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Improving employee motivation through HR practices at PT. Sarndi Karya Nugraha

Westrik, Renate A.M. (2010) Improving employee motivation through HR practices at PT. Sarndi Karya Nugraha.

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Abstract:This report is the result of my bachelor assignment about employee motivation within PT. Sarandi Karya Nugraha in Sukabumi, Indonesia. PT. Sarandi Karya Nugraha is one of the four biggest manufacturers of hospital equipment in Indonesia. The objective of this research is to get insight in the current motivation of Sarandi’s employees in order to make recommendations concerning human resource practices. Implementation of these recommendations is expected to result in improved employee motivation. Therefore, the research question is ‘To what extend is there a need for Sarandi to adjust its HRM policy in order to make its employees more motivated?’. Improved employee motivation has several advantages, such as better product quality and improved competitive advantage. To have motivated employees the HRM practices must fit the needs of the employees. Several aspects of motivation of Sarandi’s shop floor workers are examined by means of a questionnaire. Several aspects causing employee satisfaction are studied: achievement, recognition for achievement, the work itself, responsibility and growth/advancement. These are the motivators. The following hygiene factors, causing dissatisfaction, are also measured: company policy and administration, supervision, interpersonal relationships, working conditions, salary, status and security. Employee motivation is the result of how the employees feel about the motivators and hygiene factors. Measuring the difference between the current and desired situation for the motivators and hygiene factors revealed some aspects of employee motivation that can be positively influenced by adjusting human resource practices. Practices identified in this research for possible recommendations regarding the improvement of employee motivation are recruitment, selection and placement, staff planning, training and development, performance appraisal and compensation. The execution of these practices is explored by interviews and observations. Motivators and hygiene factors that fit the employee needs sufficiently are the work itself, achievement, responsibility, interpersonal relationships between colleagues, status, job security and working conditions. There is no need for change regarding these aspects. For one hygiene factor, company policy and administration, there was not enough data available to draw a conclusion on its contribution to motivation. Recognition for achievement and growth and advancement are motivators which currently do not contribute to employee motivation. The hygiene factors supervision, interpersonal relationships between subordinate and supervisor and salary cause dissatisfaction for the shop floor workers. Sarandi should make alterations in their organization that positively influence these variables. These changes should increase employee motivation of the shop floor workers. II From these results on motivation some recommendations are formulated which should result in improved employee motivation: • The recruitment, placement and selection process of new supervisors should also take leadership skills into account. This has a positive result on the aspects supervision, interpersonal relationships between employees and their supervisors and recognition for achievement. • Training and development has to be made more formal regarding the needed skills for supervisors and other shop floor workers. The employee needs regarding supervision, interpersonal relationships, recognition for achievement and growth and advancement are improved by this. • Performance appraisal should focus more on performance and pre-set goals. Good performance and reaching goals have to be rewarded by additional incentives. An appraisal interview should be added to the procedure. Growth and advancement are stimulated by adapting this human resource practice. • Salary in the compensation system should be changed in the way that the basic salary depends on the hierarchical level of the function. Additional incentives can be earned by good performance and reaching goals. Employee needs regarding salary should increase by this change.
Item Type:Essay (Bachelor)
PT. Sarandi Karya Nugraha
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration BSc (56834)
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