The Impact Of Employee Motivation Techniques

Published Date: 02 Nov 2017

The Impact of Employee Motivation Techniques on the Turnover Rate in Telecom Industry

Under Supervision:

Dr. Ashraf Sheta

Prepared by:

Ahmed El Sharkawi

ESLSCA 35-D

Submitted For the Fulfillment of

MIBA Research Project

MAR 2013

Abstract

Within these days and along the huge activities for some specific industries and different cross cultures, a lot of organizations are finding out that retaining their workers becomes very difficult and the rate of the turnover becomes a very crucial problem for any organization seeking for the success these days .Therefore ,it was found that the culture related to the employment is strongly changed and instead of being grow in the organization ,the worker prefer to change the job ,and that for a reason which is seeking the balance of life between the work load and personal life.

The direct and indirect Turnover costs for the companies becomes very high and can affect the organization performance financially. Recruitment, methodologies of selection and training for the new hired worker can be a very high direct cost and that significantly cost a lot of money to build the employee with the required qualification. While the workloads increase, extra expenses such as the overtime or the travel allowances can be included from the indirect costs. But accordingly, these costs may differ from one company to another in which some organization may pay five times the annual employee salary.

Some workers find that they have to move searching for additional financial benefits or even just for the balance of life and that will increase the turnover rate. And if we deeply search for the main reasons of the turnover, we can find some major and common reasons like the labor conditions in the market or the conditions related to the economics which may increase the turnover and it becomes very serious and big problem to be solved by the organization .but fortunately, some of these known reasons can be resolved specially what is related to the working hours and working conditions, the workplace, workload stress and communication type.

A special case appeared here with telecom industries in which the operation is highly aggressive and challenging for the rapid change in the new technologies, the growth in market, challenging infrastructure, production for new products with introducing to the market with the lower cost but with high profit.

To succeed in this industry, organization should deal with rapid market change and react with the market place positively and care about shifting in the market demand and all of these without increasing the cost and therefore, should design new smart products and act with the quality standard required. So, this swift change is fair enough to affect the employee satisfaction and motivation resulted from stress and workload.

It becomes mandatory now to enhance the strategies and take the right steps for keeping your employees aligned .So, organizations have to follow a new way of thinking and what can motivate and satisfy their workers but that is not an easy action and will cost a lot of money and effort .Company should follow new methodologies to insure motivating the employess and keep them with the passion.

List of Figures

List of Tables

List of Abbreviation

Contents

Chapter 1: Introduction

1.1 Problem Statement:

The key of the success or even the failure is almost the employee in different fields and regarding any scale. And as we are communicating with humans not heavy machines, we have to do what will grantee keeping this factor motivated, aligned and having the passion. Otherwise; facing the turn over, a phenomenon which is costing the companies time, money and leading to lose the most calibers you are depending on.

1.2 Importance of the study:

Knowledge is not the only thing you may lose if an appreciated worker decides to leave, but we need to recruit new worker and we should train them as well. In addition, we have to keep the other staff motivated and satisfied during the time it founds gaps resulted from turnover. So, it costs the organizations a lot of time and money, sometimes exceed years of pay for only one employee.

Normally, not all the workers are leaving will make the organization loss a lot. There are some workers whose change in the career path or got retired is just welcomed for a change to the company. And then, all figures and analysis proved that almost the talented workers are very difficult to retain or maintain.

With the new culture where the workers need to experience a balanced work-life and to keep feeling the challenge by what they are doing, most of the chances are that motivating and satisfy the worker with an organization can be decreased through the working years. But, effective worker motivation can increase consequently the worker’s loyalty and then the productivity and inversely worker’s turnover will be increased if organizations fail to create new methodologies and theories to motivate their workers.

1.3 Research questions:

What is the mean of Employee Motivation?

Why employees need motivation especially in Telecom industry?

What are the main reasons of Turnover?

What is the direct/Indirect effect of the turnover phenomena on organizations and companies?

How can companies motivate the employees to reduce the turnover rate?

Chapter 2: Employee Motivation

2.1 Definition of Employee Motivation

Motivation can be defined as giving the interest, reason and incentive that may cause a certain action or an exact behavior and it is the process that initiates, directs and maintains the goal-oriented behaviors. The two main kinds of motivation are intrinsic and extrinsic .Firstly, the intrinsic motivation is the internal one and it occurs when people are forced to do anything is out of gratification, importance and desire. Secondly, the extrinsic motivation may occur when an external factor force the person to do anything (Drucker, P.F. & Maciarello, J, 2004).

SADRI, G.and BOWEN, R. (2011) adds that motivation relates to a range of psychological processes in which it guides the individual toward one goal or defined target and cause that person to keep pursuing this goal .Motivation is often described in terms of direction which aim to choose one activity over another and intensity as the number of the employee trials and finally persistence of holding a certain behavior against the obstacles may be faced.

Hard workers, high work quality and great quantities of work can be gained if the organization can motivate their employees and in this case they can be easily engaged along the organization culture and behavior , therefore they will encouraged to be a part of the organization structure and not to search for other opportunities .

2.2 Drives Underlie Motivation

For motivating the employees to do their best in the work, they have to live in the environment that satisfy the essential emotional drives which are the drive to acquire, bond, comprehend and defend. These four drives are highly connected to our brains, therefore when they are satisfied, it will be reflected directly on the emotions and behavior (Nohria, N., Groysberg, B., & Lee, L., 2008).

These essential four drives are more illustrated as follows:

1- The drive to acquire:

Almost people are driven to acquire the rare goods or services that boost the sense of happiness. If this drive is fulfilled, people may feel delighted or otherwise, they can feel sadness and frustration. Only not for the basic needs like food, clothing or even shelter this phenomenon can be applied but for others like travel, enjoyment activities and entertainment and In addition, an event that improves social status like upward promotion or getting a new desk in the company or be assigned for a new challenging project.

