A Comparison of Motivation Factors in the UK and China - Essay Example

A comparison of Motivation factors in the UK and China Introduction According to Xueliang and Wang (2010), employee motivation refers to employees willingness to exert ahigh level of effort towards organizational goals, conditioned by the effort’s and ability to satisfy some individual needs. It is a process which an organization meets employees’ demands for a specific goal and then influence employees to improve their performances and achieve company’s goal. In order to engage in the process of inspiring employees, the organizational managers must understand the unfulfilled needs of each category of employees in the organization. Employee motivation has become of significant effect in the modern business world because of increasing business competitiveness (Ahlstrom & Bruton, 2009). Various studies indicate that there is a significant difference between organizations that value their workers and those which have little concern for the employees. The telecommunication industry across the globe is under high pressure to improve performance due to constant change in technology and new demands of the employees. One of the questions many managers need to ask is why an organization would require employee motivation (Malik et al., 2011). Also, the managers should consider what motivation is appropriate for each category of employees in order to achieve required change or performance (Xueliang & Wang, 2010). The timing of motivation is also necessary to make the desired change at the right time. There is a direct relationship between employee motivation and organization performance. The scope of this document is to examine various factors that motivate employees and provide a comparison of employee motivation in the telecommunication industry between China and UK. In addition, the report will analyze the performance of the telecommunication industries of the two countries and establish any relation between employee motivation and performance (Chen et. al, 2012). The study will involve only secondary data obtained from peer-reviewed sources but will not include any primary data. Employee motivation in the telecommunication industry Employee motivation is one of the core long-term success elements in many organizations, even though, some employers always try to overlook its importance. “Work Motivation is a set of energetic forces that originate both within as well as beyond an individual’s being, to initiate the work-related behavior and to determine its form, direction, intensity,and duration” (Kapoor et. al, 2013, p. 283). Employee motivation is an internal disposition of a person to be focused on and approach positive inducements and shun disincentives. The employee motivation factors can be categorized as those based on their needs as described by Maslow theory. Other requirements are social needs derived from the environment, experience and education such as the need for affiliation, achievement, and power as described in McClelland theory (Mackay, 2010). Finally, the employees can be motivated by motivation-hygiene factors as discussed by Hertzberg’s motivation hygiene theory. The employee motivation factors in the telecommunication industry are the forces that drive workers to choose particular jobs, maintain their jobs and focus their effort towards improving their performance in those particular jobs (Malik et al., 2011). However, it is worth noting that although some factors are categorized as the most important in motivating employees, those factors vary from firm to another and across individuals. The level of satisfaction also depends on the culture of the workers and their attitudes towards various motivating factors applied by the organization (House of Commons: Trade and Industry Committee, 2005). According to Maslow Theory of employee motivation, human needs occur in hierarchical order, and the satisfaction of lower level needs is a pre-requisite for the satisfaction of higher needs. The theory of employee motivation was advanced by McClelland theory that ranked needs into three categories namely the need for achievement, the need for affiliation and the need for power. Employee motivation theories have presumed that proper employee motivation results to job satisfaction and improves organization performance Source; Kapoor et. al, 2013, The telecommunication industry is one of the most dynamic sectors across the globe because it is dominated by large number of operators dealing with wide range of products and services. The sector is technologically driven, and technology is the heart of telecommunication development (Ahlstrom & Bruton, 2009). The use of traditional cable television was the driver of a telecom sector, but the introduction of Information Technology (IT) brought a supplementary facet in this sector. It provides improved communications in which people can relate to their machines such as computer, mobile phone, televisions, etc. UK Telecommunication Industry The largest organizations in the telecommunication industry in UK include BT, Orange, Vodaphone and T-Mobile (Chen et. al, 2012).The industry is fast paced and undergoing rapid expansion offering mobile services, land telephony, broadband, IPTV and Video on Demand services. The IT and telecommunication industry in UK employed about 5% (1.5 million) people in UK by the year 2011. Due the interconnectedness of IT and telecommunication industry with other sectors, there are about 863,000 workers in the IT and telecommunication sector and about 674,000 IT and telecommunication experts operating in other industries (Malik et al., 2011). The information about the number of employees operating in a given industry is essential due to the critical role