Employee Motivation Strengths and Weaknesses

Executive summery Many organizations strive very hard towards ensuring that their employees are adequately motivated. Humana Insurance is a well performing company that needs to emulate the behaviors of such organizations. Despite its effort in ensuring that its employees’ welfare is well catered for, the company still needs to make some adjustments concerning employees’ motivating factors to emerge the leading organization in addressing the needs of employees.Advertising We will write a custom term paper sample on Employee Motivation: Strengths and Weaknesses specifically for you for only $16.05 $11/page Learn More The company has numerous opportunities at hand that can enable it achieve this fundamental goal. The following brief report examines these available opportunities, the past research that has been carried out concerning employee motivation as well as the strengths and weaknesses of such researches. In addition, the report provide s an analysis of how Humana Insurance Company can adopt more strategies to improve its business performance and incorporate them in its decision making program to achieve more employee satisfaction than before. Introduction There are several ways of enhancing service quality in an organization. One such way is through having efficiency in employee performance. The effectiveness of the employees can be facilitated through having skilled, experienced and knowledgeable workforce (Bedeian, 1993). Employees gain experience through repeated series of works. Employers prefer retaining personnel because of associated costs of recruiting new staff, for instance the cost of training. The existing employees of an organization too possess the prequisite experience that is needed to enhance the organization’s performance. Therefore, employee retention becomes a priority in an organization. However, employees cannot be retained without first motivating them through meeting their expectatio ns (Lindner, 1998). Subsequently, all organizations are using any method at their disposal to motivate employees and the strategies adopted differ from organization to organization. Humana Insurance needs to initiate such excellent plans that are aimed at motivating its labor force. This can be achieved through provision of several employee benefits, as it will be observed from the following report. Problem Statement There has always been a controversy on whether employee retention can be enhanced by high monthly remunerations without any associated benefits or through offering minimum remunerations and additional basic benefits. There have been rising complaints by many employees with regard to their employers not providing them with adequate benefits that can motivate them in their places of work.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More The principal cause for many employees to abandon their jobs is due to lack of motivational incentives and other benefits from their employers. That is why poor performing institutions lack adequate measures to motivate their employees and absorb new ones from outside. The opportunities available for Humana Insurance to motivate the Employees Humana Insurance is one of the most successful and good performing insurance companies in the United States. There is need to motivate its employees who have contributed largely on this achievement. This will be a move aimed at retaining them to ensure that the status quo of the insurance company remains as well as its competitive position in the insurance industry. Humana insurance can use several approaches to motivate its employees including but not limited to competitive remunerations, health benefits, appropriate pension schemes, medical covers among others. The company’s performance gives it enough reason to give adequate incentives to its employees in order to continue increasing its productivity and performance. It has the ability to retain all the existing employees due to huge resource and capital base. Many companies fail to guarantee benefits to their working staff due to poor performance and the extra employee benefits may lead to huge spending on the part of the company (Harpaz, 1990). However, this might be a disadvantage to them since employee motivation leads to improved performance and high profitability for the company. There are mutual benefits between the employer and the employees when the employees are motivated. Despite the fact that Humana Insurance has been having excellent employee policies and programs, it should take advantage of its massive opportunities that are not available to many companies to satisfy employees more. The company needs to have additional motivational benefits to its labor force. The worst thing that can happen to a company is when it loses the most important and well performing employees (Maslow, 1943). Humana Insurance has experienced labor force that the organization cannot afford to lose otherwise the company’s delivery of services to customers will be affected to a great extend. This is an excellent opportunity for the insurance company and the organization need to continue with its existing employee motivational programs. Literature Review Several studies have been carried out with regard to employee motivation and the possible motivating factors. There has