IDLC Finance Ltd commenced its journey, in 1985, as the first leasing company of the country with multinational collaboration and the lead sponsorship of the International Finance Corporation (IFC) of The World Bank Group. In its arduous journey since, IDLC Finance has succeeded in realizing the dreams of those who established it. Today it is one of the country’s leading NBFI, contributing significantly to the Country’s economy. In most of our life, we will be earning and spending money. Core financial services provided by financial intermediaries include payments and liquidity, maturity transformation, store of value, information processing and pooling of risks. Banks have traditionally provided most of these services and are increasingly diversifying into other areas. However, banks
typically have an edge in providing payment and liquidity related services and they usually select a portfolio mix with an overriding objective of providing a certain return.

Non-banking financial institutions (NBFI’s), on the other hand, tend to offer enhanced equity and risk based products. NBFI’s play a crucial role in broadening access to financial services, enhancing competition and diversification of the financial sector. They are increasingly being recognized as complementary to the banking system capable of absorbing shocks and spreading risks at times of financial distress. Traditionally our banking or financial institutions are involved in term lending activities. In this case human resources are very much important to run the operation as well as their motivation too.

The purpose of this paper is to conduct a research on motivational factors influencing Hygiene Theory. First of all, to conduct the survey, I had to make a questionnaire which includes motivational factors that influences enthusiasm and eagerness of employees. Secondly, I had to go through data analysis and data interpretation by using SPSS software. For this research, I went through secondary and primary data. For instance, thedata itself is the confirmation of the motivation level among my respondents. The respondents are highly motivated towards their job assignments also for their personal recognition. The factors are influencing here are, good supervisor, training level, working environment, promotional activities etc. These will be explain and enclosed later on this report.

Organizational Review

IDLC Finance Ltd commenced its journey, in 1985, as the first leasing company of the country with multinational collaboration and the lead sponsorship of the International Finance Corporation (IFC) of The World Bank Group. Technical assistance was provided by Korea Development Leasing Corporation (KDLC), the largest leasing company of the Republic of South Korea.

IDLC, as a multi-product financial institution, offers a diverse array of financial services and solutions to institutional and individual clients to meet their diverse and unique requirements. The product offerings include Lease Finance, Term Finance, Real Estate Finance, Short Term Finance, Corporate Finance, Merchant Banking, Term Deposit Schemes, Debentures and Corporate Advisory Services.

IDLC’s vision is to be Bangladesh’s best multi-product financial institution. In achieving this vision and goal, the management realizes the importance of taking due care of all of  our constituents, particularly the share-holders, customers and workforce. IDLC’s unique institutional shareholding structure, compromising mostly of financial
institutions, helps the company to constantly develop through sharing of experience and professional approach at the highest policy making level. The company has authorized capital of Taka 1,000,000,000 (10,000,000 shares of Taka 100 each) and paid up capital of Taka 300,000,000 (3,000,000 ordinary shares of Taka 100 each). IDLC has also established two wholly owned subsidiaries, IDLC Securities Limited and I, Cons Limited to provide
customers with security brokerage solutions and IT solutions, respectively.

IDLC Securities Limited, a fully owned subsidiary of IDLC, offers full-fledged international standard brokerage service for retail and institutional clients. It has seats on both the Dhaka and Chittagong Stock Exchanges. It is also a Depository Participant (DP) of Central Depository Bangladesh Limited (CDBL).

Subsidiaries

Icons Limited, a fully owned subsidiary of IDLC provides world class IT solutions starting from financial applications to IT infrastructure development and consultancy services.

Products and Services Offering

Project Part

Summary

As a mandatory requirement of the Bachelors in Business Administration (BBA) program under BRAC University, this report entitled – “A Research on Motivational Tools influencing the Hygiene Factors in IDLC Finance Ltd ” – is a connived depiction of the three months long internship program) in IDLC Finance Ltd.

