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WHAT ARE THE ESSENTIAL FACTORS FOR

EMPLOYEE RETENTION IN AGRO-BASE INDUSTRY?
Contents

Contents...............................................................................................................................2
1 Research Brief...................................................................................................................3
2 Problem Statement: ..........................................................................................................4
3 Policy Questions to be examined .....................................................................................6
4 Research Objectives..........................................................................................................6
5 Research Hypotheses .......................................................................................................7
6 Literature Review..............................................................................................................7
6-1 Motivational Theories and sugar Industry..............................................9
7 Research Methodology ..................................................................................................13
7.1 Research Onion:....................................................................................13
8 Research Methods ..........................................................................................................14
8.1 Use of Secondary Data and Data Analysis............................................15
9 Conclusions:....................................................................................................................16
10 TIMESCALE:...............................................................................................................16
11 References:....................................................................................................................17

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1 Research Brief

The sugar industry is the second largest1 and one of the most
important industries of Pakistan with 822 sugar mills in Pakistan3 and
one at Azad Jammu Kashmir4 (AJK)5. Figure 1 shows growth of sugar
mills in Pakistan 1947-2006. Figure 2.1 shows that Pakistan had only
two sugar mills at the time of independence, which has reached to 82
by 2002-03.

The sugarcane crop is a major source of income for growers in the

country who earns Rs. 43-50 billions from its sale to the sugarcane
factories annually6. It is rich source of fodder7 for the animals
especially during the fodder shortage months in winter 8. Moreover,
sugar industry is using a business of over Rs. 100 billions through
sugar and its by-products like molasses, alcohol, bagasse and press
mud9. Sugarcane farming, trading and industry provides livelihood to
millions of people10. A handsome amount is also earned by government
through taxes and utility bills from growing to crushing of cane in the
mills11.

1
After textile industry
2
Punjab has 42, Sindh has 34 and NWFP has 6 sugarcane factories
3
Pakistan Sugar Book, 2005
4
Beside this there are also 4 beet sugar factories, 27 Ethanol distilleries, 8 Particleboard plants & 7 Liquid
sugar factories
5
AJK is the one of the disputed part of Kashmir with Pakistan.
6
Chamber of Agriculture Sindh, 2006
7
Four percent
8
Cane Deprtment,2006
9
Chatta, Sugarcane Research Institute, Faisalabad, 2006
10
Daily Dawn Karachi, March, 2005
11
Statistics of Pakistan, 2004

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Figure 1: Growth of Sugar Mills in Pakistan - years 1947-2006

90
82

80 77
75
71
70 68
65

60
60
53
51
50
44 45
41
39 40
40 36
34 35
30 31
30 27 28
25
23 24
21
19
20 17
15
13
10
9
10 6
8
5
2 3

0
9 4 6 0 3 4 5 6 7 8 1 2 3 4 6 7 8 9 0 1 2 3 5 6 7 8 9 1 2 3 4 5 6 7 5 6
4
- 5
- 5
- 6
- 6
- 6
- 6
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- 6
- 7
- 7
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- 8
- 8
- 8
- 8
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- 9
- 9
- 9
- 0
- 0
-
7 9 4 6 0 3 4 5 6 7 8 1 2 3 4 6 7 8 9 0 1 2 3 5 6 7 8 0 1 2 3 4 5 6 7 5
4 4 5 5 6 6 6 6 6 6 6 7 7 7 7 7 7 7 7 8 8 8 8 8 8 8 8 9 9 9 9 9 9 9 9 0

No: of sugar Mills

Source: PSST, 2005

2 Problem Statement:

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This research study intends to device a guideline especially, in the
context of developing our understanding about the presumption that
although agriculture sector must be integrated with the development
of agro-based industries but the pace of development has remained
very slow in Pakistan. The conceptual framework of motivation among
workers as key factor for employee retention in an organization is used
to test the extent of success in agro-based industries.

Research intends to link motivation among sugar workers as retention

strategy and productivity. It also focuses upon why and how the
objectives of the organizations, over a time vary and how best they
could be examined through motivation to boost the production levels
and employees retention. There are different management levels, the
top level includes the Directors and Managers, the middle level
includes specialists, engineers, officers, foremen, supervisors, skill and
semi-skill employees. While the bottom level include all unskilled
labour, coolies, helpers, peons and mess bearers etc. The study
focuses that in the present era of competition all agro-based industries
are under acute pressure to improve their performance to set the
motivators.

