Organizational Behaviour Pak Elektron Limited
Organizational Behaviour Pak Elektron Limited
Organizational Behaviour Pak Elektron Limited
LIMITED)
INTRODUCTION1
PAK ELEKTRON LIMITED: was established with the technical
collaboration of M/s AEG, West Germany, in 1956 and is the oldest
composite electrical equipment-manufacturing unit of Pakistan producing
Power as well as Consumer products. The present range of power products
includes Transformers up to 33 KV-5Mva capacity, Switchgears up to 33
KV, Squirrel Cage Induction Motors up to 40 H.P, Single Phase Energy
Meters, Small Generators, Shunt Capacitor Banks and Reclosers etc. In the
year 1980 the company expanded in to consumer durables with the
introduction of Window Type Air Conditioners and today also
manufactures Refrigerators, Deep freezers and Compressors etc. In its ever-
increasing quest for meeting market needs of Pakistan the manufacture of
color Television has now been started by its joint-venture company.
PEL-DAEWOO:
PEL, Products right form the beginning has been of a high standard
and the name PEL is synonymous with quality all over Pakistan. In fact
PEL has been more than just an industrial unit. It has been acting as an
institution working for the advancement and development of electrical
engineering know-how and technology in the country. Through its
apprenticeship schemes and training programmers for engineers and
technicians, it has produced hundreds of skilled workers and technicians
who have exhibited high proficiency in their profession, both in and outside
Pakistan.
PEL equipment has been used in numerous projects of national importance,
and over a period of years, PEL has had the privilege of getting its
equipment approved and certified form such well reputed international
consultants as:
1- Preece, Cardew & Rider, England.
2- Harza Engineering Company, U.S.A.
3- SNAM Progetti, Italy.
4- Societe Dumez, France.
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5- Ensa, France.
6- Miner & Miner International Inc. U.S.A and many others.
It was in early 70’s that PEL became known in overseas markets due to
its quality and the company started it exports to countries like Saudi
Arabia, Dubai, Abu Dhabi, Qatar, etc. Later on PEL supplied electrical
equipment to various countries in the Middle East, Far East and Africa with
great success.
At the same time within Pakistan, PEL equipment was chosen for such
vital projects as Mangla Power Station, Tarbela Power Station and
Combined Cycle Kot Addu Power Station. PEL for the first time in
Pakistan developed Dry Type Power Transformers up to 750 KVA rating,
meeting high safety and design standards.
Subsequently PEL developed portable Generating Sets and specialized
D.C Motors etc. of various capacities for Army use and entered in the
phase of manufacturing equipment meeting strict Army Standards.
In October 1978, PEL was taken by Saigol Group Of Companies, which is
one of the largest industrial and commercial groups. The Saigol Group
belongs to Saigol Family, which is an old business family and has
contributed a lot towards Pakistan’s industrial development. Saigol Group
remains a leading and forward-looking group and believes in continuous
development and growth. The result is a global business activity monitored
through various offices worldwide.
Meeting Saigol’s traditions, since it’s take-over by the group, PEL is a
company on the go”.
PEL’s first major power product being produced since 1956 is
DISTRIBUTION TRANSFORMERS, up to 33 KV and 5000 KVA
capacity. These oil-immersed transformers are suitable for both indoor and
outdoor installations, being manufactured as per I.E.C 76, B.S.S. 171 or
VDE 0532 standards. PEL transformers have been tasted in KEMA labs
(Holland), against Short Circuit Withstand in addition to Routine, Type,
and Impulse Tests in Pakistan.
PEL’s second major power product is High Tension and Low
Tension Switchgears being produced for indoor and outdoor installation
complying with the latest international specification i.e. IEC, BSS OR
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Refrigerators in three different colours i.e. Green, Beige and White and six
different models from 180 liters to 410 liters in single door and double door
design provides the consumers with a variety to select from according to
his needs and taste.
