Académique Documents
Professionnel Documents
Culture Documents
REPORT
MENTOR GRAPHICS
INSTITUTE OF
ADMINISTRATIVE
SCIENCES
SUBMITTED BY:
WAJEEHA NOUREEN
ROLL NO.:
02 (Regular)
Program:
B.S (Hons) Management
2010-14
Date of Submission:
7-8-2014
Contents
Acknowledgement:..........................................................................................................................1
Abstract:...........................................................................................................................................2
Section 1: Conceptual Review of MENTOR GRAPHICS:.............................................................3
Introduction to Mentor Graphics:................................................................................................3
1.2: Overview of HR department:...............................................................................................6
Chapter 2: A Managerial View of Mentor Graphics:.......................................................................7
2.1: Planning:...............................................................................................................................7
2.2: Organizing:...........................................................................................................................8
2.3: Leading:................................................................................................................................9
2.4: Controlling:.........................................................................................................................10
Structure and Design issues at MGP:.........................................................................................11
3.3: Structural Dimensions:.......................................................................................................14
3.4: Contextual Dimensions:.....................................................................................................14
3.5: Design Dimensions:............................................................................................................15
Chapter 4: Review of past performance through financial analysis:.............................................15
Section: 2: Core Internship Learning In Mentor Graphics:...........................................................15
Chapter 5: Human resource management:.................................................................................15
5.6: Orientation:.........................................................................................................................19
5.6: Training and Development.................................................................................................20
5.7: Appraising and Managing Performance:............................................................................23
5.8: Compensations and Benefits:.............................................................................................24
Section 3:
Conclusion..............................................................................................................25
Chapter 6:...................................................................................................................................25
6.1) SWOT Analysis..................................................................................................................25
6.2) Conclusion:.........................................................................................................................26
Recommendations:....................................................................................................................27
Chapter 7: Research Project...........................................................................................................27
1
Acknowledgement:
Millions of thanks to ALLAH ALMIGHTY who has given me strength, competency, opportunity
to complete this project. Then my parents who have always loved me and supported me
throughout my life.
I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals and organization. I would like to extend my sincere thanks
to all of them.
I am highly indebted to Mentor Graphics Pakistan for their guidance and constant supervision as
well as for providing necessary information regarding the project & also for their support in
completing the project.
I would like to express my gratitude towards my teachers & member of Mentor Graphics for
their kind co-operation and encouragement which helped me in completion of this project.
My thanks and appreciations also go to my friends in developing the project and people who
have willingly helped me out with their abilities directly or indirectly.
Abstract:
Internship report includes all the details about the concerned company Mentor Graphics
Pakistan. It is the subsidiary of American Engineering Company. In this report I have given the
brief introduction about the company, their departments, teams, management functions. I have
done my internship in the Human Resource department of concerned company.
Vision, Mission statement, organogram and SWOT analysis of Mentor Graphics Pakistan has
been mentioned in this report as all this information was given to me by the company itself
according to their policy. This report has explained a little about the management functions and
financial information about the organization. Since I worked in HR department I had not much
knowledge about their financial part as well as it was confidential information which company
do not share with internees as per policy.
So, I have explained their functions of HR department. I have described my learning during the
internship. Functions in which I actively participated were recruitment, orientation, training and
record keeping. I helped my supervisor in designing training need analysis questionnaire and
skills inventory sheet. Besides that I helped my manager in designing training for leadership
roles of managers. I was assigned the job of making and decorating boards for the Employee of
the month.
I also conducted a research during my internship on employee motivation. I had the consent of
my manager for doing that research. Subject matter of research was employees of MGP. I chose
them through random sampling method. All those employees helped me by filing out the
questionnaires. I shared my results and conclusion of research with the manager of HR
department and my supervisor. I gave presentation which also included recommendations about
how they can increase employee motivation through their rewards system.
1.1.2: Organogram:
CHAIRMAN
Syed Hassan Raza
Gillani
ENGINEERI
NG
DEPARTME
18 sub
NT
departments
IT
DEAPRTME
NT
4
Employees
FACILITIES
DEPARTME
NT
3
Employees
HUMAN
RESOURCE
2
Employees
Actually no hard and fast hierarchy exists in this organization. The main function of
MGC is engineering work. There is team structure working in this department. The
hierarchy exists on the basis of experience.
s e n io r
e n g in e e rin
g
m anager
e n g in e e rin
g
m anager
te c h n ic a l
le a d e r
s e n io r
s o ftw a re
d e v e lo p e r
s o ftw a re
d e v e lo p e r
Different types of teams are formulated for different projects. Finance department is outsourced
and it is controlled by India. Marketing department does not exist here. Facilities department
which is mostly known as logistics or admin department has employees. There are two people
working for the IT department.in this organization there is no clear chain of command and
usually wide spans of control.
