Case study on motivation of employees

I felt that Caremark. The success or failure of any enterprise is therefore ultimately predicated on the willingness or otherwise of the people who supply the labour Force. A manager plays an important part in coordinating the efforts of individual workers to active organizational objectives. His work also include planning.

Chapter 1 Introduction Background to the study A motivated employee works hard and effectively because of the satisfactory feeling of fulfillment. In business management, motivation is an important research field. Over the years, there have been many motivation theories developed. One of the most famous theories is on the basis of Abraham Maslow's hierarchy of needs.

Employees’ Motivation for SPI: Case Study in a Small Finnish Software Company

Maslow argued that individuals have a hierarchy of needs, and true motivation is achieved by fulfilling higher level of needs. This may seem a far way from your everyday business or organisation closer to home, but surprisingly the variations between places and countries are very similar to that of organisations. Every business has their own specific way of doing things.

It is meant to increase job satisfaction and commitment. By the same token, it is meant to decrease turnover and absenteeism Carpenter, M. This is because urgent goals establishes a sense of satisfaction, intensifies feelings of efficacy and helps to retain interest and commitment in the given task. Also, urgent goals aid the development towards distant goals. This can motivate the individual to set higher goals Landy and Conte, They are explained below.

Goals for 10 years and 3 years

Also, goal setting is highly effective on people with greater ability than on people with lower ability Locke and Latham, Challenging goals initiates high performance only if the individual commits to them. There are at least four factors that impinge on goal commitment. Performance is enhanced when one works towards achieving a goal and receives feedback that there is a slow progress In contrast; performance is not enhanced when an individual receives feedback that he is progressive in attaining his goals Nemeoff, It could be done freely or for reward Campbell, The successful accomplishment of a task requires a high skill level.

A task may be hard to undertake because it involves a lot of effort, skill and experience. Thus even a less difficult task can be hard to undertake if its performance involves a lot of effort. Consequently, task complexity can be defined as a sub-concept of task difficulty Campbell, In conclusion, a specific challenging goal can be best accomplished when the task is simple and the individual involved has the ability, is fully committed to the goal, obtains feedback on progress rate in relation to the goal and has high expectancy to perform the task well Locke and Latham, Goal Mediators Goal mediators are also important and form the eight element of the model.

Locke and Latham identify are four mediators that enables an individual attain goals: direction of attention, effort, persistence, and task strategies. Hence, an individual can have a positive performance if he or she pays attention to the task, exerts effort into it and persevere over a period of time Locke and Latham, In view of task persistence, if a difficult goal is set and there are no time limits to achieving a goal, the individual will work for a longer period of time or a harder goal than for an easier goal.

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The individual will also spend more time preparing to perform if the goal requires a high- performance standard than if it requires a low-performance standard Locke and Latham, Performance can be defined as the fulfillment of a specific task measure against predetermined standards of accuracy, completeness, cost and speed while outcome is the end result of a specific task Khin, Outcome measures can be viewed as the determination and evaluation of the results of an activity, and their comparison with the anticipated results Khin, There are three major types of objective outcome measures in an organisation that can be used to guide performance: quality of production, money and time.

Quality of production refers to the amount or worth of a product or service, money refers to profit and or loss made, and time refers to the deadlines for completion of the tasks Locke and Latham, This is the tenth element in the model. It also suggests that motivation is a response by the individual to a self-perception of their behaviour Martin, Attribution theory is based on people wanting to know the reasons for the actions that they and others take while attributing causes to behaviours they see rather than assuming that these behaviours are random.

This permits people to assume some feeling of control over their own behaviours and over situations Miner, Psychologist Fritz Heider first developed the attribution theory. Heider proposed that what people perceived and believed about what they saw dictated how they would act, even if their beliefs about what they perceived were invalid Locke and Latham, He proposed that achievement-motivated individuals attribute their success to themselves, their effort and hard work. While they attribute their failures to their lack of extra effort, they tend to try again if they fail because they believe that they can succeed with greater efforts.