It is envisaged that motivators for top management are challenging

job, self-actualization, achievement, prestige and advancement.
Motivators for middle management are responsibility, authority,
training, value and recognition. The motivators for lower management
are job security, job of interest, pay, sympathetic approach, self
respect, willingness to perform, loyalty to continue job and contribute
towards achieving organizational goals.

5
3 Policy Questions to be examined
The research is to obtain the answers of questions related
with the productivity of the industry. Main questions are
produced below:
1. How does production of sugar could be related to motivation
among sugar industry worker?
2. Why motivation is important as employee retention and how best
the managers could ensure that organizational goals are
achieved thorough motivation?
3. What are the causes the causes that could lead to unwillingness
to work for achieving goals? How best motivation through
promotions and training would influence unwilling workers in
Sugar industry?

4 Research Objectives

Overall, this research intends to examine the theoretical relationship

between the levels of motivation between employees, organizational
security and productivity. The specific objectives are narrated as
below:

1. Review analytically the role of agro-based industries such as

the sugar mills in the economic development of Sindh in
particular and Pakistan in general;

2. Examine relationship between motivational levels among

workers and security concerns with productivity in the sugar
industry;

3. To examine the motivation factor by levels of responsibilities

of employees in the industry; and

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 4. Suggest policy recommendations.

5 Research Hypotheses
1. Agro based such as sugar industries are significant contributors
in the economy of Sindh;

2. Employment opportunities and essential labor force are

significantly higher in sugar mills to that of any other agro based
industry in Sindh;

3. The levels of motivation among the workers at all levels i.e. top,
middle and bottom has significantly impact on production of
suger;

4. The motivational levels among workers are significantly

correlated to job satisfaction, promotion, salaries and
environment in the sugar industry; and

6 Literature Review
Theorists have focused motivation as to get goals by satisfying
multiple goals. To achieve multiple needs one performs well, it is to
satisfy others for own goals, it is to improve behavior for
accomplishment of job, it is to increase efficiency, to go for growth with
satisfying human needs, intention to work towards goals, attempting to
influence others, influencing people for group objectives. It is an
encouragement, to work or act in a desired manner, to impel someone
to act or not to act in certain ways, influence for greater satisfaction to
accomplish organization goals or act of stimulating someone to get
desired action to give importance to work by giving confidence and
knowledge to worker. It is art of helping people to focus their minds

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and energies on doing their work as effectively as possible, will to
achieve, influence to get results an internal drive to satisfy an
unsatisfied need, psychological process that gives behavior, purpose
and direction, a predisposition to behave in a purposive manner to
achieve specific, unmet needs, process that account for an individual
intensity, direction and persistence of effort towards attaining a goal. It
is inner force that drives individuals to accomplish personal and
organizational goals, forces within an individual that account for level,
direction, and persistence of effort expanded at work, it is channel
someone to achieve goals, to peruse towards the completion or
organization goals, urge to move in a given direction and achieve
certain goal12 given a reason to act. Figure 2 conceptualizing
motivation gives the knowledge as how to run on path of motivation.

Figure 2: Conceptualizing Motivation

Motivation Choice
Is the Some level
psychologica of job
l? That leads to That results Performance
process of in
Behaviors

Source: PIM Karachi, 2005

Figure 2 demonstrates that although motivation is psychological

process as in a way it is an influence upon the workers to achieve
certain performance levels for an output, which must match with the
12

8
organizational goals.

6-1 Motivational Theories and sugar Industry

Motivation is willingness to exert high level of efforts to reach

organizational goals, conditioned by efforts ability to satisfy some
individual need. Linking motivation among the workers performing to
achieve organizational goals scholars such as Murray, 1930 suggested
that motivation directly link with human personality i.e. personality of
workers engaged towards achieving organizational goals. Murray
argued that motivation is affected by internal and external factor that
account for behavior among workers.

Further Maslow, 1954 puts great emphasis upon human who even be
motivated to achieve certain organizational goals but since they are
under the influence of multiple needs that are not directly link with
organizational goals must be taken into account. For example, sugar
industry worker’s role is not to get higher productivity but his role is
safety and needs or psychological satisfaction. Needs are summarized
as Box No: 1 as Hierarchy of needs.

Box 1: Hierarchy of Needs Theory

Physiological needs Food, Water, Heat Air, Shelter Sex Rest. etc.
Safety needs Freedom from Physical, Emotional Economical
threat
Social Belongingness, Friendship, Love etc.
Self Esteem Recognition, Attention, Respect,
Appreciation
Self Actualization Self-Growth, Development, Self
-fulfillment
Source: Maslow, 1954

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George, 1960 explained that subordinates as employee inherently
dislikes work and whenever possible, will attempt to avoid it, while on
the other hand a person will exercise self-direction and self-control if
he is motivated. Theories of George are very relevant to sugar industry
as these provides guidelines for managers as on one hand employees
shirk responsibility, show little ambition to work, has negative views
and likes rest while on the other hand employee has control to achieve
objectives and exercise commitment for achievement. Therefore,
George demonstrated a firm strategy in dealing with employees for
higher productivity.

