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IMPACT OF EMPLOYEE MOTIVATION STRATEGIES TO IMPROVE CUSTOMER SERVICE

Creating and maintaining a well-motivated work force is challenging task of a company. The confidence and motivation of work force are being constantly worn down by the inevitable rejection they suffer from buyers as part of everyday activities. To some extent, a high level of employee motivation is derived from effective management practices. To develop motivated employees, a manager must treat people as individuals, empower workers, provide an effective reward system, redesign jobs, and create a flexible workplace.

Empowerment occurs when individuals in an organization are given autonomy, authority, trust, and encouragement to accomplish a task. Empowerment is designed to unshackle the worker and to make a job the worker's responsibility.

In an attempt to empower and to change some of the old bureaucratic ideas, managers are promoting corporate entrepreneurships. Entrepreneurship encourages employees to pursue new ideas and gives them the authority to promote those ideas. Obviously, entrepreneurship is not for the timid, because old structures and processes are turned upside down.

Managers often use rewards to reinforce employee behavior that they want to continue. A reward is a work outcome of positive value to the individual. Organizations are rich in rewards for people whose performance accomplishments help meet organizational objectives. People receive rewards in one of the following two ways:

Extrinsic rewards are externally administered. They are valued outcomes given to someone by another person, typically a supervisor or higher level manager. Common workplace examples are pay bonuses, promotions, time off, special assignments, office fixtures, awards, verbal praise, and so on. In all cases, the motivational stimulus of extrinsic rewards originates outside the individual. Intrinsic rewards are self-administered. Think of the “natural high” a person may experience after completing a job. That person feels good because she has a feeling of competency, personal development, and self-control over her work. In contrast to extrinsic rewards, the motivational stimulus of intrinsic rewards is internal and doesn't depend on the actions of other people. When people think of honoring employees for jobs well done, they may typically think of monetary rewards. However, these may be neither necessary nor the best type of reward. By contrast, frequent, positive feedback provided within an enjoyable, team-oriented environment makes a tremendous difference in employees’ sense of being valued and, as a result, their commitment to your company. With or without financial rewards, these cultural aspects of the workplace could be the smartest investment in the staff and business.

2.0 Problem Statement

McDonalds want to improve service quality and productivity in company; the single most effective thing is improve employee morale and motivation. Fortunately there are many ways to do this from the familiar recognition and reward programs to motivating with good management, teams, training, and more. And the really good news is that most of these programs don’t cost a lot of money.

Motivating customer service employees provides details on the full range of approaches use to improve frontline motivation. It is important to understand exactly how these motivational approaches have been put into action in to improve customer service and provide better customer care with customer satisfaction in McDonalds. It is important to hire the right people after all, you can never motivate the wrong people, create powerful recognition and incentive programs, that fully engage and motivate employees and make the frontline job more interesting, challenging, and rewarding through empowerment, teams, good management, training, and more.

3.0 Research Objectives

To Identify current employee motivation strategies in McDonalds

To Identify effective motivates factors of employees in McDonalds

To Understand the customer feel about the employees’ of McDonalds

To introduce proper employee motivation strategies to improve customer service and employee’s performance in McDonald

4.0 Research Questionnaires

What are the current employees motivation strategies in McDonald

What are the best effective employee motivation factors for McDonald

How is the customer view about the employee of McDonald

What are the most suitable employee motivation strategies to improve customer service and employee’s performance in McDonald

Chapter -02

5.0 Literature Review

Literature Review of Employee Motivation and Customer Service

Many people go to work every day and go through the same, unenthusiastic actions to perform their jobs. These individuals often refer to this condition as burnout. But smart managers can do something to improve this condition before an employee becomes bored and loses motivation. The concept of job redesign, which requires knowledge of and concern for the human qualities people bring with them to the organization, applies motivational theories to the structure of work for improving productivity and satisfaction

5.1 Employee Motivation

When redesigning jobs, managers look at both job scope and job depth. Redesign attempts may include the following:

Job enlargement, often referred to as horizontal job loading, job enlargement increases the variety of tasks a job includes. Although it doesn't increase the quality or the challenge of those tasks, job enlargement may reduce some of the monotony, and as an employee's boredom decreases, his or her work quality generally increases.

