The essay brings about the discussion on the topic, human behaviour in the organisations, stating the meaning and significance of motivational approaches and leadership theories in an organisation. The essay describes these in respect to the motivational approach and theories applied by ‘Howard Schultz’ who was a former CEO in Starbucks. Every organisation in an approach to become successful and attain long-term competitive advantage requires effective leaders or managers. Managers or leaders in organisations play a vital role in determining long-term success, by coordinating the efforts of individuals towards organisational goals and objectives. Therefore, the essay in the later part includes the comparison and differences in the leadership theories by Maslow, Herzberg, and Adams. Motivation in employees is necessary for every organisation, as the organisation’s success and survival depends upon efficient human resource in an organisation. Availability of efficient human resource or employees is a valuable resource along-with other physical and financial resources in an organisational context. Therefore, every organisation must improve their practices and ensure implementation of effective leadership theories in their practices. Hence, the essay mentions some recommendations for the contemporary organisations to plan their strategies to attain positive organisational outcomes (Zipf, 2016).
Howard Schultz Employee motivation
Motivation refers to the forces, which initiates, directs, and encourage people or individuals to integrate their efforts towards achieving organisational goals and objectives. Motivation amongst employees is one of the major factors, which influence the efficiency of an organisation. Therefore, in the essay theory of motivation in employees in linked and described in context to the company Starbucks. The former CEO, Howard Schultz, states motivation theory and the related concepts in the company. In addition, Schultz leadership approach towards Starbucks, as transformational leadership, through which he demonstrated his idea of dreaming big and bigger especially to the workers in the company. As a leader, he considered the needs and problems of the staff, and enhanced their spirit towards the team and organisational goals (Shamir and Eilam- hamir, 2018)
Starbucks, one most famous chain of the retail coffee shops around the world, deals in selling some coffee beans or special type of drinks. The popularity of the company is not because of the quality of coffee, but also because of the effective service from the staff. Starbucks a well-known and established brand is one of the great examples in terms of motivating employees. Howard Schultz stated that the tip of success in Starbucks, is not coffee but the employees, as the company made efforts to benefit their employees in a number of different ways. According to the former CEO of the company, Howard Schultz was of a different view ensuring that the company’s success should not put only in front of customers, but with their employees as well (Starbucks, 2018).
Schultz conveyed his thoughts to success as idea of making people a priority who work for Starbucks. He stated that doing the right thing for the people in employees and the community will serve the purpose in ensuring the success of company (Shahzadi et al., 2014). Schultz believed that the value delivered by Starbucks is because of the employees, and to continue this in future the company must aim at providing education and training to their employees to motivate employees for higher commitment towards organisation. Thus, there were four ideas given by the CEO of Starbucks, such as investing in the education of employee that benefits everyone in the organisation, i.e. employees and the company. The other key ideas includes, that the status quo is not good enough for the company aiming to achieve long-term success. It is necessary to involve innovation in the practices, which will drive enthusiasm in employees and will lead to the idea of enhancing their courage and motivation to bring organisational success (Shields et al., 2015).
Schultz believed in developing a healthy relationship with the people working in the organisation, and as a transformational leader, he inspired and encouraged the team members to develop as individuals and contribute to the organisational objectives. Howard Schultz ensured that there is trust, respect, honesty, and commitment in the organisation he is leading. Schultz thus ensures motivation in a number of effective ways, which emphasizes hiring the right people, being consistent in delivering effective products and services to the people. He believed in taking consideration of the various needs of the employees as they belong to different cultural backgrounds. The mission and vision statements discussed about building an organisation that treats people with respect and dignity. Thus, Schultz’s motivation theory or leadership approaches stated in a positive manner about the conduct of the company, Starbucks that motivated employees to show higher commitment towards goals to be achieved (Gallo, 2016).
Motivation plays a crucial role in organisations in terms of increasing productivity and effectiveness, which depends upon employees and their motivation to work. Motivational theories and practices are important considered to brings effectiveness and achieve organisational outcomes. There are three motivational theories given by Abraham Maslow, Adams, and Herzberg’s Two-factor theory (Stead and Stead, 2016).
