-Maslow's Need Hierarchy Theory
-Herzberg Two Factor Theory
-Achievement Motivation Theory
-Goal Setting Theory
-Vroom's Expectancy Theory
-Adam's Equity Theory
-Porter's Performance Satisfaction Model
Company examples – Theory:
How ASDA motivates their employees?
- ASDA operate a discretionary bonus scheme.
- When you’ve been an ASDA colleague for 12 weeks, you receive Asda Wal- Mart discount card which gives you 10% discount on all Asda purchases.
- During the Christmas period, ASDA provide free Christmas dinner, money towards staff parties, an additional day holiday and vouchers offering up to $20 Christmas shopping.
- ASDA Share Plans. After twelve months' service, Asda offer the opportunity to become a Wal*Mart shareholder, receiving recognition for the huge contribution you'll make to Asda’s success.
- McGregor’s X and Y theory
In the 1950s Douglas McGregor undertook a survey of managers in the USA and identified two styles of management, which he called theory X and theory Y. Theory X managers tend to distrust their subordinates; they believe employees do not really enjoy their work and that they need to be controlled. In McGregor’s own words, many managers believe “the average human being has an inherent dislike of work and will avoid it if he can.” Note that McGregor is not putting it forward as a theory about workers, but as managers. In other words, theory X is about the views managers have of their workforce. Theory Y managers, by comparison, believe that employees do enjoy work and that they want to contribute ideas and effort. A theory y manager is, therefore, more likely to involve employees in decisions and give them greater responsibility. The managerial assumptions identified by McGregor as theory Y included:
- “Commitment to objectives is a function of the rewards associated with their achievement.”
- “The average human being learns, under proper conditions, not only to accept but to seek responsibility.”
- “The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population.”
Source: The human side of enterprise, D McGregor,
Penguin books 1987 (first published 1960)
It is clear that theory Y managers would be inclined to adopt a democratic leadership style. Their natural approach would be to delegate authority to meet specific objectives.
The theory X managers is likely to be self fulfilling. If you believe people are lazy, they will probably stop trying. Similarly if you believe workers dislike responsibility and fail to give them a chance to develop, they will probably stop showing interest in their work. They end up focusing clearly on their wage packet, because of the way you treat them.
In his book The human side of enterprise, McGregor drew upon the work of Maslow and Herzberg. It needs to be no surprise that there are common to the theories of three writers. McGregor’s unique contribution was to set issues of industrial psychology firmly in the context of the management of organizations. So whereas Herzberg’s was a theory of motivation, McGregor’s concerned style of management.
Which is the right approach? It is clear a theory Y manager would be more pleasant and probably more interesting to work for. lined in the “in business” on Harold Geneen, however a, Theory x approach can work. IT is especially likely to succeed in business employing many part time, perhaps student workers, as in a situation where a business faces a crisis.
Theory X managers believe
- Employees dislike work and will avoid it if they can
- Employees prefer to be directed, want to avoid responsibility and have little ambition
- Employees need to be controlled and coerced
Theory Y managers believe
- Putting same effort into work is as natural as play or rest; employees want to work.
- Employees want responsibility provided, there are appropriate rewards.
- Employees are generally quite creative.
ASDA -Theory X and Y
ASDA sets objectives and allocates employees to tasks; they expect their employees to carry out tasks exactly as specified. Employees are usually told exactly what, how and when work must be started and finished. This management style links to Douglas McGregor’s theory ‘X’.
Theory X does also applies to ASDA, especially where shop-workers are concerned. The emphasis is on the use of money and control to encourage workers to behave in the ‘correct manner'. In addition to this, most supermarkets give time and a half pay to employees on Sunday as an incentive.
The democratic style of management involves employees in decision making, either by consulting them directly or through their supervisors/representatives.
This theory links with Douglas McGregor’s theory ‘Y’. As Asda like to call it ‘tell the team’ this encourages employees to express their ideas and any suggestion that is taken forward by the company, the employee is rewarded through one of the company recognition scheme, another aspect of theory Y.
The company believe this theory is the best way to motivate employees as the workers feel part of a group and not as an individual.
(Adapted from Asda website)
Methods used to motivate employees at Boots.
• Mystery customer bonus - this motivates employees to do their job better because the higher score the boots store gets when the mystery customer comes in the higher the bonus will be
• Training schemes – employees can build their skills so they have opportunities for promotion. This motivates employees as they feel they are moving forward
• Internal vacancies – this motivates employees to perform well because they have a chance of being promoted
• Commission – beauty consultants get paid commission depending on how many No7 products they sell. This motivates employees to increase sales levels in order to gain more commission
• Staff appraisals – this motivates employees as they feel important and valued. Appraisals help them see where they are doing well and where they need to make improvements
Theories in practise at Boots
How Maslows Hieracy of needs related to how Boots motivate staff:
• Boots meets the physiological needs of employees which have to be met in order to survive. For example boots provides reasonable pay, breaks and working conditions
• Employee’s safety needs are met through the company by complying with health and safety regulations and training. Employees feel there is a sense of job security. The company operates in a bully free environment and the company also has a pension scheme
• Boots meets the social needs of employees by offering a variety of social days out but within the company there isn’t much emphasis on team work.
4.2 Maslows hierarchy of needs at Asda:
Physical needs- e.g. food and shelter
In regards to basic needs, Asda provide uniform to the employees and they have facilities such as toilets and the staff room.
Safety needs- e.g. security, stability and freedom
Asda have health and safety rules and regulations for example they give training to employees for using various equipment.
Social needs- belonging and friendship
Asda have Christmas parties and other social events such as New Year’s dinners, where employees can socialise amongst each other.
Esteem needs-recognition, strength and status
Asda give their employees full responsibility and trust for them to fulfil their roles, without supervision. As Asda provide effective training to their employees they have more self belief in the workers that they will fulfil their duties efficiently and effectively.
Self actualization- self fulfilment
In Asda this level of the hierarchy has not been satisfied.
Tesco meet the basic needs as they provide staff with facilities such as toilets, lockers and staff room
Safety and security is also met by Tesco as all staff are trained in doing their job for example in stacking shelves in the right way to ensure no products fall off the shelf
Social: Tesco have a range of social activities for both full and part time staff. Tesco have Christmas dinners and social gatherings such as going to the pub for drink as work mates
Ego/ Esteem: Tesco’s have internal vacancies which help employees meet this need by having promotional opportunities
The success of a company can be due to the degree of happiness, and commitment their employees have towards their work and this can be controlled through the motivation and appreciation the company gives in return. If employees feel valued they will be motivated to work harder and their performance will be better, this will then contribute to the success of the company.