HR Motivation Many HR performance issues result underlying motivational problems external work environment finance. Describing a motivational problem hinders goal attainment. Briefly describe problem (,) Use theory motivation explain problem

HR performance issues:

Motivational problems in the financial services industry

"Often an employee knows how to perform correctly, the process is good, and all resources are available, but for one reason or another, chooses not to do so, which normally means it is a motivational issue" (Clark 2010). In the past, during the era of scientific management, motivational issues were dealt with by rigorously governing employee movement in a very strict and controlled fashion. However, this can stifle employee creativity and enthusiasm for the task. The obvious motivator for most people to work is money. For example, in the financial services industry, money is a major motivator in terms of how salary and compensation is structured. The expectation of a large Christmas bonus is designed to encourage workers to perform at a high level throughout the year. At some firms, 60% of the overall salary of financial workers is derived solely from bonuses (Pauly 2009). But this externally-focused method of motivation has come under a great deal of criticism. This paper will use the theory of external vs. internal motivation in financial services to examine if it is possible to use different motivational factors to create more financial stability in the world economy and a less short-term-focused attitude, by using examples of intrinsic motivators in other industries.

Short-term thinking on the part of employees who are anxious to take high-payoff risks because of the extreme importance invested in bonuses, have been blamed for at least some of the problems that caused the credit crisis of 2008. And in terms of the workplace culture of respect, the amount of the bonus takes on additional importance in the eyes of workers, in a manner that makes it even more significant than any real value it might possess. With this in mind, Wall Street and the financial service industry in general has begun to curtail the...

"The time-honored bonus culture featuring large cash payments needed to end" (Pauly 2009). For example, Goldman Sachs rewarded its 30 top executives with stock instead of cash in 2009, to encourage them to focus on the long-term health of the firm, rather than turning a quick profit to cash in on momentary spikes in firm value. The stock cannot be sold for five years, plus "they might lose the shares if Goldman determines later that the executives earned them by taking heedless risks" (Pauly 2009).
Relying upon salaries alone to motivate workers has another problem: except on Wall Street, there is usually a limit to how much money a company can spend. External sources of motivation only go so far; eventually a company must rely more upon internal sources of motivation. With this in mind, some employers in other industries have offered different types of 'carrots' to encourage worker performance, such as greater flexibility in terms of the hours employee work or greater autonomy in choosing projects.

For example, at Best Buy's Results Only Work Environment, workers are judged solely according to the results they are able to produce, in terms of their work-related performance. The do not have to be at company headquarters for a standard 9-5 shift. Best Buy used to grade workers based upon 'facetime,' or how much time workers spent at their desk. Allowing workers to telecommute, to come in late and leave early, or to schedule break time around their children's softball games has resulted in a more productive workplace. Workers are happier and more motivated to remain at Best Buy, because it allows them to engage in a more effective work-life balance. "ROWE redirected the focus of employees and managers towards measurable results and away from a set work schedule and location. Employees could routinely change when and where they worked without seeking permission from a manager or even notifying one" (Hollon 2011). ROWE reduced turnover by 45% at the company. Workers were happier, and more committed to staying at an organization that…