always been desire by human resource experts to determine the structures that should be put in place to ensure there is maximum employee retention on their places of work. Lindner (1998) points out that favorable work environment and attractive pay are principal motivating factors that can keep or retain the employees in their places of work.Advertising We will write a custom term paper sample on Employee Motivation: Strengths and Weaknesses specifically for you for only $16.05 $11/page Le arn More However, he holds that these are not enough since employees are interested in well-designed reward systems for instance job enlargement, job satisfaction, promotions as well as non-monetary compensation that too need to be given a priority. When it comes to implementing appropriate remuneration packages for employees, the prevailing economic circumstances have to be taken into consideration in order to make the necessary adjustments (Vroom, 1964). This is because cost of living may be affected by economic phenomena and therefore the living costs need to be matched with people’s incomes. Working people are concerned about their future after retirement. Guaranteeing them future income that will be able to sustain them and enable them earn their living during this particular period will serve as big motivation to them and organizations that have succeeded in implementation of such pension programs attract employees more than others. Employees are not motivated primari ly by money. There is a direct link between the behavior and attitudes of employees (Maslow, 1943). This implies that the employee’s perception of the work he is doing will reflect the behavior of that particular employee and thus the dedication and commitment. Non- monetary aspects are equally important in motivating an employee. Employees feel honored when their work is being appreciated even with absence of rewards. They can also be rewarded through promotions whenever hard work and their contribution towards the organization’s success have been recognized (Bedeian, 1993). The other fundamental motivating factors to employees are employment compensation that includes provision of medical cover and insurance schemes for the employees. These assist employees and their family members or relatives in times of emergencies though covering the financial costs incurred. Job satisfactions that are linked to the circumstances under which the employees are doing their work hav e an influence on motivation of employees (Lindner, 1998). Therefore, personnel management of an organization must put structures in place that will ensure that employees derive maximum satisfaction from their work environments. Strengths and limitations of the past research The literature review discussed above relate to past researches that have been carried out about employee motivation. The strengths of the research can be viewed from beneficial perspective of the organizations.Advertising Looking for term paper on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Better understanding of what motivates employees and incorporating the knowledge in the reward system can really help an organization in achieving its goals through hiring, training and retention of productive workforce (Lindner, 1998). It is quite evident that having strong and excellent motivating factors in an organization has helped several organizations in maintaining consistent and effective labor force. The weakness of the past research is that not all the organizations have the resources to enhance the employee motivation. An organization may not be financially strong enough to implement various employment benefits for example medical cover and insurance schemes to motivate the employees (Vroom, 1964). The research failed to provide solutions to such organizations to increase the employee retention and motivation like other huge organizations. Appropriate strategies to guarantee Humana’s business success and employee motivation Humana Insurance Company is in a positio n to implement strategies that can increase the employee motivation levels. To improve the business success, the company will need to be dedicated to ensure that every business decision it makes is a true reflection of the company’s commitment towards the welfare of the employees. People and especially workers have desire to learn new things and improve their work performance. Every employee feels happy whenever he/she attains some tangible achievements. Humana Insurance can introduce intensive training and development programs in its company to increase the effectiveness of the employees. This will save employees from incurring extra costs while undergoing training to improve their skills. Humana’s management should create a good working environment that is free from discrimination, injustices, harassment or any other form of abuse. No organization can satisfy its employees when there are malpractices in its management like corruption scandals or unfair judgment on th e part of employees (Harpaz, 1990). Fair treatment will ensure that the employees work hard because they are very sure they will get what they deserve out of their hard work. The work force needs to receive fair and equal treatment with regard to salaries, compensation benefits and working hours. This strategy can work well in motivating