141573569 Project Report Organization

1

ORGANIZATIONAL BEHAVIOR

A CASE STUDY ON

EMPLOYEE JOB SATISFACTION & WORK MOTIVATION

OF

Nepal Life Insurance Company Limited

Submitted By:

Ambika Adhikari

Kiran Maharjan

Niraj Paudel

Prakash Bhatta

Sharad C. Pyakurel

Tri Ratna Manandhar

(EMBA FALL 2012)

Submitted To:

Mr. Shanker Raj Pandey

Course Facilitator, Organizational

Behavior

Ace Institute of Management

2

INTRODUCTION

The underlying concept of motivation is some driving force within individuals by which

they attempt to achieve some goal in order to fulfill their some needs or expectations.

People’s behavior is determined by what motivates them. Their performance is a product

of both ability level and motivation.

The relationship between the organization and its members is influenced by what

motivates them to work and the rewards and fulfillment they derive from it. The nature

of the work organization, styles of leadership and the design and content of jobs can have

a significant effect on the satisfaction of staff and their levels of performance. The

manager needs to know how best to elicit the co-operation of staff and direct their efforts

to achieving the goals and objectives of the organization.

Job satisfaction is a set of favorable environment that affects both administrative and

emotional feelings with which employees consider friendly/congenial for their work.

Locke (1976) has defined job satisfaction as the pleasurable emotional state resulting

from the appraisal of one’s job or job experiences. High productivity and job satisfaction

are closely related. A set of highly satisfied employees can guide an organization to the

peak of its success. Rust et al. (1996) suggested that intention to remain employed in an

organization is strongly influenced by the level of employee satisfaction and that overall

employee satisfaction is driven by satisfaction by managerial processes related to

employee welfare.

The different studies found different aspects as determinants of job satisfaction and work

motivation. Majority of the studies revealed that level of job satisfaction highly depends

on handsome salary, congenial promotional policy, supportive working environment etc.

In addition to these, organizational culture, relation with colleagues and superior,

participation in decision making etc also have influence on the level of job satisfaction.

But this study investigates some new aspects such as nature of work, attitudes of

supervisors, work environment, job security etc which also have an impact on the level of

job satisfaction and work motivation.

3

COMPANY INFORMATION

Nepal Life Insurance Company Ltd. (NLIC) is a large organization consisting of more than

300 employees. It has 28 branches and 32 sub branches which has covered major part of

the country. Being in the business of selling life insurance products it is performing the

same job as the other insurers deal with "Life Insurance". Till May 2013, it has 60,941

registered agents. It has been successful to sale more than 700,000 life insurance policies

till May 2013.

The organization structure of the company is formed by seven directors, five from

promoters, one public director and one independent director. The chair person is elected

among the directors. The operating wing of the company is headed by the Chief Executive

Officer, in the corporate office. He is assisted by a Senior Deputy General Manager,

Assistant General Manager and departmental heads of underwriting and policy servicing,

finance, information technology, personnel and marketing. The branch offices which are

the operating offices of the company are headed by the branch managers who are

assisted by marketing and administrative staff in the office and by a network of agents in

the field.

4

OB ISSUES TO BE EXAMINED

Behind the success of every organization motivation and job satisfaction of their

employees has an important role. If employees are not satisfied with the job there are

chances of absenteeism, low productivity, committing of mistakes, diverting energy for

different type of conflict, aggressive toward the company etc. so this study is conducted

on behalf of NLIC to identify the level of satisfaction in term of strongly agree to strongly

disagree on various job related factors.

Depending upon the personal need and hierarchy in organization different employees

motivates differently. For some employees financial factor is important and for others it

may be some nonfinancial incentives like award, appreciation, carrier development

trainings, opportunity to visit within or outside the country, etc. In this study we have

focused on employee motivation factors like their feeling about how much they are

valued by the organization, monetary motivation, job security, relationship with their

supervisor and their work environment. In general, some major objectives of this study

are outlined below:

To measure the level of job satisfaction of the employee of NLIC

To study the employees perception towards organization i.e. what they feel and

behave towards their organization.

