Ways of Motivating People at Starbucks and John Lewis - Literature review Example

Running head: Starbucks and John Lewis Starbucks and John Lewis Institute’s “Different ways of motivating people at Starbucks and John Lewis” 1. Introduction: Motivated employees of any organization are the building blocks for its success. The fruitful and appreciate able contribution of any firm’s staff members is the result of the motivation provided to them by the company’s owners (Staff motivation n.d.). As a matter of fact this, the motivation goes hand in hand with the satisfaction that an employee gets from his work or business. It is seen that employees who are satisfied with their careers engage themselves in innovative work for doing better tasks for the success of their companies. However, lack of satisfaction and motivation arises from several reasons such as high load of work, absence of inter-communication among management and staff and no incentives awarded etc. (Gregory n.d.). In this regard, managements should devise ways and strategies to engage the staff into positive activities and thus motivate them for their and company’s own betterment. 2. Literature review: Today’s market of organizations is engaged in intense competition of gaining competitive advantage over one another. A company can survive on the base of best internal company’s environment and group dynamics gained through “motivating its employees” (Review of literature 2012). Motivation is a tool that when properly employed by the managers and high authorities then can make the employees and staff members to devise innovative ways of using their skills and abilities in achieving best results for the company and themselves. However, the ways of motivating employees change with time on the basis of changing needs and demands on the staff members. Sometimes they get motivated through having appreciation and getting incentives and awards for their well-done tasks. On some occasions they demand satisfaction for their posts and promotion’s oppurtinuinties. This means that managers must be conscious enough on getting know about the interests and preferences of their employees and reward them accordingly (Review of literature 2012). The purpose of this literature is to accomplish following objectives: To define employee and motivation To explore different theories of motivation. To investigate how motivation and satisfaction is developed and can be measured among employees (Lai 2011). To review motivation practices employed in Starbucks and John Lewis and make a contrast between them. 3. Who is an employee? An employee is defined as: “An employee is a person who works in the service of another person under an express or implied contract of hire, under which the employer has the right to control the details of work performance” (Murray 2012). The employee is basically hired after a series of interviews and application process after which he/she afters selection is offered a joining letter, contract etc. The employee is controlled by the higher authorities through deciding the salary package, tasks assigned, duty hours etc. (Murray 2012). The employee gets paid accordingly for his/her abilities, skills, strengths and achievements. The job specifications and descriptions are detailed to them according to which they do their daily tasks. He is provided with necessary tools to accomplish his tasks, guidance from the supervisors and a healthy working environment. Some of the companies also get feedbacks from them and accordingly access their ideas, interests and needs and tries to fulfil them through awarding rewards and beneficial financial and health security packages (Heathfield 2012). 4. Definition of motivation: Motivation is the most important icon under study when it comes to be discussed in a workplace (Voris 2009). It is defined as: “Employee motivation is a reflection of the level of energy, commitment, and creativity that a companys workers bring to their jobs” (Employee motivation 2010). Motivation is provided by the higher authorities and managers to the employees through complementing their done tasks and boosting up their morals. Once they are motivated, the employees will be able to care about their customers and work more productively and thus will sought out new ways to better get their jobs done (Employee motivation 2010). 5. Different theories of motivation: There are various theories of motivation that have the greatest impact on the workplace environment. They basically identify the needs and eventually the motivation needed for fulfilling those needs (9). Two of the theories are explained here under: a. Maslow’s hierarchy of needs: Maslow proposed a hierarchical model of needs based on five levels namely: Deficiency needs which include “physiological, safety ad social needs” (The content theories n.d.). Growth needs which are comprised of “esteem and self-actualisation needs” (The content theories n.d.). According to Maslow, starting from the lowest level, with the fulfilment of each level needs basically takes to the achievement of the next above level of needs. The deficiency needs are to be fulfilled for providing “security and survival”, while the growth needs tend to growth for “personal and potential fulfilment” (The content theories n.d.). b. Theory X and Y: Douglas McGregor proposed a theory X and Y in which he formulated two approaches as follows: Theory X assumes average employees have no personal desire to do work and thus avoid it. Thus, such unambitious workers are forced to do assigned tasks and often punished for not completing them. Such employees make no contribution to the organizational goals and mainly wants security most of all (Management Gurus 2012). On contrary, theory Y assumes employees who are fully devoted to their work and employ their efficient skills and abilities in achieving the company’s set goals and objectives. They do not need to be threatened for punishment and hence are always there to offer and perform solutions for any sort of problem (Management Gurus 2012). McGregor supported his theories by saying that “theory X at best only met the Maslow’s deficiency needs and theory Y met the growth needs” (The content theories n.d.). 