Effective Personnel Management: The Theory of Motivation - Assignment Example

Business Part A Maslow’s and Herzberg’s Theories of Motivation Maslows theory of motivation is based on human needs; psychological, safety, social, esteem, and self-actualization whereas Herzberg’s theory of motivation is based on hygiene factors and motivators. Maslow stated that “human needs arrange themselves in hierarchies of prepotency. That is to say, the appearance of one need usually rests on the prior satisfaction of another more proponent need.”(Udechukwu 2009). Kellogg’s offers competitive salaries, a safe and healthy work environment, provides informal meeting opportunities, positively recognizes and rewards staff achievements in order to satisfy all the worker needs across hierarchical levels. Opportunities for career growth abound in the organization for employees to achieve self-actualization. Herzberg’s two-factor theory of motivation suggests that ‘motivators’ deal with aspects of work and include work, promotion, achievement, responsibility and recognition whereas ‘hygiene factors’ deal with the context in which the work is rendered and includes working conditions, interpersonal relations and supervision. Amongst Kellogg’s various initiatives to make the organization a good place to work and a desirable employer of choice, the company has a ‘Fit for Life’ program that enables employees to use fitness centers, get free health checks as well as annual fitness assessments. The company uses flexi-time, home working, part-time working, job sharing, career breaks, parental leave et al. as motivators. Similarities between the Theories Maslow’s theory as well as Herzberg’s theory suggests that certain needs of employees have to be satisfied for them to feel motivated. Herzbergs hygiene factors correspond to Maslows physiological, safety and social needs (basic pay, work conditions) whereas Herzbergs motivators corresponds to Maslows esteem and self-actualisation needs (recognition, growth, achievement). Dissimilarities between the Theories Maslow’s theory and can be illustrated as a vertical scale or a pyramid while Herzberg considers the motivators and hygiene factors as horizontal. Unlike Maslows theory, Herzbergs motivation-hygiene theory argues that job satisfaction and job dissatisfaction result from different causes. Herzberg has concisely distinguished between satisfaction and dissatisfaction while Maslow has talked only of satisfaction of needs. Part A-2 Employees are often cited as the most importance resource that an organization has. Motivated employees go that extra mile to ensure that their organization is ahead of competition. Having a motivated work force accords numerous benefits to an organization: Save Costs: Motivated employees are more involved in their work. They tend to go beyond the call of their duty, apply their minds and suggest product and/or process improvements for the organization. Any such innovative idea given by the motivated workforce has the potency to save massive amounts of money for the organization. Increased Quality: Motivated employees will pay attention to detail and will work meticulously. This will result in minimal mistakes and production of quality products (Blasková 2009). Reduction in Employee Turnover: Employee turnover costs an organization dearly. In case the replacement is not found immediately, it may hamper the smooth functioning of the organization. In addition to the time and money involved, group and team dynamics are also affected as the new incumbents take time to adjust in the organization (Jackson 2011). Absenteeism: Various studies have established the lack of motivation to increased absenteeism of employees. Such type of absences from workplace is an individual choice of the employee and is considered avoidable. A motivated workforce is less likely to be absent from work and thus provides a big boost to the organization (Sadri 1995). Acceptance to Change: A motivated workforce is more likely to be receptive to change and adapt according to the changing circumstances. In the present day dynamic world, where flexibility is the name of the game, a motivate workforce is a sine qua non for any organization. Make a Better Society: Motivated employees are happier than their counterparts who are not motivated (Salinas-jiménez 2010). This happiness is carried to the respective homes of the employees which makes the society a better place to live in. Part A-3 Various experts have put forth different approaches to motivation. These approaches have different efficacy levels but all of them have benefited the organizations that use them. While some of these approaches work for lower level and middle level employees, others cater to the motivation of employees across hierarchical levels. Frederick Taylor: Frederick Taylor, the father of scientific management, averred that the single most important motivator for employees was money. Organizations have greatly benefited from Taylor’s views as they aptly fit to people who have to work within narrow job confines for e.g. a production line. Taylor also put forth the principle of division of labor which states that big jobs should be broken down into components or specialist tasks. Each worker should be assigned