Maslow 1943). Thus, self-

actualisation is the desire to become what one is capable of becoming. Individuals satisfy

this need in different ways. In one person it may be expressed in the desire to be an ideal

mother; in another it may be expressed in managing an organization; in still another by

playing the piano.

There are other theories of needs that refer to A. Masłow’s idea, mainly from the point of

stimulating motivation.

4.1.2 Frederick Herzberg

Herzberg (1959) developed a Two-Factor Theory of Motivation that also deals with needs

but in a way different from Maslow. According to Herzberg, two factors affect employee

motivation: dissatisfiers and motivators. Examples of dissatisfiers are poor working

conditions, exhausting physical work combined with excessively long workdays and

weeks, unfair pay, disagreeable supervisors, unreasonable rules and policies, and conflict

with co-workers. According to Herzberg these problems must be resolved before

motivators can work. (Weiss 1996)

Motivators are factors that influence job satisfaction and lead to motivation. Examples

include a sense of achievement, recognition, satisfying work, responsibility and personal

growth through training and new experiences. These factors turn an employee from being

neutral about the job into a motivated employee. (Penc 1999)

Employers can learn practical lessons from Herzberg's theory. Dissatisfiers must be

removed before motivators can work. Employees working in unsafe conditions with unfair

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pay will not be motivated by recognition and delegation of additional responsibility.

However, making the workplace safe and increasing the pay to a fair level is not enough.

These steps alone will fail to motivate employees. They will be neither satisfied nor

dissatisfied. These neutral workers can be turned into satisfied and motivated workers by

using the motivators, e.g., recognition and delegation of additional responsibility. Each

employer can work to identify the dissatisfiers among his or her employees. Removing the

dissatisfiers provides opportunity to take advantage of motivators tailored to the needs of

individual workers. (Penc 1999)

4.1.3 C.P. Alderfer

The other theory is that of C.P. Alderfer (1972). Alderfer also developed a need hierarchy,

though he collapsed Maslow’s needs into three categories: 1) EXISTENCE, which

includes the most basic survival needs (comparable to Maslow’s physiological and safety

needs); 2) RELATEDNESS, which is understood as the need for meaningful interaction

and relationships (comparable to Maslow’s belonging and love); and 3) GROWTH, which

includes the need for creativity and productivity (comparable to Maslow’s self-

actualisation). (Weiss 1996, 84)

Alderfer’s theory agrees with Maslow’s that when a satisfaction-progression process

occurs, people progress to the next higher level of needs only after the lower level ones

have been satisfied. His theory holds that higher level needs increase in importance as they

are met. To give an example, increased job responsibility may also lead an employee to

need and desire increased autonomy and job challenge. As Alderfer points out, if these

needs are not met, the employee may regress to looking for a job that offers more

interaction and sense of belonging. (Weiss 1996, 85)

4.1.4 David McClelland David McClelland (1953) identified three needs that affect motivation of organisational

behaviour both of individuals and organisations:

1. Need for Achievement - The desire to do something better or more

efficiently to solve problems, or to master complex tasks.

2. Need for Affiliation - The desire to establish and maintain friendly

and warm relations with others.

3. Need for Power - The desire to control others, to influence their

behaviour, or to be responsible for others. (Penc 1999, 203)

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Needs connected directly with professional work can be distinguished and these are

(Penc 2000, 110-112):

1. Needs connected with the process of work, type of tasks and meaning of work

• Need for development

• Need for achievement, understood as finding more and more ambitious goals,

and achieving better results

• Need for change, desire to do something new in order not to repeat the same

routine and not to become bored

• Need for independence, meant as a desire to be independent in acting and

performing tasks

2. Needs connected with affiliation to a team and social life in work environment

• Need for integration, expressed as a need of affiliation

• Need for relationships, desire to gain new friends in order to exchange

professional experience

• Need for participation, expressed by the need to participate in meetings in the

work place

• Need for social appraisal, need for acceptance by a social group

• Need for dominance, which is the desire to predominate and manage others

3. Needs connected with management process

• Need for reliable judgement; an objective opinion from the superiors

• Need of being listened to; it is a desire to express one’s opinions in matters of

work, implementing tasks and tackling other problems

• Need for approval and promotion; feeling of being respected in the work place

4. Needs connected with employment in a particular working place

• Need for earnings, which is inclination towards earning money through your

work

• Need for stabilization, need to have a permanent job and appreciable earnings

• Need for safety, secure work and help from the employer in case of any

incidents

• Need for orientation: being aware of what is happening in the company

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• Need for self-realization: a need in which one can use his own qualifications,

abilities and feel that he is useful in his work.

Theories of motivation to work have passed through many stages, influencing and being

influenced by the prevailing management ideologies and philosophies of each era.

Although we can trace a sequence to this development, it does not mean that the old

theories have died. There are employers and employees today adhering vigorously to one

or other of them, basing their belief not on research or empirical evidence but on an almost

ideological framework of values and assumptions. These help them understand their own

role and those of others around them. The poor quality of comprehension about how

reward systems affect behaviour can be blamed partly on the confusion generated by so

many theories of motivation and conflicting case examples. (Bowey 2000)

Dr. Angela M. Bowey in her article about work motivation writes: “Fortunately for us,

there have always been researchers putting theories to the test.”

There is a growing body of research findings that show motivation varies between

individuals, between groups, and between cultures, and that this can affect the operation of

a remuneration system. Karen Legge and Neil Millward (in Millward 1968) reported an

interesting example when they were asked to study a television components factory in the

north-west of England. The objective of the study was to help management understand

why some staff responded well and were highly motivated by the incentive bonus scheme

in operation, whilst others showed no interest in it at all. The explanation lay in the family

situation of the employees. (Bowey 2000)

Other researchers have reported variations in motivation. Michael White (1973) found UK

managers in a sample of 2246 showed six distinctive patterns of motivation (material

rewards, status and prestige, security and social issues, job interest, variety and challenge,

and leadership). Blackburn and Mann (1979) found in a sample of 1000 low skilled

workers a wide range of "orientations", or motivations to work. These included such things

as pay, hours of work, promotion opportunities, autonomy, working indoors, intrinsic

features of the work, how worthwhile the work was, relationships with colleagues, and

working conditions. (Bowey 2000)

Those above were quite old studies. Newer research was made by Liliana Porzuczek in

1999 also concerning employees’ motivation. The research was conducted among enrolled

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applicants between 23 and 30 years old with higher education and very small professional

experience. The research showed that the most important for applicants were: prestige,

achievements and relations with superiors. The last placed were: management and material

profits.

These kinds of studies certainly support the "contingency theory" approach, which says

that management strategies (including payment systems) should be designed specifically to

suit the host organisation and its employees and managers (Bowey 2000). However the

picture is very much complicated by the fact that there is also a body of research which

indicates that needs are neither instinctive nor fixed for individuals. They vary with

changes in personal circumstance, and can be modified by making desired rewards more

available or less available. (Bowey 2000)

Since the above results showed many discrepancies between different studies, the author of

this thesis decided to make a research to see how motivational theories work in practice

(presented in chapter 5 of the thesis).

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4.2 A self concept-based model of work motivation A self concept-based model of work motivation shown in this chapter was presented in the

paper prepared by professors Nancy H. Leonard, Laura Lynn Beauvais and Richars W.

Scholl at the annual meeting of the Academy of Management in August, 1995.

There is a growing realization that traditional models of motivation do not explain the

diversity of behaviour found in organizational settings. While research and theory building

in the areas of goal setting, reward systems, leadership, and job design have advanced our

understanding of organizational behaviour, most of this work is built on the premise that

individuals act in ways to maximize the value of exchange with the organization.

In the self concept-based model of motivation, one's concept of self is composed of four

interrelated self-perceptions: the perceived self, the ideal self, one's self esteem, and a set of

social identities. Each of these elements plays a crucial role in understanding how the self

concept relates to energizing, directing and sustaining organizational behaviour.

One of the earliest theorists writing on the nature of the self was William James. He saw

the self as consisting of whatever the individual views as belonging to himself or herself,

which includes a material, a social, and a spiritual self. The perceptions of the material self

are those of one's own body, family, and possessions. The social self includes the views

others have of the individual, and the spiritual includes perceptions of one's emotions and

desires.

The self concept is a relatively stable, but changeable, set of self perceptions that are

developed through social interaction, and includes self perceptions, ideal selves, social

identities, and self esteem.

