To

Munsura Rahmatullah
Course Instructor of Introduction of Behavioral Science
Faculty of Business Administration
American International University-Bangladesh (AIUB)

Subject: Submission of report on “Study on Motivation in the Organization”

Madam
It is our great pleasure to submit the report on “Study on Motivation in the
Organization”. This is a partial requirement of the course “Introduction of Behavioral Science”.
Despite of several limitations, we hope that the paper has attained its purpose to a considerable
extent. We thank you for allowing us the opportunity to do the report on this topic.

We have done our level best to complete this paper in time and with the quality of our
expectation. We are thankful to you for giving us this opportunity.

We hope you would be kind enough to accept our report. We will be happy to provide
further clarification regarding this report.

We hope that our report will aid to make concrete decision and live up to your
expectation.
Sincerely Yours,

Bhuiyan Niaz Mahmud

ID#07-07941-1 ---------------------------
Taposhi Kaniz
ID# 07-08068-1 ---------------------------
Gomes, Gregory Alexander
ID# 07-07950-1 ---------------------------
Chowdhury, Shahirul Shariff
ID# 07-08135-1 ---------------------------
Chowdhury MD. Shahariar
ID#07-09063-2 ---------------------------
Bhowmik Apurba
ID# 07-08367-2 ---------------------------

Executive Summary

This report is the result of an assignment given by our respectable faculty and coordinator
Mrs. Munsura Rahmatullah. At the start of our Introduction of Behavioral Science course, our
faculty assigned us to study the Study on Motivation in the Organization of an organization and
submit a formal report at the end of our summer, 2008 semester. The main criteria were to
determine how that specific organization implements apply motivation process for achieving its
goals. Our first action was to choose an organization with a clear & specific, which use
motivation process in the Organization.

As we choose BRAC Bank to work on, the report mainly focuses on how BRAC Bank
implements Motivation for achieving their target. While taking the interview we faced some
problems. Despite of problems we tried our level best to collect information. Based on our
survey we came to know that the overall motivation process of BRAC bank is very encouraging
to their employees. Based on our survey we found that BRAC bank applies Fredericks
Hertzberg’s ‘TWO FACTORS THEORY’ which focuses on motivation and hygiene. We also
did the SWOT analysis of BRAC bank. We found some threat and weakness and according to
that we suggest some solution. Finally we would like to thank the employees of BRAC bank and
special thanks to Miss Raihana Parvin Ripa, Senior Business Executive to help us collecting
information regarding this topic.
 Table of Content

Subject Pages
Part 01: Introduction

1.1 Objective of the Report 01

1.2 Methodology 01

a) Primary Data 01

b) Secondary Data 01

1.3 Limitation of our Study 02

Part 04: Company

2.1 Company Overview 03

2.2 Company Mission 03

2.3 Company Vision 04

Part 03: Motivation

3.1 Definition of the Motivation 05

3.2 The Role of Motivation 05

3.3 Reward & Reinforcement 05

Part 04: Findings

Part 05: Motivation Theory in Bank & Others 07

5.1 Motivation Theory in Bank 13

5.2 SWOT Analysis 14

Part 06: Recommendation 15

Part 07: Conclusion 16

Bibliography

Part 01: Introduction

1.1 Objective of the Report:

The report is prepared as project on employee motivation of BRAC Bank Ltd and the
topic of the project is “Motivation Process”

• To identify motivation process of BRAC Bank.

• To know about the level of employee job satisfaction.

• To know how many facilities they are giving to their employees.

• To know about their working environment is friendly or not.

1.2 Methodology:

For each and every kind of report, there are two ways of collecting information. It was no
different for us. We have collected our information and data in the following two ways:
a) Primary Data
b) Secondary Data
c)
a) Primary data: Primary data and information was collected through interviewing the lower
level executives who are very much involved in the process of service and customer relation.
Information is collected through informal discussions with executives and senior executives.

b) Secondary data:

Secondary Data has been collected in the following ways:

• Texts regarding the topic

 • Internet sources
• Data gathered within the organization (BRAC) itself. Basically some reports are used
as the source of the internal secondary data.

