Free Essay About Demonstrating Management Structure
Four motivational theorists
Maslow motivation theory
Many theories, hypothesis, and studies have been developed from the time of the great depression to explain the subject of the human motivation. One of the most applied theory in the workforce is the Maslow’s Hierarchy of need. Maslow intention was to help people understand what they motivate them and hence believed that there exist a set of motivation system that is not linked to unconscious desires or rewards. Maslow developed his theory in 1943 stating that people are being motivated by the desire to achieve certain needs. The needs are perpetual in a way that when they achieve one need, they seek to achieve the next need, and the cycle continues. According to Maslow, these needs are identified in a pyramid called the “hierarchy of needs,” which contains the five categories of human needs. Initially humans desire to acquire physiological needs, such as water, shelter and food. Subsequently, the human desires for safety, social need such as love and relationships, self-esteem, and self-actualization in a hierarchical order.
McGregor motivation theory
McGregor is known for his two theories of human behavior, Theory X, and Theory Y (McGregor, 1960, p.166). He did not suggest that workers would be one type or the other. Rather, McGregor saw the two theories as two extremes of a whole spectrum of possible behaviors in between. The theories styles portrayed the different approaches manager take in motivating their employees. “The average human being learns under proper conditions, not only to accept but to seek responsibility (Carson, 2005, p. 453).” Many organization leaders prefer theory Y, but McGregor suggested each theory has applicable value in the right environment. Theory X is applicable when the leader’s goal is to coerce or force workers into enhancing production. Theory X permits the manager to maintain his great control, as well as authority over the business. Theory Y leader’s goal is to get employees involved to create a team-oriented culture. This is by minimizing the amount of direct oversight of workers (McGregor, 1960, p.167). The leaders in this category are in a position of making very critical decision-making tasks. To name few, theory Y leads to successful fruits such as self-directed work teams, job enrichment, self-management, and empowerment (Carson, 2005, p.451).
Herzberg's Two-Factor Theory of Motivation
Frederic Herzberg is a common icon figure in the management environment for his workplace satisfaction concept. He conducted research from 200 accountants and engineers, where he collected information about their personal feelings in the working environments. From their response, Herzberg formulated two set of factors that influences the employee's level of performance and attitude in the working place. These factors are Motivation and Hygiene factors. According to Yusoff, Kian, and Idris (2013, p.13), Herzberg suggested “motivation factors are intrinsic factors that will increase employee job satisfaction.” On the other hand, “hygiene factors are extrinsic factors to prevent any employees’ dissatisfaction” (Yusoff, Kian, & Idris, 2013, p.13). Herzberg’s theory and Maslow’s theory are related, but the Herzberg’s theory contains more factors to determine how people are motivated in the working environment. Lower level needs, such as hygiene factors only prevents people from being dissatisfied but does not motivate them. Therefore, high-level factors, motivational factors must be employed to motivate individuals.
Alderfer motivation theory
Clayton P. Alderfer's ERG theory summarizes Maslow’s five human needs into three categories that are Existence, Relatedness and Growth (Caulton, 2012 p.3). He said that existence needs involve all physiological and material desires, for instance, food, air, water, clothing, affection, and love. Relatedness needs include social, external esteem and relationships with significance such as co-workers and employers. Growth needs involve internal esteem and self-actualization, which makes one make productive effects in the environment he is. There are three relationships in Alderfer's ERG theory (Caulton, 2012, p5). Satisfaction-progression relationship state that is moving up to higher level needs is based on satisfied needs. Frustration-regression states that when a higher level need is not fulfilled, a worker may regress to lower level needs which are easier to satisfy. The third relationship is satisfaction-strengthening, which states that involving repetition strengthens a current level of satisfied needs.
Applications of the Theories in the real organization- Coca Cola
Applications of Maslow’s Hierarchy of needs
In Coca-Cola organization, the management considers their employees as the crucial assets to the organization who need motivation to drive the organization forward. In broader terms, the manager and top officials of the organization have to make sure they met the deficiency need of their employees by giving proper wages and safe environment. This implies that management has to imply that Coca-Cola Company provides employees with the environment that foster their employees’ ability to meet their full potential. Although some of the techniques are hard and costly to implement, others are inexpensive and easy to implement (Staff, 2015).
In order to meet the employees’ physiological need, Coca-Cola Company provides employees with free beverages of their choice, breakfast, and lunch. In addition, the institution has canteens where employees can purchase food at a subsidized fee. In terms of security, the organization provides an enabling environment where employees can achieve their career goals, enhance skill for improvement and excel in their performance. In additional, the company considers offering their employee competitive pay as a crucial way to motivate the talented individuals. Other techniques used to enhance security include medical covers, health and life insurance, retirement and fringe benefits. For social needs, the company encourages social interaction by allowing employees to create team spirit and participation. For example, employees participate and join Green Team that encourages employees within the organization to live sustainably and enhance coordination. In addition, Matching Gifts Program grants the participant up to $10,000 each year (Coca-Cola GB, 2010). In order to boost self-esteem, the manager delegates some of their roles and responsibilities to employees and also provide training. For example, Coca-Cola Company offers training and mentorship program to boost the employee’s network and resources. In the last bit of the Maslow’s human need, the company enhances self-actualization through encouraging creativity within the organization. The employees participate in the innovation programs so that they can add value and uniqueness to the company’s products.
