Motivation at work (research study)

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UNDERSTANDING MOTIVATION. SUGGESTIONS FOR
ENHANCING EMPLOYEE MOTIVATION: CASE STUDY OF
NECSOM LTD.
ANNA IKONEN
This report presents the significance of employees for an organization’s success and the importance
of motivating them. The case study of Necsom explores the current employee motivation situation
in the company and describes the importance of certain factors in motivating employees. After
description of the results of the research project, some conclusion are made how to enhance
employee motivation systems in companies in general, and at Necsom, in particular.

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Table of contents
1 INTRODUCTION............................................................................................................0
2 SUCCESS FACTORS IN A MODERN COMPANY ...................................................2
3 THE HUMAN FACTOR IN THE COMPANY GROWTH ........................................3
3.1 THE GLOBAL HUMAN RESOURCE MANAGEMENT............................................................3
3.2 EMPLOYEES SIGNIFICANCE AND IMPORTANCE OF MOTIVATING THEM ...........................5
4 WORK MOTIVATION IN THE ORGANIZATIONAL CONTEXT........................9
4.1 THEORIES ON MOTIVATION ...........................................................................................9
4.1.1 Abraham Maslow .................................................................................................9
4.1.2 Frederick Herzberg............................................................................................11
4.1.3 C.P. Alderfer ......................................................................................................12
4.1.4 David McClelland..............................................................................................12
4.2 A SELF CONCEPT-BASED MODEL OF WORK MOTIVATION.............................................16
4.3 METHODS AND WAYS OF MOTIVATING EMPLOYEES ....................................................19
4.4 CROSS-CULTURAL PERSPECTIVES ON MOTIVATION.....................................................23
5 WORK SATISFACTION AND MOTIVATION AND ITS SIGNIFICANCE AS A
RESULT OF RESEARCH IN NECSOM COMPANY..................................................27
5.1 INTRODUCTION TO THE COMPANY, NECSOM LTD. ......................................................27
5.2 SURVEY METHODOLOGY.............................................................................................28
5.3 SURVEY RESULTS.......................................................................................................29
5.3.1 Demographic data...............................................................................................29
5.3.2 Work satisfaction.................................................................................................30
5.3.3 Work motivation..................................................................................................41
5.4 BRIEF SUMMARY OF RESULTS......................................................................................48
6 DISCUSSION ON THE RESEARCH FINDINGS.....................................................49
7 CONCLUSION...............................................................................................................53
LITERATURE ...................................................................................................................55
APPENDIX: SURVEY QUESTIONNAIRE ... ERROR! BOOKMARK NOT DEFINED.

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Table of figures
Figure 1. Maslow’s Hierarchy of Needs ................................................................................9
Figure 2. Descriptive statistics of work satisfaction ............................................................31
Figure 3. Satisfaction profile at Necsom..............................................................................32
Figure 4. Different opinions concerning work satisfaction..................................................38
Figure 5. Correlation (carrier prospects / position within the company).............................38
Figure 6. Correlation (feeling stressed at work / position within the company)..................39
Figure 7. Correlation (carrier prospects / gender of the employee).....................................39
Figure 8. How satisfaction with pay depends on the position with the company................40
Figure 9. How satisfaction with Necsom’s benefits depends on the position......................40
Figure 10. Ranking of motivational factors at Necsom .......................................................41
Figure 11.Descriptive statistics of motivational factors.......................................................42
Figure 12. How need to learn new skills depends on the position within company............44
Figure 13. Correlation (importance of appreciation / work place) ......................................45
Figure 14. Correlation (need of having good salary / position within company) ................46
Figure 15. Correlation ( having good salary /work place) ...................................................47
Figure 16. Correlation ( having good benefits / position with the company) ......................47

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Tables
Table 1. Gender of the employees........................................................................................29
Table 2. Nationality of respondents .....................................................................................29
Table 3. Age category..........................................................................................................29
Table 4. Work place of the employees.................................................................................29
Table 5. Education level of the employees ..........................................................................30
Table 6. Position within company........................................................................................30
Table 7. Basis of employment..............................................................................................30
Table 8. Working atmosphere..............................................................................................32
Table 9. Interesting work .....................................................................................................32
Table 10. Variety in the job..................................................................................................33
Table 11. Responsibility at work .........................................................................................33
Table 12. Having an idea of what is expected of the employee...........................................33
Table 13. Encouragement to improve job performance.......................................................34
Table 14. Chance of being promoted for a good job............................................................34
Table 15. Use of skills and experience.................................................................................34
Table 16. Recognition of work ............................................................................................34
Table 17. I think I am well paid for my job .........................................................................35
Table 18. Opportunities to develop skills and abilities........................................................35
Table 19. Necsom provides enough training for employees................................................35
Table 20. Necsom provides relevant training ......................................................................35
Table 21. I prefer to work individually rather then in a team ..............................................36
Table 22. I get a lot of support from the people I work with...............................................36
Table 23. I have to cope on my own when I have difficulties with work............................37
Table 24. I am satisfied with my pay...................................................................................37
Table 25. I am satisfied with Necsom’s benefits .................................................................37
Table 26. Right facilities, equipment, systems to do the job well .......................................37
Table 26. Right facilities, equipment, systems to do the job well .......................................37
Table 31. Interesting work ...................................................................................................42
Table 32. Good work atmosphere........................................................................................43
Table 33. Good working conditions.....................................................................................43
Table 34. Secure job.............................................................................................................43
Table 35. Professional development and growth.................................................................43
Table 36. Learning new skills..............................................................................................44
Table 37. Carrier and promotion prospects..........................................................................44
Table 38. Sufficient time to do the job well without feeling stressed..................................45
Table 40. Working for a friendly, competent supervisor.....................................................45
Table 41. Working with friendly, helpful fellow employees...............................................45
Table 42. Being fairly paid for the work..............................................................................46
Table 43. Having good salary ..............................................................................................46
Table 44. Having good benefits other than salary................................................................46
Table 45. Contribution to the company ...............................................................................47
Table 46. Knowing what is expected of me.........................................................................48

1 Introduction
Formation of the market according to developing community and recent demands for new
products dictate constant changes. It forces the companies to introduce new techniques,
technologies, train their workers in such direction and employment on newly formed
positions, which causes exerts pressure on educating the employees or gaining the
educated ones.
Organisations face increasing demands in terms of improving quality and business
outcomes in order to remain competitive. A key challenge for employers therefore
concerns how to motivate and retain committed employees in order to achieve business
objectives.
The report shows what a company formed by its workers is and, at the same time, what the
workers formed by their company are, development of human factor in market needs, the
role of workers employed there, and methods of motivating personnel.
We are all motivated to: eat, sleep, have fun, and work. The challenge for management is
to discover what motivates people at work to do what is necessary for the organization to
succeed. In the past, in the industrial-bureaucratic era of rigid hierarchy and
electromechanical tools, management's task was to motivate employees to obey orders and
perform set tasks. Today, in the age of service industries, managements' task is to motivate
employees to take responsibility for: solving problems, responding to customer needs,
cooperating with team members, and continuously improving products and services.
The labour market is changing in its profile, and employees have different aspirations and
expectations from their life and work than did earlier generations. Employers therefore
have a real need to understand employees’ views and needs in order to develop and deliver
sustainable HRM policies.
Motivating employees requires designing jobs that engage employee’s values and provide
satisfying rewards. This requirement is a challenge not only to managers, but also to
employees. In the motivating organization, people are engaged by their responsibilities, by
the challenges that are part of their job. They feel supported by their relationships, and
satisfied by their rewards. Furthermore, they understand organization goals and find them
meaningful.

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This report presents the significance of employees for an organization’s success and
importance of motivating them. The aim of the report is to discover what the main
motivation factors within a company are. This aim is pursued through a case study of
Necsom Ltd, where the author worked when writing the report. Some methods and ways of
motivating employees have been suggested in following chapters.
This report presents few motivation theories and the research is aimed to show how those
theories are utilized in practise. The research has been done in Finnish telecommunication
company, Necsom Ltd. The case study explores the current employee motivation situation
in this company and describes the importance of certain factors in motivating employees.
The results of the study were aimed to help managers at Necsom to form a motivational
programme for the company. Some conclusion are made how to enhance employee
motivation systems in companies in general, and at Necsom, in particular.

