Understand Ways of Using Motivational Theories in Organisations - Essay Example

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Understand Ways of Using Motivational Theories in Organisations Total Number of Words 761 Table of Contents 0 Report Overview .......................................................................................................... 3 1.1 Brief Introduction ......................................................................................... 3 1.2 Rationale for Selecting Innocent Smoothies and Starbucks ……………… 3 2.0 Motivational Theories ................................................................................................ 4 2.1 Impact of Different Leadership Styles on Motivation ................................. 5 2.2 Comparing the Application of Different Motivational Theories in the Case of Innocent Smoothies and Starbucks ………………………………. 5 2.3 Usefulness of Motivation Theory for Managers ……………………….…. 6 3.0 Importance of Understanding the Trait Theories of Leadership ……………………. 7 4.0 Conclusion .................................................................................................................. 8 References ............................................................................................................................... 10 1.0 Report Overview 1.1 Brief Introduction “The only thing constant in life is change” Francois de la Rochefoucauld (in Pangarkar, 2012, p. 149) The quote of Francois de la Rochefoucauld is very much applicable in today’s business world. According to Hill and Jones (2008, pp. 5 – 6), “a company is said to have a competitive advantage over its rivals when its profitability is greater than the average profitability and profit growth of other companies competing for the same set of customers”. Since the only thing that is constant in this world is change, successful leaders should take it as a challenge on how they can make use of different management technique(s) in responding to these changes. This report will first discuss the impact of different leadership styles on motivation in periods of change particularly in the case wherein the local authority is going through a period wherein organizational restructuring is essential. In the process of comparing the application of different motivational theories within the workplace, several examples on how motivational theory can be used in the workplace of Innocent Smoothies and Starbucks will be provided in details. After evaluating the usefulness of a motivation theory for managers, this report will discuss the importance of understanding the trait theories of leadership. 1.2 Rationale for Selecting Innocent Smoothies and Starbucks The initial business capital of Innocent Smoothies was ?500 worth of fruits before the company managed to earn a good reputation within the local beverage industry in UK (Hickman, 2007; Money Week, 2006). After going through a series of trials and failure, Starbucks also managed to become successful within the U.S. market first before the company decided to expand its business in other countries. Since these two companies are among the few fastest growing companies within the western food and beverages industry, this report will examine the personal traits of its leaders. 2.0 Motivational Theories The word motivation is referring to “the forces either internal or external to a person that arouse enthusiasm and persistence to pursue a certain course of action” (Daft and Lane, 2008, p. 226). It means that employees who are highly motivated at work are most likely to show signs of higher productivity and ability to accomplish organizational vision and goals as compared to a group of employees who are not motivated at work. Employee motivation is important in terms of increasing the overall performance of the company, lowering the rate of employee turnover and absenteeism, effectively managing organizational change, and improving the overall organizational image (Kondalkar, 2009, pp. 245 – 246; Agarwal 1983, p. 319). To motivate employees, leaders should understand the Maslow’s theory and Herzberg’s two factor theory of motivation and hygiene. Maslow’s hierarchy of needs strongly suggest that there are five (5) levels of need that influence a person's behaviour includes. The lowest to the highest needs include: (1) basic needs like food, drink and shelter; (2) safety needs like protection against threat and danger; (3) social needs like the need for belonging and friendship; (4) self-esteem needs like reputation and status; and (5) self-actualization like the need for realizing ones owns hidden for repeated self-development in this hierarchy the things at the top are more important than those at the bottom (Kondalkar, 2009, pp. 249 – 251). For the highest needs to be satisfied, leaders should be able to satisfy the lowest needs. On the other hand, Herzberg's work categorized motivation into two factors: motivators and hygiene’s (Kondalkar, 2009, pp. 251 – 252; Herzberg, Mausner and Snyderman, 1959). Motivators include achievement and appreciation, produce job satisfaction whereas hygiene includes pay and job security, produce job dissatisfaction. 2.1 Impact of Different Leadership Styles on Motivation Even though the local authority has the power to lead the community, not all local authorities are effective in terms of winning the community members’ support to implementation organizational change. In general, resistance-to-change is common in times of restructuring (Burke 2002, p. 262). Therefore, the local authorities should have a good leadership skill to stagnation and suffer from the negative consequences of mismanagement (Kotter, 1999, p. 2). Effective leadership is the key behind the implementation of a successful organizational change (Cox, 2010). In the case wherein the local authority is going through a period of organizational restructuring, the local authority should be able to win the strong support coming from the community members. Ever since the self-motivated employee has gained importance in the study of human relations management, the application of autocratic leadership style is no longer considered effective when leading a diverse group of community members. To persuade the community members to work towards a single vision, George (2004) mentioned that the use of authentic or transformational leadership style is considered more effective. Since each type of leadership approach has its own advantages and disadvantages, it is necessary on the part of the local authority to choose the most effective leadership style when dealing with change. 