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Evaluating the use of Intrinsic and Extrinsic Employee Motivation

Employee motivation is considered as a very important and significant part in the modern business world. It uses as the universal remedy of productivity in organizations evident by the number of literatures on motivation. It is believed that employees are motivated by completion of their needs which they develop while having relationships with others.

Motivation is basically a psychological process. Along with many other physiological constructs, motivation is also one of the cognitive processes which can’t be seen. All which is visible is behavior. So motivation is a factor which is use to determine and understand behavior.

Meaning of motivation:

Motivation is basically a process which consists of three interacting and interdependent factors

Needs

Drives

Incentives

Needs are shaped when a physiological or psychological disparity occurs. Drives are basically action-oriented, which acts like an energy drink towards the achievement of incentives. At the end incentive is anything which will assuage the need and thus reduce the drive. So these are the basic three elements which act interdependently and compile the process of motivation.

Psychologists believe that it is very tough to differentiate various humans regarding their motives, but they would acknowledge that motives are of two types i.e. primary motives and secondary motives.

Primary motives are basically unlearned, biological and physiological motives; as compared to secondary motives they are more all-inclusive. Two important and essential elements of primary motives are that they must be unlearned and physiological so it includes thirst, hunger, and avoidance of pain, sex etc.

Stepping ahead towards secondary motives, these motives are close to learning objects. They basically build up as you move in society more. Its basically includes power motives- need to control and have charge on others, achievement motives- the extent to which a person can achieve while facing exigent goals and affiliation motive- the extent to which an individual ask for approvals, conform their wishes and avoid conflicts with others.

Instead of this it can also be differentiated on the basis of intrinsic and extrinsic motives. Extrinsic motives are those which can be seen, tangible like pays, allowances, benefits etc. On the other hand intrinsic motives are those which can’t be seen, they are internally generated, like feeling of achievement, satisfaction etc.

Theories of work motivation:

There are three theories of work motivation.

Maslow’s hierarchy of needs

Hertzberg two factor theory of motivation.

Alderfer’s EFG theory

These theories can be well explained by the following diagram.

This diagram basically tells us about the relationship between these three theories of motivation. According to Alderfer’s ERG theory, he classifies the needs into three types i.e. existence, relatedness and growth. Existence deals with his basic needs like safety, survival and physiological stability. Whereas relatedness deals with his needs related to others like love. Its basically deal with social relationships. Growth deals with the one’s intrinsic desires and needs which satisfy him and leads him to self-actualization.

Maslow’s hierarchy of need tells us about the five stages of the needs. To motivate some one we have to determine that at which level he is working, and which factor can be a motivation for him. Physiological factor deals with his basic needs like food, shelter etc. safety is a factor which is concerned with his personal safety in the society. Then it comes love and self-esteem, which tells us about his need of respect he wants to get in the society. At the last is self actualization which is related to the people who are self fulfilled and have realized all their capabilities and potential. It is something related to transform their perception into reality.

According to Herzberg two factor theory of motivation, he concluded that satisfaction is related to the content and criteria of job one is performing. One can be satisfy or one can be dissatisfy. Herzberg classifies satisfiers as motivators and non-satisfiers as hygiene factors. Hygiene factor is a term use for the factors which are precautionary.

So these are the three basic theories of motivation and the relationship between these three theories.

IMPORTANCE OF MOTIVATION IN THE MODERN BUSINESS WORLD:

Role of motivation in the modern business world is a very importance factor. But to understand this properly organization should properly and methodically understand the various aspects of human resource. With the help of this organizations can undertake the performances by their employees which are very important for the achievement of firm’s goals and targets.

Generally it has been understood that money and success are the two things which can be act like a motivator but in the modern business world, encouragement, achievement, satisfaction and stability are the other things which are acting like a motivator so that the work force can perform at their most advantageous level. In the modern business world competition is something that is really seen a lot as a vibrant factor getting shaped by unstable facets of the firm. Two factors that have the sudden and immediate influence on the performance of work force and organization are versatility and flexibility. Reason due to which there is an increase in the demand of these two factors is the environment of competition in the business world, for the accomplishment of this thing motivation act as an important part. Generating profits and maximizing earnings is the most general and basic goal of the organization. For the achievement of this goal human resource play a significant and important role. According to Schuler and Jackson, (1999) performance of organization is directly connected and linked to the organizations HRM policies. In modern business world, due to increase competition, organizations have to perform better to get over their competitors. For this thing the most primary thing is to put right people at the right place. But seek of competitiveness and improved performance does not end here, for the consistent and sustained growth, it should be continuously superior to its competitors or rivals. And this thing can be done by the motivation of the employees. By motivating workforce, organization can give better and enhance quality work.