The perceived self is comprised of a set of self cognitions regarding one's traits,

competencies and values. It is developed and reinforced through social and task feedback,

which results in two dimensions: level of perceptions and strength of perception. Level of

perceptions refer to the degree to which an individual possesses an attribute relative to their

ideal self and is expressed on a continuum from low to high. Strength of perception refers

to how strongly the individual holds the perception of attribute level and is expressed on a

continuum from weak to strong. The frame of reference or standard used to compare

17

perceived and ideal self is either fixed or ordinal. The type of feedback which an individual

receives from their primary group (conditional / unconditional) determines whether they

use an inner- or other-directed standard to measure the ideal self.

Social identities are those aspects of the self concept that derive from social categories to

which he/she perceives him/herself as be-longing. Reference groups establish the role

expectations and norms which guide the individual's behaviour within the social identities.

Two types of social identities are established: global identity and role-specific identities.

The global identity is formed early in life and is the identity one wishes to display across

all situations, roles and reference groups. The global identity forms the basis for role-

specific identities. Role-specific identities are those identities established for a specific

reference group or social role. Global and role-specific identities are inter-active.

Self-esteem is the evaluative component of the self concept, and is a function of the

distance between the ideal self and the perceived self. Three types of self-esteem are

proposed: chronic, task-based and socially influenced.

Internal Self Concept-based Motivation: Self concept motivation will be internally based

when the individual is primarily inner-directed. Internal self concept motivation takes the

form of the individual setting internal standards that become the basis for the ideal self.

The individual tends to use fixed rather than ordinal standards of self measurement as

he/she at-tempts to first, reinforce perceptions of competency, and later achieve higher

levels of competency. This need for achieving higher levels of competency is similar to

what McClelland ( Achievement Motivation) refers to as a high need for achievement. The

motivating force for individuals who are inner-driven and motivated by their self concept

is task feedback. It is important to these individual that their efforts are vital in achieving

outcomes and that their ideas and actions are instrumental in performing a job well. It is

not important that others provide reinforcing feedback as is true for other-directed

individuals.

External Self Concept-based Motivation: Self concept motivation is externally based

when the individual is primarily other-directed. In this case, the ideal self is derived by

adopting the role expectations of reference groups. The individual attempts to meet the

expectations of others by behaving in ways that will elicit social feedback consistent with

self perceptions. When positive task feedback is obtained, the individual finds it necessary

to communicate these results to members of the reference group. The individual behaves in

18

ways which satisfy reference group members, first to gain acceptance, and after achieving

that, to gain status. These two needs, for acceptance and status, are similar to McClelland's

need for affiliation and need for power. The individual continually strives to earn the

acceptance and status of reference group members. This status orientation usually leads to

an ordinal standard of self evaluation.

Individuals experience both internally- and externally-based self concept motivation to

varying degrees. Whether or not an individual will be motivated by his or her self concept

and whether the source of that motivation is internal or external, are dependent on a

number of things.

Expectancy. The concept of expectancy is the cornerstone of the cognitive school of

motivation. Expectancy theory posits that individuals choose among a set of behavioural

alternatives on the basis of the motivational force of each alternative. The motivational

force is a multiplicative combination of expectancy (the perceived probability that effort

will lead to a desired outcome), instrumentality (the probability that this outcome will lead

to a desired reward), and valence (value of the reward).

Attribution. The attribution process is concerned with the way in which individuals

attempt to determine the causes of behaviour. External attributions are those that are made

when the observer (self or other) of a behavioural pattern believes that the actor is

responding to situational forces, such as the expectation of a bonus. Internal attributions

are made when the observer believes that the behaviour is the result of some disposition of

the actor such as a personality trait or internal value. Since the self concept is comprised of

self perceptions of traits, competencies, and values, how the individual and others assess

these attributes is important in the maintenance of these self perceptions.

Cognitive Dissonance. According to the theory of cognitive dissonance (Festinger 1957),

inconsistency between two cognitive elements, whether they represent beliefs, attitudes, or

behaviour, gives rise to dissonance. Assumed to be unpleasant, the presence of dissonance

is said to motivate the individual to change one or more cognitive elements in an attempt to

eliminate the unpleasant state. With respect to the self concept, dissonance occurs when

task or social feedback differs from self perception.1

1 Leonard, Beauvais & Scholl 1995, Paper presented on the anual meeting of the Academy of Management.

19

4.3 Methods and ways of motivating employees

Motivation is related to a person’s needs and to learning, performance, and rewards.

Since people value and are motivated by different reasons, reward systems must be diverse

to accommodate different and changing employee needs. (Stredwick 2000)

Edward Lawler III (1988) argued that satisfaction with rewards is influenced by at least

five factors:

1. The actual reward and the amount the person feels they should have received.

2. People compare the rewards they receive with comparable awards other receive. This

influence their level of motivation. Employees who believe they are under- or over

awarded in comparison to others may not feel motivated or satisfied.

3. Intrinsic and extrinsic awards influence individual’s motivation and job satisfaction.

4. There is a wide variation in the rewards people value.

5. Some extrinsic awards are valued because they lead to other rewards. (Weiss 1996, 99)

As already mentioned, there are two kinds of motivation. One is extrinsic motivation,

which has to do with control, getting people to do something they may not want to do.

Extrinsic motivation is caused by positive or negative incentives. Intrinsic motivation, the

second kind of motivation, results when internal drives and values are engaged at work.

Extrinsic factors include better pay and benefits, employment security, opportunity for

advancement, and working conditions. Intrinsic factors include challenging work,

enjoyable work, meaningful work and above all, opportunity to experience a sense of

accomplishment. However, what is challenging, enjoyable, and rewarding depends on

employees' individual values (and skills), which differ among people at work. (Weiss

1996)

There are numerous elements in the reward package and we can divide them into direct

and indirect rewards. Direct rewards consist of: basic pay, pay for performance, benefits

(which relate to a wide range of “extras”), recognition pay. By indirect rewards it is meant:

job satisfaction, cultural satisfaction, security, personal growth, career development

opportunities. (Stredwick 2000, 297)

As Stredwick (2000) points out, reward is not just about pay, although this is the major

part. In his opinion the organizations need to develop a balance between the various

components. Rewarding employees for exceptional work they have done is critical to

20

keeping employees motivated to want to continue to do their best. Although money is

important, managers can potentially get even more benefit from personal, creative forms of

recognition. (Stredwick 2000)

There were done researches (for example, research made at the Piketon Research and

Extention Center in 1998) on what employees value most and in the order of importance

they were: interesting work, full appreciation of work done, feeling included, job security,

good wages, promotions and growth opportunities, good working conditions, personal

loyalty to co-workers, tactful disciplining. (Lindner 1998)

According to Penc (2000), organization success depends on employee performance, which

refers to effective and efficient work. Performance is a function of ability and willingness

of an employee or simply motivation. Motivated employees often see a strong connection

between achievement of organizational goals and satisfaction of personal goals.

As already mentioned, motivating employees relates directly to retaining employees.

Motivated employees are more likely than unmotivated employees to stay with an

employer. Retaining employees reduces the costs of recruitment, hiring, orienting and

training. Additionally, motivated employees are more productive, more creative, happier

and easier to work with than unmotivated employees. (Penc 2000)

Motivation seems to be essential to employer success in getting things done through

people. If the employer wants to evoke a feeling of attachment to a company, the company

should use various types of awards, praises, promotions, etc. (Penc 2000)

As Penc points out, an important method of evoking engagement is praising employees’

achievements. If the employer praise the employees, they will be more involved in what

they do than those employees who are not noticed. Usually people like to be admired for

what they do, even though it may seem they realise the admiration and do not need it to be

expressed. When the employer praise his employee, it should be expressed what the

employer liked in the worker’s job and what was really done well.

According to Penc, praise and admiration can be expressed in many different ways.

However:

- A manager should make sure that he has enough time for his interlocutor; a

curt praise said while closing the door will hardly bring the expected effect. An

21

employee should be convinced that his success are really valuable and deserve

the attention.

- A manager should provide the employee with a feeling of success as soon as

possible. Praising after numerous days or even weeks after something

happened significantly lessens the satisfaction.

- A manager should be absolutely convinced that he is praising the right person

and that the way he acts his role is not curt. (Penc 2000)

There are also other unconventional methods of praising. Some companies print special

notes or stick-notes saying: ”Thank you”, ”Good” or ”Well done!” and put them on the

desks belonging to praised person. Other companies grant their employees a free day or a

dinner with their boss (for example Necsom Ltd, Orbis S.A.).

