Organizational Motivation Plan to Improve Employee Performance

Introduction

The development of an organizational motivation plan to improve performance within a company should take into account the different needs of different employees as well as the requirements of the employer. The Hawthorne studies by Mayo indicated that when employees were happy and motivated at work they would work harder and display more positive behavioral traits. If a firm is suffering from symptoms associated with poor motivation — such as poor performance levels — developing a plan to increase motivation may result in desired changes in behavior, especially if the plan is designed with the needs of both employer and employee in mind.

In the case of the firm manufacturing the WooWoo widgets, there are currently several problems. The main symptom is a high level of product defects, which is increasing costs and delaying deliveries. Other issues include high staff turnover, low product and job satisfaction, and poor quality work. A motivation plan may facilitate changes that improve the current situation.

The Motivation Plan

Models such as Maslow's hierarchy of needs and Herzberg's hygiene factors demonstrate that the way any employee is motivated will reflect many influences, including their current physiological and psychological situation. In a firm with 50 employees, it is highly likely that employees will be at different points in their motivational journey: some may be motivated by money, some by recognition, and others by challenge. This means that the motivational plan must accommodate the different needs simultaneously present in the workforce.

The motivational plan will draw upon motivational theory and will include a number of different, complementary strategies working concurrently. These will include consideration of tangible aspects of the employment relationship — such as the remuneration package — as well as intangible aspects, including psychological satisfaction and employees' relationships with management. Each element is considered individually below, along with the justification for its inclusion.

The first consideration of any employment relationship is the remuneration package on offer. Theorists such as Taylor, who adopted the model of "economic man," assumed that employees' primary motivation was money (Taylor, 2010). The more employee-centric approach, which adopts the model of "social man," argues that employees are motivated by more than money and also need social factors such as friendships and recognition. However, both Maslow and Herzberg argue that the most basic needs must be satisfied before other influences can motivate employees (Torrington et al., 2011; Herzberg, 1968). The most basic needs — such as food, shelter, and security — are met through the earning of wages, so consideration of the remuneration package is a natural starting point. If employees are unhappy, they are likely to leave for a better wage when the opportunity arises, increasing employee turnover. If employees feel their wages are unfair — for example, in comparison to similar firms or to others doing equivalent work — they are also likely to become less attentive and less productive. This is further supported by Adams's (1965) equity theory.

If wages are not competitive, this must be addressed; the costs of increasing wages may well be less than the ongoing costs of continual recruitment driven by high turnover. If the firm feels unable to raise base wages, a potential approach is to introduce a bonus scheme tied to departmental or company performance. Such a scheme may also be used even where pay is already fair. Bonuses would be paid for the attainment of specific goals that either reduce costs or improve productivity, making the scheme largely self-funding. It is important that the bonus scheme supplements existing wages — so it is perceived as an additional perk — and that it is designed in a manner employees regard as fair and achievable; otherwise it will not be motivational (Torrington et al., 2011). If employees feel they will benefit directly from improvements in company productivity or cost reductions, they are likely to work harder to earn those bonuses. This is particularly true for individuals at the lower-order needs of Maslow's hierarchy or within Herzberg's hygiene factors (Armstrong, 2012). While not all employees are economically motivated, a well-designed bonus scheme also demonstrates the employer's appreciation of employees' efforts. It may be interpreted as a form of recognition, contributing to the satisfaction of higher-order needs as well (Torrington et al., 2011). If bonuses are paid quarterly or every six months, this may also help reduce turnover as employees wait to collect what they have earned. When combined with the additional motivational measures described below, fewer employees are likely to leave.

Research by Mayo indicated that employees are motivated by the quality of the employment relationship; when they feel that they matter to the employer, this enhances the relationship and increases their motivation (Torrington et al., 2011). The strategy here would incorporate changes to management culture in order to demonstrate increased interest in employees and to facilitate higher levels of bilateral communication and employee input. Tactics will include the practice of management by walking around, whereby management maintains a higher level of interaction with employees, listens to their concerns, and invites their suggestions. Simple interactions — such as managers enquiring after an employee's well-being — will improve the employment relationship and help to create a higher level of social commitment (Armstrong, 2012). This approach should be applied throughout the organizational hierarchy, since line managers who experience it from senior management are more likely to emulate the behavior with their own subordinates, helping to create a more positive and cooperative culture.

Increasing social interaction in order to strengthen employees' commitment to the organization may also be beneficial, since motivation can be enhanced through peer relationships as well as through relationships with line and senior management. Organizing social events or family days not only demonstrates the employer's care for employees but also facilitates greater interaction between colleagues, which may enhance the workplace environment (Armstrong, 2012).

For employees working in a monotonous environment, such as a factory setting, boredom and lack of interaction can be a specific problem. For these employees — even those on minimum wages — cross-training and job enrichment can provide variety and a higher level of interaction (Armstrong, 2012).

A strategy that can be highly effective for understanding why employees are leaving is to conduct exit interviews. This will help the employer gather information about the causes of turnover and identify the factors that need to be addressed in order to reduce it.

Providing recognition has the potential to improve job satisfaction: employees who feel they do their job well and are appreciated are likely to feel that the employer acknowledges their contribution (Armstrong, 2012). Recognition can be delivered through a number of strategies, either directly or indirectly. Management by walking around can also serve as a vehicle for recognition — for example, congratulating employees on recent performance, whether that is a specific sale for a sales representative or a good idea from a shop floor worker (Torrington et al., 2011). The use of a suggestion scheme may also be beneficial, especially if employees who make suggestions receive appropriate recognition. Recognition can be further reinforced through an internal promotion policy, where the firm commits to recruiting from within wherever possible, supported by a training and development program. This also strengthens the employment relationship by demonstrating the employer's investment in employees' personal progression.

Strategies such as quality circles, or more informal meetings that invite employees to suggest organizational improvements, may also be beneficial (Mintzberg et al., 2011). In many instances, recognition of a job well done is motivational in its own right, whether or not it is tied to remuneration.

Summary of the Most Important Elements of the Plan

The final strand of the motivation plan is the implementation of a performance review and assessment program. This would be conducted either every six months or annually, with the aim of reviewing employee performance: identifying what has been done well, highlighting areas for improvement, and working collaboratively with employees to address those areas (Armstrong, 2012). When implemented constructively — for example, by aligning the review with the employee's own career goals — this can be highly motivational (Armstrong, 2012). An important element of any employment relationship is the employee's ability to understand clearly what is expected of them and whether they are meeting those expectations. A structured performance review provides a transparent mechanism for examining performance with the aim of reinforcing good work and improving areas of weakness.

A number of strategies together make up the full motivation plan. The two most important elements are those that adjust the employment relationship so that employees feel appreciated and believe their needs can be met by the employer. The first is the introduction of a bonus scheme directly linked to company performance: improved performance will be linked to increased earnings for employees. This connects directly to the concept of economic man, while also providing recognition and demonstrating fairness on the part of the employer. The second strategy relates to the concept of social man and provides for recognition by increasing communication between management and employees — using management by walking around, a suggestion scheme, and potentially quality circles or other informal meetings.

This second approach is likely to lead to higher levels of job satisfaction, and where there is satisfaction, employees are less likely to leave. However, it will only be effective if employees can see that the employer not only listens to what they say but actually uses that knowledge to make relevant improvements. While the first strategy — the bonus scheme — is clearly important, it is the second approach that is likely to have the widest impact, provide for ongoing improvements, help transform organizational culture, and increase the level of cooperation across the firm.