It is also understood by the modern business world that the employees which are satisfied perform more good which leads the firm towards more productivity. Quality of the product is also strongly affected by the motivation.

In the modern business world, organizations understand that motivated crew is something which is very important for the performance.

Here I want to discuss the example of TESCO which is the leading retailer in United Kingdom (UK) they have 2200 stores and employees over 280000 people. TESCO is in communication with millions of customer through its employees. So they continuously keep on motivated their employees so that they can further achieve best quality work and service from its workforce and can satisfy their customer through it.

They completely understand the physiological need of employees by giving them monitory allowances. They also work a lot for the safety and societal needs of the employees so that they can be more comfortable and enough motivated to give the work at their optimum. It also conducts cultural events regularly just to make them feel self esteemed.

Another organization named as General motors, which is the world leading firm dealing with cars and trucks in almost 31 countries of the world and giving their best services their. They basically work on six core values, one of them is motivation. They considered it so important that they completely understand that without satisfying their employees and motivating them they couldn’t satisfy their customers. They completely understand their employee’s physiological, physiological and social needs. They give them handsome salaries along with monthly and yearly benefits for their family as well. They also do a lot for their safety concerns of their employees because they know that they have to work with machines and all. This make their employees realize that their management is concerned for them a lot and can also become a motivational factor for them.

Another well known firm SIEMENS that is in contact with million of customers through the product and services used in their daily lives. List of the product which are designed by siemens are just endless. Siemens provides a lot of opportunities for their employees to get themselves progressed. They believe that by accomplishment of intrinsic needs and motives they can motivate their employees. So they do a lot for their satisfaction, safety. They also do a lot for the society by recruiting fresh people which can make them more enable for the competition exist in the modern world.

They also are aware of the fact that employees working in their organization is from different cultures and religion of world. So they never differentiate between them instead they give them all equal opportunities so that every employee can be motivated and perform their work at the best they can, which together is leading their firm at the high level of success.

UPS, United parcel service, understands the term motivation in different way. They are training their managers in such a way that they can easily understand the needs and demands of their employees and then can motivate them to perform good quality work in time. Mark J Colvard which is manager at UPS gives his example that when he joined this organization he couldn’t understand their employees need very well. Due to which many of them good employees he have lost. But his attitude changed as he got training experience at CIP, Community Internship Program. A driver which was suffering some family problems can’t join the firm back after leave but according to the company rules he was not eligible for that. But Colvard gave him the time off, and saved the precious employee.

There is also an also personal experience of a person named Jerry Slate who is now a days a star sale person at one of the biggest insurance organization of his country. He was also motivated and rewarded by his parents from the very childhood. As a result of which he just showed progress in his high school, college and university. He is now also giving the work at his best at the leading firm. He is soon going to be promoted as a manager of the firm due to exceptional record of his job. He gave the whole credit to his parents which motivated him a lot and helped him to be where he is today.

These are the very few examples and the practical approaches which are found in this modern business world. Modern business world is embracing the psychology of motivation and completely understanding it through which a lot of competitive environment is created. And those who per form good rather at their best can be the part of this business world, others who are neglecting the motivation theories are flop, their turnover rate is much higher. They spent a lot on the training of their employees but couldn’t able to make them satisfy which at the end is just a cause of loss for them.

CONCLUSION:

Although, it is very vital that employees be authentically interested and motivated to give the work at the best, it is uniformly important that organizations should reward them properly for their good performance. However by mingling both intrinsic and extrinsic motivation factors, their effects can be complex. Escalating the growth of the intrinsic motivation of the employee can increase their level of proficiency by which they can perform tasks, have control on their behavior and face the challenges provided by the work environment. Organizations should be cautious that extrinsic rewards do not interfere with the cognitive process. They must completely understand they what the employee want because may be employee can’t be motivated by giving money or extra salary rather he prefers the feeling of achievement. Motivating work force is a multifaceted process and there is no easy answer. But there is a possibility that extrinsic rewards can boost intrinsic motivation on at least appealing and exigent tasks.


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