Professional Documents
Culture Documents
Table of Contents:
2 Introduction Page 3
6 Conclusion Page 11
8 Appendices Page 14
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HBH225: Group Seminar Paper – Staff Motivation
1: Executive Summary:
In contemporary business, there is no one theory or approach which will motivate all
employees. A 2006 study suggests opportunity and benefits (extrinsic motivator),
coupled with interesting work and satisfying relationships (intrinsic motivators) in the
office are vital to ensuring workers remain focused and motivated (Silverstein 2007).
Realising that extrinsic and intrinsic motivators both have a part to play in the
motivation of employees is paramount to helping employee’s reach the goals set by
company management.
The discussion on the four intrinsic reward theories, namely need theory, expectancy
theory, justice and equity theory, highlight this dynamic at work. Within this field, the
Four Drive Theory has withstood the test of time, enjoying the most academic support
by avoiding ranking “needs” in a hierarchy. It has also been structured around the
inclusion of both extrinsic and intrinsic motivators, ensuring that employees’ differing
motivational needs are continually met.
An effective management plan such as that of DSE will ensure organisations can
design and structure jobs so that employees have the ability to receive both extrinsic
and intrinsic rewards within their place of work. When implemented effectively, these
motivational theories will ultimately lead to increased productivity and greater
workplace satisfaction, rewarding both employer and employee.
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HBH225: Group Seminar Paper – Staff Motivation
2: Introduction
This report examines the broad topic of staff motivation in two main ways; firstly a
review of literature discussing motivation has been conducted, and secondly the
motivational practices of three real organisations have been identified.
3: Literature Review:
George and Jones (2008) make the distinction between intrinsic and extrinsic forms of
motivation; intrinsically motivated behaviour is that performed for its own sake, that
is, the reward comes from satisfaction of performing the task; extrinsically motivated
behaviour is behaviour that is performed to acquire material or social rewards or to
avoid punishment.
In order to break down the numerous attempts to address the broad topic of intrinsic
motivation, theories of motivation can be broken down into: need theories;
expectancy theories; and equity and organisational justice theories (George and Jones
2008).
Most recent research offers little or no support for Maslow’s hierarchy of needs
(McShane and Travaglione, 2007), even Maslow himself recorded in his journal he
was surprised that people had so widely accepted his theory without critique.
Criticisms of Maslow’s hierarchy of needs are summarised in figure 1 below:
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HBH225: Group Seminar Paper – Staff Motivation
This does not however mean that his theory is without use today; his work about self-
actualisation of human potential is still of use today as it shows that needs can be
influenced by cultural and societal factors, they are not purely instinctive – until this
theory, needs were assumed to develop due to deprivation (i.e. hunger), but Maslow
proposed that needs could develop for self-gratification. Maslow also made the point
that organisations, and society in general, should be structured to allow individuals to
fulfil their progressive needs. (McShane and Von Glinow 2008).
Two other theories of needs which are of relevance to a discussion of motivation, but
lack wholehearted support are Alderfer’s ERG theory, and McClelland’s Learned
Needs Theory. These are examined in appendix figure 2.
Finally, the theory of needs which seems to have the greatest academic support is by
Harvard Business School professors Paul Lawrence and Nitin Nohria called the four-
drive theory; the four-drive theory has also highlighted the importance of drives and
needs in determining behaviour, but has avoided ranking needs in a hierarchy.
(McShane and Travaglione, 2007). A summary of the four-drive theory is included in
appendix figure 3.
Support for the four-drive theory exists for reasons outlined in figure 2 below:
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HBH225: Group Seminar Paper – Staff Motivation
This motivation theory works on the premise that the work effort of individuals will
be directed towards those behaviours that will lead to desirable outcomes. (Greenberg
and Baron 2008). That is, an individual will be highly motivated to perform a task if
they believe it will lead to a positive outcome. A more detailed explanation of the
expectancy theory can be found in appendix figure 4.
Justice and equity may not be motivational factors, but the absence of justice and
equity in the workforce may be ‘demotivational’ (McShane and Travaglione 2007).
Equity theory suggests that employees consider their own outcome to input ratio in
relation to the outcome to input ratio received by others. That is, a person examines
the output they received compared to the input they put in, before examining the ratio
of others. This can result in either equity, where the ratio between input and outcomes
of two people are equal; or an over/under reward situation, where the ratio between
outcomes and inputs of two people are different.
