Improving staff performance

Difference between content and process theories...

• Content theories- This explains what motivates individuals at work, emphasising on the nature of needs. This identifies the goals they want to follow in order to satisfy these needs. The main theories in this category are Maslow’s Hierarchy of Needs, Hertzberg’s two-factor theory, Alderfer’s ERG theory and McClelland’s achievement motivation theory. (Mullins, 2007)

• Process theories- This explains what goals the individual selects to have motivated them. Attempts to justify how the actions necessary influence the change in behaviour, which make up motivation. There are three main theories which covers the process theory and they are:

1. Expectancy theory- Vroom's Expectancy Theory is one of the most popular motivational theories. This theory suggests that the amount of effort that is put in will lead to the achievement of the performance. Vroom suggests that an individual is motivated by the outcome (Reward); the goals are also a vital part of the equation, as you want the reward to be your personal goal. This great motivational theory can be used in just about any circumstances, whether it is a group or a single person, huge company or small workplace. This model is influenced by certain personal and environmental factors. There are three variables that account for this. Expectancy being the first is about having the ability and the skills to get the job done. The more skilful the worker is the greater the performance. This leads to first-level outcomes. The second variable is the instrumentality which means to what extent you achieve the first level outcomes will lead to second-level outcomes. This says that if you perform well the higher the chance you are into getting to the outcome. This can be affected by having a clear knowledge between the performance stage and outcome stage. The final variable is Valence. The individual can then change their level of effort and choose different behaviour according to the value they place on the desired outcome. (Arrod, 2009)

2. Equity theory- This theory was established by John Stacey Adams. Equity Theory of motivation demonstrates the relationship between people’s feelings and how fairly an employee notices he is treated and how hard he is motivated to work. Adams called personal efforts and rewards as 'inputs' and 'outputs'. Inputs being the work employees put in and the skills they use. Outputs are everything employees get in return. Adams key idea behind the Equity Theory is that discovering workers need a balance of what they put in to their jobs and what they get from them will ensure positive impact. According to the Equity Theory, the most highly motivated employees are the ones who perceive their rewards are equal to their contributions. If he feels that he is working and being rewarded at about the same rate as his peers, then he will judge that he is being treated fairly. (Buzzle, 2009)

3. Goal theory- The goal theory was based mainly on the work of Dr Edwin Locke. The basic idea of this theory is that people’s goals and objectives play a big role in selecting behaviour. Locke suggests that the individual looks at the importance of the value and this adds emotion and desire. People attempt to achieve their goals so suit their desires.The level of the goal difficulty can influence the actions and work behaviour made which will consequently result in feedback and a greater level of motivation. (Mullins, 2007). Goal setting theory is generally accepted as among the most convincing and useful motivation theories in industrial and organizational psychology, human resource management, and organizational behaviour (Mindtools, 2009)

Company Examples:
Tesco plc; How do Tesco motivate their employees..?

"Tesco is a great place to work - whether you're planning the layouts of our aisles, sourcing products in Thailand or improving our supply chain in Turkey."
Tesco is one of the UK’s leading super markets and has expanded overseas across 12 different countries. The first thing you'll notice is that they have always said to ‘always put our customers first’ - which means treating the staff right, too. “We have become a market leader by doing the little things that really matter for our customers and staff.” Tesco believe in treating all staff members with respect and giving everyone equal opportunities to get on with the work.
Rewards and benefits when working for Tesco:

