Motivation and Hygiene Factors in Indian IT Sector
SYNOPSIS
1. Descriptive title of the study
This study is based on the Herzberg’s Motivation –Hygiene Theory. In this study we try to understand the Herzberg’s theory based on changing environment of Indian IT sector.
2. Nature of the study
o Problem to be examined
With the changing economic and social values and status in India, we here try to find the current motivation and hygiene factors prevailing in the Indian IT sector.
o Significance and need for the study
As we all know that the IT sector constitutes a large portion of the Indian economic developments that we all had seen in the recent times. So, we try to find out the factors that determine the motivation based on Herzberg Theory, so that we could better understand the thinking of this great resource pool.
The need of this study arises that even though the IT sector is termed as one of the best jobs but still we are able to see the high attrition compared to other leading industries. So we try to find out what is the motivation psychology of the IT sector people in India.
o Background information available
The Herzberg Motivation –Hygiene Theory is the background setup available for the current study of this project. We will use the Herzberg’s theory as the standard tool to draw the motivation and hygiene factors in the current Indian IT sector.
o Scope of the study – extent and limitations
Every theory is based on some assumptions and the Herzberg’s theory is not an exception, so we have to take some basic assumptions to reach the final conclusions. As the conclusion will be based on the data collected by the random sample, so the study only shows the general opinion and not the every individual response of the concerned industry.
o To whom will it be useful?
It will be used by the HR functions of the IT sector and the Managers of the IT sector which are interacting with the Human resource of the industry.
This study will give them a briefed analysis that what are the key factors for the employee’s motivation in the prevailing situations.
3. Hypothesis, if any, to be tested
The study is based on the Herzberg’s Theory, so we are testing the hypothesis of the same theory in this study based on the current circumstances and the employee’s psychology.
4. Data Sources and Collection procedure
Data sources will be based on survey which includes IT professionals from the different major IT companies in India.
The early days of Uris Hall’s dormitory kitchen were characterized by excellent food and a content, tight-knit staff. The employees’ feelings of satisfaction and utmost commitment to their jobs are best explained using Herzberg’s Motivator-Hygiene Model. This motivation theory relies on the assumption that satisfaction and dissatisfaction in the workplace are independent of each other, and a different set of factors is responsible for causing each emotion. One motivating factor is the employees’ sense of achievement in their work. The case stresses that the eleven women who worked in the kitchen felt a consistent sense of pride in their labor; they went to great lengths to ensure superior quality
He developed the motivation-hygiene theory to explain these results. He called the satisfiers motivators and the dissatisfiers hygiene factors, using the term "hygiene" in the sense that they are considered maintenance factors that are necessary to avoid dissatisfaction but that by themselves do not provide satisfaction. Herzberg reasoned that because the factors causing satisfaction are different from those causing dissatisfaction, the two feelings cannot simply be treated as opposites of one another. The opposite of satisfaction is not dissatisfaction, but rather, no satisfaction. Similarly, the opposite of dissatisfaction is no dissatisfaction. While at first glance this distinction between the two opposites may sound like a play on words, Herzberg argued that there are two distinct human needs portrayed. First, there are physiological needs that can be fulfilled by money, for example, to purchase food and shelter. Second, there is the psychological need to achieve and grow, and this need is fulfilled by activities that cause one to grow. The job should have sufficient challenge to utilize the full ability of the employee. Employees who demonstrate increasing levels of ability should be given increasing levels of responsibility. If a job cannot be designed to use an employee's full abilities, then the firm should consider automating the task or replacing the employee with one who has a lower level of skill. If a person cannot be fully utilized, then there will be a motivation
Companies try and keep their vital IT functions in-house. They understand that these functions are important to their success and hence keeping these IT functions in-house will provide better control. True innovation results from IT professionals being tightly aligned with the company’s strategy, and that is difficult to pull off when IT people work for a different company (Davenport 2015). 1.2.2 Risks of IT
Yet, despite the criticism, Herzberg’s theory still holds merit in many managerial situations. Experts have built their theories on the foundations of the motivator-hygiene theory to better explain worker motivation. Among the most prominent is the expectancy theory or Victor
Motivational theories can be applied in a multitude of situations, but in this case the problems that must be resolved include poor morale, low performance levels, and frequent absences. After speaking with the employees it was found that none of them cared about their performance in the workplace. To properly address these issues, Herzberg’s Two-Factor Theory, McClelland’s Theory, and McGregor’s Theory X and Theory Y can be applied. Herzberg’s Two-Factor Theory can be used to improve working conditions and decrease employee dissatisfaction. Doing so would potentially motivate employees to perform better in the workplace and be more inclined to be involved in the job. Applying McClelland’s Theory would allow for the employees three basic categories
Following this, Lundberg et al (2009) outline motivation theories applied on employments and explain Herzberg’s Two-Factor Theory of work motivation, ergo hygiene factors and growth needs (see Appendix 1; Herzberg, 1971; Herzberg, Mausner & Bloch Snyderman, 2005). Moreover, the authors argue that individual personalities influence work motivation (Wang & Erdheim, 2007) and offer criticism on Herzberg’s theory (Parson & Broadbride, 2006; Tietjen & Myers, 1998).
