The Significant Point Of Motivational Factors Commerce Essay

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Motivation is such a significant point for businesses to manage workforce. In addition, it is a primary factor for companies making profit. Karimi (2011) states that the motivation plays a critical role for encouraging employees making efforts on their works that helps make growing production in a business. Different kinds of motivation methods have been used in an increasing number of corporations recently years. According to Business Studies (2008 a), there are two types of motivation, which are financial methods of motivation and non-financial methods of motivation. Financial motivation methods are using money to motivate workers. However, non-financial motivation methods, which do not use money to satisfy employees, are frequently used for higher educational staff. There is an argument that non-financial motivation methods are not practical for businesses, while the point of view could be argued is illogical; as a result in for facing different situations, the efficiency of financial methods and non-financial methods could be diverse.

Taking Starbucks as an example of motivation, Wood (2010) demonstrates that Starbucks provided its shares to totally 6700 employees in the UK to motivate its workers. The result shows that employees indeed work hard by sharing and proving that the financial motivation methods contribute growing production. Nonetheless, "if a reward frame only provides low level motivation" like physical rewards, the production should be decline. In order to make a progress, Starbucks Corporation (2007) shows its successful non-financial motivation measures. It establishes employees to work in different small groups. There is a developed system to keep relationship between employees, and even employees with managers, which provide a comfortable working environment for workforce, making employees feel "a sense of participation". These approaches create a long run profit of Starbucks, which shows that non-financial motivation should be an essential factor for businesses.

There are three motivation theories are well known and providing appropriate explanations to modern motivational approaches. Initially, Maslow's hierarchy of needs is one of the theories which has a widely effect on future theories developing. According to Simons, Irwin, and Drinnien (1987), this theory divides humans' needs into physiological needs, safety needs, love and belonging, esteem needs, and self-actualization which are shown in the following illustration. After Maslow's theory, Taylor's scientific management is another important motivation theory. Taylor mentioned in The Principles of Scientific Management (1911), this theory takes workers as machines to attempt to make the highest production by using money to motivate workers. Finally, the last essential theory is McGregor's theory X and theory Y. Net MBA (2010) explains that theory X assumes that workers, who are in the lowest two classes of Maslow's hierarchy of needs, do not really like their work and working without ambition. However, theory Y assumes that employees are in higher classes in Maslow's hierarchy of needs who need more esteem and self-actualization.

Depending on diverse theories and real situations, different motivation methods can be used to encourage employees to swell the output. According to Taylor's theory, if the business wants more output, it should pay more to workers to motivate them, which relies on financial methods of motivation, while McGregor's theory X assumes they are in bottom classes (physiological or safety needs) in Maslow's hierarchy of needs. According to the Business Studies (2008 b), there are variety sorts of financial methods, such as performance related pay, which means business pay extra for staff if they have excellent performance in their work. Also, profit sharing is another typical method which gives workers shares so that they are working for themselves. For instance, in Huafu Student Canteen, workers all ask students to buy foods in their windows when students go for dinner. By doing a research and interviewing workers, it was found that they are motivated by commission, which means the more sales, the higher payment. The result is that workers are all induced by money and rising the production. However, the problem is that the approaches should not be efficiency for employees in higher classes in Maslow's hierarchy of needs and McGregor's theory Y, as they are not indeed care about higher payment.

What value judgment are non-financial measures of motivation. According to theory Y, the employees are in higher levels in Maslow's hierarchy of needs, who are not satisfied by money. The Business Studies (2008 c) states some management techniques reward on non-finance, such as empowerment and job rotation which mean give employees more power, allowing them to do a variety of works. According to Business Studies (2008 d), a notable example is Google, which provides a comfortable working environment for workforce. Employees own enough freedom, and have free time to create their own projects. Google performs successfully by adopting this non-financial motivation measure to offer creative surroundings to inspire its employees. Additionally, the following table shows the example of a research of how non-financial motivation methods work for doctors, who are usually in very top of Maslow's hierarchy of needs. It demonstrates different type of non-financial motivation methods, which achieved dissimilar result.

(IndMedica, 2005)

By comparing, it is seems that financial methods of motivation are useful for workers who are lower education and need money. Especially in factories, business tends to use this method to motivate workers to make a progress on the output. The reason is that workers are in low classes of Maslow's Hierarchy of Needs, who just want more money to survive. Nevertheless, non-financial methods are frequently used to motivated employees who are higher education or caring other things like family more than money, especially in some creative and art companies. As a result in they are in the peak of Maslow's hierarchy of needs that do not really care about money, but care about esteem, belonging, ambition, and achievement.

To sum up, as what are discussing above, the point of view of non-financial methods of motivation could be argued as important as financial methods. Obviously, different methods should be used to variety kinds of workforce and companies. To make efficiency, companies should analyze their staff and companies' character to choose the suitable methods, thus the production can increase by improving employees motivation.

Reference Section

Businessballs (2004), Abraham Maslow's Hierarchy of Needs motivational model

http://www.businessballs.com/maslow.htm (accessed date: 20/3 2011)

Frederick W. Taylor (1911), The Principles of Scientific Management, New York: Harper Bros.

Hall, D. et al (2008), Business Studies (Fourth Edition). Ormskirk: Causeway Press Ltd.

IndMedica (2005), Journal of the Academy of Hospital Administration

http://www.indmedica.com/journals.php?journalid=6HYPERLINK "http://www.indmedica.com/journals.php?journalid=6&issueid=21&articleid=177&action=article"&HYPERLINK "http://www.indmedica.com/journals.php?journalid=6&issueid=21&articleid=177&action=article"issueid=21HYPERLINK "http://www.indmedica.com/journals.php?journalid=6&issueid=21&articleid=177&action=article"&HYPERLINK "http://www.indmedica.com/journals.php?journalid=6&issueid=21&articleid=177&action=article"articleid=177HYPERLINK "http://www.indmedica.com/journals.php?journalid=6&issueid=21&articleid=177&action=article"&HYPERLINK "http://www.indmedica.com/journals.php?journalid=6&issueid=21&articleid=177&action=article"action=article (accessed date: 21/3 2011)

NetMBA (2010), Theory X and Theory Y

http://www.netmba.com/mgmt/ob/motivation/mcgregor/ (accessed date: 15/3 2011)

S. Karimi (2011), Why is Motivation Important?

http://www.ehow.com/about_4579837_motivation-important_.html (accessed date: 15/3 2011)

Starbucks Corporation (2007), Free Online Research Papers

http://www.freeonlineresearchpapers.com/starbucks-case-study (accessed date: 26/3 2011)

WJanet A. Simons, Donald B. Irwin and Beverly A. Drinnien (1987), Psychology - The Search for Understanding, New York: West Publishing Company.

Z. Wood (2010), Starbucks' staff set to get free shares in incentive scheme

http://www.guardian.co.uk/business/2010/dec/19/starbucks-uk-staff-free-shares-incentive-share (accessed date: 20/3 2011)

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