Employee Motivation in Service Sector - Term Paper Example

Employee motivation in service sector Introduction In order to provide appropriate guidance to the new corporations of today’s world, many researchers have studied the role of leadership and motivational theories in increasing the motivation level of employees. Leading employees in the right manner is equally important as motivating employees in a continuous mode so that the blend of both these elements can result in successful performance from employees and allow the organisation to become successful. Motivating employees on a constant note is important for organisations so that the desired results can be attained (Eyal & Ruth, 2011; Kakkos & Trivellas, 2011). This paper discusses employee motivation in the service sector, leadership and the application of motivation theories. Leadership Since employees are among the valuable assets of a company, it is vital for the management team to keep them motivated by identifying the factors that are considered to be of importance to them and that will boost their morale to enhance their performance. According to Hetland et al. (2011), both leadership and motivation of an employee are key elements for enhancing the contribution level of each individual. The contribution of each employee needs to be valued by the organisation at all times (Anderfuhren-Biget et al., 2010). Leadership is defined as the ability of enlisting, mobilising and motivating others to utilise and employ their intellectual abilities and resources for a particular cause or goal (Yukl, 2006). This concept is the basic foundation of transformational or charismatic leadership as the leaders have to develop their personalities in ways that will motivate their subordinates to make worthwhile contribution in the organisation’s efficient business activities (Jandaghi et al, 2009). According to the organisational culture and nature of the firm, the appropriate leadership style should be implemented by the management. Many researchers have compared various leadership styles and theories in the service sector and found that transformational leadership is preferred by leaders rather than transactional leadership style (Anderfuhren-Biget et al., 2010; Kark & Van Dijk, 2007). Leadership theories and styles Since leadership is one of the important areas of concern for most of the organisations, a wide range of studies have been conducted to understand the part of leadership styles and theories in creating a motivated workforce. As a result of these studies, the main leadership theories that have been built in the field of management are broadly classified as traits theories, behavioural theories, great man theories, situational theories, participative theories, management theories and relationship theories (Dull, 2009). However, each of these theories has been developed to incorporate various leadership styles that provide details about the personality traits of the leader. The traits possessed by the leader are also an important area of concern while leading the organisation and the employees. The most popular leadership styles are transformational leadership, transactional leadership, laissez-faire leadership, situational leadership, autocratic leadership, participative leadership, task-oriented leadership, charismatic leadership and bureaucratic leadership (Yulk, 2006). The transformational and charismatic leadership styles have been explored by researchers as both of these styles have proven to be beneficial for an organisation’s long-term success. These styles have allowed organisations to achieve their goals and allowed them to attain the level of success desired by the organisation (Den Hartog, De Hoogh & Keegan , 2007); they are similar in various aspects and that is why most of the companies are using a perfect blend of their features to create a positive and motivating work environment (Khatir, Templer & Budhwar, 2012 ). Implementing business practices that have proven to be successful for other organisations can prove to be a good decision as the results of such practices can be analysed and then accordingly decisions can be taken. There are five key features of transformational and charismatic leadership styles that give them a distinctive place in the leadership field of study i.e. the leader’s attitude and behaviour is idealised by the subordinates which make him/her more respectable and trustworthy; the leader motivates the subordinates to work well and assist them in achieving the desired goals; the subordinate’s beliefs and values are identified and the leader helps him/her in developing the required intellectual capabilities; every individual is given special attention and provided various learning opportunities; and finally, charismatic personality which means that the leader shares the vision with the subordinates and give them the autonomy of making final decisions (Khatir, Templer & Budhwar, 2012). The only drawbacks of these leaderships styles is that employees tend to misuse the power given to them by focusing their activities only on personal benefits, employees are not provided the right working environment for boosting their motivation level and the leader does not demonstrate ethical and professional attitude which misguides the subordinates (Eyal & Ruth, 2011). Professional attitudes should be demonstrated by leaders so that they are able to set a good example for their subordinates. However, most of the leaders ensure that they communicate the exact message via their attitude so that the employees are encouraged to increase their range of efforts while undertaking their tasks. Proper communication of aims and objectives allows no ambiguity to emerge of any sort and allows employees to complete their tasks in a confident manner. Leadership and service sector In the service sector, charismatic leadership is found to be the most effective option as it assists the leaders in boosting the morale of their subordinates that induces them to enhance their contribution level. The banking and hospitality industries have reported that when managers demonstrate their trust in their subordinates and give them leverage of making final decisions there is high probability that the employees’ enthusiasm level is of top-quality. Empowering employees in certain tasks can prove to be highly beneficial as this would allow the employees to feel confident about them and also boost their morale and motivation. Since ethics is vital for banks, the leaders have to follow an ethical and professional code of conduct by ensuring integrity, fairness and honesty in all of the business transactions (Jandaghi et al., 2007; Liu, 2007). Being an ethical professional is yet another important attribute that should be possessed by all leaders so that they can act as role models for the future leaders. A charismatic leader can motivate the employees to a great extent in the service sector as he/she has complete understanding about the factors that will make a positive impact on their employees. Employees