2.2 Comparing the Application of Different Motivational Theories in the case of Innocent Smoothies and Starbucks Employees who are highly motivated at work are more likely to support the implementation of organizational change. In the case of Innocent Smoothies, the company provides its employees with competitive salary, PRP bonuses, access to private health care assistance, life insurance and critical illness coverage, and tax saving schemes like childcare vouchers and ‘Ride2work’ bike scheme (Innocent Smoothies, 2012). On top of these basic rewards, Innocent Smoothies offers 4 times a year gathering, a free scholarship worth ?1,000 is given to 3 employees each quarter, free cup of tea to the chosen employee of the month, free breakfast, extra holiday each year, Friday beers, free smoothies, and other extra-curricular activities like massage, cake club and the world famous Cheese Club. Starbucks management strongly believes that their employees play a major role in the growth of the company. Therefore, employees at Starbucks are referred to as ’partners’ regardless of their job position. Starbucks mission statement is to “provide a great working environment and treat each other with respect and dignity” is being followed (Kembell et al., 2010). By protecting and valuing Starbucks’ employees, the company is able to establish a healthy organizational culture. Starbucks’ cultural values give each employee a sense of belonging to the company as well as adding meaning to their work. As part of valuing employees, Schultz ensures that each partner and part-time employee is qualified to receive health care, be a part of the Bean Stock program (i.e. opportunity to avail stocks below the fair market value), and receive a free pound of coffee each week (Kembell et al., 2010). Starbucks’ employees could also participate in a 401(k) profit sharing plan. 3.0 Usefulness of Motivation Theory for Managers Motivation Theory serves as a guide on how managers can effectively motivate a diverse group of employees at work. Based on the Maslow’s theory, satisfying the “basic needs” of each employee is possible by offering fair wages, free meal, and/or rest facilities. Eventually, managers can satisfy the “safety needs” by offering job security, safe working environment, or offering pension schemes. Their “social needs” can be met by giving them a welcoming work environment. Their “self-esteem” needs can be fulfilled by giving staff the opportunity to gain higher qualifications at work through scholarship programs. By satisfying the lower needs, employees can achieve “self-actualization”. On the other hand, Herzberg’s two-factor theory explains how job satisfaction and dissatisfaction exist on both scales. It means that hygiene factors like pay and job security will not necessary result to work satisfaction or motivation. Therefore, managers should use other motivating factors like giving staff recognition, responsibility and acknowledge their achievements (Kondalkar, 2009, pp. 251 – 252). 3.0 Importance of Understanding the Trait Theories of Leadership It is important to know the trait theories of leadership by heart because it tells us how leaders can be effective in terms of managing organizational change. For example, commonly observed among the transformational leaders, the use of charisma is very much similar to emotional intelligence in the sense that this group of leaders are capable of closely monitoring or reflecting on the emotions of other people (Palmer et al., 2001). In means that charismatic leaders are those types of leaders with high levels of self-confidence, assertive, and are able to motivate other people in attaining the organizational goals (House, 1997, p. 416). Unlike the charismatic leadership approach, authentic leadership approach is characterized by five unique characteristics known as the purpose, values, heart, relationships, and self-discipline (Shirley, 2006). The qualities of authentic leaders include optimism, giving hope, a sense of self-confidence and resiliency to other people by making employees increase their self-awareness and create positive working behaviour (Luthans and Avolio 2003, pp. 241 – 258). By recognizing the individual talents and value of each employee, authentic leaders are able to inspire, motivate, and improve the personality of each employee as a unique individual that contributes to the overall success of a business organization. Applicable to transformational and authentic leadership approach, George (2004) explained that building a closer relationship with other people is a significant factor behind a successful leadership. Aside from enabling the corporate leaders to easily deal with the rest of the employees, Maslach, Schaufeli and Leiter (2001) revealed that building a closer relationship with the rest of the team members is also effective in terms of reducing the risk of work-related stress and burnout. 4.0 Conclusion The use of effective leadership style is the key behind the implementation of a successful organizational change (Cox, 2010). To win the strong support coming from the community members, the local authority should carefully analyze the impact of leadership on motivation. A good leader should be able to inspire other people. Therefore, the local authority should not only have the drive to accomplish organizational goals but also have the desire and willingness to lead the community members. To do so, the local authority should project a strong self-confidence when managing the people, have successfully acquired competitive intellectual and cognitive abilities, and practice honestly and integrity (Dessler, 2001, pp. 296 – 297; van Maurik, 1999, p. 121). Among the four leadership traits identified by van Maurik (1999, p. 121), I consider sensitivity to other people as one of the key factors behind a successful leadership. By understanding the individual needs and concerns of each community member, the local authority will be able to have the wisdom that could effectively influence and inspire other people without using violence and coercive actions. Aside from influencing other people in a natural way, Huth (2001) explained that effective leaders should have the power and ability to communicate well with other people. References Agarwal, R.D, 1983. Organization and Management. New Delhi: Tata McGraw-Hill. Burke, W., 2002. Organizational Change: Theory and Practice. Sage Publication. Cox, D., 2010. Leadership Article. Leaders Are Not Born. [Online] Available at: http://www.speakersroundtable.com/leadershipcox1.html [Accessed 22 May 2012]. Daft, R. and Lane, P., 2008. The Leadership Experience. Mason, OH: Thomson South-Western. Dessler, G., 2001. Management: Leading people into the 21st Century. Upper Saddle River, NJ: Prentice Hall Publishers. George, B., 2004. The Journey to Authenticity. 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