the IT and telecommunication play in the UK economy and to the individuals. According toPride et al. (2013, p. 291) “there were more than 22 million (77%) employees using IT in UK” in the 2011.Telecommunication is an integral part of human lives in UK and the entire globe (Chen et. al, 2012). However, the scope of this study is to examine the motivation factors of the workers directly working in the IT and Telecommunication industry in UK. In UK, the IT and telecommunication industry generates a 9% of the annual Gross Value Added (GVA) which is an input of £81 billion of the UK economy. The GVA contributed by IT and telecom per person is almost double the productivity of the average UK worker (House of Commons: Trade and Industry Committee, 2005). Researchers have indicated that the sector has potential for growth and will triple its employees in the next decade. However, the focus will be on skilled employees with vision and drive because the industry encompasses a mammon of creative, technical and commercial roles that operates together and form the information era. The industry is experiencing challenges of acquiring employees with industry related skills and these calls for creative and technology-related training (Xueliang & Wang, 2010). Due to the dynamic nature of IT and telecommunication industry employees require different technical skills in order to deliver quality product and services to the consumers and achieve better performance and individual growth. Employee motivation in Telecommunication industry in UK Employee motivation plays a significant role in the rapidly changing workplace environment. It determines the survival of the organization and contributes to organizational productivity. The managers should understand various employee motivating factors within the context of their duties in the organization (Ahlstrom & Bruton, 2009). However, the employee motivators’ change from time to time hence managers should be aware of these changes and vary factors to ensure the employee motivation. For example, although financial incentives are one the oldest and common employee motivator, employees becomes less motivating by money incentives as they accumulate wealth with time (Chen et. al, 2012). Furthermore, as individuals grow they require different motivating factors The information about employee motivation can help the organization managers to understand and satisfy the needs of the employees and influence performance in the organization towards achievement of specific goals (Ahlstrom & Bruton, 2009). For example, according to the Maslow theory managers should meet the employees needs from the lowest level as they advance towards the higher level needs in the hierarchy. However, just as aforementioned the employees needs vary according to the organization and nature of individual employees. The managers have the responsibility to adjust the work environment in order to enable the employees develop their full potential. Most employees yearn for work environment that can enable them achieve self-actualization which is the highest level of need in the Maslow’s hierarchy of needs (House of Commons: Trade and Industry Committee, 2005). Therefore, managers should focus on creating healthy work environment in order to offer workers with an opportunity to become self-actualized. The employee motivation theory is based on the premise that humans have intrinsic need to advance at a personal level (Malik et al., 2011). There is an inherent perception that happier employees are more productive in the organization while unhappy employees are less productive in the same work environment. Although some factors are prominent in particular industries there are other factors that are external to the industry and have effects on employee motivation. Telecommunication industry has experienced tremendous growth in UK, China and the rest of the world over the last fifteen years (Mackay, 2010). Its importance is experienced in all aspects of human lives and has transformed the way businesses are operated, the human interaction, etc. Organizations have recognized the value of employees in the organizations and the importance of hiring and retaining the right employees in the organization. Customer satisfaction is reflected in their work performance. In the telecommunication industry employee motivation is very essential in order to ensure delivery of quality services to the customers (Xueliang & Wang, 2010). In addition, the internal and external business environment has much impact on the employee motivation hence the operations and performance of the business. The external factors the influence employees motivation include company image, working conditions, status, job security, social environment, and promotion of workers. On the other hand, internal factors that influence employee motivation are those related to individual responsibility in the organization (Naylor et. al, 2013). The internal employee motivation factors are essential because they determine the employee’s career development. Poor wages, limited programs, job insecurity, high rate of job transfer, lack of proportionality between individual responsibilities and their qualifications, lack of emergence of new business opportunities, etc. are some of the employees demotivating factors in organizations. This is because employees become less productive in case the career does not offer the opportunity for future growth or in case they perceive that the job does not offer adequate compensation for their input (Mackay, 2010). Although the motivating and demotivating factors depends on individual employees and the industry they work in, studies have shown that particular factors have related consequences to a group of employees hence they