Job rotation, this practice assigns people to different jobs or tasks to different people on a temporary basis. The idea is to add variety and to expose people to the dependence that one job has on other jobs. Job rotation can encourage higher levels of contributions and renew interest and enthusiasm. The organization benefits from a cross-trained workforce.

Job enrichment, this called vertical job loading, this application includes not only an increased variety of tasks, but also provides an employee with more responsibility and authority. If the skills required to do the job are skills that match the jobholder's abilities, job enrichment may improve morale and performance.

Today's employees value personal time. Because of family needs, a traditional nine-to-five workday may not work for many people. Therefore, flextime, which permits employees to set and control their own work hours, is one way that organizations are accommodating their employees' needs. Here are some other options organizations are trying as well:

A compressed workweek is a form of flextime that allows a full-time job to be completed in less than the standard 40-hour, five-day workweek. Its most common form is the 4/40 schedule, which gives employees three days off each week. This schedule benefits the individual through more leisure time and lower commuting costs. The organization should benefit through lower absenteeism and improved performance. Of course, the danger in this type of scheduling is the possibility of increased fatigue.

Job sharing or twinning occurs when one full-time job is split between two or more persons. Job sharing often involves each person working one-half day, but it can also be done on weekly or monthly sharing arrangements. When jobs can be split and shared, organizations can benefit by employing talented people who would otherwise be unable to work full-time. The qualified employee who is also a parent may not want to be in the office for a full day but may be willing to work a half-day. Although adjustment problems sometimes occur, the arrangement can be good for all concerned.

Telecommuting, sometimes called flexi place, is a work arrangement that allows at least a portion of scheduled work hours to be completed outside of the office, with work-at-home as one of the options. Telecommuting frees the jobholder from needing to work fixed hours, wearing special work attire, enduring the normal constraints of commuting, and having direct contact with supervisors. Home workers often demonstrate increased productivity, report fewer distractions, enjoy the freedom to be their own boss, and appreciate the benefit of having more time for them.

Of course, when there are positives, there are also negatives. Many home workers feel that they work too much and are isolated from their family and friends. In addition to the feelings of isolation, many employees feel that the lack of visibility at the office may result in the loss of promotions.

5.2 Employee Motivation Strategies

1. External Motivation

There are two kinds of external motivation:

a) Fear -- You had better get this right, or you will lose money, job, respect, relationship, status, etc.

b) Incentives -- If you do this right, you will gain money, recognition, status, promotion, lifestyle, etc.

The impact of external motivation is temporary. When the threat or incentive is removed, motivation is lost.

2. Internal Motivation

Most employees have been exposed to the idea "If it is to be, it's up to me." And they have all been advised to set goals. Many employees set worthwhile goals, BUT their suboptimal thinking prevents them from taking the best actions to achieve the best outcomes. They compromise their own best interests, because they haven't been educated in the art and science of consistent Optimal Thinking.

As an Optimal Thinking leader, you assess and best resolve demotivating company rules, policies and behaviors (e.g. unproductive meetings, destructive criticism, and unclear expectations about employee performance). By minimizing demotivates and optimizing no-cost employee motivation strategies (e.g. maximizing job ownership, setting supremely motivational realistic challenges and goals, providing fair treatment and appropriate recognition, measuring performance progress, optimizing collaboration and teamwork) and educating your employees in the consistent art of Optimal Thinking, you will provide the most conducive environment to optimize employee motivation and productivity.

5.3 Motivation Theories

Motivation has been researched by psychologists and others for many years. A number of theories have evolved which are pertinent to the motivation of employees.

The basis of Maslow's motivation theory is that human beings are motivated by unsatisfied needs, and that certain lower factors need to be satisfied before higher needs can be satisfied. According to Maslow, there are general types of needs (physiological, survival, safety, love, and esteem) that must be satisfied before a can act unselfishly. He called these needs "deficiency needs." As long as we are motivated to satisfy these cravings, we are moving towards growth, toward self-actualization. Satisfying needs is healthy, while preventing gratification makes us sick or act evilly.

The two-factor theory (also known as Herzberg's motivation-hygiene theory) states that there are certain factors in the workplace that cause job satisfaction, while a separate set of factors cause dissatisfaction. It was developed by Frederick Herzberg, a psychologist, who theorized that job satisfaction and job dissatisfaction act independently of each other.