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2 Success factors in a modern company
The essence of an effective strategy consists of uniqueness of a company and distinctively
allows its employees and outsiders to protect the company against any other rivals. We
might say that the aim of an effective strategy is a definition of the company’s identity
regardless of the fact if it is a café or a hotel. (Obloj 1998, 32)
An effective strategy makes the company different from others. It is widely agreed that the
basis of success is each company’s strategic approach to conditions and abilities of its
functioning on market and designing a winning strategy (Penc 1999).
Success of a company depends on its employees (Penc 1999; Stredwick 2000). That is why
the company should invest in its employees and motivate them. However, it is also
important that employees involve themselves in the company’s life and care about their
work.
As Walker (2000) points out, it seems clear that the business world of today is no longer
limited by national boundaries and that organizations need to have a global perspective if
they are to survive and prosper in this international environment. Many organizations will
succeed or fail on the basis of their ability to deal with this dynamic environment. There
has been a growing recognition in the past decade that international business is the reality
of the business world today. (Walker 2000)
As we move toward a more global economy, a company's ability to compete is dependent
upon its ability to cultivate its human capital on a global basis. Many companies, whether
international, multinational, or global in business focus, have programs, processes, and
structures that have been established around singular sets of cultural values that may not
reflect diverse workplace issues. (Walker 2000)
As a result, human resource professionals must find ways to transform the HR function to
deliver a set of global HR services that are flexible, adaptable, and focused on attracting,
motivating, mobilizing, and retaining global human capital. To accomplish this formidable
task, organizations are looking to align their key human resources functions more closely
with overall corporate strategy so they can effectively capitalize upon their greatest asset -
people. (Walker 2000)

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3 The human factor in the company growth
Global companies face an added burden in dealing with the leadership crisis. Not only do
they require leaders with solid leadership abilities, but they also need leaders who can
manage within a variety of geographical locations while trying to build a common
corporate culture. This straddling of two cultural worlds - corporate and local - raises the
bar on leadership skills and magnifies the leadership crisis for global companies. (Wellins
2000)
3.1 The global human resource management
As Wellins points out, in addition to looking for candidates with essential core or
functional skills, global companies need to find people who are willing to relocate to a
different country, often more than once. Those candidates must have the skills to work
across cultural boundaries. As a response to that challenge, the global recruiting process is
being overhauled in many companies to better enable them to compete for global talent.
Best Foods, for example, has a Website to attract and qualify candidates for a high-
potential, entry-level talent pool. Other companies, such as Microsoft, are identifying the
unique competencies for managing globally and building assessment processes for global
aptitude. (Wellins 2000)
Global companies, it seems, are using cross-cultural assignments as a way to develop long-
term talent. The success of global business strategies is correlated largely with the success
of an organization's HR practices (Wellins 2000). HR professionals must extend their value
beyond traditional practices by helping senior management create and maintain a shared
mission and culture, both of which are absolutely essential to the ultimate success of a
global business strategy (Wellins 2000).
Multi-national corporations (MNCs) face a variety of questions regarding the appropriate
business practices to use in the different countries in which they compete. MNCs face
challenges in determining the right product, market, finance, and human resource
management strategies across different national cultures (Wellins 2000).
There are a number of unique challenges global companies faces when trying to implement
consistent practices across their global HR networks. The biggest challenge is somewhat
obvious: the worldwide variations in social, political, and economic circumstances. An HR

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practice that works in one country may be unacceptable in another. Fluctuations in
currency, government regulations, compensation expectations, job security, and learning
styles are just a few examples of the local variations a global HR professional faces.
(Buller & McEvoy 2000)
Another global challenge is that the perceived value of the HR function varies across
locations. In one country, HR may be perceived as a true business partner, working with
high-level managers on critical strategic assessments. In another country but within the
same company, HR may be viewed as a transactional personnel department that handles
administrative work. (Buller & McEvoy 2000)
A third major challenge facing global HR practitioners is that different locations have their
own way of doing things and resist change. If an HR initiative that is viewed as corporate
is imposing on the local HR staff, then it can be difficult to gain acceptance from the field.
That is true regardless of whether it is a U.S. multinational "forcing" initiatives on its local
business or a German company "forcing" policies and practices on its international
businesses. (Buller & McEvoy 2000)
A winning global HR function is constantly adjusting the balance between a strong
corporate culture and local cultural differences. According to the DDI (Development
Dimensions International) survey, 85 percent of global companies are trying to establish a
corporate culture in all locations that is consistent with the goals and vision of the
company. However, 88 percent report that local culture and customs have a "moderate to
great" influence on the way they conduct business in particular locations (Dordrecht 1998).

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3.2 Employees significance and importance of motivating them
Nowadays, significance of employees, their qualifications, abilities and motivations have
an unbelievably great influence towards enormous competition, large variability of
environment, growing globalisation and increasing demands of customers (Stredwick
2000, Penc 1999). According to Penc, without the employees’ engagement, initiative
towards creating new values, the best productive and marketing plans most probably would
not bring an increase in demands or income.
Employees are the most valuable resource of the company (Penc 1999; Stredwick 2000;
Obloj 1998). Thanks to them, the company demonstrates its abilities and it is they who
lead it to success. The company should invest in their development and education.
As Penc points out, employee’s competence is a possibility to fulfil the requirements of the
job, ability to meet these demands in an unfailing way in a longer period of time.
According to Wlodkowski (1999) competence is the concept or major motivation factor
that describes our innate desire to take the initiative and effectively act upon our
environment rather than remaining passive and allowing the environment to control and
determine our behaviour.
Personality of an employee seems to be important as well. Therefore, the company should
focus its attention on individual features of an employee and try to create favourable
conditions for purposeful exploiting employee’s usefulness. (Penc 1999)
It should not be forgotten that effective performance of an employee in an organization
depends on his abilities and willingness to act. Potential of this aptitude has a manifold
structure, in which the most important role is played by motivation to work, assuming such
a person has proper competence. (Penc 1999)
According to M. Armstrong (1998) managers start to recognize the significance of training
their employees that in turn brings the following profits:
• Motivates them towards future training and developing new skills
• Increases identification with the company because during training
employees get to know company’s goals and its functioning

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• Improves communication with personnel because of joint training of both
management and personnel; during such courses, methods of solving
specific problems may be found
• Enriches work – training, educational sessions give people chance to accept
new challenge, which is very beneficial for them and their company
• Helps to understand why changes are necessary and what profits those
changes may bring
• Helps the employees to feel that the company treats them seriously
(Armstrong 1998, 146-147)
Motivating employees relates directly to retaining employees (Schwan & Seipel 2000).
Obloj argues that no simple set of guidelines can guarantee success in motivating people.
What motivates one employee may not motivate another. Success in motivating and
retaining employees results from application of some basic motivation principles,
understanding both the employer and employee roles, careful planning, and attention when
possible to each employee. (Obloj 1998)
As Obloj points out, employers can design jobs with employee motivation in mind.
Uninteresting or boring jobs usually cause motivation problems. Managers have the
primary responsibility for designing jobs. They need to take into consideration the tasks
that must be accomplished for the employee to succeed. The employer can also take into
consideration what individuals want in their jobs. Sometimes relatively minor changes in
job design can dramatically improve a job in the employee's view. Certain job
characteristics may help to motivate employees. First, jobs should be designed whenever
possible to encourage employees to use a variety of skills. (Obloj 1998)
Second, jobs should be designed whenever possible so that an employee performs a total
job. Even such a simple task as repairing gates may be more motivating if one person has
the responsibility to do everything including determining what parts are needed, buying
parts, taking the gate apart, replacing parts, reassembling and testing to be sure everything
is in order. (Obloj 1998)
Third, Obloj proposes that, jobs should be designed so that the employee understands the
significance of his/her job to the company. Fourth, jobs should be designed so that each
employee has responsibility, challenge, freedom and the opportunity to be creative. This
requires the manager of the company to delegate some authority. Delegation can be a

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powerful motivator. "You can do the job however you want as long as you get results."
Such words, such delegation, such responsibility can have positive impacts on employees.
(Obloj 1998)
Finally, employers should incorporate feedback into each job. Most employees want to
know what is expected of them in the job, how they are doing, how they can improve, what
latitude they have in changing how they do their tasks, what should be discussed with an
employer and when the discussion should occur. Employees rarely complain about too
much communication with their employer. They often want more communication. (Obloj
1998)
One of the important matters is to make employees an important part of a team. Saying that
we are a team is easy. Actually functioning as a team is difficult. Making employees feel
important to the team and business takes time. It often starts with how the employer views
employees: employees are working managers or employees are managed workers.
(Schwan & Seipel 2000)
Employees as working managers suggest that each person in the business has ideas on how
to improve the business. Even those people incapable of understanding much about the
business beyond their own jobs may have ideas about how to do their jobs better. Useful
suggestions often stay hidden inside employees’ mind when they do not feel themselves to
be an important part of the company’s team. (Schwan & Seipel 2000)
Turnover among team members forces the team to retreat to a previous stage of
development followed by rebuilding. Sometimes the retreat is all the way back to the
forming stage. Clearly, a continuous rebuilding of the team negatively affects motivation.
Thus, motivating employees and retaining employees are closely related. (Schwan &
Seipel 2000)
Schwan and Seipel claim that employers can improve commitment to team building by
rewarding employees for their contributions to team efforts. Rewarding only individual
efforts may send a strong signal to employees that the business is a collection of
individuals rather than a team.
Other guideline for motivating and retaining employees seems to be the most personal for
the employer. The employer "owns" his or her reputation in the community as a place to
work. Being known as a good place to work immediately gives new employees pride in

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having been hired. New employees speak with enthusiasm with friends about their place of
employment. Employees start with a more positive frame of mind about their job, co-
workers, supervisor and responsibilities. (Obloj 1998)

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4 Work motivation in the organizational context
"Motivation is a concept that explains why people think and behave as they do"
(Wlodkowski 1999, 1).
According to Penc (2000), motivation is a psychological state that contributes to what
degree the man involves himself in something. It covers all the factors that cause,
determine and support human behaviour in a certain direction. People who have strong
motivation most often know what they want from life and what way they will choose to
obtain their aims. (Penc 2000)
Such an attitude is based on two basic conditions
a. Needs and desires of an individual
b. Aim at which the individual is close or remote to (Armstrong 1998, 221).
4.1 Theories on motivation
There are many different theories concerning motivation. Some of them are presented
below.
4.1.1 Abraham Maslow
As far as the needs are concerned, they are perfectly presented by Abraham Maslow
(1943).
Figure 1. Maslow’s Hierarchy of Needs (adopted from Stredwick 2000, 169)
Self-
actualisation
Esteem
Social needs
Safety needs
Physiological needs

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“Need can be defined as a condition experienced by the individual as an internal force that
leads the person to move in the direction of a goal” (Wlodkowski 1999, 10).
Maslow’s hierarchy of needs works from the bottom of the pyramid upwards showing the
most basic needs and motivations at the lowest levels and those created by, or fostered by,
civilization and society towards the top of it. The needs are as follow:
1. Physiological needs
Relation between work and physiological needs is obvious: thank to work people obtain
resources needed to satisfy the needs, which are among others:
• Food and drink
• Sleep and shelter
• Maintaining body temperature
2. Safety needs
These needs are stimulated in situations as having first work, in which we are afraid
whether we are going to manage to fulfil our duties. Similar feelings appear when
promotion, technical, economical and organization modifications, and change of work are
concerned. Therefore the following needs should be taken into consideration:
• Certainty
• Stability
• Care
• Support
3. Social needs
That is a sense of belonging to a society and the groups within it, for example: the family,
the organization, the work group. These needs are:
• Affiliation to a group of people
• Participation in social activities
• Being loved
It can be usually recognized in a man who is in a new environment. When needs
mentioned above are not satisfied, the situation may often result in reluctance towards
other people and dissatisfaction with work.
4. Esteem needs
Many people think that the amount of earnings is a measure of regard for the job,
education level, skill requirements and achieving good working results.

