Term Paper on
The Problem of Employee Motivation in the Fast Food outlets in Dhaka and Strategies to Improve the Problems

Submitted To
Professor Md. Abdul Hannan Mia, Department Of MIS University of Dhaka
B.Com(Hons), M.Com, PGD, MSc,MBA, FCMA,Ph.D.

Submitted By Imran Ali ID: 61424-17-043 Department of MIS

Date of Submission: August 17, 2013

Abstract
Motivation increases the level of performances of employees and also increases their commitment in the workplace. This implies that motivating workers is very important. Among these workers the fast food workers are unique and have their individual needs, potentials, values and goals. Job satisfaction leads to job motivation. Therefore, when workers are satisfied, they tend to be motivated to work. The study points out the strategies that could be used to improve the level of motivation of the fast food workers and also discusses the causes of low employee motivation within the organization. This will also assist the management of the fast food industries in improving the performances of their employees. A case study approach was used for the survey because only the fast food industries were involved. Information was obtained from the operational workers, administration, cashiers and the managers orally. The respondents have given answer which approximately gave a good response rate. Research proved that the rate of personal growth of the employee’s in their workplace was not satisfactory within majority respondents. Also, the flexible time plan was not satisfactory to the workers because they were being given a flexible time sometimes especially when their workplace is very busy. In addition, the employee’s were not given the privilege of making decision in their workplace especially in the areas that concerns them. However, the researcher recommended that the fast food workers should be empowered in different ways, to give them opportunities to share their views. Also, the skills should be developed through coaching and feedback system. The study includes only the fast food workers that have at least six (6) months experience. This is to obtain a reliable and valid result.

Table of content

Introduction ……………………………………….…………………….……..01 Literature Review ……………………………….………………..……………02 Literature Review Cont. …………………..….………………………………..03 Literature Review Cont. ……………………..………………………………...04 Need for the Study ………………………………………..……………………05 Objective of the Study ……………………………………..…………….…….05 Research Methodology …..……………………………….……………............06 Findings and Analysis ….………………………………………………….......06 Findings and Analysis Cont.…………………………………………………...07 Findings and Analysis Cont.……………………………………………………08 Strategies for Improving Motivation .………………………………………….08 Strategies for Improving Motivation Cont. ………………..…………………..09 Results and Discussion …………………….………………………………….10 Limitation and Future Research ……………………………………………….10 Recommendation and Conclusion ……………………………………………..11 Recommendation and Conclusion Cont. ……..………………………………..12

Introduction:
People management is an important aspect of any organization, and this includes the fast food industry. A well managed fast food industry will normally consider employees rather than financial capital as the core foundation of the business, which also contributes to the industry’s development. Therefore, in order to ensure achievement of the industry’s goals, the fast food industry should create an atmosphere of commitment and cooperation for its employees through policies that facilitate employee motivation and satisfaction. Satisfaction of human resources is closely linked to highly motivated employees. Motivated employees normally perform better, which result in greater productivity and lower labour turnover rates. Moreover, highly motivated employees strive to produce at the highest possible level and exert greater effort than employees who are not motivated. When motivating factors such as challenging jobs, responsibility and so on are inherent in a job, satisfaction is perceived as possible and work-directed energy is aroused and this leads to motivation. The importance of employee motivation should be emphasized within the fast food industry. Some ways to improve motivation in the fast food industry include good remuneration, effective training and skills development, a proper recognition and reward system, and employee growth prospects. Employees’ motivation is one aspect of a human resource management development strategy. ‘ChampionHughes’ states that a holistic approach should be used to improve certain qualities of work life (QWL) such as fringe benefits, better employment conditions, and career development to support facilitation of motivation, which is directed towards achieving the organization’s goal.

