Human Resource Management and How to Motivate People at Work - Essay Example

What is the Best Way to Motivate People at Work? A Review of Empowerment Literature Introduction Motivation is the means behind a person’s behaviour and it is what pushes one to satisfy his or her individual needs and be successful in a task. The reward is a sense of effectiveness and fulfillment in one’s environment, and so it varies from person to person, and the level of motivation is correlated with the quality of the work output. It stems from both an intrinsic and extrinsic force, in that intrinsic motivation comes from the worker’s interest and satisfaction in the job, while extrinsic motivation is given in the form of rewards that accomplishment of a task brings. Thus, it is evident how important motivation is in the workplace as this affects the caliber of an organisation’s performance and ultimately, success. The employees are the greatest asset of any company and most often are the sole component that can set a company apart from its competitors. With proper personnel management that develops an empowered workforce, the competition experienced by virtually all industries can be overcome. The current paper proposes that the best way to promote motivation at work is through increasing their sense of empowerment. The Relationship between Empowerment and Motivation Empowerment is defined as a means to allow employees to carry out decisions and a intrinsic drive to have accountability for one’s behaviours (Bowen & Lawler 1992, 1995). This implies that empowerment is an outcome of management and employee efforts. Corsuon & Enz (1999) note that contemporary research has focused on psychological empowerment, particularly on the phenomenology of the employee, whereas in the past, the concept has focused on decision making and delegation of tasks (Blau 1964) Thomas and Velthouse (1990) further defined the construct as an intrinsic drive apparent in four clusters. These are meaning, competence, self-determination, an impact; these mirror an employee’s evaluation and perspective of her job and role. The first cluster, competence, refers to the extent to which an employee can carry out activities with competence when he attempts to do so; it pertains to proficiency of a skill. On the other hand, meaning is the premium attached to an objective or a mission, which is evaluated through a person’s own set of values or personal criteria. Moreover, meaning is the match between one’s job and contribution to work on one hand, and the cognition, affect, and behaviours on the other. Empowerment allows for an increase in employee motivation because empowered employees see meaning in what they do and since the goals of the company are consistent with what they attach value to (Staples 1990). Self-determination pertains to having a sense of freedom in managing one’s behaviour. This cluster is reflective of the will, intellect, and freedom to select one’s course of action. Finally, impact is the degree to which one is able to affect a desired objective or goal Spreitzer, 1995). The researcher set out to read literature on motivation, and found the propositions of the empowerment theory most appealing. The said theory is also known as self-efficacy theory, and this expresses that motivation and performance are reliant on the extent to which a person is convinced on his capability to accomplish an activity or task (Bandura 1989). In effect, empowerment theory is an expansion of Bandura’s (1989) theory on self-efficacy, which has been popular among enterprises. The empowerment theory asserts that motivation is likely to be enhanced when one’s sense of competence and self-determination are improved as well. Thus, when employees have a high “can do” attitude, they feel that they are capable; self-efficacy is a key facet of empowerment (Quinn & Spreitzer 1997). The relationship between empowerment and motivation, lies in the finding that empowerment causes an increase in intrinsic motivation. Eylon & Bamberger (2000) note that the modification of the work environment is influenced by what drives managers to empower their people and the corresponding reactions which they anticipate from those they would like to empower. In the move to empower staff, those in authority allow the latter to take on their power, authority, and management rights to their staff, reinforcing the need to collaborate. Sherony & Green (2002) assert that this relationship between manager and staff is characterized by a give-and-take loop, where employees attempt to give back or return the kindness or goodwill of their bosses when they perceive that such a treatment is carried out with utmost sincerity and deep concern. Conger and Kanungo (1988) assert that self-efficacy is critical in enhancing the drive of an employee to deliver high performance. Thus, raising the bar of difficulty of a task allows the individual employee to sharpen his skills while succeeding in what he does; this eventually enhances his sense of self-efficacy. Empowerment may increase employee motivation when the company is able to accord training and other growth initiatives; and the resources that the employee needs (Staples 1990). Moreover, empowerment through an enhancement of their autonomy and authority may also be effective at motivating them to deliver good performance. A key assumption is that self-efficacy is adequate to be able to promote a high sense of capability and self-determination (Staples 1990). HRM Practices that Promote Employee Empowerment and Their Relationship to Employee Motivation Employees’ sense of empowerment may directly be influenced by high performance work practices (HPWP) is the concept that is employed by HRM policies, and these include extensive recruitment