Another way to increase employee’s engagement is enlarging his independence and

responsibility. It is the employee who says how fast s/he will make a job and find the best

way to fulfil a task. As challenges and responsibility rise, their motivation, enthusiasm and

satisfaction with work grows. (Penc 2000)

There is a growing consensus that the key to developing competitive advantage in Multi

Nationals is the effectiveness of the human organization. More specifically, MNCs can

enhance their competitiveness by integrating their human resource management activities

with their strategic goals. These so-called strategic international human resource

management systems are optimally designed in accordance with the MNCs strategic

challenge - achieving the appropriate balance between global integration and local

responsiveness. (Buller & McEvoy 2000)

The challenge of effective strategic human resource management in MNCs is to design

human resource systems and practices that are consistent with strategy. In this regard, we

have three possible MNC orientations regarding human resource management practices:

polycentric (adapting to practices in the host country), ethnocentric (imposing home

country practices), or geocentric (using some combination of best practices regardless of

origin). In addition to strategy, an MNCs approach to SIHRM may also be determined by

the relative influence of home country and host country culture, values and practices.

(Buller & McEvoy 2000)

22

Top managers of the MNC should provide leadership in recognizing the value of human

resources and developing a broader cross-cultural understanding and sensitivity.

Second, the MNC must engage its various international stakeholders, including employees

from home and host countries, in a collaborative effort to find the common ground with

respect to human resources and ethical practices. As noted earlier, cross-cultural dialogue

is an important tool for developing new mindsets and creating shared meanings. (Byrne

1998)

The ultimate goals of this initial organizational learning process are: 1) to establish a

corporate code of ethics that is globally integrative yet locally responsive, consistent with

the models of global ethics described above; 2) to create mechanisms for an ongoing

process of organizational learning and responsiveness; and 3) to create an ethical culture

across all MNC operations. Based on a clear corporate code of ethics and a continuous

learning process, the MNC can develop specific management practices to shape and

reinforce an ethical corporate culture. (Byrne 1998)

According to Byrne, appraisal processes should signal clearly the MNC's standards and

expectations regarding ethical behaviours. In addition, employees should receive timely

and regular feedback regarding their performance. Effective performance feedback

reinforces behaviours that are consistent with expectations and helps the employee make

any necessary improvements. (Byrne 1998)

Finally, the performance appraisal process itself (appraisal interviews, goal setting,

feedback, coaching) can be an effective tool for enhancing trust and communication

between managers and employees. (Byrne 1998)

One purpose of performance appraisal is to provide a systematic basis for allocating

rewards. To be effective, compensation and recognition systems should be: 1) linked

directly to ethical behaviours and outcomes; 2) timely; 3) visible; 4) durable (i.e., produce

long-term motivation); and 5) contribute to a shared mindset regarding ethical values and

behaviours. In addition, thoughtfully designed reward systems include both monetary and

non-monetary rewards linked to ethical performance. Effective leaders, such as Jack Welch

at General Electric, are renowned for their prompt, hand-written notes acknowledging

exemplary employee performance. (Byrne 1998)

23

4.4 Cross-cultural perspectives on motivation “Motivation is, to a large extent, culturally conditioned and learned” (Weiss 1996, 101).

Across the globe people behave differently, even when faced with similar situations. For

example, in France meetings start on time when in Peru they often begin late. In Japan

politeness is very important, so people frequently say “yes” when they mean “no”. In the

United States most people say what they really mean. It is culture that explain these

differences.

“Culture is the acquired knowledge that people use to interpret experience and to generate

social behaviour. Members of a group, organization, or society share culture. Through

culture we form values and attitudes that shape our individual and group behaviour.

Culture is learned through both education and experience.” (Rugman & Hodgetts 2000,

124)

In multinational businesses to be successful, one must understand the cultures of other

countries and learn how to adapt to them. To an extend, all individuals are home country

oriented. It is the challenge in international business to learn how to broaden one’s

perspective to avoid making business decisions based on misconceptions (Rugman &

Hodgetts 2000, 124). As Rugman and Hodgetts point out, language, religion, values and

attitudes, manners and customs, material goods, aesthetics, and education are elements of

culture that explain behavioural differences among people. In recent years researchers have

attempted to develop a composite picture of culture by clustering these differences.

Geert Hofstede, a Dutch researcher, has found four cultural dimensions that help to

explain how and why people from various cultures behave as they do.

His four dimensions are (1) power distance, (2) uncertainty avoidance, (3) individualism,

and (4) masculinity. (Rugman & Hodgetts 2000, 134)

“Power distance is the dimension that indicates the extent to which a society expects and

accepts inequalities between its people, and an unequal distribution of power and

responsibility within its institutions and organizations” (Mercado; Welford & Prescott

2001, 447).

24

People in societies where authority is obeyed without question live in a high power

distance culture. Hofstede (1995) found that many Latin and Asian countries such as

Malaysia, the Philippines, Panama, Venezuela and Mexico were typified by high power

distance. In contrast, the United States, Canada, and many European countries such as

Denmark, Great Britain, and Austria had moderate to low power distance. (Rugman &

Hodgetts 2000, 134)

“Uncertainty avoidance. This index relates to the extend to which countries and their

institutions establish formal rules and fixed patterns of operation as a means of enhancing

security and avoiding ambiguity and doubt. High uncertainty avoidance societies are

marked by a strong preference for structured over unstructured situations.” (Mercado et al.

2001, 447) Hofstede (1995) found strong uncertainty avoidance in Greece, Uruguay,

Portugal, Japan and Korea. He found weak uncertainty avoidance in countries as

Singapore, Sweden, Great Britain, The United States and Canada. (Rugman & Hodgetts

2000, 134-135)

“Individualism. This dimension relates to the degree to which people in a country prefer to

act as individuals rather than as members of groups” (Mercado et al. 2001, 447).

Rugman and Hodgetts (2000) claim that it is in direct contrast with collectivism, the

tendency of people to belong to groups that look after each other in exchange for loyalty.

Countries with high individualism expect people to be self-sufficient. There is a strong

emphasis on individual initiative and achievement. Autonomy and individual financial

security are given high value, and people are encouraged to make individual decisions

without reliance on strong group support. In contrast, countries with low individualism

place a great deal of importance on group decision-making and affiliation. No one wants to

be singled out for special attention, even for a job well done. Success is collective and

individual praise is embarrassing because it implies that one group member is better than

others. Hofstede (1995) has found that economically advanced countries tend to place

greater emphasis on individualism than do poorer countries. (Rugman & Hodgetts 2000,

135)

Masculinity is the degree to which the dominant values of society are “success, money, and

things” (Rugman & Hodgetts 2000, 134). Hofstede (1995) measured this dimension in

contrast to feminity, which is the degree to which the dominant values of society are

“carring for others and the quality of life”. He found that countries with high masculinity

25

included Japan, Austria, Venezuela and Mexico. Countries with low masculinity included

Norway, Sweden, Denmark, and the Nederlands (Rugman & Hodgetts 2000, 135). As

Rugman and Hodgetts point out, countries with high masculinity scores place a great deal

of importance on earnings, recognition, advancement, and challenge. Achievement is

defined in terms of wealth and recognition. Countries with low masculinity scores place

great emphasis on a friendly work environment, cooperation, and employment security.

Achievement is defined in terms of human contacts and the living environment. There is

low stress in the workplace and workers are given a great deal of freedom. (Rugman &

Hodgetts 2000, 135)

As mentioned at the beginning, motivation to a large extend is influenced by a culture.

Since most motivational theories have been developed in North America and the West, it is

not surprising that these concepts reflect western assumptions about human nature (Weiss

1996, 101). That is why, the theories presented earlier in many cases are criticised from a

cross-cultural perspective. (Weiss 1996; Adler 1997)

Geert Hofstede argues that in countries with cultures that value uncertainty avoidance (like

Japan and Greece), job security and lifelong employment are stronger motivators than self-

actualisation, interesting or challenging job. Moreover, in certain European countries (like

Denmark, Sweden, and Norway) that value and reward quality of life as much as –if not

more than- productivity, social needs are stronger motivators than self-esteem or self-

actualisation needs (which are higher order needs in Maslow’s hierarchy). What is more, in

countries that value collectivist (like Pakistan) and community practices over

individualistic achievements, belonging and security are higher order needs (again, in

contrast to Maslow’s hierarchy). (Weiss 1996, 101; Adler 1997)

“The point here is that need hierarchies differ with culture. Maslow’s needs may thus be

universal, but the logic or the sequence of the hierarchy is likely to differ from culture to

culture” (Weiss 1996, 102).

Herzberg’s two-factor theory also does not hold up across cultures. A study (Staw 1980)

presented by Adler (1997) showed that interpersonal relationships and supervision in New

Zealand act as motivators, not as hygiene factors; that is, they reduce dissatisfaction.