Vision:
Grow Profitably
1.2.2: Culture:
Mentor Graphics is a very friendly place to work in. It provides all the cultural competence to its
employees so, they can work in safe and friendly environment. Some of its policies to maintain
its culture are as follows:
Open working atmosphere:
If any employee have problem regarding any matter or issue, he/she can simply go to the
relevant person and discuss the matter. HR manager and team are always there to help them.
Issues and problems are immediately catered and acted upon.
Smoke free environment:
It is not allowed to the employees and the staff to smoke in the office premises. There are other
places like roof which is designated for this purpose. This policy is to ensure clean and healthy
working environment.
Drug free workplace:
6
It is strictly prohibited to use drugs in office. It can get towards penalty as well.
Growth oriented environment:
Employees of the organization are highly appreciated and encouraged to develop themselves. It
is the core policy of Mentor Graphics as well to invest in research and development. It has spent
approximately $2 billion in R&D department in last 10 years.
Winning ethically:
Mentor Graphics especially focus on the business ethics which its employees have to follow in
order to maintain their reputation. It excels in its ethical working. So, each and every stake
holder has to follow it.
Recruitment
Hiring
Orientation
Training and development
Appraisal and evaluation
Compensation and benefits
Maintaining work culture
Motivating employees
Promotion
Communication and coordination
In HR department planning process are mostly focused on the interview schedules. For this
purpose manager has to check the availability of interviewer, candidate and meeting rooms etc.
Other planning processes are the advanced preparation for orientation of new employee and
doing the proper documentation. These are the routine tasks of HR which require extensive
planning.
2.2: Organizing:
2.2.1: Organizational Structure and Design:
Organization structure of MGP is not very complex.
Work Specialization: In MGP work is not divided in to same routine tasks. In fact all the work
is project based. In each different project they need different skills set. That is why there is a lot
of rotation within teams according to the requirement.
Departmentalization: In MGP departmentalization is usually either function based or product
based. All the management is divided on the basis of functions and engineering teams are mostly
based on the product or service they are making or designing.
Chain of Command: There is no clear chain of command. There are mostly self-managed and
cross functional teams. Authority does not travel in a straight line from to bottom. Employees
freely communicate with each other. There is mostly one team leader.
Span of Control: In MGP span of control are very high. Only one leader controls the team of
engineers. Employees have autonomy.
Formalization: There are rules and company policies which must be followed in performing
tasks and activities. But there is no strict formalization. Employees can make variations and add
creativity to their work.
8
2.3: Leading:
2.3.1: Groups and Teams:
Management and engineering are the two main functions and departments in MGP. In
management department main teams are HR, Facilities, IT, Finance.
In engineering department there are total 17 teams working which include
Nucleus BSP
Connectivity
Linux Services
Tools
Hypervisor
QA
TME
VSTAR Porting
Middleware
Kernel
Middleware
9
UI & Graphics
SLE
MEL
Code Bench
Web Portal
Program Manager
2.4: Controlling:
2.4.1: Basic Controlling Authorities in MGP:
As there is matrix structure working in MGP so, there are mostly team leaders who control their
teams and are responsible for their working.
The basic controlling authority of MGP is the position of Managing Director which is currently
filled by Syed Hassan Raza Gillani. On the engineering side position of Managing Operations is
responsible and controlling authority. Mr. Zeeshan Altaf is doing his responsibilities for this
position.
Penalties
Withholding of increments or promotion for a specific time not exceeding than 1
year
Demotion
Suspension without pay
Dismissal from service without payment of any compensation
11
Ms. Ghazala
Butt
Finance
IT
Ms.
Mubashra
Arif
Mansoor
Triq
Imran Asad
12
Muhammad
Ishtiaq
Services
Facilities
Muhammad
Shahzad
Mukhtar
Shiekh
Muhammad
Masood
Athar Ali
S e n io r E n g in e
O p e r a t io n s
M a n a n g e r
Engineering department:
Nucleus
BSP
Middleware
Connectivit
y
QA
UI &
Graphics
T
ools
Linux
Services
SLE
MEL
Code
Bench
13
3.3.2: Specialization:
In MGP work is not divided in to same routine tasks. In fact all the work is project based. In each
different project they need different skills set. That is why there is a lot of rotation within teams
according to the requirement.
3.3.4: Centralization:
MGP is a decentralized organization. There are so many decisions which are being made on daily
basis on each level of employment.
3.4.2: Technology:
MGP is a technologically very advanced organization. We can call it virtually a paperless
organization. This company deals in technology so, it requires very advanced software systems
and computer systems which are able to support the working of employees.
