Progressive HRM Strategy Enhances Company's Productivity - Thesis Example

Table of Contents Introduction 2 Target 2 Significance 3 Background 3 Definition 3 Human Relations Approach 4 OBJECTIVES 5 LITERATURE REVIEW 6 Low Cost Initiatives 6 Multiple-Step Process 7 Individualism vs. Collective Policies 8 The Cane Model 9 METHODOLOGY 9 Secondary Research 10 Primary Research 10 PILOT STUDY 11 ETHICAL CONSIDERATIONS 12 Data Analysis 12 LIMITATIONS OF THE STUDY 12 TIMESCALE 12 Conclusion 13 REFERENCES 14 Introduction Contemporary organisations always strive to ensure the effectiveness of their production process to the satisfaction of their customers and shareholders. This is entirely dependent on the output of all their employees. Unfortunately, many workers continuously underperform or merely generate just the expected output while avoiding hard work. This has mainly been attributed to poor human resource practices hence leading to lack of incentives in the workplace motivating the workers. Effective human resource management (HRM) is epitomized by an inspired workforce serving as the medium for growth. Motivation is acknowledged as the catalyst for enhanced production; however solely lacks within many firms due to ineffective people management and minimal inducements for the staff coupled with many discouraging practices that further de-motivate them (Sorensen, 2002). One of the main tasks of HRM is assisting an employee through the life cycles processes within the organisation described as HIAR or Hire, Inspire, Admire, and Retire. The manager must be less ‘manager’ and more ‘leader’, hence inspires and motivates those entrusted to lead (University of California, 2008). Clifton and Harter (2003) allege that an organization’s success is largely a function of an employee’s contentment. Patterson et al (2004), nevertheless assert that motivating individuals in organisations is principally a function of an individual’s character and the environment resident. Conventional studies maintain that well crafted organizational traditions lead to progressive development of a company’s performance index by facilitating internal behavioural uniformity (Sorensen, 2002). Target This research will be conducted on Tesco Plc employees at its UK superstores in view of the fact that the firm has had issues with high turnovers and staff discontent. The research methodology to be applied will be a descriptive survey design. According to Tella (2007, Pg. 8), descriptive analysis gathers comprehensive and accurate data that express a veritable fact. Significance The significance of motivation in organisations cannot be understated as inspired employees can critically assist in enhancing production while the reverse status can hurt the firm’s operations. The organisation’s management is therefore obliged to consider the welfare of its staff to avoid resultant high turnovers and poor production effort that all lead to undue losses to the firm. Former Chrysler Inc. CEO Lee Iacocca asserted that,’ management is nothing more than motivating other people’ (University of California, 2008). This research is particularly aimed at discerning the importance of non-cash incentives as motivational factors in the organization as well as deducing the most significant inducement issue. BACKGROUND Definition Moorhead and Griffin (1999) have defined motivation as the series of incentives that arouse individuals to undertake a certain action rather than other different deeds. Al-Alawi (2005), however describes motivation as ‘the inner force that drives individuals to accomplish personal and organizational goals’ (Pg. 225). Luthan in Tella et al. (2007) defines motivation as ‘a process that starts with a physiological deficiency or need that activates behaviour or a drive that is aimed at a goal incentive ‘thus they equate motivation with, ‘needs, drives, and incentives’ (Pg. 2). Nevertheless, most studies on motivation are based on need theories including Maslow hierarchy of needs paradigm and the Existence Relatedness and Growth Theory (ERG). Existence needs are the intrinsic needs for personal survival, relatedness needs is the relation to other persons while growth needs are for personal development (Moorhead and Griffin, 1999, Pg.226). Human Relations Approach Historically, the nature of work has shifted from manufacturing to service. This has led to a gradual shift from the traditional functional role of lifetime workers in the industrial bureaucracy epitomized in Fredrick Taylor scientific model to contemporary employees who are self-motivated and technologically expedient insightful employees. The Hawthorne Studies conducted at the Hawthorne Works of the Western Electric Company in Chicago from 1924 to 1932 led by Elton Mayo introduced the Human Relations Approach to management. This approach spawned the ideals of Douglas McGregor’s Theory X and Y; Frederick Herzberg’s dual factor