Employee's motivation and compensation problems

RESEARCH OBJECTIVES:

All researchers when help a study, has some objectives in his/her mind. These objectives are formed after understanding the industry in a particular region and by getting supportive evidences and cases. As a student researcher I have also certain objectives in my mind after gathering relevant information at the formative stage which helped me to generate certain objectives which can only help me to proceed with my research work. The primary objectives are as follows
  • To know about the primary cause behind the agitated and unproductive employees in this industry.
  • To study about the reason why behind unionization.
  • To study the key drivers that motivates the employees to work wholeheartedly in the company.
  • To find out the reasons of income disparity among the list of employees in this industry.
  • To investigate what appropriate pay package is expected by the employees.
  • To analyse the current motivational and compensation strategies adopted by airline companies in Kolkata.
  • To analyse the reasons behind communication barrier between top management and staff.
  • To investigate what exactly are the main element drivers which will enhance the performance of cabin crew including pilots who work in stressed environment with long flying hours.
  • To identify the reasons behind the increase turnover and absenteeism rate in the industry.
  • In overall, to determine what exactly is the employee's and management's vision in this area of study and what would encourage and inspire employees maintain their motivational level.

AIMS FROM THE STUDY

This research is aimed at analysing the motivation and compensation section of human resource aspects of the airline industry in Kolkata, India. The purpose of this paper is to recognize the problematic issues in the region of employee motivation and compensation faced by a few of the branches of airline companies in Kolkata. A healthy compensation package is crucial for a business. Some of the rewards which airline companies can adopt are job security, employee involvement, empowerment, plus sage, employee ownership and continuous career progression. Another essential aspect that should be considered is to constantly encourage and recognise the task of the employee such that it gives them a self drive to adhere to the industry and the current job and give them room to excel.

SCOPE OF THE ANALYSIS:

This research gives me some insight about different areas relating to motivation and compensation. It will also support to my personal knowledge development about these topics related to airline industry. As there are many studies which had been undertaken by many researchers previously, hence I will get the possibility to learn and make improvements and amendments in these areas. As the globe is changing every day, past researches might need improvements that i can suggest after conducting this research and add to the betterment of the industry. I am going to also get a detailed notion of the industry and how the human resource departments work. It can also become a starting place for the others to carry on with further research in this area. I'll get a standard comprehensive understanding of motivation and compensation theories which has been developed by reputed personalities. In this study gleam scope to recommend suitable measures to the firms that could help them to overcome their challenges.

PROBLEM STATEMENT:

Evidences show occurrence of airline companies in Kolkata failed to develop motivational programmes because of its employees who resorted them to undergo strikes and lockouts. Employees are not willing to execute wholeheartedly because sometimes even their basic needs are not properly met which stops them from developing their higher-level needs like self-confidence and actualisation.

Cases show turnover and absenteeism rate is high in some companies in this industry because the employees feeling of attachment and drive to work in the business is suprisingly low. Evidences show that staff regularly make excuses to abstain themselves from work.

Cabin crews will be the backbone of the airline industry. There are plenty of cases which reflect that their performance declines because of long flying hours and therefore adversely influences customer relationship onboard. It really is hence the shortcoming of the airlines to handle their issues and motivate those to sustain their productivity.

Many airline offices in Kolkata do not have proper feedback mechanism, communication channel and hearing sessions to address the issues of employees. Hence the HR department is not being able to track and understand the motivating factors that will drive the employees to provide their finest. Thus it directly builds a gap between top management and the employees which reflects in the employee's attitude when dealing with customers.

Demands like increase of wage, revision of pay packages, pay cut in enough time of recession also resulted in unionism and unproductive work. Pilots of public sector airlines refused to fly because cabin crews were earning at par with them which they felt degrading.

Recently Jet Airways did a pay cut from the salary of many Kolkata employees because of the financial crisis. Critics argued that a company shouldn't take these steps as it affects employee's morale. This recent case made a foul cry in the sector which led Mr. Naresh Goyal, MD to apologise the employees in his press statement.

Some of the HR department of some airlines branches in Kolkata is orthodox while designing the compensation package and will not involve many compulsory schemes and allowances which impacts the employee's motivational level and causes them to provide inefficient work.

Thus we can see there are issues in this industry in Kolkata which must be sorted out. If these issues are addressed then your service degree of airline industry in Kolkata can be at par the other regional offices across the globe.

