Importance and effects of employee motivation

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Employee motivation is an essential in the performance of any organization. Motivation of employees is a basic role of the manager. The manager motivates the employees to ensure that things are done at the workplace. Motivation is an important aspect in any organization and is important if the manager intends to improve the performance of the workers.

Therefore How important is to motivate the employees in the hospitality industry

Working in a hospitality industry can be strenuous to the employees because of the activities involved especially attending to customers that want to be served fast and efficiently. Already, attending to customers is very involving and can be stressful to the employees when the customers continuously stream in. Nevertheless, the customers need to feel welcomed and served better if they are ever to return to the same restaurant. The welcoming warmth felt by the customers can only be noticed through the interaction with the employees while the mood of the employees greatly depends on how they are treated by the management. A cheerful employees is welcoming to the customer while a gloomy staff is a total turn off, it doesn't matter whether the food served is tastes great or the bar or restaurant is located in a strategic location.

Motivation empowers employees to do everything within their own means to create job satisfaction, interact well with customers and therefore attract a repeat business. Employee motivation strategies involves first, training and team building especially at new- employee orientations; second, organizing and promotions that will excite the employees and make them more eager to work despite being busy; and third, rewarding performing employees and carrying out reinforcements that will motivate the non performers to work harder.

Contemporary organizations are giving considerable importance to employee motivation in order to keep the high productivity. Employee's remuneration package affects the employee motivation and subsequently job satisfaction. Employees are more directed to work with enthusiasm in consideration of its return either in the form of tangible rewards or intangible rewards along with monetary return. Job return expectation is based on the category level of work being performed and the organization level.

Background of the companies

A research was conducted on two companies in central of London, which represent different sectors and branches of hospitality industry. The first company was Karaoke box a small sized bars. Karaoke Box has two branches, situated in Soho and Farrington. Two branches has private karaoke rooms of varying sizes and capacities, the main goal of company is to prove the customers with a high quality of service. The company requires from the employees to smile and be very friendly. The company has 28 employees, within the age range of 19-36 years.

The second company called St Pancras Grand, Champagne Bar  and St Pancras Grand Restaurant is located on the Upper Concourse alongside the Eurostar platform of St Pancras International, The team of respondents consisted of 98 employees, within age range was between 20 - 55 years

Aims of the research

The aim of this work is to determine how employee motivation in hospitality firm leads to enthusiasm and a higher job satisfaction which in turn leads to better customer service and higher sales returns. Secondly, the paper seeks to establish employee motivation strategies by looking at two different sized industry companies and comparing the differences of the working environment, what the goals are for each company and what motivates the employees.


This dissertation is aimed to:

Analyse the relationship between performance appraisals and employees motivation

Examines the role of psychological contract and individual differences

Analyse the importance of retaining employees through the strategy of involvement and engagement

Recommendation on improving employee motivation

Structure of the Dissertation

In the first section, the nature and the background of the study are introduced along with the aim and the objectives. The second chapter is devoted to the Literature review where presents the theoretical issues on examined topic. A few of the many definitions and theories of the employee motivation are mentioned.

The Methodology part describes the process of data collection and analysis. This section introduces both the secondary and primary researches. The primary resource of this study is a survey and interviews aimed to get first hand information on the employee motivation in hospitality industry. The secondary researches include all the written material that was used as information resources, such as statistics and interviews in books, from websites and journals.

The next chapter embraces the analysis of the results, beginning with an analysis of the results of the employee questionnaire with the help of tables and diagrams.

After that, the results of the interview with the manager are presented and analyzed

The Conclusion part summarizes the main findings of the dissertation based on the secondary and primary data collection and analysis, and it systematizes the outcomes of the work.

Based on the Conclusion, the author writes recommendations both for the industry and future researchers.

In the References chapter the used books and Internet sources are listed.