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LITERATURE REVIEW
Employee motivation is a process, which accounts for an individual’s intensity, direction and persistence of effort towards attaining a goal. Therefore, intensity relates to how hard a person tries, while direction is the channel through, which a job is performed. Persistence is a measure of how long persons can maintain their effort. Through employee motivation, an organization can achieve a competitive advantage through higher productivity and improved customer. Consequently, when employee motivation is downgraded, the organization will be at risk in relation to finances and other strategic objectives. Hence, employee motivation regulates the behavior of employees and enables them to achieve the desired goals of an organization. Therefore, motivation is the psychological process that provides behavior, purpose and direction. It is also defined as an internal force, which is based on an individual’s conscious and unconscious needs that drive him/her to achieve a goal indeed; it is an internal drive to satisfy an unsatisfied need. Motivation theories When discussing motivation, some theories cannot be ignored, since they explain why people act the way that they do and why others refrain from doing certain things. Regarding this research, theories of motivation will be explored in relation to work motivation in the fast food industry, namely Maslow`s hierarchy of needs and Herzberg’s theory. Maslow`s theory Maslow proposed a theory, which he called the needs hierarchy. These needs are physiological, safety, social fulfillment, satisfaction of the ego and self-actualization. People always have needs, and as soon as one need is satisfied, another need takes its place. From Figure, Maslow stated that individuals move up the steps of a hierarchy and in order to be motivated, one should know which level of hierarchy that person is currently on and focus as on satisfying those needs first. Maslow distinguished between higher and lower order needs, hence, physiological and safety are grouped as lower order needs while social, esteem and self-actualization are referred to as higher order needs. According to Maslow, when the lower order needs, namely physiological and safety, are substantially satisfied, the next need becomes dominant. Therefore, in order to motivate someone, a person should understand what level of the hierarchy that particular person is currently on and focus on satisfying those needs within the particular level. Accordingly, higher order needs can be satisfied internally while lower order needs are satisfied externally. Incentives such as pay, union contracts and tenure are examples of lower order needs. Hence, if basic needs or lower order needs are not met, efforts to satisfy higher order needs will be postponed, according to Maslow’s perspective.

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Self-actualization Esteem Social Safety Physiological

Figure: Maslow’s Hierarchy of Needs

Herzberg`s theory Herzberg investigated the question: “what do people want from their jobs?” There are different variables that can make people feel either good or bad about their jobs. These factors were indicated by Herzberg, which he called the two-factor theory of motivation, namely intrinsic and extrinsic factors. Intrinsic factors include advancement, recognition, responsibility and achievement, while extrinsic factors comprises of status, security, company policy, administration, remuneration, supervision and interpersonal relations, which are referred to by Herzberg as “hygiene” factors. These latter factors do not motivate employees, although they should be present in the workplace to placard employees. Employees are motivated by internal values rather than external values. Hence, motivation should be internally generated through those intrinsic factors, which are known as “motivators”. Among many organizations that need to motivate their employees is the fast food industry. Fast food industries in Bangladesh A western-style fast food industry began to appear in Bangladesh in the 1990s. Local entrepreneurs took lead roles in pioneering the fast food industry of Bangladesh, as new companies such as Swiss and Helvetia opened some of the first fast food shops in the country. In 2003, the first international fast food brand, Yum!’s Pizza Hut, opened a franchise in Dhaka. By 2006, another Yum! Brand, KFC, had also entered the market. Yum! partners with Transcom Foods Limited (TFL), which has opened Pizza Hut and KFC locations in Dhaka (Gulshan and Dhanmondi), Chittagong and Banani in recent years. Other fast food chains in Dhaka include Swiss, Capital, Bamboo Castle, Palki, Dahlia, Golpea, Euro Hut, Golden Food and Domino’s

