4 Theory 4 1 Introduction Job Satisfaction example essay topic

MANAGEMENT REPORT JOB SATISFACTION LEVELS OF EMPLOYEES OF A MULTINATIONAL ORGANISATION By Saj ied Sayed (21216577) Submitted as part of the requirements for the degree in MASTERS IN BUSINESS ADMINISTRATION in the Faculty of Economics and Management Sciences, University of Pretoria, Pretoria. Study Leader: Professor H E Brand Date: 22/10/2002 TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 6 2 OPSOMMING 11 3 BACKGROUND 16 3.1 INTRODUCTION 16 3.2 AIM 17 4 THEORY 19 4.1 INTRODUCTION 19 4.2 CONTENT THEORIES 20 4.2. 1 Maslow's Hierarchy of needs 20 4.2. 2 McClelland's Theory of Needs 23 4.2. 3 Herzberg Factor (Motivator - Hygiene) Theory 24 4.2.

4 Theory X and Theory Y 25 4.2. 5 ERG Theory 26 4.3 PROCESS THEORIES 28 4.3. 1 Vroom's Expectancy Theory 28 4.3. 2 Equity Theory 30 4.3. 3 Goal Setting Theory 32 4.3. 4 Reinforcement Theory 34 4.4 CONCLUSION 35 5 RESEARCH METHODOLOGY 36 5.1 INTRODUCTION 36 5.2 A DESCRIPTION OF THE METHOD OF STUDY 36 5.3 METHOD OF DATA COLLECTION 36 5.4 RESEARCH INSTRUMENT 37 5.5 CONCLUSION 39 6 INTERPRETATION AND ANALYSIS OF RESULTS 40 6.1 INTRODUCTION 40 6.1.

1 Pay 40 6.1. 2 Promotion 41 6.1. 3 Supervision 42 6.1. 4 Fringe Benefits 44 6.1.

5 Contingent Rewards 45 6.1. 6 Operating Conditions 46 6.1. 7 Co-workers 47 6.1. 8 Nature of Work 49 6.1. 9 Communication 50 6.2 CONCLUSION AND RECOMMENDATIONS 52 7 REFERENCES: 54 8 APPENDIX A 56 LIST OF FIGURES FIGURE 1 - MALSOW'S HIERARCHY MODEL 23 FIGURE 2 - HERZBERG'S MODEL 25 FIGURE 3 - ALDERFER'S HIERARCHY 28 FIGURE 4 - EQUITY THEORY MODEL 31 FIGURE 5: LOCKE's MODEL OF GOAL SETTING 32 FIGURE 6: PROCESS OF REINFORCEMENT THEORY 35 FIGURE 7- PIE CHART OF PAY SATISFACTION 40 FIGURE 8 - PIE CHART OF PROMOTION SATISFACTION 42 FIGURE 9 - PIE CHART OF SUPERVISION SATISFACTION 43 FIGURE 10 - PIE CHART OF FRINGE BENEFITS SATISFACTION 44 FIGURE 11 - PIE CHART OF CONTINGENCY REWARDS SATISFACTION 45 FIGURE 12 - PIE CHART OF OPERATING CONDITIONS SATISFACTION 46 FIGURE 13 - PIE CHART OF CO-WORKERS SATISFACTION 48 FIGURE 14 - PIE CHART OF NATURE OF WORK SATISFACTION 49 FIGURE 15 - PIE CHART OF COMMUNICATION SATISFACTION 51 FIGURE 16 - PIE CHART OF OVERALL JOB SATISFACTION LEVEL 52 LIST OF TABLES TABLE 1 - SCORE BREAKDOWN FOR NEGATIVELY WORDED ITEMS 38 TABLE 2 - SUB-SCALE BREAKDOWN 39 1 Executive Summary ABC Ltd is the name used for a South African multinational organization that provides short and long distance fixed-line telecommunication services to residential and corporate customers. ABC Ltd is a corporate with its headquarters in Pretoria, South Africa.

The government plans to deregulate the fixed-line telecommunication sector in the last quarter of 2002. The Second Network Operator (SNO) has not been finalized as yet. When the license is approved, customers will have a choice which operator they want to use. ABC Ltd's Initial Public Offering (IPO) is also expected soon.

This means that ABC Ltd need not only be prepared for competition, but also needs to become an attractive investment opportunity. ABC Ltd has already spent R 34 billion on upgrading and expanding the network with the latest technology. It has also streamlined the structure of the company and designed new products and services for the market segments. With the technology base already in place and new products and services being developed, the success of the company now lies in its employees to offer world class service, so that the customers choose ABC Ltd as their choice of operator. It is therefore very important for the organisation to have highly motivated and satisfied employees. This report investigates the level of job satisfaction of employees within ABC Ltd SA Limited.

An employee's assessment of how satisfied or dissatisfied he is with his job is a complex summation of discrete job variables. Several of studies have examined the relationship between job satisfaction and other organisational variables. One of those variables is motivation. For the purpose of this study, motivation is used as the core variable determining job satisfaction. Substantive research has been done in the field of work motivation and satisfaction and many psychologists have tried to explain it in terms of certain needs, interests and values (Joubert, 2000). These theories may be divided into two groups: a.

Content (need-based) Theories b. Process Theories Content or need-based theories emphasize specific human needs or factors within a person that energize, direct and / or stop behaviour. The theory explains motivation as a phenomenon occurring primarily intrinsically or within an individual. Process theories take a more dynamic view of motivation.

These theories focus on initial energy of behaviour through to behaviour alternatives and then to actual efforts by the individual. The strategy to motivate employees depends on which motivation theories are used as bases. There are an infinite number of possible strategies that could be used, however, the key to motivating employees is to know what motivates each employee and then to design a motivation program based on those criteria. A field survey was done by means of a questionnaire consisting of questions assessing how employees feel.

A field survey was chosen because it provides an efficient way to find out how people feel about issues. It is also the most cost effective way of obtaining the required information. The survey used was based on a questionnaire (Appendix A) by a psychology student, Paul E. Spector from the University of South Florida (Spector, 1999). The following factors where included in the questionnaire: a. Pay b. Promotion c.

Supervision d. Fringe Benefits e. Contingent Rewards f. Operating conditions g.

