The Importance of Motivation - Book Report/Review Example

?The Importance of Motivation Introduction One of the most researched topics in organizational behavior is motivation. It is found to be a crucial factor in the efficient performance and retention of employees in diverse organizational setting. Management should be aware of and recognize the personnel’s motives for their effective leading, guiding, and directing. The dynamics of behavior is a very challenging area to unravel and, if properly understood, can form the basis for morale building and development among the employees which, in turn, results in job satisfaction and high productivity. In this regard, the objective of the essay is to review an article in organizational behavior entitled How to set up incentive programmes and to identify the theoretical framework related to the area in organizational behavior (OB). The discourse would show how recommendations in the article are informed, underpinned or supported by the OB theory and research that has been reviewed. Finally, a reflection on the usefulness of OB theory and research in practical management settings would be proffered, as required. Article Review The article, written by Francis Goss, focused on the use of incentive programmes as motivational schemes in organizations. As indicated, the crucial factors that management must remember in designing incentive programmes are presence of following elements, to wit: “relevant, measurable, open, fair and available to all” (Goss, 2010, p. 33). The failures of incentive schemes were identified to center on management’s inability to relay and communicate details of the scheme clearly and in all levels, and the setting of unrealistic standards and targets. Goss (2010) accurately indicated a six step process as a guide to follow when setting up incentive programs with the following summary points: (1) the design of the incentive program must target all identified relevant personnel; (2) the rewards should be aspirational, meaning, they should be related to specified goals or objectives; (3) the scheme must be communicated through the organizational hierarchy in the most appropriate and effective mode and manner; (4) goals or objectives specific to the incentives must be accurate and clearly defined; (5) the standards and goals for performance must be attainable and realistic; and finally, (6) regular monitoring of progress of employees’ performance as a result of the incentive scheme must be put in place (Goss, 2010, p. 33). OB Theory The Business Dictionary (2010) defines incentive scheme as an “employee motivational program designed to encourage commitment to increasing productivity or in achieving some worthwhile objective such as reducing the number of manhours lost due to accidents” (par. 1). The definition reflected some of the critical elements identified by Goss as essential for its success: it a motivational tool designed to achieve a worthwhile objective through increasing employee commitment in enhancing productivity in the workplace. Weald (2008) examined factors that would determine incentive schemes that truly work: “a combination of reward, recognition and real-time feedback” (Weald, 2008, par. 3). Financial rewards could be augmented by other alternatives such as earning points which can be converted to prices, gift vouchers, vacation trips, and other work-related non-financial items. On the other hand, recognition programs could be designed by management through identifying outstanding performers in a define time frame, say, for the month, for the quarter, or for the whole year. Aside from recognizing the employees’ exemplary performance, they could be given meritorious increases in salary or gift packages, as deemed necessary. Weald (2008) cited the following recognition at ComXo: “One of our clients, ComXo, is running a scheme that is all about the recognition of staff. Borrowing from the Cadbury’s Heroes theme they have branded a ‘Thank You’ board. Each month anyone in the company can post on it a personal thank you to another member of staff – the nomination can be for anything, however large or small. At the end of the month a winner is drawn from those people nominated throughout the month. All winners are displayed on the wall next to the board in the rest room, and – yes, you guessed it – they win a box of Cadbury’s Heroes. To make this more fun all agents have a super hero alias and all nominations are delivered under these aliases. To get everyone’s involvement they even had a charity dress down day – or more to the point, dress-up day – all wearing their super hero costumes!” (Weald, 2008, pars. 11 & 12). Finally, supporting Goss’ contentions, feedback and regular monitoring on the progress of the incentive scheme is a significant step to determine whether objectives set were effectively reached through the motivational scheme. Martires & Fule (2000) averred that “the fairness of the reward system is a significant factor in motivation which should not be overlooked. In reality, individuals have multi-directional interactions with many people in the work place and outside of it” (Martires & Fule, 2000, p. 30). For example, Filipinos typically form informal groups, both inside and outside the organization. They meet regularly to discuss common concerns and share experiences with one