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Pizza. Culturally, fast food is seen by Bangladeshis as targeting the youth as well as the urban/corporate workforce. Research at certain locations has shown that families with young children frequent fast food establishments. Major western firms are recognized by consumers as high-quality fast food, providing a popular array of complete meals and high standards of hygiene, cleanliness and affordable pricing. Though fast food is growing in popularity in Bangladesh, some franchises reportedly offer more limited menus in Bangladesh, especially when compared with India, which could be evidence of limited business and consumer research or logistical concerns. It may also be the result of the very hierarchical business structure in Bangladesh, where managers often are not willing to include employees in decision making processes or efforts to build ideas regarding a service or product. While management in Bangladesh may make autonomous decisions regarding the launch of new retail/fast food items, India’s menu offerings are more varied and more affordable due to repetitive consumer research on food offerings. One major western fast food franchise in India may have up to 25 offerings, while in Bangladesh the same firm has only fewer offerings. Despite the rapid growth and expansion of the fast food industry in Bangladesh, there is thus far no evidence of an industry organization or a fast food owners’ association. Motivation and the work environment Motivation of employees in the fast food industry is affected by the environment in which they work. Research conducted proved that workers’ environments do affect their level of motivation, for instance, long hours of work, non recognition for work done and colleagues’ aggressive management style. In order to motivate employees to perform their best, there is a need to provide a work environment that provides achievement, recognition, meaningful work, advancement and growth. Some of these Problems that affected employees’ level of motivation in the workplace are discussed subsequently. But in one sentence to describe the problems of the employees can be “the working conditions, minimum pays and benefits, lack of flexible working hours, lack of recognition, promotion, unvalued employees performance and abuse by the management and supervision” are the main problems for the employees of the fast food industries. Fast food workers need enough resources such as time, money and equipment to be able to do their work effectively. However, resources are scarce, which means that decisions should be made to distribute them fairly. The needs and goals of the industry should be prioritized. The physical layout of the work environment such as neatness, organization, convenience, attractiveness and stimulus (noise, air, hazards and so on) should not threaten the well-being of employees. Public humiliation; unsafe working conditions and total lack of respect and dignity are amongst reasons why fast food employees are not happy. Most jobs at fast food outlets have reflected abusive working relationships, poor working conditions, reduced wages, long working hours and less participation in the decision making of the organization, especially in areas that concern workers. Almost all the aspects of fast food work are highly standardized and rigorously

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monitored. Their methods of work produce identical products and their standards and productivity are broken down into the smallest steps. Work in the fast food industry is computerized, which reduces work movements and hence speed up production. Employees’ skills are depleted and their work becomes intensive with machinery making decisions for them. Lights and buzzers tell workers when to fry or bake. Furthermore, workers learn a reutilized job in a day with no previous experience and the minimum of training, which results in monotony. Furthermore, employees in the fast food industry tend to quit after a short term. This is because they make poor earnings and work in less than satisfactory conditions. It is further stated that their hours of work are long, shifts unpredictable and promotions are as scarce as water in a desert. There are times when workers want to join a union to negotiate with the company in which they work, but are not allowed to do so because the fast food industry works under a policy of anti-union, which means that they do not allow their employees to join unions. If any employee joins the union he/she may be sacked and management will not attribute the sacking to joining of a trade union. Another factor is the workforce; which consists of 75% of youths under the age of 21 years. This encourages the industry to have no legal basis for paying minimum wages to its workers. Employees are pushed to their physical limits with long hours of work, and are not given enough breaks. In addition, their wages barely meet the minimum requirement. Fast food employees work long hours for low pay. Fast food managers receive promotions, while most assistant managers never receive promotions.

Need for the study
This research is done to enable the fast food industry management implement practices that will increase job satisfaction in order to enhance employee motivation. It is needful to help direct the fast food managers on how to achieve a high employee performance and higher levels of productivity. The study also guides the fast food managers on how to stimulate their workers and bring about change in their job performances.

Objectives of the study
The objective of this research is to find out the various strategies on how employees can be motivated in their workplace especially in the fast food industry. This study was conducted using fast food outlets within Dhaka Metropolitans. This study also investigated the causes of low employee motivation such as poor working conditions, poor managerial services and supervision, poor pay and others.

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RESEARCH METHODOLOGY: SAMPLE AND RESEARCH PROCESS
The aim of this study is to derive a motivation strategy for the fast food outlets within Dhaka City. A case study approach was used for this research because it was dealing with a specific organization which is the fast food outlets in Dhaka. The research methods used were the qualitative and quantitative methods. This was to know the opinion of the fast food employees in the area of motivation. Some oral questionnaires were asked and only few employees responded and were used for the analysis. Furthermore, other studies were conducted with few staff members and managers of the fast food industry from different outlets and corrections made before distributing it to the others. This is to allow reliability and validity. Open- ended, semistructured interview questions were administered face-to-face to the senior and store managers of the different fast food outlets to know their opinion in the area of employee motivation, while a closed-ended questionnaire was asked to the other staff members. As mentioned previously, the total population sampled was minimal. The selected sample composed of all the staff members that have at least six (6) months of work experience within the fast food industry. This is to enable the researcher obtain reliable information. A report was made on the level of motivation of the workers. A high ethical standard was maintained as far as the information is concerned.

