Application of Motivation Theories

 

Herzberg’s Two-Factor Theory To Enhance Employee Motivation

Herzberg’s Two-factor theory, also known as Motivator-Hygiene, emanated from a study conducted among accounts and engineers to determine what makes an individual feel good or bad about their job (Saif et al., 2012). Herzberg revealed that certain characteristics of a job are consistently related to job satisfaction while different factors are associated with job dissatisfaction (Ratzburg, 2003). Herzberg's motivation hygiene theory is often called the two factor theory and focuses on those sources of motivation which are pertinent to the accomplishment of work (Hall and Williams, 1986). Herzberg concluded that job satisfaction and dissatisfaction were the products of two separate factors: (1) motivating factors (satisfiers) and (2) hygiene factors (dissatisfiers)(Padee, 1990).( (illustrated in figure 1.0)

 

Figure 1.0

(Source - Herzberg, Mousner, and Snyderman, 1959, 59-83)

Hygiene Factors

The hygiene factors are also referred to as the maintenance factors and comprise of the physiological, safety and love needs from Maslow’s hierarchy of needs (Amoako, 2011). They operate primarily to dissatisfy employees when they are not present, however the presence of such conditions does not necessarily build strong motivation (Gibson, 2000). According to Armstrong (2014), hygiene factors neither satisfy nor motivate and they serve primarily to prevent job dissatisfaction, while having little effect on positive job attitude. These factors include; company policy and administration, technical supervision, interpersonal relations with supervisor, interpersonal relations with peers and subordinates, salary, job security, personal life, work conditions and status (Amako, 2011). According to Herzberg, hygiene cannot motivate & when used to achieve this goal it can actually produce negative effects over the long run (Pardee, 1990). However improvements in these conditions also do not create motivation (Huling, 2003).

 Motivator Factors

According to Herzberg, the motivator factors pertain to the job content and they are intrinsic to the job itself (Amoako, 2011).To motivate employees, organizations should focus on supplying intrinsic or motivation factors (Robbins, 2009). Intrinsic factors are actually the factors that contribute to employee’s level of job satisfaction (Yusoff et al, 2013). They comprise the physiological need for growth and recognition. The absence of these factors does not prove highly dissatisfying but when present, they build strong levels of motivation that result in good job performance (Amoako, 2011). These factors include; achievement, recognition, advancement, the work itself, the possibility of personal growth and responsibility (Pardee, 1990).

Video 01 - Motivating Your Team Using Herzberg's Motivators and Hygiene Factors

Source: (Mind Tools Videos, 2018)

The proper management of hygiene factors is an important first step in applying Herzberg's two factor theory. According to Hamner and Organ (1978) the hygienes have always been and probably always will be easier to measure, control and manipulate than the motivators. The challenge for the management in banking sector which is highly competitive is to motivate employees to enhance the efficiency while maintaining the superior service quality. In identifying the motivation factors associated with work, the commercial bank that I employ has aligned its Human Resource strategies accordingly by enabling the following;

 v  Providing opportunities for achievement through internal recruitment process. The employees are given the prior opportunity to apply for job vacancies arising either in the present area of function or in different functional areas within the bank or within the group of companies.

 v  Recognizing workers contributions through performance evaluation process

 v  Creating work that is rewarding and that matches the skills and abilities of the employee. Efforts were made by the bank during the recent years to streamline Job Evaluation & Job Banding, with the aim of increasing the transparency and the awareness of employees of their current job grade and opportunities for growth within the bank.

v  Giving as much responsibility to each team member as possible. Job descriptions are reviewed annually and communicated to employees.

v  Offering training and development opportunities in order to pursue the positions employees want within the bank. At the beginning of each year a training calendar is made available by the bank for all employees to apply for the required silks and knowledge.   

Reference

 Amoako, GK 2011,’Application of Frederick Herzberg’s Two-Factor theory in assessing and understanding employee motivation at work’, European Journal of Business and Management, vol 3, no.9

Armstrong, M 2014, Armstrong’s Handbook of Human Resource Management Practice. 13^th Edition. London, Kogan Page  

 Babudi, RM 2017, ‘Theories of Motivation and Their Application in Organizations: A Risk Analysis’ , International Journal of Innovation and Economics Development, vol 3, no.3

Gawel, JE 1997, ‘Herzberg’s Theory of Motivation and Maslow’s Hierarchy of Needs’, Practical Assessment, Research and Evaluation, vol 5, no. 11, viewed 03 November 2020<https://scholarworks.umass.edu/pare/vol5/iss1/11> 

 Pardee, RL 1990, ‘Motivation of Theories of Maslow, Herzberg, McGregor & McClelland’ viewed 04 November 2020

<https://files.eric.ed.gov/fulltext/ED316767.pdf>

Yusoff,WFW, Kian, TS & Idris, MTM (2013), ‘Herzberg’s Two Factors Theory on Work Motivation: Does it work for today’s environment’, Journal of Commerce and Management Perspectives, vol 2, no. 5, pp. 18-22