Further, Clenland 1960 proposed that certain needs are acquired

during the individuals’ lifetime. Clenland demonstrated that people are
not born with these needs but they learn them through experience.
Cleland emphasized that employee wanted to achieve promotions and
financial benefits for which he could work-hard and produce results.
Clenland theory in regard to sugar industry provides understanding for
consideration of employee benefits for greater productivity.

Adam’s 1964 focused on individuals perception of how fairly they are

treated compared with others. Adams suggested people are motivated
to seek social equity13 in the reward they expect for performance.
Adam argued that people perceive their compensation as equal to
what other receive from their contribution with ratio of inputs and
outcomes14. Adam’s theory has great role with sugar industry as

13
In Equity Theory Adams has its significant in the sugar industry for securing the secret data and
practicing ethics. This is possible with proper reward for proper work. The reward does not mean money
but it is the recognition, other benefits like promotion, health cover, accommodation, fridge benefits and
social status. The theory demonstrates the ratio as ratio of secrets, data, information and records are
compared with the ratio of motivational tools provided.
14
Inputs include education, experience, effort and ability. Outcome from a job include pay, recognition,
benefits and promotion.

10
employees could product better results with rewards and proper
compensation.

Another scholar Vroom, 1964 identified types of needs with the

thinking process that individual like to achieve rewards. Vroom
demonstrates for relationship among the individuals’ effort and
performance15. Vroom’s theory is workable in sugar industry as it gives
food for thought to responsible managers to design the compensation
policies.

Further Hertzberg, 1969 contributed towards environment, the workers

have to perform for achieving organizational goals. In Hertzberg’s
opinion working conditions plays significant role along-with pay,
interpersonal relation, achievement and recognition from the
organization, opportunity for worker to grow further at high level of
decision making, it is argued that these factors are an integral part
that could be examined in a sugar industry and Hertzberg
demonstrated that high motivation gives high performance. To
understand the Hertzberg in relation to sugar industry, he suggested
hygiene factors like working conditions and policy shall more friendly
with motivators to employees as his growth and recognition.

Ouch’s, 1989 suggested that employees can be trusted to do their jobs

as per their ability and management can be trusted to support them16.
Ouch demonstrated that one of the most important tenets of this
theory is that management must have a high degree of confidence in

15
The expectancy theory has its weight age in the manufacturing industry like sugar mills. Employee
knows his capability and he must be accommodated as per his work. The theory demonstrates that
performance of the employee or his capability to secure the secret data and exercise business ethics could
be enhanced by wise use of motivational tools.
16
To workout for their well being

11
its employees17 and employees must be very knowledgeable about the
various issues of the company18. Ouch’s theory gave guideline to
managers of sugar industry that while passing orders they must take
into confidence to employees that why this work is to be taken and
what results are required. Ouch also advised that employee must be
very clearly told for the end results as well as objectives required to be
achieved. Accordingly to Ouch employee could contribute in better
way if he will be brought in true picture for the requirement of the
assignment.

These theories sum up that motivation is an act of stimulation towards

a desired course of action and has the relation with the behavior of the
persons on the job. Motivation is an unending process and the
management should have to provide constantly for monetary as well
as non-monetary incentives so that the needs of the workers may be
satisfied and they may be pushed to work which zeal and enthusiasm.
Psychologists view motivation as the force, which impels or incites all
living organism to action in the direction towards achieving the
objectives of organization. The management should constantly provide
for incentives or motivating forces to intensify their desire and
willingness to apply their potentialities for the achievement of common
objectives.

These theories were reviewed in relationship made especially to the

contest of sugar industry and it is revealed that motivation is the
willingness to exert high levels of efforts to reach organizational goals
and it is to improve behavior for accomplishment of job. Motivation is
an inner force that derive individuals to accomplish personal and

17
The motivational levels among workers are significantly related to job satisfaction, promotion,
salaries and environment in the sugar industry
18
But to use their knowledge is in benefit for the organization. Knowledge is a very sensitive weapon to be
used more wisely

12
organizational goals, thus it is forces either within or external to a
person that arouse enthusiasm and persistence to peruse a certain
course of action. The study of motivation helps the practicing
managers to understand what prompts people to initiate action.