Also, during the year 1986-87, PEL, introduced in the market Chest
Type Deep Freezers, called “PEL FREEZE”. The units are designed to give
a high level of performance during the extreme climatic conditions of
Pakistan. Production of Deep Freezers in two different colours i.e. White
and Off- White, and six different models i.e. form 175 liters to 410 liters in
Single door and Twin door designs give the consumers a variety to select
from.
During 1993 PEL had set up a high –tech Compressor manufacturing
facility at PEL in collaboration with Necchi of Italy.
Production of High Tech Colour Televisions has also been started
and the product has been well received in the Pakistan market by PEL
joint-venture company M/s PEL-DAEWOO Electronic Limited.
In order to keep the high quality and standard of production PEL
quality control and inspection department keeps a very close check of the
quality control at various stages of production of equipment. A very strong
Quality Assurance and Quality Control (QA/QC) programmed has been
introduced for our normal productions and they are also in the process of
implementing ISO 9000 Certificate.
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The PEL has proper rules and regulations regarding recruitment. The personnel manager
together with board of directors forms the recruitment policy, which is strictly followed.
RECRUITMENT PROCEDURE:
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When there is any seat vacant in any department, the head of that
particular department informs human resource to place a proper person for
that particular job.
TRAINING OF EMPLOYEES:
ADMINISTRATIVE ROLE:
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made on the request of employees. In first case the union does not make
any influence, because the workers are already idle in their department and
it is better to transfer them instead of their layoffs. But if there is a problem
with the wage rate and salary with the transfer, then definitely the union
favours the employees, but this practice is not there.
And in second case when transfer is on the request of the workers
then there is a direct procedure of direct application in the name of
personnel manager with some solid reason and if the manager thinks it is
suitable then the workers are transferred.
Union:
A labor union is elected by the employees of PEL every year. The
union takes an active part in all activities. It negotiates with management
for employee’s problems.
Labor Laws:
Labor laws applicable in the country are also applicable at PEL. All
benefits imposed by the government of Pakistan and government of Punjab
is granted to employees.
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to developed good relation. In other words, we can say, union leader are
obliged by the management but it doesn’t mean that employees are
deprived their basic rights. PEL management itself tries to give possible
benefits to employees. Union bargain on annually bases with management
on different issues like.
• Allowances
• Promotion
• Fringe benefits
• Working conditions
• Health and safety
• Beneficiary and home
Promotion.
The present scenario particularly in PEL is that mostly there is not
much favoritism in the organization and promotion is based upon
performance and seniority. There is no influence of union regarding
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Benefits of Employees.
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Motivation
Motivation can be defined as under:
Definition # 1
“A set of process that arouse, direct, and maintains the human behavior
toward attaining some goals”.
Definition # 2
Definition # 3
Definition # 4
Definition # 5
IMPORTANCE OF MOTIVATION
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P = Performance
M = motivation
A= ability
E= environment
Motivation process
Motivation process depicts the sequence through which individual
reduces his or her tension created by unsatisfied need. Motivation process
starts with unsatisfied need and come to end when tension reduced as
follow:
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MOTIVATION FRAMEWORK
The basic motivation framework is shown as under
Need
deficiencies
Search for
Need
ways to
reassessment
satisfy needs
Employee
Reward or Goal-directed
punishment behavior
Performance
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MOTIVATION AT PEL
NEED THEORY OF MOTIVATION:
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Maslow separated the five needs into higher and lower orders.
LOWER-ORDER:
Physiological and security or safety needs were described
as lower-order needs.
HIGHER-ORDER:
Social, esteem and self-actualization were described as
higher-order needs. The difference between the two orders was made on the
premise that higher-order needs are satisfied internally (within the person),
whereas lower- order needs are predominantly satisfied externally (by such
things as pay, union contracts, and tonsure).
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CONCLUSION:
In fact, the natural conclusion to be drawn from Maslow’s
classification is that in time of economic plenty, almost all permanently
employed workers have their lower-order needs substantially met.
1- Basic needs.
2- Social needs.
3- Motivational needs.