Literature review

Motivation - an introduction and types

Motivation is a principle that drives the action of human beings based on the outcome and instrumentality of outcome. It basically increases the attention of a person towards a particular object which results in achievement of a particular goal with more enthusiasm. Organizations are more focused on identification of factors that influence the motivation level of employees. Motivation level is dependant on several factors that affects the motivation in simultaneous environments. These factors can either be intrinsic or extrinsic, each one serving a different type of employee need. As organization keeps setting and controls its standards in order to avoid workflow deviation to achieve maximum results (Hayes & Ninemeier, 2008); thus resultant employee performance valuation determines the emphasis placed by the management on the motivational factors that are essential to monitor in the form of rewards for employees.

Motivation is a goal oriented behaviour that is characterized as positive attitude towards a particular condition or state due to an internal or external stimulus. There are two main types of motivation; intrinsic motivation and extrinsic motivation. Intrinsic motivation is inherent to one's own reason for being or feeling motivated. Intrinsic motivation is an internal drive in a person to do a particular task or fulfil some job which is characterized as needs and wants fulfilment.

Extrinsic motivation is driven by external factors affecting and addressing a particular need of an employee identified by many theorists. Intrinsic and extrinsic rewards have a substantial impact on the employee performance based on type of activity being performed.

Theoretical perspective of motivation

Various theories of Motivation suggest that motivation is a force to acquire the basic need, to minimize discomfort or 'Discontent', and maximize pleasure or 'Contentment' (Deresky, 2006). Many researchers have identified different needs and motivational factors that act as stimulator for human being to increase motivation level. These factors not only concern with individual traits but also have significant effect on individual as initiator of intrinsic motivational responses. There are various materialistic and non-materialistic motivators that act upon the motivational drive in a person. Money, Recognition, Status, promotion, etc. are some of the motivational factors that create the drive to be motivated on a particular behaviour and punishment can be a coercive factor influencing the overall motivation of a person (Sommerville, 2007).

Different theorists have defined the motivation in various contexts resulting in differentiation of motivation factors. Abraham Maslow characterized the needs in five different levels that drive the human behaviour and actions towards needs fulfilment. A person may exhibit interest in fulfilling of needs as different factors affect his personality and behavioural state. As person attains higher level of needs, motivation level change depending on the valence of need as identified in ERG theory. Maslow characterized the needs as physiological, social, belonging, self-esteem, and self-actualization that have practical implication in both organizations and individual life. External factors may act as motivators or may affect intrinsic motivation to drive person's need (Sommerville, 2007). However, it has been observed that basic need levels are inherently driven whereas higher needs level achievement require extrinsic motivational factors. McClelland accompanied the needs identified by Maslow to individual life experiences that drive the motivation in a person. He characterized these needs as need for achievement, need for power, and need for affiliation (Hayes & Ninemeier, 2008). These needs are interconnected to higher need level identified by Maslow; however simultaneously influence the internal motivational drive factors in a person who aims at fulfilment of basic needs.

In relation to need based theory, content theories and process theory also determined the motivational factors that have a significant impact on individual's action while accompanying the internal motivation factors towards attainment of higher needs and satisfaction through power and achievement. These, content based and process theories focused on intangible characteristics of an individual in association to effect of external factors on motivation. Herzberg elaborated the principle of content based theorist by explaining the principle differences between motivators and hygiene factors. He classified the content of motivational factors in two groups based on its nature and influence on individual motivation level. Hygiene factors were related to external conditions as specified by Maslow and McClelland that do not directly affect motivation but reduces the job dissatisfaction in employees. However motivators directly impact on motivation level and are related to self-actualization, self-esteem, need for power and achievement. Victor Vroom elaborated the principle of motivation by explaining the content relationship between different factors (which include expectancy, instrumentality, and valence) (Deresky, 2006). These factors are interrelated for the determination of motivation level of an individual explaining the relationship for motivation based on the assessment of individual capacity of condition and propensity of situation to be valued as of importance related to individual characteristics.