contribute significantly to the individual employee performance (Mackay, 2010). Some of the employees motivating factors are organization-based such as being contented with one’s job, security, commitment, and output. The studies have established that employees can be motivated by various factors. However, the most intriguing fact was that most employees are motivated by other factors rather than financial factors. In other words, financial factors have less significance for employees’ motivation compared to non-financial factors (Malik et al., 2011). The employee motivation factors include the nature of working environment, development, and growth, the nature of industry and matter, supervisor relations, employee recognition, as well as pay and benefits. Various industries and firms have their ways of motivating employees, but the approaches used have varying impacts on the employee performance. The factors that motivate workers in UK include: Training and development Due to changing nature of technology in the telecommunication industry the employers provide an opportunity for education and development to the staff. The purpose of training is to equip the employees with adequate knowledge and skills in order to achieve the necessary competence in the industry (House of Commons: Trade and Industry Committee, 2005). Telecommunication firms spend huge amount of money on research and development, and the knowledge is spread to the employees through employee training and development. Having appropriate skills enable employees to achieve self-esteem and organizational performance. Through employee training, managers can create understanding among the staff members, improve communication and promote self-esteem. Organizations offer employees with adequate training in the hope that they will utilize the acquired knowledge and skills to enhance the performance of the organization (Ahlstrom & Bruton, 2009). There is a prediction that the IT industry will require more than 500,000 employees in the next five years. Industry has various opportunities for the workers. The workers should have adequate competence in order to remain competitive in this highly dynamic market. Therefore, continuous training is an essential element in the IT and telecoms industry in UK enables employees to achieve continuous development and acquires relevant skills and technology (House of Commons: Trade and Industry Committee, 2005). This industry is highly committed to continuous employees’ development, and most of the Information Communication Technology ICT organizations offer appropriate training to the employees. Teamwork The firms in the telecommunication industry promote teamwork in the organization in order to achieve better performance (Chen et. al, 2012). Although the western culture encourages, individual performance business managers are aware of the importance of teamwork in supporting employees’ performance. The managers set goals for various groups in order to improve performance as a group. However, in the groups individuals are interested in what they can achieve as individuals and not what other members in the group can achieve. Salaries and other financial benefits Financial incentives play a significant role in employee motivation irrespective of the industry or firm. Employees feel appreciated whenever they get financial incentives for their performance. However, the monetary incentives work well as the young employees while for the older generation financial incentives have little significance in their motivation (Malik et al., 2011). The workers in the telecommunication industry in UK are paid attractive salaries and other financial incentives. The UK telecommunication industry is one of the most competent around the globe. It attracts skilled and innovative employees, and that has made the industry very competitive. Job security Job security is one of the most important employee motivating factors in the telecommunication industry. Employees prefer working in an industry where they have an assurance of job security and have little threats of losing jobs. In UK, job security is not a major threat because the economy is one of the most stable economies across the globe (Chen et. al, 2012). However, the telecommunication industry is not very stable due to rapid changes that have occurred in the recent past that led to retrenchment of some employees (House of Commons: Trade and Industry Committee, 2005). The employees have to keep abreast of the changing technology in order to avoid becoming redundant. Most employees are worried about the security of their jobs. There have been retrenchments in the telecommunication industry in the recent past. According to Maslow theory, job maintenance is a security issue, and workers become demotivated in case of job insecurity (Naylor et. al, 2013). Furthermore, according to Hertzberg job security can be classified as the hygiene factor. Managers must assure the employees of job security by ensuring they communicate any changes that occur in the industry. Also, through constant employee training and development the industry provides an assurance to the workers of continuous improvement in performance hence stable jobs Ahlstrom & Bruton, 2009, p. 235). The managers should ensure there is adequate communication with employees in order to assure them of job security. Without job security employees get dissatisfied with their jobs. In the telecommunication industry employees have a fear for their job security because of the constantly changing technology that renders their skills obsolete. Recognition Employee recognition at the workplace is a good motivating factor especially in fast growing industry such as telecommunication. The recognition of individual performance