The food, shelter, water, air, sex, health which are called
primary needs by researchers fall under category of basic needs while the
social needs are lone, values, companionship and belongingness. The
motivational needs are those needs which are necessary to motivate a
person to show his best such as performance appraisal, pay incentive,
working conditions
As for as needs are concerned the PEL Management is doing its best to
fulfill these needs.
For Example: -
• They give specific percentage of basic salary as house rent which
fulfill the need for shelter.
• They also provide pollution free environment to their employees,
which is basic requirement.
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• They give medical allowance for the employees and provide the
medical facility to the family of employee and they have a doctor
24 hours a day for each shift employees.
Similarly they accommodate the social needs such as: -
• They give a person his due respect.
• They work in a cordially atmosphere.
• They behave with their employees in a supporting and coordinated
manner.
• They provide group insurance, old age benefit and social security
facilities to satisfy the need of security and safety.
For capacitating motivational needs they do: -
• Performance appraisal.
• Money incentives i.e. bonus, pay increment.
• Honesty awards.
• Better working environment.
• Certificate of appreciation.
Satisfaction
Dis-satisfaction
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Herzberg’s Model
Motivational Factors
Satisfaction No-satisfaction
Hygiene Factors
Dis – satisfaction No Dis – satisfaction
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Satisfaction No satisfaction Dis – satisfaction No-dissatisfaction
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Motivational Factors.
Hygiene Factors
The other sets of factors, hygiene factors, came out in the response to
the question about dissatisfaction and lack of motivation. The respondents
suggested the pay, security, supervisor, and working conditions, if seen as
inadequate, could lead to the feelings of dissatisfaction when these factors
were considered acceptable, however, the person was skill not necessary
satisfied, instead, he or she was not dissatisfied.
MOTIVATIONAL FACTORS:
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1- RESPONSIBILITY:
Each and every employee of the organization is concerned as an
asset. The responsibilities are assigned to every employee from worker
level to management level. Every supervisor delegates responsibility and
authority which creates the feelings of self-significance in employees and
they are motivated to exert more efforts. For example manager human
resource that is the incharge of personnel departments delegates his
responsibilities and proportionate authority to training manager and
personnel manager. These two managers perform the personnel function
and report directly to MHR. So in this way responsibility creates the
feeling of self-significance and usefulness, which ultimately results in high
level of motivation.
2- RECOGINITION:
3- ADVANCEMENT:
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4- GROWTH:
There are equal chances of growth for every individual in the
organization. Promotions and layoffs are done solely on merit basis without
any discrimination, which motivate employees to give their best.
5- WORK ITSELF:
During the recruitment process the personnel department judges the
interest and the habits of the person and them accordingly they give the job.
In this way they assign that work to an employee, which is of his interest.
So whenever any person gets the work of his interest then work itself
becomes a source of motivation for him.
HYGIENIC FACTORS
1- COMPANY POLICY & ADMINISTRAION:
The policies, rules and regulations are not very much strict. But
policies regarding customers and seniors are somewhat strict. In PEL there
is decentralized style of management. Guidelines come from higher-level
management and middle management prepares and defines the policies
with consultation of every department.
On the very first day every employee gets a complete orientation
with company policies to be familiar with them. During that orientation
employee is told what he can expect from management and what
management expects from him.
2- SUPERVISION:
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4- WORKING CONDITIONS:
Working conditions are very much favorable for every worker.
Proper air-conditioning system maintains a moderate level of temperature.
Hot and cold water is available to every employee. There is no noise and
dust at work places.
6-JOB SECURITY:
Job security is an important hygienic factor to motivate employees.
There are two types of employees.
i) The lower level worker such as electrician, sweeper and
others.
ii) The middle and upper level employees.