Process theory signified a consequent relationship between the goals and consideration of goals achievement as rewards by individual. It is very comprehensive and reliable in organizations when employees are empowered and have autonomy in goal-setting decision affiliated with subsequent actions for goals achievement. However, it is necessary to determine the outcome importance and rewards value that act as reinforce or stabilizer for the sustainability of motivation level of an employee in hospitality industry. Accompanying the actions with rewards and punishment that act as reinforce of a particular behaviour deemed to be appropriate for a situation. It is essential for management to properly define the reinforce factors essential to critical situations handling in hospitality industry. Identification of motivation level essential to be exhibited in situations defines the implications of process theories for management. Series of events adjoined by certain goal setting based on employee involvement with related extrinsic motivational factors increase the effectiveness of process theory implied in hospitality industry business operations (Deresky, 2006).

Practical implication of motivation theory in hospitality industry

Employee performance is dependent on numerous factors; therefore it is essential for management to focus on determination of such factors to improvise performance level. Hospitality industry requires direct involvement of employees in the operations. Employee role and behavioural actions significantly impact the business performance and credibility building. Since in hospitality industry, comprising of restaurants, bars and hotels, employees have direct coordination with the customers/consumers who drive the financial position of a business. Employees therefore play an important role in building business credibility in the hospitality industry, requiring logical flow of activities in a timely manner while sustaining the high performance level of employees by increasing motivation (Sommerville, 2007).

Repetitive work reduces the flexibility and autonomy of employees, whereas goals also become limited in such conditions. Similarly, in restaurants and hotels, many employees come under the above specified conditions which raise remarkable issues for the management concerning the employee performance and need for motivation factors implications. Classifying the employees into level groups designed by power distance, empowerment, and nature of job that affects the employee behavioural response towards he final client is subject to dependant on actions taken by management towards improvisation of service level. In conditions, employees perform a specific set of activities under the policy structure as specified to standardize the actions and normalize the pattern of work. Over a period of time employee performance show a decline due to reduction in inherent rewards which are essential as employee's lower level of needs, as specified by Maslow, are fulfilled. In continuation of responses employee behaviour show considerable restraining actions that may include rude interaction with co-workers and customers, increase in service delivery time, reduction in product quality.

Motivation is essential to be present in employee working in restaurants and bars which can be addressed by external or internal motivation factors. Managers are responsible to maintain the harmony of working environment that inspires the employee attitude and help increase job commitment with great involvement in work (Deresky, 2006). In association to it, employee behavioural response will be modified towards the customers and associated co-workers. As specified in process theories, reinforcing positive and constructive behaviours will improvise the customer dealing standard. Thus it is essential to define the importance of motivation in employees in hospitality industry to communicate appropriate information and achieve desired performance level. Manager can define strategies addressing a specific need for every employee as highlighted by theorists, helping to increase employee motivation level (Martin & Woodside, 2009).

Motivation factors for employees in hospitality industry

It has been evident from different researches that hospitality industry offer certain advantages to employees addressing their need level. It is essential to emphasize on prominent motivation factors, either extrinsic or intrinsic, to increase employee motivation including focusing on cognitive capacity of individual that include employee commitment towards job. These factors help guide the employee performance level while offer them a goal-oriented behaviour.

In hospitality industry, the main coordination exists between employee and a customer, and employee coordination with other co-workers. Both type of co-ordination require sensitive sharing of emotional responses which help distinguish the restaurant identity from others. Majority of employees serving as waiters have minimal education therefore are unable to lead the organizational goals; whereas are driven by many intrinsic motivation which can be utilized by management to drive the expected performance level (Deresky, 2006). Monetary benefits such as salary, bonuses and allowances in real forms act as extrinsic motivators which serve the inherent needs fulfilment of such employees, enabling to increase the performance level and moderating the positive behavioural change. Although monetary benefits regulate motivation level, but the effectiveness of such rewards is based on the valence of instrumentality as specified by Victor Vroom.

However in contrast to above stated factors, non monetary rewards include promotions, positive remarks, inherent social satisfaction and honour, employee recognition, certificates and awards, job enrichment & enlargement, and goal based approach to improve skills of employees, training for growth, are more significant when monetary rewards deem to have low impact on employees working at higher level (Martin & Woodside, 2009). Special training could be given to employees working in restaurant and bars to improve their communication skills, cooking skills, managerial skills that would help achieve employee involvement and commitment towards job (Sommerville, 2007). Employee would be more involved in goal setting and work setting (such as setting a goal to increase daily turnover, strategic planning to increase the standard of restaurant/bar etc.), initiated by intrinsic motivation responses for achieving status growth and power attainment representing their social status, as specified by McClelland.

