More handpicked essays just for you.
Performance management instrument
Critically evaluate Maslow‘s hierarchy of needs
Performance management instrument
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Performance management instrument
The case analysis will examine and identify Engstrom’s root organizational issues. The analyzation of the root causes will determine how to overcome challenges that Engstrom faces with their employee behavior within the organization. The results will administer the results to fix a broken system within the organization to make satisfactory progress across the board. Identify root organizational issues In May 2007, the Engstrom Auto Mirrors plant was facing the crisis. The business was doing badly and the sales had started to decline in 2005. Thus, there was a steep reduction in plant productivity and employee morale was at an all-time low. The company used the Scanlon Plan as an incentive for staff (Beer & Collins, 2008). The core element or …show more content…
• The most important part was that workers began to take the bonus for granted and expected it as part of their salary, rather than a performance bonus. This reduced the motivation among the workers and reduces the plant’s overall performance. • Then there was a layer of distrust for bonus calculations and that company might be making up the numbers and giving the workers their fair share (Beer & Collins, 2008). Analyze root causes Employees are emphatically inclined to resist the incentive as they are not secured in their roles of employment. Henceforth, Maslow’s hierarchy of needs are not being satisfied and/or fulfilled at Engstrom (Robbins & Judge, 2015). Monetary gains are not a beneficial factor to determine the needs of employees, as employees want to be challenged and desire more tasks than the monotonous everyday tasks (Borison, 2014). The bonus incentive has shown dissatisfaction between employees and managers. The equity theory judges the fairness between employees who compare ratio inputs (contributions) and outputs (rewards) to other employees within the organization (Newstrom,
According to Herzberg’s two factor theory, there exists ‘hygiene factors’, extrinsic factors of a workplace that lead to either dissatisfaction or non-dissatisfaction, but not motivation. As well, there are motivation factors, intrinsically rewarding factors of a workplace that “[emphasize] factors associated with the work itself or with outcomes directly derived from it”. In raising the salary of his employees, Dan hoped that the extrinsic reward of a pay increase would lead to intrinsically beneficial opportunities for personal growth for his employees. The opportunities for personal growth should in turn further motivate employees in their job. When Dan chose to raise the salaries of his employees, he was “influenced by research showing
The absence of appropriate motivation, fairness, and communication are recognized as the root causes of the issues at the Engstrom Auto Mirror Plant. These are the real issues that added to the decrease in efficiency and product quality. Workers who are affected in an organization might be a result of de-motivation, poor communication, and personal conflict. The presence of these components is the thing that could result in a decline of workers’ productivity, since workers feel they have no control over their work and what they produce. “The success of any Analysis Organization depends on the ability of managers to provide a motivating environment for its employees” (Osabiya, p. 63).
The root causes of the organizational issues at the Engstrom Auto Mirror plant are clear and obvious. After reading and rereading the article by Beer and Collins (2008), it appears that the main root causes of Engstrom Auto Mirror’s productivity problems are the economy, a lack of needed employees, and finally, Bent’s failure to keep open communication and positive behavioral theories like neo-classical organizational theory and systems theory alive in the organization. The economic downturn in the auto mirror industry and the subsequent layoffs of 46 workers (around 18 percent of its workforce) caused Engstrom Auto Mirror’s production and product quality to fall behind, leading to the disgruntlement of Bent’s employees. The company had promised
For my second recommendation, in order to help with the problem with business having trouble with keeping employees motivated to work for them for longer, businesses should reward employees with bonuses if they stay for x amount of year(s). This will keep employees motivated to continue working at their place of employment and decrease turnover.
This form of reward is in the form of VIP access, giving the employees power, promotions, or offering trips or getaways. These types of rewards give the employers something to look forward to, it also gives them a new exciting opportunity. Privileges and rewarding events fall into the esteem need of Maslow’s Hierarchy of Needs. This form of reward also falls into the Herzberg’s Two-Factor Theory, relating to motivators. The reward acts as a motivator where it gives people reinforcement for a job well done and interesting work or responsibility.
