Motivation Theories in Business Organizations

This article discusses the importance of motivation in business organizations and explores two motivation theories - Herzberg's Two Factor Model and McGregor's Theory X and Theory Y. It examines the advantages and limitations of these theories when applied to a chosen organization. The article concludes by emphasizing the role of motivation in achieving organizational goals and objectives.

Introduction to Business
studies
(Task 3 – Case Study)

Contents
INTRODUCTION.....................................................................................................................................3
MAIN BODY.............................................................................................................................................3
CONCLUSION..........................................................................................................................................5
REFERENCES..........................................................................................................................................6

INTRODUCTION
Motivation is referred to an internal desire or wants to accomplish a task. Motivation in
context of business organisation stands to be very crucial as it enhances the ability of a person to
perform a given task and also enhances its commitment and loyalty towards a business (Kanfer,
Frese and Johnson, 2017). This project takes into consideration Jack retail outlets which have
been recently acquired by Tesco. These stores will be offering retail services at a competitive
pricing. This project focuses on identifying two motivation theories applicable to undertaken
organisation. There will be a mention of advantages and limitation of theories when applied to
chosen organisation.
MAIN BODY
Motivation is helpful in defining the reason behind behavior and actions of an individual.
A business when gathers a basic cause behind the behavior carries a potential to manipulating to
the same for the welfare of the organisation (Herzberg, 2017). In the first section there will be a
consideration of Herzberg’s motivation theory. This theory is also known as Two factor model
which aims to identify the reason behind motivation of an individual working for the
organisation.
This theory states that motivation of an individual is basically dependent upon two types
of factors i.e.
1. Hygiene Factors
2. Motivational Factors
Motivational Factors: These factors include recognition, advancement, responsibility,
achievement and growth. These are the factors which contribute highest to the motivation and
job satisfaction of an individual. However, the absence of these factory does not contribute
negatively to the job satisfaction. In context of Jack retail outlets, it is essential to make sure that
the human resource department assures the presence of such factors as it will enhance
performance of individual and will promote positive competition. This fact is advantageous as it
will contribute towards higher productivity. But the major disadvantage is that, inclusion of all

the factors may not contribute to the higher productivity as there are numerous external forces
influencing behavior and ultimately business operations (Coccia, 2018).
Hygiene Factors: These are not the integral part of the job but focuses on the circumstances
within which the job is to be performed. Some of the factors are working conditions, social
relationships, physical work place, policies and rules formed. Improvement in hygiene factors
does not motivate but they tend to improve upon the job satisfaction of an employee which
makes them pretty essential for an organisation (Steers and Sánchez‐Runde, 2017). The
advantage of same when applied to Jack retail outlets is that presence of high hygiene factors
will assure that basic tasks are performed in an ideal manner and operations are conducted in a
smooth manner. But the major disadvantage is that there is no parameter identified for
satisfaction of an individual. Each member can have a different perception towards the factors
and may not be satisfied with the manner in which hygiene factors are offered. Therefore, it is
essential to focus on factors which are feasible for the organisation and carry wider acceptance
by the members working for the Jack Retail outlets (Brdulak, Senkus and Senkus, 2017).
McGregor’s Theory X and Theory Y
This theory was given by Douglas McGregor in 1960 which divide employees of an
organisation in two categories as discussed below:
Theory X: This theory states that some individuals in an organisation stay demotivated
due to their personal interest and laziness. Such individuals avoid their work due to which
organisational productivity decreases (Dolan and et. al., 2017). The managers of Tesco can use
this theory for motivating these people through rewards and other activities so that they can
make better relations and can work properly for attaining their goals (Aithal and Kumar, 2016).
Theory Y: This theory states that some individuals in an organisation are self-motivated
due to which they tend to execute their work in effective and efficient manner. The managers of
Tesco can use this theory for the skill and career development of such employees due to which
they can achieve more milestones and achievements in their life (Aithal and PM, 2016).
Implementation of this theory assist management in focusing on both high and low
performance employees through dividing them into two parts i.e. X and Y. Under the theory X,
the manager of Tesco mainly focuses on increasing performance level of high performer and

their long retention with company by giving them rewards and other company benefits (Scullion
and et. al., 2016). This will increase employee retention rate but also impacts adversely on
working environment by restricting other employees to get same benefits. Under the theory Y,
the managers mainly focuses on low performer with an intention of increasing their performance
level by providing them training and learning programs at workplace. This will bring confidence
and competition among employees which leads to high productivity and profitability of Tesco
(Lee and Edmondson, 2017).
CONCLUSION
It has been concluded from the above discussion that motivation is the key to bring out
maximum efforts and productivity from employees towards achievement of organizational goals
and objectives. For this, the management is held liable to analyse each motivational theory by
identifying benefits and drawbacks if implemented at workplace. These motivational theories
include McGregor’s theory X and Theory Y, Herzberg’s motivational theory etc. Implementation
of these motivational theories increases the possibility of an organization to achieve
organizational goals and objectives within pre-determined time period.

REFERENCES
Books and Journals