Topic: BusinessCase Study

Last updated: January 26, 2020

Employees’ Motivation
in Public ; Private Sectors in Egypt
A case study of
“Telecom Egypt & Orange”
Prepared by
Enas Elhawy
Walaa Hermas

Submitted to
Dr. Hanan

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Motivation is a very important managerial topic that any manager should be aware of to improve his employees’ performance. This study tests the different motivators in telecommunication sector comparing those factors that motivates employees in one public sector company as compared to a private company. There are shared motivators in both companies (i.e. wages, promotions) but in different ways. On the other hand, there are motivators that can have an impact on one of them more than the other. The researchers suggest at the end how to improve the way companies deal with motivators in order to enjoy the positive impact of it on the employees’ performance.

Motivating employees helps them perform better their tasks; that is reflected in better achievement of the organizational strategic objectives.
”Employees need to perceive that their organization values them by providing suitable work conditions that allow them to progress, both personally and professionally, and also, they need to feel satisfied and have a sense of well-being with the activities performed.” (Martín , N., (2009))
The employees’ level of motivation varies from one employee to another, it depends upon what he/ she needs in this stage of career. A successful manager should know and recognize what motivates each employee in his department.
Employees’ motivation” is one of the important factors that would lead to performance effectiveness and organizational improvement. It has to do with the employees’ desire to participate in the working process and also to their attitude to work within the company’s environment.
motivation is considered to be anything done to make employees happy, satisfied, dedicated and committed in such a way that they bring out their best in their places of work so that companies and society will greatly benefit from their services.

Employees’ motivation is determined by a long list of variables, such as the existence of the enabling environment and the equipment that help them to carry out their roles. However, at a basic level, employees’ motivation is linked to how they feel they are being treated and to the way they perceive their own working and living conditions.
Problem identification
It has been noticed that the motivational level in Telecom Egypt (as compared to that of Orange) is not as expected and the factors that can motivate public sector’s employees differ from those of private sector.
Telecom Egypt management is not using efficiently its motivators: (incentive reward) and evaluation (performance appraisal) to increase its employees’ job satisfaction and productivity which are critical in achieving organizational strategic objectives.
Top management in Telecom Egypt applied recently a new method of financial benefits according to employees’ degree of productivity in order to motivate employees to do more efforts to achieve the organizational objectives. However, the middle management applied this method in an unfair way as they were supposed to measure the productivity using the KPIs of each job but they did not. Instead, they distributed it giving everyone this financial advantage, and thus, it lost its meaning as it became a right regardless of their productivity.
Thus, the researchers try to investigate how to implement it in a positive way. ?
• To determine to what extent public organizations provide their employees with extrinsic and intrinsic incentives to increase their productivity.
• To determine what type of motivation has a positive impact on organizations’ performance.
• To determine employees’ point of view concerning the motivators that top management should use in order to increase performance.
Research questions
The Egyptian public sector can be divided into two major parts: firstly, the core public sector (ministries, army, police etc.) and secondly, the extended public sector, which consist of legal entities (organizations and corporations) where the government is the major or absolute shareholder. The paper is focused on the latter sub segment and survey the relationship between the motivations offered to employees and performance in one governmental-owned organization under the current privatization era (telecom Egypt) as compared to the private sector motivators (Orange).

? The researchers approach this topic with four central questions:
• To what extent public organizations provide their employees with extrinsic and intrinsic incentives to work in their interests?
• Which type of motivation has a positive impact on organizations’ performance?
• Which is employees’ point of view concerning the motivators that top management should use in order to increase performance?
• Are the employees satisfied with the evaluation method?

Literature review
Motivation is fundamental to human behavior. It was defined as the force that energizes behavior, gives direction to behavior, and underlies the tendency to persist. Similarly, it was defined as the set of processes that arouse, direct, and maintain human behavior toward attaining some goal. There are three key parts to this definition: arousal, drive, and mobilization of effort.
Arousal is the initial feeling of interest that a person has toward attaining a particular goal. The second aspect of the definition, direction, is what people will do and actions they will take to get closer to attaining the end result. Abraham Maslow’s Need Hierarchy, Herzberg’s Two Factor Theory and Vroom’s Expectancy Theory represent three different approaches to the topic of motivation.
Maslow’s theory focuses on individual needs. Herzberg examined worker job satisfaction and developed a work-focused theory while Vroom examined motivation from the perspective of the interaction between the individual and his/her work.

