For a firm to efficiently run, company should produce creative ideas and high efficiency of the work, and to do this, a firm can motivate each worker of the organization to elicit each of their discretionary effort. It is because, it directly web links with the full total wage spending of the business that ought to be linked to outcome and cost of monitoring effort and considering all those making employees eager to work will result in better efficiency of the business.
Employees will be the core or the main body of all the development of product and service. So how can a business which will not even fulfill their own staff will possibly fulfill the customers with high quality product and service?()
Therefore, there can be an idea weighing on the management style of 'of the individuals, by the personnel, for the workers'().
Following to above management style, administrator of big companies are developing or considering variety motivating techniques and inspiration theories. So businesses not only needs offer fast with each of their own fast-changing environment but also concentrate to make best working condition for the employees to maximize determination.
Like firms mentioned above with motivation, they may be nimble to listen to the promises of the employees. They apply techniques like project team-work, performance-linked pay and incentives to attain perfect inner-service to the employees.
So, like above, there may be gaining need for giving determination to workers. In this essay, I'll search and research theories of determination and look in to fine detail of successful organization 'Nokia' and assess this firm by carrying it out so, I would like to learn the meaning of motivation and exactly how well those professionals of Nokia have elicited 'discretionary effort' from employees for the business.
Maslow's Hierarchy of Needs theory
Most famous is Abraham Maslow's hierarchy of needs theory. He presumed that there is 5 degree of hierarchy of needs can be found within human aspect. (A. H. Maslow, A Theory of Human Drive, Psychological Review 50(4) (1943):370-96)
It is simply most basic needs for individuals to survive. Things like needs of air for breathe, fulfillment of being hungry, thirst, sex and sleep. They are the biological needs which are most essential, it comes front side of all the desires that people would wish.
When physiological needs are fulfilled, the needs of security are used.
Human should fill sense of protection of their own health, career, property and resources. Those factors make them sensing safe.
Needs of Love/Belonging
Human is interpersonal animal, when leading two needs are packed, third need may become dominant. Human nature always looks for for the sense of owed and love/companionship. Maslow represents "people seek to overcome emotions of loneliness and alienation" (Maslow, Abraham (1954). Motivation and Personality. NY: Harper).
Needs for Esteem
When the first three needs reach to adequate level, the needs for esteem can become next. It is like self-esteem and admiration from others. When these self-esteem and value is gratified, the person feels comfortable and valuable as part of person in a population. Scarcity of those needs would make a person feels weak, poor and nothing.
Needs for Self-Actualization
When each degree of foregoing needs is completely satisfied, then your last degree of needs "self-actualization" is activated. Relating to Maslow, self-actualization is just what a person's need to be what they are "given birth to to do. " There is a famous estimate by Maslow, Abraham H. "A musician must make music, an designer must paint, a poet must write, if they are to be in the end at serenity with themselves". These needs make visitors to feel progressing, reach-potential and self-fulfillment. (Mindset - The Seek out Understanding
by Janet A. Simons, Donald B. Irwin and Beverly A. Drinnien
West Publishing Company, NY, 1987)
By watching hierarchy of needs, each level tends to be satisfied to advance on next level of hierarchy. However, from the idea of 'supplying drive' view, nothing of those desires or needs could not been properly satisfied. Maslow theory describes that somehow-satisfied need cannot stimulate the people any more.
>> How hierarchy of needs Theory could be used in management
According to Maslow, if someone needs to motivate someone, there's a need of understanding what that specific person needs and discover where his or her need is found in hierarchy of needs and provide the upper degree of hierarchy.
Adams's Equity Theory
Adams, J. S. 1965. Inequity in sociable exchange. Adv. Exp. Soc. Psychol.
An individual always do compare himself to others. Suppose, an individual acquired offer of 2500 pound monthly and he considers it is very great deal and took the job, he'll do his job with enthusiasm and he'll be happy with his work. However, if another person or his acquaintance has got the same job with 3000 pounds with same as his capacity/work time/contribution, probably he will not be happy about his earning and job. Even if he was content with his earnings in the beginning, when he feels that it's not fair or equal treatment, the problem that he gets good paid you won't consider him much, but instead obsessed with other's repayment.
The problem is that individual starts to believe comparatively and begins to believe it is not fair. An individual always compare within his brain and think about the effort he devote and the reward. In so doing, if an individual thinks that he's not fairly cared for, the input work will be straight affected (demotivated).
Above example's idea is called 'Collateral Theory' and it was developed by Stacey Adams in 1965.
It is simply, an individual contrasting his input-reward and other's input-reward proportion.
For an employee to compare himself in collateral theory, the referent is important adjustable. There are three types of referent 'system', 'home' and 'other'.