Motivational factors impact on employee involvement and engagement

Intrinsic motivation factors includes need for achievement, need for power, and acceptance of inherent social satisfaction need, honour, and internal cognitive ability to perform something drives the human effort level resulting in increased performance and employee commitment towards the job due to motivation derive. However, in many cases extrinsic rewards are essential to initiate intrinsic motivation responses in employees working in hospitality industry. These extrinsic rewards ultimately support an internal need of an employee that result in job satisfaction and increase commitment to the organization goals achievement. Main complications that restaurants and bars face are rapid employee turnover that result in sharing of confidential records and information to other competing restaurants that employees join later (Martin & Woodside, 2009). Therefore, motivation in hospitality industry remarks its importance by addressing the serious issue that may create severe business losses and market share decline.

Employees act as stimulator to address such issues, whereas restaurant management can utilize motivational factor resources to apprehend the employee performance and reinforce their positive behaviour supportive for the business (Sommerville, 2007). These factors affect the intrinsic motivation state of an employee, thus result in employee commitment to the restaurant enabling job satisfaction and increased performance. As management decide to increase employee empowerment as motivator, employees' involvement in goal setting and achievement increases as they feel themselves engaged in a implicit responsibility. Same strategy was employed by McDonald restaurant at its various outlets where formalization and conforming to rules was resulting in strained employee performance. McDonald management allowed its specialized and competent employees to be more involved in work. As a result, employees who were serving as cook invented new dishes approved for worldwide launch and got financial and non monetary rewards in the form of bonuses, special gifts and promotion (Martin & Woodside, 2009). This signifies that employee motivation level, commitment towards organization (restaurant or bar) and involvement in work activities is solely dependant on motivation factors, either intrinsic or extrinsic.

Psychological contract

The psychological contract is an important concept in the field of Human Resources. Psychological contract can be understood as individual beliefs that are shaped by an organization, which regard the terms of an exchange relationship between the organization and individual employee (Conway & Briner, 2005, p 87). The base of this affiliation is reciprocity between the employees and the organization on the supposed expectations and obligations from one another (Conway & Briner, 2005, p 93). In simple words, the psychological contract composes of an unwritten accord between the organization and employees based on a jointly accepted obligations and promises among the employees and the organization (Conway & Briner, 2005, p 99).

Psychological contract typology

Psychological contracts have been frequently described according their certain characteristics. For instance, there are two types of psychological contracts: transactional and relational contracts. Transactional contracts are structured with a huge importance on material prizes that are relatively narrow in their scope and have a short-term duration. Relational contracts are structured around few tangible prizes and have a noteworthy duration, which is frequently without an unstated end-date. They are also subject to the person parties' principles (Conway & Briner, 2005, p 124). In most cases, an employer presents a relational type of contract although the employees demand a transactional type of contract, thus creating confusion within the organization.

Any psychological topology provides a significant classification that assists the definition of psychological contract and its content. Additionally, psychological contract is an essential tool for crucial analysis of the work relationship in an organization. It also aids the management of an organization implement practices to construct a strong psychological contract that could lead to improved stages of commitment and satisfaction in employees (Conway & Briner, 2005, p 132).


Theory presume that with the changes in the context of the psychological contract and the renegotiated employment relationship, it is highly probable that some workers may feel that the company is failing to meet its responsibility and are of the view that their beliefs are not being met or realized. This could affect the overall employee's performance and loyalty. This is acknowledged as a defiance of the psychological contract (Conway & Briner, 2005, p 138). Additionally, it is achievable for workers to be conscious of the inability of the employer to meet expectations or that some parts of the contract between the employer and employee have not been met or fulfilled timely. Therefore, the reaction would not be so severe in case of a 'perceived breach' of contract (Conway & Briner, 2005, p 172). On the other hand, a breach of contract produces a tougher and emotional reaction from the workers (Conway & Briner, 2005, p 184).