Hofstede, cited above, also notes that cultures influence factors that motivate and

demotivate (Adler 1997, 162). For example, collectivistic societies like the Scandinavian

26

countries use organizational restructuring strategies (forming work groups to enhance

interaction) to increase quality of work life. More individualistic societies as the United

States focus on job enrichment to increase the productivity of individuals. Other studies

also show that what acts as a hygiene factor or dissatisfier in the United States, may act as

a motivator in other countries. (Adler 1997, 162)

McClelland’s motivation theory (1953) holds up better under the test of cross-cultural

analysis than any other theories I have discussed, however comparable to the analysis of

Maslow’s need hierarchy, Hofstede questions the universality of McClelland’s three needs

(Adler 1997, 161).

As Weiss points out, a moral for individual organizational members working in and/or with

those from different cultures should be “Don’t assume” when the topic is motivation –

whether it is needs, expectancies, or satisfiers (Weiss 1996, 103). It is always

recommendable to find out first what the basic cultural orientation is. Not everyone in a

culture shares all of its basic societal values, but the values can certainly influence

unspoken beliefs, attitudes, and motivations. Moreover, the managers should not use own

values or motivational assumptions as absolute standards but rather be open to discover

other’s motivating values and ideas. (Weiss 1996, 104)

International research “The Importance of Work Goals: An International Perspective”

made by Harpaz in 1990, reveals that work is important to many people. The research

reports on the importance of series of work goals among workers in seven different

countries. Results show that interesting work, on average, is the most objective.

Commenting on the research, Itzahak Harpaz has noted that major findings have a number

of practical implications. For example, the emphasis that the employees give to interesting

work points to the need for challenging, meaningful jobs. (Rugman & Hodgetts 2000, 143)

Additionally, when the work is interesting and challenging, the employees are willing to

exert greater effort. This has led Harpaz to conclude that “intrinsically motivated

employees are concerned with the expressive aspects of work life, not necessarily for the

purpose of securing more financial rewards, but because these very rewards are associated

with intrinsically motivating jobs” (Rugman & Hodgetts 2000, 143).

27

5 Work satisfaction and motivation and its significance as a result of research in Necsom company The study has been done in the company Necsom Ltd. where the researcher worked as a

marketing assistant. The aim of the study was to help managers to design the motivation

program for the company.

5.1 Introduction to the company, Necsom Ltd. Necsom Ltd. is a Finnish company that develops, produces and markets innovative

software and hardware products for intelligent traffic processing and application execution

in the Internet environment. (Necsom 2001)

The company was founded in 1997 by Professor Olli Martikainen, a co-developer of the

GSM mobile communications standard used by 400 million mobile phones worldwide.

Necsom was born out of the idea that the future customers will have a growing demand for

value added services, forcing the networks to be more than just pathways for data.

(Necsom 2001)

Necsom’s current product portfolio includes an intelligent switch platform, called the

Media Switch, a distribution software MOWE (Manager of Objects in Web Environment),

and a management software IBIM (Internet Business Information Manager). Necsom’s

products are designed to provide a complete solution for managing, monitoring,

distributing, and billing of IP-services. The products can be used separately as well.

(Necsom 2001)

Currently Necsom has 40 employees, of which the majority work in the research and

development centre located in Lappeenranta, in south-eastern part of Finland. The sales

and marketing resides in the Helsinki office.

28

5.2 Survey methodology

The purpose of this study was to discover the current employee motivation situation and to

describe the importance of certain factors in motivating employees at Necsom, Ltd. The

results of the study was aimed to help managers at Necsom to form a motivational

programme for the company.

The research design for this study employed a descriptive survey method. A survey

questionnaire was developed to collect data for the study. The questionnaire was designed

by the researcher based on motivation theories presented in the chapter 3. The

questionnaire was approved by a thesis supervisor and a general director at Necsom. Some

improvements of the questionnaire were done before the research begin (for example: a

question concerning employee’s income has been removed). This method of research was

chosen since it is quick, inexpensive, and accurate mean of gathering information.

The target population of this study included employees at Necsom from both offices,

Helsinki and Lappeenranta. The sample size included all 40 employees of the target

population. Thirty-one (31) of all employees participated in the survey, including 7 persons

from Helsinki and 23 from Lappeenranta. The response percentage is 77.5%.

Data was collected through use of a written questionnaire (with Necsom logo) hand-

delivered to participants in Helsinki and e-mailed to employees to Lappeenranta office.

Employees were informed about the purpose of the study before the questionnaires were

provided to them. Necsom employees were asked to complete a confidential 3-part

questionnaire (Appendix 1). Part 1 captured information about the survey respondents,

part 2 measured employee job satisfaction and part 3 established the importance of

motivation factors. Questionnaires were filled out by participants and returned to an intra-

company mailboxes, both in Helsinki and Lappenranta.

Analysis of the survey was made by using SPSS – statistics programme. To maintain

confidentiality, the researcher was the only person reading questionnaires and analysis was

made outside the work place.

29

5.3 Survey results

Results of the study show that most of the employees are satisfied with their job at

Necsom.

5.3.1 Demographic data

Part 1 of the questionnaire presented demographic data on the employees.

Table 1. Gender of the employees Table 2. Nationality of respondents

gender

1 3,225 80,6

5 16,131 100,0

missingmalefemaleTotal

ValidFrequency Percent

Nationality of respondant

27 87,13 9,7

30 96,81 3,2

31 100,0

FinnishotherTotal

Valid

MissingTotal

Frequency Percent

As above tables show majority of the employees are male (80,6%) and almost all

employees are of Finnish nationality. Both of these data are relevant to the results of this

research. It is interesting to notice that all female employees working at Necsom took part

in the research.

Table 3. Age category Table 4. Work place of the employees

Age category

21 67,75 16,12 6,5

28 90,33 9,7

31 100,0

20-2930-3940-49Total

Valid

MissingTotal

Frequency Percent

Work place

7 22,623 74,230 96,8

1 3,231 100,0

HelsinkiLappeenrantaTotal

Valid

MissingTotal

Frequency Percent

Employees at Necsom are rather young people and a large majority work in Lappeenranta. Table 5. Education level of the employees

Education level

7 22,68 25,8

13 41,92 6,5

30 96,81 3,2

31 100,0

high schoolbachelor degreemaster degreeotherTotal

Valid

MissingTotal

Frequency Percent

30

Most of the employees at Necsom are highly educated: 25,8% having a bachelor degree

and a 42% having master degree. However it is interesting to notice that despite rather

difficult area that is telecommunication there are still employees without higher education.

Table 6. Position within company Table 7. Basis of employment

Position within company

4 12,919 61,3

7 22,630 96,8

1 3,231 100,0

managerialR&DsupportTotal

Valid

MissingTotal

Frequency Percent

Basis of employment

27 87,13 9,7

30 96,81 3,2

31 100,0

permanentshort termTotal

Valid

MissingTotal

Frequency Percent

Position within company is compressed in 3 categories. Employees on managerial position

are both directors and managers from all sectors (such as: marketing, sales and research).

Research and development positions includes system analysts, hardware designers,

software engineers and web designers. Support employees include assistants,

administration work, logistics and documentation work.

The results show that almost all employees at Necsom have permanent basis of

employment and more than a half of the employees are on R&D position. All R&D

employees work in Lappeenranta.

First part of the questionnaire was designed to observe if there is any correlation between

demographic data and both work satisfaction and motivation factors. Moreover,

demographic data presents profile of Necsom employees (who are they, how old, education

level, where do they work etc.). All those data seem to have an influence on the survey

results.

5.3.2 Work satisfaction Part 2 of the questionnaire was designed to measure work satisfaction. This part presents

an overall situation of employee satisfaction at Necsom that may influence motivation

factors.

The scale for answers was: 1. I fully disagree, 2. I disagree to some extent, 3. mixed

feelings, 4. I agree to some extent, 5. I fully agree.