Being a staff member for Tesco is not all about just getting good pay but offering great opportunities such as a whole package of other ways to help you make more of your money, secure your future and look after your health. (Tesco-careers, 2009)
• Tesco give free shares to everyone who's worked with the company for one year at the end of the financial year. These Tesco shares are held in trust for 5 years, and after that you can take them, tax-free.
• Proportion of the profit is shared amongst the staff, based on salaries.
• As you earn savings can be made. Staff members who've been working a year get the option to save up to £50 every 4 weeks for either 3 or 5 years and receive a tax-free bonus at the end.
• Support flexible working, offering part-time roles and encouraging job-sharing opportunities and shift-swapping where possible.
• The staff loyalty card that gives you 10% discount and Clubcard points on most Tesco products.
• Staff cafe and restaurants.
• Training they need to do their job and to develop their careers at Tesco. Development programmes specifically designed to help them gain the experience and skills they need to move on to the next Tesco challenge. It aims to develop a combination of leadership, general and operating skills through 'on and off' the job experiences and a clear process that is designed to provide transparent feedback and coaching.
• As well as pension provision you have access to a life assurance scheme that will provide financial protection for your family.
• There are discounts on theme parks, holidays and gym membership that are available all year round for Tesco staff members.
• Great discounts with top healthcare companies.

British Airways; How do BA motivate their employees?

British Airways is all about bringing people together, and taking them wherever they want to go. This applies equally to their employees and the 36 million people who travel with BA every year. It's about offering greater diversity, more development, better training and more valuable experience. BA’s challenge is to invest in their employees and their futures. BA can only achieve their business goals when their employees realise their full potential. (British Airways Jobs, 2009)
Rewards and benefits for BA staff
British Airways offers highly attractive rewards packages such as:
• All training and development is built on a firm commitment to releasing and maximising the full potential of every British Airways employee.
• Opportunities for reduced air fare travel and travel discounts.
• Generous holiday entitlement.
• Contributory pension and private healthcare schemes.
• Profit share scheme.
• Bonuses
• Employee share scheme.
• Superb sports and social amenities & opportunity to join BA Clubs.
• Subsidised staff restaurants.

Tesco’s Motivation Model...

The main reason why motivation theories are useful is that they can be used to identify the main factors that help motivate an individual. This will mean that the business will perform better. Tesco has given emphasis on content theory particularly that of Hertzberg hierarchy of needs. The way Tesco motivates its employees it can be said that they satisfy the majority of the hierarchy.

• Physiological needs- By offering a competitive salary, pleasant working conditions, staff cafe, flexible working.
• Safety needs- pension provision ,life assurance scheme,
• Social needs- equal opportunities, friendly environment, discounts on theme parks, holidays and gym membership
• Ego/esteem needs- Tesco shares are held in trust for 5 years, option to save up to £50 every 4 weeks for either 3 or 5 years and receive a tax-free bonus
• Self- actualisation needs- Training they need to do their job and to develop their careers at Tesco
A process theory which Tesco appear to use is the Vroom’s expectancy theory. The amount of effort that is put it by working efficiently will lead to a high performance and achieve many staff benefits and rewards.

Conclusion:

In conclusion, both Tesco and BA have similar ways of motivating employees, either by content theory or process theory. Then again individuals can be classified into the separate categories identified in the various theories be a few individuals whose motivational factors will be hard to identify. As these two are large and well known organisations, clearly their methods of motivating employees is very successful.

References:

Management and organisational behaviour, Laurie J. Mullins, Eighth edition, 2007 Chapter 7, p.256

Arrod (2009) Expectancy theory of motivation [online]. Available from: http://www.arrod.co.uk/archive/concept_vroom.php [Assessed 10 October 2009].

Buzzle (2009) Equity Theory [online]. Available from: http://www.buzzle.com/editorials/6-24-2006-100325.asp [Assessed 10 October 2009]

Mindtools (2009) Goal setting theory [online] Available from: http://www.mindtools.com/pages/article/newHTE_87.htm [Assessed 10 October 2009]

Tesco-careers (2009) Rewards and benefits [online]. Available from: http://www.tesco-careers.com/home/working/rewards-and-benefits

British Airways jobs (2009) Careers [online]. Available from: http://www.britishairwaysjobs.com/baweb1/tpl_ba01.asp?newms=info3 [Assessed 13 October 2009]