The effects of psychological contract violation depend strongly on the emotional reaction they activate in employees. Because of the subjective nature of the expectations of the workers, the response in case of a breach or violation could vary leaving some employees feeling there has been an injustice done to them by the organization while other employees may feel less hurt (Conway & Briner, 2005, p 190).

process of performance appraisal

The process of performance appraisal entails assessment of needs and setting goals, establishing targets and the apparent time-frame, assessing the progress and evaluating the performance, and repeating the steps. Performance appraisal is a cyclical process that comprises of several integral components which provide an overarching framework. These components include job description, personnel selection, staff development and the reward system. These tools and methods ensure that the performance appraisal system is comprehensive and guarantees achievement of organisational goals (Huber 2006, p. 650).

Performance appraisals encompass the potential to generate quality in organisations as they focus managerial attention on individual factors. In organisations, the performance appraisal process is meant to ensure organisational goals are met and a fair process of human resources management is provided. Normally, performance appraisals utilise formal and informal methods to provide employees with the required information which is essential in determining whether the set goals are met or there is room for improvement (Huber 2006, p. 650).

Besides employee performance assessment, performance appraisals and reviews can be utilised as a tool for reinforcing the preferred behavior and performance competency in the hospitality industry. Provision of a fair and accurate performance assessment to employees constitute one of the most motivating factors. Employees expect their appraisers to recognize and appreciate their efforts and achievements, and provide support to overcome difficulties and failures. In bar or restaurant, employees have to endure different kinds of people some of which are difficult to deal with thereby making their jobs hard. In such cases, support from the management is imperative in motivating the employees. However, with inaccurate evaluation, employees become direful when participating in performance appraisals since its credibility is questionable thus leading to employee demoralisation (Nickols 2007, p. 14). As a result, the hospitality industry becomes more susceptible to low productivity.

In spite of salary increase, discrepancies and inaccuracies in performance appraisals can demotivate employees by destroying the risk-taking and innovating spirit and enthusiasm. The current performance appraisals hold employees responsible for errors whose occurrence might be as a result of flaws within the organisational system (Nickols 2007, p. 15). As a result, gross injustices may be realised in cases where system failures occur often as employees are held accountable for issues brought about by the system. Systems in hospitality industry have flaws and are therefore prone to breaking down and biasness. This makes it vital for performance appraisals to take into account such issues in employee evaluation since they influence their performance.

The ability of an individual plays a crucial role in determining his or her level of performance. Ability comprises of mental and physical capacities that enable an individual to showcase a certain set of skills (Huber 2006, p. 651). An individual must have knowledge, experience and skills which constitute ability in order to complete a given task successful. As a result of ability being an innate capacity, individuals have different abilities and disparity is realised on their performance level regarding a particular task.

The job description part of performance appraisal specifies work standards and the skills, knowledge, and abilities which are deemed necessary for the job. Following job description is personnel selection in which individual capabilities are matched with key requirements for the job position (Huber 2006, p. 651). Ensuring high accuracy during personnel selection and provision of training to mold the abilities is the key to realisation of high performance by an employee. Moreover, motivation of such individuals also comes in handy since it influences the vigor and diligence in the application of the capabilities to perform a specified task.

Accurate and well designed performance appraisals have the potential to motivate employees as well as increase their job satisfaction in the hospitality industry. Individuals are different as they vary in terms of their capabilities hence will exhibit different skills and knowledge suitable for divergent tasks. Performance appraisals should have the ability to identify the skills and knowledge necessary for a particular task, select the most suitable individual and in addition to that, provide reward systems that motivate the employee.


In this chapter the process of data collection and the methods of the conducted secondary and primary researches are explained. The following research strategies were used: case study, analysis of secondary source material, interview, survey questionnaire, and grounded theory. There are a variety of different research methods that could be applied in order to collect data relating to travel behavior. Depending on the purpose and objectives of the research, either quantitative, qualitative or a combination of both methods could be adopted

Certainly the most of the available information on this topic can be found on the most authentic sources, and compare as many writings as possible; there have been plenty of books published about employee motivation.