31

Following are the main findings about work satisfaction:

Descriptive Statistics

31 4,32 ,65

31 4,13 ,88

31 2,19 1,14

31 3,48 1,12

31 2,65 ,71

31 3,84 ,97

31 2,16 1,13

31 1,74 ,73

31 2,94 1,03

31 2,29 1,27

31 3,45 ,81

31 3,10 1,11

31 3,13 1,26

31 3,71 ,97

31 4,03 ,60

31 3,87 ,96

31 3,65 1,02

31 3,03 1,28

31 2,26 1,12

30 3,33 1,06

30 3,43 1,01

31 4,39 ,76

31 2,71 1,10

31 2,42 1,20

Working atmosphere inNecsom is pleasantI find my work interestingI am not given anyresponsibilityI have a clear idea of whatis expected of meI get little encouragementto improve my jobperformanceThere is lots of variety inmy jobIf I do a good job I have achance of being promoted

My job makes little use ofmy skills and experienceI rarely feel stressed atworkI have to cope on my ownwhen I have difficulty withmy workThe importance of my jobis recognised by otherpeopleI think I am well paid formmy jobI never worry about losingmy jobI get a lot of support fromthe people I work withI have opportunities todevelop my skills andabilitiesNecsom provides enoughtraining for employeesNecsom provides relevanttraining for my needs

I do not see any careerprospects for me in thiscompanyI prefer to work individuallyrather then in a team

I am satisfied with my payI am satisfied withNecsom's benefitsI have the right facilities,equipment,systems to domy job wellI am kept informed aboutwhat is happening in thecompanyPressure at work oftenaffects negatively myhome/family life

N Mean Std. Deviation

Figure 2. Descriptive statistics of work satisfaction

32

The overall results are presented in the figure below.

Satisfaction profile

3,33

3,43

3,48

3,71

3,87

4,03

4,39

4,32

4,13

1 2 3 4 5

Necsom provides enough training

I am satisfied with my pay

I am satisfied with benefits

I have the right equipment

I know what is expected of me

I get support from fellow employees

I have opportunities to develop my skills

I find my work interesting

Working atmosphere is pleasant

mean

Figure 3. Satisfaction profile at Necsom Table 8. Working atmosphere

Working atmosphere in Necsom is pleasant

3 9,715 48,413 41,931 100,0

mixed feelingsI agree to some extentI fully agreeTotal


Results show that 90.3% of employees consider working atmosphere at Necsom as pleasant. Table 9. Interesting work

I find my work interesting

2 6,54 12,9

13 41,912 38,731 100,0

I disagree to some extentmixed feelingsI agree to some extentI fully agreeTotal


Results show that work at Necsom is regarded as interesting. 80% of employees stated that

they find their work interesting and over 60% think there is a lot of variety in their job.

33

Table 10. Variety in the job

There is lots of variety in my job

3 9,78 25,8

11 35,59 29,0

31 100,0



However still many employees are not confident if they have lots of variety in their jobs. Table 11. Responsibility at work

I am not given any responsibility

11 35,59 29,05 16,16 19,4

31 100,0

I fully disagreeI disagree to some extentmixed feelingsI agree to some extentTotal


Employees at Necsom are given some responsibility. 64,5% disagreed with the statement

“I am not given any responsibility”, whereas 16% had mixed feelings about it.

Table 12. Having an idea of what is expected of the employee

I have a clear idea of what is expected of me

1 3,26 19,47 22,6

11 35,56 19,4

31 100,0

I fully disagreeI disagree to some extentmixed feelingsI agree to some extentI fully agreeTotal


A little over half of the employees have a clear idea of what is expected of them. This

seems to be weakness of the company since still large percentage of employees do not

have an idea or are not very sure what is expected of them at work.

Table 13. Encouragement to improve job performance

I get little encouragement to improve my job performance

1 3,212 38,715 48,4

3 9,731 100,0



34

Only 9,7% of employees are of an opinion that they get a little encouragement to improve

their job performance, whereas 42% disagree and 48% have mixed feelings about this

statement.

Table 14. Chance of being promoted for a good job

If I do a good job I have a chance of being promoted

12 38,77 22,67 22,65 16,1

31 100,0



Very similar results were for the question concerning rewards. 61% of respondents

disagreed with the statement “If I do a good job I have a chance of being promoted”.

Table 15. Use of skills and experience

My job makes little use of my skills and experience

12 38,716 51,6

2 6,51 3,2

31 100,0



Almost all respondents (90%) are of an opinion that their job makes use of their skills as

well as experience.

Table 16. Recognition of work

The importance of my job is recognised by other people

4 12,911 35,514 45,2

2 6,531 100,0



Just a little over half of employees think that the importance of their job is recognized by

other people whereas 35,5 % did not have any opinion (or mixed feelings).

35

Table 17. I think I am well paid for my job

I think I am well paid form my job

4 12,94 12,99 29,0

13 41,91 3,2

31 100,0



Results show that half of the employees think they are well paid for their job (45%).

However there is still many employees who have mixed feelings or thing that should be

paid more for the job they do.

Table 18. Opportunities to develop skills and abilities

I have opportunities to develop my skills and abilities

5 16,120 64,5

6 19,431 100,0

mixed feelingsI agree to some extentI fully agreeTotal


The majority (83%) thinks they have opportunities to develop their skills and abilities. Table 19. Necsom provides enough training for employees

Necsom provides enough training for employees

4 12,94 12,9

15 48,48 25,8

31 100,0



Also large percentage of respondents say that Necsom provides enough training for

employees (74,2%) and more than half (61%) think this training is relevant for their needs.

Table 20. Necsom provides relevant training

Necsom provides relevant training for my needs

1 3,23 9,78 25,8

13 41,96 19,4

31 100,0



36

Table 21. I prefer to work individually rather then in a team

I prefer to work individually rather then in a team

9 29,011 35,5

6 19,44 12,91 3,2

31 100,0



The majority of the employees prefer to work as a team rather then individually. This is

quite understandable since 68% of respondents stated that they get a lot of support from

people they work with. The results are reliable when we see that exactly the same

percentage of employees disagreed with the statement “I have to cope on my own when I

have difficulty with my work”.

Table 22. I get a lot of support from the people I work with

I get a lot of support from the people I work with

5 16,15 16,1

15 48,46 19,4

31 100,0



Since employees have support from the fellow employees and do not have to cope on their

own when they have difficulties with job, it is understandable why employees consider

work atmosphere at Necsom as pleasant.

Table 23. I have to cope on my own when I have difficulties with work

I have to cope on my own when I have difficulty with my work

10 32,311 35,5

3 9,75 16,12 6,5

31 100,0



37

Table 24. I am satisfied with my pay


2 6,55 16,16 19,4

15 48,42 6,5

30 96,81 3,2

31 100,0


Valid

MissingTotal

Frequency Percent

56,7% stated that they are satisfied with their pay and the same percentage stated

satisfaction with Necsom’s benefits. At the same time in each case about 20% of

employees had mixed feelings (did not have a strong attitude towards these statements). It

is interesting to notice that in both questions there was a missing answer. Table 25. I am satisfied with Necsom’s benefits

I am satisfied with Necsom's benefits

1 3,25 16,17 22,6

14 45,23 9,7

30 96,81 3,2

31 100,0


Valid

MissingTotal

Frequency Percent

Table 26. Right facilities, equipment, systems to do the job well

I have the right facilities, equipment,systems to do my jobwell

1 3,22 6,5

12 38,716 51,631 100,0



Table 26. Right facilities, equipment, systems to do the job well

Moreover, 90% of the employees are satisfied with the facilities, equipment and system,

which helps them to do their job well.

38

There are different opinions concerning few of the following matters presented in the table:

Statement I agree

mixed

feelings I disagree

% % %

I never worry about losing my job 41,9 22,6 35,5

I rarely feel stressed at work 32,2 35,5 32,3

I am kept informed about what is happening in the

company 29 22,6 48,4

I do not see any career prospects for me 32,3 29 38,7

Figure 4. Different opinions concerning work satisfaction Table 27. Table 28.

Pressure at work often affects negatively my home/family life

8 25,810 32,3

7 22,64 12,92 6,5

31 100,0



I am kept informed about what is happening in the company

4 12,911 35,5

7 22,68 25,81 3,2

31 100,0



Table 29. Table 30.

I never worry about losing my job

3 9,78 25,87 22,68 25,85 16,1

31 100,0



I do not see any career prospects for me in this company

3 9,79 29,09 29,04 12,96 19,4

31 100,0



As it can be seen from the above figure opinions differ. One of the explanations could be

that employees in different positions in the company see the same thing in a different way.

Some examples showed below:

Correlation between career prospects and position within company

Count

2 12 6

91 33 3

4 19 7

I fully disagreeI disagree to some extentmixed feelingsI agree to some extentI fully agree

I do not see anycareer prospects forme in this company

Total

managerial R&D supportposition within company

Figure 5. Correlation (carrier prospects / position within the company)

39

Correlation between feeling stressed at work and position within company

Count

1 22 4 12 8 1

5 31

4 19 7

I fully disagreeI disagree to some extentmixed feelingsI agree to some extentI fully agree

I rarely feelstressed atwork

Total


Figure 6. Crosstable (feeling stressed at work / position within the company)

It is interesting to notice that although people have different opinions about stress at work,

the majority (58%) thinks that the pressure at work does not affect negatively their

home/family life. 22,6% have mixed feelings about it.