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This also concerns the esteem need:
• Appreciation and esteem accorded by others
• Self-respect
• Self-esteem
• Domination
• Good social status, etc.
5. Self-realization needs
Most of people prefer doing what they wish, what they do well and what is connected with
realization of their interests. In fulfilling them, people develop and realize themselves.
As Maslow expressed it, "What a man can be, he must be" (Maslow 1943). Thus, self-
actualisation is the desire to become what one is capable of becoming. Individuals satisfy
this need in different ways. In one person it may be expressed in the desire to be an ideal
mother; in another it may be expressed in managing an organization; in still another by
playing the piano.
There are other theories of needs that refer to A. Masłow’s idea, mainly from the point of
stimulating motivation.
4.1.2 Frederick Herzberg
Herzberg (1959) developed a Two-Factor Theory of Motivation that also deals with needs
but in a way different from Maslow. According to Herzberg, two factors affect employee
motivation: dissatisfiers and motivators. Examples of dissatisfiers are poor working
conditions, exhausting physical work combined with excessively long workdays and
weeks, unfair pay, disagreeable supervisors, unreasonable rules and policies, and conflict
with co-workers. According to Herzberg these problems must be resolved before
motivators can work. (Weiss 1996)
Motivators are factors that influence job satisfaction and lead to motivation. Examples
include a sense of achievement, recognition, satisfying work, responsibility and personal
growth through training and new experiences. These factors turn an employee from being
neutral about the job into a motivated employee. (Penc 1999)
Employers can learn practical lessons from Herzberg's theory. Dissatisfiers must be
removed before motivators can work. Employees working in unsafe conditions with unfair

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pay will not be motivated by recognition and delegation of additional responsibility.
However, making the workplace safe and increasing the pay to a fair level is not enough.
These steps alone will fail to motivate employees. They will be neither satisfied nor
dissatisfied. These neutral workers can be turned into satisfied and motivated workers by
using the motivators, e.g., recognition and delegation of additional responsibility. Each
employer can work to identify the dissatisfiers among his or her employees. Removing the
dissatisfiers provides opportunity to take advantage of motivators tailored to the needs of
individual workers. (Penc 1999)
4.1.3 C.P. Alderfer
The other theory is that of C.P. Alderfer (1972). Alderfer also developed a need hierarchy,
though he collapsed Maslow’s needs into three categories: 1) EXISTENCE, which
includes the most basic survival needs (comparable to Maslow’s physiological and safety
needs); 2) RELATEDNESS, which is understood as the need for meaningful interaction
and relationships (comparable to Maslow’s belonging and love); and 3) GROWTH, which
includes the need for creativity and productivity (comparable to Maslow’s self-
actualisation). (Weiss 1996, 84)
Alderfer’s theory agrees with Maslow’s that when a satisfaction-progression process
occurs, people progress to the next higher level of needs only after the lower level ones
have been satisfied. His theory holds that higher level needs increase in importance as they
are met. To give an example, increased job responsibility may also lead an employee to
need and desire increased autonomy and job challenge. As Alderfer points out, if these
needs are not met, the employee may regress to looking for a job that offers more
interaction and sense of belonging. (Weiss 1996, 85)
4.1.4 David McClelland
David McClelland (1953) identified three needs that affect motivation of organisational
behaviour both of individuals and organisations:
1. Need for Achievement - The desire to do something better or more
efficiently to solve problems, or to master complex tasks.
2. Need for Affiliation - The desire to establish and maintain friendly
and warm relations with others.
3. Need for Power - The desire to control others, to influence their
behaviour, or to be responsible for others. (Penc 1999, 203)

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Needs connected directly with professional work can be distinguished and these are
(Penc 2000, 110-112):
1. Needs connected with the process of work, type of tasks and meaning of work
• Need for development
• Need for achievement, understood as finding more and more ambitious goals,
and achieving better results
• Need for change, desire to do something new in order not to repeat the same
routine and not to become bored
• Need for independence, meant as a desire to be independent in acting and
performing tasks
2. Needs connected with affiliation to a team and social life in work environment
• Need for integration, expressed as a need of affiliation
• Need for relationships, desire to gain new friends in order to exchange
professional experience
• Need for participation, expressed by the need to participate in meetings in the
work place
• Need for social appraisal, need for acceptance by a social group
• Need for dominance, which is the desire to predominate and manage others
3. Needs connected with management process
• Need for reliable judgement; an objective opinion from the superiors
• Need of being listened to; it is a desire to express one’s opinions in matters of
work, implementing tasks and tackling other problems
• Need for approval and promotion; feeling of being respected in the work place
4. Needs connected with employment in a particular working place
• Need for earnings, which is inclination towards earning money through your
work
• Need for stabilization, need to have a permanent job and appreciable earnings
• Need for safety, secure work and help from the employer in case of any
incidents
• Need for orientation: being aware of what is happening in the company

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• Need for self-realization: a need in which one can use his own qualifications,
abilities and feel that he is useful in his work.
Theories of motivation to work have passed through many stages, influencing and being
influenced by the prevailing management ideologies and philosophies of each era.
Although we can trace a sequence to this development, it does not mean that the old
theories have died. There are employers and employees today adhering vigorously to one
or other of them, basing their belief not on research or empirical evidence but on an almost
ideological framework of values and assumptions. These help them understand their own
role and those of others around them. The poor quality of comprehension about how
reward systems affect behaviour can be blamed partly on the confusion generated by so
many theories of motivation and conflicting case examples. (Bowey 2000)
Dr. Angela M. Bowey in her article about work motivation writes: “Fortunately for us,
there have always been researchers putting theories to the test.”
There is a growing body of research findings that show motivation varies between
individuals, between groups, and between cultures, and that this can affect the operation of
a remuneration system. Karen Legge and Neil Millward (in Millward 1968) reported an
interesting example when they were asked to study a television components factory in the
north-west of England. The objective of the study was to help management understand
why some staff responded well and were highly motivated by the incentive bonus scheme
in operation, whilst others showed no interest in it at all. The explanation lay in the family
situation of the employees. (Bowey 2000)
Other researchers have reported variations in motivation. Michael White (1973) found UK
managers in a sample of 2246 showed six distinctive patterns of motivation (material
rewards, status and prestige, security and social issues, job interest, variety and challenge,
and leadership). Blackburn and Mann (1979) found in a sample of 1000 low skilled
workers a wide range of "orientations", or motivations to work. These included such things
as pay, hours of work, promotion opportunities, autonomy, working indoors, intrinsic
features of the work, how worthwhile the work was, relationships with colleagues, and
working conditions. (Bowey 2000)
Those above were quite old studies. Newer research was made by Liliana Porzuczek in
1999 also concerning employees’ motivation. The research was conducted among enrolled

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applicants between 23 and 30 years old with higher education and very small professional
experience. The research showed that the most important for applicants were: prestige,
achievements and relations with superiors. The last placed were: management and material
profits.
These kinds of studies certainly support the "contingency theory" approach, which says
that management strategies (including payment systems) should be designed specifically to
suit the host organisation and its employees and managers (Bowey 2000). However the
picture is very much complicated by the fact that there is also a body of research which
indicates that needs are neither instinctive nor fixed for individuals. They vary with
changes in personal circumstance, and can be modified by making desired rewards more
available or less available. (Bowey 2000)
Since the above results showed many discrepancies between different studies, the author of
this thesis decided to make a research to see how motivational theories work in practice
(presented in chapter 5 of the thesis).

