003768-0001 May 2018

Business Management Internal Assessment

Name: Vraj Chopra

Candidate no: 003768-0001

Word count: 1499 words.

Research Question:

“Can Ruhi Creation improve their labor efficiency and productivity by adopting

motivational techniques?”

1
003768-0001 May 2018

LETTER OF ACKNOWLEDGEMENT

2
003768-0001 May 2018

ACKNOWLEDGEMENT

I would cordially like to express my gratitude towards all the people who are directly or

indirectly associated with my BM IA written commentary for helping me as it wouldn’t have

been possible without their support and help.

My appreciation and thanks to the complete organization of Ruhi Creations. The owner, Mr.

Kishor Chopra who permitted me to select his business organization for my BM IA written

commentary and took out time from his occupied schedule, to provide me with all the

information and documents that were required for my commentary. Along with him, I would also

like to thank the manager and the workers to give their precious time to fill the questionnaire

given to them.

Especially I would like to thank my business management teacher for her generous support and

motivation at each and every step of my business IA written commentary. Once again I would

like to thank everyone for their great support in completion of my commentary and I would like

to wish good luck to Ruhi Creations for their future prospectus.

3
003768-0001 May 2018

Table of Content

ACKNOWLEDGEMENT ............................................................................................................................... 3
INTRODUCTION ......................................................................................................................................... 5
FACTS AND FINDING ................................................................................................................................. 6
ANALYSIS OF FINDINGS ........................................................................................................................... 11
SWOT ANALYSIS .................................................................................................................................. 14
FISHBONE TOOL .................................................................................................................................. 16
1. MOTIVATIONAL THEORIES .................................................................................................................. 17
1.1 ALDERFER’S ERG THEORY .............................................................................................................. 17
1.2 Cognitive Evaluation Theory ......................................................................................................... 20
1.3 MAYO’S THEORY OF HUMAN RELATION....................................................................................... 22
CONCLUSION........................................................................................................................................... 23
BIBLIOGRAPHY- ....................................................................................................................................... 24
SUPPORTING DOCUMENTS -................................................................................................................... 26
APPENDIX 1 – .......................................................................................................................................... 26
APPENDIX 2 – .......................................................................................................................................... 27
APPENDIX 3 – .......................................................................................................................................... 31
APPENDIX 4 – .......................................................................................................................................... 36
APPENDIX 5 – .......................................................................................................................................... 39
APPENDIX 6 – .......................................................................................................................................... 40

4
003768-0001 May 2018

INTRODUCTION

Karl Marx, in his writings on class struggle, observed that struggle for resources also exists in

capitalistic societies between business owners and workers.1 Traditionally, workers receive

wages as a compensation for their hard work but now they believe that they should receive

profits because of their talent and ability to ensure firms growth.

This struggle reduces the efficiency of the workers and demotivates them which is exactly the

situation with Ruhi Creations. Ruhi creations(local business organization) a sole proprietorship

under the ownership of Kishor Chopra, manufactures imitation jewelry. They are facing

problems with production output volume as it is labor intensive firm.2 But as an individual

business entity they can’t share profits3 amongst the workers. As the firm believes in growing

organically it requires large portion of net profit4, so it is therefore necessary to adopt different

strategies and techniques which will help in motivating and developing positive feeling towards

the organization. Thus, improving efficiency of human capital effectively increases the firm’s

productivity. Hence, my research stands as “Can Ruhi Creations improve their labor

efficiency and productivity by adopting motivational techniques?”

I have used both qualitative and quantitative approach to collect data regarding the organization

by distributing questionnaire within the workforce and taking interview of the owner. Also

financial data and few bills have been retrieved from the organization. This data has then been

processed and used to formulate SWOT and Fishbone diagram to understand the firms position

and problems. Once a concrete knowledge of the firm was obtained through tools and supporting

Rummel, R. (n.d.). UNDERSTANDING CONFLICT AND WAR: VOL. 3: CONFLICT IN PERSPECTIVE. Retrieved
1

January 07, 2018, from https://www.hawaii.edu/powerkills/CIP.CHAP5.HTML

2
Appendix 1 – Question 5
3
Appendix 1- Question 6, Appendix 2- Question 15&19&Facts and Findings – Question 15&19
4
Appendix 1- Question 3

5
003768-0001 May 2018

documents appropriate motivational theories were selected which could provide in dept analysis

on the problems of the organization.