depicts personal contribution to the organization and creates a sense of belonging and advancement (Kapoor et. al, 2013). However, to the employees, recognition has varying effects across age groups and gender. For example, female employees are thrilled by the recognition while their male counterparts have little interest in recognition. Managers use recognition as a motivating factor in the telecommunication industry to motivate workers and in appreciation of diversity in the workforce. Opportunities for career growth and development In the telecommunication industry, the opportunity for career growth and development has a significant effect on employee motivation. The managers achieve this by offering various training programs to the employees to augment growth opportunities (Naylor et al., 2013). Career growth leads to improvement of organizations performance. It helps the employees to satisfy esteem and self-actualization needs discussed in the Maslow’s need hierarchy theory. It makes employees satisfied and highly motivated. This perception also collates with Hertzberg’s two-factor theory which stipulates that the employee motivation is determined by the degree of motivators present in a job. Good working environment Good working environment is also a significant employee motivating factor. According to Hertzberg theory, unstable working environment can demotivate the workers while stable environment is a motivating factor (Manish, 2012).Safe and secure environment motivates employees and improves their productivity. In UK, the business climate is very stable and among the best in the globe. Therefore, employees are motivated to work in such environment where they can achieve personal growth and business stability. Challenging and interesting tasks Employees want to be recognized at their workplace and enjoy individual achievement. In Maslow’s hierarchy of needs challenging and interesting task enable employees to satisfy the need of self-actualization. Therefore, the management should provide employees with challenging task in order to satisfy self-actualization need (House of Commons: Trade and Industry Committee, 2005). Such tasks should propel employee advancement, inventiveness and a sense of achievement and increased responsibility. In the telecommunication industry, employees have to renew their innovations constantly because the nature of their job constantly requires changing technology. It is a very competitive industry, and employees have to engage in challenging tasks which are unique and stimulating (Manish, 2012, p. 213). This motivates employees and result to increased motivation and job satisfaction. Giving employees challenging, and exciting task drives them because it fulfills the McClelland needs for achievement, power and affiliation. Team spirit among the workers and relationship with supervisors In UK, individual achievement is of prime importance to the workers than group achievement. The workers strive to accumulate wealth and achieve personal growth (OECD, 2005). Teamwork is a motivating factor among the workers although individuals focus on personal realization in the group. It gives unique competitive environment where they can realize full potential of their performance. Also, good employee relationship between employees and their supervisors can motivate workers and lead to improved organizational performance. Organization Environment The forces that can influence the employee performance are known as organizational environment. These are both internal and external environment, and they make up threats and opportunities in an organization. The group environment influences how the roles, authorities and tasks of the duties are delegated, how they are organized and matched in the organization and how the information flows through the management levels (Ahlstrom & Bruton, 2009). This structure depends on the goals of the management and the approaches they put in place to achieve those objectives. The organization environment is determined by the political, socio-cultural, technological, administrative and stakeholder factors. Various organizations are set in specific environment to which it is intricately related. According to Malik et. al, 2011, p. 39), “this environment provides multiple contexts that affect the organization and its performance, what it produces and how it operates.” B. Employee Motivation Factors in the Telecommunication Industry in China In China, the telecommunication industry is controlled by three state-operated businesses. These dominating businesses include China Unicom, China Mobile, and China Telecom. The formation of these businesses was in accordance with the directive of Ministry of Information Industry (MII), Ministry of Finance, and Nationals Development and Reform Commissions (NDRC) restructuring strategies launched in 2008 (Gallo, 2011). After that directive the three companies obtained 3G licenses to carry out businesses in mobile and fixed-line businesses in China. The rate of labour turnover in China is quite high especially among the generation born after 1980s. These people understand the doctrines of Confucianism although they are no longer bound to those doctrines (Gallo, 2011). They were brought up in affluent families and spent most of their time helping the needy and rebuilding the nation. However, since they are now joining the labour market they have adifferent perception about work compared to the older generation. Just as mentioned earlier in this document various employees require different forms of motivations. The managers should use different approaches to motivate the workers depending on individual needs and perceptions. In the telecommunication industry, the changing technology has attracted younger