6. Different ways of staff motivation: Employees can be motivated through a number of different ways as follows: Employees must be praised frequently among other colleagues and higher authorities. This encourages them to perform even much better afterwards. Getting rid of the managers and supervisors is often a good practice (Pozin 2011). This let the employees to work within a team. They do not feel bound or under a strict environment and thus feel free to work more efficiently. Appreciate the ideas of the employees. Do not impose your decisions on them. Always welcome them to present their views. If acceptable, agree to them happily, if not, simply advice nut do not criticise (Pozin 2011). Award incentives and small packages that boost up their confidence. Often engage them in small parties like celebrating the success of any project etc. Provide a friendly, nice and clean working environment (25 tips n.d.). Give proper relevant training to keep them more focused on their jobs (25 tips n.d.). 7. Different ways of measuring staff satisfaction: Staff satisfaction is very important toward success of any business. High rate of satisfaction of employee results into lower rate of turnover and thus result in more success and productivity. It is achieved best by having good communication among lower level and higher level of the staff members. The supervisors maintain healthy and friendly environment with employees. Managers clear the goals and objectives of the company to the employees so that they have clear idea of what they have to do and what need to be accomplished (Gregory n.d.). According to Workforce management (2012), it can be measured through various ways as follows: Using “suggestion boxes” is the simplest approach of measuring staff satisfaction. This let to analyse the employers’ views and remarks on average level. “Online comments” let the employers to present their ideas and views more easily. The HR members need to be fully attentive and efficient in replying back to those remarks accordingly. “Questionnaires” are best to analyse to the changing attitudes and views of the employees. This type of the survey lets the managers to analyse the views both on general and personal levels. Every department must set its own committee to listen to the problems of the staff, analyse them and take to the higher authorities for solution. 8. Staff motivation’s ways employed at Starbucks: Starbucks is the world famous coffee retail shop. Its rapid growth owes greatly to its best production and customer care satisfaction that is best achieved through managing the “satisfaction of its employees” (Starbucks Corporation n.d.). Thus, its average turnover rate is also quite low as compared to other companies. It is well known for the motivation and satisfaction it offers to its employees who in turn work cooperatively well as teamwork. According to (Starbucks Corporation n.d.), its motivational strategy employ following ways as explained here under: Starbucks treat its each employee equally (Starbucks 2012). All employees are considered partners. The supervisors and their staff members all work within the same friendly environment. There is a well-maintained organizational channel. The labour load and working hours are managed well according to the needs and feasibility of the employees. All employees and partners are welcomed by the directors to present their ideas and appreciated as well. Each branch has 3-6 employees only. This small number of retail shop staff members helps them to get acquainted with each other easily and perform more efficiently together as well. It builds the morale among employees by making them realise that society also need to be benefited from their work done. 9. Staff motivation’s ways employed at John Lewis: John Lewis is a famous department store chain that is well known for its unique motivational strategies employed for its employees. It motivates the staff members through following ways: It arranges extra-curricular hangout activities for its employees. Best example is the box it reserved at London’s 02 arenas for its staff so that they can attend the concerts and events (Mewes 2011). It shares its profit among its employees. The company earned profit of £306m in which John Lewis decided to share a bonus of £151.3m among them (John Lewis 2010). 10. Comparison of motivation strategies at Starbucks and John Lewis: Motivation strategies are differently employed in both companies. Starbucks motivates its employees through personal growth and treat them equally. It provides them self-actualization and esteem opportunities. It offers various awards to the employees. It also offers life insurance and employee assistance program (Mewes 2011). On the other hand, John Lewis rewards its employees in different manner by awarding them with year-end grand bonuses. The sales and profits are motored among the employees. It also has a staff council that solves the issues within the organization (Finch 2010). References 25 tips for motivating staff n.d. callcentre helper.com, accessed 11 December 2012 Employee motivation definition 2010. The no-sugar-coach.com, accessed 11 December 2012 Finch, J. 2010, “At john Lewis, ‘happiness’ beats profit”, guardian.co.uk. Accessed 11 December 2012 Gregory, K. n.d. “The importance of employee satisfaction”, pp. 20-37, accessed 11 December 2012, Heathfield, S.M. 2012, “what is an employee?” about.com, accessed 11 December 2012 John Lewis profits top £306m as staff share big bonus 2010, new.bbc.co.uk, accessed 11 December 2012 Lai, E.R. 2011, “Motivation: a literature review”, Pearson’s publications, accessed 11 December 2012, Management Gurus: Douglas McGregor 2012. Managetrainlearn.com, accessed 11 December 2012 Mewes, E. 2011, “employee motivation: john Lewis offers staff access to concerts and events in 02 arena box”, motivaction.co.uk, accessed 11 December 2012 Murray, J. 2012, “Employee”, about.com, accessed 11 December 2012 Pozin, I. 2011, “9 things that motivate employees more than money”, inc.com, accessed 11 December 2012 Review of literature – employee motivation 2012. 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