2-The drive to Bond

In general, it is the tends towards the relativity in which you always compare between what you have and what the others owns and not with you and also the voracious of always want a lot and desire the more. And that may explains globally the interest of the people to care about their main compensation packages but that beside the interest of what the others have as well and not to care just with their own one.

It describes also that imposing the salary covers is very hard to apply. Almost the animals with deferent kinds and types may bond with their mum and dad, the type groups or even the large family but the humans it may extents a more to reach the bond with large grouping like the bond connection with the corporate, organizations, social associations and nations.

In case the drive to bond can met, it always associated to a strong feeling and emotions and it seems to be a positive one like the love to others or to you and caring but when it not met for the drive to bond, it goes associated and linked to a negative feelings or emotions like to be alone or sad all the time. While working usually the driving to the bond accounts for the huge increase in the motivation for the workers and employees to feel proud of be a part of this organization or company and in the same time to feel losing the morale if this company or organization employees cheat them or con them. It may also explain the main reason to find the employees feel it hard to break out the dividing of the groups and grudge between colleges (Cole, C. L., 2000).

The attachment to the closed groups or union is normally can be found but it’s totally right that desire and the ability to be attached to the larger and most strong unions may lead at the end that the employees may be more care and interested to the whole organization and big structures than to the small groups like the team or even the family.

3- The drive to comprehend.

To comprehend, is the thing we all need a lot feel and sense the world around our lives and that to grantee producing the new methodologies ,theories ,high technologies ,science and culture that usually make the events more clear and any suggest seems to be reasonable for actions or even responses. But at the time you found the things without the desired sense, consequently you are frustrated and disappointed and you are re-energized in generally for the challenge to work out the answers (Vora, M.K., 2004).

In companies and workplaces in general, the drive to comprehend may be accounted for the need and desire to make and set up a new benefit or any valuable contribution others can use or gain. Workers be motivated by tasks and jobs that may challenge them and give the ability to grow up and gain new knowledge, and they can lose the interest by those that it seems to be repetitive and finally may lead to the dead end. Workers with the rare and valued talents when they feel they cheated or lose the trust often leaves this company or the organization to find the job they feel challenged and enforce them to start with new spirit to achieve what it makes them more satisfied (Nohria et al. ,2008).

4- The drive to defend.

Is the drive to defend ourselves, our belongings and achievements, the family, close friends and group ,your own ideas and the way of life against unplanned threats may be externally .The drive to defend may be rooted in the basics of the response commonly to the most of the animals. For the humans, it raise for not as aggressive or defending attitude but also to create the organizations and groups that promote fairness that have clear targets and able the people to show their new ideas and valuable opinions.

If you succeed to achieve the drive to defend, that definitely will let you feel the safety and self confidence but if you could not that will lead to a strong negative feelings like unsafe and dissatisfaction. However this drive can show many of what the majority of the people are dislike and almost resist the change and it is the reason employees can be frustrated in case of any business acquisition or companies merging which is a major change the for any worker can face even it is the only and unique solution that the company or organization can follow to survive and keep working in the market (Spector, P.E., 2008).

Like if a day your company told you that you are rewarded for being the best achiever and the most successful employee in the company you and the coming step is to own a new reorganization in the team structure which is a very rapid and hard challenge to your drive to defend at that time .Once, the other competitor may use this drive to grasp this employee and exploits the frustration may be felt by this employee and for sure will be direct hit for the employer to lose this caliber worker along this challenge his employee is facing.

All the previous drives already classified and clearly described before are independent and cannot subistiued, re-changed or reordered. Not only the salary you are paying to your workers may make him feel excited about the job function and nature although the bonging is not found yet the work itself without any valued meaning or even the works still suffer from defending feelings. it is very hard to get the drive to bond for people paid a little or working a boring task and so you can get workers doing just the job but not to take the best of them for just they need money or to fulfill their urgent basic needs and for sure you may lose them suddenly at any time if they found their aim from the job with any other employer .Finally, fulfilling the four drives is the only way to motivate your workers as long as you can. (Nohria et al., 2008).

2.3 Basic Motivation Concepts

Motivating the individuals or the employees in any organization is not an easy task can be done and get the good results you need to build on your strategy and put the objectives helps in achieving the organization goals. And so, it requires a lot of work on the organization level or workers level to maintain the goals and find the solid ground which is essential for any corporate or organization success.

The aggressive market completion enforce all corporate and companies to headhunt the most qualified and skilled workers everyone in his field but inversely the power goes to the employee to ask for a very high salaries and by fact and upon the market the companies started to act to this demands. Upon a recent research, it was found that the percentage of the salaries on the job satisfaction is not a big percent and that every company should follow different methodologies to keep their workers motivated and engaged with their organization (Robertson, K., 2002).

Responding to this requirements and demands by the qualified employees, the companies should work in two directions one is psychological which is solving the intrinsic issues and the other is for the financial one as well. And after an important study had been conducted via the Employee Benefit Research Institute (EBRI), it founds that a great percent of companies and organizations spent a lot of money in order to compensate their workers although the year after they spent less than this percent before.

Balancing the financial and nonfinancial motivators, organizations begins a diversification in their packages to cope with the great financial demands. So motivators becomes not only as great salaries or beneficial packages with medical and other insurance but it becomes diversified to meet all the desires with a creative designs to attracts different qualifiers or maintain and retain their skilled workers (Sanford, B. ,2002).

2.3.1 Need Theories

Main five theories should be clarified which is affecting the worker satisfaction and motivation towards the work .Every theory is targeting one of the major values and varied upon need like the turnover or the employee productivity and also the theories differs upon it’s affect and strength and how is the result is closing to aim of applying this theory.

