The Different Methods Used In Motivation Business Essay

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There are three motivation theories, each of them has their distinct approaches to motivate employees and in some particular situations. According to CiteHR (2011) Taylor's scientific management which is 'fair days pay for fair days work' (piece rate) believe that workers work purely for money and motivated by money. For instance, UPS and McDonald's still used some basic concepts of Taylor till today, however, the system dehumanize the workplace reduce workers' enthusiasm (Ricky W and Gregory M, 2010: 535). McGregor's Theories X and Y include both financial and non financial motivational methods. According to The Times 100 (2011b), Tesco provides both financial and non financial motivational methods, such as lots of rewards for its employees to improve their output, improve personal skills to achieve promotion and enhance working conditions just like what are shown on the figure. Through different motivation methods, employees can be more motivated and responsible when satisfy with good working conditions or other rewards from the company. Herzberg has two components, motivators and hygiene factors, both factors should be done by the company simultaneously and try best to minimum their dissatisfaction so that they will endeavor to finish their jobs (Accel-Team, 2010). For example, The Royal Bank of Scotland Group (RBS) utilized recognition for good jobs, opportunities for promotion, providing flexible benefits in terms of health care and pensions and setting targets to motivate their employees (The times 100, 2011c).

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It is widely believed that financial motivation methods are more effective in the modern world, such as job enrichment, teamworking and empowerment. The first method is job enrichment, which increasing employees' responsibility and vertically expanding their jobs (About, 2011). Job enrichment put employees to take more responsibility and has its root in Herzberg's theory. For example, planning a task, quality supervision, work supervision and ordering materials, which improving workers' self-confidence. According to Ford (1969), there had been a 27% reduction in termination rate and cost saving of 558,000 dollars over one year after the installation of job enrichment in the Shareholders Relations Department at AT &T. So as Olivetti and Fiat in Italy, Renault in France, Texas Instruments in USA, Vovlo Inc. in Sweden, Daimler-Benz and Volkswagen in Germany, etc. In addition, Reif and Schoderbek stated that 41 of the 200 companies reduced costs and increase profits after using job enrichment (Open learning world, 2010). It is no doubt that encouraging employees to get involve in decisions making and strategic planning and giving each other team responsibility for their own quality control, instead of controlling by managers are important (Mind tools, 2011). The second one is teamworking, which can be presented in Theory Y and show employees' creativity. Through working together, productivity can be better, and encouraging product innovation (Business Link, 2011). For instance, BBC changed employees' attitudes and behaviours with teamworking's help, the department including BBC worldwide, corporate IT and the License Fee Unit. The BBC achieved "boosting staff engagement", "creation cohesion across departments", "setting the agenda for change". After a combination of workshops and coaching, productivity was increased, conflicts across teams were reduced; services were better (Teamworking, nd). Owning to polled talents, teamworking, which is a key element for successful company, enables employees to strengthen their confidence and improve their motivation. Last but not least, empowerment is another effective method in Herzberg's motivator factors which can improve employees' motivation. It gives official authority to employees to make decisions and control their own activities then make them feel trusted and powerful. Besides, it enhances employees' enthusiasm and becomes willing to put full effort into work. For example, Starbucks empowers their employees to make customers feel good and empowers their employees to make good decisions. Employees correct mistakes themselves and customers receive a free voucher (Work Happy Now, 2008). Employees helping senior managers to finish the jobs can encourage them to do better and become confident instead of weary of the jobs. Empowerment using in Starbucks makes customers satisfied with the services, which can be the best advertising in the world, and that is the essential reason why Starbucks is the largest coffee shop in the world.

Despite non financial motivation method, financial motivation methods are important as well, it includes fringe-benefits and performance-related pay. Fringe-benefits are payments other than wages and salaries, such as a company car, free lunches, and private medical insurance. This method relate much to theory Y in McGregor and the hygiene factors in Herzberg; fringe-benefits motivate employees by other factors except money and provide good conditions to workers. Treasury Regulations provides fringe-benefits including free automobile for employees, free tickets for sporting or entertainment event and free travel on an airplane provided by an employer (The CPA Journal, 2009). A fringe benefit is one of the best financial motivational methods, which motivated employees with all kinds of excellent working conditions. The next one is performance-related pay, which linking the annual salary of employees to their performance in the job. The better the employees or the team carry out the work, the more employers pay (Directgov, 2009). It relates to theory X and Taylor, employees perform well in order to get more rewards, the better employees perform, the more payments they can get. For example, Simon and Shilah both started work for Company E 's call centre as customer services operators, they both stayed on the same starting pay, but the supervisor observed Simon performed more active and stayed late sometimes for work, however, Shilah is not hardworking as Simon, therefore, Simon received higher payment (EHRC, nd). The financial method, performance-related pay, encouraged workers to get more payments through performing well at work, is also mainly motivated by money.

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In conclusion, as the time goes by, employees' motivations are changing all the time and being more complex. Taylor's piece rate 'fair days pay for fair days work', Theory X and Theory Y in McGregor and Herzberg's motivators and hygiene factors, all of them have much relations with both non financial and financial motivation methods. Job enrichment, team working and empowerment should be mentioned in non financial motivation methods; fringe-benefits and performance-relate pay are also should be referred in financial motivation methods. In light of what presented above, both non financial and financial motivation method are important to the motivational theories. Moreover, the examples above demonstrated how the motivational methods relate to the theories. Through making good use of financial and non financial motivation methods and combined with the theories, employers in this modern world can motivated staff in correct ways and improve efficiency swiftly.

Reference Section:

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Figure Reference:

The times 100 (2011)

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http://www.thetimes100.co.uk/case-study--motivational-theory-in-practice-at-tesco--132-396-3.php

Access date: 19th March, 2011