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Significant Roles Employees Play Commerce Essay

The employees within an organisation are a cardinal resource. They account for a important function in accomplishing the aims of the organisation. The public presentation and accomplishment of employees, to a big extent, has a important impact on the growing and efficiency within an organisation. In order to guarantee the employees to work systematically with the achievement of organisational ends, motive so is the key in act uponing the behaviour and morale of employees.

Given the importance of employees ‘ motive has increased well ; this article aims to research the motive theories that have been proposed over the old ages. Specifically, two motive theories are analyzed based on their cogency. These two motive theories are Equity Theory and Maslow ‘s Hierarchy of Needs Theory. In add-on, five motive schemes that are successful in actuating employees are besides studied, in order to verify the importance of employees ‘ motive within an organisation.

The following subdivision offers the account of how employee motive affects the achievement of an organisation and the function of motive in retaining critical employees. The subsequent subdivisions severally, depict the methodological analysis and motive theories. In add-on to researching the motive theories, the cogency of motive theories is besides studied. The concluding section of the paper provides the schemes that are efficaciously actuating employees, followed by a decision.

2.0 Role of Motivation

The term motive is derived from a Latin word, movere, intending to travel ( Kretiner, 1998 ; cited by Ramlall, 2004 ) . Harmonizing to Certo and Certo ( 2006, p.382 ) , motive is defined as ‘the inner province that causes an single to act in a manner that ensures the achievement of some end ‘ . In today ‘s extremely competitory concern environment, actuating employees is considered as an of import facet of bettering the efficiency of organisations. This is justified by a study named SITE Foundation ‘s 2002 Motivation for Excellence Survey, which was conducted by SITE Foundation. Harmonizing to this study, ‘more than 80 per centum of the surveyed 2,000 workers stating that their quality of work is significantly enhanced when motive is high ‘ ( Benitez and Casison, 2003 ) . Besides that, organisations with motivated work force besides tend to accomplish increasing organisational public presentation, such as bring forthing higher net incomes. As stated by McMaster ( 2002 ) , Taco Bell Corporation, a Mexican-style speedy service eating house concatenation based in Irvine, California, achieves dual the gross revenues in its shops, owing to its divine work force.

Apart from the abovementioned maps, motive besides serves as a tool of organisations in retaining their human capital, in order to carry through higher organisational growing. In conformity to Fitz-enz ( 1997 ; cited in Ramlall, 2004 ) , he stated that ‘the mean company loses about $ 1 million with every 10 managerial and professional employees go forthing the organisation ‘ . Since critical employees are more willing to exercise high degree of attempt towards organisational ends when their single demands are being satisfied, many organisations are likely to actuate their work force by carry throughing the latter ‘s demands, expecting that these employees would go on to execute their employment in the organisations. This thought is strongly supported by the survey conducted by Collins and Allen ( 2006 ) . Harmonizing to Collins and Allen ( 2006 ) , equal motive patterns have negative relationship with employee turnover rate, in which indicates that there is lower per centum of employees go forthing the organisation when motive schemes are implemented to animate organisation members.

The old surveies reviewed above, hence, lead to a decision that employees ‘ motive plays a major function in making organisational aims. The undermentioned subdivision discusses the methodological analysis in analyzing the motive theories and their rating, and the effectual corporate patterns in actuating organisational members.

3.0 Methodology

Secondary mentions are the nucleus research attack for this paper. In analyzing the motive theories and their effectivity, several texts have been accessed in order to supply penetration in the dependability of different motive theories. On the other manus, research studies and diaries have been reviewed to place motive schemes that are normally practiced by assorted concern organisations.