In contrast, individuals with a low drive for achievement consider hard work and effort as irrelevant. They attribute their own failures to other factors and view their success as a consequence of luck or the easy nature of the task Miner, Psychologist Harold Kelley provided a final development to attribution theory. He suggested that individuals could establish the validity of their perception by using consistency, distinctiveness and consensus Locke and Latham, In this context, consistency refers to the steadiness of a specific exhibited behaviour in comparison to other behaviours of the individual.

Also, distinctiveness refers to if the specific exhibited behaviour occurs when performing a particular task in comparison to other general task. Lastly, consensus refers to if the specific exhibited behaviour is unique to the individual or if it has been widespread amongst other individuals Martin, Managers must frequently observe employee performance and make related judgments. Making an inaccurate judgment about the causes of poor performance can have negative repercussions for the organisation.

In , a widely accepted hypothesis stipulated that employees get bored and dissatisfied with easy and routine work, while they get motivated by complex and interesting task Spector, The model establishes the correlation between features of the job or employee and job satisfaction or performance. It also highlights the need to establish the related psychological variables Thierry and Hicker These elements are aspects of jobs that can be changed or enhanced to have positive motivational impact on the employees Spector, The model also shows consistent validity with regards to job satisfaction and the correlation between the core job dimensions and measures of satisfaction Spector, Organisational Commitment Job satisfaction and organisational commitment are strongly correlated.

Supporting evidence appears in a study by Meyer et al cited in Spector, , p. Affective commitment refers to the decision of an employee to stay with an organisation due to emotional attachment. Like wise, continuance commitment refers to the desire of an employee to stay within an organisation due to salary or unavailability to find another job. Lastly, normative commitment refers to the desire of an employee to remain with an organisation due to felt gratitude People with low commitment are more likely to leave their job than those with high commitment Spector, Distributive and Procedural Theory Equity Theory The final element is based on distributional and procedural equity.

In terms of discipline, employees and mangers are bestowed with the responsibility for solving performance problems Dreher and Dougherty, This may imply that sometimes, employees need to be disciplined in some certain ways. It is pertinent for every organisation to build a structure of justice in which they can exercise rules and procedures.

Also, it is expected that the manager to adopt harsh discipline in certain situations. Employees will develop a feeling of fairness in treatment if rewards and punishments are applied correctly. The treatment of other colleagues is the main source of this feeling.

It is on this basis that the equity approach to motivation is formulated. This is the basis for the equity approach to motivation Aldag and Kuuzuhara, The equity theory of work motivation emanates from the balance theories of social psychological theory. Balance theories assume that individuals have a set of convictions in which they strive to maintain a balance. Imbalance is a source of motivation to attain balance Edwards, The theory stipulates that people are motivated to achieve a condition of equity or fairness in dealing with the people in an organisation Spector, The major components of the social exchange relationship in the equity theory are input and outcome.

The outcome from the job includes wages, recognition, intrinsic rewards, promotion and so forth. While the inputs include: effort, time, experience, skills and loyalty Landy and Conte, He also suggests that people tend to view their outcomes and inputs as a ratio.

Furthermore, they compare this ratio with those of other employees. When the ratio of one employee is equal to that of other employees, a state of equity is achieved and motivation is fostered Minner, Although, when the employees realize an inequality in the ratio relative to others, tension is created. This tension could also foster motivation and consequently breed anger when employees are under-rewarded Ramlall, The model is not dynamic but static. In reality, almost any output can become an input. For example, there is no indication that personality can affect job satisfaction, while the relationship between perceived justice and goal commitment is omitted.

For example, there are sub-theories and complexities involved in procedural justice. Apart from the integrated model of work motivation explained earlier, newer scholars have come up with new ideas of motivational factors that could influence the performance of employees. It is argued that high performance work systems would involve …recruitment practices which aim to attract and select highly committed and flexible people, internal labour markets which reward commitment and training with promotion and job security, and methods of direct communication and team-working Wood and de Menezes, , p.