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HBH225: Group Seminar Paper – Staff Motivation
A workplace should provide employees with equity amongst their peers in terms of
the outcomes they receive, that is, distributive and procedural justice. Of course, this
all depends on individuals’ perceptions of fairness in the exchange and distribution of
resources.
According to Stephen Covey, ‘motivation is a fire from within. If someone else tries
to light that fire under you, chances are it will burn very briefly’ (cited by Silverstein
2007). Extrinsic motivators can have an immediate and powerful effect, but one that
may not necessarily last long; intrinsic motivators are inherent in individuals and not
imposed from the outside, and as such are considered more effective. (Armstrong
2007). This is not to say that intrinsic motivators are good and extrinsic bad, they both
have a part to play.
Extrinsic motivators offered by organisations often come under the title of rewards,
compensation or remuneration. Unkles (2008) makes the distinction between the
extrinsic rewards that have become the norm, and the extrinsic rewards that the
organisations which try to attract the best employees (employers of choice) offer their
staff. Figure 3 below lists examples of rewards that fit in each of the categories:
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HBH225: Group Seminar Paper – Staff Motivation
Expectancy theory, which has been discussed as part of intrinsic motivation, also is
relevant to extrinsic motivation; the rewards that influence whether or not an
employee decides to exert effort towards a task may be extrinsic rewards. (De Cieri et
al. 2008) Appendix figure 4, also referred to in the discussion of intrinsic motivation,
gives a detailed explanation of the expectancy theory.
According to Armstrong (2007), intrinsic motivation is provided when jobs are well
designed; that is, rather than solely using extrinsic motivators, organisations can
design jobs so that employees can experience intrinsic motivation to perform.
A recent report of employees across many fields, ages and experiences found that the
following percentages of people are motivated by the following factors (Greenberg
and Baron 2008):
45%
39%
Percentage of Employees
40%
35%
30%
25% 21% 20%
20% 16%
15% 11%
9%
10% 6% 6% 5% 4%
5%
0%
Incentives
Inspiring
Team Spirit
Getting Paid
Peer Group
Challenging
Promotion
Loyalty to
to Corporate
Prospects
Management
Contributing
Company
Sense of
Projects
Boss
Respect
Success
Praise
Factor
This suggests that there are many different things which motivate different
employees, and there is no one theory or approach which will motivate all employees.
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HBH225: Group Seminar Paper – Staff Motivation
A 2006 study suggests that fair opportunity and benefits, the opportunity to
accomplish good work, and satisfying relationships with co-workers are vital. If just
one of the three factors is missing, employees are three times less enthusiastic than a
company where all three factors are present. (Silverstein 2007). Furthermore,
according to Di Cieri et. al. ‘the importance of goal setting cannot be overemphasised,
it is one of the most effective motivators of performance’ (2008, p 382).
The Department of Sustainability and Environment (DSE) employs 2700 staff, with
90 different locations across Victoria. Their main role is the sustainable management
of water resources, climate change, bushfires, public land, forests and ecosystems
around Victoria. (Interview with P Lynch, Employee of DSE, 26 March 2008.)
With such a high number of staff the role of senior managers to keep the employees
motivated is at times a difficult one. Consequently, the main motivational strategy the
department utilises is a Performance Management Plan. This plan helps each
employee in the company to develop their work goals and determine how these goals
will help the company achieve their outcomes while also focussing on
communication, planning and training and development.
Stage Description
1 ‘Performance planning’; a performance agreement discussion between the
employee and their manager. This stage allows the employee to set their
goals and agree on the performance measures for each goal. This is
documented for future reference.
2 ‘Performance Monitoring and Review’; continuous feedback from manager
to employee regarding the employee’s performance throughout the cycle. A
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HBH225: Group Seminar Paper – Staff Motivation
To further motivate their employees to reach their full potential, the Department
acknowledges achievements by their staff which encourages them to continue to work
in accordance with the organisation’s values and behaviours. The Department
introduced a Recognition and Reward program to recognise outstanding achievers in
the organisation. Each winner receives a trophy for their workplace, a personal
certificate and a small gift. This combines both intrinsic rewards such as recognition
and appreciation, and extrinsic rewards in a trophy and gift. Some examples of areas
in which employees can gain recognition for are customer service, community
engagement or leadership and people management. (Interview with P Lynch,
Employee of DSE, 26 March 2008.)