PROPOSED RESEARCH QUESTIONS:

  • Q1. WHAT ACTS AS KEY MOTIVATING DRIVERS FOR AN AIRLINE INDUSTRY EMPLOYEES?
  • Q2. WHAT FACTORS NEED TO BE CONSIDERED IN ORDER TO MOTIVATE HIGH PERFORMERS?
  • Q3. DOES NON-FINANCIAL REWARDS PLAY A SIGNIFICANT ROLE IN THE MINDS OF AIRLINE INDUSTRY STAFFS?
  • Q4. DOES PERFORMANCE APPRAISAL AND FEEDBACK SYSTEM BECOME A MOTIVATING FACTOR?
  • Q5. WHAT ARE THE VITAL ELEMENTS OF A FULL COMPENSATION PACKAGE FOR AN AIRLINE INDUSTRY EMPLOYEE?
  • Q6. WHAT ARE THE EXISTING HR RELATED PROBLEMS IN THE AREA OF MOTIVATION AND COMPENSATION AMONG THE EMPLOYEES AND WHAT'S THEIR TAKE ON IT?

PROPOSED HYPOTHESES:

  • H1: COMPETITIVE REWARD, RECOGNITION, EMPLOYEE PARTICIPATION AND EMPOWERMENT MAY ACT AS KEY DRIVERS FOR A WORKER TO BECOME MOTIVATED.
  • H2: FACTORS LIKE CAREER PROGRESSION PLAN, TRAINING AND DEVELOPMENT, STOCK OWNERSHIP; CORPORATE INTRAPRENEURSHIP TENDS TO MOTIVATE HIGH PERFORMERS.
  • H3: NON FINANCIAL REWARDS LIKE PLUS SAGE, BONUS, STOCK OWNERSHIP, RETREATS, VACATIONS, ETC. IS LIKELY TO PLAY AN IMPORTANT ROLE IN THE MINDS OF THE AIRLINE INDUSTRY STAFFS.
  • H4: CHANCES ARE THAT, PERFORMANCE IF MEASURED HELPS THE EMPLOYEE TO UNDERSTAND WHERE THEY STAND AND WHERE THEY HAVE TO GO IN THE FUTURE WHICH WILL AFFECT POSITIVELY THE MOTIVATION LEVEL OF EMPLOYEES.
  • H5: A COMBINATION OF FINANCIAL ASWELL AS NON FINANCIAL REWARDS WITH TOP UPS WILL FORMULATE A WHOLESOME COMPENSATION PACKAGE.
  • H6: IMPROPER HR PLANNING, INSUFFICIENT JOB SECURITY, COMMUNICATION BARRIER, EQUITY AND MOTIVATION ISSUES CAN BE THE CURRENT PROBLEMS AND EMPLOYEES MIGHT WANT THESE ISSUES FOR BEING RESOLVED SINCE IT INVOLVES THEM.

BRIEF LITERATURE REVIEW:

MOTIVATION:

According to Gordon (1999) motivation refers to the inner force that drives a worker to some kind of an action. It is the way of getting the required outcome or derive from the employees in order to realize goals. In some instances workers can be motivated by their managers to be able to set up some extra effort to get the mandatory work done under a specified budget and time. If staff are appropriately motivated, they deliver better performance especially if it is backed by rewards and incentives.

According to Davis, K (1993), the term motivation requires finding out and comprehending the employees drive and needs since it originates in a individual. For example, if an employee deliver certain positive acts such as creating customer satisfaction in his own way the manager must reinforce the employee so the employee will be motivated enough to repeat a similar thing and keep maintaining consistency in his work in the future.

COMPENSATION

According to Foot and Hook, 2002, "compensation is a frequently used term which is referred to as payment, but means that the employee somehow has to be compensated for a loss or injury cost through work, rather than they are actually paid to work. " (Pp-267) Reward is also utilized by most of the business nowadays since this form of payment system tries to motivate employees to provide extra effort and then get rewarded accordingly. Remuneration also considered as same as the payment.

There are three types of compensation system:

  • Basic salary
  • Incentive system
  • Indirect compensation such as benefits.

Background of the Airline Industry in India:

The airline industry in India holds an eminent position and keeps growing at a rapid pace. In total it has 56 airline operating across India and 22 foreign airlines that are operating on the Indian Territory. The aviation sector in India constitutes over 450 airports and has 101 registered aircrafts.

The public sector airlines are Air India, Indian and the private sector operators are Jet Airways, Kingfisher, Spice Jet, etc. (www. antiessays. com/freeessays/16723. html). Estimates and statistics shows international and domestic passengers travelling across and over India is projected to grow annually at 12. 5% and 7% respectively in the foreseeable future. India occupies 8th position in world aviation market in 2007. The industry keeps growing at 27% per annum in India due to increased liberalization both in domestic and International market. The domestic airline passenger traffic for the year 2007-2008 shows a growth of 32. 51%. (http://civilaviation. nic. in/reports/eng total annual report2007-08. pdf). In spite of being truly a lucrative industry, the companies and the employees remain victim of improper compensation and poor motivation and in turn hindering the growth of the industry.