FACTS AND FINDING-

Graphical representation of the data obtained by the questionnaire of workers :

Q-4

SINCE WHEN HAVE YOU BEEN WORKING IN THIS

FIRM?

1-6 MONTHS 6-12 MONTHS MORE THAN 1 YEAR

Q-6

IS YOUR JOB CHALLENGING?

YES NO

6
003768-0001 May 2018

Q-7

ARE YOU INTRINSICALLY OR EXTRINSICALLY MOTIVATED

TOWARDS THE JOB?

INTRINSICALLY EXTRINSICALLY

Q-8

ARE YOU HAPPY WITH THE QUALITY OF WORK THAT YOU

DO?

YES NO

7
003768-0001 May 2018

Q-9

DO YOU FEEL STRESSFUL AT WORK?

YES NO

Q-10

ARE YOU WELL PAID FOR YOUR JOB?

YES NO

8
003768-0001 May 2018

Q-11

IS YOUR OPINION VALUED IN DECISION?

YES NO

Q-12

CURRENT JOB HELPS YOU TO GROW PROFESSIONALLY?

YES NO

9
003768-0001 May 2018

Q-13

DO YOU GET PROMOTION?

YES NO

Q-14

WORKERS PARTICIPATION IN MANAGEMENT?

YES NO

10
003768-0001 May 2018

Q-15

DO YOU GET FRINGE BENEFITS?

YES NO

Q-16

ARE YOU HAPPY WITH THE BASIC NEEDS PROVIDED BY THE

FIRM

YES NO

11
003768-0001 May 2018

Q-17

DO YOU FEEL PART OF THIS FIRM?

YES NO

Q-18

DO YOU GET TRAINING?

YES NO

12
003768-0001 May 2018

Q-19

DO YOU GET BONUS WHEN THE FIRM MAKES PROFIT?

YES NO

Q-20

DO YOU GET FEEDBACK WHEN REQUIRED?

YES NO

13
003768-0001 May 2018

ANALYSIS OF FINDINGS

SWOT ANALYSIS-

SWOT is a basic analytical framework to assess Ruhi Creations both internal(Strength and

weakness) and external(Threats and Opportunity) factors. This tool helps us to predict firms

objectives and position, thereby providing basic idea about their problems and strategies to tackle

them.

STRENGTH- WEAKNESS-

1- Customer satisfaction5. Ruhi Creations 1- Higher ratio of unskilled labor10.

firmly believe in high customer 2- Obsolete recruitment techniques.

satisfaction. Their easy replacement 3- Manual methods of production11.

techniques and method helps to gain 4- Least staff motivation and

complete trust of the distributors. involvement12.

2- High quality product6. 5- Lack of focus on marketing13. Silent

3- Strong capital and finance.(capital brand and relies on typical and

stock) traditional distribution channel instead

4- Goodwill in the market7. on increasing it.

5- Positive and continuous cash flow8. ( 6- Vulnerable to staff turnover14.

demonization didn’t effect much) 7- Lack of training for the human

6- Centralized organizational structure- resource.15

quick response and decision9.

5
Appendix 1 – Question 1
6
Appendix 1 – Question 12
7
Appendix 1 – Question 8
8
Appendix 1 – Question 8
9
Appendix 1 – Question 18 & Appendix 2 – Question 11
10
Appendix 1 – Question 4

14
003768-0001 May 2018

7- National market.

OPPORTUNITIES- THREATS-

1- Earning foreign currency by exports 1- Highly competitive market17.

and thus capturing international 2- No copyrights issued for the designs18.

markets. 3- Payment risks and bad debts.

2- Packing as jewelry’s are delicate and 4- Seasonal business19.

new generation of customer and 5- Online business is reducing the retail

consumer appreciate high end packing. market.

3- New taxation system hindering gold

market, paving a way for the imitation

jewelry.

4- Steps being taken towards professional

Research and Development16.

5- Aggressive purchase due to new and

constant change in design and high

trend.

11
Appendix 1 – Question 10
12
Appendix 2 – Question 14&Facts and Findings – Question 14
13
Appendix 1 – Question 13
14
Appendix 1 – Question 9
15
Appendix 1 – Question 11,Appendix 2 – Question 18&Facts and Findings – Question 18
16
Appendix 1 - Question 13
17
Appendix 1 – Question 19
18
Appendix 2 – Question 21
19
Appendix 1 – Question 1

15
003768-0001 May 2018

FISHBONE TOOL –

20

Fishbonediagram represents causality for Ruhi Creations, where it concentrates all different

causes and problems into an effect(symptom) that is negatively affecting Ruhi Creations. The

understanding of different components of the main cause, helps to formulate solutions and

strategies that will resolve the effect from every level of the business organization.