generation because they are more innovative and technologically advanced than the older generation (Kapoor et. al, 2013). In this regard, managers find it hard to determine the best motivating factors to attract and retain best employees for increased productivity. Poor working morale, inadequate compensation, job attitudes, low compensation, etc. are some of the main challenges facing telecommunication industry as far as employee motivation is concerned. The specific factors that motivate employees include: Base pay The firms operating in the telecommunication industry are offering higher salary to their employees than the average labour market. Salary plays acritical role in employee motivation both in attracting and retaining qualified workers (Cornell University, 2007). This enables the firms to minimize the rate of employee turnover and reduce the cost of hiring new workers. In China, companies such as Huawei are offering their graduate employees’ very high salaries in order to attract qualified workers and enable the organization competes effectively with the other competitors in the market. However, the pay reflects the employees’ performance (Gallo, 2011). They focus on establishing self-motivated and self-improving mechanism by setting goals for the employees, coaching them, appraisal and communication with the employees in order to help them increase their performance and competence. However, since employees earnings should be commensurate with their performance. The workers who fail to achieve their performance target are punished through salary deduction or by being laid-off in case of poor performance. The use of financial motivation in China is currently acceptable unlike in the past when the Chinese culture considered wealth as evil hence people worked to help each other as opposed to individual development (Gallo, 2011). Training and Development The telecommunication industry is experiencing rapid changes due to changing technology. Through research and development firms are striving to outperform their rivals in terms of performance and gain bigger market share internally and in the global market (Manish, 2012). Therefore, the Chinese firms are offering intensive employee training and development in order to achieve to improve their competence in the industry. The companies have established various employee training programs which employees can join in order to improve their skills. Flexible working time As earlier discussed, the post-1980s generation has joined the labour force in China. This generation of more liberal and prefer flexible working time (Xueliang and Wang, 2010). They prefer working during the optimal hours instead of working during the time fixed by the management. The managers in the telecommunication industry dealing with this generation use various tactics to enhance motivation of the employees and performance of the organization. The managers are motivating employees in the telecommunication industry by focusing on what employees can deliver rather than how they will deliver the expectations (Manish, 2012). They achieve this by setting flexible working time without emphasis on beginning the time or closing time. The employees can report to work late or leave early so long as they can meet the organizational goals (Meijers & Welfens, 2008). In other instances, employees are given the opportunity to telecommute in order to achieve more flexible working time. Teamwork According to Chinese culture, workers are more interested in group performance rather than individual achievement. Instead of an employee taking pride in what they able to deliver above other workers, they prefer having colleagues who are equally competent with their work in order to ensure the job performance is interesting and easy for those involved (Gallo, 2011, p. 149). Therefore, managers achieve employee motivation by employing workers with equal competence to perform a similar task in order to achieve competent performance as a group as opposed to individual performance. Job Satisfaction According to the Maslow’s hierarchy of needs, employees get motivated by performing tasks or jobs that offer satisfaction to their needs (Manish, 2012). However, in his theory Maslow argues that employees should be able to satisfy their basic needs before they start to pursue needs to the higher levels of hierarchy. In China, the perception of job satisfaction may differ from this theory because workers are focused on collective achievement rather than individual performance (Gallo, 2011). They have an inclination for group devotion and national unity. Therefore, managers should provide motivating factors that can address the needs of the groups and national concerns before they start pursuing self-actualization through continuity of service. Job Security In China, most employees have no worry about job security. They leave jobs frequently within two years of employment to look for greener pastures in other industries. However, by providing employees with competent and relevant skills managers enable workers to maintain their jobs and improve performance of the industry through individual productivity (Meijers & Welfens, 2008). Organization Environment Chinese economy is rapidly growing and is favorable for business. It offers the opportunity for growth and steady government controls (Meijers & Welfens, 2008). This is motivating to employees because they can enjoy good relations and favorable government policies for continued business operations. The motivating factors can be classified as either intrinsic or extrinsic Comparison between Employee Motivations in UK vs. China in Telecommunication Industry Factors UK China Opportunities for career growth and development Job security Recognition Read More