and hiring processes, incentive rewards and performance management guidelines, and thorough employee training, which encompasses skill, knowledge and capabilities-enhancement, empowerment and personal growth of employees (Farnsworth 2009; Sparham & Sung 2007). HR policies is a means of empowering employees. Policies enforced on the personnel are more strategic, and promote commitment to the job rather than mere compliance. Job roles are delineated more clearly, and job design is improved to stimulate the workers’ interest. Assessment of performance and subsequent rewarding must be clearly provided. Realistic goals are set that is attainable by a competent worker. Further training to enhance the technical skills of the employees, and to empower them to increase self-efficacy and autonomy of task decisions, are also provided. Innovations in technology are issued, to enhance productivity and give competitive advantage over competitors. Competitive salaries, benefits and incentives are delivered depending on the quality of work. This reward package includes the core wage, indirect prizes such as cars, and incentives when performance reaches beyond expectations such as in bonuses and awards. Communication among the levels of employment is clear and open. These are just some of the practices widely used in HRM movements, but it must be noted that each strategy is always dependent on the circumstances of the organisation, making all HRM policies unique (Sparham & Sung 2007; Yeung & Berman 1997; Lashley 1999). Thus, it is vital for the management to be first committed to any endeavour they wish to employ to their organisation. Sound HRM practices are thus vital in increaasing employees’ sense of empowerment, which will eventually drive them to be motivated an dto reach the organisation’s goals. This involves informing the company’s managers on the goals of their HRM program, and training them how to be motivated, too. It is only afterwards that they could motivate and sustain their lower-level staff, as Lashley (1999) indicate that only if leaders are motivated and supportive of the employees, is the staff driven as well. Lashley & McGoldrick (1994) gives four empowerment methods based on goals set by the organisation, linking empowerment to motivation. One is empowerment through participation, which gives employees certain decision-making powers that were previously held by supervisors or other higher-level staff. Another is empowerment through involvement, that allows for decisions to stay with the management, but contributions are encouraged from the employees as well. Consultations and team problem solving sessions are the main approaches in this type. Third is empowerment through commitment, which strives to give incentives that encourage employees to take more responsibility for a set of tasks, and is considered a combination of the two previous strategies. Lastly, is empowerment through delayering, which is more focused on the management rather than on the workers. Its goal is to permit managers to focus on the sources of earnings, better reception to the needs of the clients, on more efficient management expenses, and the cultivation of entrepreneurship. Removal of several layers of managers (i.e. removal of supervisors and the like) and managerial empowerment are the strategies involved here (Lashley, 1999, pp.177-178). Case Studies on Empowerment and Motivation A research by Haynes & Fryer (2000) investigated the effects of human resource management in a New Zealand hotel that has taken a new strategy to improve their service quality, focusing on increasing the sense of empowerment and motivation of employees. HRM is important for giving excellent service, and a favorable association is seen between good HRM policies that empower employees and the performance of the organisation. With the changes made, it is evident that betterment of customer service is the only way for the hotel industry to make one hotel distinct from its competition. Superior customer service results to customer satisfaction, also giving financial rewards, but this can only be accomplished if the employees are given the aptitude they need. Recognizing the roles of the employees is a show of success of the HRM policies, and this is seen in the Key Performance Indicators used by the hotel. Out of 14 criteria, four apply to the employees: employee satisfaction ranking first, staff training in second, the seventh place concerning with health and safety at work, followed by staff turnover. Furthermore, people values are forefront of guest and of profit values when values are put forward to the management and the workers. These people values involve new HRM changes such as a better focus in training and business tasks, career development, and staff fulfilment (Haynes & Fryer, 2000). One focus of management is improving the skills of the employees to increase their sense of motivation. A skills matrix was given to the line staff, depicted through visual training boards showing necessary skills. Meetings in every department have also been drawn attention to, with a committee formed with representatives that have been chosen per department; these 12 committees meet monthly with the HR Director and two HR managers. In addition, all personnel are encouraged to attend regular general meetings, where the General Manager of the hotel presents awards and incentives after the customary speeches. These broad-ranging meetings are enacted in order to strengthen the vision and the principles within the new policies. In addition, duties across all departments have been changed, to allow more independent decision-making when settling guests concerns and to produce better adjustability in scheduling. As a matter of fact, the company’s vision