20
Appendix 1 – Question 9 & 15

16
003768-0001 May 2018

1. MOTIVATIONAL THEORIES-

1.1 ALDERFER’S ERG THEORY-

ERG Theory is a condensed form of Maslow’s

hierarchy of needs. It summarizes Maslow’s five human

needs into three categories – Existence, Relatedness and

Growth plus it includes flexibility in movement of human

resource needs according to circumstances and position of

the business making it suitable approach for Ruhi

Creations. Currently Ruhi Creations successfully fulfills

existing needs21 of its employees by providing a lunch and snack scheme for the

workers22. It also provides water purifiers in every zone23, in order to ensure

satisfaction of basic human needs. Yet the overall staff motivation of Ruhi

Creations seems quite insufficient24. This satisfaction (almost 95%)25 of existence

needs of the workers by Ruhi Creations helped them to gain initial motivation in

the workplace. However, the satisfaction of basic physiological needs has created

a shift, currently making growth the fundamental need of most workers (90%).26

In correspondence to ERG theory, the satisfaction and progression experience by

the workforce of Ruhi creation to make growth by developing and learning new

skills as their primary focus is because of two main reasons. First, comparatively

21
Appendix 5
22
Appendix 1 – Question 7
23
Appendix 1 – Question 7
24
SWOT Analysis – Weakness(P-4) & Fishbone Diagram
25
Appendix 2 – Question 16& Facts and Findings – Question 16
26
Appendix 2 – Question 12 & Facts and Findings – Question 12

17
003768-0001 May 2018

low demand and wage for unskilled labor in the imitation jewelry market

therefore making training and growth necessary for the workers to ensure their job

safety and increase in wages27. Secondly lack of professional in the imitation

market, therefore higher learning is perceived by the workers as a source for

promotion28 and monetary benefits29. By fulfilling this growth need by enrolling

their workforce into different training programs and learning institutes, Ruhi

Creations could drastically improve their workplace motivation as the workers

would have enhanced self-image and abilities to handle more complex and

diversified task resulting in job enrichment and job enlargement respectively.

Their training combined with motivation could drastically increase Ruhi

Creations efficiency and productivity. However, the business organization cannot

satisfy the growth needs of the workers because Ruhi Creations current business

model only supports organic growth and occurring huge expenses to facilitate

training30 could result in cash flow problems and the organization could face

liquidity issues. Also providing high training may create labor retention issues for

Ruhi Creations as the workers may want to pursue higher paying jobs31.

Therefore, the most appropriate and cost effective method that Ruhi Creations can adopt to

increase workplace motivation in regards to the ERG theory is by creating a regression and

making relatedness need the central focus of the workers since they can be achieved in a more

cost effective manner. Ruhi Creations can implement workers participation32, where inputs and

27
Appendix 2 – Question 10 &Facts and Findings – Question 10
28
Appendix 2 – Question 13&Facts and Findings – Question 13
29
Appendix 2 – Question 15&Facts and Findings – Question 15
30
Appendix 1 – Question 11
31
SWOT Analysis – Weakness (P-6)
32
SWOT Analysis – Weakness (P-4)

18
003768-0001 May 2018

ideas of the workers are consider while making business decision. This helps the workforce to

feel more related33 to the organization where their ideology’s and methods are considered by the

business thus increasing their motivation to work. Also it facilitates job empowerment which

further increases the motivation of the workforce. Further approach to increase motivation and

productivity by implementing techniques such as ‘Learning By Doing’ method can be adopted

by Ruhi Creations. This technique helps the workers to improve their performance at workplace

with appropriate guidance34. It helps them to develop new skills and rectify their mistakes

thereby partially satisfying their growth needs and further increasing motivation to work.

