Intrinsic Motivation at Work - Case Study Example

?Introduction Observing employees at Innocent Drinks working and interacting with one another is a remarkable sight. The company‘s workforce is diverse, consisting of people from different cultures, ages, racial backgrounds, and sexes. However, in spite of the differences, it is apparent that they enjoy working with each other and are committed to the success of the company. Since the founders established the company (six years ago), it has recorded impressive growth and is one of the leading enterprises in the drinks industry. From a humble beginning of just three employees, the company currently has 47 permanently employed staff and three workers on contractual assignment. Within the six years, the company has opened subsidiaries in Germany, Scandinavia, France, Ireland, Alpine, and Benelux. The company invests heavily in motivating its staff, and, as a result, it has the lowest rate of staff turnover and receives numerous job applications annually (Food manufacture.co.uk, 2005). This case study examines how the management of Innocent Drinks applies different motivation theories within its organisational structure to build the highly motivated and winning team. Application of Motivational Theories in Workplace The remarkable success of Innocent Drinks is a reflection of the company’s organisational structure and culture. The company’s management places emphasis on staff motivation, but, unlike other contemporary organisations, it integrates motivational theories with a personalised approach that caters for the needs of every employee in the organisation (Food manufacture.co.uk, 2005). The importance of highly motivated staff cannot be overemphasised in the contemporary organisations. Consequently, organisations apply different motivational theories in order to enhance performance and commitment of the employees to achieve the company’s strategic goals. Various theories are applied to motivate employees, and Banerjee (1995, p.62) classifies them into two categories, namely needs and process theories. Needs theories include Maslow’s hierarchy of needs, Hertzberg’s motivation and hygiene theory. Process theories include expectancy and contingency theories, and reinforcement and goal setting ones. Maslow’s theory is based on the principle that human beings strive to attain higher levels of achievement and capabilities in their daily activities. In regard to this theory, human beings have five hierarchical needs, and when one of them is satisfied, people become motivated to achieve other unmet needs (Shaw2007, p.92). In an organisation set-up, it is important for the management to identify the unmet needs of every employee in order to devise methods of motivating them. The five needs in Maslow’s theory are physiological, safety, social, esteem, and self-actualisation. Physiological needs include food, clothing, and other necessities (Thomas, 2000, pp.34-36). When physiological needs are fulfilled, the person’s need for safety becomes more urgent, and the sequence continues until the person attains self-actualization. Hertzberg’s motivation theory is also based on meeting the needs of the employee. The theory classifies employees’ needs into two categories, namely motivational and hygiene needs (Robbins, 2001, p.73). Motivational needs include opportunities that enhance achievement, recognition, exciting assignments, responsibility, and growth and development of the employee. Hygiene factors include relationship with the supervisors, colleagues, compensation, the organisations policy, and administration in addition to the prevailing working conditions. Reinforcement theory emphasises on the role of rewards and punishment in influencing motivation of the employees. Expectancy theory affirms the critical role that inherent characteristics in an employee play in influencing motivation. These include personality, experience, and skills (Robbins, 2001, pp.106-117). In any working place, workers have different needs and interests, and the most challenging work for managers is establishing these aspects in every employee in order to formulate an appropriate approach to the way they have to be motivated. At Innocent Drinks, the company’s management is cognisant of the personal disparities between the employees, which enable them design appropriate methods for motivating every individual worker (Food manufacture.co.uk, 2005). Personal differences include age, level of education, personality, and sex. Young employees, for instance, have different motivations compared to the older counterparts. For instance, young people are motivated by interesting and challenging work, while their older counterparts by working in a secure and predictable environment. To motivate their staff, Innocent Drinks has devised a program, which is entrenched in the company’s structure and culture. The program is founded on a clear and concise mission, vision, and values of the company. The mission of the business is to establish an impressive company, which all stakeholders, including the employees, are proud of (Food manufacture.co.uk, 2005). This mission statement motivates the employees by instilling a sense of ownership and responsibility of being a part of the winning team. Consequently, the employees and potential jobseekers are motivated by the fact that their abilities, skills, and expertise are highly valued in the company. To ensure motivation of all employees, the company acknowledges that they have different needs. Therefore, the manager has established a customised motivational plan for every employee in the company. The manager indentifies five different needs of the employees in the company. The needs include benefits or rewards, power, opportunities to lead and influence others, socialising with other people, and seeking opportunities for fun and enjoyment in the company. For employees seeking rewards or compensation, the management has devised a mechanism of rewarding couples expecting a baby in their family with a monetary token of ? 