Maslow states that employees in an organisation are motivated through a hierarchy of needs. These are five essential needs of every individual employee in an organisation, which includes physiological needs, safety needs, social needs, esteem needs and the self-actualization needs. He describes that a higher-level need is satisfied when other lower level need is satisfied. Deficiency needs arise due to deprivation, and motivate the person when they remain unfulfilled. In addition, Maslow stated that the motivation would become stronger, the longer these needs are unmet. The most basic need is the psychological or physiological needs of the person, which includes the need for food, shelter drink, clothing, and sleep. These needs are utmost important in the life of every individual and tend to disturb the normal functioning of the human body. Moving on to the next, there is a safety need, which ensures about the safety, security and protection of the individual from elements, and other things, i.e. freedom from fear. After safety needs are fulfilled, social or the need for belongingness becomes essential to the person (Healy, 2016).
Social needs include interpersonal relationships with friends, peers, groups, and family motivates an individual positively. Therefore, examples include friendship, intimacy, and trust, acceptance among peers and so on. Satisfying an individual’s social needs, there comes esteem needs i.e. self-esteem needs which refers to the need for acquiring respect and reputation, and the need to achieve dignity, achievement and independence. The last level needs in the Maslow’s hierarchy of need motivation includes self-actualization needs which states about acquiring the position where an individual wanted to be. This includes discovering potential and personal growth throughout life (Leavy, 2016).
The other theories of motivation, i.e. Herzberg’s two factor theory which is also known as motivation hygiene theory which states that there are certain factors which leads to motivation in employees and some which cause dissatisfaction amongst employees in an organisation. It has stated that there is satisfaction, and opposite of satisfaction is not dissatisfaction, rather it is a situation of no satisfaction. The theory states that if salary, working environment, safety, and security as hygiene factors if unsuitable at workplace can make employees unhappy, and dissatisfied with their job. Motivating factors on the other hand, which increase satisfaction and motivation in employees is dependent on the employees need for personal growth. For an employee, if these elements are favourable, then they can motivate and help an employee to achieve performance above average levels. For an instance, an employee with responsibility and achievement can cause satisfaction and motivate him for better performance (Sanjeev and Surya, 2016).
|
Factors of Job-satisfaction (Motivating factors) |
Factors of job-dissatisfaction (Hygiene factors) |
|
Achievement |
Supervision |
|
Recognition |
Company policy and administration |
|
Responsibility |
Salary |
|
Work itself |
Interpersonal relationship |
|
Advancement |
Working conditions |
The above table explains the five factors of motivation, which includes both motivating factors and hygiene factors, leading to satisfaction and dissatisfaction of employees in an organisational context. Therefore comparing both the theories of Maslow and Herzberg motivation stated that salary in case of Herzberg not treated as motivator just like the other primary motivators (achievement and recognition). He stated that one can always get higher and higher salary, then it can motivate the person, cannot be considered as incentive. This is not applicable according to the perspective of Maslow, as he described salary or money as motivator, because one need money or salary in order to buy food to eat, to have shelter, to shop , i.e. it acts as one of the psychological needs of the person (Stoyanov, 2017).
Adam’s equity theory is the last theory described in this essay, the equity theory of motivation states that people in an organisation can be motivated if they are given equal treatment and receive fair for their efforts by their supervisors. The theory by Adams (1965) is based on social exchange theory, in that people compare their contribution to work, cost of their actions, and put inputs into the job and expect some positive outputs/outcomes. These inputs include education, experience, and efforts, to get some output such as salary, reward, promotion, verbal recognition, and challenges in equal amount. Therefore, equity plays an important role in affecting the productivity of an employee, as greater the inequity, the greater the distress amongst individuals. The major difference or limitation in this theory is that equity theory does not consider the variation in needs, interest, and values of people in organisation. Equity for one may not be for other; therefore ensuring equity to all individuals is essential to motivation. In accordance to theory, equity structure in the workplace is based on the ratio of inputs (employee contributions) to outcomes (salary and other rewards) (Miner, 2015).