Motivation-Hygiene Model of Management; Abraham Maslow’s Hierarchy of Needs model (theory z); and John Stacey Adam (1962) Equity Theory. These theories emphasised the importance of taking a more humanistic approach to organisational development rather than a scientific or mechanical approach that dehumanised people to the level of machines within a firm. Maslow’s assertion of taking care of the lower basic needs sequent to attaining higher levels of needs and Herzberg’s dual model motivational-hygienic factors all illustrate the factors that motivate/satisfies frustrated employees as opposed to the dissatisfying hygienic factors (negative motivational forces within the firm) (Goffee et al, 2007); ); (Dickson, 1973); (Carrell & Dittrich, 1978). In the social needs (belongingness and love) category, Maslow argued that when the physical and safety were fulfilled, social needs become the primary motivators. The fourth category, of ego or esteem needs, an individual requires to develop self-assurance or self-esteem. In the last category of self- actualizing, Maslow argued that with the presumption that all the other needs in the hierarchy were fulfilled; an individual becomes restless and seeks higher achievements from the basic needs. The theory explains the motivation and needs of workers in fulfilling their basic needs in order to attain higher levels of motivation (Lindner, 1998). Figure 1: Maslow’s Hierarchy of Needs Source: FRONTERA (2007) Pg.7 OBJECTIVES The study aims at establishing how managers influence employee motivation, job performance, and wellbeing in organizations. Specifically, this research concerns the workings and effects of how managers support the sense of autonomy, competence and relatedness of employees.  The study will be based and sampled on employees of Tesco PLc. superstores in all the major departments in their UK operations. LITERATURE REVIEW According to a Watson-Wyatt Study (2000) on US companies, quoted in Dattner and Rothenberg (2003), ‘people are the only sustainable source of competitive advantage’ (Pg.3). They also reported that many employees (48 percent) are also actively prospecting for fresh jobs and a further 64 percent will embark on serious job search once the labour market improved. Kundu, and Malhan (2007, Pg.472) in study on multinational insurance companies resident in India deduced that a firm’s competitive advantage can be enhanced through effective human resources management (HRM) practices. This include motivational practices like training, socialization of staff, equitable performance appraisals, competitive compensation and other modern HR practices. Having flexible employee benefit plans motivates employees who are then likely to be more enthusiastic in their workplace (White and Becker, 1980, Pg.37). The solution to realizing enhanced and continued development is to be found the motivation of workers and the attainment of a pledge to and mutual objectives of the company’s outlook (Bury MBC, 2003). Hall (2009, Pg.10) asserts that since human resource function consumes most of the organization’s budget outlay, there is an obligation for strategic management review and analysis of the critical issues affecting the workforce to avoid unnecessary waste of resource as employees either leave the firm or are negligent in their duties. Low Cost Initiatives The US Centre for the Study of Social Policy Report (2002) has emphasised that ‘low cost’ initiatives like ‘being valued’ are more powerful motivational factors than ‘cash benefits or even working conditions’ (Pg. 23). Some of the recommended methods include worker empowerment programs; reducing workload and job tensions; paid educational leave; graduated salary enhancements or graduated bonus system for workers; longevity pay and signing bonuses for difficult assignments. Goffee et al (2007) stresses that an efficient HRM administration; demand a thorough consideration of incentives, work arrangement, recompense schemes, and group demands. As part of strategic planning and managing people. Fleming (2006, Pg.47) however argues that a more devolved HRM approach is more effective in enhancing employee functions as a decentralised function will enhance rapid implementation of requisite changes for the employees hence motivate them better while simultaneously cutting tremendously on expenditure within the organisation. Wright and Boswell (2002, Pg. 15) have asserted that a multi-dimensional approach to HRM is more appropriate since a singular focus might omit critical issues that need to be addressed to motivate employees in an organisation. These also include hard and soft approaches that enhance a greater commitment by the management on the welfare of the company thus entrenching royalty by the workers. Organisations that combine tough management in HRM with consideration to the significance of collective investment – the edifice of links and grouping