The dynamic concepts behind Motivation in Companies

Published: Last Edited:

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

Now a day organizations are using a dynamic concept called Motivation to motivate their employees to attain good efficiency and results. In this report we are going through some of the important motivation theories and analysing which one is the best for a particular situation. Here we also discussing about stereotyping and halo effect, and how it affects a person to make good or bad decisions or impressions.

Stakeholders are having the key role in most of the organizations; any organization has to give importance to its stakeholders to attain a better position in this competitive world. For doing this every organizations has to fulfil its responsibilities towards its stakeholders. In this report we are discussing about how M&S has fulfilled its responsibilities towards its stakeholders. Organizational culture is one of the key elements which play a vital role in any organization's success well in some times failure. In this report we are discussing how M&S's culture makes them to fall and how they are recovering and building a new revised culture to rebuild their position.

Motivation is making the people around you to do work more efficiently. Motivation makes people to like the work and make the people willing to work effectively. Motivation is a practically proven concept of improved productivity and better results. The present day organizations are desperately willing to use the concept of motivation to improve their productivity and to reduce employee turnover. We in the present day are having many motivation theories which are having their own positive and negative points. One as a manager has to choose one which he feels the best and appropriate for that particular situation. Once if he chooses a wrong theory it may leads to apathy, so the manager needs to be very careful while choosing and implementing the motivation theory. One can consider job performance as a function of ability to work, motivation and support from the organization. Motivation theories are basically classified into two categories;

I. Need Approaches:

Herzberg's Two Factor Theory

Alderfer's ERG Theory

Maslow's Hierarchy of Needs

McClelland's Learned Needs Theory

II. Cognitive Approaches:

Goal Setting Theory

Expectancy Theory

Equity Theory/ Social Comparison

In this report we are taking an example of an industrial work place situation and here we are working which motivation theory is the best suite for this chosen situation. As we know industrial work place is a complex work place with high performance huge machines, high voltage power cables, and hot conditions and so on. Most of the people are not willing to work in that situation. To motivate the people in those situations we have to choose a best theory of motivation. Frederick Herzberg has developed a theory called Two-factor theory. Hertzberg stated that the opposite of satisfaction is not dissatisfaction and it is not-satisfaction, and vice versa. And opposite of motivation is not de-motivation it is no-motivation and vice versa. He revealed that there are two different sets of factors affecting motivation and work.

One set of those which if absent cause dissatisfaction. These factors are related to job context, they are concerned with job environment and extrinsic to the job itself. These factors are the Hygiene factors. They serve to prevent dissatisfaction. The other set of factors are those that if present serve to motivate the individual to superior effort and performance. These factors are related to job content of the work itself. They are motivators. The strength of these factors will affect feelings of satisfaction or no satisfaction, but not dissatisfaction. In case of the industrial work place the workers must feel satisfied to be motivated. To motivate workers to give of their best, the manger must give proper attention to the motivators or growth factors. Hertzberg emphasises that hygiene factors are not a second class citizen system. They are as important as motivators, but for different reasons. Hygiene factors are necessary to avoid unpleasantness at work and to deny unfair treatment. Management should never deny people proper treatment at work. The motivators relate to what people are allowed to do and equality of human experience at work. They are the variables which actually motivate people. So by implementing this two-factor theory in our chosen industrial work place, with the hygiene factors the worker feel comfortable and satisfied and they are ready to be motivated. With the growth factors that can be motivated and the organization can attain increased productivity as the result of thee two factors.

Stereotyping and Halo effect

When people from other cultures conclude that all Americans wear baseball hats everywhere they go and eat fast food, that are engaging is stereotypes. When people say that Muslims do not have time to do anything but pray because they pray five times a day, they are engaging in stereotyping. While the examples seem foolish, let us assume you that we have heard them expressed on numerous occasions. These examples are representative of an endless number of cultural stereotypes people use when talking about other groups. Stereotypes are collection of false assumptions that people in all cultures make about the characteristics of members of various groups. Stereotypes can have either positive or negative implication on the people. Stereotyping makes us to fix to particular assumption about a group of people who belongs to same group. It is not fair to think all the people who belongs to that group are same and having same characteristics and behaves a similar way. Sometimes our assumptions may be wrong which may effect badly. We develop stereotypes when we are unable or unwilling to obtain all of the information we would need to make fair judgments about people or situations.