Application of Motivation Theories

 

Motivation Through Maslow's Hierarchy of Needs Theory

 Abraham Maslow introduced a theory based on personal judgement which was best known as the needs hierarchy theory. Maslow suggested that there are five major need categories that apply to people in general starting from the fundamental physiological needs and leading through a hierarchy of safety, social, esteem need and the highest need of all the self –fulfilment (Armstrong, 2014). Further more the way Maslow’s theory is explained relies on the fact that people want to increase what they want to achieve in life and their needs are prioritized according to their importance(Baubi, 2017) (illustrated in figure 1.0). “Man is a wanting Animal” (MacGregor, 2003). When a lower need is satisfied the next highest becomes dominant and the individual’s attention is turned to satisfying this higher need (Armstrong, 2014). The need for self-fulfillment however can never be satisfied (Armstrong, 2014). 

Figure 1.0: Maslow’s Hierarchy of Needs

(Source: Saul L 2018)

Organizational  & Managerial Applications of Maslow’s Need theory

The greatest value of Maslow’s need theory is the practical implications it generates for the Management of an organization (Greenberg & Baron 2003 p.195). The rationale behind the theory is that it enables managers to suggest on how to make the employees or subordinates become self-actualized since the self-actualized employees are likely to work at the maximum creative potentials (Kaur, 2013). From a motivational point of view, Maslow’s needs theory explains that a need can never be fully met, but a need that is almost fulfilled does no longer motivates (Ajang, 2007). Hence identifying where the employee is on the hierarchical pyramid is essential in order to motivate him/her (Robbins, 2001).

 

Ø  According to Maslow any employee is motivated first to satisfy the basic physiological needs such as food, drink, air, clothes and shelter. As long as the employee remains unsatisfied they turn to be motivated only to fulfill them (Ajang, 2007). Organizations provide a reasonable salary to employees to fulfill the main requirements. “Man is a wanting Animal” (MacGregor, 2003), further MacGregor explained that when a human is satisfied with one need another will appear. Hence a human should satisfy his basic physiological needs before he even think of social, security, esteem or self-actualization (MacGregor, 2003).

 

Ø   Employees moves “up” the hierarchy and seek for security needs once the physiological needs are satisfied and they cease to act as primary motivational factors (Armstrong, 2014). This refers to the need for a secure working environment free from any threats or harms. The rationale is that employees working in an environment free of harm do their jobs without fear (Ajang, 2007). Managers could motivate the employees by providing financial security. It is an important type of safety need for organizations to motivate employees. 

 

Ø  After physiological and safety needs have been fulfilled, the third level of human needs is the social need which involves the feelings of belongingness. The need for interpersonal relationships motivates the employee behavior (Kaur, 2013). Examples include friendship, intimacy, trust, acceptance, affiliating and being part of a group (family, friends, work). Managers could provide opportunities for employees to feel the spirit of working as a team which tends to increase the performance.

 

Ø  Esteem need includes self-esteem through personal achievement as well as social esteem through recognition and respect from others (Abbah, 2014). Recognizing and awarding employee’s accomplishments is an important way to make employees satisfy their esteem needs. However according to Greenberg & Baron (2003) awards are effective only when it is linked to desired behaviors.

Ø  At the top of the hierarchy is the self-actualization, which represents the need for self-fulfillment – a sense that one’s potential has been realized (Abbah, 2014). According to Armstrong (2014) the need for self-fulfillment however can never be satisfied.

Criticisms of Maslow’s Need Theory of Motivation

Maslow’s needs theory suggests that if people grew up in an environment in which their needs are not met, it is very unlikely that they will function healthy and as well adjusted individuals (Kaur, 2013). However the most serious limitation of Maslow’s needs hierarchy is its assumption that everyone has the same needs hierarchy (Abbah, 2014). Nadler & Lawler (1979) cited in Graham & Messner (2000, p.198) were also critical of the need theory of motivation and argue that the theory makes unrealistic assumptions about employees such as (a) all employees are alike (b) all situations are alike and (c) that there is only one best way to meet needs. According to Graham & Messner (1998, p.196) these are not theories of motivation, but rather theories of job satisfaction.

 

 Regardless of the criticism levied at the hierarchy of needs theory, I believe that the theory has made a significant contribution to organizations especially managing in the area of employee motivation. Employed in a leading commercial bank, it is observed that the bank do practice to apply the needs theory to keep their employees motivated.

 

Ø  All employees are being paid with a salary which is reviewed yearly in keeping with the industry benchmarks to meet the basic physiological needs. Remuneration structures are unbiased and comprise guaranteed pay and performance-based variable pay.

 

Ø  In addition to the guaranteed pay the bank provides special loan schemes at low interest rates such as housing loans, vehicle loans, loans for education, personal loans, sundry loans and family health insurance covers in order to uplift the employee and the family’s livings standards. This satisfies the safety need, the second hierarchy.