The first company was Karaoke box a small sized bar, situated in central of London. The company has 28 employees, within the age range of 19-36 years.

The second company called St Pancras Grand, bar and restaurant situated in London. The team of respondents consisted of 100 employees, within age range was between 20 - 55 years

The literature review is mainly based on historical theories of employee

motivation,along with the textbooks and other published material

both online and printed journal articles. Ghauri cites Churchill(1999:215): "do not

bypass secondary data. Begin with secondary data, and only when the secondary data

are exhausted or show diminishing returns, proceed to primary data."(Research

Methods in Business Studies, 2005, p.95)

Data collection

Secondary resources

"Secondary data are useful not only to find information to solve our research problem, but also to better understand and explain our research problem…" also "…verification process is more rapid and the reliability of the information and conclusions is greatly enhanced."


Books and journals

The printed resources provided the most of the theoretical information for the Literature review. The books and journals listed in the References are from different sources.

Multiple sources

As for the electronic sources, the informal personal opinions or discussions and blog posts that were found on the Internet in connection with the topic, had a great impact on the results of the research, and on the conformation of the opinion. A couple of e-books were also used and many blogs written by HR specialists. These blogs functioned almost as interviews or discussions, as in most of the cases, the articles were not left unanswered: plenty of comments were sent by readers, who were also professionals or at least interested in the topic.

Primary research

"In order to support secondary data findings it was necessary to conduct further research to compare the historical development of theories of motivation. Primary data includes focus groups observation, questionnaires and surveys, experiments and interviews."

Questionnaire survey

As a research tool the author used the questionnaire survey. The questionnaire was anonymous and was created out of 18 questions with open choices. Questionnaire completed 126 employees from both companies. Respondents were from different social group based on age, sex, education, culture and background.


"An interview is a conversation between interviewer and respondent with the purpose of eliciting certain information from the respondent"

The interviews were conducted in two different sized companies, which represent different sectors and branches of hospitality industry. In order to get information of how managers perceives the motivation in the companies.

Methodology of analysis

The analysis was started with the processing of the secondary information: the literature and the statistical data. The data collection was continued during the analysis, therefore throughout the research process the basic picture continuously expanded and changed in some ways as more and more information was discovered.

The questionnaire was written and sent to the employees from both companies by emails by approval of the managers in the beginning of March,

Based on the secondary data - all the theories, concepts and statistics - and the primary research, that actually underpins the results of the analysis of the secondary information, an overall conclusion was drawn. And finally, based on the possibilities and ideas for further development, some recommendations for the industry were written.

Summary of the methodology

This dissertation is based on both printed and electronic information about employee motivation theories and concepts in general and employee motivation issues.

With the help of a survey and interview, on employee motivation as a primary research, that could get a picture of the employee's attitude to the issue.

Measure employee engagement and involvement

Analysis of the questionnaires


The survey was created to gather information about the motivation at the workplace in chosen companies and also to discuss in relation to the fallows objectives:

Analyse the relationship between performance appraisals and employees motivation

Examines the role of psychological contract and individual differences

Analyse the importance of retaining employees through the strategy of involvement and engagement

Altogether 126 papers were sent out to the employees in Karaoke box and St Pancras Grand via email and on social network sites (Facebook). The questionnaire was also handled in person. Finally 104 responses were sent back. 76 i 28

Main goals of the research

to define the employees

work envirotment

job satisfaction

employee commitment

Employees Participation

Employee Productivity

Organizational Performance

Figure 1: Do you know the company goals?

Respondents were asked about knowledge of company goals, employee should be aware of business context to be engaged. The figure above shows that employees from Karaoke box know their company goals. However, 26 employees from St Pancras Grand said that they don't know the company goals, and 10 of employees said that they are not sure about it. This can be reason of the lack of communication between the employees and line managers in St Pancras Grand. Karaoke box is a small sized company; it might be easier to communicate.

Figure 2: Does your manager give you a feedback?