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4.2 A self concept-based model of work motivation
A self concept-based model of work motivation shown in this chapter was presented in the
paper prepared by professors Nancy H. Leonard, Laura Lynn Beauvais and Richars W.
Scholl at the annual meeting of the Academy of Management in August, 1995.
There is a growing realization that traditional models of motivation do not explain the
diversity of behaviour found in organizational settings. While research and theory building
in the areas of goal setting, reward systems, leadership, and job design have advanced our
understanding of organizational behaviour, most of this work is built on the premise that
individuals act in ways to maximize the value of exchange with the organization.
In the self concept-based model of motivation, one's concept of self is composed of four
interrelated self-perceptions: the perceived self, the ideal self, one's self esteem, and a set of
social identities. Each of these elements plays a crucial role in understanding how the self
concept relates to energizing, directing and sustaining organizational behaviour.
One of the earliest theorists writing on the nature of the self was William James. He saw
the self as consisting of whatever the individual views as belonging to himself or herself,
which includes a material, a social, and a spiritual self. The perceptions of the material self
are those of one's own body, family, and possessions. The social self includes the views
others have of the individual, and the spiritual includes perceptions of one's emotions and
desires.
The self concept is a relatively stable, but changeable, set of self perceptions that are
developed through social interaction, and includes self perceptions, ideal selves, social
identities, and self esteem.
The perceived self is comprised of a set of self cognitions regarding one's traits,
competencies and values. It is developed and reinforced through social and task feedback,
which results in two dimensions: level of perceptions and strength of perception. Level of
perceptions refer to the degree to which an individual possesses an attribute relative to their
ideal self and is expressed on a continuum from low to high. Strength of perception refers
to how strongly the individual holds the perception of attribute level and is expressed on a
continuum from weak to strong. The frame of reference or standard used to compare

17
perceived and ideal self is either fixed or ordinal. The type of feedback which an individual
receives from their primary group (conditional / unconditional) determines whether they
use an inner- or other-directed standard to measure the ideal self.
Social identities are those aspects of the self concept that derive from social categories to
which he/she perceives him/herself as be-longing. Reference groups establish the role
expectations and norms which guide the individual's behaviour within the social identities.
Two types of social identities are established: global identity and role-specific identities.
The global identity is formed early in life and is the identity one wishes to display across
all situations, roles and reference groups. The global identity forms the basis for role-
specific identities. Role-specific identities are those identities established for a specific
reference group or social role. Global and role-specific identities are inter-active.
Self-esteem is the evaluative component of the self concept, and is a function of the
distance between the ideal self and the perceived self. Three types of self-esteem are
proposed: chronic, task-based and socially influenced.
Internal Self Concept-based Motivation: Self concept motivation will be internally based
when the individual is primarily inner-directed. Internal self concept motivation takes the
form of the individual setting internal standards that become the basis for the ideal self.
The individual tends to use fixed rather than ordinal standards of self measurement as
he/she at-tempts to first, reinforce perceptions of competency, and later achieve higher
levels of competency. This need for achieving higher levels of competency is similar to
what McClelland ( Achievement Motivation) refers to as a high need for achievement. The
motivating force for individuals who are inner-driven and motivated by their self concept
is task feedback. It is important to these individual that their efforts are vital in achieving
outcomes and that their ideas and actions are instrumental in performing a job well. It is
not important that others provide reinforcing feedback as is true for other-directed
individuals.
External Self Concept-based Motivation: Self concept motivation is externally based
when the individual is primarily other-directed. In this case, the ideal self is derived by
adopting the role expectations of reference groups. The individual attempts to meet the
expectations of others by behaving in ways that will elicit social feedback consistent with
self perceptions. When positive task feedback is obtained, the individual finds it necessary
to communicate these results to members of the reference group. The individual behaves in

18
ways which satisfy reference group members, first to gain acceptance, and after achieving
that, to gain status. These two needs, for acceptance and status, are similar to McClelland's
need for affiliation and need for power. The individual continually strives to earn the
acceptance and status of reference group members. This status orientation usually leads to
an ordinal standard of self evaluation.
Individuals experience both internally- and externally-based self concept motivation to
varying degrees. Whether or not an individual will be motivated by his or her self concept
and whether the source of that motivation is internal or external, are dependent on a
number of things.
Expectancy. The concept of expectancy is the cornerstone of the cognitive school of
motivation. Expectancy theory posits that individuals choose among a set of behavioural
alternatives on the basis of the motivational force of each alternative. The motivational
force is a multiplicative combination of expectancy (the perceived probability that effort
will lead to a desired outcome), instrumentality (the probability that this outcome will lead
to a desired reward), and valence (value of the reward).
Attribution. The attribution process is concerned with the way in which individuals
attempt to determine the causes of behaviour. External attributions are those that are made
when the observer (self or other) of a behavioural pattern believes that the actor is
responding to situational forces, such as the expectation of a bonus. Internal attributions
are made when the observer believes that the behaviour is the result of some disposition of
the actor such as a personality trait or internal value. Since the self concept is comprised of
self perceptions of traits, competencies, and values, how the individual and others assess
these attributes is important in the maintenance of these self perceptions.
Cognitive Dissonance. According to the theory of cognitive dissonance (Festinger 1957),
inconsistency between two cognitive elements, whether they represent beliefs, attitudes, or
behaviour, gives rise to dissonance. Assumed to be unpleasant, the presence of dissonance
is said to motivate the individual to change one or more cognitive elements in an attempt to
eliminate the unpleasant state. With respect to the self concept, dissonance occurs when
task or social feedback differs from self perception.1
1 Leonard, Beauvais & Scholl 1995, Paper presented on the anual meeting of the Academy of Management.

19
4.3 Methods and ways of motivating employees
Motivation is related to a person’s needs and to learning, performance, and rewards.
Since people value and are motivated by different reasons, reward systems must be diverse
to accommodate different and changing employee needs. (Stredwick 2000)
Edward Lawler III (1988) argued that satisfaction with rewards is influenced by at least
five factors:
1. The actual reward and the amount the person feels they should have received.
2. People compare the rewards they receive with comparable awards other receive. This
influence their level of motivation. Employees who believe they are under- or over
awarded in comparison to others may not feel motivated or satisfied.
3. Intrinsic and extrinsic awards influence individual’s motivation and job satisfaction.
4. There is a wide variation in the rewards people value.
5. Some extrinsic awards are valued because they lead to other rewards. (Weiss 1996, 99)
As already mentioned, there are two kinds of motivation. One is extrinsic motivation,
which has to do with control, getting people to do something they may not want to do.
Extrinsic motivation is caused by positive or negative incentives. Intrinsic motivation, the
second kind of motivation, results when internal drives and values are engaged at work.
Extrinsic factors include better pay and benefits, employment security, opportunity for
advancement, and working conditions. Intrinsic factors include challenging work,
enjoyable work, meaningful work and above all, opportunity to experience a sense of
accomplishment. However, what is challenging, enjoyable, and rewarding depends on
employees' individual values (and skills), which differ among people at work. (Weiss
1996)
There are numerous elements in the reward package and we can divide them into direct
and indirect rewards. Direct rewards consist of: basic pay, pay for performance, benefits
(which relate to a wide range of “extras”), recognition pay. By indirect rewards it is meant:
job satisfaction, cultural satisfaction, security, personal growth, career development
opportunities. (Stredwick 2000, 297)
As Stredwick (2000) points out, reward is not just about pay, although this is the major
part. In his opinion the organizations need to develop a balance between the various
components. Rewarding employees for exceptional work they have done is critical to

20
keeping employees motivated to want to continue to do their best. Although money is
important, managers can potentially get even more benefit from personal, creative forms of
recognition. (Stredwick 2000)
There were done researches (for example, research made at the Piketon Research and
Extention Center in 1998) on what employees value most and in the order of importance
they were: interesting work, full appreciation of work done, feeling included, job security,
good wages, promotions and growth opportunities, good working conditions, personal
loyalty to co-workers, tactful disciplining. (Lindner 1998)
According to Penc (2000), organization success depends on employee performance, which
refers to effective and efficient work. Performance is a function of ability and willingness
of an employee or simply motivation. Motivated employees often see a strong connection
between achievement of organizational goals and satisfaction of personal goals.
As already mentioned, motivating employees relates directly to retaining employees.
Motivated employees are more likely than unmotivated employees to stay with an
employer. Retaining employees reduces the costs of recruitment, hiring, orienting and
training. Additionally, motivated employees are more productive, more creative, happier
and easier to work with than unmotivated employees. (Penc 2000)
Motivation seems to be essential to employer success in getting things done through
people. If the employer wants to evoke a feeling of attachment to a company, the company
should use various types of awards, praises, promotions, etc. (Penc 2000)
As Penc points out, an important method of evoking engagement is praising employees’
achievements. If the employer praise the employees, they will be more involved in what
they do than those employees who are not noticed. Usually people like to be admired for
what they do, even though it may seem they realise the admiration and do not need it to be
expressed. When the employer praise his employee, it should be expressed what the
employer liked in the worker’s job and what was really done well.
According to Penc, praise and admiration can be expressed in many different ways.
However:
- A manager should make sure that he has enough time for his interlocutor; a
curt praise said while closing the door will hardly bring the expected effect. An

21
employee should be convinced that his success are really valuable and deserve
the attention.
- A manager should provide the employee with a feeling of success as soon as
possible. Praising after numerous days or even weeks after something
happened significantly lessens the satisfaction.
- A manager should be absolutely convinced that he is praising the right person
and that the way he acts his role is not curt. (Penc 2000)
There are also other unconventional methods of praising. Some companies print special
notes or stick-notes saying: ”Thank you”, ”Good” or ”Well done!” and put them on the
desks belonging to praised person. Other companies grant their employees a free day or a
dinner with their boss (for example Necsom Ltd, Orbis S.A.).
Another way to increase employee’s engagement is enlarging his independence and
responsibility. It is the employee who says how fast s/he will make a job and find the best
way to fulfil a task. As challenges and responsibility rise, their motivation, enthusiasm and
satisfaction with work grows. (Penc 2000)
There is a growing consensus that the key to developing competitive advantage in Multi
Nationals is the effectiveness of the human organization. More specifically, MNCs can
enhance their competitiveness by integrating their human resource management activities
with their strategic goals. These so-called strategic international human resource
management systems are optimally designed in accordance with the MNCs strategic
challenge - achieving the appropriate balance between global integration and local
responsiveness. (Buller & McEvoy 2000)
The challenge of effective strategic human resource management in MNCs is to design
human resource systems and practices that are consistent with strategy. In this regard, we
have three possible MNC orientations regarding human resource management practices:
polycentric (adapting to practices in the host country), ethnocentric (imposing home
country practices), or geocentric (using some combination of best practices regardless of
origin). In addition to strategy, an MNCs approach to SIHRM may also be determined by
the relative influence of home country and host country culture, values and practices.
(Buller & McEvoy 2000)