The organization attachment started on May 27, 2012 and finished on August 27, 2012. My on-site supervisor Khwaja Md. Mohaymenn Billah, Manager of SME Division, assisted me on the internship and the topic of the term paper & my academic supervisor at BRAC University Syeda Shaharbanu Shahbazi, Senior Lecturer of BRAC Business School approved it.

Description of the Project

The research that I have conducted over here will be a descriptive research. The reason for choosing descriptive research is the nature of the study. The main purpose of the research is to understanding the impact, to be more specific the outcome of motivational factors. In this research I used cross-sectional time. As this research is takes place only one single point in time, so it is cross-sectional.

Objective of the study

1. Broad objective:

The broad objective of this research is to find out the HR Motivational Factors directly or indirectly influencing the Hygiene Factors.

2. Specific objective

• To find out and learn how the HR Division works to motivate the human resources.
• To find out level of motivations.
• To find out what motivates employees to perform at their level best.
• To find out what sort of expected outcomes are there from the employees’ point of view.

Research Methodology

The subject matter of this report is based on primary and secondary sources of data and information. Here the regression and frequency distribution is done to find out the outcome of the research. I have prepared the set of questionnaire to collect the information from the employee to employee. The questionnaire is combination of fixed alternative questions with few open ended questions.

A. Primary Sources:

• Face-to-face conversation with the respective officers and staffs of IDLC.
• Practical work exposure from the different desks of the three departments of the branch.
• Study of the relevant files as instructed by the officers concerned.
• Some opinions and ideas have been incorporated in the paper through interactive sessions and interviews with the top management and mid level executives of the organization

B. Secondary Sources:

• Annual reports of IDLC Finance Ltd.
• Website of IDLC Finance Ltd.
• Various books, daily news papers Training articles, compilations etc. regarding NBFI’s
• Prospectus

Main Body

The Research Project

Two Research Hypotheses

Null hypothesis: All the employees are not at all motivated.
Alternative hypothesis: All the employees are highly motivated.

Theoretical and Accessible Population

Theoretical population: All the employees of Corporate Head office of IDLC are the theoretical population. The number of population is around 60. All the departments are included in this population.

Accessible population: Accessible population would be theoretical minus non accessible population. Non accessible population would be the employees who were in leave or training and others were not much interested in conducting survey due to huge loads of works.

Sampling Element

As I have selected all the employees as my sample. Now each and every individual employee will be considered as sample element.

Sample

Now when we will chose the sample there we have to be more specific. Though IDLC is comprises of a lot of departments, I considered all particular employees of different department’s as my research sample. Considering this situation, I selected 30 people in my research as the sample size.

Sampling Method

In general there are two types of sampling method namely probability and non-probability sampling. In probability sampling the choice of sample group is made using unbiased process so that each sample unit in a group has an equal chance of being selected. On the other hand in non probability sampling the choice of sample group is left to the researcher and thus element of bias always shows up in each studies. My research is probability in nature. So, due to limitation of the time, scope and resources I followed the probability sampling.

I used simple random Sampling for this research. In simple random sampling technique the selection of each sample is done by selecting randomly. The purpose of choosing simple random sampling because only it goes well with the research for my report.

Survey research is one of the most important areas of measurement in applied social research. The survey research basically divided into two broad areas namely Questionnaire and Interview. For the survey on motivational factors, questionnaire and face to face interview would be most appropriate.

Questionnaire are of different types such as- mail survey, group administered questionnaire and face-to-face interview. For my survey I selected group administered questionnaire. At first we went to employees to employees for surveying. I provided the questionnaire to them. They solved the questionnaire and if in case the respondents were unclear about the meaning of a question they ask us for clarification.

Type of Research

For this research inductive research will be conducted. Induction means observation to theory. Inductive reasoning works the way by moving from specific observations to broader generalization and theories. It is called ‘bottom up’ approach informally. In inductive type of research the research begins with specific observations and measures begin to detect patterns and regularities, formulate some tentative hypothesis that can be explored. And finally end up
developing some general conclusions or theories.