4.0 Motivation Theories

There are legion motive theories. Motivation theories can be classified into two major classs, which are process theories and content theories. Process theories of motive are the justifications of motive that highlight how employees are motivated. Besides that, these motive theories besides focus on the procedures involved in motive. There are four of import procedure theories of motive, which are needs-goal theory, Vroom anticipation theory, Equity theory and Porter-Lawler theory. ( Certo and Certo, 2006, p. 382 )

On the other manus, content theories of motive provide account for the features that a individual possesses. The content theories besides concentrate on the cardinal human demands and how these demands can be satisfied. Theories such as Maslow ‘s hierarchy of demands, Alderfer ‘s ERG theory, Argyris ‘s maturity-immaturity continuum and McClelland ‘s acquired needs theory have been developed to assist in understanding the human demands. ( Certo and Certo, 2006, p.382 )

Owing to the infinite restrictions, merely one procedure theories of motive and one content theories of motive are examined in the undermentioned subdivision. These two motive theories, Equity Theory and Maslow ‘s Hierarchy of Needs Theory are besides evaluated based on their effectivity.

4.1.0 Process Theories of Motivation: Equity Theory

Equity Theory, which was developed by J. Stacy Adams, discovers that persons desire equity in an employment state of affairs. Harmonizing to Ramlall ( 2004 ) , he states that ‘equity theory recognizes that persons are concerned non merely with the sum of wagess they receive for their attempts, but besides with the relationship of this sum to what others receive ‘ . This means that persons perceive the ratio of their inputs and results, and the ratio of inputs and results of others to do comparings. The inputs that are considered in mensurating the ratio of inputs and results include attempt on the occupation, undertaking public presentation, accomplishments, experience, educational background and competency. Whereas, outcomes include salary increase, periphery benefits, acknowledgment, publicity etc.

In conformity to the theory, there are two types of unfairnesss. One of the unfairnesss is under-reward. This instability arises when it is perceived that an person ‘s ratio of input and results is less than the inputs-outcomes ratio of others. Another unfairness is over-reward, which happens when one ‘s inputs-outcomes ratio is greater than the inputs-outcomes ratio of others. As stated by Ramlall ( 2004 ) , when persons notice an instability in their inputs-outcomes ratio comparative to others, tenseness will be created within the persons, and the sum of tenseness is relative to the magnitude of the unfairness. This tenseness will so move as a motive force to animate the persons to ”strive for what they perceive as equity and equity ‘ ( Robbins, 1993, cited by Ramlall, 2004 ) .

The effects of persons comprehending that they have been treated below the belt in comparings with other colleagues, they will respond in certain manners. ( Champagne, 1989, cited by Ramlall, 2004 ) . These manners include the persons will diminish their work input if they are under-rewarded ; if they are over-rewarded, they will increase their work input to fit their results. Besides that, persons will seek to alter the compensation they receive for their attempt by bespeaking an lift. Other mode is to equalise the results of colleagues and the ratio of an person ‘s inputs-outcomes ratio comparatively. Apart from the aforesaid behaviors, the employees may make up one’s mind to retreat from the state of affairs instead than alter it, so quit that occupation and seek for other employment.

Therefore, directors should hold appropriate communicating with subsidiaries as the happening of unfairness can ensue in major troubles. This is because inequalities can greatly act upon the working ambiance, which can take to inefficiency within the organisations. Therefore, directors are advised to guarantee just intervention for their subsidiaries at all times.

4.1.1 Evaluation of Equity Theory

For many old ages, empirical research has documented the dependability and the extended usage of Equity Theory in assorted types of organisations. In visible radiation of several research conducted to prove the Equity Theory, it is acknowledged that Equity Theory has generated extended research, with many important groundss conclude that fairness considerations influence organisational members ‘ behaviours. Harmonizing to the research done by Schultz et Al. ( 2006 ) , workers at an assembly line adjust their velocity in working towards the sensed attempt of their colleagues, to reconstruct the balance in the input-outcome ratios, when comparing with their referent colleagues. This has clearly shown that an person ‘s part in his or her work is correlated to the equity in their on the job topographic points.

Another advantage of Equity Theory is that it recognizes the influence of societal comparing processes on motive. In general, persons tend to compare themselves with other persons in every facet, so as in their employment state of affairs. For case, employees are concerned non merely with the sum of wagess they receive for the inputs in their occupations, but besides concentrate on the relationship of this sum with what their colleagues receive. This could be done by judging the relationship of their input and result, and the attempt and wagess of others. When employees perceive unfairness in intervention, it will actuate them to falsify their inputs, in order to reconstruct equity.