The lower level workers fall under labor laws and all matters related
with them are delt according labor laws and acts. Middle and upper levels
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employees work on contract basis and this contract can be broken on one-
month notice from either side. The reasons, which can result in termination
of employees, are: -
• Lack of courtesy towards employees
• Continued violation of policies
• Insubordination/disobedience
• Frequent tardiness and / or absenteeism
• Un-cooperativeness with fellow employees
• Drunkenness/use of drugs
• Absence without leave for more than 10 days
• Abusive towards guest or employees
• Theft, fraud /dishonesty
• Striking work or inciting other to strike out work
7- INTERPERSONNEL RELATIONSHIP:
Working relationships with peers and subordinates is very much
positive. Every person behaves in a cooperative and coordinated manner
with other, which increase the level of confidence and trust among
employees.
EXPECTANCY THEORY:
The basic expectancy theory model was emerged from the work of
Edward Tolman and Kurt Lewin. Victor Vroom, however, is generally
credited with first applying the theory to motivate the workforce.
Expectancy theory argues that the strength of a tendency to act in a certain
way depends on the strength of an expectation that the act will be followed
by a given outcome and on the attractiveness of that outcome to the
individual. In more practical terms, expectancy theory says that an
employee will be motivated to exert a high level of effort when he or she
believes that effort will lead to a good performance appraisal; that a good
appraisal will lead to organizational rewards like a bonus, a salary increase
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or a promotion and that the rewards will satisfy the employee’s personal
goals. The theory, therefore, focus on three relationships
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prospects for pay raise, his or her expectancy is some where between one
and zero.
CONCLUSION;
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3- The administration always tries to give such rewards, which get positive
value from the employees. The management has cafeteria style plan
(written rewards) through which management motivates its employees. The
cafeteria plan is as under
OVERTIME
The employees have the facility of overtime, they spend over time
and management gives extra pay to them and by getting more, employees
become motivated and put their extra efforts to achieve assigned goals.
RETIREMENT BENEFITS
Company provides retirement benefits in the form of gratuity and
Provident fund. For Provident fund the company has scheme of 10%
contribution by employees and 10% by the company. Cumulative provident
fund is paid with interest to employees in cash when he retires or resigns
from the company.
Subsidized Meal.
Company provides the subsidized lunch to its workers and officers.
For night shift, it provides dinner to its employee in the factory mess.
Medical allowances.
Workers with salary Rs.3000/ month have medical facility under the
social security. The personnel having salary more than Rs.3000 monthly
are paid Rs.250 per month as medical allowances. For officers and high
grades there is no limit for medical allowances.
Loans
Loan are given to the employees from the provident fund, car loans
are also given to the executives level officers.
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Performance Award.
24th of December is celebrated every year as annual day. At that time
award of best attendants and special performance are given to most regular
employees and to those who perform an extra ordinary job.
Group Insurance.
The company insures workers. The company pays all premiums.
Conveyance Allowance.
Company pays Rs.3 per kilometer for car and Rs.1 per kilometer for
motorcycle in case of office work.
4- management always tries to link rewards with performance, for example
promotion of employees based on performance.
EQUITY THEORY
The equity theory of J. Stacy Adam is based on the simple premise
that people want to be treated fairly. The theory defines equity as the belief
that we are being treated fairly in relation to others and inequity ad the
belief that we are being treated unfairly in relation to others.
EQUITY PERCEPTION:
We can see the equity process through the following figure
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RESPONSES TO EQUITY/INEQUITY
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Comparison of
self with other Motivation to reduce
inequality.
Inequity 1-change inputs
2-change outcomes
3-after perception of self
4-change comparison
5-leave situation
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APPLIED MOTIVATION
JOB DESIGN:
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INDIVIDUAL NEEDS:
TASK ATTRIBUTES.
WORK SETTING:
JOB ENRICHMENT
“Job enrichment is designing the job by increasing employees level
of control and responsibility”
It is that sense through which employees feel a sense of control,
achievement, autonomy, freedom, and recognition. When there is job
enrichment then employees set their own standard of work and are
responsible for their performance.
Job enrichment was developed in late 1950s. It is based on
Herzberg’s two-factor theory of motivation. Herzberg thought that
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1- ACCOUNTIBILITY:
Workers should be held responsible for their performance.