1.3 Limitations of our Study:

 Because BRAC bank is a service organization, the management gave us only the glimpse
of the strategies and information.
 For the organizational commitment, BRAC bank employees could not provide us with
some of the financial data and information.

 Lack of comprehension of the respondents was the major problem that created many
confusions regarding verification of conceptual question.

 Rush hours and business was another reason that acts as an obstacle while gathering data.

 The web site of BRAC bank has not enough information.

Part 02: Company

2.1 Company Overview

BRAC Bank Limited, with institutional shareholdings by BRAC, International Finance
Corporation (IFC) and Shore cap International, has been the fastest growing Bank in 2004 and
2005. The Bank operates under a "double bottom line" agenda where profit and social
responsibility go hand in hand as it strives towards a poverty-free, enlightened Bangladesh.

A fully operational Commercial Bank, BRAC Bank focuses on pursuing unexplored

market niches in the Small and Medium Enterprise Business, which hitherto has remained
largely untapped within the country. In the last five years of operation, the Bank has disbursed
over BDT 1500 crore in loans to nearly 50,000 small and medium entrepreneurs. The
management of the Bank believes that this sector of the economy can contribute the most to the
rapid generation of employment in Bangladesh. Since inception in July 2001, the Bank's
footprint has grown to 22 branches, 350 SME unit offices and 19 ATM sites across the country,
and the customer base has expanded to 200,000 deposit and 45,000 advance accounts through
2006. In the years ahead BRAC Bank expects to introduce many more services and products as
well as add a wider network of SME unit offices, Retail Branches and ATMs across the country.

BRAC, a national, private organization, started as an almost entirely donor funded, small-
scale relief and rehabilitation project initiated by Fazle Hasan Abed to help the country overcome
the devastation and trauma of the Liberation War and focused on resettling refugees returning

from India. Today, BRAC has emerged as an independent, virtually self-financed paradigm in
sustainable human development. It is one of the largest Southern development organizations
employing 97,192 people, with 61% women, and working with the twin objectives of poverty
alleviation and empowerment of the poor.
2.2 Company Mission:
Building a profitable and socially and responsible financial institution focused on
Marketing and business with growth potential, thereby assisting BRAC and stakeholders build a
“just, enlightened, healthy, democratic and poverty free Bangladesh”

2.3 Company Vision:

The vision of the bank is given below:

 Sustained growth in “Small & medium Enterprise” sector.

 Continuous low-cost deposit growth with controlled growth in Retail Assets.

 Corporate assets to be funded through self-liability mobilization. Growth in Assets

through Syndicators and Investment in faster growing sector.

 Continuous endeavor to increase fee based income.

 Keep our debt Charges at 2% to maintain a steady profitable growth.

 Achieve efficient synergies between the bank’s branches. SME unit offices and BRAC
field officers for delivery of remittance and Bank’s other products and service.

 Manage various lines of business in a fully. Controlled environment with no compromise

on service quality

 Keep drivers, far flung team fully motivated and driven towards metalizing the banks
vision into reality.
Part 3: Motivation

3.1 Definition of Motivation:

Motivating employees has become a common practice in today’s most of the successful
organizations in order to achieve organizational goals. The word “Motivation” came from the
Latin word “Movers” which means to move or to encourage a person to behave in a certain way.
In other words, motivation is the process that accounts for an individual’s intensity, direction and
persistence of effort toward attaining a goal.

 Intensity: how hard a person tries.

 Direction: toward beneficial goal.

 Persistence: how long a person tries.

3.2 The Role of Motivation:

Why do we need motivated employees? The answer is survival (Smith, 1994). Motivated
employees are needed in our rapidly changing workplaces. Motivated employees help
organizations survive. Motivated employees are more productive. To be effective, managers
need to understand what motivates employees within the context of the roles they perform. Of all
the functions a manager performs, motivating employees is arguably the most complex. This is
due, in part, to the fact that what motivates employees changes constantly (Bowen &
Radhakrishna, 1991). For example, research suggests that as employees' income increases,
money becomes less of a motivator (Kovach, 1987). Also, as employees get older, interesting
work becomes more of a motivator.

3.3 Reward and Reinforcement:

A reward, tangible or intangible, is presented after the occurrence of an action (i.e.

behavior) with the indentation to cause the behavior to occur again. This is done by associating
positive meaning to the behavior. Studies show that if the person receives the reward
immediately, the effect would be greater, and decreases as duration lengthens. Repetitive action-
reward combination can cause the action to become habit.