? Maslow’s Need Hierarchy:

“Maslow suggests that there are five levels of human needs that must be met in order to become a healthy and well-adjusted individual. These needs must be met in order from the lowest need, which are physiological needs or basic needs like air, water, food, and shelter, to the highest need which is self actualization or the need of the individual to reach his/her fullest potential. The three other need categories that must be met in order to reach self-actualization are safety needs, social needs, and self-esteem needs. According to Maslow, workers are motivated by a whole hierarchy of human needs. Starting from the bottom of the scale, when each need is reasonably satisfied, the worker is motivated to behave in order to attain his/her next highest need. It has also been said that unless people get their needs met on the job, they will not function as effectively as possible.” (Cesare, J., Sadri, G.,2003)

? Herzberg’s Two Factory Theory:

Herzberg (1959) was interested in critical incidents when workers felt either very good or very bad about their jobs. An analysis of such incidents led to the development of two sets of factors, extrinsic and intrinsic. Herzberg found that these two sets of factors were directly linked to job satisfaction and dissatisfaction. Extrinsic factors relate to the job environment and job context such as quality of supervision, work conditions, company policies, relations with co-workers, and level of pay. If extrinsic factors are absent, job dissatisfaction is likely to occur. Herzberg called these extrinsic factors Hygiene or Maintenance Factors. On the other hand, intrinsic factors relate to the job itself, for example its complexity, level of importance within the organization as well as recognition and advancement opportunities. This second set of factors, if present, lead to feelings of satisfaction. Herzberg named these intrinsic factors Motivators or Growth Factors because they were associated with high levels of job satisfaction. Herzberg says that both of these factors are of equal importance in explaining employee motivation. According to Herzberg, a worker’s satisfaction with hygiene factors will result in average performance and serve to prevent dissatisfaction but this will not by itself create a positive attitude or motivation to work. In order to motivate employees, the company must enrich the content of the work that it asks employees to do. To explain, job enrichment is when management places greater levels of responsibility on the employees and when the opportunity to develop new skills is present.
? Vroom’s Expectancy Theory:
Vroom developed a theory in which the motivation of employees to perform at work was shown to be the result of three specific categories of beliefs that they held about their work. He labeled these three beliefs 1) expectancy, 2) instrumentality, and 3) valence. Expectancy is the belief that if one puts forth effort, it will result in performance. Instrumentality is the belief that if one performs, there will be a reward.
Research Variables
? Extrinsic motivators
Pay & Rewards for creativity.
Job security
Respect of co-workers
Praise from supervisor
Friendliness of co-workers
Respect from the administrator.
Advancement opportunities.

? Intrinsic motivators
Skill development

Organizations that recognize their employees’ efforts, abilities, and accomplishments provide intrinsic motivation for them to transfer their knowledge, thus leading to the first hypothesis:

H1. The higher the intrinsic motivation an employee has, the more the productive an employee is.

On the other hand, extrinsic motivation is considered as the set of monetary rewards – both direct (e.g. wages, incentives, bonus) and indirect (e.g. time not worked, training, contributions to employees’ benefit plans such as medical dental and life insurance, fringe benefits, expense account, and other allowances) – that individuals receive in exchange for their job. These external incentives motivate employees to perform valuable tasks for the organization. Employees are extrinsically motivated if they are able to satisfy their needs indirectly, especially through monetary compensation. It is quite possible that greater emphasis on monetary incentives will begin to attract individuals who value economic wealth more highly. Although these organizational rewards may provide temporary incentives for knowledge sharing, they are not a fundamental force in forming employees’ knowledge-sharing behaviors.
Even though extrinsic rewards may not be the primary motivation for productivity, they can be a powerful tool for generating a baseline commitment to the organization, because employees must first satisfy their financial needs to sustain a good quality of life. Therefore, if they are satisfied with the extrinsic rewards provided by their organization, they will be more productive and creative, able to take the initiative, and ultimately, ready and willing to transfer their knowledge to others within the organization. Accordingly, the second hypothesis is proposed:
2. The higher the extrinsic motivation an employee has, the more productive he will be.
Research Methodology
? Introduction
This partition covers the research design, population and the selection of the sample. It also describes the instruments of the study and illustrates the steps used in the study.
? Research Design
The study is a descriptive hypothesis testing. This study employed a mix approach (quantitative and qualitative) using a questionnaire and interview which were conducted to gather data from a random sample of 50 employees chosen from research objectives in Telecom Egypt and Orange.
• Time Horizon: cross-sectional study.