To study the attitude of employees towards their work and organization as a whole.

To identify the major factors that motivates the employees.

5

METHODOLOGY

Samples

In this study 22 employees were randomly selected from head office of NLIC, Kamaladi,

Kathmandu. No demographic variables such as age, experience, sex etc were considered

in selecting the sample. The study was conducted on various levels of employees across

different departments.

Variables Studied

Employee Motivation

Employee Job Satisfaction

Job Security

Employee - Supervisor Relationship

Work Environment

A five step scale was used to measure the level of job satisfaction of the employees of

NLIC. The responses of respondents were categorized into five groups namely: Strongly

Agree, Agree, Neutral, Disagree and Strongly Disagree. After getting the responses on

different organizational variables, the responses of each variable were added to get the

proportion of the employee satisfaction level across different variables.

Collection of data

A well-structured questionnaire was prepared for the purpose of collection of data. This

study followed both personal survey with 22 random employees across different

departments and interview with the key informant - Mr. Agam Mukhia , Assistant General

Manager and Head of HR Department. Some of the employees do not feel free in

answering the questionnaire. It was possible to get answer after assuring them about

confidentiality of their information.

6

ANALYSIS

The collected data has been analyzed to identify the level of satisfaction in a scale that

ranges from strongly agree to strongly disagree on various job related factors as shown in

Table1 and Table 2 below:

QN Question Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

1 I see a good future for myself in

this organization. 1 9 9 2 1

2

There is a clear and effective

system of appraisal and carrier

development in this organization. 1 7 5 7 2

3 I feel valued by my organization. 2 7 8 4 1

4

Financial incentives motivates me

more than nonfinancial

incentives. 0 10 7 4 1

5 I am satisfied with my present

salary. 0 5 7 8 2

6

The employees in this

organization feel secured in their

job. 1 3 11 5 2

7

I am satisfied with the retirement

benefits available in this company

and it is sufficient for me. 0 0 5 5 12

8

I am applauded and encouraged

by my supervisor when I perform

a 'good job'. 1 10 7 3 1

9

In my professional judgment I

would say that my supervisor is

objective and fair in my ratings. 1 8 9 2 2

7

10 I work in a safe, healthy and

comfortable environment. 1 6 9 4 2

11

I have the necessary tools,

adequate working space and

appropriate equipment to

perform my duties effectively. 0 6 7 7 2

12

The possibility of getting a

promotion influences my

performance 4 14 2 1 1

Total 12 85 86 52 29

Table 1: Responses on the different factors of Job Satisfaction and Motivation

From Table1 it is revealed that around 85% of the sample employees are not satisfied

with the current retirement benefits and the plans, 46% are not happy with their current

pay, 50% of the employees believe that their supervisor encouraged them whenever they

perform good job. Majority of the employees believe that the appraisal and promotion at

NLIC is based on individual performance and their supervisors are not biased. Nearly

45% of the employees believe that they are provided with adequate working space,

necessary tools and comfortable and healthy work environment. Around 77% of the

employee agreed that financial incentives motivate them more than the non financial

incentives, which shows that the employee at NLIC are more inclined towards monetary

motivation. More than 50% of the employee see good future in NLIC and feel valued by

the organization.

8

S.N Satisfaction Factor Strongly

Agree Agree Neutral Disagree

Strongly

Disagree

1 Motivation (QN. 1,12) 5 23 11 3 2

2 Value In organization (QN. 2,3) 3 14 13 11 3

3 Monetary Motivation(QN. 4,5,7) 0 15 19 17 15

4 Job Security (QN 6) 1 3 11 5 2

5 Supervisor Relationship (QN.

8,9) 2 18 16 5 3

6 Work Environment (QN. 10, 11) 1 12 16 11 4

Total 12 85 86 52 29

Proportion (%) 4.54% 32.20% 32.57% 19.70% 10.99%

Table 2: Tabular Summary of overall Job Satisfaction and Motivation variables

Figure 1: Bar Chart of overall Job Satisfaction and Motivation variables at NLIC

From Table2 and Figure1 it is revealed that around 33% of the sample employee are

neither satisfied nor dissatisfied with the present job satisfaction and work motivation

level, 37% agree that the current job satisfaction and motivation level is satisfactory and