22
Top managers of the MNC should provide leadership in recognizing the value of human
resources and developing a broader cross-cultural understanding and sensitivity.
Second, the MNC must engage its various international stakeholders, including employees
from home and host countries, in a collaborative effort to find the common ground with
respect to human resources and ethical practices. As noted earlier, cross-cultural dialogue
is an important tool for developing new mindsets and creating shared meanings. (Byrne
1998)
The ultimate goals of this initial organizational learning process are: 1) to establish a
corporate code of ethics that is globally integrative yet locally responsive, consistent with
the models of global ethics described above; 2) to create mechanisms for an ongoing
process of organizational learning and responsiveness; and 3) to create an ethical culture
across all MNC operations. Based on a clear corporate code of ethics and a continuous
learning process, the MNC can develop specific management practices to shape and
reinforce an ethical corporate culture. (Byrne 1998)
According to Byrne, appraisal processes should signal clearly the MNC's standards and
expectations regarding ethical behaviours. In addition, employees should receive timely
and regular feedback regarding their performance. Effective performance feedback
reinforces behaviours that are consistent with expectations and helps the employee make
any necessary improvements. (Byrne 1998)
Finally, the performance appraisal process itself (appraisal interviews, goal setting,
feedback, coaching) can be an effective tool for enhancing trust and communication
between managers and employees. (Byrne 1998)
One purpose of performance appraisal is to provide a systematic basis for allocating
rewards. To be effective, compensation and recognition systems should be: 1) linked
directly to ethical behaviours and outcomes; 2) timely; 3) visible; 4) durable (i.e., produce
long-term motivation); and 5) contribute to a shared mindset regarding ethical values and
behaviours. In addition, thoughtfully designed reward systems include both monetary and
non-monetary rewards linked to ethical performance. Effective leaders, such as Jack Welch
at General Electric, are renowned for their prompt, hand-written notes acknowledging
exemplary employee performance. (Byrne 1998)

23
4.4 Cross-cultural perspectives on motivation
“Motivation is, to a large extent, culturally conditioned and learned” (Weiss 1996, 101).
Across the globe people behave differently, even when faced with similar situations. For
example, in France meetings start on time when in Peru they often begin late. In Japan
politeness is very important, so people frequently say “yes” when they mean “no”. In the
United States most people say what they really mean. It is culture that explain these
differences.
“Culture is the acquired knowledge that people use to interpret experience and to generate
social behaviour. Members of a group, organization, or society share culture. Through
culture we form values and attitudes that shape our individual and group behaviour.
Culture is learned through both education and experience.” (Rugman & Hodgetts 2000,
124)
In multinational businesses to be successful, one must understand the cultures of other
countries and learn how to adapt to them. To an extend, all individuals are home country
oriented. It is the challenge in international business to learn how to broaden one’s
perspective to avoid making business decisions based on misconceptions (Rugman &
Hodgetts 2000, 124). As Rugman and Hodgetts point out, language, religion, values and
attitudes, manners and customs, material goods, aesthetics, and education are elements of
culture that explain behavioural differences among people. In recent years researchers have
attempted to develop a composite picture of culture by clustering these differences.
Geert Hofstede, a Dutch researcher, has found four cultural dimensions that help to
explain how and why people from various cultures behave as they do.
His four dimensions are (1) power distance, (2) uncertainty avoidance, (3) individualism,
and (4) masculinity. (Rugman & Hodgetts 2000, 134)
“Power distance is the dimension that indicates the extent to which a society expects and
accepts inequalities between its people, and an unequal distribution of power and
responsibility within its institutions and organizations” (Mercado; Welford & Prescott
2001, 447).

24
People in societies where authority is obeyed without question live in a high power
distance culture. Hofstede (1995) found that many Latin and Asian countries such as
Malaysia, the Philippines, Panama, Venezuela and Mexico were typified by high power
distance. In contrast, the United States, Canada, and many European countries such as
Denmark, Great Britain, and Austria had moderate to low power distance. (Rugman &
Hodgetts 2000, 134)
“Uncertainty avoidance. This index relates to the extend to which countries and their
institutions establish formal rules and fixed patterns of operation as a means of enhancing
security and avoiding ambiguity and doubt. High uncertainty avoidance societies are
marked by a strong preference for structured over unstructured situations.” (Mercado et al.
2001, 447) Hofstede (1995) found strong uncertainty avoidance in Greece, Uruguay,
Portugal, Japan and Korea. He found weak uncertainty avoidance in countries as
Singapore, Sweden, Great Britain, The United States and Canada. (Rugman & Hodgetts
2000, 134-135)
“Individualism. This dimension relates to the degree to which people in a country prefer to
act as individuals rather than as members of groups” (Mercado et al. 2001, 447).
Rugman and Hodgetts (2000) claim that it is in direct contrast with collectivism, the
tendency of people to belong to groups that look after each other in exchange for loyalty.
Countries with high individualism expect people to be self-sufficient. There is a strong
emphasis on individual initiative and achievement. Autonomy and individual financial
security are given high value, and people are encouraged to make individual decisions
without reliance on strong group support. In contrast, countries with low individualism
place a great deal of importance on group decision-making and affiliation. No one wants to
be singled out for special attention, even for a job well done. Success is collective and
individual praise is embarrassing because it implies that one group member is better than
others. Hofstede (1995) has found that economically advanced countries tend to place
greater emphasis on individualism than do poorer countries. (Rugman & Hodgetts 2000,
135)
Masculinity is the degree to which the dominant values of society are “success, money, and
things” (Rugman & Hodgetts 2000, 134). Hofstede (1995) measured this dimension in
contrast to feminity, which is the degree to which the dominant values of society are
“carring for others and the quality of life”. He found that countries with high masculinity

25
included Japan, Austria, Venezuela and Mexico. Countries with low masculinity included
Norway, Sweden, Denmark, and the Nederlands (Rugman & Hodgetts 2000, 135). As
Rugman and Hodgetts point out, countries with high masculinity scores place a great deal
of importance on earnings, recognition, advancement, and challenge. Achievement is
defined in terms of wealth and recognition. Countries with low masculinity scores place
great emphasis on a friendly work environment, cooperation, and employment security.
Achievement is defined in terms of human contacts and the living environment. There is
low stress in the workplace and workers are given a great deal of freedom. (Rugman &
Hodgetts 2000, 135)
As mentioned at the beginning, motivation to a large extend is influenced by a culture.
Since most motivational theories have been developed in North America and the West, it is
not surprising that these concepts reflect western assumptions about human nature (Weiss
1996, 101). That is why, the theories presented earlier in many cases are criticised from a
cross-cultural perspective. (Weiss 1996; Adler 1997)
Geert Hofstede argues that in countries with cultures that value uncertainty avoidance (like
Japan and Greece), job security and lifelong employment are stronger motivators than self-
actualisation, interesting or challenging job. Moreover, in certain European countries (like
Denmark, Sweden, and Norway) that value and reward quality of life as much as –if not
more than- productivity, social needs are stronger motivators than self-esteem or self-
actualisation needs (which are higher order needs in Maslow’s hierarchy). What is more, in
countries that value collectivist (like Pakistan) and community practices over
individualistic achievements, belonging and security are higher order needs (again, in
contrast to Maslow’s hierarchy). (Weiss 1996, 101; Adler 1997)
“The point here is that need hierarchies differ with culture. Maslow’s needs may thus be
universal, but the logic or the sequence of the hierarchy is likely to differ from culture to
culture” (Weiss 1996, 102).
Herzberg’s two-factor theory also does not hold up across cultures. A study (Staw 1980)
presented by Adler (1997) showed that interpersonal relationships and supervision in New
Zealand act as motivators, not as hygiene factors; that is, they reduce dissatisfaction.
Hofstede, cited above, also notes that cultures influence factors that motivate and
demotivate (Adler 1997, 162). For example, collectivistic societies like the Scandinavian

26
countries use organizational restructuring strategies (forming work groups to enhance
interaction) to increase quality of work life. More individualistic societies as the United
States focus on job enrichment to increase the productivity of individuals. Other studies
also show that what acts as a hygiene factor or dissatisfier in the United States, may act as
a motivator in other countries. (Adler 1997, 162)
McClelland’s motivation theory (1953) holds up better under the test of cross-cultural
analysis than any other theories I have discussed, however comparable to the analysis of
Maslow’s need hierarchy, Hofstede questions the universality of McClelland’s three needs
(Adler 1997, 161).
As Weiss points out, a moral for individual organizational members working in and/or with
those from different cultures should be “Don’t assume” when the topic is motivation –
whether it is needs, expectancies, or satisfiers (Weiss 1996, 103). It is always
recommendable to find out first what the basic cultural orientation is. Not everyone in a
culture shares all of its basic societal values, but the values can certainly influence
unspoken beliefs, attitudes, and motivations. Moreover, the managers should not use own
values or motivational assumptions as absolute standards but rather be open to discover
other’s motivating values and ideas. (Weiss 1996, 104)
International research “The Importance of Work Goals: An International Perspective”
made by Harpaz in 1990, reveals that work is important to many people. The research
reports on the importance of series of work goals among workers in seven different
countries. Results show that interesting work, on average, is the most objective.
Commenting on the research, Itzahak Harpaz has noted that major findings have a number
of practical implications. For example, the emphasis that the employees give to interesting
work points to the need for challenging, meaningful jobs. (Rugman & Hodgetts 2000, 143)
Additionally, when the work is interesting and challenging, the employees are willing to
exert greater effort. This has led Harpaz to conclude that “intrinsically motivated
employees are concerned with the expressive aspects of work life, not necessarily for the
purpose of securing more financial rewards, but because these very rewards are associated
with intrinsically motivating jobs” (Rugman & Hodgetts 2000, 143).

