Importance of Employee Motivation and Different Motivation Theories Used by Companies

This essay discusses the importance of employee motivation and various motivation theories used by companies such as incentive theory, Herzberg motivation theory, and Adam Equity theory of motivation. It analyzes how companies like Tesco, Marks and Spencer, and Apple use these theories to motivate their employees and improve their performance. The essay concludes with recommendations for companies to make their employees motivated and satisfied.

Individual Essay

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Description of relevant theories...................................................................................................3
Analysis.......................................................................................................................................4
CONCLUSION................................................................................................................................6
Recommendations........................................................................................................................6
REFERENCES................................................................................................................................7
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INTRODUCTION
In this modern era, if the company do not provide effective ways to make employee
motivated in order to understand about the company’s norms then it affects the business
performance, as a result, employees are not able to contribute their best to the business. Further,
the current study also shed a light upon the importance of employee motivation and how
different company apply the same in order to improve their performance. With the help of
various models, the study will reflect how the organizations uses different motivation strategies
to improve the performance of employees.
Description of relevant theories
Motivation theory is the study of understanding what are the key aspects that help a person
to work in order to meet the goal and outcome (Rad and et.al., 2021). There are different theories
and models that are used by the organization in order to make employees more productive that
contribute to company’s performance. There are different theories which are as mentioned
below:
Incentive theory:
This theory suggest that people need different aspects that helps to make them feel motivated
towards a firm which might include reinforcement, recognition, incentives and rewards. The
theory also examine that employees might behave differently in a same situation which is depend
upon the incentive available. Thus, the value of incentive is change which is depend upon the
time as well as circumstance (Ansari-Moghaddam and et.al., 2021). In this, psychological and
social factors have a role in order to determine which type of incentive assist employee to be
motivated. Therefore, there are two types of incentive used by the company which are:
 Positive incentives: Such type of incentive helps employee to receive something that is
desire in against of the work which they are doing. This include recognition, promotion
and raises.
 Negative incentives: Such type of incentive always degrade the performance of the
employees and make them realize that their performance is not good. Such type of
incentive includes reprimands, demotion, pay decrease or else different kind of penalties
(Liu and et.al., 2022).
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It has been identified that there are different examples of incentive provided by the
workplace that helps the employee to be motivated and raise their performance which include
bonus, praise, opportunity, promotion etc.
Herzberg Motivation theory:
This theory is a two way factor theory which is conducted by analyzing the views of
people. In this, two different incidents are used in order to determine the views of selected people
and it has been evaluated that there are different factors that need to be consider by the
employers under job dissatisfaction and satisfaction (Batool, Shahnawaz and Habib, 2022).
Under job satisfaction, growth, advancement, recognition, achievement are considered whereas
job dissatisfaction include supervision, salary, status, security etc. Therefore when a company is
offering different motivational strategies then it will be beneficial for the employees in order to
make them motivated to perform the job. Also, there are many critic of this theory such that it
only explain job satisfaction not motivation and this cause a direct impact over the business
performance.
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Adam Equity Theory of Motivation:
The theory is also helpful to the employees in order to get better outcome for the business
contribution. The theory is based upon two factors i.e. input and output. Under input, individual
contribute their best in order to make the work successful and in this, time, education, prior
experience and effort are considered some of the common input variable that helps individual to
attain the objectives of a company. In return, they want better outcome in the form of monetary
and non-monetary form that helps an individual to be motivated and remain skilled for the longer
term (Bushi, 2021). Also, benefits are those things which an individual always want when the
results are accomplish within an identified time. That is why, it can be stated when an employee
put their best efforts then in return they want company should provide effective benefits in favor
of positive contribution. Hence, the benefits include salary, benefits, job security and routine that
helps an individual to improve their work. Thus, it can be stated that with the help of effective
outcome the chances of creating better outcome with the firm will also increases and this causes
positive outcome
Analysis
Tesco is one of the leading firm that is used incentive theory at the workplace which helps
an organization to improve their employee motivation level. In this, company offer two type of
incentive which include monetary and non-monetary incentives that helps employees to realize
that they are also an important part of the company. In the monetary benefit, Tesco offer bonus
when the work is done before time and this helps to make them motivated to perform well. On