the employees since they are guaranteed of getting precise reward for their hard work. Humana Insurance can also allow the employees form a trade union that will fight for their rights and provide a channel through which they can communicate their grieverances. It is like guaranteeing the employees some form of freedom since they can express their opinions and views without any fear (Lindner, 1998). This motivating factor can have an impact on the employees since it provides them with comfort and hence the better performance in their duties. Humana ought to provide the employees with humane working environment by instilling the appropriate safety me asures in all the company’s places of work. No employee can be willing to stay in a work environment that is too risky or hazardous and the Humane has to put this into consideration. Finally, Humana should consider reviewing the compensation packages for its employees and other benefits to make them a little bit competitive to increase the employees’ motivation. Possible solution to instances of employee dissatisfaction All organizations need to come with appropriate policies to address the employee motivation issues. In every country, there are laws governing the relationship between the employers and their employees. These laws stipulate the rights and freedoms of the employees with regard to their work environments and once strictly followed can improve the employee motivation. In addition the organizations need to have in place policies that will have comprehensive coverage of all the benefits that employees deserve that will adequately address all the motivational factors as well as full implementation of the same (Harpaz, 1990). Conclusion Employee motivation is an important ingredient that needs to be given a priority to prevent the employees from shifting from one job place to the other. The productivity of an organization is determined by how motivated employees are. This is because as it has been observed in several cases, motivated employees tend to work hard and more effectively. The employees are not only motivated by monetary rewarding or wages but also through other employment benefits in addition to basic wages and non-monetary factors like showing appreciation for work done through rewards and promotions. Managers should give employee motivation a priority and realize that there is direct relationship between the employee motivation and the organization’s performance (Maslow, 1943). References Bedeian, A.G. (1993). Management. 3 Ed. New York: Dryden Press. Harpaz, I. (1990). The importance of work goals: An international p erspective. Journal of International Business Studies, 21, 75-93. Lindner, J.R. (1998). Understanding employee motivation. A Journal of Extension, 36(3), 1-16. Maslow, A.H. (1943). A theory of human motivation. Psychological Review, 2(7), 370-396. Vroom, V.H. (1964). Work and motivation. New York: Wiley. 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Who Influenced Michael Jordan To Become The Player Essays

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Effect of Work Motivation on Job Satisfaction

Effect of Work Motivation on Job Satisfaction This study attempts to develop the effect of work motivation on job satisfaction on two big mobile telecom organizations zong and ufone. The questionnaire was developed to measure the correlation of work motivation and job satisfaction. Total number of observations was sixty and the mean for JS and WK was 3.53 and 3.99 respectively. ANOVA result was 0.042 that was not a significant level for the model that was selected. It can be concluded that, there must be some other variables that are intervening in our model and making contribution at a significant level. Thus the model has not attained the favorable level of significant and could not be used for further research. As p-value was less then .05 so it can be said that the variables chosen for the study was not highly significant. Researcher also found that overall the employees were quiet satisfied with their jobs and have their interest in their job. More than average employees were motivated to work for the organization. Some of employees think that they are not on their actual path and often feel over worked. There are many studies on job satisfaction, and work motivation around the globe but there is scarcity of this work in the local environment. Many researchers are agreed on the influences that job satisfaction is dependent on the work motivation. In past papers, researchers defined each variable and to some extent about the relationship between, work motivation, and job satisfaction. While putting a glance on the organizations around us, we can find that the main challenge for the companies is to enhance the employee performance by implementing different strategies. These strategies include compensation to employees, motivation, rewards and bonuses or team empowerment. Job satisfaction makes the employees more attentive and concerned for the organization. The private organizations also take necessary actions to improve the employees performance with the passage of time therefore the human resource management departments in organizations play a vital role to drive the organization in a certain way. If an organization have a good HRM system, therefore its