2000. In addition, the company has established Innocent Scholarship Program where the employees have an opportunity of winning ? 1,000. The winner is at liberty to spend the money on an individual project that he or she desires (Food manufacture.co.uk, 2005). Employees who win the Innocent Scholarship reward use the money to develop skills such as driving, fund charities of their choice, and buy equipment for exercising or engaging in their hobbies. In addition, the company provides employees with free breakfast every morning to energise them for the challenging tasks ahead in a normal working day. At the end of the week, on Fridays, Innocent Drinks provides employees with free beers at selected pub. These outings provide more opportunities of forging better working relations and promoting teamwork within the organisation. Other rewards offered include providing cars to the company’s sales representatives (Food manufacture.co.uk, 2005). The sales representatives are allowed to choose the models of their vans available, including those with cow models. These cars are exciting and unique, which motivates the sales representatives seeking excitement and enjoyment in their work assignments. Employees seeking career development are provided with opportunities of furthering their education at Innocent Drinks. They employees are enrolled in the company’s Masters of Business Administration course that equips them with the leadership and management skills (Food manufacture.co.uk, 2005). . Importance of Motivation Theories to Managers Motivation plays a major role in the success of Innocent Drinks. Providing the employees with appropriate incentives motivates them to put their skills, expertise and knowledge into action in the organisation. At Innocent Drinks, all employees are well motivated, which ensures maximum productivity in their assigned responsibilities. According to Thomas (2000, p.83), motivation promotes efficiency of the employees in the workplace. Although ability, skills, and expertise are important factors that promote efficiency at work, motivation enhances the willingness of the employees to undertake their respective roles. This improves their productivity at work. Therefore, the company is able to minimise operating costs of its various operations because of reduced employee turnover and improved efficiency (Thomas, 2000, pp. 96-104). Companies without effective motivation programs are costly to operate because of low productivity, increased disputes, and conflict between employees and the employer. Motivated employees facilitate attainment of the company’s goals and objectives, and this is evident at Innocent Drinks. This is achieved because there is optimum utilisation of the available human and capital resources. Motivated employees form effective and well-coordinated teams within the organisation, and this enhances speedy attainment of the company’s goals (Robbins, 2001, p.63). Moreover, achievement of the targeted goals is enhanced, because motivated employees are focused and goal oriented, which enables them to work purposively in their respective assignments (Thomas, 2000, p.73). Banerjee (1995, p.116) argues that organisational goals are achieved easily if coordination and cooperation between various employees is enhanced by motivation. Promoting stability of the organisation is another important role of motivation. Motivated employees are likely to be loyal and more productive than poorly motivated individuals. Consequently, the company creates a positive image in the public domain, which enhances its ability to attract talented and highly motivated workers from the society. This is evident at Innocent Drinks. The company invests considerably in motivating its staff, and this has drastically reduced employee turnover in addition to enhancing its reputation as one of the best companies to work in. This is evident from the numerous job applicants aspiring to work at Innocent Drinks (Food manufacture.co.uk, 2005). Nature of Groups and Group Behaviour within Organisation Formation of effective groups is important in order to promote achievement of the team or organisation at large. Groups are entities which are comprised of two or more individuals working together interdependently to attain specified objectives or fulfil particular needs (Shaw, 2007, p.171). Thomas (2000, p.55) argues that members in a group may have several objectives in common, and it is not mandatory for all members to be motivated by similar goals during its formation. According to Shaw (2007, p.148), groups could be formal or informal. Formal groups originate from the organisation’s structure, and their responsibilities could be short-term or permanent. Therefore, the behaviour portrayed by formal groups is regulated by the organisation’s policies, the position of the constituent members within the hierarchical structure of the organisation, and the objectives of the group. Informal groups, on the other hand, are formed from prevailing social interactions among the members and are intended to satisfy their collective social needs (Shaw, 2007). Formation of groups is motivated by work related factors and the social needs of the concerned people. Robbins (2001, p.119) categorised the reasons for forming groups into three