Application of Herzberg’s Two-Factor Theory of Motivation
According to the Herzberg’s theory, the two factors, i.e. motivation and Hygiene are common in the Coca-cola organization though almost similar to the Maslow’s techniques. The company applies the Extrinsic factors to prevent employees from dissatisfaction, but have less contribution to their motivation needs. For example, employees are offered with basic salaries, good relationship with their seniors, working environment, supervision and they are covered by company policy. For instance, the company produces working environment that enhance health and happiness among their workers. All these factors are meant to make the employees neutral in neither motivated nor satisfied. Without them, e.g. delay of salaries, the employees would feel dissatisfied in the working environment.
On the other hand, the motivation factors or intrinsic factors are applied by the company to enhance job satisfaction among the employees. According to Yusoff et al. (2013, p.19), the intrinsic factors enhances employees’ motivation through “outcomes, responsibilities delegated experience learned, and achievement harvested.” As such, the Coca-Cola management provides the employees with the chance for advancement and growth as motivational factors. For instance, the company offers graduate trainee and internship programs to help the new entrant acquire the required skills and knowledge and hence grow their careers. In addition, the company offers training and development programs, feedback and coaching, on-the-job learning to ensure that their employees have resources to learn more and grow their careers (Coca-Cola GB, 2010).
Application of McGregor and Alderfer theories
The main aim of McGregor and Alderfer theory is to improve the motivation of the employees. That, why Coca-Cola makes it priority in treating it, people well, helping them to develop and give them a rewarding working life. In McGregor theory, Coca-Cola managers have a permission of apply forces that will enhance optimizing production in the company. They ensure that the company working place is conducive and include diverse, fair and inclusive environment. By using theory Y of McGregor, manager ensures that they have specialized and trained employees. The managers also ensure the employees are committed to training and the company has a mentoring program to broaden employees’ resources and network. All this is to comply with theory Y that makes sure employees are involved in creating a team-oriented culture that makes managers minimize the amount of direct oversight of workers.
In Alderfer theory, managers in the company make sharp decision-making that help in creating motivation in employees such as social needs. Social needs in Coca-Cola involve caring employees’ health and dental coverage for eligible dependents. Theory x gives the Coca-Cola managers to maintain their great control and authority over the business. Therefore, this theory becomes most valuable and necessary in Coca-Cola mass-production. In this theory, the managers use their competence, skills and academic qualifications in ensuring great control and application of proper managerial skills. At the company, managers comply with theory X by applying five basic functions in the company. The functions involve; planning, staffing, organizing, controlling and leading that help the managers to create a better environment. In such an environment, employees give an efficient work that give potential output of the company.
In Alderfer theory of motivation, there are three basic needs that employees in Coca-Cola require. The fulfillment of these needs serves as motivation to fulfill different needs of employees. In existence needs, the company considers all the needs that the employees require to live. For instance, the company gives employees food, water, clothing, shelter, and love. In love needs the company includes same-sex domestic partners, allocates drinking fountains to the employees and offer breakfasts, lunches and dinners to employees. In relatedness needs, the company offers interpersonal connections by having a common means of communication that help in social connection in the organization hierarchy.
The effectiveness of the implementation of the theories at Coca-Cola Company
Coca-Cola Company maintains social status needs by ranking people within the company according to their ranks. To recognize the ranked people, the company gives them different uniforms from other. In growth needs, Coca-Cola ensures there is personal development; this is by having promotions, trainings, mentoring, and internships to the employees. This helps the company to improve on creativity and have meaningful work which maximizes the production of the Coca-Cola Company. The company considers the needs and offers these specific practices in place to ensure that employees are highly motivated. This can enable them to do their best and make them have a feeling of being an important role in the company's future.
The Coca-Cola Company is the world largest beverage company and also the global number one marketers and producers of soft beverage drinks (Friedman, 2009, p. 230). It is known for its valuable royalty brand globally. Coca-Cola Company has managed to achieve set targeted goals outlined in their 2020 vision through the implementation of the motivational theories. This success of the company rotates around five key elements, which includes quality, availability, recognized brand, innovation, and marketing. Over the time, several motivation theories have created an effective organization structure of Coca-Cola. Through McGregor motivation theory, managers have learned effective motivations that are key essential in matters of organization’s employee performance.