14
MGP has no competitor in this country. Virtually they have no market in Pakistan either. They
rarely need to do their external analysis. Market of its products mostly lies in Europe or
America.
As far as concern of market support so, software required to develop their products are mostly
from headquarters of company. Skills needed to do these products are rare as well.
There are no further departments or divisions on HR Department of MGP. It has only two
employees. HR department reports to HR department in Japan of Mentor Graphics.
Responsibilities are divided in both members of this team.
16
Job title: web application developers for contractual position who should able to design,
develop, maintain web services and web applications meant to be delivered on both desktop and
embedded devices.
Qualification:
Bachelors of CS/CE/EE
Role & Responsibilities:
Developing, debugging, staging, testing, and deploying of web based applications and
native client and mobile applications.
Development of UI, integration, maintenance and testing, including on remote servers.
Involve in API Architecture design, development and testing.
Flexibility to adapt to rapidly changing business environment which will include learning
new technologies
Skills & Competencies Required:
1 to 3 years of professional software/web development experience, including concepts,
practice and procedures.
Experienced with PHP, SQL, HTML/HTML5, JavaScript, AJAX, JQUERY, CSS3, Node.js,
and CSS).
SOA Technology: SOAP / XML / WSDL / REST.
17
Objective of employee referral: To encourage and reward employees who refer and recommend
candidates who have successfully gone through the recruitment and selection process and have
joined the organization.
In the post of ad it includes required qualification, job title, and required experience. Further job
description includes required skills, roles and responsibilities and address is given in the post.
MGC welcome everyone from anywhere. It ensures diversity through this policy.
Usually 15 days time is given to candidates so he/she can apply on the given address.
After that start the screening process of resumes. It occurs in two phases, firstly HR department
formulate a pool of suitable candidate and then forward this to concerned department. HR screen
the CVs on the basis of technical guidelines given by the concerned department. They only
select the technically strong candidates and then screen out them.
Next comes the interview phase. There are panel interviews with technical team. There is a
standard evaluation through which panel judge the candidate. There is technical evaluation,
Personality evaluation. Approximately 8 dimensions of technical evaluation and 4 dimensions of
personality evaluation are given on the form. Rating criterion is 1-5 plus there is overall rating
and overall remarks about candidates are also given on the form. Those candidates who have
been selected in the interview give further interviews either to HR department or to technical
teams. Within the 7 days time HR report the status of the interview to interviewee.
18
After selecting the final candidate, he has to give the joining date. There is margin of 30 days in
joining date mostly. In case of contractual employee this is the last step but in the case of
permanent employee there are negotiations on the pay package.
Reference checking:
When an employee is selected after a number of technical and personality interviews to be a
potential candidate then before taking him/her onboard reference checking is also ensured.
Pay package:
HR department usually formulate a pay package for the concerned position as per policy. Then
this package is offered to the candidate. If he is agree on it then the procedure is complete.
Otherwise HR department has to negotiate with him/her until both parties agree on the common
ground.
Budget:
There is budget allocated to HR for the recruitment and hiring process. There are direct and
indirect costs that incur during the whole procedure. Sometimes organization has to freeze its
hiring. This decision can be based on several reasons.
Principles:
Recruiting qualified personal
Recommendation by concerned department and HR
On the basis of strict standards
5.6: Orientation:
Mostly in Mentor Graphics 1 day orientation plan is being followed. It covers usually
documentation part, signing contract followed by the presentation about history, basic rules, and
policies, evaluation methods. Its like giving a birds eye view about organization and its working
procedures.
It includes tea breaks, lunch breaks as well.
19
On the next half employees are given a survey of whole office and meeting with key people. It
also includes survey of all facilities. There is a proper orientation plan which is being followed in
order to conduct it smoothly.
I week orientation plan is mostly being followed in case of mass recruitment. Many
organizations delay their recruitment process and do it after some period or years. In this case
they need long orientation period to fulfill the requirement.
The other case is of government organizations where a number of departments are working. In
order to give the full introduction to new employees, there is the need of either 1week or 1 month
orientation plan.
In order to emphasize on any part of training, movie clips, speeches of great leaders can be used
as well.
Training Need Analysis:
I designed TNA questionnaire to analyze the training need of all employees in office. It was a
generic questionnaire of 15 questions. It covered soft skills and hard skills of employees. It was
quantitative and qualitative. It was done so the feedback of this questionnaire can be measured
on a standard scale. Soft skills were about leadership, motivation, communication, analytical
skills and decision making ability.
Scale which was used in the questionnaire was Likert Scale. It was labeled as 1 for often, 2- Very
often, 3- almost, 4- frequently and 5- regularly.
21
22
Peer evaluation
Peer comparison
Self-evaluation
360 degree appraisal
Managers evaluation and other related activities.
