The People Involved In An Organization Commerce Essay


In the 21st century, rapid development of economy has led to a competitive society, especially in the field of employment. It is crucial for a business to identify employees' needs and try to motivate them. If the needs of employees are not satisfied, they will not be motivated. For instance, the company Codelco can not satisfy its employees' needs such as fair pay and safe working conditions, which led to a copper miners' strike in Chile in 2010 (BBC, 2010). So businesses should consider the motivation of their employees. According to Answers (2010), motivation can be divided into financial motivation and non-financial motivation. The former is the method that firms use money as a major incentive to motivate employees. The later considers more of the job itself. While financial motivation is certainly a vital role, however, non-financial motivation such as job enlargement, team working, and quality control circles is also important to motivate employees. This essay will investigate the strengths of financial methods and the equally important non-financial methods of motivating employees.

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Financial rewards such as fair pay and fringe benefits play a vital role in motivating employees. Taylor pointed out that the monetary method of motivation through working is the most efficient way to motivate employees (Projectablevel, 2010). In other words, the more money employees will be paid, the more motivated they will be to work. Firstly, fair pay has a positive effect on productivity. The main reason why workers go to work is that they would like to earn money to buy goods and services. They therefore would be motivated to produce effectively in order to achieve a higher pay. On the other hand, poor pay may lead to workers being dissatisfied at work; furthermore, there will be a negative effect on the company. An authentic example can be given by a strike which broke out in Vietnamese shoes factory in 2007 (BBC, 2010). The employees would like to increase their wages; however, their company did not make the deal (BBC, 2010). So if employers would like to enable employees to achieve the maximum level of output, they should give the fair pay for their employees in return.

In addition, introducing fringe benefits such as company cars, private health insurance may lead to good performance of employees in a company. Widespread and flexible use of benefits can not only help to attract and retain top talent, but also encourage loyalty to a company. Furthermore, fringe benefits will also help the running of business. For example, days off sick are very common in a company, if an employer can provide employees with private health care will help to improve the running of business. Therefore, financial rewards such as fair pay and fringe benefits are the important factors to motivate employees.

However, financial rewards are not the only needs that satisfy employees, there are others, such as non-financial rewards which are equal importance. Frederick Herzberg argued that motivators think more of the actual job itself and businesses should try to improve the nature of job (Projectablevel, 2010). Moreover, according to Hall et al (2008), Maslow's hierarchy of needs has argued that both of financial motivation and non-financial motivation are particular important. As Figure 1 reflects, the needs at the bottom of the pyramid are physiological needs, such as high wages. They can be regarded as the financial needs, which are basic in this pyramid. Others are safety needs, love and belonging, esteem needs and self-actualization, which are concerned with non-financial needs. Each level of needs is relied on the levels below. In short, financial rewards are not enough to motivate employees; a business should take account of introducing non-financial incentives to satisfy its employees.

Figure1 (tutor2u, 2010)

In order to motivate its employees, a business should think more of its non-financial rewards such as job enlargement, team working, and quality control circles. Firstly, job enlargement should be introduced, allowing employees to finish the whole work instead of just doing part of it. The advantage of job enlargement is that it will avoid making employees being boredom by doing the repetitive work. The staff training in McDonalds is a good example. Each year, McDonalds employs over 10 million to train almost 55,000 employees, providing them with valuable skills (123helpme, 2010). The reason why McDonalds would like to do this is that it wants to improve its employees' working ability to complete the whole working process and obtain a sense of achievement.

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Secondly, team working is also very important, because it may lead to effective by combining talents. This means employees work together so that they can draw on and share the knowledge and skills with each other in the team. For instance, a team of China South Airline's senior management always stays together and concentrates on the advice which given by passengers. They decided and solved problems which can satisfy passengers. As a result, South China Airline's trademark is deeply upon in everyone's mind (Baidu, 2010).

Finally, quality control circles cannot be neglected, because they can help to improve the nature of job directly. As Hall et al (2008) states that quality controls are small groups of workers who meet regularly to study and solve production problems. Workers will be motivated by being involved in decision making. Starbucks does well in this area, for example, the retail managers in Starbucks should responsible for the whole operation of the retail, such as food safety, security, and accurate profit. By having the support of both others managements and employees, the management will be confident and motivated. Therefore, non-financial motivation such as job enlargement, team working, and quality control circles is also important to motivate employees. (Starbucks, 2010).

In conclusion, a business should make decisions and identify employees' needs, introducing both financial rewards and non-financial rewards to motivate its employees. There is no escaping the fact those financial rewards such as fair pay and fringe benefits are still an essential reason why people keep working, and they will also have a positive effect on productivity and company performance. However, financial rewards are not the only needs that are satisfied by working. Non-financial rewards such as job enlargement, team working, and quality control circles are equally important with financial rewards. Non-financial rewards can help to improve employees' professional skills, working efficiently, and being confident by having the support of both management and other employees. Therefore both financial rewards and non-financial rewards are very significant; businesses should find the right balance between them.