2.3.1.1 Maslow’s hierarchy

Abraham Maslow’s theory was introduced in the 40th which clarified the main basic needs for any individual cause the desired motivation and this theory can be used as guide to show the procedures should be followed by any organization to offer the packages to their employees in order to motivate them and satisfy their basic needs and consequently it will minimize the undesirable turnover and then it will decrease the cost.

One of the most crucial basic theories of motivation is Maslow’s hierarchy of needs as the theory support the organizations to create new design programs and set up to motivate the employees and retain their loyalty and then it will minimize the turnover and only the qualified resources will be hired and that will reflect positively on the production and organization revenues at the end. (Johnson, L. ,2006).These basic needs for individuals can be ordered from the main basics to the more advanced as below hierarchy to be physiological and followed by safety and then social relations after that the self esteem and last not least the self-actualization.

In other words and classifications, the first three basic needs named as deficiency needs because they should be fulfilled when the individuals becomes healthy and safe .The last two are named by the growth needs as they are targeting the personal development and individual and as each of these needs becomes essentially satisfied, the next upward basic need be a dominant.

SADRI, G., and BOWEN, R. (2011), added that each basic need has to be fulfilled largely to able the individual to proceed for the next higher level. The managers can inspire the employee by offering a reward or motivator to satisfy the need which is already operated and at that time once the worker fulfill the basic or essential need ,he got motivated and then seek to go directly to the next level of needs which he desire to satisfy the morale and got more motivated.

And by default and as nature, the motivators may differ from one individual to another and it is totally depends on the personality of every worker or individual itself. That proof why the impact percentage reflected after the motivation is not a liner relation and what can work with an individual cannot work with other.

The following clarify and describe the main Maslow’s needs, and show the different various motivators that organizations can use to motivate their workers.

1. Physiological needs:

This need is described in Maslow’s hierarchy as the most crucial basic need for any individual and it contain the need for food, shelter and breathing air for keeping alive .The most clear motivational factor along the business life in this level is the financial compensation which is include the salaries, profit share, pension funds and retirement packages as the salaries may reach a great percent of what the organizations are spending to motivate their workers (Caudron, S., 1994).

The Salary is the most important thing that anyone is considering while move search for any job and therefore money becomes the critical which the worker is seeking to satisfy his needs physiologically.

So money can grantee the food shelter and cloths needed for this important human basic satisfaction using the salary and financial benefits. Also some other benefits can satisfy this basic need like providing the good and healthy environment, nice desk and other facilities like computers and coffee machine .And to breath a fresh air with suitable workplace could motivate the workers and got the best of them without increasing their salaries or pay for additional financial packages. Some companies are offering a break time and others prepare a recreational area specialized for the launch and breaks and some goes to the funny ideas and offering place for play station and other games. Other corporate found it nice to offer free coupons to be delivered to their employees for free meals and that may satisfy the physiological basic needs for the workers and feel that he is free as at home (Arazy, O., & Gellatly, I. R. ,2012).

Recently and especially the big organization began to use different and innovative ideas and also indirectly support their employees to satisfy their basic physiological need like to offer free car parking or free wash for the cars and other cleaning facilities and in addition some other activities like on-site gym within the working hours or may after that. Others offer a booklet for discounted promotion may be useful for this personal life and will reduce the worker’s expenses by default. These benefits and facilities will surly decrease the financial obligation on the worker and can use the money to pay for thing seem more vital and important for his normal life

Lately, a lot of companies and organization recognized that from the major issues may satisfy and engage the worker toward the company is providing the balance of life as much as can in which this balance is directly considered as a basic need and that to provide penalty of time able the worker to enjoy his life after work and not to waste all his time in the work.

And seeking for this balance, a lot of workers these days are searching for the job and organization will achieve this benefit and a more beneficial job functionally and financially may be rejected from the worker side due to the absence of this balance of life he needs. And to avoid this conflict from the organizations ,they began to find alternative solutions and to offer some benefits related to balancing the work life to attract the employees to accept the job especially the qualified candidates and that require a lot of creative ideas like enable the working from home system or the flexibility time and to choose special day in the week to work and customize the weekdays working hours and says and beside some other benefits like on site gym and cleaning facilities to provide enough time for the worker in work and enjoying his time after the business working hours (Williams, M.L. and Dreher, G.F. ,1992)

Sherman, A. J. (2003) added that, other workers seek to have a planned vacation from the beginning of the year to decide and plan what to do and how to enjoy this vacation along the business year and that will grantee the balance of life the worker is requiring to continue work in the organization with the same performance and clear mind and give the best to the company and consequently will be reflected on the profits to be gain by the organization so it is a win- win agreement and benefits.

Some companies begin in that way to get the promotions and discounted offers to their employees for the vacation plans and in addition to advice about the best places in the suitable time with the less cost and so, the worker will feel how the organizations is carrying about his balance of life.

2. Safety need

The safety, tranquility and security are all synonyms for what is desired for any person. And as Maslow’s definition about safety, it is the need to be safe from physical and nonphysical harms may affect his life. The money in general considering salaries act as physiological needs and consequently it provides the sense of safety. Also to be healthy can be considered one of a sense of safety for any person.

Upon a study conducted by J. MacDonald, billions of dollars spent by American companies on the health benefits in the last years and to secure the desire of safety. Before, organizations were granting the health or medical insurance to their hired employees but recently they are securing the medical insurance to the employee’s families. Also organizations began in providing new types of insurance like life insurance which gives a long term and then the employee will feel secured and that will be reflected to his satisfaction and loyalty to the company. In addition, the new retirements plans provided by companies makes their employees feel a very favorable sense of safety and securing (Caudron, S., 1994).