Evaluation ranks:
Performance 6 (role model, excellent)
Performance 5 (exceeding expectations)
Performance 4 (meeting all expectations)
Performance 3 (not up to the mark. It is followed by the 3 months evaluation,
written warning can be given as well)
Performance 2 (very low)
Performance 1 (learning about their role, beginners)
Performance evaluation is done annually through which decisions of promotions and bonuses
take place. But as the work done is mostly project based, so it is very important to keep pace
with the routine performance of each member in a team throughout the project. For this purpose
HR manager schedule routine meetings with the project team to be aware of everyones
performance.
Evaluation process is highly confidential.
23
Base salary
Variable incentive pay
Spot bonus/merit certificate/performance rewards
Withholding of increments or promotion for a specific time not exceeding than 1 year
Demotion
Suspension without pay
Dismissal from service without payment of any compensation
24
Section 3:
Conclusion
Chapter 6:
6.1) SWOT Analysis
Strengths:
Resources, meaning the available resources which are enabling the company to develop
and deliver the software which it sets out to provide to its customers.
Capabilities, that is the critical success factors which the company possesses and that give
it a competitive advantage.
Quality, which is quite clear as a term, referring to the quality of the products / services
provided by the company and to the quality of the internal organization of the company,
such as the quality of the business processes.
Efficiency, meaning how efficient the company is having a solid structure where all
different departments, units and processes are properly organized and communicate well,
in order to have a smooth operation of the company.
Innovation, which is about the level of a companys desire to invest in new technologies,
follow technological breakthroughs, keep up with the emerging business trends and in
which extend is part of the profits re-invest in research & development.
Weaknesses:
Longest tangible delivery time. The customer does not see anything but the whole
product when its ready.
Little opportunity for customer to preview the system.
Integration is the one big bang at the end.
Opportunities:
Threats:
25
6.2) Conclusion:
Mentor Graphics Pakistan (MGP) is an engineering firm with branches all over the world. When
I deeply studied this organization it is very difficult to point out the factors which make this
organization best in performance. When I studied about MGP, I am on the point that top level
management, policy makers had a huge contribution for MGP but the most important role is
played by Human Resource Department (HR).
The role of HRM is just like a hub to manage its human capital in order to meet the
organizational goals and objectives. HRM process in the organization involves all the
stakeholders to have their input in organizing, planning, developing and controlling the human
resource. Human resource department also forecast future HR needs (demand), forecast future
internal/external candidates (supply). Monitor and evaluate results and forecasting HR
requirements. There are different methods and approaches used to forecast HR need and
demands.
The working atmosphere of the bank is quite friendly. This very culture of the MGP is seen in the
norms of expected behaviors, values, philosophies, rituals and symbols used by its employee.
This culture and atmosphere have been evolved over a period of time. Managers and supervisors
must consider the culture of the organization as a key factor because otherwise excellent
strategies can be negated.
Recommendations:
The HR is also in process of computerizing its records which is good sign but it is going
on with small progress. Computerization must be done on early basis. This will help in
increasing efficiency of work don, decrease the stationary cost.
26
will of organization.
MGP should more focus on intrinsic rewards system as they are less costly and
sometimes more beneficial than extrinsic rewards. Combination of both types of rewards
is more motivating for employees.
Impact of reward and recognition on job satisfaction and employee motivation: Study
from the perspective of Mentor Graphics Pakistan
Motivation is such a factor that exerts a driving force on our actions and work. It is such a
dynamic in todays environment that explicitly creates and encompasses a positive impact on the
job. Within an organization, the best performance is feasible with most committed employees
that can only be achieved through employee motivation.
Traditionally most reward and recognition programs were vague and often given in response to a
managers perception of when an employee performed exceptionally well. There were usually no
set standards by which exceptional performance could be measured, and it could have meant
anything from having a good attitude, assisting another department, or being consistently
punctual. In current organizational settings this is no longer the case; as organizations understand
the great gains derived by linking rewards and recognition to increase employee motivation
hence achieving business strategies and goals.
27
Literature Review:
There is a large body of literature, including research literature, on rewards and recognition
programs. Many of the studies focus on the effects of rewards on task interest and performance
and are found in the literature concerned with motivation: both intrinsic and extrinsic motivation.
In intrinsically motivated behavior there is no reward except with the task itself. Reward and
recognition programs come within the discussion on extrinsically motivated behavior that occurs
when an activity is rewarded by incentives not inherent in the task (Deci, 1971).