Data analysis
Some frequently asked questions to the employees were1. The rate of an individual’s personal growth in his/her workplace is? 2. Flexible time plan at an individual’s workplace is? 3. What is the level of satisfaction regarding decision making in his/her workplace? 4. Do employees have freedom to make input with regard to objectives and standards? To ascertain the motivation level of the fast food workers, I posed some questions and statements. In analyzing the data obtained, content analysis was used. Information from other sources was also incorporated into the analysis for validity and reliability. The responses received from the orally asked questions are given as follows: The growth rate of the fast food workers and how it has affected their motivation level was assessed. Emanating from the interviews, it was evident that some fast food workers work in poor working conditions and environment. Many interviewees maintained that they were not satisfied with the layout of their workplace. It was clear that the employees’ personal growth was not a major concern to their managers; however, employees are expected to carry out their jobs effectively. Few interviewees noted that they do not have enough personal growth in their

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workplace which is discouraging them from working with the fast food outlet. As indicated in the rate of personal growth among staff members was not impressive. The questionnaires orally asked revealed that the fast food employees were not having flexible time in their workplace. Employees in the fast food industry prefer work hours that are compatible with their activities outside of work, thus a huge popularity of flexi-time and parttime work. The rationale for the question was to determine whether or not flexible time is convenient for the fast food workers, and to find out if they are satisfied with their flexible time plan. Of the respondents, few are highly satisfied with the flexible time plan at their workplace and some are satisfied. A minimal amount of employees are neutral. However, most are not very satisfied and not satisfied at all, totaling a maximum amount. The data that was analyzed confirmed that fast food employees are not satisfied with the flexi-time plan at their workplace. The rationale for this question is to ascertain whether the fast food employees are really satisfied with decision making in their organization and whether they are allowed to participate in the decision making of the organization. Findings from the data analysis disclosed that workers are not encouraged to participate in the decision making of most outlets and are also not recognized for good performances. During the interviews, several respondents indicated that they were not satisfied with decision making in their workplace. They added that they were not given freedom to provide input with regard to the organization’s objectives and standards. The interviewees maintained that they were not given freedom to provide input with regard to the organization’s objectives and standards. Again, some respondents maintained that their job execution was not made challenging by their supervisors. As previously mentioned, some interview questions were posed to the store managers, senior managers, and ex-staff to obtain information on the motivation level of the fast food workers. Content analysis was used in analyzing the interview questions. The following are some interview questions and responses obtained from the store managers and senior managers: 1. Do you think your employees are motivated enough in your workplace? Two managers noted that employees are motivated because of the type of work that they produce and of course they do not have a choice because they need the job. In addition, one interviewee noted that workers are sometimes motivated if a goal is set for them or a reward is provided to them. Other managers said that workers are not motivated because there is no training given to them, while promises of recognition are made, but not delivered, and hence not enough recognition is practiced. Furthermore, most employees have no passion for their job because they feel that there is a lot of negativity and unfairness amongst them. 2. What is your view about the performance of your staff members? The managers revealed that staff performances were poor because they did not receive any formal training. They also lack self confidence and self respect. An interviewee stated that

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sometimes staff performance is good and sometimes it is not. Another two managers (Managers from KFC) stated that staff performance is good with no reason or further explanation provided. 3. Do you think that employee motivation can improve the staff performance? All interviewees reported that employee motivation can improve staff performance because it will make them stress–free at work; the workers will feel more empowered, and have more confidence and self respect. They will also feel more proud about their job provided that they receive proper training in order to perform above expectation; employee motivation enables staff to improve their performance by yielding good results and by lifting their self esteem. Furthermore, employee motivation will help them to achieve organizational goals in a better manner. The following are some interview questions for the ex-staff and their responses. This is to find out their reasons for their leaving the fast food industry and to know if their reasons were related to their level of motivation. 4. In your opinion, do you think that being motivated at your workplace would have made you to stay longer? They all noted that if they had been motivated at their workplace they would have stayed longer for the following reasons: if their salary was increased and transportation was made available for them to and from work. They also said that a friendly attitude with less work would have made them stay longer as well. Moreover, one said that she likes the fast food industry and so being motivated would have made her to stay longer and another said that if he could see potential that would challenge him, then he would have stayed longer. Lastly, the other two said that there was no need for motivation, since the outlet had closed down.