The retirements plans gives the employees a sense of long term safety and by searching, we can find that the most used system a plan in which the organization match a part of what the employee contribute with. Definitely, all the organizations that are not providing this type of plans are suffering a big problem that is it becomes not an attractive company for the qualified and skilled candidates and cannot even retain their employees .Now organizations can provide the programs and service that grantee the safety and security to their workers

Example of these programs the psychological programs that support the qualified workers to overcome some of the stresses and workloads they are suffering helps in releasing conflicts they may face and that using some tools like a helpline or one-to-one meetings with qualified consultants help the worker to overcome such these negative emotions and feelings.

3. Love/belonging needs

The third level in Maslow’s hierarchy is the need of love or to be part of someone and to be loved and feel the emotional feeling related to the grouping or to be belonging to someone. This basic need will push the employee to join the organization that feeds this emotional status and to sense the relationship based on this company and socially can deal and establish relations he is seeking.

Here the organization can get benefit from this relation in which the worker who is willing to join company carrying about the relationship based, can use this in formulating the teams and harmonize the members to get the best of them and work as one team .And at that time, the employee will feel motivated and can satisfy his basic need about belonging. So team can produce more than every worker can do alone and that is the team synergy. It is a win-win situation between worker and the organization. (Mayfield, J., & Mayfield, M.,2009)

Some other plans can be implemented about satisfying the worker belonging needs like sponsoring sport activities, gathered launch breaks, open clubs, innovative focused groups, events allow the worker to get his family or friends in the work, projects that gather the employees with same interests, gaming and friendly competitions and may extent to support the worker in a personal issue like funding for new car. All these trials from the organization side are to give the hand to their workers to feel the belonging and then give the best to the company as much as they can.

4. Esteem need

One of the main reasons founded recently makes the employees to leave their job is not to be recognized in their organizations .Maslow’s hierarchy mentioned that self esteem is a very important basic need for any worker especially the skilled one they need to feel recognized ,respected and have a good image between colleagues. That will be reflected directly to the worker’s self confidence and positively will be impacted on the business in which the employee will be satisfied and much motivated which allow to get the best of him. To be praised and recognized are basic feelings for motivating the employees and especially if is showed among the people and colleagues (Rutherford, B., Park, J., & Han, S., 2011).

From the grate motivators for any organization can use is the sense of trust and self confidence the worker can feel while working in this company and how they recognize their contribution in raising up their company and help in achieving the organization strategy goals and targets and the appearance of this contribution among the company colleagues which give a great push to these workers to work hardly and continually to save these feelings for a long time in which satisfy the self esteem they need.

Some companies started creative programs to satisfy this need by giving a special reward and cups to the best achievers and valuable gifts to the best performers and also distributing a thank you cards can be gifted in between the workers which gives a great sense of recognition and self esteem and feeling pride in the company. (SADRI, G., & BOWEN, R., 2011).

In other organizations, they began to build up some programs and closed focus groups specified for the most innovative and creative workers help the company in getting new product, promotion or technology and then support in increasing the company profits. This may be useful for some workers but others may satisfy the esteem need by getting promotions and titles in the company .so the organization started to create a special promotion slots for achievers or announce for a promotion for whom will create a new beneficial idea aligned with company strategy. others create a technical paths for works in case there is no availability for promoting the workers in the managerial paths and in some companies there is no availability for any promotion so it compensate their employees by delegating them in some important roles which increase the self esteem and makes them more engaged.

Nohria et al. (2008) said that employee of the month and announcing for the best tool all are some strategies can be used by companies for satisfying the worker’s self esteem. Others provide parking spaces, a closed office, free gym access, attending a high level meeting and the priority for conferences and overseas trainings. Also recognition in the company’s magazine with achievements had been done by the worker is a very good trial to satisfy and fulfill the basic need of self esteem

5. Self-actualization need

After achieving the four previous basic needs, the self actualization stage can be noted strongly. The worker feel that he want to be the best and the most important and critical member in the organization and his stamp is crystal clear in every corner in the organization .If the company can satisfy the four levels of the needs, it can use the self actualization as an inspiring for their workers to get the best of the best from them and support them to reach the highest performance ever and that will be reflected directly to the business and expected profits.

But this level is very hard to be reached or satisfied by all workers and to feel this step is almost for only workers who are seeking the highest performance and pay a lot of efforts and time to get this level.

2.3.1.2 Goal-setting Theory

This theory is talking to the high performance as it depends on setting a specific goal and that goal should guide the worker the tasks have to be done and the efforts should exerted .A certain and predefined goals sure will increase the worker performance especially for the difficult goals than the easy one. The act of specifying the goal may be as motivator in itself and therefore the goal should be noted with its importance and the characteristic of the tasks achieving the goal

This theory stats that there is indivisible connection between the performance of the tasks and the setting of the goal itself and it is clearly found that the much of making the goals more specified .It states that specific, achievable and can be measured, the much the worker will be motivated and satisfied .So, Goals have to be SMART enough to get benefit of the fruits of being use the goal setting theory. For example, if the worker knows that at the end of the year he will evaluated upon clear and smart objectives and goals, this will motivate him to achieve the measurable goals and then can be rewarded (Manzoor, Q. ,2012).

From the main advantages of this theory that it is way in which it can increase the worker motivation to finalize the work assigned efficiently and effectively and also it end up with enhancing the performance through set a clear goal with providing the required motivation and by getting the right and quick feedback helps in getting the weakness points and begin work on it immediately.

But in the same time, companies or organization goals may be conflicted with the management goals and then it will affect dramatically on the worker performance and organization in general. In addition, it may be more complicated in which can be risky for the organization .Also, the worker qualification and skills may limit the goal setting process in which the less competencies can affect the performance while achieving the goals and then the theory will fail.