The culture of appreciating employees for their hard work and achievements by incentives shows how the organization values their employees. Lincoln believed “Status is of great importance in all human relationships. The greatest incentive that money has, usually, is that is it a symbol of success... The resulting status is the real incentive... Money alone can be an incentive to the miser only. There must be complete honesty and understanding between the hourly worker and management if high efficiency is to be obtained”. This shows how harmoniously the labor and management have to work together to produce
As it has been mentioned above, Maslow’s theory was published in 1943. It has its own historical background of manufacturing age, which is quite different from present society. In Maslow’s theory, pay is a fundamental factor in order to satisfy individuals’ physiological and safety needs. Consequently, managers may have the perception that emphasis on salary and bonuses can motivate their employees. Also, managers threaten job security to force employees perform well as safety needs are basic in Maslow’s theory (Chen, 2014). However, it has been proved that these measures are oversimplified. According to Chen (2014), after analyzing 12,000 diary entries, Harvard Business School professor Teresa Amabile and psychologist Steven Kramer pointed out that the most significant motivator for employees at work is “the power of small wins”, which means that employees are highly motivated when they perceive as though they are making headway daily toward an important goal. It can be seen that Amabile and Kramer’s finding contradicted Maslow’s theory. In addition, with the revolutions and innovations of high-technology, the organizations have gradually developed from manufacturing age into information age today. Stum (2001) claims that a sustaining change circle in the organizational life’ nature and the expectations of the labour force result in the
315), motivating other is to give recognition and praise can be thought as directly placing a positive reinforcement, that is reinforcing the adequate behavior by giving an award. A strong motivator is recognition because it is a regular human need. DuBrin (2013, p. 316), an outstanding of recognition, which include praise, as a motivator it that it is no cost or low cost yet powerful. Bob Nelson, a reward expert, reminds us that money is important to employees and recognizing others motivates them to elevate his or her performance. It has a huge return on investment in comparison to a cash bonus. DuBrin (2013, p. 318), according to equity theory, employee motivation and satisfaction depend on how properly the employees believe they are treated in comparison to peers. The theory debates that employees have certain beliefs about the outcomes they receive from their jobs, as well as the inputs they invest to obtain these outcomes. This theory has many implications for the leader who attempts to motivate subordinates. No matter how well a program productivity or cost-cutting is, it needs to still provide equitable pay. Also, the leader needs to see that subordinates perceive themselves to receive a fair deal in terms of what they give to and receive from the company. DuBrin (2013, p. 320), effective leaders are good coaches and good coaches are effective
Another example is CEMEX UK, a supplier of cement and ready mixed-concrete containing 4,000 employees. This company uses individuals’ rating in their end of year appraisal meetings to determine whether they are entitled to a bonus (Armstrong, MA, 2009). In return motivation for employees’ increases, instability in motivation reduces and personnel expenses also lessen. This further emphasises that performance management is a crucial topic to the successful operation of HRM in
Engstrom Auto Mirror Plant case analysis exhibits mundane organizational conduct controversies and worries with building relationships with workers. Managers of any organization goal should build and maintain a positive and open communication with workers and job fulfillment as the root based of a successful organization. Engstrom Auto Mirror Plant is in incredible misery due to absence of worker motivation; they have sufficient equipment but lack incentives to keep workers contented. The objective of this milestone is to identify the root causes of the organizational issues that Engstrom Company faces and examine underlying concerns from a human behavior viewpoint. In addition, provide proposals for organizational development that will increment
I was introduced to the concept of bonus pay first-hand when I was hired on at Convergys in Longview, Texas in June 2013. Bonus pay was awarded to employees at Convergys for meeting a variety of pre-assigned goals. These goals were updated monthly by both our organization as well as that of the company we were subcontracted to, AT&T. As a call center employee, we were required to take calls and assist AT&T customers in all aspects of their cellular phone services, broadband internet services and cable television services. We were expected to treat our customers with the upmost respect and give them the best possible solutions to fit their needs and desires. At Convergys in January 2014, bonus pay was viewed as a bonus incentive in addition to our base pay to entice us to go above and beyond the normal of our scope. Incentives were offered based on our performance in a number of different sco...
There is considerable debate over merit pay and the effect it has on employees within an organization. Psychologists believe merit pay is related to the incentive theory of psychology; people respond to rewards and with the proper motivation, it increases performance (Cherry). Employers consider merit pay an effective tool and a form of competition strategy for motivating employees to achieve positive performance outcomes. Many employers ignore the fact that incentive plans may motivate some individuals while others have high work ethics and do not need motivation. The intent of this paper is to discuss merit pay used by companies, the motivational factors on employees to reach high achievement, and the challenges that employees face due
Management spends a huge amount of time to design incentive systems and schemes to motivate their workers and to ensure they work in their best possible manner. Motivating workers by giving them decent pay helps in winning employees heart to make the work done efficiently, significantly and effectively. The most effective way to motivate people to work productively is through individual incentive compensation (Pfeffer, 1998). An attraction of getting more is a powerful incentive to people for high performance. While most people agree that money plays a major role in motivating people, in organizations there is a widespread belief that money may also have some undesirable effects on morale.
The duo further argue that incentives have been found to be the one of the means through organizations can adopt to motivate and increase their workers performance. This meams that organizations put in place monetary and non-monetary incentives to appeal to their employees to perform more. As adopted from the Pattanayak (2005, p 564), benefits are further classified into monetary incentives, tangible monetary incentives and intangible non-monetary. In essence, employees generally become happier when they get a better working conditions and benefits. As cited in Sempane, Reigner and Roodt (2002 pg 23), Locke once said “job satisfaction is a pleasurable or positive emotional state resulting from the appraisal of one’s job and job experiences”. And Linz (2002) job satisfaction is influenced by attitudes toward work and organizational
Although few individuals are motivated intrinsically from the pleasure or enjoyment an individual gets while performing the activity or by completing it, the majority of people are motivated extrinsically when they are rewarded by money, promotion, or bonus. For example, by linking motivation to one of the most famous motivation theories which is "Maslow hierarchy of needs theory", it's important that leadership understands the needs for employees' motivation for adequate workplace motivation. Maslow's theory states that people have a pyramid hierarchy of needs that they will satisfy from bottom to top. Starting from mere physiological subsistence the Maslow hierarchy of needs covers belonging to a social circle to pursuing your talent through self-actualization. Unfulfilled needs lower on the ladder would inhibit the person from climbing to the next step. The pyramid of needs is divided into two categories: deficiency needs (physiological and safety) and growth needs (belonging, self-esteem and self-actualisation). If the deficiency needs aren't satisfied, the person will feel the deficit and this will stifle his/her development. When Maslow's theory is applied to work situations, it implies that line managers have the responsibility, firstly, to make sure the deficiency needs are met. This means, in broad terms, a safe environment and proper wages. Secondly, it implies creating a proper climate in which employees can develop their fullest potential. Failure to do so would theoretically increase employees' frustration and could result in poorer performance, lowers job satisfaction, and increased withdrawal from the