However, there is empirical unfavorable judgment that has been directed towards Equity Theory. Harmonizing to Anderson et Al. ( 2002, p. 55 ) , one of the greatest unfavorable judgment of Equity Theory is that it is weak in foretelling what class of action an person will take to reconstruct equity. For case, when an employee perceives that he or she has been treated below the belt in comparings with other colleagues, will it take to a alteration in the employee picks of comparing criterions, or will it take that employee go forthing the state of affairs? This denotes the inability of Equity Theory in supplying concrete anticipations. Since there are limited constructs sing the factors that influence the chosen method of equity re-establishment, therefore, it demotes the efficiency and cogency of Equity Theory.

Furthermore, the single differences, such as ”the perceptual experiences of inputs and results, and perceptual experiences of equality ‘ have been mostly ignored by research workers ( Anderson et al. , 2002, p.54 ) . This is chiefly due to the troubles in measuring the perceptual experiences of persons about the relationships of inputs and results. Besides that, different persons besides have dissimilar degrees of tolerance and reactions to inequality. For case, when an employee has higher degree of tolerance, he or she might hold different perceptual experiences of equality. As a consequence, it will take that employee to take different class of action when comparing to referent colleagues. Sing that these single differences are likely to act upon the reactions of an employee towards inequality, the failure in integrating these differences into Equity Theory has caused the theory to be criticized that supplying unworldly position of motive.

Apart from that, the Equity Theory is besides critiqued that it is unable to place how employees are likely ”to choose their referent other for measuring their work state of affairs ‘ in their workplace ( Anderson et al. , 2002, p.55 ) . This is because different employees might hold different pick of referent: some might take colleagues with comparable certificates to be their comparison individual ; some might take equals with similar sentiment on the relationship between inputs and results to be their referent. Besides that, the procedure used by an single to make up one’s mind whom to compare himself with is besides failed to analyze. As a consequence, the failure in placing the manner an employee chooses his or her referent has greatly diminish the truth of Equity Theory.

Another restriction of Equity theory is that it appears to presume an person utilizes merely one referent other when measuring their work state of affairs. This is unrealistic as persons are likely to take a few referents when sing the equity. Besides that, persons besides probably to ”make usage of the information of multiple referents ‘ when doing equity judgement ( Anderson et al. , 2002, p.55 ) . This is due to the nature of worlds, who have a thrust to measure themselves by analyzing their ain attitudes, sentiments and abilities in comparing to others. Therefore, since multiple referents others are frequently utilised when measuring equity, the Equity Theory which concerns with merely a individual referent is critiqued to be unrealistic or non matching to the societal comparing theory.

4.2.0 Contented Theories of Motivation: Maslow ‘s Hierarchy of Needs Theory

Abraham Maslow, who developed Maslow ‘s hierarchy of demands, is one of the most influential authors in the country of motive. In this theory, he has proposed that every person possesses five basic demands and these demands are organized in a hierarchy. At the lowest terminal, there are physiological demands, followed by security demands, societal demands and esteem demands. And at the highest terminal, self-actualization demands are placed. Maslow besides stated that each lower demand must be met before traveling to the following higher degree ( Sharma, 2004, p.148 ) . The hierarchy of demands is shown as Appendix 1.

Physiological demands relate to the indispensable demands of human existences, which include the demands for nutrient, vesture and shelter. In the book titled ‘Administrative Thinkers ‘ , it states that an person will merely take at fulfilling his or her security demands when his or her physiological demands are satisfied ( Sharma, 2004, p.148 ) .

Whereas security demands, which is besides known as safety demands, relate to the security from outside danger, security from fright, security of protection and security from natural catastrophes etc. ( Sharma, 2004, p.149 ) . Harmonizing to Certo and Certo ( 2006, p.386 ) , ‘management helps employees satisfy their physiological and security demands by supplying the latter equal wage and rewards to buy things such as lodging and nutrient ‘ .

Another demand that arises after run intoing the security needs is societal demands. Social needs relate to ‘the desire for love, company and friendly relationship ‘ , which do uncover an person ‘s desires to be recognized by others ( Certo and Certo, 2006, p.386 ) . After a individual has satisfied his or her societal demands, he or she will so mean to carry through their regard demands.