2.3.1.3 Reinforcement Theory

Reinforcement theory always looks to the worker internal status in which the feelings and emotions can draw a main line for the character and this theory is interesting completely on the feedback and responses got from the worker while and after doing a specific action .Thus, it is founded that organizations should design the external environment in a way that affect the workers in appositive and effective way to motivate and stimulate them and then using this theory ,organization can make the required analysis using this as a tool to control and monitor the worker behavior (Robertson, K.,2002).

Organizations can use the reinforcement using different methodologies to control the worker attitude by positive reinforcement that organization gives positive feedback and response when the worker behaves in a positive way. Other by negative reinforcement like rewarding the worker by removing a negative penalty or unfavorable consequences. Some companies use the punishment by erasing some positive penalties in other words, to apply unfavorable penalty to show unwanted attitude (Lepak, D.P. & Snell, S.A., 2002). Finally the Extinction, which is used when reinforcement is not found. It decreases the probability of unwanted attitude by removing reward related to his attitude. Reinforcement theory predicts the quantity and quality of the work with the exerted efforts and lateness by the worker.

2.3.1.4 Equity Theory

Sometimes the workers feel unfairness when they perceived that are not rewarded or less rewarded than they expect to deserve and that may be a strong reason for de-motivation.the equity theory on how to distribute the resources among partners in a fair way. It can be measured after comparing the contribution ratio and each person benefits and here it should be mentioned that receiving the same benefits between partners like organization and employee in the financial packages for example or have the same contribution is very hard (Huseman, R.C., Hatfield, J.D. & Miles, E.W,1987).

Like other motivation theories, the equity theory noted that the variability and changing in the efforts exerted by a worker can affect hardly the impression and perception about their relations with other partners. Normally, the worker is seeking to feel that he is rewarded in a fair way upon his performance and ration of contribution but the employee feel that he is underpaid regarding to the effort exerted, it will affect on the performance and consequently there will be a degradation overall organization performance.

Just the recognition idea, thanking way and rewarding in different ways is expecting to make the worker feel satisfied and more motivated and the may be for feeling the equity according his contribution and what he got from feedback and between the work colleagues and this feelings is supporting to build trust, self confidence to the worker and spreading the fairness between workers especially in same teams which is very healthy for the company and worker simultaneously. In general, almost the workers are comparing between what they are got and what they are doing relative to other workers to decrease the sense of inequity .also the workers try to note not only the rewards they are receiving due to their efforts but trying to relate to what the others receiving (Spector 2008).

2.3.1.5 Expectancy theory

Expectancy theory is stated the strength of performing in a special manner is directly depends on the strength of expected performance followed by clear output of the worker. This theory stated worker’s motivation is the output of the expected reward the worker can gain, efforts that may lead to the reward and then the belief that such efforts exerted should be rewarded. In short, it is the expected and not the actual satisfaction that the worker perceives after the doing the job. Expectancy is the belief that efforts will result the best performance and it is affected by some factors such as control of suitable skills to perform the job, qualified resource availability, find out the important information and get the required support to achieve the goal (Cappelli, P., 2000)

The expectancy theory focuses on some particular relationships like effort performance relationship in which the worker is almost perceived that certain efforts exerted will lead to specific reward. And other is Performance reward relationship which is the level the worker trust in performing with certain level leads to realization of a favorable output, and finally the reward’s personal relationship as it is the degree in which the company benefits and rewards can motivate the worker and attractiveness of possible rewards for the worker.

But the expectancy theory seems to be naive because little number of workers are perceiving the high level relation between rewards and performance and also to apply this theory, it will be faced by several limitations as it is not correlated directly with worker’s performance in some companies and organizations and just correlated to others like the grade, accountabilities, backgrounds and responsibilities.

2.4 Impact of Motivation Techniques

The Theory of Maslow’s motivation hierarchy ban be used by both organizations and managers to be as a framework to enhance the corporate beneficial deals, promotions and benefits that is very important to worker and thus it will help in increasing the satisfaction, motivation ,production and then the overall profits to the organization. The main idea of Maslow’s hierarchy is that worker satisfaction and motivation needs more than just a fit able salary as not all he worker are laying in the same trinity in Maslow’s hierarchy, so have to be motivated in different ways separately .Motivation needs a lot of work from managers as to define the main needs clearly which is act as a function to satisfy the worker (Caudron, S. 1994).

So, highest priority for almost every worker who starts new job is the salary. Once that need is fulfilled to that extent, the worker requires a next step which is the safety. Then the third level of basic a need which is focusing on enhancing the feel of belonging. After that, workers need to sense the recognition to satisfy the esteem need. Once all these basic needs are full filled, organizations have to add motivators which lead to satisfaction of the higher basic need on Maslow’s hierarchy which is the self-actualization.

This hierarchy of basic needs helps organizations to confirm that they can provide the benefits will satisfy the basic needs at all five trinity of the hierarchy. Defining of where the worker allocated in this hierarchy can be done through self performance review with workers individually and by using worker ideas about other groups of workers.

Manzoor, Q. (2012) added that while providing the motivators required ,organization can be able to reuse their finds efficiently and effectively and in the same time to retain exists worker and attract other qualified candidates .And by default the workforce will be motivated and then inspire the remain parameters to be in the same feeling. In the end, this may increase the overall organization profits and build the workforce in which consists of the workers searching for other creative ways to make all around is better.

