Motivation may be defined as psychological forces that determine the direction of a person’s behavior in an organization - Motivation Essay introduction. Motivation is central to management because it explains why people behave the way they do. In a 1-2 page paper, discuss the principle needs/desires of the typical employee. Then, using two motivation theories presented in the course readings, discuss how managers can best motivate their employees to succeed. Carefully review the Grading Rubric for the criteria that will be used to evaluate our assignment.
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More specifically it aimed to find out which aspects of the reward system functions ell, and which aspects could be further developed and improved in order to increase employee satisfaction - Motivation Essay introduction. The theoretical part of the study introduces different theories of motivation and rewarding. Emphasis is put on Mason’s hierarchy of needs, the goal setting theory and the total reward system. The empirical part of the thesis was conducted by using a quantitative research method. The data was gathered with the help of a questionnaire and two interviews.
The aim of the research was to compare the different reward systems used in Monnet-Spot and find the pros and cons of them. The research results revealed how Monnet-Spot can develop their reward system by including the employees in the decision making process. The research supports the assumption that a well developed and functional reward system can increase employee motivation and satisfaction.
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The aim of this study is to investigate and analyze how well the current reward system of Monnet-Spot helps generate employee motivation. More specifically it aims to find out which aspects of the reward system functions well, and which aspects could be further developed and improved in order to increase employee satisfaction. Monnet-Spot has earlier conducted some smaller research on the overall Job satisfaction of the company, however only little research has been made on employee work motivation and attitudes towards the reward systems in the company.
The driving force behind this study is to enable the employees of Monnet-Spot to give feedback on their work motivation and their attitudes towards the reward systems and hence perhaps increase their commitment to the company. Based on this information, the research question of this thesis work is: 1 . What motivates the employees of Monnet-Spot? 2. Which reward system does the employees perceive the most motivating? 3. How can the reward systems be further developed? 1. 2 Description of Material and Method This paper is constructed in the following way.
In the theory part, the author presents the different reward and incentive types and introduces what motivation is. The process 8 of motivation is introduced together with intrinsic and extrinsic motivation. However, he main emphasis is put on the different reward systems, especially the ones that are used in Monotone-Spot. Also different theories of motivation are presented; some of these are Mason’s hierarchy of Needs and the goal setting theory. The author used Mason’s hierarchy of needs and the goal setting theory in order to examine the effect of the reward systems on employee motivation in Monnet-Spot.
In order to determine what rewards the employees perceive the most motivating and to what extent the employees are ready to increase their work effort, the author used the total reward system. The information to the study was gathered through a quantitative research questionnaire and two interviews. With the help of the information that was gathered, the author was able to compare the different reward systems and make a conclusion on what areas Monnet-Spot could improve in order to increase the employees work motivation.
The questionnaire also included some open questions where the respondents could give own suggestions on how to improve the reward system or recommend other rewards that would motivate them. 1 3 Limitation AT ten study The research conducted focuses only on the employees of Monnet-Spot, which earns that the sample-size is limited. Furthermore, limitations were set on the theories used to analyze the level of motivation and satisfaction with the reward system. The author used Mascots hierarchy of needs, the goal setting theory and the total reward system to analyze the results.
The questionnaire was filled in anonymously and was therefore limited to be analyzed on general and not individual bases. 1. 4 Background Employee motivation is one of the most essential parts in a company’s development and success. In order to maximize the overall performance of the company it is vital for an 9 employer to understand what motivates the employees and how to increase their Job satisfaction. It might however be challenging for a company to find out what motivates its employees, especially because different people are motivated by different things.
A well designed and functional reward system is an efficient way to increase employee work motivation. The appropriate type of reward is developed in accordance to the company’s reward philosophy, strategies and policy. However, it might be challenging to find the right way to combine the company’s integrated policies and practices together with the employee’s contribution, skill and impotence. (Armstrong, 1999, p. 569570). Monnet is a Finnish company that specializes in the automotive aftermarket.
The company’s product range stretches from car and motorbike spare parts and accessories to fishing and boat equipment, industrial tools and D. L. Y-products. The company belongs to BARMAN group Ay, which also owns AD Parallelograms. There are altogether 17 Monnet stores around Finland. The customers of Monnet are mostly private individuals, municipalities and car repair companies. The company is fairly new, it was established 1990 in Turk and employs currently over 420 individuals. The unit of Monotones was founded 2004 and employs 21 full-time and 6 part-time employees. Wry. Monnet. FL) Monnet has made some former research on employee work motivation on a general bases. The research has however been concentrated on the employee’s satisfaction with the employer and the company, not the reward system. The unit of Monnet-Spot has had some problems with finding the right way to motivate its employees and hence the store manager suggested if the author could conduct a survey that would especially concentrate on how to increase work motivation and develop the reward systems.