Rewards can also be organized as extrinsic or intrinsic. Extrinsic rewards are external to
the person; for example, praise or money. Intrinsic rewards are internal to the person; for
example, satisfaction or a feeling of accomplishment.

Some authors distinguish between two forms of intrinsic motivation: one based on
enjoyment, the other on obligation. In this context, obligation refers to motivation based on what
an individual thinks ought to be done. For instance, a feeling of responsibility for a mission may
lead to helping others beyond what is easily observable, rewarded, or fun.
Part 4: Findings
To find out the most important motivational factors for higher productivity we have made
a questionnaire survey among the BRAC Bank employees. The findings with analysis of the
questionnaire survey are given bellow.

4.1 Most important factors to the employees on job selection:

To find out the most three important factors we have provided some options in the questionnaire;
and our findings are as follows:
According to the respondents the most valuable thing to them is “Good working condition” .The
employees of BRAC Bank believes good working condition is the most important and
motivational to them. The second best is “Sensible company rules, regulations,
procedures, and policies” and the third attractive is “Job security” to them. And the least
important factor to them is” A challenging job”.

4.2 Satisfaction level of employees with the present salary offered:

Among the total respondents, 74% are highly satisfied with the present salary and about 26% are
satisfied about the present salary structure. In this case, we found that the average
respondents are satisfied with the salary. And interesting finding is that, none of the
respondents are uncertain or dissatisfied which in the context of the third world country
industry is quiet abnormal.
As from the research, it is quite sure that the employees of BRAC bank are happy with the
existing salary. However, the most interesting thing is most people believe that money
is the biggest incentive, which is not. Therefore, motivation cannot be boosted, certainly
long term, simply by giving satisfactory salary at the employees. of course, salary (in
fact total remuneration) is important. Nevertheless, it must be considered, just like every
other factor, but you do not need to write off salary completely. A salary increase,
especially one awarded for merit, is certainly motivational.

4.4 Providing salary on time:

All the respondents answered that the company provides salary on time
4.4 Satisfaction level of employees with the present bonus offered:
Among the total respondents, 43.33% are satisfied with the present bonus offered to them and
56.66% are dissatisfied about the present bonus structure. In this case, we found that the
average respondents are satisfied with the bonus.

4.5 Participation of employees in decision making:

Employee involvement is important to motivate employees for higher productivity. If employees
are involved in selecting their goals along with the management, they will find interest to do the
job and they will do it with sincerity. Here, among the 100%, 45% remarked that they always
and sometimes participate in settings goals respectively and 10% remarks they never participate
and rest of the employees are No Comments of this Question
4.6 Satisfaction level of employees with the present kind benefits offered:
Among the total respondents, 90% are satisfied with the present kind benefits offered to them
and about 10 % are uncertain about the present kind benefits. In this case, the researcher found
that most of the respondents are satisfied with the present kind benefits offered to the employees

4.7 All treated fairly: Employees do not see or experience inequality:

Among the total respondents 90% think that they are fairly treated by BRAC bank management
and about 10% rated that they are not sure about what they are getting from he
management .In this case we found that maximum of the respondents believe that they
are getting satisfactory treatment from the management working for BRAC bank,
Bangladesh.

When an employee genuinely feels unimportant or ill treated, he/she will definitely be de-
motivated. So it is very important for the top management to see that the employees are always
valued and fairly treated. This means investing in their success , trusting and empowering them,
giving them the opportunity to be involved in matters with which they are concerned, keeping
them fully in the picture , treating them fairly and providing them with rewards (financial and
non-financial) which demonstrate the extent to which they are valued. But after the research it is
really appreciable to find out BRAC bank management is treating there executives with real care.