Co-workers h. Nature of Work i. Communication The study was limited to a sample group consisting of 45 employees. This means that conclusions made from results obtained from the survey will not necessary reflect the actual level of job satisfaction within the 40,000-employee organization. In addition to this, the answers selected by the sample group could be influenced by the moods of the employees at the time of completing the questionnaire. The results obtained were first analysed separately in each of the motivation dimensions researched.

Thereafter conclusions and recommendations were made for each dimension. A summation analysis was then done and conclusions and recommendations were made on the overall level of job satisfaction within the organization. The results indicate that: - a. 70% of the employees are moderately satisfied with the pay they are receiving, 15% are very satisfied and 15% are unsatisfied. b. None of the employees are very satisfied with his / her chances of promotion. 46% of the employees are actually unsatisfied with the chance of them receiving a promotion and 54% are moderately satisfied with their chances of promotion. c.

The supervision in the organisation seems to be very good, because a large majority (54%) of the employees are very satisfied with their supervisors, while 31% are moderately satisfied and only 15% are unsatisfied with their supervisors. d. Only 8% of the employees are unsatisfied with the fringe benefits they receive from the company, compare to 69% that are moderately satisfied and 23% that are very satisfied with their fringe benefits. e. 77% of the employees are only moderately satisfied with their contingent rewards. The rest (23%) are unsatisfied and not a single employee is very satisfied with his / her contingent rewards. f.

54% of the employees are moderately satisfied with their operating conditions, 31% are very satisfied and 15% are unsatisfied with their operating conditions. g. 77% of the employees are very satisfied with their co-workers, the remaining 23% being moderately satisfied with their co-workers and no one was unsatisfied. h. None of the employees were unhappy about the nature of the work they work were doing. Almost half the employees (46%) were very satisfied with the type of work they were doing while 54% were moderately satisfied. i. Only 15% of the employees are very satisfied with the communication within the organisation, while 54% are only moderately satisfied and 31% are unsatisfied with the communication within the organisation. Based on the summation score, all the employees scored between 72 and 144.

This means that all the employees are moderately satisfied with their jobs. This summation score is probably not a good indication of the general level of job satisfaction in the organisation, due to the fact that job satisfaction is a multi dimensional concept. An employee might be satisfied with one or more aspects of the job and dissatisfied with other aspects of the job. Unfortunately, there is no right way to manage people, because each employee has different needs, backgrounds and expectations.

A good place to start is by creating an environment that promotes job satisfaction. However, an organisation cannot satisfy all its employees, because practices that satisfy one employee might cause another to resign. After the perfect environment has been created, it was recommended that the management in ABC LTD identify the qualities that they want in their "ideal" employees, and then to structure its employee retention and recruitment strategy around it. 2 Opsomming ABC Beperk is 'n multi-nasional e organisasie wat kort- en langafstand vastelyn kommunikasie dienste aan residense " ele en korporatiewe kli " ente lewer. ABC Beperk is 'n korporasie met sy hoofkantoor in Pretoria, Suid-Afrika.

Die re gering be plan om die vastelyn telekommunikasiesektor te privatiseer gedurende die la aste drie maan de van 2002. Die Tweed e Netwerkoperateur (TNO) is nog nie gefinaliseer nie. Wanner die lisensie goedgekeur is, sal kli " ente kan kies matter operat eur hulle wil gebruik. ABC se Aanvanklike Open bare Aan bod (AOA) word ook binnekort verlag. Dit beteken dat ABC Beperk nie net voorbereid moet wees vir kompetisie nie, maar dit moet nou ook 'n aantreklik beleggingsgeleentheid word. ABC Beperk het reeds R 34 biljoen span deer aan die opgradering en uitbreiding van die netwerk met die jong ste tegnologie.

Die organisasie het ook sy struktuur vera nder en het nuwe produkte en dienste vir die mark ontwikkel. Met die tegnologiese basis reeds gevestig en nuwe produkte en dienste wat ontwikkel word, hang die susses van die organisasie af van die werknemers wat 'n w^ereldklas dies moet lewer aan ABC Beperk se kli " ente. Dit is daar om belangrik dat die organisasie hooks gemotiveerde en tevrede werknemers het. Hierdie verlag ondersoek die vlak van werkstevredenheid van ABC Beperk se werknemers.

Die meting van 'n werknemer se werkstevredenheid, is 'n komplekse sames telling van verskeie werksveranderlikes. Daar is al baie studies gedoen oor die verhouding tussen werkstevredenheid en ander organisasieveranderlikes. Een van hierdie veranderlikes, is motivering. Vir die doeleindes van hierdie studie, word motivering gebruik as kernveranderlike wat werkstevredenheid bepaal. Heel wat navorsing is gedoen in die veld van werksmotivering en -tevredenheid en verskeie teoretici het dit pro beer verduidelik deur mid del van severe behoeftes, belangstellings en waar des (Joubert, 2000). Hierdie teorie"e kan in twee groep e verde el word: a.

Inhoudteorie"e (behoeftes-geri g). b. Prosesteorie"e. Inhoud- of behoeftegerigte teorie"e beklemtoon die mens like behoeftes of faktore in 'n person wat hom dry en / of gedrag laat stop. Hierdie teorie"e sien motivering as 'n fenomeen wat prim^er binne 'n individu govind word. Prosesteorie"e het 'n meer dinamiese signing van motivering. Hierdie teorie"e fokus op die aanvanklike energie van gedrag tot gedragsalternatiewe tot die uiteindelike aks ies van die individu.

Die strategie om werknemers te motiveer hang af van die motiveringsteorie wat as basis gebruik word. Daar is 'n oneindige aantal moontlike strategie"e wat aangewend kan word. Die sleutel tot die motivering van werknemers is egter om te weet wat elke werknemer motiveer en dan om 'n motiveringsprogram te on twerp wat op daar die criteria gebaseer is. 'n Opname is gedoen deur gebruik te maak van 'n vraelys om te bepaal hoe die werknemers voel. Hierdie opnamemetode is genies omd at dit die mees doeltreffende manier is om te bepaal hoe mense oor 'n maak voel. Dit is ook die mees kost e-effektiewe manier. Die opname is gebaseer op 'n vraelys (Addendum A), opgestel deur 'n sielkundestudent, Paul E. Spector van die Universiteit van Suid-Florida (Spector, 1999).

