Management Concept Literature Review and Report
Management Concept Literature Review and Report
Employees' motivation in a company or a firm is a very crucial management practice which should not be underestimated since its implications are very much pronounced. From the case study conducted on Ojuice Company, lack of employees' motivation was identified as the major management problem. The problem is so devastating that it has led to a continuous loss of many experienced employees in the past as they feel that their ideas are not accepted in this company (Seijts, 1998). As a result of lack of employees' motivation, their productivity has declined leading to a drastic reduction of the company's profits. From the case study it is well indicated that, lack of employees' motivation made two former Ojuice employees to start a juice company thus giving stiff competition to the company. Employees' motivation should be researched carefully because its inadequacy has resulted to loss of customers as a result of poor quality products. The drastic loss of its experienced workforce is putting its upcoming at jeopardy; whereby the stiff competition may lead to closure of the company. Further, it is has been noted that employees are not motivated to be innovative by coming up with new ideas that would save the company's production. (Downey et al, 2006)
Employee motivation has been a serious problem which needs to be given urgent attention or else the company quit from the market due to the stiff competition and rapid loss of experienced workforce. It is evident from the case study that, employees are not motivated by being given favorable working environment where they can feel part and parcel of the company. In the case of Ojuice, employees are not allowed to carry out anything innovative in the company; thus putting the young dynamic workers out of place. An urgent measure has to be taken to curb the devastating impacts of this management crisis (Vinten, 2002). From a wide view; the crisis has led to loss of income, investments, employee departure, high competition, and decline in profits among other evils. In this case therefore, the Ojuice Company should be guided by the theory of motivation propagated by Herzberg which focuses on the psychological needs of employees. On this basis, employees who are willing to come up with some new ideas through motivation will be able to bring to the company new and productive thoughts (Vinten, 2002).
2.0 Problem identification
It is of importance to note that, the lack of employees' motivation has been clearly indicated by poor and unfavorable working environment as identified in Ojuice Company. In this relation, this aspect has greatly demoralized the workforce resulting to high levels of labor turnover. Employees' competence has reduced as their opinions and ideas are never considered resulting to their negative perception towards the company and its management. In addition, Ojuice Company doesn't facilitate self managed teams thus discouraging a sense of autonomy and decision making responsibility (Balkema & Molleman, 1999). From the case study, the company's management is concentrated in making high quality products while incurring the least expenses as possible; hence forgetting workers motivation in order to improve their production and sales (Parr, 1992).
Research carried in other organizations has shown that poor motivation and management of employees can lead to collapse of the whole organization. For instance, the US energy company Enron Corporation (Carson, 2003; Downey et al, 2006) collapsed as a result lack of employee motivation. Further, a recent study shown that; employee motivation is directly proportional to organizational performance and profitability (Grant, 1998). The issue of losing experienced employees is overwhelming since these employees are absorbed in other companies or start their own leading to stiff competition on the company's products thus decline in profits. Research has also shown that, motivation is responsible for the difference in performance between different organizations on the basis of power delegation (Conti & Kleiner, 1997). From the research, it's evident that organizations which closely align their culture to support business strategies perform better (Rothwell, 2000). This is so because the level of employee motivation is proportional to their performance (Conti & Kleiner, 1997). This is evident from the fact that, supervisor's interference in self-managed groups leads to hindrance of effectiveness (Conti & Kleiner, 1997). In order to overcome this managerial problem on employee motivation, Herzberg motivation theory on the employees' needs fulfillment should be adopted by Ojuice (Adams, Et al, 2001).
3.0 Critical Analysis
Several models of overcoming employee motivation have been established; whereby Herzberg's two-factor theory best fits the current situation in Ojuice Company. According to this theory, employees are influenced by two factors which include satisfaction and psychological growth. According to Herzberg, employees' dissatisfaction at work could be caused by poor company policies and administration, low wages, poor quality of supervision, and poor working conditions (Gawel, 1999). On the other hand, this theory indicates that employees are motivated by being allowed a chance for advancement, being recognized for their efforts and having personal achievement in the job. In respect to this model, Ojuice Company management should allow its employees to have personal growth and feel recognized for their efforts in the company. Despite the fact that many individuals doubted the efficiency and effectiveness of this model, it can be applied to de-motivated employees to improve their competence and productivity. This can only be done through job enlargement, job rotation, and job enrichment. On this basis, job enlargement implies that employees will be given chance to come up with their new innovations which will be incorporated in the company (Samuel, 2001).
Importantly, there other models of motivation like the ERG theory by Clayton Alderfer which was developed on the basis of Maslow's theory. This is a good model for solving motivational issues but doesn't fit appropriately in Ojuice case. Alderfer proposed that progress up the ladder is more complicated and that a failure to meet advanced order need generates regression to an already satisfied lower level need. This model further suggests that, employees are motivated by recognition and involvement in decision making. This is an unrealistic and inappropriate in the sense that it will not adequately help to solve the problem on motivation. Thus the ERG theory will not efficiently help in solving the managerial crisis of employee motivation in Ojuice Company (Samuel, 2001).
Despite many criticisms on Herzberg's theory of motivation, the ideas are very relevant in the workplace in current times. On another perspective, the theory proves to be very relevant in that it focuses on the two issues; hygiene or dissatisfiers and motivation or satisfiers (Chyung & Vachon, 2005). From another perspective, employee motivation is brought about by reduced dissatisfaction rather than improved hygiene (Zillmann, 2000). From a critical perspective it is evident that; improved acknowledgment, success, accountability, progress and the work itself can be a spring of motivation (Hinze, 2000). A point worth of consideration is that, employees' level of motivation has a significant impact on their performance (Downey et al, 2006).
Importantly, research has shown that employees transfer from one company to another not basically induced by money; but due to increase of Herzberg's motivator factors (Kubo & Sak, 2002). The current increase of job seekers has also added the applicability of Herzberg's theory; this is so because people are now looking for jobs with importance and that which supports self progress (Farrell, Et al, 2002).
Based on these facts, Herzberg's two-factor theory finds its utility in solving the problem of motivation in the Ojuice Company. Though the working environment and people's expectations are continuously changing, the Herzberg's two-factor theory still finds its way in modern business. Nevertheless, the theory can be criticized for not clearly stating why people in education line of work are more motivated by money. Lack of incorporation of Herzberg's hygiene issues in the workplace leads to negative attitude towards work and the urge to leave the work. With these facts, recommendation for adoption of this model will definitely help to solve the problem (Seijts, 1998).
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