These needs create wants, which in turn become desire to achieve or obtain something. In order to satisfy the needs and wants, goals are created and a behavior selected in order to achieve these goals. If the goal is achieved, the behavior is likely to be repeated when a similar need emerges. If the goal is not achieved, the same action is less likely to be repeated. (Armstrong 1988, p. 106-107). Managers can motivate employees through methods such as pay, promotion and praise. Employees can also motivate themselves by seeking work where individual goals, needs and wants will be achieved.
These two types of motivation are called intrinsic and extrinsic motivation and are more closely described as follows: (Armstrong 1988, p. 109). Intrinsic motivation refers to the motivation that comes from inside an individual. The motivation is generated trough satisfaction or pleasure that one gets in completing or even working on a task. Factors that influence on intrinsic motivation include responsibility, freedom to act, scope to use and develop skills and abilities, interesting work and opportunities for advancement.
These motivators, which are concerned with the quality of work life, tend to have a long-term effect since they are inherent in individuals and not imposed from outside. (Armstrong 1988, p. 109-110). Extrinsic motivation is something that is done to or for people to motivate them. It arises from factors outside an individual, such as money, grades, criticism or punishments. These rewards provide satisfaction and pleasure that the task itself malign not provoke. An extrinsically motivate person malign work on a task even when they have little interest in it.
This type of motivation usually has an immediate and powerful effect, however it does not tend to last for long. (Armstrong 1988, p. 109-110). 12 Personal Personal Intrinsic Personal Satisfaction Interpersonal Personal Social Interaction Extrinsic Personal Personal Rewards Public Recognition Figure 2. Extrinsic and intrinsic motivation (Michael Armstrong). 2. 2 Theories of Motivation Content Theories of Motivation are based on the needs of individuals. These theories try to explain why the needs of individuals keep changing overtime and therefore focus on the specific factors that motivate them.
In general, these theories explain motivation as the product of internal drives that encourage an individual to move towards the satisfaction of individual needs. Major content theories of motivation are Mason’s hierarchy of needs, Miscellany’s learned needs theory, Alder’s ERG theory and Herbage’s motivation-hygiene theory from which the firstly mentioned will be closer discussed. (Barreled & Clayton, 2007, p. 492). Mason’s hierarchy of Needs is a theory of personality that identifies five basic need categories: Physiological needs are basic human needs that are vital for survival.
Examples of these needs are food, water, air and comfort. The organization provides a financial reward by paying a salary and this way helps to satisfy employees’ physiological deeds. 13 Safety needs reflect a desire for security and stability. Examples of these needs include desire for steady employment, health insurance and safe neighborhoods. Social needs are the desire for affiliation. They reflect the person’ s desire for love, affection and belonging. These needs can be fulfilled by the organization trough sport teams, parties and celebrations.
The managers can help to satisfy employees’ social needs Dye snowing lealer care Ana concern Tort employees. Esteem needs include the need for things that reflect on personal worth, selflessness and social recognition. Individuals need to attain a good reputation in a group or strive to increase their status in the eyes of others are driven by these needs. The organization can help to satisfy employees’ esteem needs by showing workers that their work is appreciated and recognized. Self-actualization needs are the individuals desire for self-fulfillment and the realization of doing what he or she has the potential of doing.
Assigning tasks that challenge employees’ minds and encouraging their aptitude and training are examples on how the organization can help fulfill self-actualization needs. (Barreled & Clayton, 2007, p. 93). Self-actualization personal growth and fulfillment Esteem needs achievement, status, responsibility, reputation Social needs family, affection, work group, relationships Safety needs protection, security, law, limits, stability Physiological needs air, food, shelter, sex, sleep, warmth Figure 3.
Mason’s hierarchy of needs (Barreled and Clayton). 14 The basic needs are arranged in a hierarchy where the most basic need emerges fist and the most sophisticated need last. In other words, the higher-order needs including belonging, esteem, and self-actualization are not seen important until the rower-order needs which are safety and physiological are satisfied. Managers should find out what motivates the employees at each of the levels and develop a reward strategy accordingly. (Toss, Orzo & Carroll, 1994, p. 17 and Barreled & Clayton, 2007, p. 493). Mason’s hierarchy of Needs has been criticized because there is little evidence that support its strict hierarchy and the fact that people satisfy only one motivating need at a time. The theory also fails to prove any clear relationship between needs and behavior, and is therefore unable to predict when a specific need will be manifested. Barreled & Clayton, 2007, p. 493-494). Process Theories of Motivation tries to explain how behavior change occurs and why individuals act in different ways.