Strategies that could improve the motivation level of the fast food employees
Emanating from the interviews conducted with the staff members, it was revealed that the employees do not have enough time for their families and other personal responsibilities. Therefore, in an effort to improve the work life of the employees, the management needs to recognize this balance in order to help improve the employees work life. The following are factors that could contribute to the improvement of the employee’s work life. Training and development It is appalling to note that the fast food employees are not given proper training. Investigations revealed that employees have not been performing well because of improper training. From the data analysis, it was revealed that majority respondents were not satisfied with their personal growth with regard to their job descriptions at the fast food outlets. Most respondents also noted that their job execution is not made challenging by their supervisors. Three interviewees

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maintained that training workers will help them to improve their general performances and also motivate them to work harder and better. Reduced workload It was deduced from the interviews with staff members that there is work stress in the fast food industry, and too much pressure and heavy workloads now a days even a country like Bangladesh. It is clear that employees’ workloads should be reduced to prevent low employee motivation and to improve the work life of employees. Results from the interviews showed that employees do not have flexible work time and working hours were too long, hence they do not have enough time to spend with their families. Moreover, the pay is little, compared to the work that they do. It is important to know that workers are eligible for flexible time and less hours of work, which would allow them to have time with their families and their personal life. Incentive Programs The study has revealed that workers were not properly remunerated. Moreover, bonuses and fringe benefits were not given to them. Employees stated that they were not recognized for good performances. Increasing workers’ pay, introducing a benefit plan and recognizing employees` performance, should be important aspects of improving employees` standard of living and work life.

Retention strategy An interviewee mentioned that some workers that were absent complained of low motivation. Another interviewee maintained that some staff members who resigned did so because they had not received what they had expected from the company. A store manager also said that some workers who left the organization complained of job dissatisfaction. It was not possible for me to obtain data from employees who had resigned. Findings from the data analysis disclosed that the quality of supervision at fast food outlets were not satisfactory. Additionally, the workers’ salary is not competitive. Moreover, they are not involved in the decision making of the outlet and are also not recognized for good performances. Most interviewees noted that their jobs are too stressful and that their workloads are too big, hence they do not have personal fulfillment in their jobs. It is necessary to note that a reduced workload and recognition of employees’ performance and contribution would keep them in the industry. More than that, promotion of staff members and flexible time of work will attract talented candidates, which will boost the profile of staff members.

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RESULTS AND DISCUSSION
It can be said that the fast food employees are not motivated to work from the analysis in the foregoing. In the first instance, the rate of their personal growth in their work-place is not satisfying. More so, it was stated from the respondents that their flexible time plan is not encouraging. In spite of this, their level of satisfaction with the decision making in their workplace is low. Respondents also claimed that they do not have freedom to make inputs with regards to the objectives and standards of the organization. The interviews with the store managers and the ex-staff also revealed that the fast food workers are not motivated at work. This has been clearly stated from the interviews. Some interviewees noted that one of the reasons why the workers are not motivated is that there is no training given to them; rather there are promises of recognition which is not always delivered. Also, few managers noted that most of the employees have no passion in the job because they feel that there is a lot of negativity and unfairness amongst them. However, the interviewees view the performance of the staff as poor because of lack of formal training. Again, they noted that some of the workers lack self confidence and self respect. Ex-staff members revealed that they were not motivated at work because the salary was too little and the shifts were long and they also felt that they were treated poorly. In addition, the work was too much and managers were rude to their workers and unfriendly. No transportation was available to and from work for late shifts, and they were being abused and so they resigned to look for a better opportunity. Moreover, the ex-staff members revealed that being motivated in the fast food industry would have made them to stay back. Lastly, they added that if there were potentials and challenges in the industry, they would have stayed back.

