Motivation Is A Vital Factor For Business Commerce Essay

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Motivation is a vital factor for business in the process of making their production. Workers are not working machine, so that they cannot always do the same affairs with equal passion. Accordingly, the efficient method to make staffs keen on their jobs should be to motivate them. It might even gain a better yield than purchasing plenty of equipments and facilities. Because of rapid globalization over recent years, the competition around the world becomes more intense, especially for the service industry with the similar products. The most critical point for business to success is not only the quality of products they supply, but the atmosphere of cooperating and the amount from yield of teamwork in retail sales. The employees who always touch with customers and can realize what customers really need are first-line staffs. Therefore, it turns to be essential for companies to motivate, reward and train their employees to be the best quality personnel.

Starbucks Coffee Company is the leading retailer, roaster and brand of specialty coffee in the world, with more than 15,000 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim [1] . The reasons of why Starbucks is worldwide popular are not only the quality of coffee, but also its customer service and cosy environment. Starbucks establishes comfortable surroundings for people to socialize with a fair price, which attracts all range of ages' consumers to get into the stores. Besides, it is also noted for its satisfaction of employees. Everyone is called a partner. More important than the name, however, is a company culture devoted to developing and motivating the partners. "Starbucks has created a culture dedicated to challenging employees…to be their best." Starbucks is dedicated to investing in, supporting, and engaging its partners in the continual reinvention of the company [2] . The turnover rate for Starbucks store managers is about 20 percent and that the turnover rate for partners is about 80 percent. Analysts put the average turnover rate for employees in the quick-service restaurant business at about 200 percent [3] . As a result, Starbucks would be one of the optimal business models for the strategies of employee motivation, customer satisfaction and cooperation of teamwork.

Literature Review

Motivation has become an important focus in today's organizations, causing them to invest time and money for effective reasons to motivate their employees. The reason is obvious; motivation drives employees to become better at what they do, helping the organization to be more productive, successful, and reach the desired goals. This paper will discuss the motivational theories topic obtained by review of literature.

Maslow's Theory of Motivation - Hierarchy of Needs

In 1943, Dr. Abraham Maslow's article "A Theory of Human Motivation" appeared in Psychological Review, which was further expanded upon in his book: Toward a Psychology of Being. In his article, Abraham H. Maslow attempted to formulate a needs-based framework of human motivation and based on his clinical experiences with people, rather than as did the prior psychology theories of his day from authors such as Freud and B.F. Skinner, which were largely theoretical or based upon animal behaviour. From his theory of motivation, modern leaders and executive managers find means of motivation for the purposes of employee and workforce management. Abraham Maslow's book Motivation and Personality (1954), formally introduced the Hierarchy of Needs [4] .

Maslow's hierarchy of needs is most often displayed as a pyramid. The lowest levels of the pyramid are made up of the most basic needs, while the more complex needs are located at the top of the pyramid. Needs at the bottom of the pyramid are basic physical requirements including the need for food, water, sleep and warmth. Once these lower-level needs have been met, people can move on to the next level of needs, which are for safety and security. As people progress up the pyramid, needs become increasingly psychological and social. Soon, the need for love, friendship and intimacy become important. Further up the pyramid, the need for personal esteem and feelings of accomplishment take priority [5] .

Figure Maslow's Hierarchy of Needs

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Physiological Needs

Physiological needs are those required to sustain life, such as:





According to Maslow's theory, if such needs are not satisfied then one's motivation will arise from the quest to satisfy them. Higher needs such as social needs and esteem are not felt until one has met the needs basic to one's bodily functioning [6] .


Once physiological needs are met, one's attention turns to safety and security in order to be free from the threat of physical and emotional harm. Such needs might be fulfilled by [7] :

Living in a safe area

Medical insurance

Job security

Financial reserves

According to Maslow's hierarchy, if a person feels that he or she is in harm's way, higher needs will not receive much attention.

Social Needs

Once a person has met the lower level physiological and safety needs, higher level needs become important, the first of which are social needs. Social needs are those related to interaction with other people and may include [8] :

Need for friends

Need for belonging

Need to give and receive love


Once a person feels a sense of "belonging", the need to feel important arises. Esteem needs may be classified as internal or external. Internal esteem needs are those related to self-esteem such as self respect and achievement. External esteem needs are those such as social status and recognition. Some esteem needs are [9] :






Maslow later refined his model to include a level between esteem needs and self-actualization: the need for knowledge and aesthetics.


Self-actualization is the summit of Maslow's hierarchy of needs. It is the quest of reaching one's full potential as a person. Unlike lower level needs, this need is never fully satisfied; as one grows psychologically there are always new opportunities to continue to grow [10] .

Self-actualized people tend to have needs such as:





Self-actualized persons have frequent occurrences of peak experiences, which are energized moments of profound happiness and harmony. According to Maslow, only a small percentage of the population reaches the level of self-actualization.

Herzberg's Motivation-Hygiene Theory

Frederick Herzberg contributed to human relations and motivation two theories of motivation as follows:

Hygiene Theory


Herzberg's first component in his approach to motivation theory involves what are known as the hygiene factors and includes the work and organizational environment [11] . These hygiene factors include:

The organization

Its policies and its administration

The kind of supervision (leadership and management, including perceptions) which people receive while on the job

Working conditions (including ergonomics)

Interpersonal relations



Job security

These factors do not lead to higher levels of motivation but without them there is dissatisfaction.

The second component in Herzberg's' motivation theory involves what people actually do on the job and should be engineered into the jobs employees do in order to develop intrinsic motivation with the workforce. The motivators are



Growth / advancement

Interest in the job

These factors result from internal instincts in employees, yielding motivation rather than movement.

Both these approaches (hygiene and motivation) must be done simultaneously. Treat people as best you can so they have a minimum of dissatisfaction. Use people so they get achievement, recognition for achievement, interest, and responsibility and they can grow and advance in their work.

Therefore, the hygiene and motivation factors can be listed as follows:


Company policies and administration


Working conditions and interpersonal relations

Salary, status and security



Recognition for achievement

Interest in the task

Responsibility for enlarged task

Growth and advancement to higher level tasks


There is no simple answer to the question of how to motivate people. Can money motivate? Yes, but money alone is not enough, though it does help. We have discussed some of the pertinent theories bearing on human motivation and this is balanced by some of the practical factors which can lead to excellence. Human resource remains the focal point and leadership the critical component, and motivation has to be 'tailored' to each individual. The next section deals with an important mode of motivation, namely financial aspects of rewarding employees.

Starbucks changes the behaviours and viewpoints of global consumers to coffee, and this successful example has caught global attention. Nevertheless, it was also a small retail coffee shop in North American initially. Nowadays, it is not only one of the fastest growing corporation, but also an outstanding business model with lower employee turnover rate and higher profit performance. According to the case of Starbucks, it shows that motivation is the key factor of a company policy; in other words, opposite to the principles of classical management which only concerns about produce but ignore workers' ideas. In recent successful businesses, the appropriate management for labours should include financial and emotional rewards. Besides, motivation and personal satisfaction should be put into first rank. A good relationship between managers and employees could maintain a high quality of performance. Just like Starbucks, to use the correct strategy would lead to a successful path.