the other side, non-monetary incentive include recognition, which include publically praise that
help the employee understand that their hard work paid off (Yoes and Silverman, 2021). For
example, a month end reward that helps an employee to understand that their work is important.
Whereas, promotion is another type of incentive that provides an opportunity to the employee to
increase their roles and responsibility. This also reflect that employers are satisfied with the work
profile and that is why, they receive a higher sense of job security that assist to improve the
performance.
On the other side, company like Marks and Spencer uses Adam Smith theory that provide
motivation to the employees and make them able to improve the working performance. Such that
the team are divided in order to attain the specific work in M&S and to meet the same, each and
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every member put their efforts that helps to create a better outcome. In return, company offer
them an effective financial benefits that assist them to sustain the long term relation (Khan and
et.al., 2021). This reflect that company care for their employees and by offering promotion,
bonus and incentive, a zeal of working automatically generated that help to create a better
outcome. This in turn shows that the company should value their employees and it create a better
outcome by motivating their employees into positive manner.
Another example is Apple who also uses Herzberg theory of motivation that helps to
keep their employees motivated. Under this, company value their employees and make them
satisfied and that is why, the employee retention is good because employees keep working with a
firm in order to get better results. There are many job satisfaction factors that helps employees to
remain satisfied and generate a better outcome that contribute to make the company run
successfully (Mazzola and et.al., 2022). However, there are some other employees who are not
satisfied with the job profile and the also do not put and extra efforts in order to meet the defined
aim. The leaders and manager of the company keep motivating employees in order to make them
realize that employees are valued and that is why, employees are working so long with a firm to
get better results.
In addition to this, Tesco and Google Inc. are also uses Herzberg theory of motivation
which assist to motivate the employees and company also ensure that it pays attention to factors
that causes dissatisfaction as well as satisfaction. This shows that company also care for their
employees and want to provide a better working environment so that they can sustain the better
work life (Herzberg’s Two Factor Theory still holding strong, 2019). Hence, top companies in
UK ensure that they use effective motivation theory that assist company to create a better
outcome.
CONCLUSION
By summing up above report it has been concluded that motivation plays an important role
in the company and make the employees motivated to enhance the learning and attain the
objectives within a defined tenure. Through the theory and model, it has been concluded that
there are many theories and model used by the company as per the situation in order to improve
the productivity of the employees so that they can perform well and remain motivated. With the
help of different companies example, it has been summarized that managers and leader need to
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make efforts and implement plan that assist to create a better outcome and generate a better
outcome for the company.
Recommendations
There are many ways through which company can make employees motivated and some of
them are as mentioned below:
 It is to be suggested to the company’s employers to conduct face to face dicussion which
in turn assist to let know about the issues and them make efforts to resolve the same that
helps to make employees motivated.
 Further, it is to be suggested to offer them flexible working environment to the
employees which assist them to manage the personal as well as professional work-life
balance. This also helps to improve the working performance of the employees and make
them stress-free.
 Also, it is to be recommended to the managers to involve employees into a decision
making process that helps to make them realise that they are also an important assets of a
company that assist to create a better outcome.
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REFERENCES
Books and Journal
Ansari-Moghaddam, A. and et.al., 2021. The protection motivation theory for predict intention of
COVID-19 vaccination in Iran: a structural equation modeling approach. BMC Public
Health. 21(1). pp.1-9.
Batool, S., Shahnawaz, M. and Habib, S., 2022. Relationship of the Herzberg’s Dual Factor
Theory on Job Satisfaction and Motivation of Science Teachers. Journal of Science
Education. 3(2).
Bushi, F., 2021. An Overview of Motivation Theories: The Impact of Employee Motivation on
Achieving Organizational Goals. Quality-Access to Success. 22(183).
Khan, A. J. and et.al., 2021. Employee Job Satisfaction in Higher Educational Institutes: A
Review of Theories. Journal of South Asian Studies. 9(3). pp.257-266.
Liu, M. and et.al., 2022. Using an extended protection motivation theory to explain vaccine
hesitancy: a cross-sectional study among Chinese adults. Human vaccines &
immunotherapeutics. 18(1). p.2026136.
Mazzola, G. and et.al., 2022. Motivation and Background. In Functorial Semiotics for Creativity
in Music and Mathematics (pp. 3-8). Springer, Cham.
Rad, R.E. and et.al., 2021. Application of the protection motivation theory for predicting
COVID-19 preventive behaviors in Hormozgan, Iran: a cross-sectional study. BMC Public
Health. 21(1). pp.1-11.
Yoes, M. and Silverman, M. J., 2021. Expectancy Theory of Motivation and Substance Use
Treatment: Implications for Music Therapy. Music Therapy Perspectives. 39(1). pp.61-68.
Online
Herzberg’s Two Factor Theory still holding strong. 2019. [Online]. Available through: <
https://www.europeanceo.com/business-and-management/herzberg%E2%80%99s-two-
factor-theory-still-holding-strong/#:~:text=Tesco%20is%20one%20company%20that,well
%20as%20those%20causing%20satisfaction.>.
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