Halo Effect is the process by which the perception of a person is formulated on the basis of a single favourable or unfavourable trait or impression. The halo effect tends to shut out other relevant characteristics of that person. A candidate for employment who arrives punctually is smart in appearance and friendly may well influence the perception of the selectors, who then places less emphasis on the candidate's technical ability, qualifications or experience for the job. A new member of staff who performs well in a first assignment may perceive as a likely person for promotion. A particular danger with the halo effect is that where quick judgements are made on the basis of readily available stimuli, the perceiver may become perceptually blind to subsequent stimuli at variance with the original perception and notice only those characteristics that support the original judgement.

Stakeholder groups

Every organization involves a system of primary stakeholder groups with whom it establishes and mange relationships. Stakeholders are the individuals and groups who can affect the vision and mission of the organization, are affected by the strategic outcomes achieved, and have enforceable claims on the firm's performance. Claims on the firm's performance are enforced through the stakeholder's ability to withhold participation essential to the organization's survival, competitiveness and profitability. Stakeholders continue to support an organization when its performance meets or exceeds their expectations. Also recent research suggests that firms that effectively manage stakeholder relationships outperform those do not maintain. Stakeholder relationships can therefore be managed to be a source of competitive advantage.

An organization is having its responsibility to tell its stakeholders what is going on in the organization to make them feel comfortable and to make them know everything in the organization how it runs. Every organization is having different types of responsibilities to different groups of stakeholders. Organizations may divide the stakeholder groups on the basis of importance and giving high priority stakeholder groups and low priority stakeholder groups. Stakeholders are mainly;








In this report we are taking Marks& Spenser (M&S) group PLC as the chosen company and discussing how it attempted to satisfy its responsibilities towards its stakeholders and how it succeeded in that approach. M&S was establishes in 1884. It is a very old and one of the biggest British retailers. Now M&S is having 895 stores among 40 countries. M&S group sales for 2005/06 were £7.8bn producing profits before tax of £751.4m. As such a big organization it has to be very careful with the stakeholders and to maintain good relationship. Every organization is having different responsibilities towards different stakeholders. An organization to be successful it must be fulfil those responsibilities and satisfy the stakeholder. There are different ways to fulfil the responsibilities towards stakeholders, in this report we are discussing an approach that M&S attempted to satisfy its stakeholder groups.

Let us take some stakeholder groups who are internal to the organization like customers, employees etc. every customer and employee at some time may have a thought how a product is manufactured, how it is cultivated, how the market will be etc. once they know it how it is producing they may like it more because of the reason that they know how it is produced. In January 2006 M&S launched a campaign named "Look behind the label" a joint marketing and communications campaign to tell customers and employees the stories behind the products. To take the awareness of the campaign M&S conducted Press advertisements, in-store messages and a new section in their website let people know how they source and manufacture their clothes and food. With this effort the customers and employee and the people will came know how M&S producing their goods, with this the quality and brand name improves. Here are some more listening from the stakeholders and how M&S fulfilled them are given below;

Customers& Employees

Listening: In August 2005, customers told M&S that they wanted to know more about the qualities that support Marks & Spencer products.

Action taken: In January 2006, M&S launched 'Look behind the label' marketing and communications campaign.


Listening: Investors who specialise in CSR performance asked M&S to begin to address the environmental and social issues associated with palm oil sourcing.

Action taken: M&S have recently joined the Roundtable on Sustainable Palm Oil to help find solutions.

Social groups

Listening: Fairtrade certified cotton only became available in November 2005 when the Fairtrade standard was launched. A number of non-governmental groups discussed the need for a large UK clothing retailer to sell Fairtrade certified cotton clothing.

Action taken: In March 2006, M&S were the first major high street retailer to launch a range of clothing made from Fairtrade certified cotton.

"To make the best use of technology, we must use it to support and develop our business, not adapt business to technology." "Technology should be our servant and not our master."

The above statements are telling how to use the technology and how not to use it. As we see the present days are full of technology. Starting from the industrial revolution technology is playing a vital role in organizations. Technology will be a useful tool if we use it in a proper way, if not it will yield one to failure very rapidly. Can you imagine a day or even an hour with out power supply in this present world? Can you imagine a day or a week without checking your e-mail? Technology is our servant, we should not let it become our master, unless we are vigilant, the information age can overwhelm our privacy rights before we even know it has happened. With the fast growing technological changes organizations are trying use best of it for their success. In this process some business companies are adapting their business to the technology and following it blindly. To make best use of the service of technology one must have control on the technology, the time when the technology is out of our control one can say that the company is in danger. To avoid this one must use it to support and develop the business but not to adapt the business to technology.