Motivation:
Many contemporary authors have also defined the concept of motivation. Motivation has been
defined as: the psychological process that gives behavior purpose and direction (Kreitner, 1995);
a tendency to behave in a purposive method to achieve specific, unmet desires (Buford, Bedeian,
&Lindner, 1995); an inner force to gratify an unsatisfied need (Higgins, 1994); and the will to
accomplish (Bedeian, 1993).
The literature available on the field of motivation is extensive, and to cite Herzberg (1987, p.
109): The psychology of motivation is tremendously complex. There seems to be a great
interest of understanding human motivation and what drives employees to perform well for an
organization that has resulted in an abundance of theories (Steel and Knig, 2006).
Motivation is operationally defined as the inner force that drives individuals to achieve personal
and organizational goals. Understanding what motivates employees is one of the key challenges
for managers. Although it is not possible directly to motivate others, it is nonetheless important
to know how to influence what others are motivated to do, with the overall aim of having
employees identify their own welfare with that of the organization (Bruce and Pepitone, 1999).
Oosthuizen (2001) stated that it is among the functions of the manager to motivate the employees
successfully and influence their behavior to achieve greater organizational efficiency. La Motta
(1995) is of the view that performance at the job is the result of ability and motivation. Ability
formulated through education, equipment, training, experience, ease in task and two types of
capacities i.e. mental and physical. The performance evaluation and rewards are the factors that
proved to be the bonding agents of performance evaluation programs. According to Wilson
28
(1994), the process of performance management is one among the key elements of total reward
system.
Another effect of a high level of employee satisfaction within an organization is that it leads to
what is commonly known as organizational citizenship behavior (OCB). Employees are expected
to behave appropriately and job performance is an important aspect of this behavior (Koys,
2001).
Many studies cite Herzbergs Motivation-Hygiene theory (1987), Vrooms Expectancy theory
(1964), Maslows Need theory (1943) and Lockes Goal setting theory (1978). The notion of that
new theories mostly build on old literature is supported by Locke and Latham (2004) who
discuss the method used in work motivation research, and also Lathams and Pinders (2005)
review of work motivation theories from research between the years 1993 and 2003. Latham and
Pinder (2005) conclude in their review that primarily three theories dominate the literature from
this time. These are goal setting, social cognitive and organizational justice theories. The
researchers also state that few fundamentally new models of work motivation have emerged
during this time, in comparison with the groundbreaking impact of Maslows need theory,
Vrooms expectancy theory and Lockes goal setting theory.
Rewards:
A well designed and functional reward system is an efficient way to increase employee work
motivation. The appropriate type or reward is developed in accordance to the companys reward
philosophy, strategies and policy. However, it might be challenging to find the right way to
combine the companys integrated policies and practices together with the employee
contribution, skill and competence. (Armstrong, 1999, p.569-570).
29
Entwistle (1987) is one of the views that if an employee performs successfully, it leads to
organizational rewards and as a result motivational factor of employees lies in their performance.
Majority of the organizations require their employees to work according to the rules and
regulations, as well as, job requirements that comply with full standards. The investigations that
have been conducted to find the relationship between compensation and individuals were
focused to increase the performance of employees (Ciscel, 1974). The highly motivated
employees serve as competitive advantage for any company because their performance leads an
organization to well accomplishment of its goals. Among financial, economic and human
resource, human resources are more vital that can provide a company competitive edge as
compared to others. According to Andrew (2004), commitment of all employees is based on and
rewards and recognition. Lawler (2003) argued that prosperity and survival of the organization is
determined through the human resource how they are treated. Most of the organizations have
gained the immense progress by fully complying with their business strategy through well
balanced reward and recognition program for employee. Deeprose (1994) argued that the
motivation of employees and their productivity can be enhanced through providing them
effective recognition which ultimately results in improved performance of organizations. The
entire success of an organization is based on how an organization keeps its employees motivated
and in what way they evaluate the performance of employees for job compensation. Managing
the performance of employees forms an integral part of any organizational strategy and how they
deal with their human capital (Drucker as cited in Meyer & Kristen, 2005). Today where every
organization has to meet its obligations; the performance of employees has a very crucial impact
on overall organizational achievement. In a demotivated environment, low or courage less
employees cannot practice their skills, abilities innovation and full commitment to the extent an
organization needs. Fredman (1978) is of the view that when effective rewards and recognition
are implemented within an organization, favorable working environment is produced which
motivates employees to excel in their performance. Employees take recognition as their feelings
of value and appreciation and as a result it boosts up morale of employee which ultimately
increases productivity of organizations. Csikszentmihalyi (1990) posits a view that the state of
satisfaction and happiness is achieved by the employees only when they maximally put their
abilities in performing the activities and functions at work. In this way motivated employees are
retained with the organization thus reducing extra costs of hiring.
