Motivation Theories in Organization - Case Study Example

BUSINESS MANAGEMENT By of school 13 March Motivation in Management In the presentcompetitive global market managers are confronted with the need to motivate their employees so that they can produce the best in achieving organisational objectives, and at the same time, realizing their personal goals. Therefore, the motivation has turned out to be an important tool for managers to inspire employees both at individual and group level to produce effective and efficient results. Most individuals fail to understand what the driving factors in motivating employees are, with managers believing that the external environment is the force behind it. However, each has their set of motivating forces, and it is the responsibility of the manager to identify and address these motivating forces (Halepota, 2009). Motivational management requires managers to have knowledge in the implementation of successful motivation programs to create a positive work environment, hence increase productivity. Although the motivation varies, the management must identify with their employees on an individual level for successful programs. Motivation for better performance relies on achievement, job satisfaction, professional growth and recognition of employees. The concept is well explained by different scholars who have advanced various motivation theories to explain motivational factors that can be either extrinsic or intrinsic. Motivational Theories McGregors Theory X and Theory Y is an approach advanced by Douglas McGregor on employee motivation. Kreitner alludes that, the theory develops on the work of a previous scholar, Herzberg, who in his theory says that employees get motivated by hygiene conditions at work and other motivators (2009). McGregor classifies managers into two categories; that is, Theory X managers and Theory Y managers. According to the Theory X manager, his employees are unmotivated and dislike work thus his role is to focus on hygiene and to control employees. The assumption made is that safety is the primary concern of an employee. A Theory X manager assumes that employees dislike work hence the need for them to be controlled and threatened for them to work and that the average employee loves direction, dislikes responsibilities and desires security, above all. Most organisation principles today are based on these assumptions giving rise to a tough management with tight controls and punishments and soft management that aims at bringing harmony at work (Kini and Hobson, 2002). The approaches are wrong because employees need not only financial rewards, but also some higher order motivation in order to achieve their goals too. Theory X managers are authoritarian, and they do not give their employee the opportunity to behave in the expected fashion. Similarly, Theory Y focuses on Herzbergs motivators and work to help employees in achieving higher levels. According to Ng, Skitmore, Lam & Poon, a Theory Y manager assumes that “expenditure of effort in work both mental and physical is as natural as play or rest and that punishment and control are not the only ways to make employees work” ( 2004, p.140). If job satisfaction is met, then employees will be committed to organisational goals and objectives. The underpaying principle in theory Y is that man learns under proper conditions not only to accept, but also to seek responsibility. The approach gives room for sharing of ideas and employees are consulted giving a vast array of possibilities and decision-making, and implementation becomes easier. Another motivation theory is the needs based motivation theory of Abraham Maslow that defines progression of needs from the lowest subsistence needs to the highest level of awareness. According to Cassidy & Kreitner, the basis of the theory is that employees get motivated by unsatisfied lower needs and physiological needs ought to be satisfied before higher needs are satisfied (2009). According to Maslow, the general type needs that is; physiological, survival live, safety and esteem must be met before a person reaches self-awareness, and as long as people want to meet these needs, they will work in order to move towards self-actualization. According to the hierarchy of needs, there are employee motivation openings that motivate each employee through their style of compensation, management, role definition and organisational activities. Koontz & Weihrich affirm that as a manager, one should look to meeting physiological needs by providing ample lunch breaks and recuperation, and give salaries that will allow workers support themselves with life essentials (2010). In addition, the manager should strive to satisfy safety needs by providing a safe working environment relative to job security and freedom from any threats. Meeting social needs will generate a feeling of recognition, belonging and community, through strengthening team dynamics; this will drive the employees to work more as the management appreciates them. On the other hand, esteem motivators will mean recognizing achievements, providing status and assigning important projects to the employees to make them feel valued and appreciated. The highest order need that is self-actualization requires the manager to offer challenging and meaningful tasks to employees to enable innovativeness, progress and creativity, according to organisational goals and objectives. However, as a manager, one should bear in mind that individuals are not motivated by the same needs since most are in different stages of their careers, hence their motivators are very diverse. Therefore, as a leader, the manager should understand the current level of needs of the employee and leverage those needs for motivation at the workplace. Applying the Theories of Management The organization of choice in this paper is British Petroleum. It is a multinational oil and gas