a particular task. By repetitively doing this task, the worker will become an expert, which in turn, will increase his motivation as well as productivity. Organizations have benefited from this approach as they have been able to roll out incentives to worker on a ‘piece work’ basis, i.e. on the basis of the amount of work that they do or the units they produce. Maslow: Maslow’s theory relates motivation to a hierarchy of needs. To implement and make use of this approach, it is important for an organization to know where within the hierarchy of needs, a particular employee is placed. Different things would motivate different employees. If the physiological needs of an employee have been ‘absolutely met’ and ‘strictly satisfied’, only then would he be motivated by higher order needs like safety and social needs. Likewise a top management executive would probably be looking at self actualization, therefore giving him cash incentives as a motivation tool would be ineffective. Maslow’s theory has thus given a framework wherein organizations can decide on tools; monetary or non monetary incentives, to motivate employees. Elton Mayo: Elton Mayo, founder of the Human Relations Movement, established that taking care of employees has a positive effect on employee motivation and productivity. Mayo’s work proved that employees were best motivated if they worked in teams. This work has been instrumental in recognizing the importance of team work and group dynamics. Organizations have benefited tremendously from this motivation approach and try to build camaraderie in cross functional teams and have two-way communication in the organization. Managers are encouraged to communicate, consult and take care of subordinates so that the organization, as a whole, benefits. Herzberg: Herzberg propounded the two-factor theory which states that hygiene factors, referred to as ‘dissatisfiers’ are elements like excessive bureaucracy and autocratic working environment that make employees unhappy. These elements are outside the control of employees and cause them dissatisfaction Motivators, referred to as ‘satisfiers’, are elements like promotion or recognition for effort that give individuals job satisfaction. The present day organizations recognize the fact that the factors involved in producing ‘job satisfaction’ and motivation are distinct from the factors that lead to ‘job dissatisfaction’. As such they try and ensure that hygiene factors are minimized and motivators are maximized. Part B-4 The marketing mix, also known as the 4 Ps of marketing, refers to the controllable marketing tools a company can employ to bring out the desired response from the target market (Ivy 2008). The marketing mix of Huggalugs, an apparel company, is detailed below along with a brief description of each of the elements of marketing mix. Product: The product forms the heart of the marketing mix. It includes the product package, warranty, after-sale service as well as the brand name. Huggalugs offers artistic leg and arm huggers for children. Along with a huge variety of leg and arm huggers, the company has in its product portfolio, tops and maternity wear. Huggalugs has been positioned as apparel that provides the basic need of warmth and serves as a fashionable piece of clothing. Place: Place is concerned with making the product available when and where customers expect them. Physical distribution is concerned with the storing and transporting of finished products from the place of production to the place of consumption. The objective is to make available, the products in usable conditions at designated places where they are needed. Huggalugs follows a selective distribution strategy wherein it picks the stores that it wants should carry its brand. As of now, there are no exclusive showrooms for the brand. In addition to the brick-and-mortar distribution, the company also sells its products online through its e-commerce website. Promotion: Promotion includes advertising, public relations, sales promotion and personal selling. Promotion’s role is to inform, educate, persuade and remind the target market of the benefits of the product. Huggalugs heavily relies on print advertising and minimally on television commercials. The company advertises on billboards as well as bus shelters. Huggalugs also associates itself with sports events, painting competitions, especially the ones meant for children, its target market. Price: Price is what a buyer must give up to obtain a product. Invariably, it is the most flexible and the quickest element to change. Setting the right price is extremely important as it determines the total revenue for the firm. Huggalugs follows a competitive pricing model. The company also rolls out various discounts off and on since tend to outgrow apparel pretty fast and the parents are always looking for a ‘value for money’ offer for their clothes. Huggalugs employs ‘special event pricing’ during Halloween and Christmas so that its products make for good gift items. Part B-5 The law of demand states that, other things remaining the same, people will buy more at lower prices and buy less at higher prices. Price elasticity of demand measures the responsiveness of the quantity demanded of a good or service to a change