Analysis of Employee Motivation in Ilanco Inc.

Table of contents

1- Introduction ................................................................................ (1)

2- Description of manufacturing industry

- Description of Ilanco Inc..................................................................(2)

3- Description and analysis of the problems and theory application ...................(3)

4- Recommendations.......................................................................... (9)

5- Conclusion....................................................................................(13)

6- Bibliography / Works Cited ...............................................................(14)

Introduction

The purpose of this report is to analyse the problems of employee motivation at Ilanco Inc., a relatively small manufacturing company located in Montreal. For many years, this company operates in sweater production, and belongs to the section of clothing manufacturing industry. Currently, approximately 70 employees are working for the company.

As many manufacturing organizations, Ilanco has been experiencing a lot of problems with effectively motivating its employees. Such problems have been reflected both in the Motivating Potential Score Survey that we have conducted among the employees and in our interviews with some senior workers at the company.

First, this report gives a brief overall description of the manufacturing industry and the company, Ilanco. The major parts of the report outline and analyses the main motivation problems that Ilanco is experiencing. According to these specific problems, several very useful and practical recommendations have been made to help improve the employee motivation at Ilance. Also, in order to make this paper more insightful, some relevant motivation theories have been applied to both the analysis and recommendation sections to help analyse the problems more deeply

Industry Description

Manufacturing is a key activity in any economy because of its far-reaching effects. Manufacturing firms represent 20% of Canadian GDP. There are around 40 000 manufacturing firms in Canada, employing almost 2 million people. Production value comes to $135 419 millions. Manufacturing firms with less than 200 employees represent 96% of total number of manufacturing firms in Canada, employing 47% of Canadian labor force involved in processing industry.

In Quebec, the manufacturing sector generates over 20% of province's GDP. Close to 11000 firms are operating, employing some 548 400 people. In Quebec, firms employing fewer than 200 people represent also 96% of the total number of manufacturing establishments. That is, employing 49% of province's men-power. In Montreal, experienced labor force (1996 Census) represents 1 609 820 in all industries including manufacturing sector that employs 283 370 people. Despite the importance of manufacturing industry, employment has been decreasing in recent years.

Description of Company

As an example of manufacturing firm we'll take a look at "Ilanco Inc.", relatively small company that falls under clothing industry sector. Company is located in Montreal's Chabannel area and can be seen as a classical example of clothing manufactory. The firm was established in 19XX and is equally owned by two partners with considerable experience in clothing industry. Both partners do administrative work in the firm that produces ladies' and men's sweaters. Because company does not have large variety of products, their workers are well trained, skillful and fully functional. Skilled labor is required for almost every part of production line. Products are tightly controlled and work is examined at every step of production process. For example, in the case of defective garments, they are being returned for reparation and later for final inspection. The average number of sweaters being produced in one working day is 1000 to 1200 sweaters.

Ilanco Inc. employs 50-80 production workers depending on a season. There is approximately 40% of male and 60 % of female workers. Preparation of fabrics and other materials that include work on steaming press and cutting, are positions held by male workers, while pattern making and sawing positions are positions held by female workers. Other positions such as thread cutting and packaging are positions equally held by male and female workers.

All age groups can be seen in this company varying from workers that are in their 20's up to the oldest worker that is 62. Concerning race, we found that production workers belong to all races. But what is very interesting is their ethnic background. Big majority of workers are recent immigrants. There are only few of native English or French Canadians. Majority of production workers poses high school education with exception of some that have higher education.

Work starts at 8am and finishes at 4pm. There is possibility to start at 7:30am and to finish at 5pm. That is workers' choice. Working on Saturdays is required only during high season.

Production workers are poorly paid. The average salary is $7/hour. There are examples of workers that work for company for 7 years and get paid $7.75 per hour. There is no regular salary increase. Workers have to ask for one, and the chance they will not get it. Everyone is paid by an hourly rate. No one in the company is paid by piece rate because of the type of work that is done here. There are no promotions, bonuses or similar benefits at Ilanco Inc.

Description and Analysis of the problems

Survey conducted with the employees of Ilanco Inc. resulted in reported lack of job satisfaction. To reach as more employees as possible, we conducted the survey in both French and English. Results of questionnaires on calculating motivational potential score varied form 70 to 110. For the question on how much variety is there on their job, most employees answered - 'very little'. Other results gave a clear picture that employees have very little freedom decision wise, there is a lot of uncertainty, little control in setting their work pace and most of them find their jobs not challenging at all. This is a clear indicator that there is an existing motivational problem and that management ought to do something in order to motivate their employees because