Die volgende faktore is in die vraelys ingesluit: a. Salaris b. Bevordering c. Toesighouding d.

Byvoordele e. Voorwaardelike vergoeding f. Werksomstandighede g. Kollega's h. Aard van werk i. Kommunikasie Die studie is beperk tot 'n steekproefgroep van 45 werknemers.

Dit impliseer dat die resultate van die opname nie noodwendig die vlak van werkstevredenheid van die 40 000-werknemer organisasie weer spie " el nie. Daar by kon die antwoorde van die steekproefgroep beinvloed ge wees het deur hoe hulle gev oel het op die spesifieke tydstip toe die vraelys inge vul is. Die resultate is e ers apart ont leed in elk van die motiveringsdimensies wat ondersoek is. Daar na is gevolgtrekkings en aanbevelings gemaak vir elk van die dimensies. 'n Opsommingsontleding is toe gedoen en gevolgtrekkings en aanbevelings is gemaak op die oorhoofse vlak van werkstevredenheid binne die organisasie. Die resultate dui die volgende aan: a.

70% van die werknemers is matig tevrede met die salaris wat hulle ontvang, 15% is baie tevrede en 15% is ontevrede. b. Nie een van die werknemers is baie tevrede met sy / haar kanse op bevordering nie. 47% van die werknemers is ontevrede met die kanse dat hulle bevorder sal word and 54% is matig tevrede met hulle kanse op bevordering. c. Die toesighouding in die organisasie b lyk baie goed te wees aangesien die groot ste meerderheid (54%) baie tevrede met die toesighouding is, terwyl 31% matig tevrede is en slegs 15% is ontevrede met hulle toesighouers. d. Slegs 8% van die werknemers is ontevrede met hulle byvoordele wat hulle van die maatskappy ontvang en 23% is baie tevrede met hulle byvoordele. e. 77% van die werknemers is matig tevrede met hulle voorwaardelike vergoeding.

Die res (23%) is ontevrede en nie 'n enkele werknemer is baie tevrede met sy / haar voorwaardelike vergoeding nie. f. 54% van die werknemers is matig tevrede met hulle werksomstandighede, 31% is baie tevrede en 15% is ontevrede met hulle werksomstandighede. g. 77% is baie tevrede met hulle kollega's, die res (23%) is matig tevrede met die mense wa armee hulle saam werk en nie een was ontevrede nie. h. Nie een van die werknemers is ongelukkig oor die aard van die werk wat hulle ver rig nie. By na die he lfte van die werknemers (46%) is baie gelukkig met die time werk en 54% was matig gelukkig. i. Slegs 15% van die werknemers is baie gelukkig met die kommunikasie binne die organisasie, terwyl 54% slegs matig gelukkig is en 31% ongelukkig is met die kommunikasie in die organisasie.

Gebaseer op die opsommende sy fers, het al die werknemers tussen 72 en 144 punt e bepaal. Dit beteken dat alle werknemers matig gelukkig is met hulle werk. Die opsommende meting is waarskynlik nie 'n goeie aanduiding van die vlak van werkstevredenheid oor die hele organisasie nie aangesien werkstevredenheid 'n multi-dimension ele kon sep is. 'n Werknemer mag byvoorbeeld met een of meer aspekte van sy / haar werk tevrede wees en ontevrede wees met ander aspekte. Ongelukkig is daar nie 'n enkele korrekte manier om mense te bestuur nie aangesien alle werknemers verskillende behoeftes, agtergrond en verwagtings het. 'n Goeie omgewing is egter 'n goeie begin punt om werkstevredenheid te bevorder. 'n Organisasie kan nie alle werknemers tevrede hou nie aangesien praktyke wat een werknemer tevrede maak, 'n ander rede gee om te be dank.

Nad at die perfekte omgewing binne ABC Beperk ge skep is, was die aanbevelings dat bestuur die kenmerke wat hulle in die ideale werknemer wil h^e, identifiseer en dan hulle werknemerbehoudings- en werwingsstrategie random sulk e werknemers struktureer. 3 Background 3.1 Introduction Communication is an extremely important industry in any country. In South Africa, the telecommunication sector comprises Internet Service Providers (ISPs), Value Added Networks (VANs), the cellular and a single fixed-line service provider (called ABC Ltd in this report). ABC Ltd provides short and long distance fixed-line telecommunication services to residential and corporate customers.

The organisation has numerous regional offices within South Africa. In 1999, the staff complement of ABC Ltd was 61 237. ABC Ltd has reduced its staff complement by 21 547, or about a third, to 39 690 in 3 years by means of severance packages, retrenchments and out-sourcing of non-core business. It is anticipated that the organisation will reduce staff numbers even more until the organisation has approximately 25000-30000 employees. In South Africa, the governmental department of Posts and Telecommunications operated telecommunication services until 1991. In October 1991, postal operations were separated from telecommunications, with telecommunications becoming the business of ABC Ltd.

In this era, ABC Ltd was a private company with a sole shareholding consisting of the South African government. In March 1997, the South African government decided to sell off part of ABC Ltd. A consortium formed by two international companies won the bid for a 30% stake in ABC Ltd. Government still had a 67% shareholding while a black empowerment organisation has a 3% shareholding in ABC Ltd. ABC Ltd was authorized to keep a monopoly on fixed-line services for at least five years from 1997. In May 1998, ABC Ltd joined the World Partners Association, a premier alliance of carriers offering global communication services to multi-national corporations worldwide.

This means that government will be offering a license to a Second Network Operator (SNO) giving customers a choice on which operator it wants to use. Added to this, ABC Ltd's Initial Public Offering (IPO) is expected soon. This means that ABC Ltd need not only prepare itself for competition, but also needs to become an attractive investment opportunity. The organisation has already come a long way in transforming the company into a world-class organisation. The culture it is trying to develop is much more progressed than the old governmental culture. With the technology base already in place and new products and services being developed, the success of the company now lies in its employees, because when telecom companies are in competition with one another, all use similar technologies and can have similar products, but the aspect that makes a difference between them, is customer service (Collins 2001: 14).

