Motivation at Norsk Petroleum - Case Study Example

1. Basically, motivation is loosely defined as the incentive or motivator given to employees to improve their performance as a way of encouraging productivity and ultimately growth of the company. Some motivators often reflect the content of the job where no superior person in the management can dispense them upon individuals. Content theories of motivation in this case, posit to the effect that there is no individual who can give the other person satisfaction that is related with accomplishing especially a challenging job, but it is self derived (Carrell et al 1995). On the other hand process is concerned with turning around the fortunes of the company. Thus, a close analysis of the given case at Norsk Petroleum (NP) reveals that regardless of the senior, prestigious posts characterised by handsome benefits held by Elizabeth and Ola, they still resigned to join other equally smaller companies than NP. This can be attributed to various motivators, particularly content related, that often influence employees in their performance. The decision by Elizabeth and Ola to resign from their jobs aptly sums up the notion that human beings are motivated by various factors other than financial gains earned in the form of remuneration packages. Whilst there are various motivation theories attributed to different levels of motivation of the employees, it can be noted that Maslow’s hierarchy of needs, goal setting and Herzberg’s two factor theories of motivation are more suitable in giving a critical analysis of both Elizabeth and Ola’s decision to quit in spite of promises of more perks. However, it should be noted that they are not disgruntled by their current jobs in any way. Maslow’s hierarchy of needs is perhaps the most appealing theory for HR professionals. Thus, according to Maslow, when a need occurs, motivational tension develops and is directed towards satisfaction of that need, (cited in Carrell 1995). The hierarchy comprises of five levels of needs namely physiological, security, social, self esteem and self actualisation needs. These needs build from grassroots levels up to the point where some skilled workers feel that they should be rewarded on the basis of their importance, coupled with their performance to the company. As far as company growth is concerned, there is need for the workers to feel that they are part of it through engaging them to participate directly especially in decisions that affect its operations. The ability to create a sense of belonging among the employees is very important as far as growth of the company is concerned since they are the drivers who determine the pace at which the organisation grows. In the case of Elizabeth and Ola, the need for self esteem is applicable to their decisions to resign. This need is influenced by factors such as status as well as level of responsibility within an organisation. Employees often feel that they should be part of goal setting and decision making process to go along with their status such as managerial positions. This need provides an opportunity to display skills and talents as well as due recognition that may come in form of names being inscribed on stationary used in the company such as letterheads or pens. From this assertion, it can be noted that the need for status in the company is very significant. For instance, Elizabeth is equally happy by joining a small company Petrowest where she is entitled to manage small teams as well as negotiating contracts. In actual fact, she is excited by the additional responsibility she will undertake unlike at NP where she just concentrates on specialised duties. Therefore, it is folly and suicidal for such big companies to ignore the immediate needs of skilled workers such as decision making or at least just participating in that process as they would feel that they are part and parcel of the organisation than mere workers whose value and inputs are not considered at the end of the day. The goal setting theory on the other hand posits that job performance can be increased when the individuals are given measurable goals rather than ordinary performance standards (Carrel 1995). Goal setting is seen as a challenge that motivates the employee to improve performance. In this case, it seems both Elizabeth and Ola are just hard working and brilliant employees but have no opportunities to set goals. The most appropriate way would be management by objectives (MBO). According to Carrell (1995) there ought to be objectives set for influential workers so that they pull their resources towards fulfilling those objectives set. Any organisation should have drivers and the skilled personnel is tasked with steering such objectives in to motion. Another equally interesting theory that can be attributed to the decision by Ola and Elizabeth to quit their jobs is Herzberg’s Two-Factor theory of motivation. He identified factors which cause dissatisfaction as hygiene and those which cause satisfaction as motivators. However, he argues that while poor working conditions result in dissatisfaction, ideal working conditions do not necessarily lead to motivation or satisfaction (Carrell et al 1995). Pay increases alone may not be adequate to motivate the employees. Motivators in this case reflect the content of the job, and they reflect that there is no individual who can give the other person satisfaction that is related with accomplishing a challenging job but it is self derived. They are concerned with a sense of responsibility, achievement and recognition among others. Basically, it can be noted that both Elizabeth and Ola’s decisions are to a larger extent influenced by the need of having responsibility tasks to perform such as decision making that creates a sense of belonging thereby motivating them than material or financial gains. 