possible to produce more loyalty, commitment, and motivation to spend additional effort for the organizations objectives (Pfeffer, J, 1994). Considering all the points, job satisfaction will be achieved, when the employee will be motivated to do work, and there are certain factors which influence on work motivation such as efficiency, productivity, absenteeism, turnover rates, and intention to quit (Baron, 1986; Maghradi, 1999). Motivation could be described as a driving force that makes people willingly want to put in their best in what they do. The concept of motivation is that there is no need to force or threaten people to work harder, as any such force or threat is likely to be ineffective in the long run. Rather, it is better that people should be motivated as it is believed that the driving force which results from motivation will compel people to put in their best out of willingness and not out of force or threat. Motivation is believed to lead to an increase in employees work performance. That in turn leads to an increase in overall organizational productivity levels. Furthermore, motivation is said to improve employee job satisfaction. Rationale for the study The rationale for this study was the basic psychology of the human mind about job satisfaction that a person motivated to do a task or a job will be having more satisfaction from that task or work. Secondly, the query to solve that what makes an employee a satisfied employee in an organization. The more the satisfied employees, the higher would be the organizational performance. Problem statement Researchers have analyzed that there are many factors that can effect the job satisfaction of the employees; work motivation is one of the factors. Our study will cover the impact of motivation on the job satisfaction. Objectives of research study The main purpose of this study is to identify the relationship among the work motivation and job satisfaction. The classification of objectives will be as under: Determine the level of motivation of employees. Determine the level of job satisfaction of employees. Analyze the effect of work motivation on job satisfaction. Significance of Study The research is based on the human resource management practice that is motivation. It is a deliberated fact that in our country, very few researchers are working in this area, so we have chooses this area for our research that would be helpful for further research and exploration of new ideas in this field. It will also provide an insight into the fact that how job satisfaction can be enhances within the organizations. In developing countries like Pakistan, it is required to work on such areas that can be developed to increase the productivity of employees and thus of the organizations as well. Delimitations The study will be delimited to telecommunication service organizations in Islamabad. Review of Literature Job Satisfaction Job satisfaction has remained a remarkable area of discussion in the field of management, psychology and especially in organizational behavior and human resource management, for a long period. Many economists have paid attention and inclination towards this subject in recent years (Kosteas, 2009). According to Ramayah, Jantan, and Tadisina (2001), Job satisfaction explains how employees are buoyant to come to work and how they get enforced to perform their jobs. What are the things who make happy an employee on doing work and not to leave the job? Other researchers narrate job satisfaction as being the outcome of the workers appraisal of extent to which the work environment fulfillment the individuals needs (Dawis Lofquist 1984). According to Locke (1969), job satisfaction is a state of emotional gladness, results from the achievement of the goals that one get through performing his part of contribution inside an organization. Rao (2005) in his study discussed that satisfaction at the job for a person acts as a motivation to work. It is not the self satisfaction, happiness or self-contentment but the satisfaction of the job. It is the combination of psychological environmental circumstances that affect the person for his satisfaction with the job (Khan 2006). Thus Aswathappa (2003) discussed about the determinants of job satisfaction as it said that the wage payment and monetary rewards are the two determinants. Different organizations employ different wage system and other rewards. The organizations pay wages and salaries along with incentives, perquisites, and non-monetary benefits. Velnampy (2008), in his study on job attitude and employees performance concluded that job satisfaction contains positive influence on the performance of the employees as it enhances job involvement and the higher performance also makes people feel more satisfied and committed to the organization. The satisfaction and performance of the employee works in a cycle and are interdependent. Job satisfaction and involvement of the employee leads him to have high levels of performance. Shahu Gole (2008), in his empirical study of effect of Job satisfaction on Performance, they concluded that the job satisfaction factor is not been taken under consideration by the companies and companies need to develop plans so that their employees can show superior performance. Performance level lowers with lower level satisfaction