This lies solely in the hands of its satisfied or dissatisfied employees to offer world-class service, so that the customers choose ABC Ltd as their choice of operator. 3.2 Aim The aim of this report is to describe the level of job satisfaction of the employees in ABC Ltd and to recommend ways that management can create a workforce that is highly motivated and that enjoys its work. The results of this research will identify the aspects that need attention in ABC Ltd, as well as possible solutions. 4 Theory 4.1 Introduction Job satisfaction is the degree to which an individual feels positively or negatively about his job. In broad terms job satisfaction may be defined as an individual's general attitude towards his job (Hodson, 1991). An individual's job is more than just the activities of shifting papers, serving customers or driving a bakke or truck around (Robbins, 1998: 151).

Jobs require interaction and mingling with co-workers and bosses, obeying rules and policies of the organization, meeting performance standards and living with working conditions that are often not ideal or suitable to the individuals nature. Therefore an employee's assessment of how satisfied or dissatisfied he is with his job is a complex summation of discrete job variables. Thousands of studies have examined the relationship between job satisfaction and other organisational variables. Motivation is defined in many different ways. Motivation is the forces acting on or within a person that causes that person to behave in a specific, goal directed manner (Steers, 1983). Motivation is the psychological process that gives behaviour purpose and direction (Kreitner, 1995).

Motivation is a predisposition to behave in a purposive manner to achieve specific, unmet needs (Buford, Bedeian, Lindner 1995). Motivation is an internal drive to satisfy an unsatisfied need (Higgins, 1994). Motivation is not a personal trait as commonly believed, but it is rather the result of the interaction of the individual and the situation. Motivation varies between individuals and within individuals at different times. Studies have revealed a positive relationship between motivation and job satisfaction (Joubert, 2000).

This means that managers can potentially enhance employee's job satisfaction through various attempts to increase motivation. Several research studies have been done in the field of work motivation and satisfaction and many psychologists have tried to explain it in terms of certain needs, interests and values (Joubert, 2000). Process Theories 4.2 Content Theories Content or need-based theories emphasize specific human needs or factors within a person that energize, direct and / or stop behaviour. The theory explains motivation as a phenomenon primarily occurring intrinsically or within an individual. 4.2. 1 Maslow's Hierarchy of needs Abraham Maslow was a humanistic psychologist.

He believed that humans strive for an upper level of capabilities and they seek the frontiers of creativity, the highest reaches of consciousness and wisdom. This has been labelled "fully functioning person", "healthy personality", or as Maslow calls this level, "self-actualizing person" (Maslow, 1968). Maslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of needs exist.

These include needs for understanding, aesthetic appreciation and purely spiritual needs. In the levels of the five basic needs, the person does not feel the second need until the demands of the first have been satisfied, nor the third until the second has been satisfied, and so on. Maslow's basic needs are as follows: 4.2. 1.1 Physiological Needs These are biological needs. They consist of needs for oxygen, food, water and a relatively constant body temperature.

They are the strongest needs, because if a person were deprived of all needs, the physiological ones would come first in the person's search for satisfaction. 4.2. 1.2 Safety Needs When all physiological needs are satisfied and are no longer controlling thoughts and behaviours, the needs for security can become active. Adults have little awareness of their security needs except in times of emergency or periods of disorganization in the social structure (such as widespread rioting). Children often display the signs of insecurity and the need to be safe. 4.2. 1.3 Needs of Love and Affection When the needs for safety and for physiological well-being are satisfied, the next class of needs for love and affection can emerge. Maslow states that people seek to overcome feelings of loneliness and alienation.

This involves both giving and receiving love, affection and the sense of belonging. 4.2. 1.4 Needs for Esteem When the first three classes of needs are satisfied, the needs for esteem can become dominant. These involve needs for both self-esteem and for the esteem a person gets from others. Humans have a need for a stable, firmly based, high level of self-respect, and respect from others. When these needs are satisfied, the person feels self-confident and valuable as a person in the world. When these needs are frustrated, the person feels inferior, weak, helpless and worthless. 4.2.

1.5 Needs for Self-Actualisation When all of the foregoing needs are satisfied, only then are the needs for self-actualisation activated. Maslow describes self-actualisation as a person's need to be and do that which the person was "born to do". Example, A musician must make music, an artist must paint, and a poet must write. These needs make themselves felt in signs of restlessness. The person feels on edge, tense, lacking something. If a person is hungry, unsafe, not loved or accepted, or lacking self-esteem, it is very easy to know what the person is restless about.

It is not always clear what a person wants when there is a need for self-actualisation. The hierarchic theory is often represented as a pyramid as shown in Figure 1, with the larger, lower levels representing the lower needs and the upper point representing the need for self-actualisation. Maslow believes that the only reason that people would not move well in direction of self-actualisation is because of hindrances placed in their way by society e.g. lack of education. Figure 1 - Malsow's Hierarchy Model 4.2. 2 McClelland's Theory of Needs David McClelland (Braden, 2000 a: 1) proposed that an individual's specific needs are acquired over time and are shaped by life experiences.

Most of these needs can be classed as either a need for achievement, affiliation or power. A person's motivation and effectiveness in certain job functions are influenced by these three needs. McClelland's theory is sometimes referred to as the three-need theory or as the learned needs theory (Braden, 2000 a: 1). 4.2. 2.1 Need for Achievement People with a high need for achievement seek to excel and tend to avoid both low-risk and high-risk situations.

Achievers avoid low-risk situations, because the easily attained success is not a genuine achievement. Employees with a high need for achievement prefer work that has a moderate probability of success, ideally a 50% chance. Achievers need regular feedback in order to monitor the progress of their achievements. They prefer either to work alone or with other high achievers (Braden, 2000 a: 2). 4.2. 2.2 Need for Affiliation Those with a high need for affiliation need harmonious relationships with other people and need to feel accepted by other people. They tend to conform to the norms of their work group.

Employees with a high need for affiliation prefer work that provides significant personal interaction. They perform well in customer service and client interaction situations (Braden, 2000 a: 2). 4.2. 2.3 Need for Power The need for power can be one of two types: - personal and institutional. Those who need personal power want to direct others and this need is often perceived as undesirable. People who need institutional power (also known as social power) want to organize the efforts of others to further the goals of the organization. Managers with a high need for institutional power tend to be more effective than those with a high need for personal power (Braden, 2000 a: 3). 4.2.

