This paper examines employee motivation strategies at Target Retail Stores, focusing on the challenge of efficiently preparing merchandise for the sales floor before store opening. It begins by analyzing Target's packaging reduction program, which saved millions in costs and improved employee workflow. The paper then identifies two motivational theories — Maslow's hierarchy of needs and content (arousal) theory — that are not currently in practice at Target, and applies them to the retail management context. It discusses how reward-based programs, self-esteem reinforcement, and stimulating team environments could enhance employee motivation and organizational performance.
In recent years, the topic of workplace and employee motivation has emerged as a significant concern for both employers and management personnel. An analysis of motivational strategies at a Target Retail Store provides an example of how such strategies affect a company's sales, profits, workplace morale, and future. One of the most important operational issues at a Target Retail Store is the timely placement and display of merchandise on the sales floor before the store opens to the public at 8:00 A.M. This must be accomplished with limited resources and staff. As a result, management must be able to appropriately and effectively motivate all staff employees, improve performance, and overcome employee resistance to increasing productivity.
This paper examines the organizational efforts of Target Retail Stores in this area and identifies and analyzes two motivational theories not currently in practice at Target. It also applies those motivational theories to management practice, discusses their potential impact, and offers possible solutions that could have been implemented before employee motivation became an issue.
In order to eliminate the time normally required to neatly present merchandise on the sales floor, Target implemented a program to effectively eliminate unnecessary packaging (EDA's Waste Reduction Update, 2005). The results included the elimination of approximately 1.5 million pounds of waste, an estimated $4.5 million in savings through packaging reduction, and the implementation of a more efficient method of merchandise distribution (EDA's Waste Reduction Update, 2005). This led to an easier and more efficient merchandise placement process in preparation for store opening each morning.
Before the program's implementation, Target's management team observed both the amount of waste generated by packaging and the time workers spent opening and unwrapping shipments (EDA's Waste Reduction Update, 2005). The team found that a significant amount of labor was expended tearing apart packaging from merchandise. For example, one typical clothing shipment contained 20 individually wrapped sweaters that had to be unwrapped before they could be displayed in the store. The team ultimately determined that an entire shipment of 20 sweaters could be safely shipped in just one outer wrapper (EDA's Waste Reduction Update, 2005).
The total reduction in packaging resulted in an estimated $3 million in savings to vendors for reduced packaging materials used in shipments (EDA's Waste Reduction Update, 2005). To verify that merchandise would arrive in good condition, the Target team asked its vendors to test the packaging reduction concept. After several shipments of clothing arrived unwrinkled and presentable, the team decided to change Target's packaging specifications accordingly (EDA's Waste Reduction Update, 2005). Target's current goal is to ship floor-ready apparel and minimize excess packaging; "floor-ready" means that merchandise requires minimal preparation before being displayed on the sales floor (EDA's Waste Reduction Update, 2005). As a result of this easier and more effective process, employee motivation in this area has been boosted. Although this method has increased efficiency, additional strategies can still be implemented to further increase employee motivation and productivity.
One relevant framework is motivation theory, which seeks to explain all kinds of motivated behavior across different situations, including behavior within organizations. Compensation administration is one application of motivation theory (Mitchell, 1992). Since the majority of behavior is environmentally influenced, individuals are greatly shaped by their surroundings. Organizations can therefore influence people's behavior by modifying environments and rewards. The best-known theory of motivation in this area is Maslow's hierarchy of needs, which centers on physiological and psychological needs (Maslow, 1943). According to this theory, all people have a need or desire for a stable, formally grounded, high evaluation of themselves — encompassing self-respect, self-esteem, and respect from others (Maslow, 1943). By "firmly based" self-esteem, Maslow meant esteem grounded in real capacity, achievement, and the genuine respect of others.
However, motivation is not the sole determinant of behavior. Ability and knowledge of what one is expected to do combine with motivation in shaping behavior within organizations. Additionally, an organization's tasks vary in their requirements, meaning that motivation can make little or much difference in performance depending on the nature of the task.
Another motivational theory applicable to the Target Retail Store scenario is known as "content theory." Content, or arousal, theories center on needs or drives. Several physiological and social needs have been identified and studied. A need for competence in mastering one's environment is reportedly aroused when individuals face new, challenging situations, and it dissipates once mastery is achieved (McClelland, 1976).
"Arousal and power needs in workplace behavior"
"Practical recommendations using both theories"
Research indicates that employee motivation is directly related to the success of any organization. In order to be effective, Target's management would greatly benefit from implementing the programs and theories discussed in this paper. Doing so would further enhance the company's continued success in the retail industry.
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