0

5

10

15

20

25

Motivation Value Inorganization

Monetary Job Security SupervisorRelationship

WorkEnvironment

Strongly Agree

Agree

Neutral

Disagree

Strongly Disagree

9

remaining 30% are not satisfied with their current job and work. From the table it is

clearly shown that the agree side of the measurement scale is heavier than the disagree

side of the measurement scale, which advocates that the overall job satisfaction and work

motivation level is good at NLIC.

From the result of this study it is revealed that the overall satisfaction of the employee of

NLIC is at the satisfactory level. But from the analysis of the individual aspect of job only

one area (retirement benefits) is identified sources of dissatisfaction. On the other hand,

six different aspects of job areas (present salary, career development & appraisal system,

value by the organization, job security, employee-supervisor relationship and work

environment) are identified as sources of satisfaction. The overall result shows that the

majority of the employees agree that the job satisfaction and work motivation level at

NLIC is satisfactory. At a glance the study shows that the employees of NLIC are

significantly satisfied.

CONCLUSION

The study tried to analyze the current job satisfaction and work motivation level of

employees at NLIC. The variables that were studied for measuring the employees

satisfaction level are work motivation, job satisfaction, job security, employee-supervisor

relationship and work environment. The result indicated that retirement benefits are

identified as one of the sources of dissatisfaction among employees at NLIC. On the other

hand, six different aspects of job areas namely present salary, career development &

appraisal system, value by the organization, job security, employee-supervisor

relationship and work environment are identified as sources of satisfaction. The

interview with the top management and the findings from the study revealed that the job

satisfaction and work motivation level at NLIC is satisfactory.

10

PERSONAL REFLECTION

Working in a group is learning from others. This group assigned for completing the

assignments of Organizational Behavior is very unique in the sense that the composition

of this group is totally different from others. Though all the members of this group are

classmates, the group members seemed totally new to each other. During the group

works we had a lot of interaction directly and indirectly. This helped to strengthen our

personal relationships. All the group members are quite friendly but a couple of them

could not contribute in the assignments due to various reasons. However, we did not

experience any kind of obstructions or ill feelings because of that. All the jobs were

shared for feedback through e-mails to the group members. This helped in unanimous

decision making. We shared our responsibilities as per our time availability and

expertise. This helped to divide the workload. Sharing of different ideas and learning

from them is the greatest strong point of any group work and non-participation of some

members is a negative side of it. These aspects were seen in our group also. Overall this

has been an interesting learning experience for me.

Individual Contribution and Task division:

1. Selection of case study topic and selection of organization

Time Taken: 5 hours

Contributors: Ambika Adhikari, Kiran Maharjan, Niraj Paudel, Prakash Bhatta, Sharad Pyakurel, Tri Ratna Manandhar

2. Questionnaire and Interview preparation

Time Taken: 8 hours

Contributors: Ambika Adhikari, Kiran Maharjan, Niraj Paudel, Prakash Bhatta, Sharad Pyakurel, Tri Ratna Manandhar

3. Take Survey and Interview with top management at NLIC

Time Taken: 6 hours

Contributors: Ambika Adhikari, Sharad Pyakurel, Tri Ratna Manandhar

11

4. Survey questionnaire Analysis and Interview Analysis

Time Taken: 15 hours


5. Case Study Analysis

Time Taken: 3 hours

Contributors: Ambika Adhikari

6. Report Preparation

Time Taken: 6 hours


7. Presentation Slides Preparation

Time Taken: 3 hours

Contributors: Sharad Pyakurel

12

APPENDIX

Survey Questionnaires:

1. I see a good future for myself in this organization.

⧠ Strongly Agree ⧠ Agree ⧠ Neutral ⧠ Disagree ⧠ Strongly Disagree

2. There is a clear and effective system of appraisal and carrier development in

this organization.