Technology is there to do the service for us like a slave; one who doesn't have the control on it will become slave of the technology making technology the master. Here I am explaining one example where I myself became a slave to the technology making the technology as master. I always save my phone numbers, bank card pin numbers, useful addresses and all in my phone. One day I am out side my house and I am alone I have to call one of my friends whose number is stored in the phone, and suddenly the phone went off. After that I thought of calling another friend whose number I can remember a bit. I need to make a call from public telephone so I thought of withdrawing some money from my card but I can't able to do it as my card pin number is saved in my mobile as well. On that occasion I felt that I became slave for my mobile phone making it as master from that occasion I stopped saving any phone numbers, pin numbers on my phone and I started remembering them.

Organizational culture

When organizations are examined from cultural view point attention is drawn to aspects of organizational life that historically have often ignored or understudied, such as the stories people tell to newcomers to explain how things are done around here, the ways in which offices are arranged and personal items are on are not displayed, jokes people tell, the working atmosphere, the relations among people of an office and obviously angry and perhaps competitive in another, and so on. Cultural observers also often attend to aspects of working life that other researchers study, such as the organization's office policies, the amounts of money different employees earn, reporting relationships and so on. A cultural observer interested in the surfaces of these cultural manifestations together, sometimes in harmony, sometimes in bitter conflicts between groups, and sometimes in webs of ambiguity, paradox and contradiction. In this report we are going to discuss about Marks& Spencer's organizational culture and how its culture made them to fall from the top British retailer position to down and how they are recovering.

Marks& Spencer

As we already discussed that M&S (Marks& Spencer) was founded in 1884 by Marks. From that stage it has grown step by step to top high street British retailer for the past few years. As we know the world is uncertain things will not be the same every time, in the late 1990s M&S started falling from its top position it was clarified in their financial report April 1999. Till that stage M&S was the biggest and high profile British retailer where they think the quality comes first. Since that financial report M&S has conducted many surveys to find out what goes wrong? Where is the fault? Why it is suddenly happened? And many more question regarding their fall. They found that the reason fro the losses and fall because of the company profile and mainly the organizational culture.

In the earlier years when there are no such big competitors' people showed their interest on M&S culture and image. In that stage their company profile and their organizational culture made them to sit on the top, but years are passing on and things changed. But the M&S are stick to the culture which made them to sit on the top chair. They always tried to maximize the brand image rather than understanding the customer. M&S has failed to react to the environment around it. The basic culture of M&S as;

M&S is having all British suppliers which they think helps to their image

M&S stores are standardized with identical layout and products

M&S is always fail to cop up with the current fashions and trends

M&S mangers are having many restrictions makes them not to move freely

In other words M&S is having some type of monotony embedded init

With all the above cultural habits M&S has been succeed in the earlier years but now the competition has grown up and thinking of the people as well changed. Now M&S started to unfreeze from the old culture and started a new culture of understanding the environment. In this way they have improved their chain of suppliers to avoid negotiation from the suppliers, and make the managers move freely with out any restrictions to improve sales and improve brand name as well. In previous days M&S only taking care of the quality and ignored the pricing factor, which make them, loose the customer. In the current world the competitors are providing same quality but at reasonably lower costs to sustain themselves and to stand in a better position in the retail market.

Now M&S has coming out of its old "take it for granted" style and culture and started understanding and reading the environment and reacting according to the environment and at the same time not loosing their brand image.


One thing we are sure about is motivation is very important thing in every organization to improve its productivity and performance. One who motivates the employee in a right way is going to be successful every time. In this report we discussed how Frederick Herzberg's two factor theory suits to the employee motivation and how it works to motivate an employee. In this report we also discussed about stakeholder groups and how to fulfil the stakeholder responsibilities and we are going to affect if we ignore our responsibilities. Organizational culture tells us how any organization is going and how good or bad an organization is. Organizational culture helps to build a brand image for any organization. So one must take extra care about its organizational culture to develop its brand name at the same time improve performance and to attain much more profits.

In this report we discussed about how M&S has fulfilled its stakeholder responsibilities and also we discusses about M&S organizational culture and how its culture make them to stand on the top position and how it make them to fall. We also discussed how M&S is recovering and rebuilding its organizational culture to rebuild its position on the British high street retail market.