Human Resource Management Is A Central Activity Commerce Essay

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Organizations, and more particular human resource management faces many new challenges in our contemporary world. Human resource management is a central activity in any organization and is becoming more important for its development and success. Work is becoming more diverse, demanding and dynamic. Employers seek more flexible and adaptable staff, possessing skills to meet the ever so changing requirements of the work environment. On the other hand, employees also have higher expectations for the work offered to them. Changes in the content of work in organizations are trends that require changes in the traditional models for human resources management. The key that distinguishes one organization from another is precisely its strategic policy for its employees.Consequently the question in motivating employees and achieving their belonging to the organization became one of the main prerequisites for organizational efficiency and success. To survive and succeed, organizations have to adapt to the dynamically changing environment, they must rely on their staff's skills and abilities, as well as on their efforts, their desire to achieve something in their lifetime.

To motivate employees means to direct them into certain direction, to undertake the necessary steps and the results of the effort will shortly follow - the company will go up and to the right. The main purpose of motivation is to achieve a sense of a common goal among personnel and to ensure that there is a harmony between the wishes and needs of the organizations and the wishes and needs of employees. (Armstrong) Consequences for the organization in lacking motivation of employees are high level of turnover and low efficiency. Each organization spends resources to education, training and professional development of its employees. But not every organization is able to make its members to use their potential and gain return on what is invested in them.  If organizations are unable to motivate their employees, to engage them, make them feel part of a larger whole and give meaning to their lives at work, they are doomed to failure.

In this paper I am going to analyze the situation and the motivational methods applied in the Bulgarian company named "Kendy". The analysis is going to include policies adopted by the company that made the company so successful, and prove that motivation of employees is the key for "building" a profitable business.

"Candy Ltd is a family company founded in 1991. It started gaining popularity in the market with its soluble drinks "Step Drink". The product range has gradually expanded to food supplements and medicines, probiotics as "Lactoflor", soluble vitamins "Supravit", "Vegas", spices "Picantina", soups and mashed potato "Chef's Best", etc. In 2004 Shareholders of "Kendy" invested in another company called "Lactina", which is situated in the Bulgarian town Bankya. It develops and produces modern organic products - probiotics for humanitarian purposes, monocultures of lactic microorganisms for enrichment of foods and drinks. 

Nearly 80% of the output of the two companies is exported to Serbia, Macedonia, Romania, Greece, Hungary, Czech Republic, Slovakia, Malta, Algeria, Vietnam and other countries. (Todorova) But what make this company different than other companies in the same industry are their motivational methods used by its managers.

Today an important motivating factor for employees is to have a guaranteed salary.Wages must ensure the living standard of employees to meet their requirements and properly reflect the work done and effort that staff make in carrying out the work. A company policy of "Kendy" is to have a consistent pay structure that is above the industry average. It is certainly a trade-off for the company but this kind of strategic decision increases not only the quality of the products but above all the motivation of employees. This way the company can hold on to the valuable workers and prevent them to switch to their competitors. An opportunity is given for a raise in the end of every year based on the performance of individual workers and therefore those who have a positive assessment are rewarded with increased wages.This type of merit-based pay gives the opportunity for individuals to increase their performance.(Fein, 49-51)

Policy incentives are also expressed in "Kendy" as a bonus to be given in carrying out an activity that benefits the company. These bonuses are given every 3 months to employees, who have distinguished themselves with outstanding recent performance, including high level of production and being punctual (Todorova). This is a way to keep track of recent performance and increase motivation. Тhe likelihood of actions that leads to a certain type of reward is increased. This inevitably leads to a desire of employees to repeat the actions that led to this incentive. And this goes vice versa. When an employee does not cope well he will not be rewarded, which in turns leads to an internal need and desire to change, carrying out a success both for the company and for the worker himself.(Thorndike, 221) This method is widely used in the United States and has recently being introduced in countries like Bulgaria. I have personally experienced the effectiveness of this method while working in a chain of supermarkets called "Shaw's" during my summer work and travel. It was mainly targeting students like me. When I was doing a good job and not being late for work I was rewarded with a bonus in my paycheck. Bonuses might vary in size depending on the company's capacity, but has been proven to be valuable in motivating employees.

