“Federal Urdu University of Arts, Science & Technology”

RESEARCH PROJECT:

EMPLOYEE’S MOTIVATION”

ASSIGNED BY:

“MISS HINA USMAN”

SUBJECT

“PRODUCTIO OPERATION MANAGEMENT”

PREPARED BY:

MUHAMMAD SOHAIB (Group Leader)

USMAN KHALID

ALI RAZA ABBASI

MAJID MURTAZA

BILAL HUSSAIN

FARHAN ASMAT

NUMAN AHMAD

KALEEM ULALLAH

Chapter No. 01

1.1 Introduction:

The reason to choose the topic is its importance because employee motivation has always been a central problem for leaders and managers. Unmotivated employees are likely to spend little or no effort in their jobs, avoid the workplace as much as possible, and exit the organization if given the opportunity and produce low quality work. On the other hand, employees who feel motivated to work are likely to be persistent, creative and productive, turning out high quality work that they willingly undertake. There has been a lot of research done on motivation by many scholars and new aspects of the issue are explored in every research. Every employee has different ways to become motivated. Employers need to get to know their employees very well and use different tactics to motivate each of them based on their personal wants and needs. The study has focused on the issue that how much monetary and non monetary incentive contributes in the motivation of employees and how employees value one incentive over other.

Habib Bank Limited

1.2 COMPANY INTRODUCTION

HISTORY:

On 25th of August 1941, Habib Bank inaugurated its operations with the bank’s first branch in Bombay with a fixed capital of 25,000 rupees. Impressed by its initial performance, Mohammed Ali Jinnah (the founder of Pakistan) asked the Habib Bank to move its operations to Karachi after the independence of Pakistan. Habib Bank Limited established itself in the Karachi in 1947 and shifted its head office there. Throughout the decades, HBL has held the mantle of a dynamic leader, by adding value to the lives of its customers.

It was HBL that introduced products such as Credit Cards, ATMs, Traveler Cheques, etc., to the Pakistani market. Habib Bank caters to the needs of millions with its quality products & services. Today, Habib Bank is truly the bank of the people, providing its customers convenience and satisfaction all over the world. Habib Bank Plaza, the tallest building in Pakistan, is the proud symbol of HBL’s leadership in Pakistan’s corporate arena.

Government of Pakistan holds 49 % of the shareholding in the bank and Agha Khan Fund for Economic Development (AKFED) holds remaining.

Habib Bank Limited (commonly referred to as "Habib Bank") is the largest bank in Pakistan. An extensive network of 1425 branches in Pakistan and 55 international branches makes the its the largest bank in Pakistan today. headquarters of the bank.

BRANCHES IN PAKISTAN:

Largest number of branches in Pakistan, the main branches are mostly located in the largest commercial cities of Pakistan including;

Karachi,

Lahore,

Islamabad,

Faisalabad,

Multan,

Rawalpindi,

Quetta,

Sialkot,

Peshawar and many others

MISSION:

To be recognized as the leading financial institution of Pakistan and a dynamic international bank in the emerging markets, providing customers with a premium set of innovative products and services, and granting superior value to stakeholders,shareholders and employees.

SERVICES:

Habib Bank offers the following services to the customers:

Commercial Banking

Corporate Banking

Investment Banking

International Group Banking

Retail Banking

Treasury

Islamic Banking (referred to Modaraba)

INTERNET BANKING

Habib Bank refers to its Internet banking to "hblEbank". The service was first set up as the internet was becoming a very popular place to check bank accounts and do payments

and transfers. hblEbank offer the following services;

Statement of Accounts(s)

Single Account Balances

Group Account Balances

Account to Account Transfers

DEPARTMENTS:

Retail Banking

Financial Control & Corporate Planning

Consumer Products

Global Operations

Investment Banking

Asset Remedial Management

Commercial Banking

Global Compliance

International Banking Audit,

BRR & Investigation

Corporate Banking

Global Treasury

Credit Policy

Information Technology

HR & Organization Development

HRM:

HBL is an organization that provides opportunities for its staff to have a challenging and rewarding long-term career. To this end the Human Resource Group (HRG) encourages and motivates its employees to excel in the responsibility that they have in the organization .It believes that creativity and innovation comes from talent, knowledge and experience and it is HBL’s endeavor to provide and maintain an environment which not only nourishes these strengths but also provides opportunities for the staff to have a career which has multidimensional growth opportunities.