2. In order to attempt to suggest recommendations to stop the haemorrhaging of talent from the company, it is imperative to identify the causes of the problem as a basis of finding a solution. It can be noted that the recurring problem of workers resigning at NP is mainly a result of specialised tasks associated with their job titles. Specialisation is mainly characterised by performing similar tasks over and over again and is more concerned with productivity (Chris Brewster et al 2000). In other words, specialisation is goal oriented which tends to neglect the human needs to a certain extent. The main disadvantage of this concept is that it creates monotony of doing just one thing repeatedly. In most cases, employees have little chances of determining how they ought to perform their duties which translate into lack of interest and motivation. In view of the theories of motivation discussed above, it is recommended that the company ought to adopt measures that take into consideration the human needs as a way of motivating the workers as well as stopping the haemorrhaging taking place in the company. Enlarging the list of job tasks to be performed by employees is another measure that can be put in place to avert boredom associated with performing only one task repeatedly. This can include delegation of responsibility to oversee the operations taking place within the same departments. At least an employee feels a sense of belonging to the company as a result of the responsibility he has which can motivate him than the feeling of just being a productive ‘tool’ whose efforts are not duly recognised. Setting collaborative teams is another strategy that can be implemented by NP to avoid the recurrent staff resignations. Skilled workers should be encouraged to work as teams as a way of exchanging ideas than the traditional way of reporting to the supervisor. This encourages motivation among the workers as they would have the ability to have their ideas heard. The most effective strategy that can stop haemorrhaging from taking place is job enrichment which is particularly concerned with organisations with employees with high levels of knowledge and skills such as NP in this case. According to Carrell (1995), the worker should decide how the job is done, planned, controlled and even make decisions concerning the whole process. At the end of the day, this stance can motivate the employees by making the job more exciting and challenging. Skilled workers are normally motivated by seeing the fruits of their contributions and efforts than just performing routine tasks though handsomely remunerated. Thus, it would be highly recommended for NP to consider initiatives which give their skilled workers the ability to make decisions or at least influence the decision making process as a way of creating a sense of belonging to the company which in turn highly motivates them. 3. In most cases, people are motivated by different factors by virtue of their experience and levels of positions they hold in any given company. In view of the case study given above, discussion of the five selected motivators highlighted below would be limited to skilled workers. In most cases, skilled workers are motivated by the level of their responsibility, status, opportunity for development, recognition of success as well as interest in the job. The discussion of these motivators would be premised on the assumption that senior skilled workers are often offered remuneration packages that are commensurate with their experience as well as market rates of payment. In this context, material or financial motivators may not be a serious bone of contention but still, these people would also have needs that ought to be satisfied. The level of responsibility held by someone is a great motivator as it attaches some form of importance to that person within the organisation. This motivator goes hand in hand with that of status. More often than not, people occupying prestigious managerial posts are motivated by the status they derive from their positions. When you have a high post, you are indeed motivated by the sense of importance within an organisation. This can be attributed to Maslow’s hierarchy of needs theory discussed above which states that once people feel to be part of the organisation, the need for self esteem then comes in and is more to do with status. Most people have hopes of development when they initially join a company. Given the opportunity, it would be everyone’s hope to see himself occupying a higher position in the company than that at entry level. This is a great motivator as it would in turn mollify him as a result of recognition of his efforts being accorded to him. When one’s efforts are recognised and rewarded, it shows that he is an important figure in the company whose contributions are significant to the overall organisation. Herzberg’s two factor theory of motivation contends that positive job opportunities motivate workers to do their best in terms of performance as they would be satisfied by the recognition they would get in particular as reward. Above all, interest in the job is the greatest motivator that is often acquired after successful fulfilment of lower level motivators. This is when an employee feels to be strongly attached to an organisation to such an extent that he would wish to safeguard all the organisational interests. At this stage, the worker is no longer working for the sake of financial benefits alone, but the job would be a form of strong attachment he would be proud to be identified with. Over and above, it can be noted that NP is in a predicament of loosing highly skilled workers to smaller, independent organisations as a result of its approach of specialised duties. In the case of Elizabeth and Ola, it seems they have decided to resign following job offers with smaller companies which do not offer specialised duties. Elizabeth in particular is excited by the fact that she will be responsible for managing small teams contrary to the way of operation at NP where she just concentrates on specialised duties. It can be noted that skilled workers are not only motivated by financial benefits but other motivators such responsibility and status among others as discussed above. Reference Becker, B. & Gerhart, B. (1996). The impact of human resources management on organisational performance: Progress and Prospects. Academy of Management Journal, Vol 39 Boxall, P. (1995). The challenge of human resource management. Longman Publishing group, London Bratton et al, (2007), Work and Organisational Behaviour Brewster, C. et al (2003), Contemporary Issues in Human Resources Management: gaining a competitive advantage, 2nd Edition, Oxford University Press, SA Carrell, R. et al (1995), Human Resources Management: Global Strategies for managing a diverse workforce, 5th Edition, Prentice Hall, USA. Michael Armstrong (1999), Human Resources Management Practice, 7th Edition, Kogan Page Limited, USA. Leggie, K. (1995). Human resource management: Rhetoric& realities. McMillan, England. Read More