In other words, they focus on how workers needs influence their own behavior. Process theories originate from early cognitive theories, which state that behavior is the result of conscious decision-making processes. Following are the most famous process theories: reinforcement theory, expectancy theory, equity theory, and goal setting theory, from which the goal setting theory will be closer discussed. (Toss, Orzo & Carroll, 1994, p. 226).
The goal setting theory of Locke and Lethal assumes that human behavior is governed by goals and ambitions, which lead to the assumption Tanat an employee Walt enlarger goals will ah netter than an employee Witt lower goals. This theory states that there is a positive relationship between goal precision, difficulty and performance. Hence, if an employee knows precisely what he or she is expected to do, that individual will do better than someone whose goals are vague. Adequate and timely feedback plays an essential role in the goal setting theory sine it has a the following effect on the employees: (Barreled & Clayton, 2007, p. 98). Increase feelings of achievement increase the sense of personal responsibility for the work reduce uncertainty refine performance.
Dish Network Corporation, commonly known as DISH, is a United States satellite broadcaster, providing direct broadcast satellite service, satellite television, audio programming, and interactive television services to over 14 million commercial and residential customers in the United States - Motivation Essay introduction. Charlie Ergen along with his wife and friend Jim DeFranco founded the company in 1980. They formed EchoStar and it served as a satellite television equipment distributor. EchoStar was officially re-branded as Dish Network in March 1996.
This branding came after the successful launch of its first satellite, EchoStar I, in December 1995 and marked the beginning of the company offering subscription television services. Dish Network’s main service is satellite television. Its offerings are similar to other satellite and cable companies. Viewers can choose channels from a series of service bundles or can decide to pay more for other channels. The corporate office is based in Colorado and has approximately 30,000 employees worldwide most of whom are located within the U. S. In a recent survey conducted by 24/7 Wall St.
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they discovered that 64 percent of workers said they were very dissatisfied with the company. Employees must be happy at their job to be at their maximum efficiency. In contrast employees who are not happy will not perform and the company’s revenue will suffer. According to employee responses, Dish Network has been described to lack an effective policy of motivating employees. This is a major issue and needs to be addressed since it is a contributing factor that negatively affects the company’s performance. Dish Network is among the worst rated in the industry based on American Customer Satisfaction Index.
In fact, having looked at employees’ survey results, we noticed one common complaint that Dish Network employees are dissatisfied with. The company’s policies strongly emphasize sales at all costs, frequently at the expense of customer service. This often involves having extremely hard-to-meet performance metrics, such as hourly sales quotas. Many reviewers objected to the company’s low pay, mandatory overtime, no holidays off, no corporate events, no team building events, and bad management. Dish claims, on its careers page, to be
concerned with “taking care of you today,” with medical insurance and flexible savings accounts, and “taking care of you in the future,” with life insurance and 401(k) accounts. On the other hand, here are some trending customer complaints about Dish. “Extremely micromanaged. 95 percent of calls are from irate customers,” writes a customer service representative in Phoenix. A former employee in Englewood, Colo. comments: “You are not allowed to leave the building without swiping your badge in order for management to track hours. ” This person adds: “Lunch has to be taken between 11:30 and 2:00 p. m.
no matter what” and “employees are encouraged to eat lunch at their desk in order to ‘work through it. ’” The numerous rules employees must follow result in a lack of motivation and in turn, effect productivity. Motivation is often described as the persistence to expend work. Some individuals continue to stay motivated because they want to excel in their field of study or be highly successful. However it is easy to lose this focus, therefore managers need to continuously motivate workers. Motivation is the key to improvement. Motivated employees are more cost effective because they help produce profit for the company.
To be effective, managers need to understand what motivates their employees because if they want to have successful performance at the company, they need to realize that it is directly linked to employee satisfaction. Thus, based on the survey results we identified the following major problems that affect employees’ motivation: a hostile environment between employees and supervisors due to intimidating policies, unachievable sales quotas, disrespect, bad treatment, inefficient policies and rules, untrained supervisors, lack of help, insufficient salaries, and lack of recognition, achievement, advancement and personal growth.