In my research it is required observation of the matters related with the topic by survey. Here questionnaire survey and face to face interview are conducted. Then using measurement the patterns are detected. Using SPSS (Statistical Package for the Social Sciences) software all the data get from survey is measured. After that the results of the measurements are interpreted that means formulation of some tentative hypothesis was done. And finally based on the interpretation conclusion of this research is drawn. This procedure goes under inductive research.

Analysis:

From the table of department it can be seen that out of 30 sample size, 5 respondents are from SME division, most of them are from the other divisions which covers 30% of my respondents.

From the table of gender it can be seen that out of 30 sample size, 8 respondents are female and 22 respondents are male. This means 73.3% of the respondents are male and only 26.7% are female.

From the table we can see only 3.3% of my respondents disagreed to others and don’t like to come to work and enjoy working. Others are 96.7% of the respondents who are highly motivated to their own task and job duties.

From the table we can see most of the respondents are motivated towards their job and few 23.3% are somewhat motivated and 3.3% are not at all motivated towards their tasks.

5. What are the reasons that you stay at your present job? (Check all if, those apply)

• Challenging job assignments
• Interesting working hours
• Good boss
• Vacation/leave
• Location is convenient
• Statistics
• Valid
• Not motivated
• Somewhat motivated
• Frequency Percent Valid Percent
• Cumulative
• Percent
• Retirement Benefit
• Work assignments vary
• Training Opportunities
• Promotional opportunities
  Other______________________

This data implies 26.7% are motivated for the challenging job assignments. But interested working hours, good boss, work assignment variation also influence at 16.7% to the employees for the reasons of staying in current job.

This data implies 11 respondents that means only 36.7% refers their supervisor as good, 20% checked excellent and 30% replies very good.

From this table we can see, 60% of respondents find the nature of promotional activities good, 13.3% replied excellent and 20% replied as very good.

Results and Discussion

In generally, it is obvious that hypothesizes are very relevant. After all the frequency analysis we can reject the null hypothesis and accept the alternative hypothesis. Our accepted hypothesis is, employees of IDLC Finance Ltd. are very much high motivated towards their job responsibilities which also keep them up for further career advancement. After finishing the survey and analysis I can easily relate those with the Fredrick Herzbergs’ Hygiene Factors – Motivational Theory.

In narrow sense, motivation is a process of satisfying the wants and needs of the employees and inducing, encouraging and helping the employees to perform their assigned jobs more enthusiastically for the effective achievement of the organizational goals. In broad sense, motivation is a process of directing or channeling the behaviors of the employees toward task performance. Let us simplify the tools and techniques to understand the
motivational factor. Let us name them as Positive and Negative Tools and techniques. Motivation is essential because:

• Motivated employees are always looking for better ways to do a job.
• A motivated employee generally is more quality oriented
• Highly motivated workers are more productive than apathetic employees

Let’s simplify the tools and techniques to understand the motivational factor. Let’s name them as Positive and Negative Tools and techniques.

Positive tools

Praise: one of the oldest methods used even today to motivate individuals. IDLC effectively use praising employees in training and helping individual in learning new concepts. Salary / wages/ increments: all these are fringe benefits used to motivate the employees, but this being only a temporary phase.

Recognition: this is a very positive tool, wherein the higher ups motivate the employees by recognizing their work potential, the employee feels highly motivated when his work gets recognized, rather than just giving him a big pay packet.

New roles: when an employee is given higher roles, they themselves act as motivators rather than working for years on the same routine job.

Social atmosphere and working conditions: also play a crucial role in motivating the employee in his work. When the employee is surrounded by equally motivated lot, he/she is bounded to be motivated and vice versa.

Needs: All of us have needs which are varied and ranked by us differently; hence it is important for the boss to have a clear cut measuring method to know the varied interests of their workforce.