company headquartered in the United Kingdom. The organisation has over 100 years’ experience in oil drilling, refining and transportation, production of petrochemical products, lubricants, light and heat energy and fuel (BP plc, 2015). British petroleum has retail brands and subsidiaries all over the world. Examples are BP Connect, BP Express, ARCO, Amoco, Burmah Castro and BP Travel Centre among others. In applying Maslows theory, the manager has the responsibility of meeting the needs of an employee in a safe environment and proper remuneration. For instance, job insecurity and threats of layoffs will block the person from growth to higher needs (Robbins, 2009). Employees will work hard to ensure their jobs are secure at the expense of their needs, and if they still feel insecure, they will fulfil their needs somewhere else or burn out. At British Petroleum, the management is focused at ensuring the safety of employees and promoting their general wellbeing. In fact, the values of British Petroleum are excellence, one team, courage and safety. The organization has an employee health and wellbeing programme that has so far been very successful. The organisation also holds campaigns aimed at promoting employees physical wellbeing from time to time. An example is the ‘Go Home Healthier Campaign’ (Executive Grapevine International Ltd., 2014). Organisations have established cafeterias, vending machines, and drinking fountains will help satisfy physiological needs. It gives employees ample time to get meals and resume to their daily chores faster. Therefore, it saves time that can be put into organisational activities, at the same time satisfying employee needs. At British petroleum, these resources are available to employees. In fact, apart from food facilities, British petroleum employees are provided with access to routine health checks, exercise clubs and fair price gym memberships, as well as routine on-site massages (Executive Grapevine International Ltd., 2014). Companies in the quest to meet security need the pay employees wages and salaries to meet their economic needs. There are also retirement benefits, and companies provide medical cover to their employees and provide other fringe benefits. These motivate employees to work hard to meet set goals and targets. In addition to that, job descriptions are well defined, and organisations avoid abrupt changes and if they have to make changes they communicate through memos. In the United Kingdom, British petroleum pays employees at 5% above the average salary in the market (Payscale Inc., 2015). This was found out after British Petroleum employees’ salaries were compared to those of employees in similar organisations such as Marks and Spence plc, Sainsbury’s Supermarkets and Tesco plc (Payscale Inc., 2015). Medical covers are also available to employees. Team spirit encourages social interaction giving employees an opportunity to share and exchange ideas. Employers ensure it is possible by organising workshops and team bonding activities all that British Petroleum takes seriously. Managers should periodically praise their employees and allow them a chance to participate in decision-making. Vaughn explains that, delegating responsibility and assigning individuals challenging tasks raises their esteem (2003). Managers have also been providing additional training for their employees to prepare them for challenging tasks and encourage creativity. Maslow’s theory is limited in that there is little evidence that supports its strict hierarchy, and there is a limited substantiation that individuals satisfy motivation needs one at a time. Although theory X and Y tend to be unrealistic, most employees and managers fall in between the extremes. The theory presents a rigid model of management, but it remains the guiding code to the management to develop processes that help organisational development. In a production industry, theory X will apply to employees who will want to be given directions and theory Y will not apply. Theory Y is applicable in managing managers and professionals. Theory Y is applicable in problem-solving in organisations as a communication tends to be two-way and employees are given the opportunity to feel part of the management. The participatory approach works for most organisations compared to the authoritarian approach. British Petroleum relies on highly skilled personnel from different parts of the world (BP plc, 2015). Due to the fact that most employees are highly skilled in their respective fields, they play a major part in problem solving. The management approach used is therefore a participatory one. Although theory Y gives management an edge over theory X, it has a limitation in that it affects management of promotions and remuneration and is inapplicable in mass store production management. Effectiveness of Motivational Theories in Organisation Implementation of these motivational principles can enable the company achieve desired goals and targets. Favourable conditions will therefore favour employees to give their best to increase productivity in a company. According to Schermerhorn, “rewarding outstanding employees will create competition among them and thus unknowingly contribute more to increasing productivity of the company” (2010, p.38). Theory Y for instance, allows managers to consult during decision making and engage in an interactive approach with employees and in the process, new ideas and innovations about how the organisation can move to the next step are suggested and if proper implementation is done, that will be a success. Recognizing extraordinary abilities and talents will increase innovativeness and creativity that will give the company competitive edge over other competitors. Employee training as a motivator mean individuals have up to date skills, and there is continued expansion in knowledge (Kopelman, 2008). Information keeps changing