Improving Staff Performance

There are several theories that relate to motivation, and these are categorised as either “Content theories” or “Process theories”. Content Theories tend to focus on what motivates an individual, whereas process theories focus on how these things motivates an individual. Three Examples of content theories are:

· Maslow’s Hierarchy of Needs
· Herzberg’s Two Factor Theory
· Aldefer’s ERG Theory

Maslow’s Hierarchy of Needs is split up into 5 stages of motivational needs and is shown in a pyramid. On the bottom level of the pyramid are the Physiological needs which relate to the basic needs of an individual, such as food, water, shelter and clothing. On the second tier of the pyramid are the Safety needs. These relate to the security of the individual, such as job security, security of family, personal health. On the third tier of the pyramid are the Social needs. These needs relate to family, friends and a feeling of belonging for the individual. The fourth level of the hierarchy are the Self-esteem needs. These needs relate to the individual feeling a sense of achievement, recognition, status in society and confidence. The fifth and final level in Maslow’s hierarchy are the Self-actualisation needs. These needs relate to creativity, and the fulfilment of inner potential.

Herzberg’s two factor theory is split up into Hygiene factors and motivators. Hygiene factors are factors that have value to a person and ensure the person is not dissatisfied, such as salary, supervision and work conditions e.g. a clean environment. The motivators are the factors which actually motivate the individual, such as recognition, responsibility, advancement and growth.

Aldefer’s ERG (Existence-Relatedness-Growth) Theory is similar to Maslow’s Hierarchy of Needs, with a few tweaks. Existence refers to our physiological/basic and safety needs, like food and shelter. Relatedness refers to our social and external esteem needs, such as feeling welcome in the workplace. Growth refers to self-actualization and internal esteem needs such as personal fulfilment for example by getting promoted. Like Maslow’s model, Aldefer’s theory is in a hierarchy. Existence needs have propriety over relatedness needs, which have priority over growth needs.

Differences between Aldefer’s and Maslow’s model are that there are less levels in Aldefer’s hierarchy. Aldefer’s theory also shows that more than one need can motivate at the same time, and allows the order of needs to be different for different people. Aldefer also acknowledges that if a higher order need is unfulfilled, a person may move back to a lower level need that appears easier to satisfy. This is known as the frustration-regression principle. The ERG theory is more flexible and can therefore account for a wider range of observed behaviours. For example it can explain the “starving artist” who may place growth needs above relatedness needs.

(erg theory, http://www.netmba.com/mgmt/ob/motivation/erg/


Three examples of process theories are:

· Expectancy Theory
· Equity theory
· Goal Setting Theory

The expectancy theory of motivation was suggested by Victor Vroom. Unlike Maslow and Herzberg, Vroom does not concentrate on needs, but rather focuses on the outcomes. Whereas Maslow and Herzberg look at the relationship between internal needs and the resulting effort used to try and fulfil them, Vroom separates effort, performance, and outcomes.

Vroom believed that individual behaviour is influenced by personal and environmental factors. Individuals make choices/ and decisions about their behaviour and act rationally in the process, trying to maximise pleasure and minimise pain. He also believed that individuals have different needs and drives. What works for one individual may not work for another individual.
(expectancy theory, http://www.arrod.co.uk/archive/concept_vroom.php

Expectancy is the belief that increased effort will lead to increased output. This can be affected by factors such as time and resources available. Individuals have different expectations and levels of confidence about what they are capable of producing. This can be affected by factors such as time and resources available. Instrumentality is the belief that if an individual performs well then a valued outcome will be received. This involves trust, in that the individual believes he/she will receive a reward if he/she works hard. Valence is the importance that the individual places upon the expected outcome. For example, if an individual is mainly motivated by money, he/she might not value offers of additional time off and therefore may not work hard.
http://www.valuebasedmanagement.net/methods_vroom_expectancy_theory.html

John Stacey Adams, a workplace and behavioural psychologist, put forward his Equity Theory on job motivation in 1963. Equity theory focuses on fairness. People expect certain outcomes/rewards in exchange for contribution/effort. Equity theory involves comparisons with the market, organisation, social elements (such as fellow employees) and historical elements such as previous jobs. Motivation is affected by perception of how an individual feels, as they may well compare their own position with a fellow employee and then either get motivated or demotivated. If for example, an individual sees his/her friend working hard and this resulting in the gaining of rewards from the manager, this may then motivate the individual to work harder so that this individual also individual receives these rewards. However if the individual feels/perceives that he/she is working just as hard as a fellow employee, yet the manger is rewarding the fellow employee more than the individual, then individual may feel unfairly treated and therefore become demotivated.
(equity theory, http://www.businessballs.com/adamsequitytheory.htm

Dr Edwin Locke was the man who came up with the goal setting theory of motivation. He formed this theory when he reached the conclusion that clear goals and subsequent feedback could motivate employees greatly. Goal theory is about setting yourself goals and working to the best of your ability in order to be able to achieve them. If someone is set a goal then they are more likely to be able to achieve it than someone who hasn't because they know exactly what they are working towards. The goals that are set must follow SMART criteria. SMART stands for Specific, Measurable, Achievable, Relevant and Time Consuming. More difficult goals lead to higher performance than easier goals, provided that they are accepted by the individual that is working towards them. SMART goals lead to higher performance than general “do your best” goals.
Feedback is crucial, but also commitment from the individual is vital.