27
5 Work satisfaction and motivation and its significance as a
result of research in Necsom company
The study has been done in the company Necsom Ltd. where the researcher worked as a
marketing assistant. The aim of the study was to help managers to design the motivation
program for the company.
5.1 Introduction to the company, Necsom Ltd.
Necsom Ltd. is a Finnish company that develops, produces and markets innovative
software and hardware products for intelligent traffic processing and application execution
in the Internet environment. (Necsom 2001)
The company was founded in 1997 by Professor Olli Martikainen, a co-developer of the
GSM mobile communications standard used by 400 million mobile phones worldwide.
Necsom was born out of the idea that the future customers will have a growing demand for
value added services, forcing the networks to be more than just pathways for data.
(Necsom 2001)
Necsom’s current product portfolio includes an intelligent switch platform, called the
Media Switch, a distribution software MOWE (Manager of Objects in Web Environment),
and a management software IBIM (Internet Business Information Manager). Necsom’s
products are designed to provide a complete solution for managing, monitoring,
distributing, and billing of IP-services. The products can be used separately as well.
(Necsom 2001)
Currently Necsom has 40 employees, of which the majority work in the research and
development centre located in Lappeenranta, in south-eastern part of Finland. The sales
and marketing resides in the Helsinki office.

28
5.2 Survey methodology
The purpose of this study was to discover the current employee motivation situation and to
describe the importance of certain factors in motivating employees at Necsom, Ltd. The
results of the study was aimed to help managers at Necsom to form a motivational
programme for the company.
The research design for this study employed a descriptive survey method. A survey
questionnaire was developed to collect data for the study. The questionnaire was designed
by the researcher based on motivation theories presented in the chapter 3. The
questionnaire was approved by a thesis supervisor and a general director at Necsom. Some
improvements of the questionnaire were done before the research begin (for example: a
question concerning employee’s income has been removed). This method of research was
chosen since it is quick, inexpensive, and accurate mean of gathering information.
The target population of this study included employees at Necsom from both offices,
Helsinki and Lappeenranta. The sample size included all 40 employees of the target
population. Thirty-one (31) of all employees participated in the survey, including 7 persons
from Helsinki and 23 from Lappeenranta. The response percentage is 77.5%.
Data was collected through use of a written questionnaire (with Necsom logo) hand-
delivered to participants in Helsinki and e-mailed to employees to Lappeenranta office.
Employees were informed about the purpose of the study before the questionnaires were
provided to them. Necsom employees were asked to complete a confidential 3-part
questionnaire (Appendix 1). Part 1 captured information about the survey respondents,
part 2 measured employee job satisfaction and part 3 established the importance of
motivation factors. Questionnaires were filled out by participants and returned to an intra-
company mailboxes, both in Helsinki and Lappenranta.
Analysis of the survey was made by using SPSS – statistics programme. To maintain
confidentiality, the researcher was the only person reading questionnaires and analysis was
made outside the work place.

29
5.3 Survey results
Results of the study show that most of the employees are satisfied with their job at
Necsom.
5.3.1 Demographic data
Part 1 of the questionnaire presented demographic data on the employees.
Table 1. Gender of the employees Table 2. Nationality of respondents
gender
1 3,2
25 80,6
5 16,1
31 100,0
missing
male
female
Total
Valid
Frequency Percent
Nationality of respondant
27 87,1
3 9,7
30 96,8
1 3,2
31 100,0
Finnish
other
Total
Valid
Missing
Total
Frequency Percent
As above tables show majority of the employees are male (80,6%) and almost all
employees are of Finnish nationality. Both of these data are relevant to the results of this
research. It is interesting to notice that all female employees working at Necsom took part
in the research.
Table 3. Age category Table 4. Work place of the employees
Age category
21 67,7
5 16,1
2 6,5
28 90,3
3 9,7
31 100,0
20-29
30-39
40-49
Total
Valid
Missing
Total
Frequency Percent
Work place
7 22,6
23 74,2
30 96,8
1 3,2
31 100,0
Helsinki
Lappeenranta
Total
Valid
Missing
Total
Frequency Percent
Employees at Necsom are rather young people and a large majority work in Lappeenranta.
Table 5. Education level of the employees
Education level
7 22,6
8 25,8
13 41,9
2 6,5
30 96,8
1 3,2
31 100,0
high school
bachelor degree
master degree
other
Total
Valid
Missing
Total
Frequency Percent

30
Most of the employees at Necsom are highly educated: 25,8% having a bachelor degree
and a 42% having master degree. However it is interesting to notice that despite rather
difficult area that is telecommunication there are still employees without higher education.
Table 6. Position within company Table 7. Basis of employment
Position within company
4 12,9
19 61,3
7 22,6
30 96,8
1 3,2
31 100,0
managerial
R&D
support
Total
Valid
Missing
Total
Frequency Percent
Basis of employment
27 87,1
3 9,7
30 96,8
1 3,2
31 100,0
permanent
short term
Total
Valid
Missing
Total
Frequency Percent
Position within company is compressed in 3 categories. Employees on managerial position
are both directors and managers from all sectors (such as: marketing, sales and research).
Research and development positions includes system analysts, hardware designers,
software engineers and web designers. Support employees include assistants,
administration work, logistics and documentation work.
The results show that almost all employees at Necsom have permanent basis of
employment and more than a half of the employees are on R&D position. All R&D
employees work in Lappeenranta.
First part of the questionnaire was designed to observe if there is any correlation between
demographic data and both work satisfaction and motivation factors. Moreover,
demographic data presents profile of Necsom employees (who are they, how old, education
level, where do they work etc.). All those data seem to have an influence on the survey
results.
5.3.2 Work satisfaction
Part 2 of the questionnaire was designed to measure work satisfaction. This part presents
an overall situation of employee satisfaction at Necsom that may influence motivation
factors.
The scale for answers was: 1. I fully disagree, 2. I disagree to some extent, 3. mixed
feelings, 4. I agree to some extent, 5. I fully agree.

31
Following are the main findings about work satisfaction:
Descriptive Statistics
31 4,32 ,65
31 4,13 ,88
31 2,19 1,14
31 3,48 1,12
31 2,65 ,71
31 3,84 ,97
31 2,16 1,13
31 1,74 ,73
31 2,94 1,03
31 2,29 1,27
31 3,45 ,81
31 3,10 1,11
31 3,13 1,26
31 3,71 ,97
31 4,03 ,60
31 3,87 ,96
31 3,65 1,02
31 3,03 1,28
31 2,26 1,12
30 3,33 1,06
30 3,43 1,01
31 4,39 ,76
31 2,71 1,10
31 2,42 1,20
Working atmosphere in
Necsom is pleasant
I find my work interesting
I am not given any
responsibility
I have a clear idea of what
is expected of me
I get little encouragement
to improve my job
performance
There is lots of variety in
my job
If I do a good job I have a
chance of being promoted
My job makes little use of
my skills and experience
I rarely feel stressed at
work
I have to cope on my own
when I have difficulty with
my work
The importance of my job
is recognised by other
people
I think I am well paid form
my job
I never worry about losing
my job
I get a lot of support from
the people I work with
I have opportunities to
develop my skills and
abilities
Necsom provides enough
training for employees
Necsom provides relevant
training for my needs
I do not see any career
prospects for me in this
company
I prefer to work individually
rather then in a team
I am satisfied with my pay
I am satisfied with
Necsom's benefits
I have the right facilities,
equipment,systems to do
my job well
I am kept informed about
what is happening in the
company
Pressure at work often
affects negatively my
home/family life
N Mean Std. Deviation
Figure 2. Descriptive statistics of work satisfaction

32
The overall results are presented in the figure below.
Satisfaction profile
3,33
3,43
3,48
3,71
3,87
4,03
4,39
4,32
4,13
1 2 3 4 5
Necsom provides enough training
I am satisfied with benefits
I have the right equipment
I know what is expected of me
I get support from fellow employees
I have opportunities to develop my skills
Working atmosphere is pleasant
mean
Figure 3. Satisfaction profile at Necsom
Table 8. Working atmosphere
Working atmosphere in Necsom is pleasant
3 9,7
15 48,4
13 41,9
31 100,0
mixed feelings
I agree to some extent
I fully agree
Total
Valid
Frequency Percent
Results show that 90.3% of employees consider working atmosphere at Necsom as
pleasant.
Table 9. Interesting work
2 6,5
4 12,9
13 41,9
12 38,7
31 100,0
I disagree to some extent
mixed feelings
I fully agree
Total
Valid
Frequency Percent
Results show that work at Necsom is regarded as interesting. 80% of employees stated that
they find their work interesting and over 60% think there is a lot of variety in their job.

33
Table 10. Variety in the job
There is lots of variety in my job
3 9,7
8 25,8
11 35,5
9 29,0
31 100,0
mixed feelings
I fully agree
Total
Valid
Frequency Percent
However still many employees are not confident if they have lots of variety in their jobs.
Table 11. Responsibility at work
I am not given any responsibility
11 35,5
9 29,0
5 16,1
6 19,4
31 100,0
I fully disagree
mixed feelings
Total
Valid
Frequency Percent
Employees at Necsom are given some responsibility. 64,5% disagreed with the statement
“I am not given any responsibility”, whereas 16% had mixed feelings about it.
Table 12. Having an idea of what is expected of the employee
I have a clear idea of what is expected of me
1 3,2
6 19,4
7 22,6
11 35,5
6 19,4
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Frequency Percent
A little over half of the employees have a clear idea of what is expected of them. This
seems to be weakness of the company since still large percentage of employees do not
have an idea or are not very sure what is expected of them at work.
Table 13. Encouragement to improve job performance
I get little encouragement to improve my job performance
1 3,2
12 38,7
15 48,4
3 9,7
31 100,0
I fully disagree
mixed feelings
Total
Valid
Frequency Percent

34
Only 9,7% of employees are of an opinion that they get a little encouragement to improve
their job performance, whereas 42% disagree and 48% have mixed feelings about this
statement.
Table 14. Chance of being promoted for a good job
If I do a good job I have a chance of being promoted
12 38,7
7 22,6
7 22,6
5 16,1
31 100,0
I fully disagree
mixed feelings
Total
Valid
Frequency Percent
Very similar results were for the question concerning rewards. 61% of respondents
disagreed with the statement “If I do a good job I have a chance of being promoted”.
Table 15. Use of skills and experience
My job makes little use of my skills and experience
12 38,7
16 51,6
2 6,5
1 3,2
31 100,0
I fully disagree
mixed feelings
Total
Valid
Frequency Percent
Almost all respondents (90%) are of an opinion that their job makes use of their skills as
well as experience.
Table 16. Recognition of work
The importance of my job is recognised by other people
4 12,9
11 35,5
14 45,2
2 6,5
31 100,0
mixed feelings
I fully agree
Total
Valid
Frequency Percent
Just a little over half of employees think that the importance of their job is recognized by
other people whereas 35,5 % did not have any opinion (or mixed feelings).