Employees were asked if the received a feedback from the management, this chart has a different results from one another. In St Pancras Grand only 35% respondents said that the managers give them a feedback, the majority of respondents which is 65% said that they don't received any feedback. However, in Karaoke box, the highest level of agreement seems to be happy with a given feedback, 37% agree that don't receive it.

Figure 3: Does your manager asks for your opinion?

Asking employees for an opinion is one of principles for employee engagement, the results for this question says that managers in both companies don't have a habit of asking them. In Karaoke box only 6 employees said that they ask them, 2 said sometimes and 20 agreed that they don't do it; in St Pancras, the situation is similar.

Figure 4: Does your manager make you feel that your job is important?

This chart shows that most of the employees of all companies feel the importance of their jobs from the management. It is important for the employees to feel valuable that influences employee engagement and involvement to the company.

Measure employee of performance appraisals and individual differences

Figure 5: Does the company provide with appraisal interviews?

This figure shows that in not really important between small and big companies, both of them provide with an appraisal interviews.

Figure 6: Do you notice any changes after the appraisal?

Respondents were asked about the changes after appraisal. In St Pancras Grand only 36% of employees said that they can't notice any changes but a majority 64% said that they did it. An overwhelming 82% of respondents in Karaoke box said that they didn't notice any changes after the appraisal; only 18% said that they did.

Figure 7 and 8: What is the best motivator for you?

This figure shows that the most important for employees in Karaoke box is a security 30.8%, the next factor is status 23.1% and development 19.2%. Wages and pressure of working are 7.7% . Self esteem, recognition and team membership are 3.8%.

This figure shows that the most important for employees in St Pancras Grand is a development 21% , security 20%, the next important factor is reorganisation 16% .Self esteem 12%, wages 10 %, bonuses 7% .status 5% .pressure of working 4% . Responsibilities 4% and team membership is only 1%.

Figure 9: Does your manager respect your difference?

The question asked the respondents about respect of individual differences in the workplace, such as cultural, perceptual and individual. The majority of employees in both companies said that the management respect their differences. According to Maslow hierarchy one person might achieve self-actualization by an intellectual feat, another by sporting prowess.

Figure 10: Do you think that communication between you and manager should improve?

There is a surprising amount of agreement in Karaoke box and St Pancras Grand about the communication between the employer and employee.

Figure 11: What are the disadvantages of working here?

Respondents were asked what they think about disadvantages of working in the company. A majority of respondents in Karaoke Box and St Pancras Grand think that long hours, wage and lack of communication are the biggest disadvantages.

Figure 12: What are the disadvantages of working here?

Respondents were asked what they think about advantages of working in the company the majority of the respondence in karaoke box

Measure employee psychological contract

Figure 13: Does your manager give you a good recognition?

31% of the respondents disagreed

Figure 14: Does the company have a positive and supportive environment?

where employees are quite

Figure 15: Does your manager treat you fair and with respect?

Figure 16: Do you have clarity in the work assignments?


Line manager from Karaoke Box

Line manager from St Pancras Grand

1. Measure employee's


By watching their performance under the pressure.

I give them some task to achieve.

2. Do you feel your employees are de-motivated?



3. Dealing with de-motivated employees.

I would talk to them, one-to-one.

I would sit down and talk to them.

4. Importance of motivated employees.

Whole business in the bars industry depends on it.

Absolutely necessary.

5. Techniques used to motivate the employees.

- training

- knowledge

- understanding

- targets

- conversation

6. Opportunities for the employees in the company


Promotion and knowledge

7. Do employees feel empowered?



8. How involved are employees in company goals?

They are almost there.

9. Do you think employees have different motivational needs?



10. What do you think about appraisal interviews?


I don't like using them.

11. Do you notice any changes after appraisal interview?



12. What is good for a god working environment?

Team work and well understanding between managers.

Team work, communication and organised working environment.

13. Do you use the concept of the psychological contract?


I don't use it.

14. Expectation from the employees as a manger

Work as one

Hard work, team work, up selling, participation

15. Do you understand employee's differences?



16. How to improve employee motivation.

Keep them well inform, talking

Conversation, targets, better communication