and the trainings are an asset in the management as incorporating new ideas will not only equip the staff well, but will also contribute to company growth and meeting of objectives. In terms of performance, motivation will enable the company improve in market share, profits and increased sales. Rewarding sales executives who perform exceptionally will drive them to work hard so that they get the reward and in the process, they will have increased sales hence more profits. Where there are better communication channels, sharing and teamwork is promoted among employees as there is an understanding between employees and their management. That means organisational targets are well understood, and every employee works towards set targets and goals. Proper job description as a motivating tool ensures there are no overlaps in obligations and roles thus encouraging specialization in the areas individuals feel they are good at performing (Robbins, 2009). Static roles also ensure managers give employees suitable work conditions that they can dwell in, and it gives them surety that whatever they are doing will not go unnoticed, and credit falls rightly on them. A company providing a healthy environment will help its employees to thrive and develop towards achieving their personal targets and needs. Apart from paying employees’ salaries, they need assurance of secure jobs hence they will feel safe and will settle to focus on satisfying other personal needs. An employee will not see the need to move if they are paid well and they receive rewards. Other benefits like retirement and medical benefits as motivators will make employees feel comfortable as their medical needs are catered for, and there is still a reward they are going to get once they retire. Employees are human beings and treating them well through better communication and organising team building events will make them feel part of a family through the interactions. Job security, better remuneration and a safe working environment among other motivators contribute to employee retention in organisations. If an individual feels secure in his current job position, it is rare to find him moving from one organization to the other, in search of security or better pay. Secure employees tend to maintain a good relationship with their current employers because their lives have some certainty. Punishment and threat, as theory X suggests, are not better motivators if an organisation wants to retain employees and reduce turnover rates (Casssidy and Kreitner, 2009). Employees work best in environments where they feel safe. Recommendations To cover the gap presented by the use of theory Y in management when it comes to promotions and salaries, a form of authority should be exerted so that employees can be able to feel comfortable in that any resolution arrived at, and for whoever is getting the reward, it should be the authority for the final answer. Organisations should prioritise safe and better working conditions for their employees if at all they expect more productivity. Giving employees long-term contracts instead of short-term contracts that are discouraging to reduce turnover rates is a worthy initiative(Vaughn, 2003). Job descriptions should be well articulated to avoid overlaps in responsibilities and roles as this will cut on cost while increasing productivity. Communication channels should be well established to enhance quality relationships between the management and employees. Theory X applies when giving instruction and directions and is key for managers to understand so, but in problem-solving and decision-making, a liberal approach is applicable; one where every opinion matters. Employees should be rewarded in ways that enhance their performance by focusing on true rewards for specific types of performances and outcomes. Managers should avoid focusing on traditional ways of recognition since although they could be nice, this does not motivate individuals. References BP plc, 2015. BP. [online] Available at: < http://www.bp.com/en/global/corporate.html> [Accessed 13 March 2015]. Cassidy, C. and Kreitner, R., 2009. Supervision: Setting People Up For Success. Mason, OH: South-Western Cengage Learning. Executive Grapevine International Ltd., 2014. BP Reaps Benefits Of Employee Health And Wellbeing Programme. [online] Available at: [Accessed 13 March 2015]. Halepota, H. A., 2005. Motivational Theories and Their Application in Construction. [online] Available at: [Accessed 13 March 2015]. Kini, R. B. and Hobson, C. J., 2002. Motivational Theories and Successful Total Quality Initiatives. [online] Available at: [Accessed 13 March 2015]. Koontz, H. and Weihrich, H., 2010. Essentials of Management. New Delhi: McGraw-Hill Publishing. Kopelman, R. E., Prottas, D. J. and Davis, A. L., 2008. Douglas McGregors Theory X and Y: Toward a Construct-valid Measure. [online] Available at: < www.jstor.org/stable/40604607 > [Accessed 13 March 2015]. Kreitner, R., 2009. Management. Boston: Houghton Mifflin Harcourt Publishing Company. Ng, S. T., Skitmore, R. M., Lam, K. C. & Poon, A. W, 2004. Demotivating Factors Influencing The Productivity Of Civil Engineering Projects. [pdf] Available at: < http://eprints.qut.edu.au/4136/1/4136.pdf> [Accessed 13 March 2015]. Payscale Inc., 2015. Average Salary for British Petroleum (BP) Employees. [online] Available at: < http://www.payscale.com/research/UK/Employer=British_Petroleum_(BP)/Salary> [Accessed 13 March 2015]. Robbins, S. P., 2009. Organisational Behaviour: Global and Southern African Perspectives. Cape Town: Pearson Education South Africa. Schermerhorn, J. R., 2010. Management. Hoboken, N.J.: John Wiley & Sons. Vaughn, R. M. G., 2003. Strategies at Work: Motivators get Creative. [online] Available at: < http://journals.lww.com/nursingmanagement/Citation/2003/04000/Strategies_at_work__Motivators_get_creative.5.aspx > [Accessed 13 March 2015]. Read More