Chapter 3: Turn Over In Telecom Industry

3.1 Definition of Turnover

An organization turnover is known as, the portion of year that a common item stays in inventory or it could be calculated as the ratio of annual sales to inventory. Example, if an organization needs to evaluate its inventory turnover, usually the inventory has a rate of return to zero, otherwise this means that the turnover is low and this indicates organization inefficiency. However, the turnover of a mutual fund is calculated as, how many times the average dollar of assets per year can be reinvested (Hansen Fay, 2005).

3.2 Turnover in Telecom industry

One of the most important issues that need to be discussed is retention, as it is mentioned in a significant number of literatures. Retention means the presence of an continuing employment connection, however turnover is the separation from that certain connection. To illustrate, due to the elevated employment rank which is found today organizations have discovered that the balance of authority has transferred to the employee from the employer, which is a result of not administering the turnover impact properly. Extreme turnover is an indicator that there are essential problems inside the organization. It’s highly crucial to retain the organization employees and this is done through knowing how an employee can stay in a certain organization. A study done lately by Raikes and Vernier (2004) has showed that one of the important strategies to accomplish financial success to an organization is to retain its employees.

Evidences show that challenge will be mounting daily. Morgan (2008) recommends that the job of recruiters should be hard. In addition, Raudenbush and Bryk ( 2002) have recommended lately that retaining employees is a crucial thing for any organization; therefore recruiters should search for the best and appropriate methodology for recruiting.

It has been mentioned in previous studies that there are determinants that should be considered to retain employees with a well functioning strategy. The work environment, career opportunities and balancing between work and life are considered determinants that directly affect the employee retention. It has been recommended by (Cole 2000) that employees will retain in a certain organization and do their best in work if they are fully satisfied. This concludes that rewards, the organization culture, improvement and balancing between life and work are the key reasons for an employee to retain in a certain organization.

Today, competition has become highly strong and vigorous due to increased technology and awareness. Therefore, in Pakistan telecom industry retention is considered one of the major issues, as employees are considered the organization asset or resource and the one who produces profit. In Pakistan, telecom is considered one of the highly developing industries, so to cope with the growing competition Pakistan has to act on the key determinants that affect the employee retention.

This research is based on studying the ability of telecom industry to retain employees through using different determinants. Decreasing the turnover of employees is a crucial and tactical issue. For a business to sustain and maintain its success it should be able to deal with the problem of turnover in an efficient and successful way. The most important thing is to put a good ground work so that the employees can be committed for long term to the organization (Cappelli, 2000)

Every business should own highly efficient employees to be able to develop profits and growth. To achieve success each individual should have a goal to achieve otherwise, the picture will become invisible. For instance, the crucial target of Pakistan telecom industry was to retain their employees, as they noticed that designation or high income is not always considered of high importance to an employee to be retained in an organization.

This paper goal is to know how efficient employees could be retained in an organization by concentrating on specific determinants such as improving organization culture, balancing life with work, support of the supervisor, rewards and promotion opportunities. In addition, this paper focuses on how to attract employees and how to make big efforts to retain them in an organization. Moreover, it concentrates on why do employees leave their organization and why they are demanded by others.

3.3 Reasons of leaving people the organizations

3.3.1 Push and pull factors

K. R., S., & Kamalanabhan, T. J. (2010) has discovered different reasons why do employees’ admit their resignations to their organization. One of these reasons is the pull factor; where the employee is attracted to a new job opportunity or the desire of the employee to take a break outside the work load. Another reason is the push factor; where the employee searches for another job because the sense of satisfaction is not fulfilled in the current job. Moreover, employee resignations could be due to a mix of pull and push factors. On the other hand, the reasons behind an employee resignation could be due to domestic situations. For instance, when an employee has to change the place where he/she live or when they move to live with their spouse.

In addition, it was mentioned that the reasons of employee resignations are often incorrect or partially incorrect. The exit interviews are widely used, however they are known to be unpredictable, especially when the interview is done by a person who might be asked by the departing employee for a written reference. Employees who want to leave a certain organization tend to resist their manager, organization or even their colleagues criticism and they tend to give unarguable reasons for leaving the organization.

Moreover, Price, J. L. (1975), has stated that employees stay in their jobs when they are satisfied and are happy in it and uncommonly for them to leave the job even if they were offered higher salary in another place, also it mentioned that most employees favor to be stable in their work. However, when employees feel unmotivated and uncommitted to their job they tend to leave the organization.

3.3.2 Turnover in humanitarian agencies

For the humanitarian part, the case is similar as employees could leave an organization because they are unsatisfied with it, and this could be due to several determinants such as disagreement between the employee and the employer, poor organization management or absence of organization clearness and support to their employees. In addition, an organization which is managed inadequately result in increased employee turnover and leads to disappointment (SIEBERT, W., & ZUBANOV, N., 2009).

However, (Loquercio2005) has mentioned that there are particular factors that affect the humanitarian part. For instance, saving the quality of life as when an employee works in a working area that requires high workload and it has restricted privacy and less comfort, all these factors will decrease the employee quality of life. In addition, an employee who aims to have a family usually will not be able to get along with his/her working life. Finally, a lot of adults consider their involvement in the aid area will limit their professional life and they are afraid that their value in market would experience extended absence in their own country, however other adults can quit due to career opportunity deficiency.

3.4 Employee Retention

Does retaining employees in a certain organization is always considered a favorable thing? This is a question every organization should know its answer. Every organization supposed be able to differentiate between turnovers that are done involuntary and voluntary, as it was argued that turnover has been improbably known to be as the money sucking evil. In addition, Hansen (2005) mentioned that reducing turnover has become a goal, separated from the outcomes in a certain business. For instance, the author has mentioned that SAS organization which is considered a successful one, despite the low voluntary turnover, it had very high involuntary turnover in a certain sector. The author means that a lot of organizations resist expelling inefficient employees, because they are afraid from a claim that could be raised by an employee to the law.