The goal of this project is to find the proper solutions for those problems. The following two theories will help us to identify those solutions. The first is Frederick Herzberg’s two-factor theory, which points out two types of factors: hygiene factors and satisfier or motivator factors. Hygiene factors include such things as working conditions, interpersonal relations, organizational policies and administration, technical quality of supervision, and base wage or salary.
Motivator factors, on the other hand, include sense of achievement, feelings of recognition, a sense of responsibility, the opportunity for advancement, and feelings of personal growth. They are most consistent with the higher-order needs of Maslow. This theory views hygiene factors as an influence to high or low job dissatisfaction. By contrast, satisfier factors influence high or low job satisfaction. Herzberg doesn’t consider improving on hygiene factors alone would increase job satisfaction of employees. The satisfier factors are the real keys to job satisfaction or increased motivation of employees.
It’s only by improving on these elements we can expect more motivation and higher performance. As described, the first four problems – hostile environment, inefficient policies and rules, untrained supervisors and lack of their assistance, insufficient salaries – correspond to hygiene factors, which are important to improve on, but it’s not enough to increase motivation. Only by working and improving on the final problem – lack of recognition, achievement, advancement and personal growth, we can reach employees high motivation.
The second theory is presented by David McClelland. He defined a range of actions used to solve a difficult task. McClelland states that most people either can be achievement-oriented, interaction-oriented, or power-oriented, or even exhibit a combination of all three. McClelland suggested that a strong interaction-orientation undermines a manager’s objectivity, because of their need to be liked, and that this affects a manager’s decision-making objectivity.
A power-oriented orientation will produce a determined work ethic and commitment to the organization, and while power-oriented people are attracted to the leadership role, they may not possess the required flexibility and people-centered skills. McClelland argues that power-oriented people with strong orientation make the best leaders, although there can be a tendency to demand too much of their staff. Typically achievement-motivated individuals set goals which they can control and as such the goal is considered to be achievable.
They constantly seek improvements and better methods of going about situations. Achievement for such people is more important than material or financial rewards; in fact, they regard financial reward as a measurement of success, not a means to an end. However, feedback for them is essential, because it enables measurement of success, not for reasons of praise or recognition. This orientation is almost always present in the character of all successful business workers and entrepreneurs.
McClelland firmly believed that achievement-oriented people are generally the ones who make things happen and get results. Now that we introduced the motivation theories, let’s take a look at how we can apply them in order to identify the solutions for the lack of effective motivation policy problem in Dish Network. As we stated before, improvement on satisfier factors is the key to high motivation and job satisfaction of employees. In order to get people motivated it’s crucial to recognize their hard work and give them opportunities for advancement and personal growth.
To achieve this goal it is important to set departmental productivity benchmarks which will serve as criteria for setting weekly achievable realistic goals for the whole department and each employee. However, these goals shouldn’t be too easy to achieve, but have to challenge employees. For example, weekly achievable sales quotas would definitely make employees more enthusiastic about completing their task on time, but if at the same time it’s quite challenging to achieve those quotas employees will be motivated to work even harder and to their best ability to reach the weekly goal.
In order to recognize employees’ effort and hard work, the company should set aside a certain amount of money for sales department bonuses based on their annual performance. The amount of bonuses should depend on how much percent the department achieves its quarterly goals. The department manager should distribute the bonuses between employees according to their performance: for example, 100% of achievement – high bonus, less than 50% – the smallest one. This could stimulate the teamwork within the department, but individual achievements are also rewarded by higher bonuses.
During weekly meetings managers should discuss the weekly performance and recognize people who especially contributed to achievement of weekly goals. Those employees who consistently stand out should be considered for advancement or promotion or bigger salary. Promotions should be from within rather than outside of the company and based on individual’s acquired job skills and experience rather than personal connections with top management. The company should have a code of ethics that would provide guidelines on how to deal with such ethical dilemmas as well as consequences for violating these guidelines.
It is important to have high ethical expectations on managers of all levels, which would set an example for employees. Based on Herzberg theory, in order to decrease employees’ dissatisfaction at their workplace we need to work on hygiene factors – hostile environment, ineffective policies, untrained supervisors and lack of their assistance to employees. It is important to eliminate core hours and badge report policies and implement flexible working hour policy that would offer choices of starting and ending times while still putting in a full work day.
Another solution is a compressed workweek policy that would encourage employees to complete a full-time job in less than a standard five days of eight-hour shifts if they would choose to work more effectively and distribute their time on work to their own convenience provided they achieve weekly goals. Top management should implement good quality training programs of supervisors emphasizing their support and willingness to help employees. It is advisable to have monthly departmental meetings and team-building activities where employees would share their concerns with the supervisors and discuss ethical dilemmas.