another. They observe each other; make comparisons and judgments about one another. In short, motivation occurs in a social context. This is only as it should be since people, after all, are social beings. So, the notion of social comparison introduces a significant dimension which enhances understanding of motivation. Various theories of motivation acknowledged the importance to identify values and needs of the personnel prior to designing the appropriate incentive scheme. In order to understand the worker’s motivation, management should endeavor to know and understand his underlying need and value system, as well as the cultural orientation that forms the basis of the beliefs. Mr. McColough of Xerox Corporation admonished managers that “to command the right kind of loyalty you have to make the needs of the people paramount, not the needs of the organization. If you can meet the needs of the people, you will indeed meet the needs of the organization” (McColough, 1971, p.4 cited in Martires & Fule, 2000, p. 37). Analysis The article written by Goss (2010) provided guidelines in ensuring that incentive schemes would be successful. Upon evaluating the steps indicated, one can deduce that the most significant factor identified by Martires & Fule, as supported and validated by McColough, was not even mentioned at all – the identification of needs of the people. “Motivation is predicated on needs and values of an individual that directs behavior toward goals” (Martires & Fule, 2000, p. 35). Needs are the basic components in our life we cannot do without. These can be prioritized according to the status and role of the person. Values are the life’s artifacts that we prize and cherish most. Like needs, they can also be arranged according to one’s priorities. A need could also be a value and vice-versa. For example, a worker needs recognition and values it too. But not all needs are values and not all values are needs. Thus, while a worker may need a raise in pay, he may value challenging work more. By the same token, another worker values friend and pleasures but he needs to work overtime in order to earn more to build his own house. Motivation is stronger when it springs from a person’s needs, which are consistent with his values. For instance, a typical newly married employee would rather go home immediately after work to be with his or her spouse than work overtime. For the employee, creating a closer bond and commitment with the spouse is a stronger value than material things like money, even if the employee needs the latter to fight inflation. The focus of Goss’ article was more on managements’ perspectives in designing the incentive scheme, which could or could not have taken into consideration the needs and value system of the personnel. However, the rest of the author’s contentions were valid and relevant in the light of OB theories considering the significance of fair and effective communication to all concerned personnel and fairness of the reward system, among others. Reflection on the Usefulness of OB Theories The Incentive Travel Advisors (2011) presented five examples of successful incentive programs that centers giving vacation trips as rewards on the following schemes: (1) “company-wide performance improvement program; (2) company annual manager meeting and awards program; (3) member-get-a-member campaign; (4) customer loyalty program; and (5) sales incentive awards program” (Incentive Travel, 2011, p.1). The company wide performance improvement program required the identification of drastic decrease in productivity that necessitated the development of the incentive scheme which specifically identified targets and goals to be achieved. The specific program that was designed required the identification of “35 of the key players that would most influence the ultimate outcome of this effort. The incentive for these 35 would be an all expense paid trip for the employee and companion on a 7 day western Mediterranean cruise in private veranda staterooms. Incentive awards of varying value were assigned to everyone underneath so that employees could see appreciation for their work” (Incentive Travel, 2011, par. 1). Given the attractive reward, the goals were successfully achieved and even surpassed the industry average by more than 30 percent. The annual managers’ meeting and awards program was designed for a holding company of fast food franchises. Managers, who are crucial point persons instrumental for influencing the bottom-line, were enticed through “cruise ship or a nice land resort and those store managers who have achieved a certain level are allowed to bring their families on the trip with expenses for the employee and spouse fully paid by the company. In addition to business meetings, the company does a very special awards ceremony on the last night that highlights the best performers that have helped company increase profitability for the year” (ibid, par. 2). By combining non-monetary rewards with recognition, the productive financial performance of the holding company is consistently sustained. The member-get-a-member program was similar with the above mentioned in according a “4 day Mexico cruise for two including round trip airfare. A second and third prize of a 2 night 3 day Las Vegas package including round trip air was included. At the end of the campaign, the