within the corporation were more likely to perform better than those having loose associations (Stiles and Trevor, 2006, Pg.4). Multiple-Step Process Though most companies recognize that the importance of the workforce for the organisation to succeed, motivating the employees within the firm entails greater perspicacity by the executive. Lindner (1998) advocates for a blend of systematic bundling of benefits, including career enhancement, progression, internal and external stipends, and non-financial rewards. Gomez-Mejia, el at (2008) describes motivating employees as a multiple-step process a manager undertakes towards achieving the desired objective. These are voluntary choices and cannot be enforced though may be inspired by the employee’s executive by properly infused performance management systems. The lack of a positive attitude has been attributed to generating negative emotions within the organizations, leading to employees becoming de-motivated hence causing massive absenteeism and illnesses that negatively affect including many lost working hours and medical insurance expense (Kundu and Malhan, 2007). The University of Colorado (2008) HR Guide to Motivating Employees emphasize that organization’s HRM must distinguish that human beings differ only in those 'intrinsic' factor(s), which drive each individual; hence, all persons are the same as the same intrinsic features are fundamental to all. This is especially true in the principle factors that characterize contentment: achievement, appreciation, appealing labour, liability, progression and development (CU-Boulder, 2008). It is therefore important to note that an employee’s job satisfaction is not a guarantee to amicable relations with the organization. Success for success sake is no foundation for an individual’s motivation - an individual’s quality of life must benefit too (McNamara, 2008). Individualism vs. Collective Policies The three main obstacles to a team’s fulfilment and triumph are change, lack of control and mistrust (Flores, 2003). Silva (1998) writing for the International Labour Organisation (ILO) contended that, ‘managing people in a way so as to motivate them to be productive is one important objective of human resource management (HRM)’ (pg. 8). Storey, (1991) observed that ‘the existence of policies and practices designed to realize the latent potential of the workforce at all levels becomes the litmus test of an organization's orientation’ (pg. 10). Silva (1998) therefore observed that, ‘a discernible trend in management is a greater individualisation of the employer-employee relationship, implying less emphasis on collective, and more emphasis on individual relations’ (Pg. 17). The Excel Team Development (2008) outlines seven strategies sufficient in managing staff can motivate employees: Constructive reinforcement / lofty outlook imparted on employees Competent control and retribution for your actions Fair treatment of all employees Rewarding employees requirements Clear employee objectives at workplace Reorganization of tasks to suit capabilities Employees rewarded according to their performance The Cane Model Motivating employees by a firm’s management can also be developed by evolving incentive strategies. However many organizations often hasten to implement undeveloped expensive workplace methods that eventually fail to achieve their intended targets while leaving employees even more dissatisfied. The CANE (Commitment and Necessary Effort) model recommends two stages in the implementation of motivation schemes: determining a goal to pursue; and the effort required to achieve the goal. The model is derived from the human performance system advocated by Stolovitch and Keeps (1992) who proposed a practical system that is ‘specific and measurable’ to achieve business or organizational goals. This was after their estimation of the benefit of training in corporations as generating only 12 percent of their expenditure (Clark, 1999). METHODOLOGY The study will encompass both quantitative and qualitative survey designs to analyse the data collected. Tashakkori and Teddlie’s (2004, Pg. 2) have stipulated that a dual method of combining quantitative and qualitative methods in research design is more comprehensive and analytical as it embraces all categories in addition to deducing formerly undecipherable issues. The following questions based on Tella et al (2007, Pg.8) will be used to guide the survey study and help in designing the interview questions and the questionnaires: What is the connection relating to job motivation, satisfaction, and corporation’s dedication to Tesco’s employees? What is the discrepancy involving the job motivation of skilled and non-skilled Tesco staff? What is the divergence in the employment satisfaction of the Tesco workers in the head office and branch networks? What is difference between long-term and new employees commitment at Tesco