BUST08026 Introduction to Business

Introduction:

The positive reinforcement of the companies has a significant effect on the wellbeing of the employees (Anitha 2014). A motivated employee would deliver a higher level of performance than the less performing ones (Anitha 2014). The managers of the firm believe in the fact that motivation can bring out the best quality of work from the employees (Anitha 2014). A competitive rewards and recognition system helps the organization to enhance the motivation level of the employees.

The reason for choosing the topic is that motivation in the form of adequate rewards is needed for the organization to accomplish its long term goals. The human resource is responsible for achieving the vision of the organization and hence they need to be motivated for better work output. This report would discuss the various theories related to motivation and rewarding. The role of the topic in enhancing the prosperity of the organization would also be elaborated. Two practical examples of Google and Apple would be given for better understanding of the chosen topic.  

Discussion

Relevant theories of motivation

The theories of motivation can be broadly classified as content theories and process theories. The content theories underline the exact motivational factors that help in the enhancement of the motivation of the employees (Munro, Schumaker and Carr 2014). On the other hand, the process theories of motivation underline the process of motivation that is evident in the organization.

                           

Fig: Classification of motivation theories

Source: (Munro, Schumaker and Carr 2014)

The various content theories of motivation include the following-

Maslow’s Needs Hierarchy- As opined by Kaur (2013), the Maslow’s theory focuses on the basic needs of the individuals so that the individuals are motivated to attain higher level needs. There are five levels in the hierarchy such as physiology, safety, love, esteem and self-actualization (Munro, Schumaker and Carr 2014). The physiology needs focus on survival needs of the persons such as food, shelter and water. The safety needs include the personal as well as financial security. The next level comprise of the need for relationships, family and friendships (Munro, Schumaker and Carr 2014). The esteem level comprises of the need of being confident as well as respected by others. The level of self-actualization is concerned with the desire of achieving everything.

Herzberg’s Motivation-Hygiene theory- This theory relies on two factors that help in the employee satisfaction and motivation. The motivator factors concern with the parameters that lead to motivate as well as satisfy in the workplace which foster them to work harder. The hygiene factors lead to lack of motivation and subsequent dissatisfaction if there is absence of certain factors (Munro, Schumaker and Carr 2014).

There are different kinds of process theories such as-

Vroom’s Expectancy theory- This theory is based on the fact that the behavior of the people is influenced by the outcomes that they expect from their behavior. There are three elements of this theory such as expectancy, valence and instrumentality (Kiatkawsin and Han 2017.).

Goal setting theory- The goal setting theory of motivation focuses on the fact that the motivational goals need to have following dimensions such as challenge, clarity, feedback, commitment and complexity (Locke and Latham 2013). The employees would be motivated if the goals are clear as well as measurable.

Reinforcement theory – As opined by Lepper and Greene (2015), the reinforcement theory of motivation emphasizes on the fact that someone’s behavior can be enforced by extinction and punishment (Munro, Schumaker and Carr 2014). The organization used rewards for reinforcing the behavior of the employees and the punishments are used for preventing unwanted behaviors.

Role of motivation and rewarding in organization 

The motivation is important form an organizational point of view. It improves the efficiency of the employees and builds a positive organizational culture (Pinder 2014). It encourages the employees to give better performance and this would lead to overall process efficiency (Pinder 2014). There is a co-operative work environment, which provides a good platform for both the new and old employees (Pinder 2014). The goals of the organization can be achieved only if there is sufficient team work in the organization. The motivation also leads to stable workforce, which is beneficial for the organization in the long run (Pinder 2014). The motivated employees are less likely to resist any changes in the organization.

A competitive reward system is responsible for reducing the attrition level of the organization (Pinder 2014). This would lead to an increase in the organizational savings and there would be enhancement of the public image (Pinder 2014). This would also lead to more employee satisfaction, who would contribute more to the organizational success (Pinder 2014). There would be optimistic and challenging attitude in the work place, which is essential for any professional environment (Pinder 2014).

Effect of motivation on goals achievement

The magnitude to which employees are motivated in an organization and in their job life depends on how well those employees are being able to achieve their goals and objectives. Motivation is estimated to have a constructive effect on quality performance and goals achievement. Employees who are regarded by an extended level of motivation display a better work and life satisfaction. Encompassing a high level of motivation is in itself is valuable for employees and a drop in motivation may affect employee’ performance (Osabiya 2015).

The motivation directs to a better level of initiative and ingenuity from the employee and in situations where monitoring is tough, motivation is therefore significant for ensuring high quality performance and goal achievement. Motivation helps bring organizational effectiveness by locating and attaining objectives proficiently in a spirited and energetic environment. An intrinsically motivated and satisfied employee is a productive employee for any organization who can achieve the goals efficiently and lead to profit maximization. Motivation urges employees to do better and pushes them into getting the job done. Employees or staff that have a lower level of motivation have a tendency of working slower, with no regards for achieving objectives, or productivity and the organization ends up losing business money (Ditlev-Simonsen and Brøgger 2013).