3 Herzberg Factor (Motivator - Hygiene) Theory Herzberg (Zillmann, 2000) found separate and distinct clusters of factors associated with job satisfaction and dissatisfaction. One set of factors (motivators) could make people feel good about their jobs while an entirely different set of things (hygiene factors) can make them dissatisfied. The motivators are factors such as opportunity for recognition, advancement, achievement and responsibility, as shown in Figure 2. These motivating factors are related to the work itself and can increase employee performance. In addition to this, Herzberg also claims that "hygiene factors such as status, working conditions, company policy and administration, money, supervision, interpersonal relations, and security do not motivate individuals, but rather prevent job dissatisfaction" (Zillmann, 2000).

Figure 2 - Herzberg's Model Herzberg believes that the opposite of job satisfaction is not job dissatisfaction, but rather no job satisfaction, and similarly, the opposite of job dissatisfaction is not job satisfaction, but no dissatisfaction (Herzberg 1968). 4.2. 4 Theory X and Theory Y Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book: 'The human side of enterprise'. Theory X and theory Y are still referred to commonly in the field of management and motivation, and whilst more recent studies have questioned the rigidity of the model, Mcgregor's X-Y theory remains a valid basic principle from which to develop positive management style and techniques. Mcgregor maintained that there are two fundamental approaches to managing people.

Both theories are discussed in more detail below. 4.2. 4.1 Theory X Theory X is based on an authoritarian management style. Mcgregor believed that the average employee dislikes work and will avoid it when he / she can. Therefore most people must be forced with the threat of punishment to work towards organisational objectives. He also believed that the average employee prefers to be directed to avoid responsibility, is relatively unambitious and wants security above all else. 4.2. 4.2 Theory Y Theory Y is based on a participative management style where effort in work is as natural as work and play.

People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population.

In industry the intellectual potential of the average person is only partly utilised. 4.2. 5 ERG Theory Alderfer (Robbins, 1998) has reworked Maslow's need hierarchy. As mentioned previously, Maslow believed that the lower-order needs have to satisfied before an individual will be motivated to move on to behaviours that satisfy higher-order needs. Alderfer does not share that belief in the hierarchy.

He believe that the need for socialization would be more important to most people than the need for growth (Braden, 2000). Alderfer addressed this issue by reducing the number of levels to three as shown in Figure 3. His revised need hierarchy theory argues that there are three groups of core needs: existence, relatedness and growth, hence the label ERG. The ERG need theory can be mapped to those of Maslow's theory as follows (Internet Center for Management and Business Administration 2002): a. Existence: Physiological and safety needs b. Relatedness: Social and external esteem needs c.

Growth: Self-actualisation and internal esteem needs Like Maslow's model, the ERG theory is hierarchical - existence needs have priority over relatedness needs, which have priority over growth. Despite the similarities, there are distinct differences in the two theories. In addition to the reduction in the number of levels, the ERG theory differs from Maslow's in the following three ways (Internet Center for Management and Business Administration 2002): a. Unlike Maslow's hierarchy, the ERG theory allows for different levels of needs to be pursued simultaneously. b. The ERG theory allows the order of the needs be different for different people. c. The ERG theory acknowledges that if higher levels need remains unfulfilled, the person may regress to lower level needs that appear easier to satisfy.

This is known as the frustration-regression principle. While the ERG theory therefore presents a model of progressive needs, the hierarchical aspect is not rigid. This flexibility allows the ERG theory to account for a wider range of observed behaviours. For example, it can explain the "starving artist" who may place growth needs above existence ones. Figure 3 - Alderfer's Hierarchy 4.3 Process Theories Process theories take a more dynamic view of motivation than need theories. These theories focus on the initial energy of behaviour through to behaviour alternatives and then to actual efforts by the individual. 4.3.

1 Vroom's Expectancy Theory Victor Vroom (Vroom, 1964) formulated a mathematical model of an expectancy theory, which can be summarised as follows: The strength of a tendency to act in a certain way depends on the strength of expectancy that the act will be followed by a given consequence (or outcome) and on the value or attractiveness of that consequence (or outcome) to the actor (Lawler, 1973: 45). In other words according to the expectancy theory an individual is motivated to exert a high level of effort when he believes that his effort will lead to a good performance appraisal. A good appraisal will lead to organizational rewards like bonus, a salary increase or promotion and these rewards will satisfy employees' personal goals. The theory focuses on three relationships: 4.3. 1.1 Expectancy effort-performance relationship According to Vroom's terminology, expectancy represents an individual's belief that a particular level of performance will follow a particular degree of effort.

In other words, it is an effort - performance expectation. Expectancy takes the form of subjective probabilities. An individual's expectancy perception depend on his / her self-esteem, self-efficacy, previous success at a task, help received, information necessary to complete the task and the material and equipment to work with (Kreitner Kinicki, 2001: 247). 4.3. 1.2 Instrumentality performance-rewards relationship Instrumentality represents a person's belief that a particular outcome is contingent on accomplishing a specific level of performance. Performance is instrumental when it leads to something else.

For example, passing the exams is instrumental to graduating from university (Kreitner, et al, 2001: 248). 4.3. 1.3 Valence rewards-personal goal relationship Valence refers to the positive or negative value people place on outcomes. Valence mirrors our personal preference (Churchill, 1981). For example, most employees have a positive valence for receiving additional money or recognition.

An outcome's valence depends on an individual's needs. 4.3. 2 Equity Theory Equity Theory is a model of motivation that explains how people strive for fairness and justice in social exchanges or give and take relationships (Kreitner, et al 2001: 238). Equity Theory is based on cognitive dissonance theory developed by social psychologist Leon Festinger in the 1950's. According to Festinger's theory, people are motivated to maintain consistency between their beliefs and their behavior. Perceived inconsistencies create cognitive dissonance, which, in turn, motivates corrective action.

(Festinger, 1957) Psychologist J Stacy Adams pioneered application of the equity principle to the workplace. Adam's equity theory of motivation is an awareness of key components of the individual-organisation exchange relationship. This relationship is pivotal in the formation of employees' perceptions of equity and inequity (Kreitner, et al 2001: 239) There are two primary components involved in the employee-employer exchange, i.e. inputs and outcomes (Kreitner, et al 2001: 239) An employee's inputs, are what he or she brings to the situation and expects a just return for, like time, education, experience, skills, and effort. On the outcome side of the exchange, the organisation provides outputs to the employee such as pay, fringe benefits, bonuses, raises, promotions and recognition.