30
Flynn (1998) argued that rewards and recognition programs keep high spirits among employees,
boosts up their morale and create a linkage between performance and motivation of the
employees. The basic purpose of recognition and reward program is to define a system to pay
and communicate it to the employees so that they can link their reward to their performance
which ultimately leads to employees job satisfaction. Where job satisfaction as defined by Lock
(cited in Grunberg, 1979, p.3), is a pleasurable positive emotional state as a result of work
appraisal from ones job experiences. The reward include the financial rewards, pay and benefits,
promotions and incentives that satisfy employees to some extent but for committed employees,
recognition must be given to keep them motivated, appreciated and committed. Baron (1983)
argued that when we recognize and acknowledge employees in terms of their identification, their
working capacity and performance is very high. Recognition today is highest need according to
most of the experts whereas a reward which includes all the monetary and compensatory benefits
cannot be the sole motivator for the employees motivation program. Employees are motivated
fully when their needs are met. The level of motivation of employees increases when employees
get an unexpected increase in recognition praise and pay (La Motta, 1995). In todays dynamic
environment the highly motivated employees serve as a synergy for accomplishment of
companys goals, business plans, efficiency, growth and performance. Motivation is also required
when the organizational workforce has not a good relationship pattern. Employees relation with
employees and with supervisor is a key ingredient of the inner strength of the organization. The
ability of supervisors to provide strong leadership has an effect on job satisfaction of employees
(Morris, 2004). The study relates how the impact of incentives, rewards and recognition
programs derives employee motivation.
Rewards play a vital role in determining the significant performance in job and it is positively
associated with the process of motivation. Lawler (2003) argued that there are two factors which
determine how much a reward is attractive, first is the amount of reward which is given and
second is the weightage an individual gives to certain reward. Deeeprose (1994, p.3) is of the
view that good managers recognize people by doing things that acknowledge their
accomplishments and they reward people by giving them something tangible. Fair chances of
promotion according to employees ability and skills make employee more loyal to their work
and become a source of pertinent workability for the employee. Bull (2005) posits a view that
when employees experience success in mentally challenging occupations which allows them to
31
exercise their skills and abilities, they experience greater levels of job satisfaction. Incentives,
rewards and recognition are the key parameters of todays motivation programs according to
most of the organizations as these bind the success factor with the employees performance.
Robbins (2001) asserts that promotions create the opportunity to personal growth, increased
levels of responsibility and an increase on social standing. Similarly, the recognition which is a
central point towards employee motivation adores an employee through appreciation and assigns
a status at individual level in addition to being an employee of the organization. Barton (2002)
argued that the factor in Fortune best companies which discriminates companies from the others
is recognition that is the most important factor of their reward system. Wilson (1994) stated that
the conditional recognition is that type of recognition is that type of recognition which one has to
earn by his own efforts and which is gained by some sense of achievement of an action or result.
Employees are definitely closer to their organization as their job can become the major
satisfaction in their life after having a proper reward and recognition at their job. Rewards
enhance the level of productivity and performance at job whether its a first time performance or
repeated activity at the job in a progressive way. Research by Eastman (2009) consistently found
that intrinsic motivation is conducive to producing creative work, while extrinsic motivation is
unfavorable to producing creative work. Gange (2009) suggested a new model of knowledge
sharing motivation which provides suggestion for designing five important human resource
management practices including staffing, job design, performance and compensation systems,
managerial styles and training. Ali and Ahmed (2009) confirmed that there is a statistically
significant relationship between reward and recognition offered to employees were to be altered,
and then there would be a corresponding change in work motivation and satisfaction.
An essential difference between a tangible reward and a non-tangible reward is the time period
required for it to be beneficial to the employee. A tangible reward is considered short term since
the employee is able to receive it the instant the employer grants the reward. In contrast, a nontangible reward is often more long term. For instance, receiving enough compliments can in time
result in a promotion to a better paid position however; the moment directly following the
compliment is not of limited value to the employee. Interestingly, Anderson and Jerman (1979)
found that the actual realization of the career growth opportunity is not a condition that has to be
satisfied. The opportunity alone, or perception of the employee, is enough to give this reward
value.
32
A last remark about non tangible rewards is that they are likely to be more valued after the lower
order needs, which are related to extrinsic rewards such as a financial reward, have been largely
satisfied (Deci, 1972; Anderson and Jerman, 1979).
2. Problem statement:
From the above literature the following hypotheses emerge:
H1: Higher the employee reward will lead to higher motivation.
H2: Higher the employee reward will not lead to higher motivation
Context:
When I did my internship in Mentor Graphics I observed that it is a difficult task for a manager
to keep his team motivated. It is very important to know what are the factors which can help to
keep an employee motivated. As there are so many things which should be considered but due to
certain limitations I have only picked up only one facet which I think is most important in this
area and it should be given importance in order to keep employees motivated.