There are other factors that could influence the answer, like: gender of the respondent,

position within the company or work place.

In many cases it is difficult to make any generalization if those factors have any influence

on the answers because, for example there were only 5 females between 31 of all

respondents.

Correlation between carrier prospects and gender of the employee

Crosstab

2 166,7% 33,3%

888,9%

9100,0%

2 250,0% 50,0%

4 266,7% 33,3%

25 580,6% 16,1%

I fully disagree

I disagree to some extent

mixed feelings

I agree to some extent

I fully agree

I do not see anycareer prospects forme in this company

Total

male female

gender

Figure 7. Crosstable (carrier prospects / gender of the employee)

40


I fully agree

I agree to some exte

mixed feelings

I disagree to some e

I fully disagree

Cou

nt

10

8

6

4

2

0

position within comp

managerial

R&D

support

Figure 8. How satisfaction with pay depends on the position in the company

It is important to notice that 61,3% of the respondents represent R&D employees, 22,6%

support and only 12,9% managerial position.

I am satisfied with Necsom's benefits

I fully agreeI agree to some exte

mixed feelingsI disagree to some e

I fully disagree

Cou

nt

12

10

8

6

4

2

0

Work place

Helsinki

Lappeenranta

Figure 9. How satisfaction with Necsom’s benefits depends on the location

As the figure shows only employees in Lappenranta are not satisfied with company’s

benefits. It may be result of the fact that in Lappenranta work all employees on R&D

position and most of support people.

41

Reward is not just about pay, although this is the major part, and organizations need to

develop a balance between the various components. Rewarding employees for exceptional

work they have done is critical in keeping them motivated to want to continue to do their

best. Although money is important, managers can potentially get even more benefit from

personal, creative forms of recognition.

5.3.3 Work motivation Third part of the questionnaire was designed to measure the importance of motivation

factors within the company.

Respondents considered all of the motivational factors covered by the survey to be

important i.e. most of factors were rated about 3 or higher.

The scale for this part of questionnaire was:

1. Not important, 2. Of little importance, 3. Quite important, 4. Very important

Ranking of the motivational factors in order of importance is presented in the figures

below.

Interesting workA good work atmosphe

Learning new skillsWork with friendly e

Professional develop

Fairly pay for my joTime to make my job

Knowing what is expeAppreciation of work

Contribution to the

Having good salaryWork for a friendly

Good working conditiSecure job

Career and promotionHaving good benefits

Mean

4,03,83,63,43,23,02,82,62,4

2,7

2,83,0

3,03,13,1

3,23,23,2

3,3

3,33,4

3,53,5

3,7

3,9

Figure 10. Ranking of motivational factors at Necsom

42

Following are the main findings:

Descriptive Statistics

31 3,87 ,34

31 2,81 ,75

31 3,35 ,75

31 3,29 ,7831 3,71 ,4631 2,97 ,9531 3,19 ,60

31 3,06 ,73

31 3,45 ,62

31 3,23 ,80

31 3,03 ,7131 3,32 ,6031 3,48 ,63

31 3,16 ,78

31 3,10 ,60

30 2,73 ,64

30

Interesting workCareer and promotionprospectsProfessionaldevelopment and growthin the organizationTime to make my job wellA good work atmosphereSecure jobAppreciation of work doneWork for a friendlysupervisorWork with friendlyemployeesKnowing what is expectedof meGood working conditionsFairly pay for my jobLearning new skillsContribution to thecompanyHaving good salaryHaving good benefitsother than salaryValid N (listwise)

N Mean Std. Deviation

Figure 11. Descriptive statistics of motivational factors

Table 31. Interesting work

Having interesting work

4 12,927 87,131 100,0

quite importantvery importantTotal


The most important motivational factor for Necsom’s employees undoubtedly is interesting

work. All employees think it is either very important (87%) or quite important (13%).

Having a good atmosphere at work is almost of the same importance. 71% regard is as

very important and 29% as quite important.

43

Table 32. Good work atmosphere

Having a good atmosphere at work

9 29,022 71,031 100,0

quite importantvery importantTotal


Table 33. Good working conditions

Having good working conditions

1 3,24 12,9

19 61,37 22,6

31 100,0

not importantof little importancequite importantvery importantTotal


84% regards good working conditions as an important motivational factor, but only over

60% think it is important to have a secure job.

Table 34. Secure job

Knowing that my job is secure

2 6,58 25,8

10 32,311 35,531 100,0



Table 35. Professional development and growth

Professional development and growth in the organization

1 3,22 6,5

13 41,915 48,431 100,0



More than 90% say that professional development and growth in the organization is an

important component of what they are looking for in their jobs. Same amount of

respondents look for learning new skills. It is interesting to notice that employees in all

categories of position within company see those matters important, even the managers.

44

Table 36. Learning new skills

Learning new skills

2 6,512 38,717 54,831 100,0

of little importancequite importantvery importantTotal


Learning new skills

very importantquite important

of little importance

Cou

nt

10

8

6

4

2

0


managerial

R&D

support

Figure 12. How need to learn new skills depends on the position within company Table 37. Carrier and promotion prospects

Knowing that there are career and promotion prospects

1 3,29 29,0

16 51,65 16,1

31 100,0



Fewer employees regard career and promotion prospects just as important. For 32% of

respondents it is not important or of little importance.

Table 38. Sufficient time to do the job well without feeling stressed

Having sufficient time to do my job well, withoutfeeling stressed

6 19,410 32,315 48,431 100,0



45

Moreover, 80% of employees think it is important to have sufficient time to their job well,

without feeling stressed.

Table 39. Appreciation of work done

Appreciation of work done

3 9,719 61,3

9 29,031 100,0



Over 90% would like to feel appreciated for the work done and more than 80% want to

know what is expected of them.

Crosstab

% within Work place

13,0%71,4% 56,5%28,6% 30,4%

100,0% 100,0%

of little importancequite importantvery important

Appreciationof work done

Total

Helsinki LappeenrantaWork place

Figure 13. Correlation (importance of appreciation / work place) Table 40. Working for a friendly, competent supervisor

Working for a friendly, competent supervisor I can trust

7 22,615 48,4

9 29,031 100,0



Majority of respondents (77,4 %) want to work for a friendly, competent supervisor, which

they could trust. Only 22,6 consider it of little importance.

Table 41. Working with friendly, helpful fellow employees

Working with friendly, helpful fellow employees

2 6,513 41,916 51,631 100,0



Very important for the respondents is working with friendly and helpful fellow employees.

46

As it was said earlier the majority of employees are of an opinion they get a lot of support

from the people they work with. This is something that the company can be proud of.

Table 42. Being fairly paid for the work

Being fairly paid for the work I do

2 6,517 54,812 38,731 100,0



Table 43. Having good salary

Having good salary

4 12,920 64,5

7 22,631 100,0



Although money is not the main motivator there it is still very important.

Over 90% would like to be fairly paid for the work they do and 87% would like to have a

good salary. Having good benefits other than salary is not that important.

Table 44. Having good benefits other than salary

Having good benefits other than salary

11 35,516 51,6

3 9,730 96,8

1 3,231 100,0


Valid

MissingTotal

Frequency Percent

% within position within company

25,0% 15,8%75,0% 57,9% 71,4%

26,3% 28,6%100,0% 100,0% 100,0%

of little importancequite importantvery important

Havinggood salary

Total


Figure 14. Correlation (need of having good salary / position within company)

47

Having good salary

very importantquite importantof little importance

Cou

nt

14

12

10

8

6

4

2

0

Work place

Helsinki

Lappeenranta

Figure 15. Correlation ( having good salary /work place)

Having good benefits other than salary

very importantquite important

of little importance

Cou

nt

12

10

8

6

4

2

0


managerial

R&D

support

Figure 16. Correlation ( having good benefits / position with the company) Table 45. Contribution to the company

Feeling that I am contributing to the company's success

7 22,612 38,712 38,731 100,0



The majority (77,4%) want to contribute to the company’s success.

48

Table 46. Knowing what is expected of me

Knowing what is expected of me

1 3,24 12,9

13 41,913 41,931 100,0



5.4 Brief summary of results

To sum up findings of the study, the results show that employees at Necsom are generally

satisfied with their job. However, the majority of respondents would like to have clear idea

what is expected of them. Most of the employees think that they have no chance for a

promotion even if they do a good job. Many employees would like their job to be

recognized by other people. Only one-third of employees think that they are kept informed

about what is happening in the company.