Plc? The methodology to be applied for the study will use both secondary and primary research methods. Secondary Research A research and examination of the available literature on the subject matter, including pertinent journals, manuscripts and various publications online will be conducted. The main area of focus will be a review of the company’s website including its reports and any material on HR functions Primary Research The primary research encompassed carrying out interviews with specific managers, staff; administering questionnaires, analysis of the information gathered and finally discussing the results with the company’s HR administration. Personal interviews were conducted to be better acquainted with the company operations, staff and more particularly observing the existing levels of motivation. Subsequent to a few initial probing interviews, i constructed an interview programme for the consequent interviews. Diverse employees were interviewed in all departments to have a widespread viewpoint on the organisation. The categories to be examined will be as per Kaye and Jordan-Evans (2008) book, Love ‘Em or Lose ‘Em: Getting Good People to Stay, 18 reasons why employees remain loyal to an organisation. These are: The questions will be set on a variable five-point Likert scale ranging from (1) “strongly disagree” to (5) “strongly agree”. The target population will be a sample of 200 respondents drawn from the various branches, departments and hierarchical structure of the firm. An authorisation of the study will need to be applied from the management as well as link to the email of sampled staff thus allowing sending of online data. However, personalised interviews will be conducted through appointments with the selected staff or via phoning the respondents. PILOT STUDY A pilot study will be necessary to deduce any glaring mistakes in the questionnaire design and hence can guide in adding the necessary amendments. This study can be conducted on one branch of the firm before embarking on the main research study. ETHICAL CONSIDERATIONS Ethical considerations including disclosure of personal information will be carefully considered to avoid any possible repercussions on the concerned staff, thus no third party or employee of Tesco will access the data. Every available measure and care will be taken to ensure discretion thus encouraging candid response from the respondents who may otherwise not forthcoming with forthright answers. DATA ANALYSIS The analysis will be conducted by means of the Statistical Package for Social Sciences (SPSS) to generate data. This software is preferred due to its capacity of disseminating statistical data encompassing empirical statistics amply, which makes it one of the most suitable methods of research data analysis. LIMITATIONS OF THE STUDY The research is heavily reliant on the cooperation of Tesco Plc management who may somewhat intimidate the sampled respondents hence may not be very candid in their response. Due to the nature and extent of the firm, the research will be hampered by the logistics of gathering personal interviews particularly with the management of Tesco in far off branches. TIMESCALE The research is estimated to take a minimum period of two month and a maximum of four months to collect the required information and data analysis. The timescale can be disseminated into six stages, which encompass the initial data formulation of the screening and studying of relevant literature on the subject; design questionnaires; the pilot stage of testing the hypothesis and questionnaires; the research phase of administering the questionnaires and conducting interviews; analysis of the data collected; and the writing of the report. Timescale Illustration Source: Own Design Conclusion A progressive HRM strategy is essential to an organisation as it has a direct impact on the individuals and corporation. Although not an easy task, strategic HRM entail establishing individual motivations to conform to the firm’s vision hence generating enhanced productivity to the company. The task will necessitate getting the best from all employees whether those considered as difficult, indolent, or hyperactive to the satisfaction of all the stakeholders. The focus should be enhancing communication lines within the organisation, other employees and never ignoring their opinions and feelings as fellow human beings. Managers must therefore get involved in the lives of their workers, both personal and work related. The managers must learn to delegate duties to enhance trust while rewarding appropriately those deserving and punishing the wayward employees. This means that equity and reward are practised concurrently thus evoking loyalty and sense of belonging for all staff while admonishing favouritism nepotism prejudice and all forms of bias. References Al-Alawi, A. I. (2005). 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