Concerning the talent issue, Deloitte (2004) has reported that most of the employees leave their organization because they feel unsatisfied in their work and the organization does not take the employee demands and preferences into its consideration. However, employees remain in their work due to the financial circumstances they are facing, but once they find a better job or opportunity they will leave their current job. Though, organizations have the right to take into consideration that the increasing number of employees’ resignations will highly affect their performance, they should consider that they are one of the important reasons behind this situation and carry the responsibility of this.

Moreover, (Deloitte 2004) has mentioned that organizations highly focus and consider gaining talented employees, but once these employees are employed organizations pay no attention to them or to their demands. This report also highlights that organizations should focus on the importance of encouraging, developing and connecting with their employees rather than focusing on retaining their employees.

Actually, why do employees stay in a certain organization is more important than the fact of retaining them. (Hansen 2005) has mentioned that, for an organization to have the best turnover it should be able to achieve the highest improvement in business and continuity in production, not focusing to achieve the lowest turnover. Therefore, the two important things that should be considered by any organization are as follow.

First, the principle positions, experiences and profiles should be recognized by the organization and then it should identify in which category the turnover will be harmful, if this is applied the organization will be able to concentrate on how to decrease the turnover of that certain category. Second, it’s unfavorable and harming to an organization to retain employees who are not feeling motivated any more, however the organization is considered as one of the major causes behind the loss of motivation in employees due to the actions of its human resource and management sections. Therefore, an organization can increase the rates of both production and retention at the same time, if it increased the connectivity between it and the employees.

3.5 Strategies to compact Employee Turnover

3.5.1 The Person behind the Position

(JACKSON, H. 2011) highlights that employing the efficient and right personnel is the first factor to retain employees in a certain organization. To hire an efficient employee, this is simply done by making an interview and checking the references. In an interview the employer may illustrate to the candidate the required task and its main responsibilities, however how the employer or the manager can be certain that this candidate will be able to achieve that certain task. To illustrate, in a usual sale process the employees’ capabilities in dealing with customers will highly differ from each other. Moreover, upon dealing with customers the task and the expectation of a sales associate will be significantly different from that of store room associate. To conclude, if the employers or owners prepared for each position in the organization a precise list of behavioral demands they will be able to build up the essential characteristics required for succeeding in this certain position, and therefore they will be able to utilize this gained information to search and evaluate future employees .

3.5.2 Making the Most of Behavioral Insights

Candidate evaluation is an easy and essential factor for every organization, as it enables the employer or the owner to know the behavioral characteristics of the candidates and to know which factors are essential to motivate them when they are hired. It is easy for an organization to notice the benefits that will be gained upon adding the behavioral evaluation tool to its employee management listing plan on the short term, however the lasting benefit of this evaluation appears in the flexibility of the investment.

An organization can use this kind of evaluation in the beginning to reorganize existing employees and it can aid in selecting new employees who are more efficient, this will result in increased chances of growth and increased cost saving (Woods, R. H., & Macaulay, J. F., 1989)

Training:

Now, organizations and companies are more aware of the role and the importance of each employee as they are considered the direct image of their product and reputation to the customers, which resulted in increased training difficulty and amount for each employee.

In addition, most of the current successful organizations have developed a training standard which take every detail into consideration from how an employee should greet customers to how an employee could perform his job adequately and in advanced way. Moreover, training plans that are not working efficiently in certain areas can be recognized by the organization if they noticed the behavioral characteristics which are usually linked with main jobs.

To illustrate, using a training program which was recorded previously on a DVD is considered inefficient in training employees working in the customer service section in a certain organization because it will not contain all the important information that the employees require to achieve the job. It is considered a huge mistake from the organization to use such type of training for new employees. Therefore, an organization should create an attractive and inspiring first impression to be able to attract new employees and make them stay and retain in it (Vora, M.K., 2004).

Team Dynamics:

The employee productivity, self-esteem, experience in dealing with customers, and rapidity of service are greatly affected when working in a team and interacting within it. To build a good team dynamic and a constructive work culture, employees should notice that every one of them have a different method to communicate or manage a task. Employees using nametags or lockers to show their behavioral outline can help their colleague in the team to know the appropriate way to support or approach them. This is considered a very important feature in employee management, so the manager should list job requirements that directly reflect the behavioral characteristics of the employees who should work in a given organization. Therefore, organizations or owners upon hiring or promoting a certain manager should not only consider the manager’s style or character but they also should consider the dynamicity of the store (Morgan, H. J. ,2008).

Leadership Development

A successful owner understands that the organization development and success is highly based on the employees who work on the daily operations in different positions. An organization that have collected enough information to understand its employees behaviors will not only gain benefit on the short term, however, this kind of information will help to discover new leading employees or leaders for future and present job positions. For example, a business like the SUBWAY® multi unit after doing the evaluation that aid in decreasing the turnover of the employees, it has discovered two manager positions which are the manager responsible for maintaining and the manager responsible for problem solving.

Birdir, K. (2002) added that for the manager responsible of problem solving, he/she should be able to act practically excellent, to directly tackle any problem arises and to focus on following the rules. From this example, we conclude that the business owner has became more aware of which existing mangers and which future managers could be efficient in difficult managing positions, moreover, the owner will be able to know how to increase and develop the overall business success.

Motivation

A business owner or a manager has the chance to motivate the employees or not to every time he/she get in contact with them. To motivate the employees of a certain organization, the owner or the manager should understand that employees require different types of reward, they have different manner and they act differently to a certain action. For instance, there are employees who need to be honored and praised to be motivated on the other hand; some employees may require to be challenged with their colleagues. The owners or managers capability of motivation to their employees will increase if they noticed which one needs to be honored for his/her success in front his/her colleagues and who would favor to leave the work than to be placed in such a situation. In addition, owner can do simple things to motivate their employees such as, giving them gift cards or sending them an appreciation email for doing a certain task or early paid leave, and such things will be appreciated by the employees (Irum, S., Sultana, A., Ahmed, K., & Mehmood, N. ,2012).