Expectancy Theory proposes that a person will decide to behave or act in a certain way because they are motivated to select a specific behavior over other behaviors due to what they expect the result of that selected behavior will be. In essence, the motivation of the behavior selection is determined by the desirability of the outcome. However, at the core of the theory is the cognitive process of how an individual processes the different motivational elements. This is done before making the ultimate choice. The outcome is not the sole determining factor in making the decision of how to behave.

5.4 Importance of Customer Services

Good customer service is the lifeblood of any business. It can offer promotions and slash prices to bring in as many new customers as company want, but unless company can get some of those customers to come back, business won't be profitable for long.

Good customer service is all about bringing customers back. And about sending them away happy - happy enough to pass positive feedback about business along to others, who may then try the product or service offer for themselves and in their turn, become repeat customers

Good salesperson can be used to sell anything to anyone once. But it will be your approach to customer service that determines whether or not ever be able to sell that person anything else. The essence of good customer service is forming a relationship with customers – a relationship that that individual customer feels that he would like to pursue.

Answer your phone.

Get call forwarding or an answering service. Hire the staff if business need to. But make sure that someone is picking up the phone when someone calls your business.

Don't make promises unless you will keep them.

Not plan to keep them, will keep them. Reliability is one of the keys to any good relationship, and good customer service is no exception. It is important think before you give any promise - because nothing annoys customers more than a broken one.

Listen to your customers.

Is there anything more exasperating than telling someone what you want or what your problem is and then discovering that that person hasn't been paying attention and needs to have it explained again? From a customer's point of view, I doubt it. Can the sales pitches and the product babble. Let your customer talk and show him that you are listening by making the appropriate responses, such as suggesting how to solve the problem.

Deal with complaints.

No one likes hearing complaints, and many of us have developed a reflex shrug, saying, "You can't please all the people all the time". Maybe not, but if you give the complaint your attention, you may be able to please this one person this one time - and position your business to reap the benefits of good customer service.

Be helpful - even if there's no immediate profit in it.

The other day I popped into a local watch shop because I had lost the small piece that clips the pieces of my watch band together. When I explained the problem, the proprietor said that he thought he might have one lying around. He found it, attached it to my watch band – and charged me nothing! Where do you think I'll go when I need a new watch band or even a new watch? And how many people do you think I've told this story to?

Train your staff (if you have any) to be always helpful, courteous, and knowledgeable.

“Do it yourself or hire someone to train them. Talk to them about good customer service and what it is (and isn't) regularly. Most importantly, give every member of your staff enough information and power to make those small customer-pleasing decisions, so he never has to say, "I don't know, but so-and-so will be back at..."

Take the extra step

For instance, if someone walks into your store and asks you to help them find something, don't just say, "It's in Aisle 3". Lead the customer to the item. Better yet, wait and see if he has questions about it, or further needs. Whatever the extra step may be, if you want to provide good customer service, take it. They may not say so to you, but people notice when people make an extra effort and will tell other people.

viii) Throw in something extra.

Whether it's a coupon for a future discount, additional information on how to use the product, or a genuine smile, people love to get more than they thought they were getting. And don’t think that a gesture has to be large to be effective. The local art framer that we use attaches a package of picture hangers to every picture he frames. A small thing, but so appreciated.

Chapter -03

6.0 Methodology

Staff surveys are usually very helpful in establishing whether staff in your company is motivated and therefore performing to best effect. Aside from the information that questionnaires reveal, the process of involving and consulting with staff is hugely beneficial and motivational in its own right, Whilst survey will be unique to McDonalds and staff issues, industry and culture, some useful generic guidelines apply to most situations and own questionnaires on employee motivation.

6.1 Sampling Frame

Research is mainly focused on primary data. Random sampling method is used for the primary data collection. Two questionnaire surveys are conducted for the research study. It is randomly selected 10 McDonalds in all over the country. Then it is selected 100 employees from all over the McDonalds in country. It is randomly selected 100 customers from selected ten McDonalds in all over the country.

6.2 Data Collection

Mainly research is focused on primary data and secondary data also collected from books, journals and informal discussions.

Two questionnaires are prepared to collect all the information required for the objectives. One questionnaire is prepared for the McDonalds employee and other questionnaire prepared for the McDonalds customers. Then the prepared questionnaire is pre tested with five employee and five consumers to make sure that questionnaires are appropriate to get required information. Then questionnaire survey is conducted randomly selected 100 employees and customers. Questionnaires are completed when interviewing the employee and customers.