Esteem needs refer to the want of deriving regard from others. Maslow has divided esteem demands into two classs, which are achievement demands and acknowledgment demands. The achievement demands refer to self-respect which is achieved without depending on others, whereas the acknowledgment needs relate to the respects gained from others. ( Sharma, 2004, p.149-150 )

Self-actualization demands take topographic point when all the above mentioned demands have been satisfied. Self-actualization demands refer to an person ‘s desire to carry through higher accomplishment in his or her life. Maslow has treated these demands as the most important 1s in the hierarchy of demands.

Maslow ‘s hierarchy is likely the most widely held conceptualisation of human demands therefore far as it provides utile penetrations to people, particularly to organisation leaders when actuating their subsidiaries. Therefore, it continues to be positively discussed and evaluated in direction literature.

4.2.1 Evaluation of Maslow ‘s Hierarchy of Needs

Past reappraisal of motive Hagiographas has extensively evaluated the cogency of Maslow ‘s Hierarchy of Needs Theory. And these ratings do transport positive appraisal. Maslow ‘s hierarchy of demands is weighed as a widely accepted theory. Harmonizing to Sharma ( 2004, p.160 ) , Maslow ‘s theory has had important impact on the modern motive attack, as it leads to farther researches in the country of motive. With this, Maslow ‘s theory non merely provided a footing of McGregor ‘s radical Theory Y, but besides the Two-factor Motivation-hygienic Theory of Frederick Herzberg. Therefore, in the McGregor ‘s statement, he stated that Maslow ‘s attack is ‘the most fruitful ‘ attack ( Banerjee, 1995, p.76 ) .

Besides that, Maslow ‘s theory is besides regarded as a usher to direction in the procedure of employee motive ( Gupta, 2006, p.450 ) . Since motive does assist in accomplishing higher growing, employee motive becomes progressively important in every organisation. With this, Maslow ‘s designation of the five basic demands of persons is widely acknowledged as aid to direction in separating the demands of subsidiaries. By analyzing the unsated demands of their subsidiaries, the direction could place suited types of motivational strategies, such as supplying wagess and work chances with the purpose to actuate them to work towards the organisational ends.

Furthermore, the hierarchal agreement of demands is evaluated as logical and comprehensive ( Gupta, 2006, p.450 ) . This is because it is common that persons will take at run intoing their basic demands before other demands, such as security demands, societal demands, esteem demands and self-actualization demands arise. And it is rational that the self-actualization demands of an person will merely go important in his or her callings when the lower demands have been satisfied. Furthermore, the categorization of human demands is regarded as comprehensive because ‘it perchance covers all the demands of human existences ‘ and these demands are arranged in a hierarchy of importance, which get downing with the basic demands and moves up to self-actualization demands.

However, Maslow ‘s Hierarchy of Needs theory besides has some major restrictions. The Maslow ‘s theory is questioned that whether human demands can be neatly arranged in such a hierarchy. Therefore, there is argument stating that the hierarchal categorization of human demands is non universally applicable to all persons. This is because each person might hold different orders of demands ( Tripathi and Reddy, 2005, p.249 ) . For case, for vocalists, painters and instrumentalists, their self-actualization demands might be the most of import motive force among the other demands, such as security demands and esteem demands. Therefore, the pre-stated statement is the account for the illustration of originative people populating in poorness, as they treat self-actualization demands as their cardinal demands.

Besides that, sometimes an person may desire to fulfill all his or her demands at the same time. For case, an person might be looking for company and necessitate the satisfaction derived from the basic demands at the same clip. However, Maslow ‘s theory, which states that the demands at a peculiar degree will originate merely when the old demands have been met, does non back up ‘the coincident outgrowth of two or more demands ‘ ( Gupta, 2006, p.451 ) . Therefore, there are several statements stating that Maslow ‘s attack is non valid to most of the persons.