35

Learning by doing Cycle

33
Appendix 2 – Question 17 &Facts and Findings – Question 17
34
Appendix 1 – Question 14
35
Stinghe, R. (2015, October 26). Learning by Doing. Retrieved August 07, 2017, from
http://euroscoutinfo.com/2015/10/26/learning-by-doing/

19
003768-0001 May 2018

1.2 COGNITIVE EVALUATION THEORY-

36

The theory focuses on intrinsic motivators and determines the influence of external business

environment on them. It claims that the presence of strong external or extrinsic motivators can

reduce an individual’s intrinsic motivation because they might be perceived by the workers as

being controlled by the organization. The higher number of workers inclined towards extrinsic

motivators37 for Ruhi Creations clearly depict the reason for lack of workplace motivation. This

is because intrinsic motivators tend to be higher on the Maslow hierarchy of and therefore are

highly efficient and motivated and contribute to higher productivity.

Ruhi Creations can use extrinsic motivators to ensure initial motivation for the job but need to

create a transition wherein the majority workforce is intrinsically motivated towards the task and

job. This would be both cost-effective and efficient in nature. In order to achieve this Ruhi

36
Appendix 2 – Question 7& Facts and Findings – Question 7
37
Appendix 2 – Question 7 &Facts and Findings – Question 7

20
003768-0001 May 2018

Creations can use the help of self-determination theory where they can assess the three basic

worker need – Autonomy, Competence and Relatedness and induce and increase intrinsic

motivation by fulling them effectively.

- Autonomy : Instead of their current model of assigning task 38, Ruhi creation can offer the

freedom to choose to the workers according to their preferences. This would result that

the workers will select task that their interested39 in and will feel empowered and

enriched40 to make sure that they achieve maximum productivity and output for the task

they have opted.

- Competence : Ruhi Creations workers should have the ability to perform task adequately

and control the outcome. For perceived competence to be high in workforce management

of Ruhi Creations should opt for informational aspect41 rather than controlling aspect42

wherein strategies and ideas are discussed throughout the organizational structure without

any restrictions or discrimination.

- Relatedness : To improve workers relation, Ruhi creation can form teams and follow the

guidelines of cellular production43 which could help to improve social behavior at the

workplace and increase motivation.

38
Appendix 1 – Question 14
39
Appendix 2 – Question 8&Facts and Findings – Question 8
40
Appendix 2 – Question 6 &Facts and Findings – Question 6
41
Appendix 2 – Question 20&Facts and Findings – Question 20
42
SWOT Analysis – Strength (P-6)
43
http://leansixsigmadefinition.com/glossary/cellular-manufacturing/

21
003768-0001 May 2018

1.3 MAYO’S THEORY OF HUMAN RELATION-

Psychologist Elton Mayo, in 1920 conducted a series of experiments to formulate the Hawthorne

effect which studied the effect of being observed on productivity and motivation. Since the

experiment was conducted on the workforce of an electric firm(Hawthorne Works) it makes the

research more compatible for Ruhi Creations as both share common features of being labor

intensive and having higher percentage of unskilled workers44 in their workforce. This ensures

that Elton’s research can be applied to Ruhi Creation as both business organization (Ruhi

Creation and Hawthorne Works) faced productivity problems due to demotivated workforce.

Elton Mayo divided the task of the work force into – Simple and Complex and demonstrated

how being observed affected the productivity of the workers for each task. His findings have

being condensed into the below matrix.

44
SWOT Analysis – Strength (P-1)

22
003768-0001 May 2018

45

The matrix clearly demonstrates that in order to achieve maximum productivity, Ruhi Creations

has to monitor and supervise the unskilled workforce that comprises of the assembly and

auxiliary staff members whose jobs can be categorized under simple task. It increases their

workplace behavior along with motivation has they feel that their work is being valued. On the

other hand Ruhi Creations should avoid monitoring complex and creative task of Jewelry

designers and mangers as it might be perceived as threating their autonomy which would lead to

narrow focus and reduce their morale. However, Ruhi Creations strategy46 has been quite the

opposite where they have installed monitoring cameras47 in jewelry designing and managerial

sections. Therefore appropriate changes needs to be made by Ruhi Creations in their tactics and

approach for workplace monitoring system in order to maintain highly productive and motivated

workforce.

CONCLUSION-

Between financial year 2015-2017, Ruhi creation only indicates a mere rise of 14,345 rupees 48 in

wages charge between 20 workers49. Therefore the current investigation provides the

45
Self-formulated Matrix in correspondence to theoretical models of human relation theory.
46
Appendix 1 – Question 16
47
Appendix 4
48
Appendix 3

23
003768-0001 May 2018

organization, cost-effective manners through which workplace motivation and productivity can

be increased. These motivational theories channelizes optimal solution to solve various problems

in different compartments of functionality of the business organization – Ruhi Creations. It helps

the firm to develop more humanitarian view of the workers rather than authoritarian and lays its

focus on the development of Emotional intelligence and communication within the culture of

Ruhi Creations. This would help them to maintain a long-lasting motivation within the

workforce.