(goal setting theory, http://www.mindtools.com/pages/article/newHTE_87.htm

(goal setting theory, http://ezinearticles.com/?Five-Basics-of-the-Goal-Setting-Theory&id=2469149

The ways in which Marks and Spencer and the John Lewis Partnership motivate their staff:
Marks and Spencer (M&S) developed their benefit package to help attract, motivate and retain the best people in the retail industry. M&S offer the following to help keep their staff motivated:
· Subsidised healthcare.
· Performance related pay rewards.
· Competitive rates of pay (where basic pay is reviewed every year against other retailers in order to remain competitive).
· Employee discount (20%) and family will also receive a discount card. There is no limit to amount of goods that can be bought on the discount card.
· Pension.
· Bonuses.
· Discounts and offers on a wide range of holidays, health club memberships and leisure attractions.
http://corporate.marksandspencer.com/mscareers/rewards_benefits

The John Lewis Partnership (Waitrose and John Lewis) have a massive range of benefits. I know this having previously worked at Waitrose for 2 years and compared with Marks and Spencer, the John Lewis Partnership offers much much more in the way of rewards and benefits. In order to attract, motivate and retain employees, they offer the following benefits:

· Annual bonus. Every year, a proportion of the business’s profits is distributed to Partners as a percentage of their previous year’s earnings. In my first year the bonus was 20% and having only worked there for 2 months I earned nearly £200 pounds as I had done a lot of overtime and had earned nearly £1000 in that time. Imagine what my bonuses would have been if I had continued at that rate for the whole year, or if I was a full time member of staff! Last year however, the bonus was only 12%, meaning I earned considerably less in bonuses.
· Discounts. After three months’ service, all Partners are entitled to a 12% discount on most purchases from John Lewis and Waitrose. In John Lewis this discount rises to 25% after one years’ service.
· Paid holiday. Employees get 22 days of paid holiday a year, rising to 25 days after 3 years of service. There are further long-service increases for most Partners after ten or fifteen years. Management Partners, including graduate trainees, receive five weeks’ holiday from the outset.
· Pension scheme.
· Life assurance.
· Subsidised dining room in most branches.
· Health services.
· Special help in time of need. In urgent cases, partners are offered a grant or a loan.
· Extended leave. Partners who work for 25 years can enjoy a paid sabbatical of up to 6 months.
· Education subsidies. Generous financial support is given to Partners who wish to acquire a new leisure skill or continue their education, e.g. through the Open University or evening classes.
· Health services.
· Ticket subsidies. Ticket subsidies of 50% of the cost of a visit to the theatre, opera or concert hall are available up to a maximum of £60 per year. Partners may also take advantage of corporate membership to bodies such as English Heritage, the Science Museum and the Royal Society of Arts. When I went to Reading Festival 2008, I was able to hand in proof that I went, and I received £60 in cash back.
· Societies.
· Sports Clubs.
· Voluntary benefits and discounted deals. There is a range of benefits available to Partners such as discounted private healthcare and a car purchase scheme, along with a number of one-off deals with hotels, amusement parks etc.
· Holiday and Leisure facilities. The business owns a number of residential clubs which offer subsidised holiday accommodation for Partners with at least three years’ service. These include:
- Ambleside Park in the Lake District.
- Brownsea Castle in Poole Harbour, Dorset.
- The Bala Lake Hotel and Activity Base, Snowdonia National park.


Something which is not mentioned on the John Lewis website is that as Waitrose are the proud sponsors of Reading Football Club, partners are able to receive free or discounted tickets to go and see them (depending on how much the manager likes you)! Another fact which is not mentioned is that partners get paid according to how well they perform (performance related pay), and they receive Annual Reviewals of Pay (ARP’s) to see exactly how well they are performing, and what they can do to improve in order to get their pay grading up.
http://www.jlpjobs.com/experiencedHire/experiencedHire/benefits.htm

The motivation model which the John Lewis Partnership uses:

The John Lewis Partnership (2009) relates more to Maslow's theory because it offers its partners peace of mind about their job. It satisfies physiological needs, as partners receive a wage and uniform ensuring they have clothes and food. It satisfies safety needs, as partners feel secure in their job and there are many strict (and some which I personally see as silly) health and safety regulations in place to ensure that partners remain safe whilst working. Social needs are fulfilled as there are plenty of people to talk to and you are working as part of a team on your section (e.g. none of you can leave until all of the work has been completed). Also what I found pleasant about Waitrose, was that the majority of employees there were also part time and students like myself. It fulfils self-esteem needs, as the managers there give you a large degree of responsibility and recognise when you have done something well. Finally the self-actualization needs are partly fulfilled as when an employee works hard they will receive praise and there are always opportunities for moving up the ladder at Waitrose. There is plenty of training given frequently, which provides opportunities for growth. I was trained on how to provide perfect customer service for example. To completely fulfil these needs, it is up to the individual to work hard and feel this way if he/she reaches the top.

Conclusion:

To conclude, it is obvious that both Marks and Spencer and the John Lewis Partnership have similar methods of motivating their staff. This is probably because they are both retail supermarkets. John Lewis do however offer considerably more than M&S. They clearly both follow motivational theories and constantly have a large employee base showing that their methods of motivating staff are certainly effective.