35
Table 17. I think I am well paid for my job
I think I am well paid form my job
4 12,9
4 12,9
9 29,0
13 41,9
1 3,2
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Frequency Percent
Results show that half of the employees think they are well paid for their job (45%).
However there is still many employees who have mixed feelings or thing that should be
paid more for the job they do.
Table 18. Opportunities to develop skills and abilities
I have opportunities to develop my skills and abilities
5 16,1
20 64,5
6 19,4
31 100,0
mixed feelings
I fully agree
Total
Valid
Frequency Percent
The majority (83%) thinks they have opportunities to develop their skills and abilities.
Table 19. Necsom provides enough training for employees
Necsom provides enough training for employees
4 12,9
4 12,9
15 48,4
8 25,8
31 100,0
mixed feelings
I fully agree
Total
Valid
Frequency Percent
Also large percentage of respondents say that Necsom provides enough training for
employees (74,2%) and more than half (61%) think this training is relevant for their needs.
Table 20. Necsom provides relevant training
Necsom provides relevant training for my needs
1 3,2
3 9,7
8 25,8
13 41,9
6 19,4
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Frequency Percent

36
Table 21. I prefer to work individually rather then in a team
I prefer to work individually rather then in a team
9 29,0
11 35,5
6 19,4
4 12,9
1 3,2
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Frequency Percent
The majority of the employees prefer to work as a team rather then individually. This is
quite understandable since 68% of respondents stated that they get a lot of support from
people they work with. The results are reliable when we see that exactly the same
percentage of employees disagreed with the statement “I have to cope on my own when I
have difficulty with my work”.
Table 22. I get a lot of support from the people I work with
I get a lot of support from the people I work with
5 16,1
5 16,1
15 48,4
6 19,4
31 100,0
mixed feelings
I fully agree
Total
Valid
Frequency Percent
Since employees have support from the fellow employees and do not have to cope on their
own when they have difficulties with job, it is understandable why employees consider
work atmosphere at Necsom as pleasant.
Table 23. I have to cope on my own when I have difficulties with work
I have to cope on my own when I have difficulty with my work
10 32,3
11 35,5
3 9,7
5 16,1
2 6,5
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Frequency Percent

37
Table 24. I am satisfied with my pay
2 6,5
5 16,1
6 19,4
15 48,4
2 6,5
30 96,8
1 3,2
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Missing
Total
Frequency Percent
56,7% stated that they are satisfied with their pay and the same percentage stated
satisfaction with Necsom’s benefits. At the same time in each case about 20% of
employees had mixed feelings (did not have a strong attitude towards these statements). It
is interesting to notice that in both questions there was a missing answer.
Table 25. I am satisfied with Necsom’s benefits
I am satisfied with Necsom's benefits
1 3,2
5 16,1
7 22,6
14 45,2
3 9,7
30 96,8
1 3,2
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Missing
Total
Frequency Percent
Table 26. Right facilities, equipment, systems to do the job well
I have the right facilities, equipment,systems to do my job
well
1 3,2
2 6,5
12 38,7
16 51,6
31 100,0
mixed feelings
I fully agree
Total
Valid
Frequency Percent
Table 26. Right facilities, equipment, systems to do the job well
Moreover, 90% of the employees are satisfied with the facilities, equipment and system,
which helps them to do their job well.

38
There are different opinions concerning few of the following matters presented in the table:
Statement I agree
mixed
feelings I disagree
% % %
I never worry about losing my job 41,9 22,6 35,5
I rarely feel stressed at work 32,2 35,5 32,3
I am kept informed about what is happening in the
company 29 22,6 48,4
I do not see any career prospects for me 32,3 29 38,7
Figure 4. Different opinions concerning work satisfaction
Table 27. Table 28.
Pressure at work often affects negatively my home/family life
8 25,8
10 32,3
7 22,6
4 12,9
2 6,5
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Frequency Percent
I am kept informed about what is happening in the company
4 12,9
11 35,5
7 22,6
8 25,8
1 3,2
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Frequency Percent
Table 29. Table 30.
I never worry about losing my job
3 9,7
8 25,8
7 22,6
8 25,8
5 16,1
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Frequency Percent
I do not see any career prospects for me in this company
3 9,7
9 29,0
9 29,0
4 12,9
6 19,4
31 100,0
I fully disagree
mixed feelings
I fully agree
Total
Valid
Frequency Percent
As it can be seen from the above figure opinions differ. One of the explanations could be
that employees in different positions in the company see the same thing in a different way.
Some examples showed below:
Correlation between career prospects and position within company
Count
2 1
2 6
9
1 3
3 3
4 19 7
I fully disagree
mixed feelings
I fully agree
I do not see any
career prospects for
me in this company
Total
managerial R&D support
position within company
Figure 5. Correlation (carrier prospects / position within the company)

39
Correlation between feeling stressed at work and position within company
Count
1 2
2 4 1
2 8 1
5 3
1
4 19 7
I fully disagree
mixed feelings
I fully agree
I rarely feel
stressed at
work
Total
Figure 6. Crosstable (feeling stressed at work / position within the company)
It is interesting to notice that although people have different opinions about stress at work,
the majority (58%) thinks that the pressure at work does not affect negatively their
home/family life. 22,6% have mixed feelings about it.
There are other factors that could influence the answer, like: gender of the respondent,
position within the company or work place.
In many cases it is difficult to make any generalization if those factors have any influence
on the answers because, for example there were only 5 females between 31 of all
respondents.
Correlation between carrier prospects and gender of the employee
Crosstab
2 1
66,7% 33,3%
8
88,9%
9
100,0%
2 2
50,0% 50,0%
4 2
66,7% 33,3%
25 5
80,6% 16,1%
I fully disagree
mixed feelings
I fully agree
I do not see any
career prospects for
me in this company
Total
male female
gender
Figure 7. Crosstable (carrier prospects / gender of the employee)

40
Ifully
agree
Iagree
to
som
e
exte
m
ixed
feelings
Idisagree
to
som
e
e
Ifully
disagree
Count
10
8
6
4
2
0
position within comp
managerial
R&D
support
Figure 8. How satisfaction with pay depends on the position in the company
It is important to notice that 61,3% of the respondents represent R&D employees, 22,6%
support and only 12,9% managerial position.
I am satisfied with Necsom's benefits
I fully agree
I agree to some exte
mixed feelings
I disagree to some e
I fully disagree
Count
12
10
8
6
4
2
0
Work place
Helsinki
Lappeenranta
Figure 9. How satisfaction with Necsom’s benefits depends on the location
As the figure shows only employees in Lappenranta are not satisfied with company’s
benefits. It may be result of the fact that in Lappenranta work all employees on R&D
position and most of support people.

41
Reward is not just about pay, although this is the major part, and organizations need to
develop a balance between the various components. Rewarding employees for exceptional
work they have done is critical in keeping them motivated to want to continue to do their
best. Although money is important, managers can potentially get even more benefit from
personal, creative forms of recognition.
5.3.3 Work motivation
Third part of the questionnaire was designed to measure the importance of motivation
factors within the company.
Respondents considered all of the motivational factors covered by the survey to be
important i.e. most of factors were rated about 3 or higher.
The scale for this part of questionnaire was:
1. Not important, 2. Of little importance, 3. Quite important, 4. Very important
Ranking of the motivational factors in order of importance is presented in the figures
below.
Interesting work
A good work atmosphe
Learning new skills
Work with friendly e
Professional develop
Fairly pay for my jo
Time to make my job
Knowing what is expe
Appreciation of work
Contribution to the
Having good salary
Work for a friendly
Good working conditi
Secure job
Career and promotion
Having good benefits
Mean
4,03,83,63,43,23,02,82,62,4
2,7
2,8
3,0
3,0
3,1
3,1
3,2
3,2
3,2
3,3
3,3
3,4
3,5
3,5
3,7
3,9
Figure 10. Ranking of motivational factors at Necsom

42
Following are the main findings:
Descriptive Statistics
31 3,87 ,34
31 2,81 ,75
31 3,35 ,75
31 3,29 ,78
31 3,71 ,46
31 2,97 ,95
31 3,19 ,60
31 3,06 ,73
31 3,45 ,62
31 3,23 ,80
31 3,03 ,71
31 3,32 ,60
31 3,48 ,63
31 3,16 ,78
31 3,10 ,60
30 2,73 ,64
30
Interesting work
Career and promotion
prospects
Professional
development and growth
in the organization
Time to make my job well
A good work atmosphere
Secure job
Appreciation of work done
Work for a friendly
supervisor
Work with friendly
employees
Knowing what is expected
of me
Good working conditions
Fairly pay for my job
Learning new skills
Contribution to the
company
Having good salary
Having good benefits
other than salary
Valid N (listwise)
N Mean Std. Deviation
Figure 11. Descriptive statistics of motivational factors
Table 31. Interesting work
Having interesting work
4 12,9
27 87,1
31 100,0
quite important
very important
Total
Valid
Frequency Percent
The most important motivational factor for Necsom’s employees undoubtedly is interesting
work. All employees think it is either very important (87%) or quite important (13%).
Having a good atmosphere at work is almost of the same importance. 71% regard is as
very important and 29% as quite important.