Such meetings can increase trust between employees and supervisor and his/her approachability. Supervisors and managers should not communicate negative feedback through the write-ups and memos. Instead, it should be done through personal tactful conversations beginning with the description of what a person has accomplished and the goal he/she was attempting to reach, followed by a discussion of ways they can bridge the gap between the two. There always has to be positive feedback from supervisors whenever there is an opportunity.
McClelland Theory suggests that managers should be aware of psychological needs and orientations of their employees in order to give him/her an appropriate job. It is advised for each employee in the company to fill out job placement test to determine whether a person is power-oriented, achievement-oriented, or interaction-oriented. To fulfill the power-oriented role employees can be appointed as supervisors to oversee the employees’ performance and then report to the department manager.
Achievement-oriented employees can be appointed by department managers to attend seminars with top management to discuss long-term goals for the company and participate in setting those goals. Such employees, very much focused and task-oriented, would always make sure that the goals are being accomplished. Finally, interaction-oriented employees can work in customer service department so that they can directly interact with customers. Interpersonal and excellent communication skills of such employees would be very advantageous in ensuring customer satisfaction.
As we have thoroughly gone over the few alternative solutions we have proposed in the previous text, you will be able to see that each brings different types advantages and disadvantages. One of our first solutions with the Herzberg theory is having departmental productivity benchmarks. Here, there are far more advantages than disadvantages. Some of the possible advantages include increased recognition, increased personal growth, stimulation of teamwork within the department, and increased motivation. These advantages benefit the company in many ways.
For example, if the alternative solution stimulates the teamwork within the department, it can only be beneficial for the whole department. When one department is working hard and reaching their quotas, it can make another department try and work twice as hard to receive the added bonuses. The other side of the spectrum includes the fact that workers may become envious and the bonuses for other employees may actually discourage workers if they have never received a bonus. Situations like this seem hardly probable because everyone is willing to work hard if there is an incentive involved that is relevant to everyone.
A second solution includes having a compressed workweek policy, which would encourage employees to complete a full-time job in less than the standard eight-hour workday. An advantage of this is that employees can use this time to go to school meetings or doctors’ appointments with their children. An obvious disadvantage is that employees might not be able to finish all of their work in such a short time frame. A final solution for the Herzberg theory is to have ethics discussions. This will help avoid disrespect among employees. Although, some employees may not feel comfortable speaking about issues that happen in the workplace.
Employers can highly encourage their staff by explaining the importance of these topics even though there could be many sensitive topics that may arise. Finally, in regards to the McClelland theory, our final solution is to have a job placement test for employees. Some advantages include being able to find the best job for each employee that fits their own needs, employees may feel more comfortable doing their job because it fits their personality, there will be less complaints at the workplace, and it may decrease the turnover rate for new employees since the employees will be more satisfied with their job.
The other side to this solution is that this placement exam can sometimes combine all three orientations. It seems that Dish Network is a company that provides for thei r customers, but fails to provide for their employees. Different theories of motivation at the workplace can be very helpful for senior managers to decide which practice is best. These theories demonstrate that highly motivated employees can improve their efficiency, output, and quality of their work. Motivating staff helps increase commitment and creates a positive atmosphere.
By understanding the effects of different motivation techniques, Dish Network will be able to make the working environment more exciting and enjoyable for employees while increasing productivity, profitability, and competitive business. Works Cited Gawel, Joseph E. (1997). Herzberg’s theory of motivation and maslow’s hierarchy of needs. Practical Assessment, Research & Evaluation, 5(11). Retrieved November 27, 2012 from: <http://PAREonline. net/getvn. asp? v=5&n=11>. “Goal Setting Theory of Motivation. ” Goal Setting Theory of Motivation. Management Study Guide, 2008.
Web. 27 Nov. 2012. <http://www. managementstudyguide. com/goal-setting-theory-motivation. htm>. Herzberg’s two-factor theory. Motivation. Chapter 14. Schermerhorn, John R. Exploring Management. Hoboken, N. J: Wiley, 2010. McClelland, D. C. (1961). The achieving society. New York: D. Van Nostrand Company, Inc. McClelland, D. C. & Burnham, D. H. (1976). Power is the great motivator. Harvard Business Review. January-February 1995. Retrieved September 27, 2001 from the World Wide Web: <http://www. hbsp. harvard. edu/temp/r_12616-2001-9-27-15-r. html>.