All three theories looks at the issue of motivation and productivity through different perspectives

providing different resolution for Ruhi Creations. Though the current investigation purely uses

well recognized business theories and tools, Management of Ruhi Creations might have to

modify them while implementing due to dynamicity of human resource and various other factors

like Government regulations, Economic conditions Workforce demographics which have not

been studied in the investigation as they deviated from the research question.

The investigation successfully answers the research question within its boundaries of limitation

as Ruhi Creations might not have completely disclosed all business information. However,

sampling the entire workforce population of Ruhi creations, increases the reliability of the data

thus making the results of the investigation accurate and valid for Ruhi Creations.

BIBLIOGRAPHY-

Websites:

ERG motivation theory Alderfer. (n.d.). Retrieved April 07, 2018, from
https://www.yourcoach.be/en/employee-motivation-theories/erg-motivation-theory-
alderfer.php

49
Appendix 6

24
003768-0001 May 2018

McLaughlin, J. (n.d.). Self-determination & Cognitive Evaluation Theories: Employee

Motivation. Retrieved April 07, 2018, from https://study.com/academy/lesson/self-
determination-cognitive-evaluation-theories-employee-motivation.html

PERRY, G. L. (2017, October 3). Human Relations Management Theory Basics. Retrieved April
07, 2018, from https://www.business.com/articles/human-relations-management-theory-basics/

Stinghe, R. (2015, October 26). Learning by Doing. Retrieved April 07, 2018, from
http://euroscoutinfo.com/2015/10/26/learning-by-doing/
Rummel, R. (n.d.). UNDERSTANDING CONFLICT AND WAR: VOL. 3: CONFLICT IN
PERSPECTIVE. Retrieved April 07, 2018, from
https://www.hawaii.edu/powerkills/CIP.CHAP5.HTML
Books :

Hoang, P. (2014). International Baccalaureate Business and Management. Ibid Press.

25
003768-0001 May 2018

SUPPORTING DOCUMENTS

APPENDIX 1: INTERVIEW WITH THE OWNER

26
003768-0001 May 2018

27
003768-0001 May 2018

28
003768-0001 May 2018

APPENDIX 2 : QUESTIONNAIRE FOR LABOURS

WORKER 1 (ISHWAR SANKAR MALI) –

29
003768-0001 May 2018

30
003768-0001 May 2018

WORKER 2(LAXMI POLAR)-

31
003768-0001 May 2018

32
003768-0001 May 2018

WORKER 3(AMINA SHEIKH)-

33
003768-0001 May 2018

34
003768-0001 May 2018

APPENDIX 3 :

FINANCIAL DATA (2015-2016)-

35
003768-0001 May 2018

FINANCIAL DATA (2016-2017)-

36
003768-0001 May 2018

37
003768-0001 May 2018

APPENDIX 4 :

CAMERA INSTALLATION RECEIPT -

38
003768-0001 May 2018

APPENDIX 5 :

FOOD RECEIPT FOR THE WORKERS-

39
003768-0001 May 2018

APPENDIX 6 :

BASIC DETAILS ABOUT WORKERS OF RUHI CREATION –

SR.NO NAME AGE GENDER

1 Shardha Parsuram 22 Female

2 Mohini Dattaram Darde 25 Female

3 Bharati Ramesh Nayak 28 Female

4 Manisha Desai 20 Female

5 Shalia Shokar 39 Female

6 Kajal Gola 40 Female

7 Shobba Dumbre 43 Female

8 Shomal Karvanjee 22 Male

9 Ishwar Sankar Mali 38 Male

10 Rehana Sheikh 20 Female

11 Daksha Rupasari 24 Male

12 Megha Devrukar 42 Female

13 Amina Sheikh 29 Female

14 Laxmi Polar 28 Female

15 Surekha Dhabhi 29 Female

16 Shobha Patil 25 Female

17 Lata Goykwad 40 Female

18 Soham Bhoir 19 Male

19 Sarthak Mhadgut 40 Male

20 Suresh Kandi 36 Male

40
003768-0001 May 2018

CATEGORISING WORKFORCED BASED ON GENDER

MALE FEMALE

41