Two examples of organizations

Out of the box motivating and rewarding systems adopted by big organizations have brought them success and revenue. One such organization is Google, who can claim the crown over others. They have more than 50,000 employees all across the globe, but their support towards their employees sets them apart. They have a philosophy of creating the happiest and most productive workplace of all on the globe and due to that they are able to claim amazing perks, immense amounts of flexibility and freedom, and unorthodox office designs as a part of their company. They provide benefits to their employees in the form of bike repair, on-site car wash, gym and other comforts. They provide 100 percent pay and 18 weeks maximum leave in their maternity benefits. Employees get the opportunity to evaluate their own managers, and less performing employees get additional coaching (Coleman 2016).

Apple is another esteemed company that motivates its employees with a desire to build a workplace that supports creativity. Apple provides a lot of flexibility within the organization for its employees and their family. They provide incentives that covers health and life protection, employee stock purchase plan, paid vacations, short and long-term disability coverage and so on (Kosoff 2016).

Challenges

In today’s competitive world, where every organization is aiming to keep their employees motivated and happy for increased productivity, it is difficult to satisfy every employee all the time. The advent of internet has made it easier to access information for both employees and organizations. Diversity is one of the vital factor that challenges the management in preparing motivational program for the employees. Around fifty years back there were fewer women working and the workforce had no representation of minority groups like today. In modern organizations there are multi-level structures which facilitates open communication in which leaders face issues in identifying employee expectations from one level to another. This issue was absent in early leaders when organizational structure had no trend of MNC’s and multilevel structure. Today’s employees are more aware of what their rights are within the organization and sanctioned by the government. Hence, the leaders have to be more alert in taking care of all the rights that are related with the employees while they are creating the motivational strategy. This issue was not present in early times when employees used to believe just in working and not in fighting for their rights (Manzoor 2012).

Conclusion:

Looking to improve employee motivation with the help of rewards is a daunting task for the management of any organization. With the proper technique managers can become experts in developing motivation using rewards within no time. A good start can be by involving all the employees in the development, application and modification of rewards programs for encouraging communication between the employees and the managers regarding the process. It can also ensure the reward system is valued by the employees and see them as worth the effort. Valuing both employee input and selecting rewards accordingly would motivate employees to work hard to attain them. Employees must be clearly aware of how they can earn the rewards by understanding what is expected of them, which can make them more capable of achieving their goals. Basing the reward determination process on objective data would make the employees feel the process is fair and increase their motivation in achieving their goals. As found out from the discussed theories in this report, use of positive reinforcing behaviour would increase employee self-esteem and call for greater dedication and contribution from the employees and the organization too.

References:

Anitha, J., 2014. Determinants of employee engagement and their impact on employee performance. International Journal of Productivity and Performance Management.

Coleman, A. 2016. Is Google's model of the creative workplace the future of the office?. [online] the Guardian. Available at: https://www.theguardian.com/careers/2016/feb/11/is-googles-model-of-the-creative-workplace-the-future-of-the-office [Accessed 17 Jun. 2017].

Ditlev-Simonsen, C.D. and Brøgger, B., 2013. CSR and employee motivation. CSR and beyond: A Nordic perspective, pp.117-134.

Kaur, A., 2013. Maslow’s need hierarchy theory: Applications and criticisms. Global Journal of Management and Business Studies, 3(10), pp.1061-1064.

Kiatkawsin, K. and Han, H., 2017. Young travelers' intention to behave pro-environmentally: Merging the value-belief-norm theory and the expectancy theory. Tourism Management, 59, pp.76-88.

Kosoff, M. 2016. The 19 best perks when you work for Apple, according to staff. [online] Financial Review. Available at: http://www.afr.com/technology/technology-companies/apple/apple-staff-reveal-the-19-best-things-about-working-for-the-technology-giant-20160418-go8op4 [Accessed 17 Jun. 2017].

Lepper, M.R. and Greene, D. eds., 2015. The hidden costs of reward: New perspectives on the psychology of human motivation. Psychology Press.

Locke, E.A. and Latham, G.P. eds., 2013. New developments in goal setting and task performance. Routledge.

Manzoor, Q.A., 2012. Impact of employees motivation on organizational effectiveness. Business management and strategy, 3(1), p.1.

Munro, D., Schumaker, J.F. and Carr, S.C., 2014. Motivation and culture. Routledge.

Osabiya, B.J., 2015. The effect of employees motivation on organizational performance. Journal of public administration and policy research, 7(4), pp.62-75.

Pinder, C.C., 2014. Work motivation in organizational behavior. Psychology Press.