classes: to fulfil psychological functions, to accomplish formal organisational functions, and to perform mixed functions. In formal organisations, groups are formed for various reasons. These include enhancing the ability of teamwork within the organisation to work on complicated tasks. Complicated and demanding assignments that cannot be undertaken by a single person are solved better within a group setting. Another reason for group formation in an organisation is to encourage generation of new and creative ideas from the constituent members. Groups also play an important role of coordinating and liaising operations in various departments within an organisation (Shaw, 2007, p.90). They facilitate execution of complicated measures and decisions within an organisation. In addition, groups play a critical role in the promotion of socialisation between various employees in an organisation. The socialisation is important, especially to the newly recruited, because they become oriented and acquainted with different operations in a company. In an organisation, groups have their own structures and regulations that control the conduct of constituent members. This is important, because it enables acquisition of appropriate values and norms essential for the group to succeed (Shaw, 2007, pp.92-107). Psychological fulfilment is another reason for forming groups. People have different psychological needs, and forming groups provides an ideal opportunity for fulfilling the needs. Groups provide a mechanism for promoting identity and development of confidence among the members (Robbins, 2001, p. 116). In the process, the group lower the sense of anxiety, loneliness, insecurity, and inadequacy prevalent in individuals who are not affiliated. Groups also provide opportunities for solving personal problems. By sharing with other members, a person gains valuable insights that enable him or her overcome challenging personal problems. Therefore, groups play both psychological and organisation functions. They address the needs of the organisation as well as the employees. Factors that Influence Development of Effective Teamwork To promote effective teamwork at Innocent Drinks, the management has designed an induction program that facilitates integration of new employees into the organisation. Newly recruited employees are given two weeks to become oriented in the organisation. During the period, the management organises meetings where new staff interact with other members of the organisation. During the interactions, the newly recruited employees become acquainted with other members of staff and gain valuable insights in their roles and how they can be assisted to fit within the organisation’s structure. In addition, the management organises “lunch mate programs” where new recruits meet different member of staff for lunch each day during the induction period (Food manufacture.co.uk, 2005). These informal activities reduce the anxiety and panic associated with working in a new environment. In contemporary organisations, various factors undermine development of effective teamwork. Some of the factors include lack of diversity, poor communication within the organisation’s structure, and ineffective leadership. Other factors include a failure to enforce team-building activities such as induction programs and other informal interactive activities (Dessler, 1976, p. 59). Effective teams are consistent with their goals. The team is focused and persistent and takes appropriate actions that ensure the achievement of its goals. The team members demonstrate homogeneity or similarity in values, attitudes, and beliefs. Other characteristics include interdependence and clear sharing of roles between the group members. Moreover, effective groups are cohesive, and they demonstrate unity of purpose in their activities (Shaw, 2007, p.77). Impact of Technology on Team Functioning At Innocent Drinks Technology is an important component at Innocent Drinks. Just like in other organisations, installation of appropriate technology enhances efficiency and productivity of the company. Moreover, applying technology reduces the operational costs and saves time. At Innocent Drinks, application of information technology would enhance the productivity and efficiency of marketing, logistics, and financial teams. However, the extensive use of technology could cause layoffs and disrupt the smooth functioning of the teams. Conclusion It is apparent that motivated teams enhance profitability and productivity of an organisation. To formulate effective motivation strategy for employees, it is important for the managers to indentify the various unmet needs of every employee. People exhibit different characteristics influencing their motivation. The success of a company in motivating employees is founded on a company’s commitment to address the motivational needs of every employee at the workplace. Reference list Banerjee, M., 1995. Organization behaviour. New York: Allied Publishers. Dessler, G., 1976. Organization and management: a contingency approach. Michigan: University of Michigan. Food manufacture.co.uk, 2005. No concerns over staff treatment here – this company is innocent. [Online]. Available at http://mobile.foodmanufacture.co.uk//People/No-concerns-over-staff-treatment-here-this-company-s-Innocent [Accessed 12 June 2012]. Robbins, S., 2001. Organisational behaviour. (9th ed.). New Delhi: Pearson Education, India. Shaw, M., 2007. Group dynamics: The psychology of small group behaviour. New York: McGraw Hill. Thomas, K., 2000. Intrinsic motivation at work: Building energy and commitment. London: Berrett-Koehler Publishers. Read More