are directly involved in dealing with the end clients of the organisation hence leaders need to ensure that they handle employees well so that employees give in their exemplary performance while dealing with the customers in the service sector. In most of the service organisations such as restaurants, hotels, travel agencies and insurance companies even in the public sector, the vision of the business is shared with the employees and they are provided appropriate tools and materials to make worthwhile additions in the performance of the business operations (Den Hartog, De Hoogh & Keegan, 2007, Taylor, 2008). Motivation Motivation is described as the factors that induce an individual to complete the task in an extraordinary way. One of the key components of enhanced performance of an organisation is a highly motivated and efficient workforce. When employees are motivated, only then they are willing to make precious additions in the business. Motivated employees tend to be creative and innovative and they can come up with extraordinary ideas and suggestions that may allow the business to reap high profits and become successful in the business market (Kakkos & Trivellas, 2011). In order to augment the motivation level of employees, it is vital for business entities to offer them rewards which will show that their efforts are highly appreciated by the company’s management team (Anderfuhren-Biget et al., 2010). By rewarding employees on their performance, the chances of better performance increases as rewards are strong motivators for employees, rewards can be both monetary and non monetary. Motivational theories Since every individual has different set of needs when working on a job, there are various factors that can influence the person to do outstanding work. For some employees appreciation may be an important reward and for other bonuses may be an important reward. In order to heighten the motivation level of employees, several researchers developed diverse theories to provide guidance to the organisations in incorporating necessary elements within the business premises for motivating them and enhancing their working as well (Hetland et al., 2011). Almost all of the motivational theories have been developed after years of study but they have one thing in common that the organisations need to identify an individual’s motivating factors and develop opportunities for each employee that will boost the motivation level and ultimately make beneficial contribution towards the company’s exceptionally high performance. The well-known motivational theories are Taylor’s theory, Maslow’s hierarchy of needs, McClelland theory of accomplishment, McGregor Theory X and Theory Y, Herzberg’s Two-factor theory, Vroom’s expectancy theory and many more (Yulk, 2006). Among all the aforementioned theories, McGregor Theory X and Theory Y and Vroom’s expectancy theory have received huge amount of appreciation by the experts of the field especially in the service sector (Kark & Van Dijk, 2007). Motivation and service sector According to McGregor Theory X and Theory Y and Vroom’s expectancy theory, the manager has to identify the motivating factors of each employee and then provide them those rewards after they accomplish the targeted goals so that their morale gets boosted (Kakkos & Trivellas, 2011). Rewarding employees according to what they prefer may also be a strategic move by the leaders of the organisation. It is highlighted in both theories that when employees will believe that they will be rewarded for their exceptional work, they will be motivated to go an extra mile to achieve their objective and enjoy the sensation of being a winner. The leaders have to include these factors in the work environment so that there is positivity among the employees and they view themselves as an important part of the organisation (Dull, 2009). Employees prosper highly when they have the feeling that the organisation values their services highly and such employees may prove to be a loyal and dedicated worker for the organisation. In the service sector, rewards at the end of accomplishment of tasks are highly important. For instance, the employees in a bank are motivated by the commission that is given to them for exceeding their target level or they are given their share of profits when sales level are more than expected or the manager appreciates the employee by praising him/her in front of the entire workforce. Hence, there are various ways in which leaders can motivate them; they have to just look into the key elements that can motivate their subordinates for long duration (Anderfuhren-Biget et al., 2010; Taylor, 2008). Appreciation and recognition are non monetary rewards and may prove to be extremely powerful than certain monetary rewards. Conclusion Employee motivation is composed of various factors and leadership is one of its integral parts. Although charismatic leadership is important in the service organisations but varying aspects of the motivational theories need to be implemented as well to create an efficient and highly conducive working environment. A motivated working environment allows the talent and expertness of employees to come out of this personalities and this is reflected in their performances. In order to motivate the employees, the right motivating factors should be in place and they should be employed effectively within the work environment. Career progression of employees within the organisation is important and this can be done via appreciating the employees and ensuring that the good performances of the employees will allow them to move up the ladder in their career in the organisation. When the employees will realise that their leaders are true to their words and motivate them in a highly effective manner, they will be willing to put extra efforts within their performance of job roles. The employees would build upon the image of the leader as a reliable and credible leader who does what is said and does it the right way. Therefore, in service sector, both charismatic leadership and motivational theories play an important role in creating a highly motivated and competent workforce. References Anderfuhren-Biget, S., Varone, F., Giauque, D. and Ritz, A., 2010. Motivating Employees of the Public Sector: Does Public Service Motivation Matter? International Public Management Journal, 13(3), pp. 213-246. Den Hartog, D.N., De Hoogh, A.H.B. and Keegan, A.E., 2007. The interactive effects of belongingness and charisma on helping and compliance. Journal of Applied Psychology, 92(4), pp. 1131-1139. Dull, M., 2009. Results-model reform leadership: Questions of credible commitment. Journal of Public Administration Research and Theory, (19)2, pp. 255-284. Eyal, O. and Ruth, G., 2011. Principals’ leadership and teachers' motivation: Self-determination theory analysis. Journal of Educational Administration, 49(3), pp. 256-275. Hetland, H., Hetland, J., Andreassen, C.S., Pallesen, S. and Notelaers, G., 2011. 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