3. I feel valued by my organization.


4. Financial incentives motivates me more than nonfinancial incentives.


5. I am satisfied with my present salary.


6. The employees in this organization feel secured in their job.


7. I am satisfied with the retirement benefits available in this company and it is

sufficient for me.


8. I am applauded and encouraged by my supervisor when I perform a 'good

job'.


9. In my professional judgment I would say that my supervisor is objective and

fair in my ratings.


10. I work in a safe, healthy and comfortable environment.


13

11. I have the necessary tools, adequate working space and appropriate

equipment to perform my duties effectively.


12. The possibility of getting a promotion influences my performance.


Key Informant Interview:

Mr. Agam Mukhia, Assistant General Manager and Head of HR Department, NLIC

Q. Have you ever done a job satisfaction survey in your department or

organization?

Not recently. But I carried a job satisfaction survey in the head office and several other

main branches of Nepal Life Insurance Company throughout Nepal including the

branches in Kathmandu and Biratnagar.

Q. What was the average level of job satisfaction then?

It was quite good. May be it is because the survey was done internally. But, I did the

survey in the name of someone from outside.

Q. What is the turnover rate in your organization?

The turnover rate is minimal. However, it is high in the marketing department. People in

marketing easily get good offers from many places. There was also a trend of entire teams

leaving a company as they are offered better jobs or salaries in similar newly formed

companies. I did not experience such problems in the other departments.

Q. How many times did you experience an entire team leaving?

I did not experience an entire team leaving the organization. But many from a single

department quit in a span of time. Even the CEO has left the organization when he formed

a new company himself.

14

Q. Do you face any kind of deviant workplace behavior, absenteeism, irregularity,

frustration etc. in your department or organization?

I know my employees are not cent per cent satisfied with their job and organization. But,

I have not noticed such signs in my employees directly. Moreover, my employees are

always full of workload and new challenges so, they may not have enough time for these.

Q. What are the employee motivation factors in your company?

I believe there are plenty of motivation factors in my company. Some of them are:

competitive salary, bonus, transportation facility, easy loan. Marketing staffs also get

mobile bill payment. Staffs can get loans equivalent to one year's salary from the

company at the rate of 6% per annum. They can easily pay back the loan deducted

monthly from their salary. After two years of service in the company they get 70%

payment for bike from the company.

Q. What kind of motivation is more liked by your employees? Which one have you

found to be more effective?

I usually get demands for skill based, on the job and career development trainings from

many departments. These kinds of trainings have been quite common in our company

and they have been very effective to increase their motivation level.

Q. From our questionnaire survey we have found that a majority of respondents

have expressed their strong dissatisfaction over the retirement benefits in your

company. What is your comment to that?

Retirement benefit depends on the maturity of the company. It is true that the retirement

benefit in our company is low compared to other established and old organizations. But,

it is within the average of similar companies in the market. We are providing retirement

benefits as per the amount of our company's retained earnings. The score in your survey

is not clear what the basis of comparison is. If the employees compare our decade old

company's retirement benefits with other old and established companies and

government agencies, the result is agreeable.

15

Q. What is the main basis of promotion in your company?

There is set procedure of promotion in our company. Every employee is scored on the

basis of their qualification, experience, performance and appraisal from the concerned

department. The decision is made by the CEO till the officers level and the HR committee

comprising the board of directors decide on the higher level staffs. So, promotion is a

regular and unbiased process here.

Q. But many of the survey respondents have considered performance as the major

factor of promotion. How important is it?

Performance is an important factor of promotion but it is not the only one. However, the

marketing staffs get different benefit packages like long holiday trips in and outside the

country, recreational packages etc. on completion of certain set targets.

Q. Do you have other motivations to the staffs like on the job rotation?

We are thinking of rotating some staffs on the job. This will help us to appoint people

immediately when someone leaves the job. But, many admin and finance staffs do not like

the jobs that require direct dealing with customers. We are seriously thinking of making

on the job rotation compulsory in our company. I personally think this is good way

keeping employees fresh in their jobs. For them it will be a new job full of excitement

every day.

Documents

141573569 Project Report Organization