Organisational Behaviour in Action - Essay Example

? Organisational Behaviour in Action Case Study of the of the Organisational Behaviour Case Study Introduction Man is a complex animal. If he is not motivated properly, his productivity suffers and so does the future of the organization he works for. That is why employee morale is a key factor in getting them to produce results. Motivation refers to the direction, amplitude and persistence of an individual’s behaviour in achieving a set goal, also depending on the worker’s knowledge, experience and understanding of what is required to achieve the goals and how to deal with obstacles in the way of performance. Similarly Mill, Bentham and Locke tried to include the principles of pleasure, pain and hedonism in describing human motivation but could not distinguish what factors accounted for differences in individual motivation. It was Douglas McGregor who pointed out that in order to achieve organizational objectives, it was better to treat workers with respect and compassion (McGregor, 1960, 12). One’s morale can suffer on account of undue pressures at work, bad supervision or the state of the economy when others are being laid off. In this paper we will try to discover how to keep the employees motivated and happy despite the dismal conditions all around them. Using Equity Theory to Motivate Employees at Bain & Company Psychologists and social scientists have developed various theories to explain how to motivate employees towards greater productivity and satisfaction in the workplace. Among these are Maslow’s Hierarchy of Needs theory, Herzberg’s Two Factor or Hygiene theory, Vroom’s Expectancy theory, J. Stacy Adams’ Equity theory and so forth. In the case cited, we have the example of Bain and Company, where the worldwide Managing Director Steve Ellis is still not afraid to hire new employees in hot growth areas despite the recessionary trends in the economy as of 2009. He has managed to placate and address employee fears of being fired by reducing their goals to achievable levels looking at the state of the economy. He is also raised the rewards for lower level and temporary employees, so that they remain motivated and happy to have a job despite the economic slowdown. The equity theory states that there should be a balance between the output or productivity of an employee on the job and the rewards given to them. If the rewards given are perceived to be less than equal, the employee becomes dissatisfied and his productivity will drop in the near future. If the rewards given to an employee are perceived to be matching the level of his efforts at work, he will be suitably satisfied and his productivity will remain at the same level in the near future. The theory also states that if we want to increase an employee’s productivity, we should reward him a little bit more than he expects for his efforts. The employee will thus be pleasantly surprised and will definitely be motivated to work harder considering the faith that management has put into him. This is what Bain and Company is trying to do with the lower level employees by reducing goals and giving more rewards at lower levels of achievement across the organization. It is also seen that when employees are made to work harder and longer hours without a commensurate rewards program, ultimately they will leave the organization when things get better in the economy. Perhaps this is the very thing that Bain and Company wants to avoid. So by rewarding employees in this fashion, staff is not only happy to come to work every day but also learn not to worry like their counterparts in other organizations who are living in fear and despair. They can produce without undue worry about tomorrow. Using Expectancy Theory to Explain Motivation in Bain & Company The case cited also mentions that Bain and Company is hiring employees in hot growth areas. Steve Ellis thinks that a downturn is the best time to hire some outstanding employees away from the competition because of economic uncertainty and layoffs adding to the fear of being out of work. These employees can be hired at lower salaries in return for a regular pay check that beats having to be unemployed and the long wait for being selected as a potential new hire at a new organization. The expectancy theory of motivation as put forward by Victor Vroom states that the productivity of employees in an organization is a product of the goals set by the enterprise and their own beliefs in their ability to achieve the set goals. In other words, if the goals are set too high or are difficult to achieve, the employees will not be motivated to achieve them. The same thing will happen if the rewards given for goal achievement are perceived to be much less than what was expected by the employee for his efforts undertaken at work. Vroom’s theory can be reduced to a formula which is as follows: Force = Valence x Expectancy. In this case force refers to the strength of a person’s motivation, valence is the strength of that person’s preference for achieving a certain outcome, and expectancy is the probability that a particular action will lead to a desired outcome. Now if a person was indifferent to whether a departmental goal was accomplished, his valence would amount to zero. Consequently he would exert no force to achieve that goal and his motivation towards achieving that particular goal would also be zero. Even in the case where he feels that a particular goal is not worthwhile to achieve or it would make no difference to his career prospects, he would definitely make no efforts and even come up with obstacles preventing the goal to be achieved. The motivation in this case would be negative. If on the other hand, he is shown how achieving that goal would contribute to the departmental and organizational objectives as well as his own rewards and career prospects, he would most likely feel positive towards achieving that goal, and his motivation level would be high. But this