Thus, comparing and contrasting three theories of motivation, there are some of the differences found in motivation theories, stated through the below given table:
|
Maslow’s motivation theory |
Herzberg’s Two-factor theory |
|
There is a hierarchical arrangement of needs. According to the Maslow’s model, any need can be a motivator for an individual, if it remains unsatisfied. Maslow’s model of need motivation considered descriptive in nature. Maslow’ model emphasizes on taking a general view of the motivational issues of all the workers in the organisation. Existence of some factors in an organisation leads to positive organisational outcomes, whereas their absence brings negative results. |
There is no such hierarchical arrangement needs in two-factor theory. In case of two-factor theory, only high-order needs are considered as motivators. Whereas, Herzberg model of motivation is prescriptive in nature. In case of Herzberg’s motivation theory, it is a narrow approach and overviews the work-oriented motivational problems of workers. In case of Herzberg’s motivation theory, positive and negative are both different and affect organisational performance in a different manner (Upadhaya, Muni, and Blount, 2014). |
Implementation of motivation theories in STARBUCKS
Starbucks serves coffee and most of the drinks sales are dependent on the effective services of their staff. It is necessary to maintain the staff members in the organisation happy and motivated, to help them maintain their morale in showing their commitment towards their customers. Therefore, Starbucks supports their staff with good working environment and other rewards, such as bean stock exchange, free products, competitive salary, voluntary benefits, and several others. The description states about the implementation of theories of motivation by Maslow, Herzberg, and Adams (Richter, Raban and Rafaeli, 2015).
Implementation of the motivation theory of ‘Maslow’ in Starbucks, it is found that the company established itself on the grounds of trust, respect, and interpersonal relationship with their employees. Thus, fulfils the different levels of need of employees such as physiological needs of the employees in Starbucks is catered by providing them food, regular pay, locker for their personal belongings, and good atmosphere, as these are the basic fundamental needs of staff. In addition, Starbucks ensures the fulfilment of the safety needs of their employees, as it is important for their staff to feel secure at the workplace. Therefore, Starbucks provides them pension scheme and ensures their safety and health at the workplace (Gopal and Chowdhury, 2014).
(Source: McLeod, 2018)
Starbucks made their employees to work in a team with coordinated efforts, and provided them a competitive pay, and good working conditions to both full, and part-time workers. In Starbucks, employees from higher to lower levels give respect to each other. Self-esteem needs are classified as higher-level needs of employees in the company, and they seek feedback from the staff, about the kind of improvement they expect from the management team of Starbucks. In addition, the company aims to provide self-fulfilment opportunities to their staff, by providing them training, education, workshops, learning modules, odd interview, and college coffee for the staff who wants to move forward towards higher roles. Thus, implementation of the motivation theory by Maslow is well effective in Starbucks giving benefits to employees and leading to positive organisational outcomes. In case of Herzberg’s motivation theory,
According to Herzberg, there are two factors, i.e. hygiene and motivation, which motivates employees in the company largely. In Starbucks, there are series of training modules for training employees in the organisation. They mentor and coach employees to improve their skills required for the job. In addition, the organisational culture of the Starbucks emphasizes on providing value to their employees along-with customers. Every employee in the Starbucks receives equal respect and care by their managers, supervisors and other employees in the organisation. Each employee is important to the organisation, therefore Starbucks invite suggestions from staff for improving their policies and participating in effective decision-making of the company (Bussin and Christos, 2018).
(Source: Human Business, 2017)
Hygiene needs such as policy, relationships with subordinates, and superiors, work conditions, and others are some of the factors determine the satisfaction and dissatisfaction in employees. Thus, Starbucks ensure to maintain healthy relationships with their employees and other superiors. Leaders in their retail shops give their low-level workers equal treatment as their partners. Moreover, the company focuses to build effective teamwork in the organisation by uniting the efforts and needs of individuals with organisational goals. For ensuring this, managers at Starbucks ensures for maintain three employees in each time, which helps in maintaining the teamwork and cooperation among them (Sanjeev and Surya, 2016).
The equity theory of motivation developed by Adam in 1963 emphasizes on the concept that each employee will receive a balance between inputs of their work or contribution and outputs they receive as outcomes from their employers. In the case of Starbucks like other organisations, expect their hard work to be treated and rewarded by higher level of staff and managers (Biraghi, Gambetti and Quigley, 2017). To maintain equity in the organisation, Starbucks initiates effective communication between managers and employees in company. Therefore, Starbucks ensures the implementation of the three theories of motivation in their operations, and organisational practices to attain their objectives (Ryan, 2016).
Starbucks, as a well-known brand manages, and effectively attains their organisational goals and objectives, through motivating their employees. Although they motivate staff, but there are certain factors where Starbucks lacks to become more efficient, thus a number of changes made in the organisation to make the place of Barista more appealing or effective to the employees working in Starbucks. One of the major loopholes where Starbucks found to be insufficient is in the terms of the amount or compensation by the company to the employees at Barista level. The pay for this particular position at present is currently around $8, plus tips. Other issues found in Starbucks relates to unreliability in the employees’ pay and checks, and the high pressure on the barista workers, and strictness in uniform, and dress code of workers, and Safety and health hazards issues. Therefore, Starbucks must aim at improving these loopholes and ensuring health and effective performance of their employees. There should be some modifications in strategies to make their plans more effective to provide employees a better pay, and retain them for a longer period.