Equity theory asserts that employees are motivated when they perceive that they are being treated in a manner that is equal to the manner in which all other employees are being treated (Braden 2000 c: 1). In other words, Equity Theory in the workplace deals with the way people compare the value of themselves to others in similar work situations, based on their inputs and outputs as shown in Figure 4. Figure 4 - Equity Theory Model When the output to input ratio is viewed as equivalent, equity is perceived as attained and there is not much motivation to change the situation. However, inequalities occur when the output to input ratio is not equivalent to the comparison person. The inequalities motivate the employee to try to achieve equality. When an employee feels there is inequality, they tend to try and reduce the inequality.

Employees attempt to reduce inequalities by increasing or decreasing their inputs and / or outputs, distorting their or the comparison person's inputs or outputs, or by just changing the comparison person. In this way, inequalities could impact negatively or positively on employees' motivation, performance and satisfaction, depending on the individual's evaluation of equity and fairness of their job inputs and outcomes relative to those of other members in the organisation. This is why implementing the Equity Theory of motivation is often a problem for employers, because of the difficulty in defining exactly what each individual perceives to be equal. Some believe equal treatment means treating every employee in exactly the same way, while others believe that equal treatment must be based on the situation so that each employee's treatment should be based on his / her unique situation. Example: is it fair that all employees get an across the board raise of 5 percent, or is it fair that high performers get a higher percentage increase than those that are low performers. No matter how fair employers think they are, each employee's perception of equity is what eventually counts. 4.3.

3 Goal Setting Theory A goal can be defined as a desirable objective that an individual wants achieved. Edwin Locke's goal-setting theory states that specific and difficult goals lead to higher performance (Conkright, 1998). Locke and his associates formulated an instructive model for the Goal Setting Theory as shown in Figure 5. Figure 5: Locke's Model of Goal Setting According to Locke's model (Locke, 1968) goal setting has four motivational mechanisms: a. Goals direct attention: Goals that are personally meaningful tend to focus attention on what is relevant and important. b. Goals regulate effort: Not only do goals make people selectively perceptive, they also motivate them to act.

Generally the level of effort expended is proportionate to the difficulty of the goals. c. Goals increase persistence: Persistent people tend to see obstacles as a challenge to be overcome rather than as reasons to fail. A difficult goal that is important to an individual is a constant reminder to keep exerting effort in the appropriate direction. d. Goals foster strategies and action plans: Goals can help because they encourage people to develop strategies and action plans that enable them to achieve their goals (Conkright, 1998). Reviews of many goal-setting studies reveal the following: a.

Difficult goals lead to higher performance. b. Specific, difficult goals lead to higher performance for simple rather than complex tasks. c. Feedback enhances the effect of specific, difficult goals. d. Participative goals, assigned goals and self-set goals are equally effective. e.

Good communication and monetary incentives affect goal-setting outcomes. 4.3. 4 Reinforcement Theory Reinforcement Theory can be described in a single statement, "Consequences influence behaviour" (Hill, 1985). It works in a variety of situations and it can be simply applied, and it has just a few basic ideas. It means that people do things because they know other things will follow.

Therefore, depending upon the type of consequence that follows, people will produce some behaviours and avoid others. 4.3. 4.1 Principles of Reinforcement There are three basic principles of this theory. These are the Rules of Consequences. The three rules describe the logical outcomes that typically occur after consequences (Skinner, 1953). a. Consequences that give rewards increase a behaviour. b. Consequences that give punishments decrease a behaviour. c.

Consequences that give neither rewards nor punishments extinguish behaviour. These rules provide an excellent blueprint for influence. If behaviour needs to be increased (make it more frequent, more intense, more likely), when the behaviour is shown, provide a consequence of reward. If behaviour needs to be decreased (make it less frequent, less intense, less likely), when the behaviour is shown, provide a consequence of punishment. Finally, if a behaviour needs to be extinguished (disappear, fall out of the behavioural repertoire), when the behaviour is shown, provide no consequence (ignore the behaviour) (Skinner 1968). The main point of this theory is that consequences influence behaviour.

Rewarding consequences increase behaviour. Punishing consequences decrease behaviour. No consequences extinguish a behaviour. This process is illustrated in Figure 6.

Figure 6: Process of Reinforcement Theory 4.4 Conclusion Using all the above-mentioned theories to motivate employees is very complex, because the strategy depends on which motivation theories are used as bases. There are an infinite number of possible strategies that could be used. However, the key to motivating employees is to know what motivates each employee and then to design a motivation program based on those criteria. 5 Research Methodology 5.1 Introduction Extensive research has already been done in the field of motivation and job satisfaction. Most of the data gathered for human behaviour research has been gathered by means of surveys.

The survey method will also be used for this investigation. 5.2 A description of the method of study A field survey will be done by means of a questionnaire made up of questions assessing how employees feel. A field survey was chosen because it provides an effective way to find out how people feel about issues. It is also the most cost efficient way of obtaining the required information.

Researchers at the University of Minnesota, USA, concluded that there are 20 different dimensions underlying job satisfaction. Questioning employees on all of these dimensions was not possible due to limited time available to respondents. The questionnaire by Paul Spector was used in this research as it covers Frederick Herzberg's two dimensions of job satisfaction, i.e. motivation and "hygiene". The hygiene issues that it covers are supervision, salary, interpersonal relations / co -workers and working conditions. The motivation issues it covers are recognition, achievement, the work itself, responsibility and advancement. The questionnaire appears in Appendix A. 5.3 Method of data collection Measuring job satisfaction is rather difficult, because sometimes an individual can be relatively satisfied with one aspect of his job and dissatisfied with some other aspects.

There are two approaches found in the literature on measuring job satisfaction, namely a single global rating and a summation score method. Both methods will be used in this report. The former method is nothing more than asking individuals to respond to one question such as "How satisfied are you with your job?" The other approach, which is used in this report, is a summation of job facets. It identifies key elements in a job and asks for the employee's feeling about each. This survey was based on a questionnaire (Appendix A) by a psychological student, Paul E Spector, from the University of South Florida. The following factors were included in the Job Satisfaction Survey questionnaire: j.

Pay k. Promotion l. Supervision m. Fringe Benefits n. Contingent Rewards o.