It is argued that money is not the chief motivator at sugar industry; but
there are different motivators for different tiers of the management.
Theorist has explained motivational tools for different behavior to
enhance productivity, which shows motivation for basic needs and
other multiple needs for improving behaviors. These theories provide
details for working conditions, pay, policies, relationships,
achievement, recognition, growth and responsibility etc. Managers are
to be tactful to take desired results by looking the nature of the
employees. Threats, disciplinary actions, rewards and encouragements
are to be used wisely as the employee shall behave for greater
productivity. The study of motivation also enables managers to review
their leadership style as managers are to be careful for better results.

7 Research Methodology
The Research Design or Research methodology is the plan
which researcher conduct research of at given topic. The
writer Creswell said in 1998 that “research design is based
on the research problem or issue being addressed”. There
are three types of research designing Quantitative,
Qualitative and the last one is mixed methods, which use for
the analysis.

7.1 Research Onion:

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I would follow the features of the research onion as in below diagram:

8 Research Methods
One can easily ascertain that the research is based on multiple
objectives giving that it is not only focus on motivation in the
organization but it also looks at the security in the context of
objectives of the organization, literature suggests that in situation like
above the methodology must be based upon a combination of
approaches to achieve intended objectives. There is no single correct

14
survey method in most instances. There are a variety of methods
involving the survey. Good design will match the characteristics of
different approaches to the objectives and constraints. A summery of
study universe and data collection tools is given at figure 3.
Figure 3: Study Universe and Data Collection Tools

Matiari Sugar Mills

a) Selection of respondents (i.e. mills employees) by
three major tiers with each having varying levels of
responsibilities:
Study
Universe • Tier one: Top Management
• Tier two: Middle Management
• Tier three Bottom Management19
b) Growers interviews
c) Interviews with the contractors.

a) Detailed secondary data via Internet, sugar journals,

PSST Conventions, PSMA handouts etc.

Mode of b) Primary data using both close and open ended

modes of data collection.
Data
collection c) Group interviews with the growers, contractors,
employees in the mills.
d) In-depth interviews with Board of Directors in the
mills.

8.1 Use of Secondary Data and Data Analysis

Majority of research studies there is a tendency that secondary sources

of information are ignored by researchers and too much emphasizes is
placed on collection of primary data from the field. As a result,
background or insight about the survey area is largely ignored. The
analysis of such data would assist to make valid inferences about
19
In-depth interviews on key parameters

15
suggestions and policy recommendation for the area as a whole It is
mentioned that for analysis purposes SPSS and Excel will be used.. As
such, the secondary sources are grouped for this study is as under:

i. Survey data for Sugar Mills in Pakistan

ii. Development in agriculture in Pakistan.
iii. Agro base industries of the country.
iv. Conceptualizing security, motivation, management, leadership
and organizational behavior.
v. Report of sugar mills for last five years.

9 Conclusions:

This research will help us to know how employee retention is the

increase productivity of the organization and how to motivate
employees etc. Through the research researcher will know what are
the most factors improve the employee retention i.e Pay increase,
Bonuses or non financial factors i.e training & development, work
atmosphere etc.

10 TIMESCALE:

Proposal presentation 22nd December 2010

Written Research proposal (draft) 30th December 2010
Written Research proposal (final) 10th January 2011
Information and data collection February 2011
Interviews with various stakeholders February 2011
Analysis of the information collected February / March 2011
Final writing of the dissertation March 2011

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Submission End of March 2011

11 References:

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MASLOW, A.H. (1970). Motivation and personality (2nd ed.). New

York: Harper & Row.

ROTTER, J.B (1966). Generalized expectancies for internal versus

external control of reinforcement. Psychological Monographs, 80
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SKINNER, B.F. (1938). The behaviour of organisms. New York:

Appleton-Century-Crofts.

VERNON, W. (1969). Animal aggression: Review of research. Genetic

Psychology

SKINNER, B.F. (1938). The behaviour of organisms. New York:

Appleton-Century-Crofts.

Thorpe Richard and Homan Gill (2000) Strategic Reward Systems. Pearson Education
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VROOM, VICTOR H. (1976) “Can leaders learn to lead?” Organizational

dynamics, (17-28)

Buckingham, Alan and Saunders, Peter (2004) The survey methods workbook: from
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Articles / Papers

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Abraham Rebecca (1999) the relationship between differential inequity, job satisfaction,
Intention to turnover, and self-esteem. The Journal of Psychology, Vol. 133, No. 2, pp.
205-16.

P.S.M.A. (2000) Papers Read at International Conference on Sugar

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