In doing so, HRG has been restructuring and redesigning the overall structure of the organization, which includes rationalization, cutting down the decision layers, improvement in staff training and hiring professionals and MBAs at entry-level management.

The overall direction of HRG has been towards nurturing the strengths of the human capital to its maximum with a defining principal to help create a progressive environment and sustain a thorough commitment of our staff towards focused customer service.

HRG therefore recognizes the need to proactively invest in staff training and develop courses on a regular basis. Under the umbrella of its Management and Organization Development Division (MODD) its Management Development Institute (MDI) with its three fully equipped chapters at Karachi, Lahore & Islamabad regularly conducts and outsource technical and personal development courses for its all level of staff enabling them to meet the challenges of the ever-changing business requirements and customer needs. During 2003, 529 courses, workshops, skill development clinics and seminars in the disciplines of Service & Attitude, Market Research & Selling, Management & Communication, Credit & Finance, I.T. & e-Banking, Treasury & Trade Finance, Global/ Domestic Banking Operations and on other diverse subjects were conducted by In / Ex-House professionally skilled, qualified and certified faculty and industry experts for 10233 people of senior / middle line management & staff carving 1334 days training days. There is no budget limit for Training and Education at Habib Bank.

HR Group aims to maintain and further improve the service-oriented culture and to make employment not only satisfying but also enjoyable.

INCENTIVE SYSTEM:

The following is the list of incentives offered at HBL:

HBL has a pay for performance system certain targets are assigned in the beginning of year and reviewed quarterly when employees are told where they stand and how they can improve themselves. If the employees meet the targets they are given increment for the performance like 20% of base salary. These increments vary year to year according to the policies of the bank.

Career planning is an important incentive that is given much importance at the HBL for the purpose different courses, workshops are organized and the bank also bears educational expenses of employees if they want to get more education. When employees get further education they are promoted according to their new level of knowledge. So promotions are not the part of annual general meeting.

Job rotation is another incentive offered at HBL. Job rotations are offered not only to increase the expertise and knowledge of the employees but also not to make them stagnant.

Certain insurance policies are also provided to employees like medical insurance, life insurance. Employees are paid for every treatment they are even send abroad for better treatment. Loans on easy installments are provided to employees for the car, home etc.

The bank offers three regular bonuses. One is annual bonus that varies according to the profitability of the bank and other two bonuses are given on first of Ramadan and on EID-UL-ADHA. These two bonuses are of fixed amount.

Certain rewards are given on the performance of employees these are monetary as well as non monetary rewards like certificates, mobile phones, small gifts etc.

(I) PROBLEM STATEMENT:

There is a need for further research on motivation, therefore goal is to reveal what it is that motivates all employees to perform at their best and achieve optimal business results at all times. The inherent problem that has been identified is that many employers have attempted several different incentive programs to motivate their employees, yet they have not worked for everyone in the company. This is a major problem faced by employers these days, due to the fact that each employer's company is founded on the strength of its employees' performance.

One of the traditional components of management along with planning, organizing, and controlling, is motivating. Many managers do different things for example: contests, ranking of people, plants, shifts, teams, and departments, performance appraisals, performance, production, sales quotas and commission pay. All these systems are implemented in the belief that they drive performance. The problem statement of the research is:

Why same incentives for employees not work for everyone in the company.

To reveal how motivational incentives impact employees to perform at their best and achieve optimal business results all times.

(ii) PURPOSE OF STUDY:

Purpose of my is conducted Descriptive in nature. It is under taken in order to ascertain and be able to describe the characteristics of the variables of interest in a situation. It is also hypothesis testing in nature because we are testing certain relationship as well.

