HR Motivation Many HR Performance Issues Result

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 use of bonuses to motivate employees, to encourage more long-term thinking and to reduce its investment in high-risk ventures. "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 showed concern for their welfare and was genuinely interested in their performance. Workers were no longer doing busywork just for the sake of looking busy, which improved company productivity.

Another company that has used intrinsic rather than extrinsic motivators is Google. Google allows its engineers 20% time to work on company-related personal projects. "It sounds obvious, but people work better when they're involved in something they're passionate about, and many cool technologies have their origins in 20% time, including Gmail, Google News and even the Google shuttle buses that bring people to work at the company's headquarters in Mountain View, Calif" (Mediratta 2007). Workers are paid in 'pleasure' -- the pleasure of doing something that interests them on a personal level. Google motivates workers through allowing them to work on something that arouses their passion, rather than simply offering salary increases if a project is profitable. For sweeping changes, Google has employees form a 'grouplets,' or a "bunch of people who are committed to an idea and willing to work to convince the rest of the company to adopt it" (Mediratta 2007). Committed and motivated workers can band together to create change and, in fact, are encouraged to do so by management.

It should be noted that one of the reasons that Google and Best Buy are so successful is because of their ability to select employees that are a good match for their corporate cultures. Both technology firms are based in the need to engage in innovative thinking, and people who are strongly intrinsically motivated by the desire to produce high-quality work for its own sake are more likely to thrive in these types of corporate environments, versus employees who view the time they spend at work as simply hours to while away in the pursuit of a paycheck.