Ø Further the banks do consider the need of its employee’s feelings of belongingness. Togetherness and team spirit are fostered through the events organized, some of such being celebrating religious events of all religions such as Vesak, Ramadhan, Thai Pongal, Christmas, staff trips including families,  kiddies party and the annual  dinner dance. Further annually a program titled as ‘Young Talent Within’ to recognize the academic and extracurricular achievement of the children of the employees is being organized. Bank believes strongly not only in engaging the employees but their families as well since the family nucleus itself will go towards producing a happy and an engaged employee.

 

Ø  Recognizing and rewarding the achievers is one of the primary events in the bank that  

   I 'm employed. Annually the ‘Retail Banking Awards’ ceremony is being held to recognize those who achieved beyond the expectations. Furthermore the bank also recognizes those employees for the special skills and commitments they have shown in non –job related areas. A recognition ceremony is being held annually to appreciate and reward the employees who represented the Bank in the mercantile arena, Toastmasters, the very own music group and the talented photographers.

 

Ø  In addition to the above the bank rewards its Leadership Team with the benefit of owning luxury vehicles for their esteem and self-actualization needs of which the cost is born by the bank. 

 

References

Abba, M.T. (2014). Employee Motivation: The Key to Effective Organizational Management in Nigeria. Journal of Business and Management. Volume 16, Issue 4

Ajang, P.E (2007). Assessing the Role of Work Motivation on Employee Performance, Umea School of Business

Armstrong, M.  (2014) Armstrong’s Handbook of Human Resource Management Practice. 13^th Edition

Greenberg J &Baron A.R (2003) “Behaviour in Organizations”, Prentice Hall, Vol. 8, pp.188-215

Kaur,A. (2013). Maslow’s Need Hierarchy Theory: Applications and Criticisms. Global Journal of Management and Business Studies. Volume 3, Number 10 (2013), pp. 1061-1064

 

Employee Motivation To Enhance Employee Performance In The Banking Sector

 

Introduction To Motivation

All organizations want to be successful in today’s business world which is highly competitive and more volatile. Over the years organizations have considered the human capital as being one of the primary assets, capable of leading them towards success or to a decline if not managed properly (Dobre, 2013). Despite its market complexity and its size, organizations strive to retain the best employees acknowledging the important role and the influence on organizational effectiveness. Organizations develop strategies to compete and overcome challenges by creating a strong and a positive relationship with its employees and directing them towards fulfillment of tasks. If the employees are not satisfied with the jobs and are not motivated willingly to fulfill the tasks and achieve goals, the organization cannot attain its success (Abbah, 2014). 

For an organization despite the financial resources being the strongest, the human resources create competitive advantage for the organization (Rizwan et al, 2010). There are a large number of factors affecting the performance of an employee. Some of such being organizational culture, recognition, job satisfaction, training and development and more importantly motivation which has the significant degree of influence over the organizational performance (Abbah, 2014).

Work motivation is derived from an interaction between individual differences and their environment (Latham and Pinder, 2005). According to Bartol and Martin (1998) motivation is an internal drive to satisfy an unsatisfied need and to achieve a certain goal. Employees have different mixture of needs that are continuously competing with one another. All individuals are not the same (Abbah, 2014); hence each one should be motivated using different strategies. Some employees are money motivated while another would find recognition or a better work environment is motivating (Dobre, 2013).

The primary reason for any individual to joint to a company seeking employment is to meet his or her personal goals. However the problem occurs in the absences of an alignment between the individual goals and the organizational goals. The moment when both goals are in align things get streamlined (Dobre, 2013). As Kalimullah (2010) suggested, a motivated employee has his/her goals aligned with those of the organization and directs his/her efforts in that direction. Hence the management should have its focus on reaching the employee to their individual goals while ensuring they meet the organizational goals. People are motivated when they expect that a course of action is likely to lead to the attainment of a goal and a valued reward (Armstrong, 2014).

As an employee of a leading Commercial Bank in Sri Lanka, the banks transformational journey over the last 40 years had made possible through the collective efforts of the most valuable human resource .The bank is powered by a team of highly-competent and motivated professionals who are empowered to drive the bank to deliver results. The human capital strategy aims to develop and retain a competent and energetic team that is motivated to deliver superior client experiences. (National Development Bank PLC Annual Report – 2019).

 References

 Abba, M.T. (2014). Employee Motivation: The Key to Effective Organizational Management in Nigeria. Journal of Business and Management. Volume 16, Issue 4.

Armstrong, M.  (2014) Armstrong’s Handbook of Human Resource Management Practice. 13^th Edition.

Dobre, O (2013). Employee Motivation and Organizational Performance, Review of Applied Socio- Economic Research, vol. 5, Issue 1/ 2013, p. 53

Johnson S and Nandy S (2015), Organizational behavior, Management, & Leadership, vol.1

 Latham, G. P., and Pinder, C. C. (2005). Work motivation theory and research at the dawn of the twenty-first century. Annu. Rev. Psychol.  486. doi: 10.1146/annurev.psych.55.090902.142105

 Manzoor A (2012) Impact of Employee Motivation on Organizational Effectiveness, Volume 3