According to Pfeffer there are seven practices used by successful organisations. The first practice is employment security. According to Pfeffer, employment security is a crucial practice that underpins the other six high-commitment HR practices. The second practice is selective recruitment. The third practice is training. According to Marchington and Wilkinson , extensive training, learning, and development are the most crucial elements of high commitment HRM, particularly because it is the way that organisations can make sure that they outstanding employees stay at the forefront of their fields.

The fourth practice is team working. This element has become ubiquitous in the business and management literature for a range of reasons and team working has now been identified by most employers as a very important in building the organisation. The fifth practice identified by Pfeffer is high compensation based on organisational performance.

Employees’ Motivation for SPI: Case Study in a Small Finnish Software Company | SpringerLink

That is, organisations can only expect employees to be committed to the organisation if they provide employees with 1 above average compensation and 2 performance-related reward, which would both demonstrate to employees that those that make superior contributions will be rewarded accordingly. The sixth practice is the reduction of status differentials, such as shared canteens.

This is an important practice because it shows that all employees are valuable and thus they deserve to be treated in a similarly manner as more senior staff. The seventh practice highlighted by Pfeffer is information sharing and employee involvement. He argues that this is important because open communication about financial performance, strategy, and operational measures sends employees the message that they are trusted. Additionally, the information on which employees base their suggestions and on which they work has to be good.

Overall, it can be argued that this theory of high-performance work systems incorporates both motivating and de-motivating factors and provides managers with a template as to how to deal with this together. While it does not specifically talk about how the job itself is to be designed, it does seem that workers in such a system would be given increased challenge and responsibility, as well as opportunities for advancing in the organisation, personal growth, and organisational recognition, all things that Herzberg argued are needed to motivate workers and make them perform at a high level.

Due to the fact that no two individuals are equally alike and the needs of employees changes constantly over time, motivating employees is known to be one of the most complex task for managers Lindner, Using a descriptive survey method, supporting evidence appears in a study by Lindner to examine the importance of certain motivational factors. The target group was asked to rank the factors in a descending order: from the most motivating to the least motivating.

Thus, the respondents ranked the motivational factors in the following order; interesting work, good wages, appreciation of work well done, job security, good working conditions, personal loyalty to employees, tactful discipline, sympathetic help with personal problems, promotion and growth, feeling of been in on things. All these factors are explained below. Work can be interesting when jobs are well structured and specific goals are properly stipulated Sorita et al, Financial incentives have always been a vital motivator.

Hence, financial incentives could be viewed as a short-term satisfier Drafke and Kossen, Employees could view the need for appreciation for a job well done more important than the need for financial incentives Thorpe andHoman, Employees can be more motivated if given a certain level of job security Sharma, Enhancing employee motivation can be done through improving the employee-employer relationship. Sharing information and celebrating successes, with employees to foster a sense of ownership, can show loyalty to employees Drafte and Cossen, However in applying discipline, managers should be just an affair and thus create Dreher and Doughrty, It is essential for managers to ascertain employees; needs in order to determine what motivates them.

Managers get their work done through employees.

The trigger to define goals

If managers do not know what employees need, they may also not know what motivates them Drafte and Cossen, Both the employees and the company benefit, not just in the present, but also in the future Sorita et al, Experience and skills and their commitment to the company Johnson and Redmond, From the research carried out by Lindner , he concluded that the findings imply that employees are motivated by different factors according to the context in which they work. Also a high number of employees ranked interesting work as the most important motivational factor, while feeling of being in o things was ranked the lowest motivational factor.

These motivational factors will form the basis for data collected in this research. The theoretical foundation of this research was the integrated model of work motivation formulated by Locke and Latham and presented in Figure 2. During the s and s, the examination of human motivation fostered immense interest amongst psychologists and this led the materialisation of a multiplicity of theories, including the cognitive formulations and the need-based conceptualisations Swezey, Subsequently, in the s and s, psychologists started focusing on the role of motivation at the workplace, particularly in the context of job performance and job satisfaction.

Such efforts resulted in an array of goal-setting, instrumentality-based cf. Porter and Lawler, ; Vroom, , and equity-based orientations Swezey, Various theories were used to explain in details.