33
There are two specific types of motivation: financial and non-financial. I will focus on ways the
employers can motivate their employees using financial means as well as non-financial
recognitions. In this day in time, there is not always a plentiful amount of money to spend on
motivation, so it is important to understand how managers can make their employees feel
important without breaking the bank. Both types need to be executed in a strategic way to
provide the best results.
The purpose statement of this research is to examine the importance of motivation in a large
firm, in the business world, covering in particular: employee motivation and it will be
concentrated on the different variables that lead to motivation and job satisfaction. Intrinsic and
extrinsic motivation was determined using a scaled work preference inventory.
Motivation has variety of effects. These effects may be seen in the context of an individuals
physical and mental health, productivity, absenteeism and turnover. Employee delight has to be
managed in more than one way. This helps in retaining and nurturing the true believers who can
deliver value to the organization. Proliferating and nurturing the number of true believers is the
challenge for future and present HR manager.
5. Methodology:
5.1) Research Design:
This research is basically a hypothesis testing. I have developed a hypothesis and an alternate
hypothesis to nullify the hypothesis. Now this research will help me to test either which one of
these is correct. The result of this research study will tell that either really any relationship exists
among these variables.
This is a correlational study because we have the variables and now I want to confirm that
either any relationship exists between those variables of job satisfaction and employee
motivation.
34
It is a field study. I was doing my internship in the concerned organization and during that time I
conducted that research through questionnaires.
5.2) Population:
Population is basically the total number of employees working in Mentor Graphics at the time of
my internship period. The total number of employees at that time was approximately 120. So, it
is our population.
emailed questionnaire to the respondents. The reason behind this choice was that number one this
option was cheaper. Secondly keeping in mind the culture of the organization it was
recommended that this option would be more feasible to collect reliable and valid data. This is
the option which is widely used in the organization for the purpose to fill the questionnaire.
6. Limitations of Research:
Due to scope of this research three are several limitations that need to be addressed. First, it has
to be noted that although there are some evidence in the literature on existing relationship
between employee motivation and rewards and recognition, it should not be taken as granted that
the factors chosen as motivating will also be important for each and every employee. The main
question in survey asked about the most motivating factor will not remain so in the future life of
the employee.
Second the present study limited its sample to the employees of one organization only of Mentor
Graphics Pakistan Limited. This may hinder the generalizability of the results. In other words,
results should be generalized only to the population of employees from that particular
organization. However it is the possibility that employees from other organizations would give
the similar answers.
Third the list of factors used in questionnaire was made on the basis of previous researches on
that topic. However disadvantage of choosing this particular form of questioning is a risk to miss
some factors that are important but not listed.
Delimitations:
While doing the literature review for this research I have not considered books because I
had not the enough time and resources to review the books which are written on this topic
otherwise it would be more extensive for me. I had not the access to a large number of
books as well.
I have not done this research on the whole population due to limitations of time. To
consider the time limits I have collected the data from the limited people who were part
of my sample.
36
Research methodology only includes questionnaires. I have not used interviews because
most of the managers were not willing to give interviews as they are more time
consuming to conduct.
37
Table:
Extrem
ely
disagre
e
Do
not
agree
Somew
hat
agree2
1
17
17
16
19
15
14
Salary
Impact of rewards on
performance
Incentives
Agree
Fair pays
18
1
38
Extrem
ely
agree
19
17
16
Graphical representation:
20
18
16
14
12
Number of Responses
10
Do not agree
8
6
Somewhat agree2
Agree
4
2
extremely agree
0
Relation in reward and motivation
Factors and Questions
Respondents were further asked to state the kinds of rewards they think will induce job
satisfaction. Results revealed the following: 14 respondents indicated allowances and increases
in salaries, 2 respondents, stated incentive package like accommodation, 4 respondents stated
promotion of workers.
39
Conclusion:
Mentor Graphics Pakistan employees reward system is analyzed, when the information obtained
is looked in to out of the particular 17 employee have high motivation, at the same time 3
employees moderate motivation in reward system. That is 85% employees are high and
moderate Motivation. The rest 15% have replied unfavorably. Therefore on the reward system of
this organization particularly reward system of this international subsidiary is very attractive.
The main reason for the motivation is that the reward system for the staff of the organization.
When the employees needs are fulfilled satisfactory through reward system, the employees
motivation achieved increases.
There is positive relationship between the rewards and Employee Motivation of the staffs of this
organization and that is between the intrinsic reward system and the Motivation also positive that
extrinsic reward system and Motivation. Therefore, as a whole, there is a considerable positive
relationship between the total reward system and the Employee motivation of the Employee of
the Mentor Graphics.