club experienced a 16% increase in total membership” (ibid, par. 3). The customer loyalty program gave an “Annual Customer Appreciation trip” (ibid, par. 4); while the sales incentive program designed a “dealer Incentive program (which) involved a very exclusive Presidents Club promotion whereby Dealers could earn this prestigious trip based on dollar volume increases in sales over a 6 month period” (ibid, par. 5). Aside from vacation trips, Ginther (2000) revealed that “while analytical and fact-based skills are necessary to design employee incentive programs, the emotional side of the process can't be neglected. A truly effective incentive program marries company philosophy with a "feel-good" factor that can make the difference in the program's effectiveness. When handled correctly, the good feelings generated by such a program can far surpass the actual monetary value of the award” (Ginther, 2000, p.1). The author cited an effective example used by Tektronix executives to entice employees to remember their organization’s strategy, to wit: “key Tektronix executives walk around during the day with American Express certificates in their pockets. At any time, they may stop employees and ask them to name the seven elements of the firm's business strategy. "If you can name them," says O'Connor, "you will win a $100 gift certificate check. That's been a real nice tool to help people remember the strategy."” (Ginther, 2000, p. 2). By linking the need to ensure commitment to the organizations’ goals through an innate awareness of policies, strategies, and procedures, the incentive of giving out substantially attractive gift checks at practically any point in time, workers are encouraged to be ready and proactive in sharing management’s thrust towards the accomplishment of goals. Further, Ginther (2000) cited CME’s Waters to comprehensively define the essential elements of a successful incentive plan. Ginther quoted Waters as indicating that “for incentive programs to be successful, they "must be communicated, be measurable, have realistic goals and be consistently applied. All managers and employees should be aware of their existence and how they work. Additionally, the criteria for eligibility should be published so everyone knows what it takes to be a winner."” (Ginther, 2000, p. 3). Interestingly, these factors are consistent with Goss’ six step process in designing incentive programs. Conclusion Incentive programs are crucial motivational tools which are designed for various reasons. Their success is measured in terms of how effective the goals by which they were initially designed were attained. The essay paved the way for attaining its objective of reviewing an article written by Goss in organizational behavior entitled How to set up incentive programmes. The discourse identified the theoretical framework related to the area of incentive programs in organizational behavior (OB). The research proffered how recommendations in the article were informed, underpinned or supported by the OB theory and research that has been reviewed through actually applications relayed by organizations that designed and achieved their objectives with the assistance of strategically designed incentive schemes. Consistent with Goss’ contentions, for incentive programs to be successful, apart from the eminent responsibility of managers to identify the needs and values that motivate one’s personnel, the essential elements of ensuring accurate and well defined goals being effectively communicated along the lines, and setting realistic standards and targets, must be taken in consideration. Further, there is always the need to measure and monitor the progress of the incentive program in terms of its ability to achieve the defined goals. The effective manager is one who endeavors to know and understand the worker in light of his individual and organizational variables and in light of his expectations, effort spent, motivational strength, chosen outcomes, perceived equitable reward, goal achievement, and satisfaction level. Motivation is the core of the challenged posed to management. Motivation runs through the gamut of managerial functions, particularly those of human resources management and organizational behavior. Its effects are both pervasive and extensive. Reference List Business Dictionary 2010. Incentive Scheme Definition, [Online]. Available at: http://www.businessdictionary.com/definition/incentive-scheme.html [Accessed 20 January 2011]. Ginther, C 2000. Incentive Programs That Really Work - Brief Article, [Online]. Available at: http://findarticles.com/p/articles/mi_m3495/is_8_45/ai_65143952/ [Accessed 21 January 2011]. Goss, F 2010. How to set up incentive programmes, [Online]. Available at: http://www.peoplemanagement.co.uk/howto [Accessed 20 January 2011] Incentive Travel Advisors 2011. Examples of Successful Incentive Programs, [Online]. Available at: http://www.incentivetraveladvisors.com/Sucessful_Examples.html [Accessed 21 January 2011]. Martires, CR & Fule, GS 2000. Management of Human Behavior in Organizations. National Bookstore, Philippines. McColough, P 1971. Xerox World. Cited in Martires & Fule, 2000. Weald, P 2008. Incentive schemes that work, [Online]. Available at: http://www.callcentrehelper.com/incentive-schemes-that-work-193.htm [Accessed 20 January 2011]. Read More