The aim of this research was to analyse the overall work motivation and satisfaction at

Necsom and to study what motivates employees to work. The purpose was to help

managers to find the right factors that may make the working environment at Necsom even

better. Provided information shall help the managers to design a motivation program based

on employees needs.

49

6 Discussion on the research findings Understanding what motivated employees and how they were motivated has been the focus

of many researchers. Some of the motivation theories are presented in chapter 3 of the

thesis.

The job of a manager in the workplace is to get things done through employees. To do this

the manager should be able to motivate employees. But that is easy said than done.

Motivation theory and practice are difficult subjects, touching on several disciplines.

Two major approaches that have lead to author’s understanding of motivation are

Maslow’s need-hierarchy theory and Herzberg’s two-factor theory. Although Maslow’s

need-hierarchy theory has been criticized (Hofstede; Trompenaars) it has been still widely

used by researchers (such as Bowen & Radhakrisna 1991; Harpaz 1990; Kovach 1987).

The aim of the research was to see how these theories work in practice.

In order to establish motivational factors the author made a research in the company she

worked for, Necsom Ltd in Finland.

In the study the ranked order of motivating factors were: (1) interesting work, (2) a good

work atmosphere, (3) learning new skills, (4) work with friendly and helpful fellow

employees, (5) professional development, (6) fairly pay for the job, (7) to have sufficient

time to the job well, without feeling stressed, (8) knowing what is expected of me, (9)

appreciation of work done, (10) contribution to the company, (11) having good salary, (12)

work for a friendly supervisor, (13) good working conditions, (14) secure job, (15) career

and promotion prospects, (16) having good benefits.

A comparison of these results to Maslow’s need-hierarchy theory provides some

interesting insight into employee motivation. The number one ranked motivator, interesting

work, is a self-actualisation factor. It is already contrary to Maslow’s theory. Other factors

in order of importance were social factor, self-actualisation factor, social needs again. The

number six ranked, fairly pay for my job, is an esteem factor. A physiological factor, that is

good salary, is ranked as number eleven. Safety needs like good working conditions and

secure job are almost last ranked in the study.

50

Therefore, according to Maslow (1943), if managers wish to address the most important

motivational factor of Necsom’s employees, self-actualisation, social, esteem,

physiological, and safety needs must first be satisfied.

Contrary to what Maslow’s theory suggests, the range of motivational factors are mixed in

the study. Maslow’s conclusions that lower level motivational factors must be met before

ascending to the next level were not clearly confirmed by this study.

However, there are few factors that to some extent could influence results of the research.

Firstly, the researcher was not allowed to ask employees about their incomes. It can be

only assumed that all employees earn enough money to meet their physiological needs as

buying food or paying their rents. On the other hand results show that only less than half

employees think they are well paid for their job and a large majority would like to be fairy

paid for the work they do. At the same time 87% of respondents are of an opinion that

good salary is important. Secondly, although the survey was totally confidential, many

employees were afraid that their answers will be shown to Necsom directors. Many times

employees had to be assured that the researcher will be the only person seeing and

analysing results of the research.

The fact remains that the most important motivational factor for Necsom’s employees

undoubtedly is interesting work (100% employees stated it as important).

The other example compares the two highest motivational factors to Herzberg’s two-factor

theory. Herzberg’s work categorized motivation into two factors: motivators and hygienes.

The highest ranked motivator, interesting work, is a motivator factor. The second ranked

motivator, a good work atmosphere, is a hygiene factor. Herzerg (1959) stated that to the

degree that motivators are present in a job, motivation would occur. The absence of

motivators does not lead to dissatisfaction, but to the degree that hygienes are absent from

a job, dissatisfaction will occur. When present, hygienes prevent dissatisfaction, but do not

lead to satisfaction.

In the study, the lack of interesting work (motivator) for Necsom employees would not

lead to dissatisfaction, but in the case when there is not a good work atmosphere it may

51

lead to job dissatisfaction. Conversely, employees will be motivated when there is

interesting work, but will not necessarily be motivated by a good work atmosphere.

The discussion above, about the ranked importance of motivational factors as related to

motivation theory is only a part of this study. The ranked importance of motivational

factors of employees at Necsom provides useful information for the company’s directors

and employees. Knowing how to use this information in motivating Necsom’s employees

is complex.

When we follow Maslow we should accept assurance that most Western working people

have their basic needs satisfied, so they are not to be motivated by money (which can buy

basic necessities but cannot buy relationships, affection, self esteem etc.). Managers

following this theory turn their attention to providing more satisfactory relationships, more

interesting work, and more opportunities for self-fulfilment.

Employers who follow Herzberg also reject money as a motivator, and focus their efforts

on providing more enriched jobs. McClelland focused attention on giving people the

opportunity to satisfy their needs for achievement, power, and affiliation.

Regardless of which theory is followed, interesting work and a good work atmosphere

appear to be important links to higher motivation of the company’s employees. Option

such as job enlargement, job enrichment, trainings, promotions, monetary and non-

monetary compensation should be considered. Job enlargement can be used by managers

to make work more interesting for employees by increasing the number and variety of

activities performed. Job enrichment can be used to make work more interesting and

increase pay by adding higher level responsibilities to a job.

Knowing what motivates employees and incorporating this knowledge into the reward

system will help Necsom identify, recruit, employ, train and retain a productive workforce.

Motivating Necsom employees requires both managers and employees working together.

Employees must be willing to let managers know what motivates them, and managers must

be willing to design reward systems that motivate employees.

To sum up the discussion on the research findings, the author of this report found many

discrepancies with other researches presented in the thesis (Porzuczek, Harpaz).

52

Moreover the researcher was not fully able to make any conclusion if motivation factors

depend on demographic data collected in the study. Firstly, it is hard to make any

conclusion if there is any correlation between motivation factors and the nationality of

respondent (the big majority (87%) of respondents are Finnish). Secondly, majority of

employees are working in Lappeenranta office where all (61% of the company’s

employees are on R&D position). Finally, almost all employees have a permanent basis of

employment.

However, it seems important when making any conclusion to notice that 81% of

employees are male and almost all employees are young people (only 6,5% older than 39

years old) with rather high education level (26% with bachelor and 42% with master

degree).

The results were also limited since not all Necsom employees wanted to take part in the

study and those participating did not answer all the questions. However, since the response

percentage is 77.5% and only few answers missing, it can be claimed that the results

present the current motivation situation at Necsom.

53

7 Conclusion It is important to recognize that people are motivated by their own individual goals, values

and desires. A blanket assumption that all employees will be motivated by one thing, such

as salary increases or performance bonuses, will lead to failure. People are motivated more

by feelings and sensitivities than they are by facts and logic. They can quit high-paying

jobs because they do not feel appreciated, do not feel challenged, or do not like the work

environment.

Today's employees asked to rank what they most value in their work, most probably

choose a combination of extrinsic and intrinsic factors. Extrinsic factors include better pay

and benefits, employment security, opportunity for advancement, and working conditions.

Intrinsic factors include challenging work, enjoyable work, meaningful work and above all,

opportunity to experience a sense of accomplishment. However, what is challenging,

enjoyable, and rewarding depends on employees' individual values (and skills), which

differ among people at work.

Sometimes, as we shall see, the distinction between intrinsic and extrinsic becomes

blurred. Pure intrinsic motivation implies that people would be motivated to work, even if

they were not paid, as is the case when people play a game for fun. Pure extrinsic

motivation implies that people would not be motivated to do something unless they were

paid. In fact, most people need to be paid for their work, even though they may put as

much or more of themselves into games and volunteer activities. An increasing number of

new generation self-developers take a job for the pay and benefits, but they are intrinsically

motivated by other work such as artistic or volunteer activities.

There is an old saying: you can take a horse to the water but you cannot force it to drink. It

will drink only if it is thirsty – so with people. They will do what they want to do or

otherwise motivated to do.

Unfortunately a simple answer to the question of how to motivate people was not found by

the author of this thesis. Can money motivate? Yes, but money alone is not enough, though

it does help. The author has discussed some of the theories bearing on human motivation

and this is balanced by some of the practical factors, which can lead to excellence. Human

resource remains the focal point and leadership the critical component, and motivation has

to be “tailored” to each individual.

54

It has become very clear that any simple model cannot be accepted which seeks to explain

human motivation as deriving from generally applicable needs, such as the need for

money, or the need for achievement, or for interesting work, or for relationships at work.

People have different needs, both between and within organisations.