In this Study, every element relates with the rewards of the employees of Mentor Graphics was
analyzed. Further, Higher performance consistency achieved, Willingness to take decision,
recognition, Growth in job, are found to be the determining factors that influence employees
40
Key findings:
H1:-Higher the employee rewards lead to higher the Employee Motivation.
On the basis of 85% Employees of this organization who have High Motivation; this hypotheses
is confirmed effectively. Hence it illustrates that when both intrinsic and extrinsic rewards
provide, the Motivation of the employees of this organization also slightly improved and vice
versa.
H2:-Higher the employee rewards will not lead to higher the Employee Motivation.
Here this hypothesis is not accepted, because there is a positive relationship found between the
reward system and the employees motivation. That is when the employee reward system
increases, Motivation also increases through the performance consistency achieved, Willingness
of responsibility, challenging work, growth in job.
Recommendations:
Mentor Graphics must be careful in the following factors to increase the Employee motivation of
the Employees by redesigning the reward system.
1) Work environment of this organization must try to create supportive, pleasant full working
environment internally, in order to satisfy the staff and work with efficiency.
2) Employees should be trained according to the present content of the environment.
3) The facilities to be provided to the employees in order to enhance their Employee motivation,
job abilities.
4) This organization can build up the commitment among employees by rewards and achieve
both individual and Organizational objectives.
5) Employees with one another vary individually, according to physically and mentally. So, top
management must identify their different types of needs and fulfill them.
41
6) Regarding the salary and other allowances, Management intensifies the salary scheme of
employees. It should be supported to up great their standard of living. Further, the following non
monitory awards should also be increased.
I.
II.
III.
IV.
V.
Holiday pay
Bonus
Pension benefits
Overtime pay
Proper training and promotion also to be given to the staff of this organization in order
VI.
VII.
responsibility and financial rewards are not assigned to them in a disciplinary way.
The facilities provided to the employees should be compared with that of other private
Organization and facilities similar to it or more to be provided quickly.
Summary:
I have done this research in order to find out the relation between rewards and motivation of
employee. My problem statement is regarding these two factors in which motivation is a
dependent factor and rewards are independent factors. To complete my research I thoroughly
examined literature review to find out the different definitions by different authors and what
research has already been done on this topic. My literature review is mostly based on articles,
journals and research thesis.
To test my hypothesis I design a questionnaire myself. This questionnaire was designed so I can
collect data about the perspective of employees of the concerned organization. This questionnaire
is based on Likert scale and it has total 10 questions. I have kept the questionnaire short and
precise so employees have no difficulty in filling the questionnaire. I randomly selected subject
matter. All the employees cooperated with me and helped me in getting the form filled.
The data I collected through my questionnaire then I used to interpret the results. I summarized
data in form of a table. With the help of that table I made graphs and pie chart. Those graphical
representations help to understand the results more comprehensively. By analyzing the data
42
collected it has confirmed the hypothesis that relation exists between rewards and employee
motivation. In this case alternate hypothesis has been nullified.
In the end I have given the conclusion of my research and in the light of that conclusion I gave
recommendations to improve the employee motivation with the help of extrinsic and intrinsic
rewards. These recommendations can be applied partially or completely based on the feasibility
for the organization. Mentor Graphics has already a very good compensation and recognition
program and their employees motivation level and retention is also very high in return. This
research can also be applied on any other organization.
Appendix:
Name
Designatio
n
Job Title
How long
you have
worked for
company
How long
you have
held your
current
position
Please fill the questionnaire below. This is for the research purpose regarding
impact of rewards on work motivation. Thank you
Please rate your job satisfaction according to the scale given below:
Strongly
disagree
Do not Agree
Somewhat
Agree
43
Agree
Strongly
Agree
QUESTIONAIRE:
You are satisfied with the work you are doing and rewards which you are
getting on your performance?
1
In your daily work you are free to make decision and act on them?
1
Recognition by supervisor for a job well done makes you perform even
better?
1
How satisfied are you from the type of compensation plan you are getting?
1
Do you feel that rewards you get impact your performance at work?
1
44
The degree to which I am fairly paid for what I contribute to this company is
very important to keep me motivated.
1
2
3
4
5
Pay for performance is much more important as compared to equal pay for
every one?
1
Please select the most appropriate option according to your opinion among
the following:
Which of the following factor is most important among the following to
increase employee motivation?
Allowances and increase in salary
Incentive packages
Workers promotion
45
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Deci, E., & Gagne, M. (2005). Self-determination Theory and work motivation. Journal of
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Kovach, K., (1995). Employee Motivation: Addressing a crucial factor in your organizations
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Rungtusanatham, M., & Anderson, J. (1996). Clarification of conceptual and methodological
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