scores. There should be some awareness programs, pertaining to the stress satisfaction level in the industries. It will help organizations to understand the benefits of stress knowledge in relation to satisfaction and goal achievement in the industry. Shah Shah (2008), in his study of job satisfaction and fatigue variables found the negative relationship between the fatigue and satisfaction from the job. The fatigue has found as negative predictor of Job Satisfaction. The study clearly indicates the different issues for Call Centre employees in the context of Indian economy in which the researcher said that there are various factors leading to dissatisfaction that are on the job and off the job. Its also been discussed in the study that if fatigue get minimized, job satisfaction can be improved by various innovative and encouraging strategies. Work Motivation Luthans (1998) asserts that motivation is the process that arouses, energizes, directs, and sustains behavior and performance. That is, it is the process of stimulating people to action and to achieve a desired task. One way of stimulating people is to employ effective motivation, which makes workers more satisfied with and committed to their jobs. Intrinsic motivation, however, can be defined as the motivation to perform an activity for it, in order to experience the pleasure and satisfaction inherent in the activity (Deci, Connell, Ryan, 1989). According to cognitive evaluation theory and self-determination theory (Gagne Deci, 2005), rewards that are interpreted as information about ones competence and satisfy individuals need for autonomy, will enhance intrinsic motivation. Simon (1997, p.276) argued in his research work, why does the motivation required? The fundamental challenge of all companies is to encourage their employees to work for the organizational goals, whereas Pfeffer (1998) has argued in his research that in the long run, the success can be achieved by those companies that use to manage their employees; creating significant work and having satisfied employees, taking both side by side is the way to organizational effectiveness. Frey (1997) showed that extrinsic rewards, like monetary benefits may interact negatively with the intrinsic work motivation. It has just seen that there is crucially dependence of intrinsic motivation on the extrinsic incentives. Wright and Pandey (2005) described in their work that emotional attachment and loyalty is one of the most important factors of employee motivation that binds the employee to stick to the organization, many other benefits associated with the organization are also part of motivation. Allen Meyer (1990) have tried to answer the question that is; how an organization can analyze that whether it is keeping its employees happy, motivated and loyal to the organization? There is no pet answer as the work motivation is a counter effect of many factors linked to employees; how they interact with organization and what views they have about the organization. Work motivation can be evaluated by the degree of feeling attachment, obligations, and rewards in working in organization. Horwitz et al (2003) predicted that employees get high motivation through challenging work environment and support of the top management. If the employees are competitive and want to do work with full efficiency as it will utilize all their capabilities, then challenging work is the best motivator. Many of the employees like to make relationships and thus need to contact more and more to the higher authorities, so making more regular contacts make them feel that they are been observed and work with more motivation. Locke and Latham (2004, p.388) defined the work motivation as outcome of both internal and external factors that force the employee to work more excitedly. Bacon et al (1996), Deshpande and Golhar (1994), and Julien (1998) have stressed upon the fact that employees have the key position in maintaining a competitive edge over the competitive market by a business. Relation between Work Motivation and Job Satisfaction Gupta Joshi (2008) discussed about the relationship between the Job satisfaction and motivation for the employees. Productivity in the work of an employee is outcome of satisfaction and productivity can be taken as indicator of satisfaction. Employees have to spend most of their time at workplace and need satisfaction at that place. Herzberg et al.s (1959) has described a relationship between two variables as Job Satisfaction is the result of two kinds of factors, intrinsic and extrinsic factor; intrinsic factors appraised the job satisfaction and extrinsic factors cause dissatisfaction and reduce the level of job satisfaction. The extrinsic factors were also called as hygiene factors. According to Herzberg, the hygiene factors results in the form of dissatisfaction and these were external or environmental features e.g. company policy and administration, supervision, work conditions, salary and benefits. The intrinsic factors are also called satisfiers and motivators, included creative or challenging work, responsibility and advancement opportunities. Kovach (1987) also tried to identify the relationship; the need to provide the basic necessities of life motivates most people which in return make the employees satisfied from their jobs. Whereas Brown (1996) examines that when an organization is having some satisfied or delighted employees, it is likely to have satisfied or delighted customers. Brown said the employee satisfied and delightedness as a prerequisite of customer satisfaction. Thus Wagar (1998) explained that in the global market, one can be successful when it has highly motivated, skilled, and satisfied workforce that can produce quality goods at low costs. Hypothesis This study was conducted to test the following hypothesis: H1: Employee Work Motivation has direct positive effect on Job Satisfaction Research Methodology Keeping in mind what researchers have discussed in their work with relation to the effect of work motivation on job satisfaction of employee, this paper is been designed and the research is been conducted to have a clear view of the relationship. In this paper, job satisfaction is been analyzed through the change in work motivation. A questionnaire was designed to collect the required data for motivation and satisfaction. Data will be analysed using descriptive statistics including mean, median and standard deviation. Regression Analysis will be carried out to study the effect of work motivation on job satisfaction of employees. Population The population of the study will be mobile telecom organizations and their employees in Islamabad. There are five mobile telecom companies that are providing services of telecommunication to their customers. Sample and Response Rate The sample for this study was drawn from two organizations in the telecom sector. The sample will include 30 employees; thirty questionnaires will be distributed in both the organizations. Description of the Instrumentation Questionnaire to find the response of employees regarding Work Motivation and Job Satisfaction Work Motivation the Independent Variable Job Satisfaction the Dependent Variable Case Employees Construction A modified questionnaire tagged Work Motivation, and Job Satisfaction Scale (WMJSS) was used for the collection of data on the study. The questionnaire was specifically designed to accomplish the objectives of the study. The first section collected information such as age, sex, qualification and, professional status. The second section contained the items, and was divided into two parts. Part1. This measures job satisfaction, which included 7 questions. The item was adopted from Job satisfaction, Cook et al. (1981). Part2. This measures work motivation, which included 8 questions. The item was adopted from http://jinnahprojects.com, time: 3.26am and date: 19th dec, 2009. Both parts using a Likert scale ranging from Strongly Agree= SA; Agree = A; Somewhat agree = SWD; Somewhat Disagree = SWD; and Strongly Disagree = SD. Pilot Testing We have distributed our questionnaire to five employees of Zong and get the response from them. We have modified the questionnaire accordingly and consulted other people for assistance. Finalization After getting feedback and the amendments in the questionnaire, we consulted a senior teacher and got his satisfactory remarks about that. Thus the questionnaire is valid and reliable. Theoretical Model Job Satisfaction Work Motivation Independent Variable Dependent Variable Data Collection Convenient sampling was used to get data and two departments in Zong and two departments of Ufone were visited. In Zong, IT department and customer relationship department were been under observation and in Ufone, marketing and customer relation department. Sample of thirty was been distributed and got feedback from both the organization. Also verbal conversations were made to have conformity of the data collected. All the data collected is been edited by the researchers. There was very high response rate as it was a convenient sampling and getting feedback was quiet different from other sampling methods. Data Analysis The following statistical tools were implemented to get the findings: SPSS Inc 17.0 MS-Excel 2003 The following measures have been used to identify the relationship: Means and Standard Deviations will be calculated, that will provide us a broader view of the data, how much people are satisfied and up to what extend the psychology of employees differ in a work environment. Regression Analysis will be carried out to determine the effect of independent variables on dependent variables. Research findings Data Representation The frequency table of job satisfaction and work motivation is showing the scattered data in a group form. The standard deviations are showing the diversity of data which is indicating that there is a variety of opinions between the employees. Analysis of variance shows that how much the model is valid and what is the significance of the model. In this research work, significance level is 0.042 that is not a significant level for the model that was selected. It can be concluded that there must be some other variables that are intervening in our model and making contribution at a significant level. Thus the model has not attained the favorable level of significant and could not be used for further research. The p-value shows the significance of variable. As p-value is less then .05 so it can be said that the variables chosen for the study are not highly significant. These results are outcome of the wrong model selected. This study has made us know