• The Umpire of the Year Award where staff members receive a $200 gift
certificate.
• Cash bonuses to staff members who take on extra shifts and cover shifts at late
notice.
• Melbourne Netball also chooses to promote staff within the company, this can
increase staff motivation, for example, staff that start with the company as
game umpires have the opportunity to be trained as evening coordinators.
• Increasing umpires’ powers in relation to dealing with difficult players, for
example, giving umpires the ability to remove problem players from the court.
Melbourne Netball management said there were two central challenges they faced
when motivating their employees. Firstly, for some staff this is their second job,
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HBH225: Group Seminar Paper – Staff Motivation
meaning that they may have already worked 10 hours before commencing their
umpiring shift. The second is that younger members struggle to assertively motivate
themselves to work at the same standard if management is not present – client’s
complaints increase substantially when management is not present at each venue
(interview with D Glass, Company Manager, 31 March 2008).
The National Hearing Centre is a government subsidised call centre, whose business
is to call up pensioners and attempt to book them in for a free hearing check. In short,
like most calling centres, the more bookings secured, the more profit for the
organisation.
Due to the bland nature of the job which requires staff to perform repetitive and
passive duties on a relatively average wage, motivation is an exceptionally important
HR issue within the organisation. In the past, the company has used various
motivation techniques to encourage its staff; some positive, and some which are
considered to do more harm than good (Interview with Z Thomas, former National
Hearing Centre employee, 27 March 2008).
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HBH225: Group Seminar Paper – Staff Motivation
More information regarding the National Hearing Centre can be found in appendix
figure 5.
The unique strategies employed by The National Hearing Centre such as games of
hangman, lucky dips and noise clackers, are no longer used by the company as they
were, quite rightly, considered to be ineffective. In an interview with an employee of
the company, the employee stated that these techniques proved to be highly de-
motivating, because no extra incentive to perform occurred, and at times the employee
actually became distracted from their work (Interview with Z Thomas, former
National Hearing Centre employee, 27 March 2008). It is recommended that the
National Hearing Centre stick to more orthodox techniques, currently in use since the
change of management in 2007 – they should not revert back to the ineffective
practices previously used.
In broader terms, of how high levels of motivation can impact upon an organisation as
a whole, the link between motivation and performance has already been discussed
numerous times; the resulting higher levels of performance, can relate to a more
competitive workforce and more satisfied stakeholders from an organisation’s point of
view (Guthridge et. al., 2008).
6: Conclusion:
In a thorough examination of motivation, the topic has been broken into intrinsic and
extrinsic forms of motivation. From the dozens of theories and explanations available
regarding motivation, many have attracted criticisms; the most pertinent and accepted
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HBH225: Group Seminar Paper – Staff Motivation
theories include the four-need theory, expectancy theory, justice and equity theory
and reinforcement theory.
Furthermore, the motivational practices of three companies have been examined. The
Department of Sustainability and Environment successfully utilises both intrinsic and
extrinsic rewards to motivate staff; Melbourne Netball Company predominantly uses
extrinsic rewards, with the intermittent intrinsic reward such as promotion – there is
the potential though to use even more intrinsic reward structures. Finally, the National
Hearing Centre rewards staff with only extrinsic rewards, although the rewards are
now much more appropriate then they have been in the past.
It is recommended that all organisations design and structure jobs so that all
employees have the ability to receive extrinsic rewards, but also are in a position to
experience intrinsic rewards such as appreciation, recognition and satisfaction. This
includes involving staff in setting clear goals for them to achieve, encouraging staff to
reach their full potential and fostering relationships between employees.
7: Reference List:
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HBH225: Group Seminar Paper – Staff Motivation
Silverstein, B 2007, Motivating Employees: Bringing Out the Best in Your People,
Harper Collins Publishers, New York.
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HBH225: Group Seminar Paper – Staff Motivation
8: Appendices:
Appendix Figure 1:
Needs are deficiencies that energise or trigger behaviours to satisfy those needs; needs
are often fulfilled by drives: instinctive or innate tendencies to seek certain goals or
maintain internal stability (McShane and Travaglione, 2007).