More Food for Thought

For an organization to achieve significant effects on the turnover of the employees and attain excellent customer service, it should be able to build an environment where the employee feel satisfied with the job, be able to develop a scientific plan to define the role of each job probably and to know how to hire efficient employees. In addition, evaluation is considered a significant factor for any organization as it enables it to overcome problems that arises due to the increasing market, also it aids in having a steady and excellent customer knowledge. Moreover, the role of business owners has to focus more on how to satisfy their employees and how to make them happier, because this will result in an environment of efficient employees and reduced turnover. For example, if business owners used slogans or inspirational talks with their employees they will grantee employee success and motivation (JACKSON, H. ,2011).

If an organization objective is to decrease turnover, then it requires an inclusive and positive method, and this can be easily achieved as long as the organization owners are capable of showing their care and concern to their employees. Therefore, employees will enjoy what they are doing, care more for their work and their concern on how to make the organization more successful will increase if their owners or managers showed them how much they matter for them as individuals.

Chapter 4: The Impact of Employee Motivation on the Turnover rate in Telecom industry

The turnover of employees has dramatic effects on organizations; this is why the issue of employees’ turnover is highly considered. Employees’ turnover negatively affects the customer service and customer satisfaction of an organization. For instance, if an organization has increased employee turnover, an efficient customer service will be offered resulting in decreased customer satisfaction. Unreliable facts show that when an organization experiences a turnover with 150%, therefore its customers will be served by new workers continuously (Wood & Macaulay, 1989).

Moreover, increased rates of turnover may dramatically affect organization profitability. For example, a study was carried out by (Birdir, 2002) on Marriott Company and the results of the study showed that there is a reliable connection between employee turnover, organization profits and customer satisfaction.

4.1 How to Motivate Telecom workers

The labor force is changing promptly all over the world; moreover, dynamics have changed the way of an organization in using or developing information and affected its way in achieving goals. (Sauve, 2007) has recorded that companies have been developed from being preindustrial workplaces to a more expert and large scale companies having efficient employees with clear roles and tasks. In addition, it was highlighted that gaining information has become a cause of value creation and has become a crucial raw material. Organizations started to focus more on human capitals rather than focusing on physical one. For example, organizations are focusing nowadays on how to gain employees who have good knowledge and how to constantly develop and educate them as they are considered a competitive benefit to the organization. Despite that a lot of organizations states that their employees are considered the most precious asset some problems are still preserved such as inefficient work culture, bad learning techniques and improper management(O’Driscoll,2003).

(Vora, 2004) highlighted that a novel model of an organization is required which gives attention to workers who have knowledge and treat them as a valued asset. For an organization to succeed nowadays, it should focus on how to develop the performance of its knowledge workers. In addition, (Drucker & Maciariello, 2004) have mentioned that organizations should continuously modify, alter and develop in their programs and activities to avoid being eliminated from the market.

4.1.1 Best Practices for Building Effective Teams

According to the work of Angie Herbers and Daniel Pink’s on how to build an effective team, one can recognize and understand that for an organization to succeed and have efficient teams it should be able to creat a well brained, unique and motivating work environment and discard its old, poorly brained environment. In addition, organizations have to recognize that their employees nowadays require proficiency, self- satisfaction and to have intention or goal to be motivated or in other words employees need Autonomy, Mastery and Purpose (AMP) to be motivated. There are two types of tasks or activities, the right-brained and the left-brained. For instance, if an organization is using the compensation technique which means that if an employee did something then he/she will be rewarded, it is also called the if –then method, this technique will be appropriate to motivate left- brained employees, however if this method is used with right-brained employees it will be considered as a right for them not a motivator. Moreover, to motivate right- brained employees an organization should use the now- then technique, for example, now that we achieved our task let’s go to lunch (Kirchenbauer, L. K.2011).

The study also highlighted that time is considered a more motivating tool than money; however an organization that needs to motivate its employee have to know what does an employee value more. For example, team members who are satisfied with their work don’t require high salaries. Furthermore, every organization should have a compensation technique which is fair enough; for example, if there is an increasing rate in a certain position then using the survey of the financial planning salary (FPA’s 2010-2011) is the best technique to begin with, in a certain organization. However, if the compensation technique used by the organization is unfair then it should expect that its employee will quit from it. An organization which focuses on building an effective team based on self managing and having environments which are results based is considered the future approach however, an organization which focuses on micromanaging and how to face time is considered an old approach (Gardner, H. K. ,2012).

Every company or organization which needs to motivate its employees it should be able to invest in a good technology so as to enlarge and facilitate the performance of the work, this will also results in showing how much the company is committed and it will be able to produce improved results.

In addition, the team commitment increases when the company owner is capable of transferring his/her enthusiasm toward the job, team and clients to his/her employees. Using a motivating approach which focuses on revenues rather than profits is the best approach for business owners to consider, as revenues are considered clear and easy for a team to follow.

However, motivation based on profits is considered unclear as the employees are not capable of controlling or managing what owners are spending money on. A company should be capable of splitting the reviews of compensation from that of performance, because if both reviews are merged or combined the company employees will focus on the financial outcomes and the anticipated negatives rather than focusing on the positives.

4.1.2 Understanding AMP

To understand what is AMP (autonomy, mastery and purpose), each one should be defined. First, Autonomy is not just defined as the ability of employees to work from their home and having flexible working hours, it is also defined a