that there should be a check for the variables that one use in a model. The value of R square is too low that can be used for the relationship analysis of the variables. The value of beta is showing the positive relationship between the dependent and independent variables but not a strong relationship. If there is some relation, that would be positive direct relation. The table shows the correlation between job satisfaction and work motivation Findings Overall the employees are quiet satisfied with their jobs and have their interest in their job. More than average employees are motivated to work for the organization. Some of employees think that they are not on their actual path. Many employees think that the organization hasnt fulfilled their promises, what they do in beginning especially regarding Promotion. There is positive relationship between the motivation and job satisfaction. Employees often feel overworked. Conclusions and Discussion Suggestions To increase the job satisfaction level of the employees the company should concentrate mainly on the incentive and reward structure rather than the motivational session. Ideal employees should concentrate on their job. Educational qualification can be the factor of not an effective job. Company should give promotion to those employees who deserve it. For the researchers who want to do research on such variables, must see the validity of the model and intervening variables that may affect the relationship strongly. Limitations of Study However data is collected with full level of our efforts, yet there remain some flaws in our study. While doing research, many problems are there to be faced by the researcher. The prime difficulties which are been faced in collection of data in this study are discussed below: Short time period: The time period for carrying out the research was short as a result of which many facts have been left unexplored. Lack of resources: Lack of time and other resources as it was not possible to conduct survey at large level. Small no. of respondents: Only sixty employees have been chosen that was a small number, to represent whole of the population. Unwillingness of respondents: While collection of the data many consumers were unwilling to fill the questionnaire due to lack of time. Respondents were having a feeling of wastage of time for them. Small area for research: The area for study was limited to specific organizations that are quite a small area to judge job satisfaction level.

Slovakia Economic Analysis :: essays papers

Slovakia Economic Analysis Country: Slovak Republic Formation of the Slovak Republic The Slovak Republic, or Slovakia, is located in Eastern Europe with a population of 5.4 million people and borders the countries of Poland, Austria, the Ukraine, and the Czech Republic (The World Bank). As originally part of the former nation of Czechoslovakia, the Slovak Republic has only recently begun to write its own history (Abizadeh, p. 171). During 1989 many revolts took place against eastern European governments under communism, including Czechoslovakia (Slovakia.Org, â€Å"20th Century†). Both Slovaks and Czechs staged massive protests against communism in Czechoslovakia and ended the communist regime in November 1989 (Slovakia.Org, â€Å"20th Century†). Under the new non-communist system of government, the two republics of Czechoslovakia were established: the Slovak Republic and the Czech Republic (Embassy of the Slovak Republic). In June 1990, with the federal and republic-level governments in place, free elections were held for the first time in the country since 1946 (Slovakia.Org, â€Å"20th Century†). The main concern of the new government was the transformation of Czechoslovakia from a state-controlled to a free market economy (Embassy of the Slovak Republic). Disputes arose between the two republics about reform process which focused on privatization, the encouragement of foreign investment, policy of macro-economic stabilization, price liberalization, and liberalization of foreign trade (Slovakia.Org, â€Å"20th Century†). The Czech Republic was more economically developed than the industrial-based economy of Slovakia (Slovakia.Org, â€Å"20th Century†). The transition to a market economy left the Slovak Republic to endure greater economic hardships than the Czech Republic (Sovakia.Org, â€Å"20th Century†). For example, the federal government chose to dramatically cut the country’s defense industry, resulting in a large decrease in industrial production and a large rise in unemployment in Slovakia (Slovakia.Org, â€Å"Slovak Economy†). This took place because the economy that rose out of the communist era in Slovakia was based on industrial production, particularly on weapons and military equipment (Slovakia.Org, â€Å"Slovak Economy†). There was a great difference of opinions between the Slovaks and Czechs about the nature and pace of economic reform in Czechoslovakia (Slovakia.Org, â€Å"20th Century†). The disagreements delayed the reform process and also the acceptance of a new constitution (Slovakia.Org, â€Å"20th Century†). It became obvious that the current form of government could meet the demands of both republics. As a result, Slovakia declared its sovereignty in July 1992, in other words, its laws took higher priority than those of the federal government (Slovakia.