43
Table 32. Good work atmosphere
Having a good atmosphere at work
9 29,0
22 71,0
31 100,0
quite important
very important
Total
Valid
Frequency Percent
Table 33. Good working conditions
Having good working conditions
1 3,2
4 12,9
19 61,3
7 22,6
31 100,0
not important
of little importance
quite important
very important
Total
Valid
Frequency Percent
84% regards good working conditions as an important motivational factor, but only over
60% think it is important to have a secure job.
Table 34. Secure job
Knowing that my job is secure
2 6,5
8 25,8
10 32,3
11 35,5
31 100,0
not important
quite important
very important
Total
Valid
Frequency Percent
Table 35. Professional development and growth
Professional development and growth in the organization
1 3,2
2 6,5
13 41,9
15 48,4
31 100,0
not important
quite important
very important
Total
Valid
Frequency Percent
More than 90% say that professional development and growth in the organization is an
important component of what they are looking for in their jobs. Same amount of
respondents look for learning new skills. It is interesting to notice that employees in all
categories of position within company see those matters important, even the managers.

44
Table 36. Learning new skills
Learning new skills
2 6,5
12 38,7
17 54,8
31 100,0
quite important
very important
Total
Valid
Frequency Percent
Learning new skills
very important
quite important
Count
10
8
6
4
2
0
managerial
R&D
support
Figure 12. How need to learn new skills depends on the position within company
Table 37. Carrier and promotion prospects
Knowing that there are career and promotion prospects
1 3,2
9 29,0
16 51,6
5 16,1
31 100,0
not important
quite important
very important
Total
Valid
Frequency Percent
Fewer employees regard career and promotion prospects just as important. For 32% of
respondents it is not important or of little importance.
Table 38. Sufficient time to do the job well without feeling stressed
Having sufficient time to do my job well, without
feeling stressed
6 19,4
10 32,3
15 48,4
31 100,0
quite important
very important
Total
Valid
Frequency Percent

45
Moreover, 80% of employees think it is important to have sufficient time to their job well,
without feeling stressed.
Table 39. Appreciation of work done
Appreciation of work done
3 9,7
19 61,3
9 29,0
31 100,0
quite important
very important
Total
Valid
Frequency Percent
Over 90% would like to feel appreciated for the work done and more than 80% want to
know what is expected of them.
Crosstab
% within Work place
13,0%
71,4% 56,5%
28,6% 30,4%
100,0% 100,0%
quite important
very important
Appreciation
of work done
Total
Helsinki Lappeenranta
Work place
Figure 13. Correlation (importance of appreciation / work place)
Table 40. Working for a friendly, competent supervisor
Working for a friendly, competent supervisor I can trust
7 22,6
15 48,4
9 29,0
31 100,0
quite important
very important
Total
Valid
Frequency Percent
Majority of respondents (77,4 %) want to work for a friendly, competent supervisor, which
they could trust. Only 22,6 consider it of little importance.
Table 41. Working with friendly, helpful fellow employees
Working with friendly, helpful fellow employees
2 6,5
13 41,9
16 51,6
31 100,0
quite important
very important
Total
Valid
Frequency Percent
Very important for the respondents is working with friendly and helpful fellow employees.

46
As it was said earlier the majority of employees are of an opinion they get a lot of support
from the people they work with. This is something that the company can be proud of.
Table 42. Being fairly paid for the work
Being fairly paid for the work I do
2 6,5
17 54,8
12 38,7
31 100,0
quite important
very important
Total
Valid
Frequency Percent
Table 43. Having good salary
Having good salary
4 12,9
20 64,5
7 22,6
31 100,0
quite important
very important
Total
Valid
Frequency Percent
Although money is not the main motivator there it is still very important.
Over 90% would like to be fairly paid for the work they do and 87% would like to have a
good salary. Having good benefits other than salary is not that important.
Table 44. Having good benefits other than salary
Having good benefits other than salary
11 35,5
16 51,6
3 9,7
30 96,8
1 3,2
31 100,0
quite important
very important
Total
Valid
Missing
Total
Frequency Percent
% within position within company
25,0% 15,8%
75,0% 57,9% 71,4%
26,3% 28,6%
100,0% 100,0% 100,0%
quite important
very important
Having
good salary
Total
Figure 14. Correlation (need of having good salary / position within company)

47
Having good salary
very importantquite importantof little importance
Count
14
12
10
8
6
4
2
0
Work place
Helsinki
Lappeenranta
Figure 15. Correlation ( having good salary /work place)
Having good benefits other than salary
very important
quite important
Count
12
10
8
6
4
2
0
managerial
R&D
support
Figure 16. Correlation ( having good benefits / position with the company)
Table 45. Contribution to the company
Feeling that I am contributing to the company's success
7 22,6
12 38,7
12 38,7
31 100,0
quite important
very important
Total
Valid
Frequency Percent
The majority (77,4%) want to contribute to the company’s success.

48
Table 46. Knowing what is expected of me
Knowing what is expected of me
1 3,2
4 12,9
13 41,9
13 41,9
31 100,0
not important
quite important
very important
Total
Valid
Frequency Percent
5.4 Brief summary of results
To sum up findings of the study, the results show that employees at Necsom are generally
satisfied with their job. However, the majority of respondents would like to have clear idea
what is expected of them. Most of the employees think that they have no chance for a
promotion even if they do a good job. Many employees would like their job to be
recognized by other people. Only one-third of employees think that they are kept informed
about what is happening in the company.
The aim of this research was to analyse the overall work motivation and satisfaction at
Necsom and to study what motivates employees to work. The purpose was to help
managers to find the right factors that may make the working environment at Necsom even
better. Provided information shall help the managers to design a motivation program based
on employees needs.

49
6 Discussion on the research findings
Understanding what motivated employees and how they were motivated has been the focus
of many researchers. Some of the motivation theories are presented in chapter 3 of the
thesis.
The job of a manager in the workplace is to get things done through employees. To do this
the manager should be able to motivate employees. But that is easy said than done.
Motivation theory and practice are difficult subjects, touching on several disciplines.
Two major approaches that have lead to author’s understanding of motivation are
Maslow’s need-hierarchy theory and Herzberg’s two-factor theory. Although Maslow’s
need-hierarchy theory has been criticized (Hofstede; Trompenaars) it has been still widely
used by researchers (such as Bowen & Radhakrisna 1991; Harpaz 1990; Kovach 1987).
The aim of the research was to see how these theories work in practice.
In order to establish motivational factors the author made a research in the company she
worked for, Necsom Ltd in Finland.
In the study the ranked order of motivating factors were: (1) interesting work, (2) a good
work atmosphere, (3) learning new skills, (4) work with friendly and helpful fellow
employees, (5) professional development, (6) fairly pay for the job, (7) to have sufficient
time to the job well, without feeling stressed, (8) knowing what is expected of me, (9)
appreciation of work done, (10) contribution to the company, (11) having good salary, (12)
work for a friendly supervisor, (13) good working conditions, (14) secure job, (15) career
and promotion prospects, (16) having good benefits.
A comparison of these results to Maslow’s need-hierarchy theory provides some
interesting insight into employee motivation. The number one ranked motivator, interesting
work, is a self-actualisation factor. It is already contrary to Maslow’s theory. Other factors
in order of importance were social factor, self-actualisation factor, social needs again. The
number six ranked, fairly pay for my job, is an esteem factor. A physiological factor, that is
good salary, is ranked as number eleven. Safety needs like good working conditions and
secure job are almost last ranked in the study.

50
Therefore, according to Maslow (1943), if managers wish to address the most important
motivational factor of Necsom’s employees, self-actualisation, social, esteem,
physiological, and safety needs must first be satisfied.
Contrary to what Maslow’s theory suggests, the range of motivational factors are mixed in
the study. Maslow’s conclusions that lower level motivational factors must be met before
ascending to the next level were not clearly confirmed by this study.
However, there are few factors that to some extent could influence results of the research.
Firstly, the researcher was not allowed to ask employees about their incomes. It can be
only assumed that all employees earn enough money to meet their physiological needs as
buying food or paying their rents. On the other hand results show that only less than half
employees think they are well paid for their job and a large majority would like to be fairy
paid for the work they do. At the same time 87% of respondents are of an opinion that
good salary is important. Secondly, although the survey was totally confidential, many
employees were afraid that their answers will be shown to Necsom directors. Many times
employees had to be assured that the researcher will be the only person seeing and
analysing results of the research.
The fact remains that the most important motivational factor for Necsom’s employees
undoubtedly is interesting work (100% employees stated it as important).
The other example compares the two highest motivational factors to Herzberg’s two-factor
theory. Herzberg’s work categorized motivation into two factors: motivators and hygienes.
The highest ranked motivator, interesting work, is a motivator factor. The second ranked
motivator, a good work atmosphere, is a hygiene factor. Herzerg (1959) stated that to the
degree that motivators are present in a job, motivation would occur. The absence of
motivators does not lead to dissatisfaction, but to the degree that hygienes are absent from
a job, dissatisfaction will occur. When present, hygienes prevent dissatisfaction, but do not
lead to satisfaction.
In the study, the lack of interesting work (motivator) for Necsom employees would not
lead to dissatisfaction, but in the case when there is not a good work atmosphere it may

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