Motivational Theories in Business Studies

This report discusses the use of motivational theories in business studies, focusing on Maslow's Hierarchy theory and ERG theory. It explores how these theories can be used to motivate employees and increase productivity. The advantages and disadvantages of each theory are also discussed.

INTRODUCTION TO BUSINESS STUDIES

TABLE OF CONTENT
INTRODUCTION......................................................................................................................3
TASK 1......................................................................................................................................3
Maslow Hierarchy theory.......................................................................................................3
ERG theory.............................................................................................................................4
CONCLUSION..........................................................................................................................6
REFERENCES...........................................................................................................................7
Books and Journals.................................................................................................................7

INTRODUCTION
This report discuss regarding the company which is named as TESCO. It is
multinational chain of supermarket which is located in UK. This company was founded by
the Jack Cohen in the year of 1919. They offer wide variety of products and services to its
customer in order to satisfy them. In addition to this, they launch new discount stores named
as “Jack” in order to competitive advantage over rival firm at marketplace. There is various
numbers of competitors such as ALDI as well as LIDI available in the market. Apart from
this, it is necessary to motivate employees towards adopting strategy that helps in increasing
productivity level at marketplace (Baumeister, 2016).
TASK 1
There are different kind of motivational theory is used for motivating the employees
within business organisation. In addition to this, it is necessary for subordinates to satisfy the
need in order to achieve goal and objective of company which is going to be mentioned
below:
Maslow Hierarchy theory
They theory was given by Abraham Maslow in the year of 1950s. There are five
levels of motivational theories in order to satisfy the demands of customer. It helps in
achieving the goal and objective of business organisation in less time period.

Physiological need: The first stage of motivational theory is physiological need. The
basic need includes food, water, and air in order to fulfil the basic need of employees for
achieving goal and objective of business organisation (Deci and Ryan, 2016).
Safety need: After satisfying the basic need, it is necessary to provide safety and
security need such as job security, health benefits and old age pension in order to encourage
employees that helps in increasing productivity of the business firm. It assists in increasing
sales as well as profitability level within organisation.
Social need: After fulfilling basic as well as safety need, it is necessary to improve
friendship and belongingness need. It motivates the staffs for satisfying the need in order to
maintain peace of mind.
Self-esteem need: Herein, the manager focuses on achieving respect, self respect and
status in order to motivate employees. It helps in increasing satisfaction level of employees
towards launching “JACK” discount stores for achieving self esteem need at workplace.
Self-achievement need: After satisfying all the above mentioned need, the supervisor
of TESCO motivates staffs to perform their work well in order to satisfy self-achievement

need. Apart from this, it encourages employees to execute their activities and task in an
effective manner (Wentzel, 2017).
Therefore, it is necessary for HR manager to satisfy the basic need of an individual
person at workplace. In addition to this, it helps in introducing discount stores that helps in
achieving goal and objective of business organisation at workplace.
Advantages
 The main benefits of using Maslow theory is it is easily understand as well as all these
needs must be fulfilled in order to motivate employees within business organisation.
 This is relevant to satisfy the basic needs which help subordinates in increasing
performance level of employees at marketplace.
Disadvantage
 There are different type of individual person come together from different
background and culture. Sometime, it generates differences in culture arises at
workplace.
ERG theory
This theory is developed by Aldefer in the year of 1969. It is divided into three
segments such as Existence, Relatedness as well as growth. The theorist focuses on satisfying
the basic need and wants of employees Rainear and Christensen, 2017). This theory is the
extension of Maslow theory which is going to be mentioned below:
Existence: In this theory, it is necessary to satisfy the basic need of an individual
person. It included both physiological as well as safety need of employees in order to satisfy
them. It helps in increasing sales as well as profitability level of organisation. The manager of
TESCO focuses on introducing discount stores named as “JACK” for achieving competitive
advantage over rival firm at marketplace.
Relatedness: Furthermore, it is necessary to maintain interrelationship among
employees within business organisation. Herein, it included safety need as well as some part
of self esteem need in order to motivate employees for increasing their performance within
business organisation Stoyanov, 2017)

Growth: After satisfying above mentioned need, it is vital for manager focuses on
personal growth of employees. Herein, it satisfies the self-actualisation need of an individual
person within business organisation.
The HR manager focuses on motivating employees towards introducing discount
stores that helps in achieving competitive benefits over rival firm at marketplace. There is
large number of competitive available such as ALDI as well as LIDI (Ruthig, 2016).
Therefore, it is necessary for TESCO to offer products and services to its customer at
affordable cost.
Advantages
The ERG theory is increasing their knowledge regarding various individual people. In
addition to this, there different variable which included education, background as well as
cultural environment can change the significance or energetic strength that a assembly of
requirements hold for specific individual person.
Disadvantages
This theory does not provide the guidelines in well-defined manner. It is difficult to
satisfy all the need of an individual person can be considered as disadvantages for business
organisation.
CONCLUSION
From the above mentioned report, it has been analysed that HR manager plays an
important role for the success and growth of business organisation. In addition to this, it is
vital to motivate staffs towards achieving goal and objectives of the company. Apart from
this, TESCO is a multinational chain of supermarket which is located in UK. They offer wide
variety of products and services to its customer at affordable cost. Beside form this, there is
two kinds of motivational theory such as Maslow as well as ERG theory in order to motivate
individual person within workplace. It helps in boosting productivity as well as profitability
of business organisation.

REFERENCES
Books and Journals
Baumeister, R. F., 2016. Toward a general theory of motivation: Problems, challenges,
opportunities, and the big picture. Motivation and Emotion, 40(1), pp.1-10.
Deci, E. L. and Ryan, R. M., 2016. Optimizing students’ motivation in the era of testing and
pressure: A self-determination theory perspective. In Building autonomous learners (pp. 9-
29). Springer, Singapore.
Wentzel, K .R., 2017. Peer relationships, motivation, and academic performance at school.
Rainear, A. M. and Christensen, J. L., 2017. Protection motivation theory as an explanatory
framework for proenvironmental behavioral intentions. Communication Research
Reports, 34(3), pp.239-248.
Stoyanov, S., 2017. A theory of human motivation. CRC Press.
Ruthig, J. C., 2016. Health risk perceptions and exercise in older adulthood: An application
of protection motivation theory. Journal of Applied Gerontology, 35(9), pp.939-959.
Rigby, C. S. and Ryan, R. M., 2016. Motivation for entertainment media and its eudaimonic
aspects through the lens of self-determination theory. The Routledge handbook of media use
and well-being: International perspectives on theory and research on positive media effects,
pp.34-48.
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