For system, the referent is the system of individual's belonged firm. Individual will take wage constructions, wage coverage and decision-making process into the consideration. Also, company should make important decision with organization's system to a person as an evaluation to others.
Putting 'self applied' as an evaluation referent, end result ration of type will be referenced to specific.
This is shown by one's experience or standard wage or family maintenance-need allowance.
Equity theory is not only interested in utter reward, it also offers affinity for other's reward. An individual do compare other's input-reward, founding on effort, experience, education, and capability over their wage level, promotion and identification. If an individual seems unfair and inequitable over prize ration of insight, this feeling can make him/her to see 'anxiety'. This tension will regularly provide drive until he/she is treated in collateral to him.
>> How Equity Theory could be used in management
Monthly paid employees will improve quality and volume to feel the fairness with 'pressure' and increase source factor for fair wage percentage.
When compensation is made with Production amount, over-rewarded staff member will have lower quality but higher variety merely to increase their income. However, someone who receive payment founding on price ratio increase in effort to accomplish fairness and this will lead to increase in volume and quality. But, this might result in surplus payment and unfairness. Therefore, professionals should guide employees to improving in quality somewhat than amount.
Also inspiration is inspired by not only utter praise but also comparative reward. Each time when employee seems that s/he is unfairly cured, it will follow an action to fix about that inequity, like better or diminished output or quality, absence and turnover. Therefore, it is the very first thing to make employees to feel in collateral in equity theory.
>> Vroom's expectancy theory
Most comprehensive description about motivation is performed within Victer Vroom's Expectancy Theory.
Expectancy theory is well detailed by Montana (Montana Patrick J; Charnov, Bruce H, Management - 4th model; (2008) - Barron's Educational Series, Inc. ), "This theory stresses the needs for organizations to connect rewards right to performance and to ensure that the rewards provided are those rewards deserved and needed by the recipients. "
The expectancy theory suggest that action is used the expectation from the result and the amount of effort is decided by how attractive the result is to an individual himself. Below, there are three linkages with this theory.
Effort-performance linkage: Possibility of compensation expected by adding specific amount of effort.
Performance-reward linkage: Values which expect right pay back will be given by doing certain level of performance.
Elegance: a person's aim for and desire of potential effect or reward which could be obtained by doing his job efficiently.
All explanations seem similar, but simply there are three points.
First, how much an individual should work for several level of results and whether that result is possibly achieved.
Second, exactly what will be the incentive for doing such work?
Third, how attractive the pay back is from your time and effort of doing such work and how does this job assist with goal success?
Making use of Expectancy Theory
How 'Expectancy Theory' could be applied? For to link with motivation, I am going to example myself and try to discover how this theory used.
Most of students have choice on professors or lecturer expecting for something that they would like to learn from the course unit. They would like to know when the exam will be, what kind of assignment they have to do and how much percentage will be studied to get maximum quality or how much timeframe will heading to be needed, and think logically about whether this course is associated with what they want.
Let's say that Personally i think in the manner above. I liked this program unit and performed really hard to get good make on this article. I have ready for very long time because of this and believed that will be helpful once i graduate and get good job or get into get better at course. Then, direct result came out, my average report of all the course products were 72 percent, however, this type of course was 41 percent. And I acquired angry and frustrated. Like other tasks, I well prepared exact timeframe and put effort, but how could only this type of device gets such a low score?
From here there will be some interesting facts will be coming out. Abruptly, he (I, from other's perspective to any extent further) will be constantly absent this product course lecture, nor revise.
Even if he attends the lecture concentration for this course is hugely dropped.
So, we're able to say that his motivation is missing with the related subject. Why does he change? To clarify this using inspiration theory term;
At the start, the merit of good grade (Effort-performance linkage) was high. However, the effect was not good (Performance-reward linkage). In other words, if the task was rather graded based on what he have and acquired good credit score, the Performance-reward linkage is satisfied and it would have encouraged him more. However, if he is demotivated, it is from his perception that his knowledge had not been incongruous with fair grading system.
>> How 'Expectancy Theory' could be used in management
First, Expectancy Theory emphasizes on pay and reward. As a result, organization should believe employees also want the same pay back and compensate. This kind of perspective is from egoism an employee quest expected-satisfaction to be maximized. In order that manager needs to try to accomplish that expected-satisfaction smartly.
Second, theory things up knowledge of attractiveness by the staff. Employees would want to be treated sensibly with positive result/target/outcome they expected. Therefore, the company should make an effort to satisfy employees' appeal.
Third, theory highlights on expected performance. Will an individual is aware of what is expected on s/he and exactly how can it be compensated. If employees do not grasp the point of this relation, the best goal of corporation will be never found. So, this is essential to make both supervisor and workers to understand clear of performance-reward connection.