Moreover, as Adler (1997) argues “motivation is culture bound”. Hofstede’s culture

dimensions have important implications for motivation in the work place. According to

Hofstede, national culture explains more of the differences in work-related values and

attitudes than does position within the organization, profession, age or gender. As Hofstede

claims, managers and employees vary on four primary dimensions: individualism/

collectivism, masculinity / feminity, power distance, uncertainty avoidance. For example,

workers in more collectivist countries (such as Pakistan), tend to stress social needs over

the more individualistic ego and self-actualisation needs stressed in countries such as the

United States (Adler 1997, 159). In countries higher on uncertainty avoidance (such as

Greece and Japan) as compared with those lower on uncertainty avoidance (United States),

security motivates most employees more strongly than does self-actualisation. Employees

in high uncertainty avoidance countries tend to consider job security and lifetime

employment more important than holding a more interesting or challenging job. (Adler

1997, 159)

In addition, when the company considers internationalisation, cross cultural aspects on

motivation have to be taken into account. A trend that has accompanied

internationalisation of organizations is the increase in the number of international

employees. In order to maintain a good work atmosphere and keep employees motivated to

work, managers must be observant and sensitive to the needs of each individual. Each

employee is motivated by different factors, some are professional and some personal. In

every culture certain factors act as motivators and others act as demotivators. That is why,

managers should take time to listen to each of the employees and determine what motivates

them. The motivational system should be tailored to the national culture, to the

organization and to the individual employee.

To sum up, it could be said that long-term motivation for employees would be certainly the

feeling that they belong to an organization, which cares about them, challenges, believes in

them and wants the best for them, not just as employees, but as total human beings.

55

Literature

Published sources

Adler, N. 1997. International Dimensions of Organizational Behavior. 3rd edition. International Thomson Publishing, Boston Alderfer, C.P. 1972. Human needs in organizational settings. Free Press, New York Armstrong, M. 1998. Human Resource Management. WPSB, Kraków Buller, P. & McEvoy, G. 2000. Creating and Sustaining Ethical Capability in the Multi-National Corporation. Journal of World Business. (326-343) Byrne, J. 1998. A close-up look at how America's #1 manager runs GE. Business Week (90-106) Herzberg, F., Mausner, B. & Snyderman, B.B. 1959. The motivation to work. Wiley, New York Hofstede, G. 1994. Cultures and Organizations: software and mind. HarperCollins, London

Lindner, J.R. 1998. Understanding Employee Motivation. Journal of Extension, Vol.3 Maslow, A. 1943. Theory of human motivation. Psychological Review, Vol. 50 (370-396) McClelland, D. 1953. The Achievement Motive. Appleton-Century-Crofts, New York Mercado, S., Welford, R. & Prescott, K. 2001. European Business. 4th edition. Financial Times, Prentice Hall, London Obłój, K. 1998. Strategia sukcesu firmy. PWE, Warsaw Penc, J. 1999. Efficient corporate management. WSMiB, Kraków Penc, J. 2000. Creative management. AW Placet, Warsaw Porzuczek, L. 1999. Dlaczego umysłowych. Personel nr 57. (17-19) Rugman, A.M. & Hodgetts R.M. 2000. International Business. 2nd edition. Financial Times, Prentice Hall, London Schwan K, Seipel G, 2000, Personal Marketing. WSMiB, Kraków Stredwick, J. 2000. An Introduction To Human Resource Management. Butterworth-Heinemann, Oxford Walker, A. 2000. The global HR model. HR Focus.

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Wellins, R. 2000. The Growing Pains of Globalizing HR. Training and Development (79-85) Weiss, W.J. 1996. Organizational behavior and change. West Publishing Company, St. Paul Wlodkowski, R. 1999. Enhancing Adult Motivation to Learn. Jossey-Bass, San Francisco

Unpublished sources

Bowey, A. 2000. Motivation at work: a key issue in remuneration. http://www.netnz.com/gainsharing/Motivation.html. Last accessed: 15.09.2001 Dordrecht, J. 1998. Creating and Sustaining Ethical Capability in the Multi-National Corporation. Academic Search Elite. http://www.epnet.com/articles. Last accessed: 18.5.2001 Leonard, N., Beauvais, LL. & Scholl. R.W. 1995, A SELF CONCEPT-BASED MODEL OF WORK MOTIVATION http://www.cba.uri.edu/Scholl/Papers/Self_Concept_Motivation.HTM Last accessed: 12.11.2001 Necsom Ltd. http://www.necsom.com. Last accessed: 13.09.2001

http://www.netnz.com/gainsharing/Motivation.html

http://www.epnet.com/articles

http://www.cba.uri.edu/Scholl/Papers/Self_Concept_Motivation.HTM

http://www.necsom.com/

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Appendix: The form of questionnaire used for a survey

This is a questionnaire to find out how you feel about your job and what motivates you to work.

Please print the questionnaire first.

Please complete Parts 1, 2 and 3 of the questionnaire, and put

in the colour box provided.

Your answers will be completely confidential.

You submit the questionnaire anonymously.

Please take time with answering all questions.

Thank you.

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Part 1 YOU AND YOUR JOB 1. Your gender: male female 2. Your age: _____ years 3. Nationality: Finnish Other ___________ ( you can specify if you want) 4. Education level: high school vocational school bachelor degree master degree other 5. Work experience: _______ years 6. Position within company: managerial R&D (system analyst, hardware designers, software engineers, web designer) support (administration, assistant, logistics, documentation) 7. Work place: Helsinki (sales) Lappeenranta (R&D) 8. On what basis you are employed: permanent contract short term contract Part 2 HOW YOU FEEL ABOUT YOUR JOB Pick a choice (by putting a cross) that most accurately reflects your opinion.

The scale is:

1 I fully disagree, 2 I disagree to some extent, 3 mixed feelings, 4 I agree to some extent, 5 I fully agree.

1. Working atmosphere in Necsom is pleasant 1

2

3

4

5

2. I find my work interesting 1

2

3

4

5

3. I am not given any responsibility 1

2

3

4 5

4. I have a clear idea of what is expected of me 1

2

3

4

5

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5. I get little encouragement to improve my job performance.

1

2

3

4

5

6. There is lots of variety in my job 1

2

3

4

5

7. If I do a good job I have a good chance of being

promoted 1

2

3

4

5

8. My job makes little use of my skills and

experience 1

2

3

4

5

9. I rarely feel stressed at work 1

2

3

4

5

10. I have to cope on my own when I have difficulty

with my work 1

2

3

4

5

11. The importance of my job is recognised by

other people 1

2

3

4

5

12. I think I am well paid for my job 1

2

3

4

5

13. I never worry about losing my job 1

2

3

4

5

14. I get a lot of support from the people I work with 1

2

3

4

5

15. I have opportunities to develop my skills and

abilities 1

2

3

4

5

16. Necsom provides enough training for employees 1

2

3

4

5

17. Necsom provides relevant training for my needs

(for my job) 1

2

3

4

5

18. I do not see any career prospects for me in this

company 1

2

3

4

5

19. I prefer to work individually rather than in a team 1

2

3

4

5

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20. I am satisfied with my pay 1

2

3

4

5

21. I am satisfied with Necsom’s benefits 1

2

3

4

5

22 I have the right facilities, equipment and systems

to do my job well 1

2

3 4

5

23. I am kept informed about what is happening in

this company 1

2

3

4

5

24. Pressure at work often affects negatively my

home/family life 1

2

3

4

5

PART 3: THINGS THAT ARE IMPORTANT TO YOU

Not important

Of litt importance

Quite important

Very important

1. Having interesting work 1 2 3 4 2. Knowing that there are career and

promotion prospects 1 2 3 4

3. Professional development and growth in the organization

1 2 3 4 4. Having sufficient time to do my job

well, without feeling stressed 1 2 3 4

5. Having a good atmosphere at work 1 2 3 4 6. Knowing that my job is secure 1 2 3 4 7. Appreciation of work done 1 2 3 4 8. Working for a friendly, competent

immediate supervisor I can trust 1 2 3 4

9. Working with friendly, helpful fellow employees

1 2 3 4 10. Knowing what is expected of me 1 2 3 4 11. Having good working conditions (good computers, desks, other equipment)

1 2 3 4 12. Being fairly paid for the work I do 1 2 3 4 13. Learning new skills 1 2 3 4 14. Feeling that I am contributing to the

company’s success 1 2 3 4

15. Having good salary 1 2 3 4 16. Having good benefits other than

salary 1 2 3 4

Thank you for completing this questionnaire. Please check that you have answered all of the questions and then put the questionnaire in the box provided.

Motivation at work (research study)

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