Performance = motivation × ability
McGregor motivation theory improves competence and experience of the managers who are the key factor in the company. They make appropriate decision-making which is a key aspect of the business. This make has organization in the company to be structured on its functions, process and product hence achieving their objectives. The company has not only flexible managerial structures that focuses on product, distribution of finance and marketing but also has profound encourage teamwork in their innovations (Doyle, 1990, p.12). Motivated workers are often the engine drive in moving the company forward, and the Coca-Cola Company often organizes its employee into teams in carrying out their operations. To increase motivation of the employees, the company also ensures that all needs according to Alderfer motivation theory are accessible to workers. These create conducive environments that fulfill the needs that serve as motivation to fulfill different needs of employees.
The company has achieved its goals by applying Maslow theory which intention was to help people understand what they motivate them. Hence, this makes the company realize that there exist sets of motivation systems that are not linked to unconscious desires or rewards. The company has identified its key motivation factors and has capitalized on them hence prospering it its field of operation. Frederic Herzberg is a common icon figure in the management environment for his workplace satisfaction concept. Both theories are related since they talk about the employees’ needs that help them to be motivated hence improving company’s production that makes the company obtain its set targets.
Through the use of this motivational theories, the company has created a diverse and talented workforce in the healthy and safe workplace, to enhance the customers’ satisfaction. As a result, the motivated workforce has fostered the business performance through an increase in market share, sales volume, customer satisfaction and profitability. For example, through employee creativity, the company has accomplished product innovation, market, sustainability, and system innovation to enhance the customer’s satisfaction. In addition, the employees motivational development and experience, has enabled the company to embrace the technology and hence connect with a young generation. As a result, Coca-Cola has been named as the 2014 mobile marketer of the year (Coca Cola Journey, 2015). However, the motivational factor have shown less contribution to the profitability of the company. The employee effort on the finished products generates higher net operating revenues but lower gross profit margins. For instance, the company gross profit declined from $28, 433, 000, in 2013 to $28,109,000 in 2014. In addition, the company has a reputable brand loyalty and substantial market share in the nonalcoholic beverage industry. On the employee turnover, the motivational techniques have no effect on the company. In 2014 and 2013, the company had about 199,200 and 130,600 employees respectively. However, this turnover was primarily because of the business refranchising (Coca Cola – Global, 2015).
Implementation of motivational techniques applied by Coca Cola
The motivation theories have not reflected optimal result in the company. For instance, the techniques have not contributed to profitability of the company. Therefore, some changes need to be implemented to increase the effectiveness of these techniques.
The company should empower and motivate the employees by timely and appropriate communication, which can be done by involving the employees in the decision-making. In this case, the company should develop open door policy that involves voluntary employees who can suggest effective ideas that abide by the company’s mission and objectives.
The management of the company should also respect, develop task and act fairly to the employees at any time, through judgment, experience, and wisdom.
The company should also develop incentive programs as a way of motivating their employees. Such incentives might include motivating all employees at some period.
The company should also develop performance appraisal that focuses more on the performance according to the pre-set goals.
The company also make sure that the culture of agency and autonomy is enhanced by the management. This can be implemented through the creation of the working place that employees can related themselves to and hence have autonomy to choose what is good for the company’s success.
The management can also incorporate employees in the share of the company’s success. The employee motivation, productivity, and performance can be determined by how much they have invested in the company. Therefore, having shares in the company’s profit can make them motivated, and hence increase the profitability of the company.
The Coca-Cola Management should set a good example for their employees by listening to the workers’ opinions and participating in teams to collaboratively achieve the goals of the organization.
Carson, C. M. 2005. A historical view of Douglas McGregor's Theory Y. Management Decision, 43(3), 450-460.
Caulton, J. R. 2012. The development and use of the theory of erg: A literature review. Emerging Leadership Journeys, 5(1), 2-8.
Coca Cola - Global. 2015. Financial Reports and Information: The Coca-Cola Company. Retrieved from http://www.coca-colacompany.com/investors/investors-info-reports-and-financial-information
Coca Cola Journey. 2015. Innovation at Coca-Cola: The Coca-Cola Company. Retrieved from http://www.coca-colacompany.com/innovation/
Coca-Cola GB. 2010. Employee Engagement: Training and Development: About Us -. Retrieved from http://www.coca-cola.co.uk/about-us/employment-our-people.html
Doyle, P. 1990. Building successful brands: the strategic options. Journal of consumer Marketing, 7(2), 5-20.
Friedman, B. A. 2009. Human resource management role implications for corporate reputation. Corporate Reputation Review, 12(3), 229-244.
McGregor, D. 1960. The human side of enterprise. New York, 21, 166.
Staff, J. 2015. U.S. Employee Benefits - The Coca-Cola Company: The Coca-Cola Company. Retrieved from http://www.coca-colacompany.com/careers/us-employee-benefits
Yusoff, W. F., Kian, T. S., & Idris, M. T. 2013. Herzberg’s two factors theory on work motivation: does its work for today’s environment? Global Journal of Commerce & Management Perspective, 2(5), 18-22. Retrieved from http://www.researchgate.net/profile/Shen_Kian_Tan/publication/262639924_Herzberg%27s_Two-Factor_Theory_on_Work_Motivation_Does_it_Works_for_Todays_Environment/links/0deec538562147ade9000000.pdf
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