In recent years, how to improve employee motivation has become one of the most discussed topics in our daily social news. Working demands differ significantly around the world. People working in different kinds of industries obtain different rewards. Most of the time, the employee’s motivation depends on the local government policies and the customs of their society. This includes, for example, employee competitive salary, year-end bonuses and company stock dividends, paid annual leave, employee lunches and break times, paid social insurance and regular vocational skills training. There are also some welfare factors such as free employee traveling, free books and gym membership, monthly team building and communication activities, a comfortable
Since the adoption of information technology (IT), the complexity of corporate IT environments has been growing steadily. In practice, IT complexity growth has given rise to various problems. First of all, IT management has become more and more difficult thereby increasing operational risks. Beyond that, IT complexity has also fueled maintenance and operating costs. As a consequence, there is often a perceived deviation between a firm’s business strategy and the information systems (IS) available to support this strategy.
The market for IT industry was huge and expanding at a fast pace. However the market leaders were Accenture and IBM which had a negligent market share and rest was captured by small enterprises. Indian companies also ventured in the industry and due to their competition, IT multinational giants had to increase their base in India. Due to high opportunities, attrition rate was also high in this industry. As a result Indian companies like Wipro, Infosys increased their base level salaries. During this phase, Indian economy was transforming towards an era of information and knowledge. This can be seen from the fact that contribution of services towards the economy’s GDP was higher than 18% in 2001 as against in 1980. No other industry had done better standing against global competition. The annual exports had always been over 50% over a decade. U.S.A. share represents highest with 61% and about a third of Fortune 500 companies outsource their software work to India. To foster development, Indian government has taken a number of steps like liberalization of policies and providing necessary capital and infrastructure to foster growth. Thus Indian environment has been conducive for growth. (Ref: Indian Embassy.org) Competitor analysis- The market for IT industry was fairly competitive with IBM and Accenture as global leaders and rest of the market was pretty diffused. IBM and Accenture had strong brand and a global presence with a large customer base. They also offered panoply of services viz. technology implementation, business consulting, offshore services, customer relationship management etc. Both offered breadth and depth of services. IT market in India offered technical and business consulting with Tata Consultancy Services which was the market leader in IT exports and Wipro Technologies and Infosys being other major market players. TCS offered consultancy services, IT services, asset based solution etc. Wipro was third largest IT provider with service offerings in IT consulting, software solutions, BPO etc. Both had a strong global presence. Intensity of Rivalry: Rivalry amongst competitors was pretty intense as can be seen the Indian competition caused IBM to increase their presence in India. However leaders like IBM and Accenture had a wide range of service offerings so competition was only amongst few sectors. Rivalry was to hire the top talent as human capital is the most important thing in the IT sector. This is the reason that attrition rate lead to a rise in pay packages.
Motivation is key in the workplace. It is developed from the collaboration of both conscious and unconscious principles such as the strength of desire or need, motivating force or reward estimation of the objective, and desires of the person and of his or her peers/co-workers. These elements are the reasons one has for carrying on a specific way. An illustration is an understudy that invests additional energy contemplating for a test since he or she needs a superior review in the class. The Inside and outside principles that animate want and vitality in individuals to be constantly intrigued and centered around their work, part or subject, or to try to achieve an objective.
Motivation is an aspect of managerial function of directing under execution. It is necessary as a means to induce people to work, as they are able and trained to do, willingly.
Motivation is therefore the force that transforms and uplifts people to be productive and perform in their jobs. Maximising an employee's motivation is necessary and vital to successfully accomplish the organisation's objectives and targets. However this is a considerable challenge to any organisation's managers, due to the complexity of motivation and the fact that there is no ready made solution or an answer to what motivates people to work well (Mullins, 2002).
They need an IT network that could scale up to match the size of the organization it projected to become in few years. There is a problem of scalability in their system. Their IT infrastructure is further complicated by incompatible IT system it has inherited through acquisitions and as a result it is facing need of huge IT investment to get things in right place.
Motivation is the force that transforms and uplifts people to be productive and perform in their jobs. Maximizing employee’s motivation is a necessary and vital to successfully accomplish the organization’s targets and objectives. However, this is a considerable challenge to any organizations managers, due to the complexity of motivation and the fact that, there is no ready made solution or an answer to what motivates people to work well (Mullins,2002).
People’s behaviour is determined by what motivates them. The aim of this essay is to discuss the essence of the motivation and psychological strengths, its evolution, a brief overview of the key theories of the employees’ motivation and behaviour analysis. The main task is to understand how motivation affects employee behaviour and to clarify the importance of motivation. In this essay I will discuss and produce definitions and examples to answer the main question of what is the driving force and how do people’s needs influence performance at work?