LIMITATIONS AND FUTURE RESEARCH
This study was conducted only with the fast food outlets in Dhaka. Although during this study I got a very short time to conduct my research and for that reason it was not possible for me to make a hard copy of the questionnaires. Furthermore it was during the Month of Ramadan and for that reason it was sometimes not possible for me to go to a food shop. Although I have tried to visit almost numerous food chains to gather my data and also enriched it with the help of the respondents who were really nice and co-operative with me all the time. The intention is to develop a motivation strategy that could improve the level of motivation of the workers. It has also highlighted the need for further research on job satisfaction of the fast food employees to measure the level of satisfaction of the workers.

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RECOMMENDATIONS AND CONCLUSION
Despite the good qualities of food provided from the fast food outlets, there are weaknesses with the way the management deal with their employees, which have adversely affected the state of motivation of the workers. Employee motivation is essential to achieve the business goals of the fast food outlets in Dhaka and Bangladesh in general. If the workers are satisfied with their working conditions, they tend to perform well and customers are also happy. I have tried to recommend strategies that could improve the level of motivation of the workers within the fast food outlets in Dhaka which are as follows: Fast food employees should be empowered and given some degree of autonomy in the execution of their job. It is evident that when employees are empowered, they tend to work harder and faster. They are found to be loyal to their employers and they also enjoy their jobs more. It is imperative to empower employees by making them feel that the company has a high regard for them, and that they are the reason for the organization’s success. Fast food workers should be empowered in different ways, namely they should be given opportunities to share their views in terms of making suggestions. Moreover, their suggestions should not be taken for granted, but should be used to solve problems in the organization. The management should be able to communicate with their workers in a clear and understandable manner. Managers should be able to know the abilities of their employees and assign them tasks that will allow them to enjoy the freedom of doing their work. Fast food employees’ skills should be developed through a coaching and feedback system. A good degree of autonomy should indeed be given to fast food workers. In other words, they should be permitted to give their opinions on how a particular job should be performed. Substantial freedom, independence, and discretion to schedule work and determine procedures that should be taken to do the job will increase levels of motivation for fast food employees. Greater autonomy will give workers a sense of accomplishment in the workplace, as they begin to take charge of directing their jobs. Contrary to popular belief, workers also enjoy taking responsibilities, especially when they are asked to stand in for their managers, in cases of absenteeism. This has an accelerator effect on motivating workers to hope that one day they may as well become managers/leaders in the organization, and hence their levels of motivation will positively be affected. Workers should be involved in the organization’s decision making It is important to involve both managers and employees in joint decision making on a regular basis. Employees should be empowered through decision making for the organization, especially in areas in which they excel. There is a need for managers to mark out how much decision making authority will be assigned to employees to prevent competition. Workers should be empowered to compile schedules for their vacation because they may have a better idea of how it will work. Managers should consult employees before any decision is reached. This will help to

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prevent overlooking solutions that may appear obvious to front-line employees but unfamiliar to higher level managers. This will also help managers to make decisions since they may not have enough information to make a quality decision without the employee’s input. Moreover, managers should involve their employees in decision making in order to make an effective decision. Despite this, employees should be allowed to participate in planning their personal career paths as this will render a sense of ownership, and thereby increase their levels of motivation at work. Workers should be recognized for their contribution towards organizational success Every employee wants to be recognized and appreciated for good performance. Fast food managers should always recognize and appreciate the efforts of their workers. Monetary reward is important, but recognition and appreciation is critical for industrial harmony. Therefore, managers may recognize their workers by announcing their good performance in staff meetings or by mentioning the good performers within the workplace. It is also best practice to send emails to all staff or publish staff members’ contributions and achievements in the company’s newsletter or notice board. This will motivate employees to do more for the organization. Employees should be recognized by giving them time off. Many workers like to spend more time with their friends and families and will appreciate if they are given time off at least for a day in recognition of their good performance. They will come back to work feeling refreshed and grateful for the recognition. Recognizing employees for good performance and contributions in the organization should enhance employee motivation. Fast food managers should also recognize their employees by providing monetary incentives. This will not only motivate the beneficiary, but will also motivate other workers to do their best. Additionally, they should recognize their employees by issuing a personal note to the worker for outstanding performance. Managers can as organize team events for their employees such as a lunch, party or outing so that the team can enjoy themselves together, which builds team spirit, which ultimately increases levels of motivation amongst workers.

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