? Population and Sample of the Study
The population of this study includes all the public sector employees in Egypt as compared to private sector employees.
? A sample of 50 employees from Telecom Egypt and Orange employees randomly selected to respond to the questionnaire ; interview. Only thirty eight questions in the questionnaires were filled out and returned by the participants ; nine interviews. The questionnaire is the main instrument used by the researcher to collect the data. It aimed at knowing the degree of the Telecom Egypt and Orange employees’ motivation and to uncover the factors that could motivate them and generally telecommunication employees in Egypt. A five point Likert scale was used for the subjects’ responses on the statement. The respondents were asked to respond to the statements to show if each item was not at all important, not important, neutral, important or very important.

Demographic characteristics
? Occupation: (Middle management, Employees) in public sector as compared to private sector in Egypt .
? Age: (Between 22-59).
? Gender: Male ; female.

• Tables one, two and three show the description analysis for the demographic data.

Table (1)
Educational Background of the Sample

Background Frequency Percentage

Diploma 10 20%
Bachelor degree 25 50%
Engineer 10 20%
Master Degree 5 10%
Total 50 100%

Table (2)
Experience Background of the Sample

Working experience Frequency Percentage
Less than 5 years 7 14%
From 5 – less than 10 years 23 46%
From 10 – less than 15 years 14 28%
15 and more 6 12%
Total 50 100%

Table (3)
Age Background of the Sample

Age Frequency percentage

From (22-30) years 10 20%
From (31-40) years 23 46%
From (41-50) years 10 20%
More than 51 years 7 14%
Total 50 100%

Empirical Study:
In this part the researchers review empirical studies related to telecommunication employees’ motivation in general and Telecom Egypt and Orange employees’ motivation in particular.

The researchers have examined many factors in order to find which promotes employees’ motivation. In the study, the researchers randomly selected a sample that consisted of 50 employees of different sectors in Telecom Egypt and Orange.

The questionnaire consisted of thirty eight questions; they were distributed to employees to find out their opinions about how they are motivated and to what extended they are satisfied with the current way of motivation they have. These conventional surveys were distributed and completed during January 2015 among the different sectors employees.
Only 41 employees had completed this type of survey and we had 9 interviews with nine employees about the same topic.


? Results of the Study
This partition reports the findings of the two questions raised in the study which are:
? To what extent public organizations provide their employees with extrinsic and intrinsic incentives to work in their interests?
? Which type of motivation has a positive impact on organizations’ performance?
? Which is employees’ point of view concerning the motivators that top management should use in order to increase performance?
? Are the employees satisfied with the evaluation method?

50 copies of the questionnaire were distributed to the Telecom Egypt and Orange employees. However 41 questionnaires were filled out and returned to the researcher.
The level of Telecom Egypt and Orange employees’ motivation was determined by the following equation:
To answer this question, Respondents were asked to indicate their level of motivation to 10 motivational sources by using a Likert scale that consists of five points Table 4 bellow indicates the results of the first question. The statements are ordered in accordance with their means from the highest to the lowest.

Table (4)
The Level of Telecom Egypt Employees’ Motivation
Motivational Sources Mean Percentage Rank The level of Motivation
1-I am self motivated because I like my job
2-I am motivated because working gives security for my family
3-I am motivated because working will help me in my future
4-I am motivated because it is prestigious to be a Telecom Egypt employee
5-I am motivated by my subordinates
6-I am motivated by my work colleagues
7-I am motivated by my manager
8-I am motivated by my supervisor
In the target sample, it was noticed that:
? 40% of Telecom Egypt employees are not satisfied with their financial, promotional, and evaluation motivators as they fail to achieve the purpose of them; being not implemented correctly, but they have “job stability” and other hygiene factors that decreases their job dissatisfaction, However 80% of Orange employees are satisfied with their motivators and have a higher level of payment, but they are do not feel the job stability because they could be fired any time if they are not productive as expected. They need to work hard to be promoted and got more incentives.
? 10% of TE employees prefer the moral evaluation and prestigious facilities, while 60% of Orange prefer that.
? 30 % of TE employees not satisfied with the benefits which they get (Medical, transportation), while70% of Orange employees are not satisfied with their company’s benefits because they do not enjoy stability.
? 3% of TE employees ready to leave the work if they have opportunity in private sector. While 40% of Orange employees totally agree with the method of evaluation according to the productivity and they ready to leave their work if this policy changed.

The main point of the result of this study that the top management in the public sector are persuaded that the employees cannot leave their jobs easily as they enjoy job safety ; stability . Thus, they want them execute the tasks but without being given the right evaluation so the employees find themselves have to continue with this unfair policy acting no more effort.
On the contrary, employees’ feeling of instability in private sector let them do their best because they are sure that the productivity is the only measure but without safety for their families future.