To conclude the above discussion, it has been analysed that the leadership and motivation in employees play a vital role influencing the effectiveness of the organisation in a positive manner. Howard Schultz was a transformational leader in his approach towards the organisation, Starbucks. He stated that one should dream big and bigger for himself, others and family irrespective of the present situation. The essay in the above part described three motivational theories, given by Maslow, Herzberg, and Adams, which stated about the various needs of the employees in the organisation, and how they must be catered in order to motivate them. Employee motivation remains to be a major factor in every organisation, to attain positive outcomes, and long-term growth in the future. Hence, leaders or managers in organisations must ensure their employees are well satisfied with the work and motivated to show higher commitment towards organisation.
References:
Biraghi, S., Gambetti, R.C. and Quigley, S. (2017) Leadership and Communication. In Leadership Today (pp. 229-247). Berlin: Springer.
Bussin, M. and Christos, D. (2018) Employee recognition and employee inclusion… one and the same? HR Future, 2018(Aug 2018), pp. 40-41.
Gallo, C. (2016) Inspiring storytellers transform employees into crusaders. Leader-to-Leader, 2016(82), pp. 35-39.
Gopal, R., and Chowdhury, R.G., (2014) Leadership styles, and employee motivation: An empirical investigation in a leading oil company in India. International journal of research in business management, 2(5), pp.1-10.
Healy, K. (2016) A Theory of Human Motivation by Abraham H. Maslow (1942)–reflection. The British Journal of Psychiatry, 208(4), pp. 313-313.
Human business (2017) Herzberg’s Two factor theory of motivation. [online] Available from: https://www.humanbusiness.eu/herzberg-two-factor-theory-of-motivation/ [Accessed 30/09/18].
Leavy, B. (2016) Effective leadership today–character not just competence. Strategy & Leadership, 44(1), pp. 20-29.
McLeod, S. (2018) Maslow’s Hierarchy of needs. [online] Available from: https://www.simplypsychology.org/maslow.html#needs5 [Accessed 30/09/18].
Miner, J.B. (2015) Equity Theory. In Organizational Behaviour 1(pp. 150-174). United Kingdom: Routledge.
Richter, G., Raban, D.R., and Rafaeli, S. (2015) Studying gamification: the effect of rewards and incentives on motivation. In Gamification in education and business (pp. 21-46). Berlin: Springer.
Ryan, J.C. (2016) Old knowledge for new impacts: Equity theory and workforce nationalization. Journal of Business Research, 69(5), pp. 1587-1592.
Sanjeev, M.A., and Surya, A.V. (2016) Two-factor theory of motivation and satisfaction: an empirical verification. Annals of Data Science, 3(2), pp. 155-173.
Shahzadi, I., Javed, A., Pirzada, S.S., Nasreen, S. and Khanam, F. (2014) Impact of employee motivation on employee performance. European Journal of Business and Management, 6(23), pp. 159-166.
Shamir, B. and Eilam-Shamir, G. (2018) “What’s your story?” A life-stories approach to authentic leadership development. In Leadership Now: Reflections on the Legacy of Boas Shamir (pp. 51-76). United Kingdom: Emerald Publishing Limited.
Shields, J., Brown, M., Kaine, S., Dolle-Samuel, C., North-Samardzic, A., McLean, P., Johns, R., O’Leary, P., Robinson, J., and Plimmer, G. (2015) Managing employee performance & reward: Concepts, practices, strategies. United Kingdom: Cambridge University Press.
Starbucks (2018) Starbucks-The Best Coffee and Espresso Drinks. [online] Available from: https://www.starbucks.com/ [Accessed 30/09/18].
Stead, J.G. and Stead, W.E. (2016) Spiritual capabilities: keys to successful sustainable strategic management. In Spirituality and Sustainability (pp. 89-103). Berlin: Springer.
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Upadhaya, B., Munir, R. and Blount, Y. (2014) Association between performance measurement systems and organisational effectiveness. International Journal of Operations & Production Management, 34(7), pp. 853-875.
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