Part of the importance of a successful business is making a profit, to make a good profit requires teamwork and up to date training, and to achieve this you need to implement proven theories.
This could be done by using:
- Expectancy Theory: Effort and performance = Reward.
- Equity Theory: How to handle a situation.
- Goal Setting Theory: Improve performance by giving feedback (appraisal).
EXPECTANCY THEORY
Victor H. Vroom assumed that, behavior results from making conscious choices, looking at alternative ways to get achievement and what motivates people to set these goals.
Expectations are:
- Positive increase in effort and performance.
- Favorable performance = desirable reward.
- With reward you get satisfaction of an important need.
- Desire to satisfy = strong will to want to make the effort worthwhile.
These are based on three Expectancy Theory beliefs, which are:
- VALENCE - emotional orientations people hold with respect to outcomes (rewards). Management need to know the things their employees appreciate.
- EXPECTANCY - Management need to find out, what training and supervision the employee needs, to succeed.
- INSTRUMENTALITY - if you promise to address the needs of the employee, then fulfill it.
Vroom suggests that by using these theories it will produce a Motivational Force. The Formula is:
MOTIVATION = VALENCE x EXPECTANCY (INSTRUMENTALITY)
(12 manage, 2009)
EQUITY THEORY
Developed in 1963 by John Adams. The theory is built on the belief that, employees become de-motivated in their job and their employer, if they feel, they are putting the effort in yet employer is not giving any response back.
Putting the theory to effect requires a joint effort from both, employees and employers, in the form of Input (employee) and Output (employer).
INPUT
- Effort.
- Loyalty.
- Hard work.
- Commitment.
- Skill .
- Flexibility.
- Adaptability.
- Determination.
- Trust in Supervisors.
- Support in collegues.
OUTPUT
- Financial reward (pay, benefits, perks).
- Recognition.
- Reputation.
- Responsibility.
- Sense of achievement.
- Praise.
- Job security.
To achieve this both, Maslows Hierarchy of Needs and Herzbergs Two Way Theory can be used also.
(mind tools, 1995)
GOAL SETTING THEORY
A person who wants to achieve their best potential, needs to be determined and self-disciplined. They also need a challenging but attainable goal, as well as positive feedback.
Targets can give direction as well as a means of dealing with the pressure of change. They also provide:
- development of individual needs.
- motivation.
- consistency.
- ability to learn new skills.
APPRAISALS
Given to openly talk about progress, needs, and requirements of the employee. It also has the same requirements of the employer. This can be both positive and influential to both parties.
(Hale and Whitlam,1995)
Organisations that use these theories
To enable us to understand how these theories are put to use, two companies were looked at. These were Virgin Atlantic and Butlins.
VIRGIN ATLANTIC
Virgin is a multi national business formed by a person, everyone knows about, Sir Richard Branson. His promise to everyone who works for Virgin is to treat them as the single most important part of the business.
Virgin offers staff Financial rewards in the form of:
- Pensions.
- Private medical care.
- Life insurance.
- Discounts (across the virgin group and other companies).
- Long term disability insurance.
- Spouse's and dependant's benefits.
- Dental plans.
- Health screening.
They also offer recognition by:
- Embracing innovation (if an employee has an idea, and virgin like it, they will use it).
- Team work.
- Sense of Achievement.
- Praise ( acknowledgement, promotion).
- Job Security (opportunity to progress up the ladder).
Virgin also are proud of their equal opportunities policy by being:
- Fair.
- Supportive.
- Understanding.
To be able to fulfill a position with Virgin they ask for these qualities in a person:
- Determination.
- communication.
- Understanding.
- Team work.
- Self-belief.
(Virgin recruitment,2009)
BUTLINS
Butlins is a holiday company created in 1936 by Billy Butlin. The most famous part of Butlins is the Red Coats, although there are other employees who make the Butlins company efficient.
Butlins offer employees financial rewards of:
- Salary.
- Bonus schemes.
- Discounts.
- Pension (full time employees).
Also offered is:
- Training.
- Accommodation.
- Uniform.
- Free meals.
- Job security
The quality they are looking for in a person is:
- Team-Work.
- Personality.
- Smart appearance.
- Out going.
- Dedication.
- Wiliness to learn.
- Communication skills.
Drive and ambition.
(Butlins,2009)
MOTIVATION USED BY VIRGIN
Virgin fit in well with both Maslows Hierarchy of Needs and Herzbergs Two-Way Factor Theory. This is because of the companies reputation and relationships with both staff and customer. Motivation using:
MASLOW
- physiological - salary, benefits (insurance), recognition
- safety - job security, promotion from within
- social - travel, family discounts, friendly environment, general public
- Ego/Esteem - Travel, rewards, recognition
- self actualisation - achievement of qualifying, recognition
HERZBERG
- Hygiene Factors - equal opportunity policy, friendly environment to work in, excellent salary, Training, medical benefits, insurance.
- Motivators - qualification after training, general public, promotion from within, job security, chance to put new ideas forward
People want to work for Virgin because of job prospects, the friendly environment, the reputation of Virgin, the chance to see the world. The success of Virgin speaks for itself.
I know that if I was to be given the chance to work for them, I would.
CONCLUSION
During research made, the different qualities in theories (how you should use them to be a better person, and which theories to use at the right time) were shown to be dependant on the size of the business and the type of tasks required.
Virgin use both Maslow and Herzberg in their way of motivation as well as content and process theories to help in maintaining a healthy and enjoyable environment in which to work. This has been proven by the quality of service and reputation that Virgin has. Butlins use Maslows theory in motivating the staff, and the Equity theory in getting good results.
My own feelings are that no matter what your position , as long as you put the hard work and skills you have, to good practice and can accept critical feedback, you will succeed.
REFERENCES
Butlins (2009)Recruitment[online].Available from:http://www.butlins.com[Accessed 17 October 2009)
Hale and Whitlam(1995) A practical guide for managers.1st ed.London:Kogan
12 manage (2009) The excecutive fast track[online].Available from:http://www.12manage.com[Accessed 17 October 2009]
Mind tools (1995)Essential skills for an excellant career[online].Available from:http://www.mindtools.com[Accessed 17 October 2009]
Virgin recruitment (2009)Recruitment[online].Available from:http://www.virginatlantic.com[Accessed 17 October 2009]