Operating conditions p. Co-workers q. Nature of Work r. Communication These factors were rated on a standardized scale and the scores added up to determine an overall job satisfaction score. 5.4 Research Instrument The Job Satisfaction Survey has some of its items written in each direction - positive and negative.

Scores on each of the nine facets (sub scales), based on 4 items each, can range from 4 to 24; while scores for total job satisfaction, based on the sum of all 36 items, can range from 36 to 216. Each item is scored from 1 to 6. High scores on the scale represent job satisfaction, so the scores on the negatively worded items must be reversed before summing with the positively worded into facet or total scores. A score of 6 representing strongest agreement with a negatively worded item is considered equivalent to a score of 1 representing strongest disagreement on a positively worded item, allowing them to be combined meaningfully.

Below is the step-by-step procedure for calculating scores. a. Responses to the items should be numbered from 1 representing strongest disagreement to 6 representing strongest agreement with each. b. The negatively worded items should be reverse scored. Below are the reversals for the original item score in the left column and reversed item score in the right. The rightmost values should be substituted for the leftmost. This can also be accomplished by subtracting the original values for the internal items from 7.

Table 1 - Score breakdown for negatively worded items c. Note the reversals are NOT every other one. d. Sum responses to 4 items for each facet score and all items for total score after the reversals from step 2. Items go into the sub-scales as shown in the table. Table 2 - Sub-scale Breakdown 5.5 Conclusion The study was limited to a sample group consisting of only 45 employees.

6 Interpretation and Analysis of Results 6.1 Introduction The results obtained were first analysed separately in each of the motivation dimensions researched. Conclusions and recommendations were made for each dimension. Thereafter, a summation analysis was made and conclusions and recommendations were then made on the overall level of job satisfaction within the organization. 6.1. 1 Pay The old adage "you get what you pay for" tends to be true when it comes to staff members (Syp tak, Maryland & Ulmer, 1999: 4). Salary is not always a motivator to employees, but they do want to be paid fairly. If individuals believe they are not compensated well, they will be unhappy working for the organisation. 6.1.

1.1 Analysis of Pay Analysing the pie chart of pay satisfaction in Figure 7, one can deduce that 70% of the employees are moderately satisfied with the pay they are receiving, 15% are very satisfied and 15% are unsatisfied. Figure 7- Pie Chart of Pay Satisfaction 6.1. 1.2 Recommendations The following recommendations are made to improve the current situation: a. Consult salary surveys to see whether the salaries offered by the company are comparable to those of other telecommunications companies. b.

In addition, the company should make sure that it has clear policies related to salaries, raises and bonuses, so that all employees are treated equitably. 6.1. 2 Promotion In many industrial and commercial organisations, success is often externally signalled by promotion (Gruneberg, 1979). To the employee, promotion is more than just recognition of achievement; it is also an increase in financial reward and status. It is therefore a good way to reward loyalty and performance. It is very difficult to motivate an employee if there is no room for advancement. 6.1. 2.1 Analysis of Promotion An analysis of Figure 8, the Pie Chart for Promotion, indicates that no employees are very satisfied with his / her chances of promotion.

It also shows that a large percentage (46%) of the employees are actually unsatisfied with the chance of them receiving a promotion and 54% are moderately satisfied with their chances of promotion. Figure 8 - Pie Chart of Promotion Satisfaction 6.1. 2.2 Recommendations The majority of the employees are not satisfied with the probability of being promoted. Plateauing seems to be one of the organisation's problems. To overcome this problem, the following recommendations are made: a. If there is not an open position to which to promote a valuable employee, the company should consider giving him or her a new title that reflects the level of work he or she has achieved. b.

When feasible, support employees by allowing them to pursue further education, which will make them more valuable to the organisation and more fulfilled professionally. 6.1. 3 Supervision Employees are more satisfied when their managers are good leaders. This includes motivating employees to do a good job, striving for excellence or just taking action (Bravendam, 2000: 2). 6.1. 3.1 Analysis of Supervision The supervision in the organisation seems to be very good because a large majority (54%) of the employees are very satisfied with their supervisors, while 31% are moderately satisfied and only 15% are unsatisfied with their supervisors. Figure 9 - Pie Chart of Supervision Satisfaction 6.1. 3.2 Recommendations It is noticeable that the majority of the employees are highly satisfied with their supervisors or managers.

However, there are a few who are unsatisfied or only moderately satisfied. The following recommendations are made to improve the current situation: a. To decrease dissatisfaction in this area, management must begin by making wise decisions when they appoint someone to the role of supervisor. They should be aware that good employees do not always make good supervisors.

The role of supervisor is extremely difficult. It requires leadership skills and the ability to treat all employees fairly. b. Supervisors should be taught to use positive feedback whenever possible and should establish a set means of employee evaluation and feedback so that no one feels singled out. 6.1. 4 Fringe Benefits The Annual Job Satisfaction Survey (2000) by Kevin T. Higgins concluded with a question on what their companies can do (besides raising salaries) to increase employee satisfaction. The most repeated answer was better fringe benefits. 6.1. 4.1 Analysis of Fringe Benefits As seen in Figure 10, only 8% of the employees are unsatisfied with their fringe benefits they receive from the company compare to 69% that are moderately satisfied and 23% that are very satisfied with their fringe benefits.

Figure 10 - Pie Chart of Fringe Benefits Satisfaction 6.1. 4.2 Recommendations Since the majority of the employees questioned are only moderately satisfied with their fringe benefits, the following recommendation is made to improve the current situation: a. Consult fringe benefit surveys to see whether the fringe benefits offered by the company are comparable to those of other companies. 6.1. 5 Contingent Rewards Individuals at all levels of the organization want to be recognized for their achievements in their jobs. Employees will feel more satisfied if they experience that they are rewarded fairly for the work they do. 6.1. 5.1 Analysis of Contingent Rewards The Pie chart in Figure 11 is reason for concern, because 77% of the employees are only moderately satisfied with their contingent rewards.

The rest (23%) are unsatisfied and not a single employee is very satisfied with his contingent rewards. Figure 11 - Pie Chart of Contingency Rewards Satisfaction 6.1. 5.2 Recommendations The results indicate that the majority of the employees are only moderately satisfied with their contingent rewards. None are very satisfied. Employees should be given recognition and sincere praise for jobs well done, even if the success is not monumental. b.