4.8 Always feel free to express ones opinion without fear of being marginalized:
 Among the total respondents, 54% think that they can express their opinion without fear
of being marginalized or losing favor always, about 45% rated that they can sometimes free to
express their opinion not always. The management believes it’s a great sign because if the
employees can open up with their opinions to their bosses, it will create a bridge of relationship
among them and these employees will be able to work as a team and naturally there will be more
understanding between them and team synergy will increase which will highly benefit the BRAC
bank, Bangladesh ultimately.
4.9 Employee job satisfaction:
100% respondents remarked that they are satisfied.
4.10 How the employees are treated when they make errors:
Among the 100% respondents, 20% said that they are treated very rudely, 30% said they are
treated rudely, 30% said normally treated, 20% did not give any comment.
Part 05: Motivation Theory in Bank & SWOT
Analysis

5.1 Motivation Theory Applied by BRAC Bank

Based on the above information, we found that BRAC Bank applies “Herzberg's Two Factors
Theory”

The Two Factor Theory

Frederick Herzberg's studies of job attitudes and their connection with industrial mental health
are related to Maslow's theory of motivation. His findings have had a considerable theoretical, as
well as a practical, influence on attitudes toward administration. According to Herzberg, man is
not content with the satisfaction of lower-order needs at work, for example, those associated with
minimum salary levels or safe and pleasant working conditions. Rather, he looks for the
gratification of higher-level psychological needs having to do with achievement, recognition,
responsibility, advancement, and the nature of the work itself. So far, this appears to parallel
Maslow's theory of a need hierarchy. However, Herzberg added a new dimension to this theory
by proposing a two-factor model of motivation

5.2 SWOT Analysis

The Strengths,Weaknesses,Opportunities, and Threats (SWOT) analysis of BRAC is described in
the following table-

Strengths:
 Sound profitability and growth with good internal capital generation

 Larger corporate client base

 Skilled management team and human resource

 Quality services

 Systematic chain of comand

 Better infrastructural facilities

 Company reputation and goodwill automation of transaction processes and online

banking
 Using modern technology for their banking operations.
  BRAC bank is the first Bangladeshi private bank to start international banking operaitons
in Afghanistan.

Weaknesses:
 Small market share

 Limited branch network

 High concentration on fixed deposits and largescale loans

 Higher interest rate compared to other banks.

 Offer high charges for service

Opportunities:
 Scope of market penetration through diversified products

 Government’s policy of encouraging heavy inflow of foreign investment

 Regulatory environment favoring private sector development

 Value addition in services

 Increasing trend in international business

Threats
 Other banks offer lower charges for service.

 Other banks give better basic salary than BRAC bank.

 Less concentration in small loans

 Various up-to-date policy of other banks.

 Strong employee grooming by other bank.

 Timely marketing drive by other bank.

Part 06: Recommendation:

• They can try to capture larger market share.

• Thay should increase their branch.

• Increase ATM booth.

• They can reduce their service fees to attract more customers.

• Increase basic salary of their employees.

• Give concentration in small loans.

• They can take various up-to-date policy.

• They can start employee grooming to make their employees more efficient

Part 07: Conclusion:

BRAC bank is one of the leading private banks in Bangladesh. They have a huge number of
customers in the whole country. The reasons behind there successive number of customers is
their highly motivated employees. To retain their existing customer and also attracting new
customer, they try to keep their employees motivated. And to do that they provide their salary on
time, give commission based on their performance and other bonuses. But they have some
lacking such as high service fees, less concentration on small loans, insufficient ATM booth and
so on. So BRAC bank should try to overcome all the problems to retain the existing customers
and attracting new customers. If they overcome these problems new customers are more likely
open accounts in the BRAC through the employees which will increase the commissions of the
employees. Thus the employees will be motivated.
 Bibliography

 Website:

 www.google.com
 www.wekipedia.org
 http://www.globalchange.com/motivation.htm

 http://www.joe.org/joe/1998june/rb3.html

 http://psychclassics.yorku.ca/Maslow/motivation.htm

 http://www.ericdigests.org/1998-1/motivation.htm

 http://researchnews.osu.edu/archive/inmotiv.htm

 http://www.uni-konstanz.de/FuF/SozWis

 http://www.uiowa.edu

 http://www.bracbank.com

 Magazine:
 Annual Report of BRAC Bank (Book Closing year 2007)

 Books:
 Organizational Behavior by Stephen P. Robbins (7th Edition).

 Management by Stephen P. Robinsons & Marry Coulter (8th Edition)

 Software:

 Microsoft Encarta.