(iii) FOCUS OF STUDY:

The focus of study is employees of Habib Bank limited and data is collected from the different branches of HBL in Islamabad and Rawalpindi. The sample comprised of 45 employees who were administered a short questionnaire during the period of 2 weeks. Each day different branches of the bank were visited and employees were requested to respond the questionnaire comprising 20 questions. Different scales like Likert Scale, Ordinal Scale and Ratio scale were used in questionnaire to analyze the responses from different angles. The questions focused on the variables that were monetary incentives, non- monetary incentives, value of incentive, motivation and performance of employees. Most questions were closed ended but an open ended question was also asked to offer them give some additional comments

(iv) SIGNIFICANCE OF THE STUDY:

Our approach to the issue involved working in two areas first interviewing with employees of the bank and then getting questionnaire filled by them. We visited main branch and sub branches of HBL located in Rawalpindi and Islamabad. Detail of incentive system and other valuable information is mentioned in report and some recommendations are also suggested in end.

(v) OBJECTIVES:

To have a clear understanding of motivation and motivational incentives.

To understand how it can be applied to the bank industry.

To see how effective the application of incentives in a bank is.

To understand the relationship of motivational incentives and performance of employees.

LITERATURE REVIEW

2.1 DEFINITION:

The dictionary of Webster's defines “Motivation as something inside people that drives them to action. This motivation varies in different people. It can also be stated as the willingness to work at a certain level of effort. Motivation emerges in current theories out of needs, values, goals, intentions and expectation. Because motivation comes from managers need to cultivate and direct the motivation that their employees already have.

http://www.motivationnetwork.com (nd)

Motivation comes from within us such as thoughts, beliefs, ambitions, and goals. The people who are most interested in motivation studies are managers of people because they may provide insights into why people perform at work as they do, and as a result provide managers with techniques to improve worker productivity.

www.analytictech.com (nd)

In other words, have certain needs or wants (these terms will be used interchangeably), and this causes to do certain things (behavior), which satisfy those needs (satisfaction), and this can then change which needs/wants are primary allowing to move on to other ones).

Www.analytictech.com (nd)

2.2 MOTIVATIONAL TECHNIQUES:

There are people out there in the workforce that believe they are obligated to do their best at their job simply because that is what is expected from all of us as humans. On the other hand there are those out there that want to only do as much as they can get away with doing. Motivation also leads to higher productivity and profit and that is what we are all looking for in business.

Dr. Gerald Kushel, author and professor emeritus, has stated in his book reaching the Peak Performance Zone, there are several variables involved in motivation. Among them are intensity, durability, context and value (reward).

Motivation intensity has a big part in how hard someone will work for his or her reward. If an employer offers a reward that does not mean a lot to the employee then they will not work for it. Intensity has to do with how strongly the person wants the reward. A person can be highly motivated, mildly motivated or only slightly motivated. The person answers the question “What’s in it for me?” with “Something I want very much,” the performer is considered highly motivated. If the answer is “I can take it or leave it,” that performer is considered only slightly motivated.

Reaching the peak performance Zone, Dr. Gerald Kushel(nd)

Durability has to do with how long lasting the motivation is (duration). Motivation tends to last longer when it is reinforced intermittently rather the consistently. Some how, intermittent rewards are stronger. A person can come to expect the reward rather than see it as a treat, which it is supposed to be. Psychologists have believed this for years. Perhaps it has to do with the uncertainty or the surprise factor of the stimulus.

Context is the time, the place and the way the reward is delivered. Context is partly a matter of the culture of a particular organization.

It all depends on what is perceived as “valued” by the corporate culture. To be de-motivated means that neither the energy nor the commitments are there. Negative reinforcement often proves to be highly de-motivating. In one form or another, these have been used in business settings for a long time. Negative reinforces include such things as taking names, penalties, reprimands, docking or withholding pay, canceling vacations, removing privileges, and showing contempt for or ignoring the performer. De-motivation is worse then no motivation at all.

Positive reinforcement works better. Positive reinforces include such things as recognition, respect, praise, better working conditions, money, paid vacations, fringe benefits, prizes, etc. There are two types of motivators, intrinsic and extrinsic. The word motivation often brings things to mind like money, or special privileges, like the key to the executive washroom. These are extrinsic, meaning external. Someone else is dangling this particular item in front of me as a way of getting to do something. Intrinsic motivators are internal.