Motivation Workforce in Ocado - Essay Example

Motivation workforce in Ocado Affiliation: Ocado uses a number of methods to motivate its workforce: a) Explain the concept of motivation using two recognised models Maslow’s hierarchy of needs model Maslow explains that every human being has a unique potential they would like to reach and explore and this is what he calls self-actualization. In order to reach this potential, an individual must get enough motivation from their employer to move through the rest of the stages of needs and fulfil all the needs before reaching their full potential and self-actualizing. Hoffman, (2007) explains the different need stages as: the biological and physiological needs which are the most basic and which comprise of basic need such as food, shelter, clothing, sex, air among others. Fulfilment of these needs lead to the second stage of safety needs such as the need for stability, protection, security and even order. This is closely followed by the love and belongingness level that involves needs such as of relationships, affection and family. After this fulfilment is the esteem needs that involve the need for status, reputation and responsibility and lastly is self-actualization where there is personal growth and fulfilment. Herzberg’s motivation and hygiene factors There are factors according to Herzberg, Mausner and Snyderman, (2011) in the workplace that if present lead to job satisfaction and they are categorized into motivators and hygiene factors. The presence of motivators leads to positive satisfaction. The motivators are things such as advancement in career, being provided with responsibility and recognition as well as achievement. Hygiene factors are those whose presence do not motivate but when they are absent, people are unhappy, lack satisfaction and become demotivated. As a result of this, they are therefore also referred to as maintenance factors as they maintain satisfaction in the workplace. They include issues such as company car and house, status, salary, relationship with supervisors and subordinates and security among other fringe benefits. b) Evaluate the methods Ocado uses to motivate its workforce using one of the models you have used Ocado according to Hobson, (2012) has several methods that it uses to motivate its employees including the basic allowances and others. Using the Herzberg’s two factor motivator theory, Ocado’s motivation will be evaluated for its success among its workers. The benefits of employees working in Ocado are divided into three groups: Ocado benefits, Ocado choices and Ocado pay. Ocado benefits include the main benefits such as healthcare, life insurance and pension scheme. An Ocado choice has the local discounts which the employees have access to while Ocado ay involves bonuses and pay rates. The motivators in this case and which bring positive satisfaction are the pay rates and bonuses as they indicate their achievement and hard work. The hygiene benefits in this case include the healthcare and life insurance cover, the local discounts and even the pension scheme as their lack lead to lack of satisfaction and their presence motivates the employees (Landy and Conte, 2010, pg. 76). The motivation system in Ocado is mainly directed towards the weekly paid workers who make up the majority of the workforce in the organization at 78% and they are the ones who carry out the actual work of sorting, packaging and delivery of products to the customers. Their job satisfaction is therefore of the essence as without their labour and productivity, the company cannot run and with the absence of casual labourers in UK, the company cannot afford to lose any of these employees to lack of job satisfaction. 2. Ocado sees its proprietary software as a source of competitive advantage. IT employees are therefore crucial to the success of Ocado: a) Describe the Ocado recruitment and selection process for IT candidates, and why you think Ocado takes this approach Ocado uses unorthodox methods to recruit its IT candidates as well as select those who will be hired. They use a very different approach from other organizations and this has proven to be effective for them. In recruitment, they advertise through spraying ink on the premises of big companies which are known to have good IT specialists. It also stencils on doorsteps as a way to try and poach the best and have them for themselves. After this form of advertisement for the posts, then comes the selection process. Ocado’s IT department does not conduct the regular form of interview with predetermined set of questions and a panel full of office heads who are intimidating enough with questions about future. The questions asked do not relate with future or long term plans as the company works in the present (Mulins, 2013, pg. 396). The candidates who want plans of the long term are not chosen to work in the organization as that is the not the policy of the technology department. Ocado is a fast developing company and especially with the partnering with Morrisons which is the fourth largest grocery chain and it handles their website in delivering the orders. This therefore means that it works for the present and immediate future and needs quicker thinking It specialists and who can work under extreme pressure. They also need the techs with experience and hence the guerrilla tactics used in recruitment process and in order to beat their competitors. This strategy is unique to only Ocado but the results are starting to be evident (Taylor, 2010, pg. 165). b) Identify and explain five competencies that Ocado look for in its IT employees They should be talented in the IT skills and abilities as the company wants to establish itself and be known as a technology company as well and be recognized in as far as technology is concerned for future productivity. The recognition will come from having talented individuals working in the IT department. The individual should also have Java skills for innovation areas such as robotics and machine learning as this is the area where the company wants to implement robotics to cut labour costs. The knowledge in this field would therefore come in handy and be in line with the goals of the organization (Twentyman, 2014). The candidate should be willing to work outside London in Hartfield where the offices are located. The area is approximately 20 miles outside London and will therefore require a candidate willing to be commuting on a daily basis. The candidate should also be focused on the present and immediate future and not the long term goals which also mean that they are looking for a candidate that can withstand working under extreme pressure of time to produce results. This is so because with Ocado handling the website delivery system of Morrisons, they have to be on their toes in an updated website and one which is running without hitches as well as start development of the robotics (Institute of Marketing and Sales Management, 2008, pg. 14). Reference Herzberg, F., Mausner, B. and Snyderman, B. (2011). The Motivation to Work. New Jersey: Transaction Publishers. Hobson, R. (2012). The Dividend Investor. London: Harriman House Limited. Hoffman, S. (2007). Classical Motivation Theories - Similarities and Differences between Them. New York: GRIN Verlag. Institute of Marketing and Sales Management. (2008). Marketing. Indiana: Haymarket Press. Landy, F. and Conte, J. (2010). Work in the 21st Century: An Introduction to Industrial and Organizational Psychology. New Jersey: John Wiley & Sons. Mulins, L. (2013). Management and Organisational Behaviour. New York: Cengage Publishing. Taylor, S. (2010). Resourcing and Talent Management. Oxford: Chartered Institute of Personnel and Development. Twentyman, J. (January 9th, 2014). “Jessica Twentyman meets: Ocado’s guerrilla recruiter” Diginomica. Retrieved from: http://diginomica.com/2014/01/09/jessica-twentyman-meets-ocados-guerrilla-recruiter/ Read More