Appendix Figure 2:
A theory of needs which has more support than Maslow’s, but once again is not
without its criticisms is Alderfer’s ERG theory. It also puts needs into a hierarchy,
namely, what humans need to exist, the need for humans to relate to one another, and
finally the need for humans to experience growth. (McKenna 2006). It improves one’s
knowledge about motivation because Alderfer contended that people can move up and
down the hierarchy, whereas Maslow concentrated on moving upwards; it also gained
some support for clustering human needs into three categories, which is more succinct
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HBH225: Group Seminar Paper – Staff Motivation
than Maslow’s five. Given this however, support for Alderfer’s ERG theory is still
somewhat constrained (McShane and Travaglione 2007).
Moving on, David McClelland offered a Learned Needs Theory, also known as the 3
needs theory which says that through early childhood learning, life experiences,
parenting styles and social norms people learn the need for achievement, the need for
affiliation and the need for power. (McShane and Von Glinow 2008). McClelland was
actively involved in training people to utilise the three need theory to maximise their
own performance; he advocated individuals becoming achievement and goal driven,
and networking at every opportunity, thereby satisfying the achievement and
affiliation needs. As such, McClelland has not so much devised a stand-alone theory,
but has created a training program where people learn to become aware of their own
needs, and the program seems to work; there is evidence supporting these programs,
showing that participants who become more achievement oriented and utilise social
networks tend to succeed.
Appendix Figure 3:
The four-drive theory categorises drives into four areas which compel individuals to
act, or at least trigger emotions which compel people to act. The four-drive theory
includes:
• Drive toacquire; the drive for humans to seek, take control of and retain
material objects and personal experiences.
• Drive to bond, to create relationships with others.
• Drive to learn, to satisfy one’s curiosity and understand ourselves and the
environment.
• Drive to defend ourselves physically, socially and intellectually; to defend
one’s property, and to defend others.
Lawrence and Nohria (cited by McShane and Von Glinow 2008) recommend that
organisations create environments in which individuals can strive to achieve all four
drives, in moderation, lest dysfunction and organisational politics reign. This could
involve organisational procedures including:
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HBH225: Group Seminar Paper – Staff Motivation
Appendix Figure 4:
The expectancy theory is a three step process (McShane and Travaglione 2007).
For example, if an employee was asked to work all night to finish a report by the
following morning:
• Firstly the employee would examine whether or not they believe they could
complete the task being asked of them.
• Secondly, the employee would speculate as to the outcome that would result if
they finished the report, for example appreciation, respect or bonus.
• Thirdly, the employee would examine how valuable the outcome is to them;
some individuals might do it for the appreciation they will receive from their
boss, or for the satisfaction of accomplishing the task (intrinsic motivators),
others might only do it for a cash bonus (extrinsic motivator).
Appendix Figure 5:
In the past, the National Hearing Centre has used various motivation techniques to
encourage its staff; some positive, and some which have proven to do more harm than
good.
In 2005 the company attempted to increase the motivation of its staff by conducting
group games of hangman within a shift. Only after the employee made an
appointment for a hearing check were they allowed to call out and suggest a letter or
solution to the game of hangman. With an average of just 1.5 appointments made per
shift per staff member, one could imagine how tedious and dull this activity could be.
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HBH225: Group Seminar Paper – Staff Motivation
In one particular case, a staff member was terminated after yelling at and using
abusive language towards a fellow staff member for calling out the solution to
hangman without making an appointment. This technique is not being used anymore.
Additionally, towards the end of a shift when staff appeared to be tiring and
appointment figures were down, managers would walk by near their working staff
members, waving loud clackers whilst yelling reminders about appointment quotas, in
an attempt to rouse staff members. This technique proved to do the opposite of its
intent, and was in fact, highly distracting.
In 2007, with the introduction of a new management team, along too came new
management strategies. No longer were cheap monthly raffles held, but weekly prizes
of either a $50 Myer or petrol voucher were offered. These prizes were motivating to
staff as they were practical and functional. As well as this, staff members who booked
the highest number of appointments received another functional gift of $150-$300
value, for example, an outdoor gas heater.
Another successful motivational technique includes allowing employees who had met
their target to leave work an hour early whilst still being paid. The final technique the
company introduced was a yearly prize of a car, this too proved to be highly
motivating to staff, increasing morale and creating a positive working atmosphere.
Prior to determining these prizes, the new management team had conducted surveys
within its company to better understand its employees. Therefore, by conducting this
research, management was able to determine its staff members’ needs and wants, and
cater rewards to suit.
The change of management team in 2007 obviously brought about a positive change
in the motivational policies of the organisation.
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