Apart from that, it is claimed that Maslow ‘s categorization of human demands contains overlapping elements. This occurs when a peculiar demand of an single corresponds to another demand in the hierarchy ( Gupta, 2006, p.451 ) . For case, at the highest degree of esteem demands of an single might fit with his or her self-actualization demands. This merely indicates that an person would wish to accomplish his or her highest possible, owing to his or her desire to derive acknowledgment from other people. Besides that, to some extent, the desire for love and company might co-occur with the demands of deriving self-respect and regard from the others. This is because worlds need to experience a sense of belonging and credence, whether it comes from organisations or household and friends. With the support from the loved 1s, so merely they will experience recognized and concentrate on their regard demands.

Other than the pre-stated restrictions, it is argued that Maslow ‘s theory is non the most comprehensive theory. This is chiefly due to the exclusion of several of import human demands in the hierarchy of demands. These excluding homo demands are need for mental peace, need for felicity in life, and personal demands such as demands for nationalism and demands for faith ( Gupta, 2006, p.450 ) . Sing that there are several demands being neglected, hence, many theoreticians do non hold on the position which states that Maslow ‘s theory is a comprehensive theory.

5.0 Schemes for Motivating Organizational Members

Since employee motive is a cardinal scheme for retaining valuable human capital and is a method for direction to better its overall efficiency and public presentation towards accomplishing higher growing and profitableness, the importance of motive degree and morale among organisational members has increased well over the past few decennaries. In order to make a on the job environment that Fosters employee motive, direction has been researching the factors that motivate employees to work through their attitudes. And these employee attitude studies have been often used in different organisations to measure employee morale.

In the past few decennaries, several managerial motive schemes have been widely implemented, so as to actuate the employees to heighten their public presentation. One of the most commonly employed schemes is extrinsic wagess. Extrinsic wagess in the workplace include assorted signifiers of compensation, such as basal wage inducements, fillips, periphery benefits, and other hard currency and hard currency equivalent. Harmonizing to a survey conducted by Takahashi ( 2006 ) , it indicated that the comparative pay degree and pay increases do significantly promote the employees to execute their undertakings in a more efficient mode. One of the companies which have widely used pay inducements as a signifier of motive is the Toyota Motors Group in Japan. The study informations collected from the work force in Toyota Motors Group reveals that pay inducement is a great incentive to its white-collar and blue-collar workers ( Takahashi, 2006 ) . This has verified that pecuniary inducement does hold a positive impact on employees ‘ work motive. Besides that, some companies even implement another type of extrinsic wagess, Employee Stock Ownership Plan ( ESOPs ) to actuate their employees. A figure of organisations offer their portions to employees with the purpose of conveying the involvements of employees closer to the involvements of stockholders, which finally will take the employees to prosecute the activities that benefit the organisations. In the research done by Gamble et Al. ( 2002 ) , it showed that the ESOPs did actuate the pilots in three United States-based air hoses to be extremely involved in their occupations. When these pilots have high occupation engagement, they will invariably supply high quality of services to their riders and help their air companies to accomplish greater effectivity.

Another scheme that is successful in actuating organisational members is occupation design. Harmonizing to Grag and Rastogi ( 2006 ) , it is indispensable to plan occupations, so that ”motivation can be enhanced and satisfaction and public presentation of employees can be improved, so that organisations can efficaciously vie in today ‘s extremely ambitious concern environment ‘ . Some well-known companies such as 3M, Xerox and Motorola are among those who have implemented occupation design scheme actuating their work force. There are a few attacks in implementing occupation design within an organisation. The earlier attack to occupation design is occupation enrichment. However, today ‘s human resource direction wages attending non merely to occupation enrichment attack, but besides to quality of work life ( QWL ) and occupation features approach to occupation design. Nevertheless, a figure of research workers indicate that the enlargement of cognition and accomplishments that are experienced through occupation enrichment plan still has a dominant influence on employees ‘ motive. Job enrichment is a procedure of integrating ”greater assortment of work contents that require higher degree of cognition and accomplishments, giving employees the duty in footings of planning and commanding their public presentation, and supplying the chances for personal growing and meaningful work experience ‘ ( Grag and Rastogi, 2006 ) . In conformity with Certo and Certo ( 2006, pg 393 ) , they province that companies such as Volvo and Texas Instruments had singular success in actuating their employees through their occupation enrichment plan. This indicates the effectivity of occupation enrichment attack in impacting employees ‘ motive.