Negative Tools

Punishment: When an employee is punished for doing the wrong style of working, the retribution itself can make wonders in motivating the employee to do a good job.

Reinforcement: Whatever the work style, or project the employee undertakes, it is important that the employee knows whether it is wrong or right or what the amendments he/she has to do, the knowledge of result is a must, otherwise, the concept of motivation doesn’t arise.

Critical evaluation: this helps the employee to improve his/her quality of work, helps in betterment. Considering above criteria’s and factors, I can relate the motivational factors with Herzberg’s

Two: Factor theory. Those are:
Hygiene Factor: Work condition related to dissatisfaction caused by discomfort or pain.

• Maintenance factor
• Contributes to employee’s feeling not dissatisfied
• Contributes to absence of complaints

Motivation Factor: Work condition related to the satisfaction of the need for psychological growth.

• Job enrichment
• Leads to superior performance & effort

Hygiene Theory of Motivation
Hygiene factors avoid job dissatisfaction:

• Company policy and administration: HR policy of IDLC is such, that employees would feel self-motivated and always keep in pace of own duties and responsibilities.
• Supervision: All the employees are constantly under supervision of their own reporting employees, which is why, they remain clear-headed of their goal, tasks etc.
• Interpersonal relations: However, every division In IDLC think as a team, that is why their interaction with each other is also excellent which helps to keep a nice environment in the work place.
• Working conditions: Working condition matters a lot, it terms of performance of each individual to each division. Since the interpersonal relation of team members in each division are very warm, this keeps the working environment also very warm and sophisticated.
• Salary: In spite of other factors, salary increment keeps the employees really moving forward and improving their performance along with IDLCs’ own performance in banking sector.
• Status: Good job position refers good rank or position in the workplace. That is additionally worth willing to accomplish success in personal and professional life both.
• Security: In IDLC, there’s assurance of job security that holds a safe and sound growth for employee as well as the employer. These are the motivational factors increasing job satisfaction among the employees of IDLC:

• Achievement
• Achievement recognition
• Work itself
• Responsibility
• Advancement
• Growth
• Fringe Benefit

Recommendation

From the analysis it can be said that the R square is adjusted 95% of the variation gender with those who like to go to work and enjoy performing at their level best. From the ANOVA we can see that the F test is 2.933 and the p value for f test is 0.098 which is greater than the significance level at 0.05 therefore we can reject the null hypothesis.

On the basis of above data and analysis, I came to the point that most of the employees of IDLC are highly influenced and motivated. Motivated employees help organizations survive. Motivated employees are more productive. But, yet some other factors are in the IDLC which need to be improved in terms of long lasting loyalty of the employees to their own organization. Those are:

• Most of the employees agree that the performance appraisal activities are not helpful to get motivated, so the company should try to improve performance appraisal system, so that they can improve their performance.
• Non financial plans should also be implemented; it can improve the productivity level of the employees.
• Organization should give importance to communication between employees and gain co-ordination through it.
• Develop job rotation system and review salary and motivational incentives.
• Better career development opportunities should be given to the employees for their improvement
• If the centralized system of management is changed to a decentralized one, then there would be active and committed participation of staff for the success of the organization.

Conclusion

It is clear from the study that the employee’s motivation has direct impact on productivity and growth. A highly motivated employee invests his / her best efforts in carrying out each and every element of his / her duties and responsibilities. Enhanced job performances of the employee will add value to the organization itself and to the employee’s productivity. The empirical results of this study show that the motivation of the employee has advantages to the employee and the organization and the organization will keep the loyalty of the employee at the high peak. Also, the employee will trust his / her organization, supervisor and top management. Form these observations of facts it is very clear that business organizations can survive and grow by taking care of their employees. In the free market economy under today’s globalization only organizations which pursue high-performance focused on their
employees can survive and growth rapidly and safely.