Background of Kolkata:

Kolkata is considered as second major cosmopolitan city of India. It has a blend of technology, socio political culture, heritage making the location called "City of Joy". This city being the administrative centre of West Bengal, it provides room for immense scope for tourism, aviation, economy, education, etc. The population of metropolis is nearly 5 million. There are numerous expats who migrate to Kolkata due to its vibrant opportunities in areas like tourism and hospitality. Kolkata has a significant international airport where all major airlines of the world fly. This compels the industry to keep its workforce by constantly motivating and compensating so that it can hold on to the high performers.

SIGNIFICANCE OF THE STUDY PROBLEM:

Compensation and motivation are two key strategic areas for just about any industry or company, which impacts the employer's ability to hire, retain an employee as well as get optimum level of performance from them so that it helps to meet up with the organization's strategic objectives. Therefore a proper system and balancing act is required for an industry to compete in this competing world.

As Dale Dauten said, "While business is a casino game of numbers, real achievement is measured in infinite emotional wealth; friendship, usefulness, helping, learning, or said yet another way, the one which dies with the most joys wins. "(Chandler, 2009). Hence we can recognize that how important motivation is for anybody to execute his duties.

POTENTIAL APPLICATION AND IMPLICATIONS:

As there are extensive issues and problems relating to motivation and compensation in the airline industry in Kolkata, India, the research problem has enough significance because if these issues can be studied and the root cause of the problems can be understood then companies will be able to extract the igniting brains which can only help the industry to explore new avenues in future. Even if the problems are researched in these areas and a system is accordingly developed then it can provide the business unintended advantages of fuelling its growth. Having done the study it can help us to understand where in fact the motivation comes from, accelerate things, creating a casino game, coaching the results, soften one's heart, learning to experiment, managing the basics first, etc.

RESEARCH METHODOLOGY AND DESIGN:

The types of research that i intend to use are the following

Causal research:

A causal type of research identifies and realizes which variable might be acting as the reason or cause of certain behaviour and act. This sort of research helps to understand the reason affect relationship among the list of variables. http://www. okstate. edu/ag/agedcm4h/academic/aged5980a/5980/newpage21. htm

Justification: This study aims at reasons for the motivation and compensation problems among the employees in the airline industry in Kolkata.

Co relational study:

This is also supported by a co relational study where the variable associated with the situation directly affects the situation.

Justification: The purpose of undertaking this study is to also find out the other variables like job security, performance measurement acts as a vital factor or not.

Quantitative Method:

According to encyclopaedia, on traditional scientific methods, this generates numerical data and usually seeks to establish causal relationships between two or more variables, using statistical solutions to test the strength and need for the relationships.

Justification: This technique will be used because it will give me an idea as to whether you can find any relationship between independent and dependent variables when the results would be produced.

Qualitative method:

According to Jacob, qualitative research is a generic term, which highlights the weight age of viewing variables in an all natural setting. Interaction and communication among these variables can be an essential aspect.

Justification: This technique is adopted in this study since it will generate different kind of responses and also descriptive views or perceived problem of the sample concerning this topic.

Pilot study:

A small-scale study conducted prior to conducting a genuine experiment; made to ensure that you refine procedures. It really is known as a tiny scale study that is completed to check a specific questionnaire, checklist etc, with the aim of minimising the likely problems in answering question also to determine the questions validity.

Justification: A pilot study may also be undertaken to discover the errors and other confusing elements which is present in the questionnaire and then it could be rectified and delivered to a bigger sample.

Data Collection Methods:

Primary data:

The data or the information that are collected specifically for the research or the study. It is original and customised in nature and it is not adapted by any secondary person other than the collector.

The data collection will begin from the month of September and October, 2009, the personnel who will be interviewed, the place and the ways of collecting data that i would be using are the following.

Questionnaire:

In this study, the principal data will be collected by means of communication, survey, emails, interview, and questionnaire. The goal of the analysis is to determine the status quo of the employment scenario through selection of current employees. Thus the effect would enable the researcher with valuable inputs and view that can be worked upon and improvised. I plan to give out clear and easily understandable questionnaire having done the pilot study so that wide ranges of information are gathered to perform the study. Questionnaire may very well be a four part questionnaire.

Questionnaire to be sent: 500

Expected return: 175

Interview:

Face to face structured interview would help me to get not only the views and opinions of the interviewee but also his behaviour and attitude. I plan to hold an obvious and easily understandable interview.