Apart from occupation design scheme, authorization is besides a widely implemented motive scheme in different organisations. Job authorization, which allows employees to self-managed their occupations and provides them a platform to be participative in determination devising, is regarded as one of the influential tool for human resource direction in promoting employees ‘ motive and engagement ( Karia and Ahmad, 2000 ; cited by Ooi et al. , 2007 ) . Based on the research informations collected from the employees in six major semiconducting material contract fabricating organisations in Malaysia, it reveals that occupation authorization is positively associated with employees ‘ occupation engagement ( Ooi et al. , 2007 ) . It is believed that when employees are extremely involved in their occupations, they will maximise their part towards their organisations. This clearly explains that occupation authorization does play a important function in hiking employees ‘ morale to execute their duties more expeditiously.

Promotion inducement is one of the motive schemes loosely practiced by assorted organisations. The calling promotion inducement is deemed to be a powerful incentive as this pattern is valued by employees and it does increase the degree of organisational committedness among the employees ( Takahashi, 2006 ) . As a effect, the addition in trueness among the employees would impact the employees to work industriously to accomplish the organisational aims. In add-on, a study conducted by Ooi et Al. ( 2007 ) besides provides back uping grounds for the position of Takahashi, which discovered that calling promotion inducement leads to an addition in employees ‘ motive. Harmonizing to the study ( Ooi et al. , 2007 ) carried out within six major semiconducting material contract fabricating organisations in Malaysia, it reports that publicity inducement is positively associated with employees ‘ occupation engagement, in which could better workers ‘ motive. This has clearly shown that the pattern of publicity inducement exerts a strong influence in employees ‘ morale and motive.

In add-on, acknowledgment plan is besides implemented by the organisations as a tool in actuating their work force. Usually acknowledgment is a non-financial award given to employees selectively, with the purpose of admiting attempt and committedness, and observing the success of organisational members. Therefore, acknowledgment plan is believed to hold a positive influence on motive and public presentation within an organisation. Harmonizing to Bartol and Martin ( 1998 ) , Honeywell, which is a transnational pudding stone company that produces a assortment of consumer merchandises, technology services and aerospace systems, has been working on hiking its employees ‘ motive by offering a figure of awards to those who attain high accomplishment. For case, Honeywell has set up a Chairman ‘s Achievement Award for employees who have first-class accomplishment in support of company ‘s visions and schemes. And these company awards have non merely helped in furthering motive among employees, but besides in rekindling its success. Therefore, acknowledgment plan is an effectual method of bettering employees ‘ motive on the occupation.

6.0 Decision

From the scrutiny of the old research studies, journal contents and texts, it can be concluded that each motive theory does hold its advantages and restrictions. Given the several restrictions built-in in the Equity Theory and Maslow ‘s Hierarchy of Needs Theory, they appear to be less valid for the field of work motive. Nonetheless, for Equity Theory, its construct of equality in organisations is really utile for future research in employees ‘ occupation behaviors. For Maslow ‘s theory, despite its restrictions, the theory is still utile to measure to the demands of employees and place motivational strategies that are suited to employees. Therefore, motive theories are still effectual for employee motive up to certain extents.

Besides that, this paper besides verifies that employee motive is significantly critical to organisation in accomplishing increasing public presentation. Given that motivated employees, who tend to hold higher degrees of enthusiasm and assurance, can accordingly carry through higher accomplishment, direction should develop a thorough apprehension of the motive procedure. By making so, the direction will so be more capable in act uponing the employees ‘ behaviour and attitude to be more consistent with the attainment of organisational aims.

Apart from that, there are assorted motive schemes that allow direction to implement for employee motive. In order to guarantee the adept motive schemes to be effectual, direction demands to look at the facets of different schemes and merely implement those which are better fit the organisational members, environment and the organisational ends. It, so, can efficaciously bettering employees ‘ motive and morale to work systematically with the organisational aims and to achieve higher accomplishment for their employers.

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