2- ACHIEVEMENT:
Workers should feel that they are doing some thing worthwhile.
3-FEEDBACK:
Workers should receive direct and clear information about their
performance.
4- WORK PACE:
To the extent possible, workers should be able to set their own work
pace.
Job enrichment vertically loads the job that means there are not
necessarily more tasks to perform but more responsibility and autonomy.
HERZBERG’S VIEW:
The history of job enrichment starts from the Herzberg. He proposed how to
incorporate these characteristics into a job. We can see them in this table;
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PRINCIPLE MOTIVATORS
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1- SKILL CARIETY:
The degree to which a job requires a variety of activities so that an
employee can use a number of different skills and talents.
2-TASK IDENTITY:
The degree to which a job requires completion of a whole and
identifiable piece of work.
3- TASK SIGNIFICANCE:
The degree to which a job has a substantial impact on the lives to
work of other people.
4-AUTONOMY:
The degree to which a job provides substantial freedom,
independence and discretion to the individual on scheduling the work and
determining the procedures to use in carrying it out.
5- FEEDBACK:
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The above figure represents the model. Notice how first three
dimensions i.e. skill variety, task identity and task significance combine to
create meaningful work. What we mean is that if these three conditions
exist in a job, we can predict that the person will view his or her job as
being important, valuable, and worthwhile. Notice, too, that jobs that
possess autonomy give the job incumbent a feeling of personal
responsibility for the results and that if a job provides feeds back; the
employee will know how effectively he/she is performing.
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COMBINE TASKS:
The management of PEL combines the tasks and different skills of
employees, which increase skill variety and task identity.
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MBO PROCESS
MBO implemented through a series of discrete steps, which are
described in following ways.
STARTING MBO:
MBO must start at the top to be successful. Top management must
stand the program and take the first step by establishing overall goals for
the organization
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PERIODIC REVIEW:
During the period of time set for goals attainment (usually one year),
the manager periodically meets with each sub-ordinate again to check
progress. It may be necessary, for example, to modify goals in the light of
new information, to provide additional resources or to take other action
EVALUATION:
Finally, at the end of the specified time period, managers hold a final
evaluation meeting with each sub-ordinate. At this meeting, the two of
them assess how well goals were met and discuss why. This meeting often
serves as the annual performance review as well, determing salary
adjustment and other rewards based on reaching goals.
1-PARTICIPATION:
The management of PEL allows sub ordinates to participate in
decision-making. Meetings are held in which both upper body management
as well lower level workers and supervisors participate. The top
management presents an idea and sub-ordinates give suggestions and
effective suggestions are appreciated by executives. Specially when there is
any difficult task is to perform, then participation of sub-ordinates is
considered very important at PEL.
2-FEED BACK:
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It is very open practice at PEL that during working hours each and
every employee can receive feedback from his or her supervisor. When any
worker feels difficulty in his work, his supervisor guides him immediately
and in this way, worker can monitor and correct his own performance.
3-COMMUNICATION:
Communication is very important to achieve desired goals of the
organization. Top level management accept that, it is their responsibility to
communicate each and every thing clearly to their sub-ordinates regarding
any issue of organization. Goals are clearly defined to the workers and
through training management also tells how to achieve these goals.
CONCLUSION:
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SUGGESTIONS:
During over visit to PEL, we found there were some important
points those are not fulfilling by the management of PEL. By the
fulfillment of these factors the organization can increase performance of
their employees more.
The job enrichment of low workers is very important, but at PEL the
job enrichment is only at top level and middle level but the jobs of lower
level workers are not enriched. We suggest that the management should
enrich the jobs of lower level workers to achieve high-level performance
and to achieve their organizational goals.
Another point that we discussed with the employees is control over
work. They told us that they have control over their routine work not on
non-routine work. We suggest that organization should give control to
employees over their non-routine works, to increase their responsibility and
performance in these non-routine jobs.
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