specifically includes empowering their employees in order to attain supremacy and encourage development in all aspects of the service they provide (Haynes & Fryer, 2000). After two years of the company’s efforts to increase sense of empowerment, very favorable results were seen. Employee satisfaction, measured by the Employee Satisfaction Index (a survey with ten questions), rose steadily from 3.76 (out of 5) in March 1996 and 3.79 in 1997, to 3.87 in April 1999. Sick leave declined at a steady rate, from an average of 2.4% in the first three quarters of 1998 to 2.2% during the same months in 1999, and staff turnover averaged 2.5% in the first nine months of 1999, significantly different against the 3.7% over the same period in the previos year. Furthermore, it was in the sectors of customer satisfaction and financial gains that showed the most positive results. The Overall Guest Satisfaction Index was increased by 13.2% from the beginning of 1998 to the end of 1999. The proportion of customers giving a ‘good’ and ‘excellent’ rating also progressed within the two years (Haynes & Fryer, 2000). The New Zealand-based hotel used HRM policies and strategies that are set for updating the skill levels of the employees and the commitment to the aim of excellence in service. The strategy employed is closely correlated with the motivation of employees and the attainment of the objectives of the company. Considerations to the behaviour and feelings of the employees, and not excessive economic interests, empower the employees to engage in incessant self-development that is drawn intrinsically, to lay on additional effort in serving their customers, and to instil in them that the success of the business depends in the satisfaction of their guests, which can only be brought upon by excellent service that is self-motivated. (Haynes & Fryer, 2000). In another setting, Bacardi-Martini UK, a consistent top-notcher in the 100 Best Companies Survey, owes their success to empowering, high performance work practices that they employ, to increase the sense of motivation of their employees. A culture described to be people-focused, is held by four values - productivity, accountability, creativity, and teamwork (PACT). The PACT produces a set of standards where performance is based, regardless of position and duties that each employee is responsible for. Bacardi acknowledges that their success is dependent on the commitment and happiness of the personnel in their duties, and thus the company seeks to attain this through benefit packages that foster family values. Examples include free meals, private health coverage, life insurance, etc, that are provided to the employee’s family. Also, flexible work schedules are available, to promote a balance of work-life, recognizing that people cannot only be focused on their jobs. The management believes that by committing to family values of the employees, they will garner employee dedication and retention. This has resulted to intrinsic satisfaction on the part of the employees. Furthermore, in order to improve the company’s goals, surveys are regularly given that encourages all employees to contribute in the ideas of business, leadership, and performance. These enable improvements to be made on the lacking areas that may otherwise have been overlooked. Also, with morale indicators that are concerned with assuring the well-being of staff, this instills a sense of integration and empowerment of the employee to the company. All of these practices show motivation rooting from effective HRM policies that contribute to the success of the company (Sparham & Sung 2007). Other similar studies involve Delaney & Huselid (1996), who, after investigating 590 firms form the National Organisations Survey in the US, found favorable correlations between empowerment initiatives, employee motivation, and perceived organisational performance. In addition is Ichniowski, Shaw, & Prennushi (1997), who looked at the productivity effects of empowering HRM practices in 17 companies employing steel production lines. They found that productivity is increased when there is incentive pay, formation of teams, flexible task assignments, employment security, and training, as compared to the absence of empowerment strategies such as strict rules, hourly pay, and close supervision. The employees that perceive trust from the management are better driven to produce quality work, showing that incorporating HR tactics that motivate the workers result to favorable benefits for both the employee and the employers. Also, in a study of 101 companies in Russia, the effects of empowering HR strategies is found to be advantageous on organisational performance. Using measures of motivation and employee retention as an HRM outcome, it was found that non-technical skills training and high wages ensure job satisfaction of higher-level staff, with job security as the most important predictor of regular employee satisfaction (Fey, Bjrkman, & Pavlovskaya 2000). Following from the case study mentioned above in Eastman Kodak, several improvements have also been observed as a result of empowerment activities done through HRM. With declining performance, CEO George Fisher chose to reinstall employee satisfaction by giving employees a ‘great place to work’ in. Consequently, with an increase employee satisfaction of 80% from 1993 – 1995, the market value also increased by 90% in the same years. This is in addition to satisfaction of the shareholders, which helped maintain the balance between the key aspects of any successful business (Yeung & Berman 1997). This threefold satisfaction is also observed in the Sears company, where it success is rooted from the dedication of the employees to work, the loyalty of customers to shop (again and again), and the commitment of shareholders to invest. The significance of this method is that it recognizes the importance of the people to deliver profits and success. Thus, bonuses are tied with the performance of all managers, and it was found that for a 5% improvement of employee behaviour, there is a 1.3% increase in customer retention, an increase of 1.04% in revenue, and 0.4% in profits (Yeung & Berman 1997). For companies that already enjoy great success and reputation, and have a steady base of employees, improvements in HRM are still welcome in order to see potentials that have yet to be tapped. Such enhancements have been proven to increase the sense of motivation of employees and eventually lead them to strategy achievement. Harley-Davidson, manufacturers of high-end motorcycles, is one such company that desired to improve their HRM practices, at it is a relatively new strategy that the company has attempted. After gathering information from all staff at different levels, and comparing the company with other industries as well, they decided to focus on upgrading their human capital strategies, such as in better benefits administration, increasing employee participation, and improving employee development. Results show that organisation performance improved, and employee loyalty has been strengthened as well (Accenture 2005). Contrasting Empirical Findings to the Positive Relationship of Empowerment and Motivation Quinn & Spreitzer (1997) opine that one constraint of the theory of self-efficacy is personal competence. This is because some employees are not convinced of their capability to carry out a task since they are not effective at it, based on their previous failures. Thus, training, support from their superior, and enhancing the degree of difficulty of a task may not always be effectual at surpassing the lack of competence. In such cases, it will not be effective at increasing the level of motivation of employees. Horie, Inuzuka & Ikawa (2008), demonstrated the relationship between one facet of empowerment, which is autonomy, and employees’ intrinsic motivation. Using a sample of 242 employees from the New Product Development Department, the study has suggested that autonomy is increased when people are allowed to make decisions about what they should achieve and how. However, there were no significant positive relationships found for autonomy (i.e. empowerment) and intrinsic motivation. Yet another study which does not uphold the positive relationship between empowerment and employee motivation is that that of Thorlakson and Murray (1996). They assert that there is inadequate research backing for this relationship, and thus proceeded with assessing the impact of an experimental study which introduced empowerment as a controlled variable. The relationship between the latter and employee motivation as one of the dependent variables was ascertained. 81 employees were enlisted to participate and were grouped under the empowered employees category. On the other hand, 90 employees were not provided with empowerment initiatives and were thus grouped under the control group. The outcomes of the research indicate that there is no significant relationship between empowerment and employee motivation. The authors prudently noted that the timing of the study may have had critical impact on the results; as downsizing efforts were currently being carried out, thus making the impact of empowerment initiatives negligible compared to the negative impact made by the company-wide downsizing efforts. Conclusion The foregoing paper justifies why empowerment practices have been chosen as the best way for motivating employees. The paper has shown that empowerment may be used for increasing employee motivation. This eventually lead to the successful achievement of the objectives of the organisation. Empowerment recognizes the intrinsic needs of the people. A win-win situation results, where individual personal growth is seen, tied with the overall success of a business. Empowerment is said to be one of the effectual means of letting employees utilise their innovative ideas to enhance the performance of the enterprise to which they belong along with an improvement in their own work life. It is characterized by a common picture of the end goals of the organisation; clear parameters of one’s accountability; and the intent to enhance the competencies of the employee. It is also part of empowerment to ensure that the employee has all the resources required for him to carry out a task effectively (Chaturvedi 2010). Enterprises have to reailse that management on its own cannot instill empowerment just like a training program. However, it can create an atmosphere conducive to empowerment. The review of related literature shows that empirical research is still wanting; there needs to be more research efforts that must be carried out to gain more conclusive insight into the relationship between empowerment and employee motivation. There are some studies which have yielded a non-significant outcome on the relationship between the two; however, there are more empirical researches which indicate that favourable organisational outcomes from the utilization of empowerment, particularly through human resource best practices. References Accenture, 2005, Accenture helps Harley-Davidson create a more strategic HR function, [Online] Available from Apr 22, 2010. Bandura, A 1986, Social foundations of thought and action: a social cognitive theory. Englewood Cliffs, NJ: Prentice Hall. Bandura, A 1988, ‘Human agency in social cognitive theory’ American Psychologist vol. 40, pp. 1175-1184. Blau, PM 1964. Exchange and power in social life. New York, NY: Wiley. 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