Chapter -04

7.0 Data Analysis

7.1 Employee Survey

According to the results of the questionnaire survey, out of the sample that were subjected to the survey 75% of chefs and managers said that they were satisfied with the level of flexibility of working hours. However only 61% of the cashiers were satisfied, and it should be noted that out of the cashiers that were interviewed 53% are female workers. The female workers may find it difficult to match their requirement with the available working shifts.

Even though the management had emphasized that the performance related rewarding strategies were in place, the questionnaire analysis shows some contradicting results. Only 37% of chefs, 46% cashiers are satisfied with their salary. But 100% of the managers are satisfied with their salary. Also approximately 37% of chefs and cashiers are satisfied with the benefits, while 75% of the managers are satisfied with their benefits. Further 25% and 38% of chefs and cashiers are satisfied with the frequency and amount of bonuses respectively. However 50% of the managers are satisfied with the bonuses. But 62% chefs, 53% cashiers and 100% of the managers are satisfied with the rewarding scheme. Nevertheless this analysis indicates a more focus and biasness towards the management in terms of rewards and the requirements of the team members are not sufficiently addressed.

However based on the questionnaire analysis, on average 50% of the employees are satisfied with the career advancement opportunities available to them. So the reason for this lower satisfaction level should be investigated.

The results of the questionnaire survey shows that around 76% of the operational level employees (cashiers, chefs, etc) are below 4 years in service. So this can be a symptom of employee turnover or they may have been promoted to higher grades.

So it is identified that the job security for the KFC team members are high, a large number of employment opportunities are available within their group of companies and their career path is clear. According to the questionnaire results 75% of chefs and 100% of managers are satisfied with their job security. However the cashiers show a lower satisfaction rate of 53% of job satisfaction.

Even though the management believes in a supportive corporate culture to enhance employee motivation, the effectiveness of the implementation of the strategies is questionable. This because the results of the questionnaire results revealed that only 50% of the chefs and only 46% of cashiers are satisfied with the existing corporate culture even though there is 100% satisfaction of the management.

7.2 Customer Survey

100 customers were interviewed in this survey, according to their view 69% customers satisfied with customer service delivering in McDonald, 26% customers dissatisfied and 5% customers were neutral in that question.

Product quality and price view of customers were good 78% of customers satisfied with product quality and 82% customers satisfied with product price. According to customer view, researcher can summarized their view as above

Chapter -05

8.0 Conclusions & Recommendations

8.1 Conclusions

It can be concluded that the rewarding strategy which is in place at the moment is somewhat ineffective. One of the major issue with the current system is it is more bias towards the management but does not take into account the requirements of the team members. This fact is proven by the results of the questionnaire analysis. For instance only 37% and 46%% of chefs and cashiers are satisfied with their salary, respectively. However 100%% of the managers are satisfied of their salary. On the other hand 37% and 38% of chefs and cashiers are satisfied with their benefits respectively, while 75% of the managers are satisfied.

It can be concluded that, in general KFC has taken actions tom promote their team members to higher positions in anticipation of motivation. When considering the results of the questionnaire only 0% of chefs and 15% of cashiers have service records of more than 7 years. So the chefs and cashiers may be promoted as managers in course of time. This fact is further supported by the fact that no managers were found to have less than 4 years of experience at Mcdonald. So managers must be promoted from the operational level to their current position.

8.2 Recommendations

It is recommended to revise the existing rewarding scheme appropriately to accommodate the requirements of the team members in terms of amount of economic benefits ensuring a win-win situation for both the employees and the employer.

It is recommended to attend to the issue of high work load of female cashiers, and to the issue of lack of new technology in McDonald. It is emphasized that by bringing in new technology to reduce work load.

It is recommended to design a new shift of working, different to the general shifts that are currently available in order to accommodate the requirements of the female employees.

It is recommended to provide convenient physical working environment for female workers.

It is recommended to assess the training needs of chefs regularly because of the technical nature of the job and because of a chef’s ability to deliver superior customer satisfaction.

Proper training program should be organized and conducted continuously to enhance the knowledge and the skill base of the chefs.


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