Data obtained indicate that the managers in both companies, the supervisors, the Telecom Egypt and Orange colleagues and their subordinates do not motivate the Telecom Egypt and Orange employees as supposed to be. The study also show that the Telecom Egypt (public sector) are not motivated correctly; but they scarifies and continue in their job because they enjoy stability, working will help them in their future; as it gives them security for their families .

Based on this study the following recommendations may contribute to enhancing Telecom Egypt employees’ motivation in Egypt. These recommendations are as follows:
1.The TE company should give fair salaries for these employees depending on their years of experience, their specializations, their productivity, and their responsibilities.
2. The top management should distribution the incentive reward and all benefits according to the employees’ productivity.
3. The TE company should supply their employees with suitable facilities and suitable aids for achieving its goal .
4. The Executive CEO & Senior management should make continuous surveys to keep close and up-to-date with the employees’ problems.
5. The Executive CEO ; Senior should also conduct workshops and training programs to assist the employees to achieve the organization’s goal.

6-The managers should appreciate the good work:
Appreciation can be in the form of applauding in front of others or offering rewards for their valuable contribution.?
Any organization can realize the aim of employees’ motivation by the following methods:
• Create a motivating working environment:
Every member of an organization has a strategic role to play in one way or the other for the growth of the business. When the employees feel that they are contributing “something” which helps in meeting the objectives of the organization, they feel responsible and worthy. They will have a sense of satisfaction, which helps him contribute more.
• Set goals:
It is important for an organization to set goals to make employees understand what they have to achieve in a designated time period. Thus it streamlines their work activity, leaving no room for confusion or ambiguity. Attainment of short term goals gives them a sense of fulfillment and motivates them to achieve the next set of goals.
• Promote teamwork:
It is important for a leader to help employees to work as a team to accomplish their goals. The stronger the cohesiveness among the team players, the better will be the output.
• Maintain flexibility in the rules:
Relax the rules to some extent when required while you monitor their work activities – Are they focusing on their tasks, are they meeting the standards? Don’t over burden them with irrelevant work activities and allow them to have some flexi-time to beat the stress.
• Providing Feedback:
Providing regular feedback to employees (both in times of success and failures) help them to understand where they stand in terms of performance. Moreover, it also helps them understand what the organization really wants from them.
• Pay people what they are worth:
The compensation part is vital for all employees. If they are not recognized for their worth, it can backfire with declining performance and lack of interest to contribute to the organization. So offer what they deserve to keep their morale high.
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Please answer the following questions according to the following scale: very important (totally agree) =1, important (agree) =2, Neutral=3, not important (don’t agree) =4, totally not important (totally disagree) =5.
Years of experience:
Motivational Sources 1 2 3 4 5
1. How meaningful is your work?
2. How challenging is your job?
3. In a typical week, do you feel stressed at work?
4. How well are you paid for the work you do
5. How much do your opinions about work matter to your coworkers?
6. How realistic are the expectations of your supervisor
7. Do the tasks assigned to you by your supervisor help you grow professionally?
8. Do you easily get opportunities to get promoted where you work?
9. Are you supervised too much at work, supervised too little, or supervised about the right amount?
10. Are you satisfied with your employee benefits, neither satisfied nor dissatisfied with them, or dissatisfied with them?
11. Are you satisfied with your job, neither satisfied nor dissatisfied with it, or dissatisfied with it?
12. How proud are you of your employer’s brand?
13. Do you like your employer, neither like nor dislike them, or dislike them?
14. How likely are you to look for another job outside the company?
15-I am self motivated because I like my job
16-I am motivated because working gives security for my family
17-I am motivated because working will help me in my future
18-I am motivated because it is prestigious to be a Telecom Egypt employee
19-I am motivated by my subordinates
20-I am motivated by my work colleagues
21-I am motivated by my manager
22-I am motivated by my supervisor
23- I am motivated by the CEO.
24- I am motivated by my organization principal.
25- I am motivated by senior management supervisor.
26 -Earning a good salary monthly.
27- Fair allowances for medical, housing and transportation
28- Specialized workshops on HR management, and Administrative or technical affairs.
29- Enhancing workshops on using specific aids for all employees.
30- Suitable buildings and environments.
31- Long service awards
32- Courses and training programs in the methods of communication with the others.
33- Meetings with managers and senior management
34- You are satisfied with how you are motivated
35- You are satisfied with how often you are motivated
36- To what extent you think incentives are a result of your productivity
37- your supervisor appreciates your efforts
38- Which methods of evaluation you prefer to applied in your company
1- According to your productivity.
2- According to your relationship in the work.
3- According to your role in the team work.
4- According to your attendance .
5- Other



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