also depends on how management has followed through on its promises to him in the past. If these promises were false and made just so that the organizational and departmental objectives could be achieved, with no accompanying rewards at the end of it, he would be highly critical of management and decide not to exert any effort towards achieving that goal. So both expectancy and valence have an impact on the force or level of motivation exerted by the employee at any given time. In the case of Bain and Company where the employees are being motivated to achieve and they can see or find out from others the past records of rewards and appreciation given by the company, it is quite likely that the employees will be positively motivated to achieve the departmental and organizational goals of the company. Vroom’s expectancy theory (1964) also takes into account that different employees are motivated by different individual and personal needs. For example, a supervisor who has just started a new family would be motivated to be promoted to Manager if that level ensures a company provided car and higher salary that can be used to maintain his family in style and comfort. Another employee might be motivated to progress up the organization for the name and fame that it gives which would enable him to join a multinational at a good level and salary in times to come. Yet another employee would be motivated and pleased to receive a personalized parking space and the keys to the executive washroom. Lifestyle requirements and personal preferences also have an impact on how employees can be motivated and so it is the job of the manager to find out what motivates a particular employee to succeed and promise him those rewards so that the employee will be encouraged to meet the departmental and organizational goals. Equity Sensitivity theory also traces the effect of rewards structure on different individuals within a workplace. Benevolent individuals would put others first and be pleased that the organization is doing well. Entitled individuals would put themselves first and rate the rewards as ineffective or low-they would want them to be increased. On the other hand, equity sensitive individuals would tend to give the most balanced view as to the adequacy of the number and quality of rewards given by the organization (Shore, 2004, 722). Elements of Maslow’s Hierarchy of Needs Theory of Motivation evident in Bain & Company In fact we can see some glimpses of Abraham Maslow’s Hierarchy of Needs Theory evident in what is being followed by the management of Bain and Company to motivate their employees. Maslow was a psychologist who contributed one of the earliest and most well known theories of motivation in the academic world. His theory is based on the building blocks of different and varying human needs following a hierarchical structure. By catering to the needs of employees so that their food, shelter and clothing is assured, the company can reasonably expect that employees will be grateful for the employment opportunity and lack of or reduced layoffs in a recessionary environment so that they can work with comparatively less fear about what tomorrow will bring. Reducing goals to be achieved in a recessionary environment make them more realistic and achievable. Maslow is correct in assuming that unless a human being’s more urgent needs are satisfied at a basic level, he will not move on to the next level of satisfaction. Also once the basic needs of safety, security, food and shelter are met consistently, he can only then move on to higher level needs. The hierarchy of needs according to Maslow are Physiological Needs, Safety and Security Needs, Affiliation or Acceptance Needs, Esteem Needs and Self Actualization Needs. Very few people can claim to have reached the highest stage of the pyramid, or Self Actualization Needs, since this is a stage where the human being has achieved his highest possible potential (Maslow, 1954, 37) and now seeks to make life better for more unfortunate souls at lower levels of the pyramid. This fate is usually reserved for the superstars or super-achievers in any field of endeavour, be it sports or business or any other. Many of our social entrepreneurs and industrialists like Bill Gates and Warren Buffett are giving away their wealth for worldwide philanthropic efforts to improve the quality of life for mankind. Former President Clinton also leads an initiative for the supply of life saving drugs for AIDS and other terminal diseases to underdeveloped nations at reduced rates so that they get the health benefits. Luthans (2001) and Bandura (1997) also mention the role of self efficacy in motivation, while others have examined the importance of time and selection of alternative means of reaching the desired objectives. Finally, contemporary research also considers the value of teamwork and collective approaches towards the attainment of departmental and organizational goals, as has become all too common in today’s workplace. References Adams, S. J. 1963. Towards an understanding of inequity. Journal of Abnormal and Social Psychology, Volume 67, pp 422– 436. Bandura, A. 1997. Self-efficacy: The exercise of control. New York: Freeman. Kreitner, R. & Kinicki, A. 2009. ‘Companies Are Trying to Improve Employee Attitudes during the Recession’ in Organizational Behaviour, 9th ed, pp 180-181 Luthans, F. 2001. The case for positive organizational behaviour. Current Issues in Management, Volume 1, Issue 1, pp 10 –21. Maslow, A. H. 1954.Motivation and personality. New York: Harper & Row. Shore, T. 2004. Equity sensitivity theory: do we all want more than we deserve? Journal of Managerial Psychology, Vol. 19 Issue 7, pp.722 – 728, Steers, R., Mowday, R. & Shapiro, D. 2004.The Future of Work Motivation Theory, Academy of Management Review, Vol. 29, No. 3, pp 379–387. McGregor, D. 1960. The Human Side of Enterprise. New York: McGraw Hill. Vroom, V. H. 1964. Work and motivation. New York: Wiley. Read More