Acknowledgement of good work should be given immediately. c. The company should make sure that rewards given are for genuine contributions to the organization. d. There should be consistency in the organization's reward policies. e. A formal recognition program, such as "employee of the month" could be implemented. f. Instead of money, benefits and perks should also be used as rewards. 6.1. 6 Operating Conditions The environment in which people work has a tremendous effect on their level of pride in the company and in the work they are doing. 6.1.

6.1 Analysis of Operating Conditions Analysing the Pie chart on Operating Conditions Satisfaction in Figure 12, it is clear that 54% of the employees are moderately satisfied with their operating conditions, 31% are very satisfied and 15% are unsatisfied with their operating conditions. Figure 12 - Pie Chart of Operating Conditions Satisfaction 6.1. 6.2 Recommendations The following recommendations are made to improve the current situation: a. Limited resources such as too few photocopiers and printers could increase dissatisfaction in a job. Bottlenecks in the working environment should be overcome or solved by improving efficiency. a. To decrease frustration, unnecessary policies and procedures should be eliminated or streamlined to improve efficiency and decrease dissatisfaction. b.

The company should ensure the policies and procedures are fair and apply equally to all. c. Updating the company's policy manual (with staff input) could be considered. d. The company's policies could be compared to those of similar companies to see whether particular policies are unreasonably strict or whether some penalties are too harsh. e. The company should attempt to keep equipment and facilities up to date. Even a good office chair can make a world of difference to an individual's psyche. f. The company should avoid overcrowding and should allow each employee his or her own personal space. 6.1.

7 Co-workers People work with others to achieve common goals. Whether the organisation is for profit, or non-profit, more can be accomplished with the interaction and assistance from other people. Organisations that maintain constructive interpersonal relationships benefit financially as well as culturally (Bavendam Research Incorporated, 1999). 6.1. 7.1 Analysis of Co-worker Results This is by far the most impressive sector of the employees' level of job satisfaction. 77% of the employees are very satisfied with their co-workers, the remaining 23% are moderately satisfied with their co-workers and with no one unsatisfied. Figure 13 - Pie Chart of Co-Workers Satisfaction 6.1.

7.2 Recommendations Part of the satisfaction of being employed is the social contact it brings. To many people, work also fills the need for social interaction. It seems as if this organisation has very friendly and supportive co-workers because the majority of the employees are highly satisfied with this facet of their job. However, there are still 23% that are only moderately satisfied, implying that there is still some work that needs to be done.

The recommendation is that management allow employees a reasonable amount of time for socialization. This will help them develop a sense of camaraderie and teamwork and hopefully convert the 23% to the very satisfied group. 6.1. 8 Nature of Work Perhaps most important to employee motivation is helping individuals believe that the work they are doing is important and that their tasks are meaningful. 6.1. 8.1 Analysis of Nature of Work None of the employees were unhappy about the nature of the work they were doing. Almost half the employees (46%) were very satisfied with the type of work they were doing while 54% were at least moderately satisfied.

Figure 14 - Pie Chart of Nature of Work Satisfaction 6.1. 8.2 Recommendations Even though none of the employees were unsatisfied with the type of work they were doing, there is still 54% that are not yet very satisfied. The following recommendations are suggested: a. Management could emphasize important tasks that may have become ordinary within the organisation. b.

If the employees do not find all their tasks interesting or rewarding, they should at least be made aware of how essential those tasks are to the overall processes that make the organisation succeed. c. To decrease frustration, unnecessary policies and procedures should be eliminated or streamlined to improve efficiency and satisfaction. d. Employees should be given enough freedom and power to carry out their tasks so that they feel they "own" the result. e. As individuals mature in their jobs, opportunities for added responsibility should be provided without simply adding more work. Instead, management could find ways to add challenging and meaningful work, perhaps giving the employee greater freedom and authority as well. f. Management could ensure that employees are placed in positions that use their talents and do not set them up for failure. g.

Clear, achievable goals and standards for each position should be set, and employees should know what those goals and standards are. h. Individuals should receive regular, timely feedback on how they are doing and should feel they are being adequately challenged in their jobs. i. Individuals should not be overloaded with challenges that are too difficult or impossible, as that will be paralyzing. 6.1. 9 Communication Communication is defined as " the exchange of information between a sender and receiver and the inference of meaning between the individuals involved" (Bowditch & Buono, 1997: 120). Organisations can't exist without communication because managerial decisions and organisational policies are ineffective unless they are understood by those responsible for enacting them (Kreitner, et al, 2001: 479). 6.1.

9.1 Analysis of Communication Only 15% of the employees are very satisfied with the communication within the organisation, while the majority (54%) are only moderately satisfied and 31% are unsatisfied with the communication within the organisation. Figure 15 - Pie Chart of Communication Satisfaction 6.1. 9.2 Recommendations The communication within the company can be improved by considering the following recommendations: a. Management should eliminate unnecessary policies and procedures that slow down and hinders communication between levels and departments. b. Staff feedback should be encouraged and it should be given formally and informally. c. The grapevine is an important form of informal communication.

It should be used by the organisation to achieve its desired results. 6.2 Conclusion and Recommendations Figure 16 - Pie Chart of Overall Job satisfaction Level Based on the summation score, all the employees scored between 72 and 144. This means that all the employees are only moderately satisfied with their jobs as shown in Figure 16. This summation score is not a good indication of the level of job satisfaction across the board in the organisation, because of a belief in the theory that job satisfaction is multi-dimensional. An employee might be satisfied with one or more aspects of the job and dissatisfied with one or more aspects of the job as interpreted in the previous sections.

For ABC Ltd the retention of its skilled staff is a matter of survival when the competition enters the market in the near future. Like the customers, the skilled employees will have a bigger choice in choosing which company they want to work for. Unfortunately, there is no single correct way to manage people because each employee has different needs, backgrounds and expectations. A good place to start is by creating an environment that promotes job satisfaction and counters dissatisfaction.

This is possible by improving on the motivation and hygiene issues discussed and analysed in previous sections. After the perfect or a good environment has been created, it is recommended that the management in ABC LTD identify the qualities that they want in their "ideal" employees and then structure its employee retention and recruitment strategy around it. This will allow them to satisfy and attract the majority of the employees that they would like to retain and recruit, while those that are not satisfied and are willing to resign will be those that most probably do not fit their "ideal" employee profile. 7

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