in its price. For some goods, changes in price may have a small effect on the quantity of the good demanded, while for others changes in price may have a significant effect on the quantity demanded. Looked at from a different perspective, if a change in price leads to a considerable change in quantity demanded, the product is said to be price sensitive. On the other hand, if a change in price does not lead to a considerable change in quantity demanded, the product is said to be price insensitive. In general necessities of life are price insensitive. If the prices of wheat increase, consumers will not buy lesser quantities of it, unless there is a substitute available. Likewise, if a medicine is required to treat a medical condition, a variation in price will not impact the quantity demanded. A reduction in the price of the medicine will not prompt the consumer to buy more medicine, a case of price insensitivity. However, ‘The demand for sportswear and casual clothing is more likely to be price sensitive’ since these are non essential goods. A rise in the prices of such goods may lead to a significant fall in quantity demanded. On the contrary, a fall in price may provide the impetus to the consumer to buy more of such products. The purchase of such goods falls under the discretionary spending of the consumers. As such, any kind of unfavorable economic conditions like recession, unemployment, high inflation, which lead to a reduction in the disposable income of the consumers, is like to adversely impact the sales of such goods. Part B-6 The present day market space is replete with competition. Think of any product category or any industry and there would be number of players; domestic and foreign, vying with each other to grab a larger chunk of the market share. With a plethora of brands available, consumers also find it difficult to select the product that best suits their need. One brand cannot mean everything to a customer. The onus lies on the marketer to, through the proper use of the marketing mix elements, convey what the brand stands for. In other words, appropriately position the brand in the mind of the consumer. Positioning refers to what comes in the consumers mind when they think of a particular brand. It is important for marketers to secure a distinct place in the mind of the target consumer so as to stand apart from rivals. Why else would a consumer buy the brand? The brand needs to stand for something and that has to be conveyed to the customer, in clear unambiguous terms. JD, part of the JD Sports Fashion PLC Group of companies, is UK’s leading retailer of fashionable sports and casual wear. The company has grown by leaps and bounds especially through the inorganic route in recent times. JD has more than 500 stores in the UK, Ireland and France and has earned a reputation for selling the most exclusive and stylish lifestyle products. All the marketing mix elements are designed to convey this image. JD has numerous brands in its product line including Chilli Pepper, Canterbury Duffer, Kooga, Kukri, Nanny State and Sonneti. It also houses exclusive brands like Mckenzie, Brookhaven, Carbrini and Pure. In addition to this popular brands such as Nike and Adidas are also sold at JD outlets. Adidas Forest Hills and Adidas Training PT footwear are available only at JD outlets. Finally JD has its own-brand products as well. JD has outlets in the high street, out of town locations and shopping centers. In addition to this the retailer has an e-commerce mode of distribution. JD’s site did exceedingly well in the mystery shopper survey of UK e-commerce sites in 2010. It scored well on quality of its customer service, checkout process and product pages. In order to give its consumers a unique and pleasurable shopping experience at the physical stores as well, JD uses innovative displays and creative imagery at its outlets. JD has to charge a competitive price for brands that are available at other outlets as well. It cannot charge a higher price for the same good that is available at a relatively lower price at other retailers. However, it can go in for a price skimming strategy for exclusive brands. This is where it’s positioning as ‘exclusive and stylish’ lifestyle products will come in handy. The aforesaid discussion suggests that it is important for companies to segment the market and position their products in the minds of the consumer so that they can appeal to the target market through its marketing mix. References Blankson, C. & Kalafatis, S.P. 2007, "Positioning strategies of international and multicultural-oriented service brands", The Journal of Services Marketing, vol. 21, no. 6, pp. 435-450. Blasková, M. 2009, "Correlations between the Increase in Motivation and Increase in Quality", E+M Ekonomie a Management, , no. 4, pp. 54-68. Gordon Rouse, K.,A. 2004, "BEYOND MASLOWS HIERARCHY OF NEEDS: What Do People Strive For?", Performance Improvement, vol. 43, no. 10, pp. 27-31. Huggalugs [Online]. Available at http://www.huggalugs.com.au/ [Accessed 10 December, 2011] Ivy, J. 2008, "A new higher education marketing mix: the 7Ps for MBA marketing", The International Journal of Educational Management, vol. 22, no. 4, pp. 288-299. 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