EMPLOYEE INTERVIEW: 20

EMPLOYER INTERVIEW: 5

Even Human resource departments, managers may also be interviewed. The interview will be achieved in India personally as well through telephonic conversation.

Secondary data:

In this type of data collection method the information that is used was already collected by some other researchers for some other specific purpose. Its acts like alternative way to obtain information which permits the researcher to answer certain question. (Sekeran, 2003)

In this study I will be using possibly periodicals, online databases, journals, books, magazines, statistical abstracts, census, company reports, etc.

PROPOSED ANALYSIS OF DATA:

QUANTITATIVE DATA:

For the goal of analysis of quantitative data, the info may be analysed using combo of CATEGORICAL DATA and QUANTIFIABLE DATA.

Categorical data will be ranked and classified into variable sets for e. g. , categories of employees like highly motivated employees, less motivated employees etc.

Quantifiable data will be utilized to assign the collected data in numerical form. For, e. g. , total total annual salary of the employee $25000, etc.

As we know there are two types in quantifiable data which are continuous and discrete, I will most likely use discrete data as analysis as it'll be easy and reliable when you compare motivating and compensation issues within the industry.

I plan to display the info in following manner:

  • BAR CHARTS
  • PIE CHARTS
  • TRENDS
  • HISTOGRAM
  • LINE GRAPH
  • FREQUENCY DISTRIBUTION
The data will further be analysed through
  • Univariate analysis which include mean, median, mode, standard deviations.

QUALITATIVE DATA:

According to Donald Campbell, "all research, whether or not there are quantitative elements in the findings or analysis, in the end has a qualitative grounding. "

Data will be analysed through:

  • CATEGORIZATION
  • UNITISATION
  • RECOGNISING RELATIONSHIP
  • PROVING RELATIONSHIP

ANALYSIS CAN BE DONE BY USING:

  • Factual statements
  • Opinion
  • Observation
  • Personal interview
  • Researcher's diary
  • Experts' view.

The final analysis may be done with the use of the next software which would assist me to come up with the results and help me to tabulate the info which will further enable me to comprehend the actual problem in the industry and what needs to be achieved to overcome the problems.

  • MS EXCEL
  • SPSS.

EXPECTED LIMITATIONS:

  • The answers of the sample which will be obtained through questionnaire are assumed to be true.
  • The sample may well not be convinced to share true facts of the issues.
  • The sample may show signs of distrust about the entire objective of the analysis.
  • Disclosure of names, identity of the personnel in the companies may be a limiting factor.
  • Motivation strategies and problems of the company are incredibly confidential in nature which the HR department may be not willing to talk about.
  • As it is student research, finance and time (5 months) can be limiting factor.
  • Some designs mentioned above may not be utilized if some unforeseen problems take place.

INDICATIVE MENTION OF THE KEY PAPER/ DATA THAT WOULD BE USED:

BOOKS:

  • Mello, J. A. (2002) Strategic Human Resource Management. South Western Thomson Learning, Canada.
  • Leopold, J. Harris, L. and Watson, T. (1999) Strategic Human Resourcing: principles, perspectives and practices. Financial Times Pitman Publishing, THE UK.
  • Foot, M and Hook, C, (2002), "Introducing Human Resource Management", Prentice Hall, 3rd edition, U. K.
  • Gordon, J. R. (1999), "Organizational Behaviour- a diagnostic approach", Prentice Hall, 6th edition, U. S. A.
  • Saunders, M. , Lewis, P. , Thronill, A. (2007), Research Methods for Business Students. , 4th edition, Prentice Hall, Spain
  • Sekeran, U. (2003), Research Options for Business- An art building Approach, 4th edition, Wiley, U. S. A.
  • Harvard Business Review on compensation (2001), Harvard Business School Press, U. S. A.
  • Chandler, S. and Richardson, S. (2009), "100 Ways to Motivate Others", Mc Graw Hill, Singapore.

ONLINE JOURNALS AND REPORTS:

  • www. antiessays. com/freeessays/16723. html
  • http://civilaviation. nic. in/reports/eng annual report2007-08. pdf
  • http://www. okstate. edu/ag/agedcm4h/academic/aged5980a/5980/newpage21. htm
  • http://www. encyclopedia. com/doc/1O62-quantitativeresearch. html
  • http://kolkataonline. in/Profile/Data/
  • http://www. mapsofworld. com/cities/india/kolkata/facts-about. html
  • http://www. economywatch. com/indianeconomy/indian-economy-overview. html
  • http://www. oag. com/graphics/birdgroup2. htm
  • www. icmrindia. com

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