Last, theory relates with understanding. No real matter what actually happens, a person's perception decides level of effort according from not objective end result but from performance, prize and goal achievements. Therefore, there is a need for constant feedback to match the truth and perception of personnel.
What is Nokia?
Nokia is a Finnish multinational network organization is headquartered in Keilaniemi, Espoo ("Nokia in brief (2007)" (PDF). Nokia Company. March 2008. )
Nokia's main industry is in the developing of mobile devices and in converging Internet and marketing communications market sectors, with 128, 445 employees in 120 countries, sales in more than 150 countries and global total annual income of EUR 50. 7 billion and functioning income of 5. 0 billion in 2008. It is the world's largest supplier of cell phones: its global device market share is roughly 38% in 2009 2009, ("Q3 2009: Quarterly and annual information". Nokia Corporation. 2009-10-15)
The Nokia brand, appreciated at $34. 9 billion, is posted as the fifth most valuable global brand in the BusinessWeek, Best Global Brands set of 2009 (first in non-US Company). It's the number 1 brand in Asia (by 2007) and European countries. Also Nokia is the 42nd most excellent company worldwide in Fortune's World's Most Adored Companies list of 2009, and the world's 85th largest company as assessed by revenue in Fortune Global 500 list of 2009. ("Fortune Global 500 2009". Lot of money. 2009-07-14. )
- Nokia's Research study for motivation
Monetary Incentives: work performance wage structure, Global bonus plan (when revenue exceeded 20%, 5% cash payback), production and experts' bonuses.
Non-monetary performance extra system and Complete and Rational Assessment
Nokia motivates employees by giving rewards according with their performance. However, it's hard to observe that they only motivated people with monetary results, Non-monetary performance reward system also help to motivate workers. Things such as promotions and probability to self-development can help and also a clear and fair system because of this is needed.
Nokia is not in seniority system, there is a case 34 yrs. old man became vice president by his ability. Nokia tried to achieve highest degree of work satisfaction.
2. Empowerment organization
Allowing autonomy, causes motivation
Bureaucratic chain of control provides high efficiency, but it has drawback of blocking strategies approaching from bottom line of workers. And this is one of the factors blocking desire. Exampling Nokia, they allow significant amount of autonomous decision to individuals. This provides sense of owned by a company and folks feel that they are really taking part for company's income. This contributes to motivation of staff due to Maslow's hierarchy of needs theory (sense of belonging).
Case: Nokia immediately reinforced 6, 000, 000 us dollars for the marketing for Pacific-Asia market as they received idea of competition going tough in China.
3. Project administrator system
Technology, marketing, development and salesman unites as you team and work with 1-2 years for specific project and managers for the task are empowered like chairman in that specific task; this stimulates workers as it has venture business capabilities. Nokia has volume of small projects groups. Those groups make a decision everything like estimated budgets too. This gives capacity to agilely response to market changes.
4. Human reference development program
Providing self-developing opportunities to employees / Maximizing self-development and self-actualization at work
Human resource is essential factor for inexpensive production in industry f like Nokia with high knowledge and technology. Competitive electricity is recruiting. Modern employees have a tendency to think a corporation as not only place for earning-money but also as place for self-actualization. Therefore, a business without self-development lacks capacity to attract more human resources (Appeal, Vroom's expectancy theory). So, businesses should provide more opportunities and sense of responsibility of the business like Nokia's real human learning resource development program. (In Nokia, they value employees through 180 inspections list, helps to determine each personnel adaptation-skill and decision-making skills in five levels. In so doing, it tells what that staff needs in specific details and provides job relating to it and provide staff training service) and they also provided for experience improvement program by on offer world branches.
» Based on Nokia's inspiration system, 19% of market talk about in mobile technology in 1999, increased up to 35% in 2001. Also, total sales were increased 48% leaving total profit 56% higher.
Matthew J. (1996), Future management (‡†) 11, Dae-kyung posting company.
Nokia homepage http://www. nokia. com
Analyzing Nokia's success From www. hunet. co. kr
Managers tend to feel that talented-employees turnover is cause by higher financial praise from other company. However, a lot of employees' turnover reasons are like vision-realization, challenging to new work, tranquility of both life and work, higher opportunity of recognition and flexibility of culture and corporation. These sorts of reasons suggest that motivation isn't just from financial issues but also from Non-monetary issues like mentioned above. I really believe what employees consider most is being successful recognition of their bosses about work-performance. If this is not done, it's evitable to demotivate employees. In this distinction, Nokia has well realized workers, with fair assessment; they have suggested sense of responsibility to their workers for the business and made them feel as important part of Nokia. As finish Nokia received grater revenue and it can be said that Nokia has successfully motivated their workers. Those varieties of techniques of determination are all founded from the ideas of Maslow, Adams and Vroom and Nokia successfully adopted in reality.
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