Having discussed the extrinsic reward of the company such as bonuses and wages it is important to mention some of its characteristics that makes it unique for the industry. I am talking about the small policies that have large impact on the employees' behavior and motivation. "Kendy" is organizing team-buildings and cocktail parties every year for its employees abroad (Todorova). Team-buildings are "designed to help work groups improve the way they accomplish tasks by enhancing the interpersonal and problem solving skills of team members" ( Robertson and Porras). This way employees bond with each other and work together as a team, as a whole. On such occasions the atmosphere among colleagues is informal, and makes it easier to break the boundaries between employers and employees. Work becomes different than a boring routine action for the rest of their lives that is a must in order to survive. Every manager must strive to succeed in preserving his human resources and are those little changes that motivate the employees and makes companies like "Kendy" so successful.

In "Kendy" we could say that they have successfully implemented two content motivational theories. Through investments of more than 15 million, the factory meets the tough European criteria called Good Manufacturing Practice (Todorova). Furthermore, the factory continues and will continue to introduce new technologies and meet the requirements in production. On the one hand the huge investments could be regarded as two of the three early motivation theories - Maslow's Theory of Hierarchy of Needs and Two-factor Theory of Herzberg.

Looking at the Maslow's theory, these investments are coincide with the motivational theory, as the second level in the pyramid of needs, according to him, is the security and the protection of the individual (Maslow). Through these investments in the production facility of "Kendy" , the company corresponds to the criteria of safety(Todorova).The restriction of physical contact of employees with machines is minimized due to the modernization of machinery and this provides additional security to the employees. Certain conditions which are created in the company through massive investments lead to more motivation among staff.

The second motivation theory that could explain what is happening in the factories of "Kendy" and "Lactina" is Herzberg Two-factor Theory. Hеrzberg theory accepts the concept of the importance of Maslow's needs, but goes further by offering the claim that not all employees needs are motivational. 

First, there are external conditions of employment, which if lacking or being insufficient lead to dissatisfaction of the workers. These external factors are called hygiene factors. These include: payment, working conditions, status, company policy, quality of the technical control, quality of interpersonal relationship between colleagues, managers and subordinates, and social benefits.

Second, there are internal working factors, whose presence helps to build levels of motivation, which may lead to greater efficiency in work. These conditions are called motivators. These include recognition, challenging work, responsibility, personal growth, gaining experience, development and so on.

Herzberg reduces the five levels of needs of Maslow's theory into two distinct levels. Hygiene factors that correspond to the lower level needs of Maslow (physiological, and safety). They are primarily preventive factors that decrease dissatisfactiontion. In other words, not having the hygiene factors in a job lead to high levels of dissatisfaction, if present, they create "no dissatisfaction". Hygiene factors do not motivate the individual to improve activities.

Motivators are equivalent to the higher level of needs in Maslow's theory. These are factors that motivate people to work effectively. According to Herzberg, the presence of such factors challenge one's motivation, and when these factors are missing, the level of satisfaction drops to zero. The absence of these factors will not affect the dissatisfaction.

Summarized Herzberg theory, it states that individual satisfaction is a result of the job, but his dissatisfaction - from working conditions. Challenging work satisfies him or her, and the routine work does not dissatisfy him. On the other hand, the bad conditions of work dissatisfy the worker, and the good conditions do not dissatisfy him (Herzberg). And in "Kendy" investments have gone into that direction - working conditions are great, shifts of workers strictly regulated, as employees are divided into five groups, with designed schedule for each working cycle, when, who and how much to work and rest. 

For motivation of staff is crucial monetary reward. Under such conditions, working people in the company are highly motivated. Pay is a factor in motivation, but it is most important and only.To meet all the requirements of the European Union, the company has introduced not only to practice strict control, but high hygiene requirements. Access to supermodernite production halls and is strictly limited. Everyone must pass through a special wardrobe, which leaves your jacket and put on disposable apron, hat and plastic slippers. All this talk of a strict process discipline workers in the enterprise, which could also be considered as a kind of motivation.Behavior during the work processes and compliance team brings together a good team means and motivated team.

The fact that the company meets all the most recent requirements of the European Union means that the security of employees is very high. This leads to more motivation and group activity among employees of the company.

Law Torndayk effect is confirmed in our case, as the company continues to evolve in a positive direction, while higher standards comply with hygiene, cleanliness and security of its employees