Motivational Theories and Sources of Finance for Zylla Limited

This article discusses different motivational theories and their advantages and disadvantages in context of a case study. It also explores short term and long term sources of finance for Zylla Limited and recommended investment appraisal techniques for the company. The article is relevant for students studying business studies and finance.

Introduction to Business studies

Table of Contents
Task 3- Case Study..........................................................................................................................1
Introduction......................................................................................................................................1
Main Body.......................................................................................................................................2
Analyse different motivational theories and their advantages and disadvantages in context of
case study................................................................................................................................2
Conclusion.......................................................................................................................................7
Task 4- Individual report.................................................................................................................8
Introduction......................................................................................................................................8
Main Body.......................................................................................................................................9
Short term and long term sources of finance to fund the acquisition of the ferry and for the
company’s working capital needs..........................................................................................9
Evaluation of various investment appraisal techniques and recommendations made for the
company...............................................................................................................................10
Conclusion.....................................................................................................................................11
References:.....................................................................................................................................12

Task 3- Case Study
Introduction
Motivation plays an important role which drive the employees to perform well in the
organization. It is defined as an approach which helps in achieving the desired goal or to improve
the performance level of an individual. Motivation is one of the factor that leads the employee
towards success(Alharbi, 2020). If an employee is motivated he will have high job satisfaction
and will work with more dedication to gain success in future. Motivated employees are more
loyal and work with a positive spirit. Tesco also focuses on this factor to keep their employees
motivated for performing well.
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Main Body
Analyse different motivational theories and their advantages and disadvantages in context of
case study
Motivated employees have high concentration and make less mistakes in their work. Tesco wants
its employees to be motivated for the work they perform. It motivates its employees by
rewarding timely for their work and by enhancing their skills and knowledge by providing
training and development for better growth.
These theories are developed to understand the needs of people. It provide an idea of how a
person behaves and what motivate them(Keblawi, 2020). Two theories in relation to the
motivation of employees to work for Jack stores.
1. Maslow Hierarchy of Needs
Abraham Maslow says that motivation of a person depends on various factors that he showed in
a pyramid form explaining needs of humans which is known as 'hierarchy of needs'. This theory
allow the management to assess the needs of the employees to provide motivation. First phase of
the pyramid explains the basic needs that are essential part for livelihood such as food and
shelter. The second phase explains about the safety and security needs like job safety or
insurance. Other phase include social needs, esteem needs and self actualization needs which are
followed by one another.
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As an HR assistant of Jack stores it is important to follow this chain of hierarchy to provide
motivational support to the employees to work in the new store. The management of Jack stores
can meet the basic needs at the beginning by giving a satisfactory package to the employees.
Security and safety needs can be meet by providing health insurance policy, job safety or good
environment. Social and esteem needs by providing friendly environment to work and by
praising for working hard as Tesco emphasise self-respect and respect others. Last phase need
self actualization can be cover by providing training to their employees for better growth and
productivity.
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Illustration 1: Source: Adapted from Maslow, A. H. (1954).
Motivation and personality. New York: Harper.
(Source: Adapted from Maslow, A. H. (1954).
Motivation and personality. New York: Harper.

2. Herzberg Two-factor Theory of Motivation
Herzberg two factor theory explains two factors that create satisfaction or dissatisfaction among
employees. It is also called as Motivation Hygiene theory(Esekpa, 2021). Hygiene factors create
dissatisfaction among employees if they are absent. The presence of motivating factors motivates
employees to work hard. Hence, HR should consider both the factors for employee motivation.
Hygiene factors such as job security, insurance which lowers dissatisfaction and the motivational
factors such as working environment, rewards, responsibility increases satisfaction and
motivates.
So this theory helps the management to provide a positive environment to their employees and
motivate them to work in Jack store opened by Tesco. Maintaining proper hygiene in the
organization satisfies the employees to work efficiently.
Advantages of Maslow hierarchy theory
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Illustration 2: Herzberg’s Motivation Theory – Two Factor
Theory,2018
(Source:Herzberg’s Motivation Theory – Two Factor Theory,2018)

 Easy to understand – This theory is easy to understand because everyone once in a
lifetime has gone through one or other stage of needs mentioned in pyramid. This is an
advantage for Jack discount store as it will become easier for them to understand the
needs of their employees and what they want. Motivated employees works more
efficiently and with proper dedication to get their work praised.
 Expresses human nature – This theory focuses on human nature that is more
demanding as the needs of lower level are satisfied. In an organization the needs of
employees are not constant they keep on changing with time according to their working
nature like if they work hard and give profits to the company than they expect rewards for
their work in return.
Disadvantages of Maslow hierarchy theory
 Every individual thinks differently – Major disadvantage of this theory is that all
individuals do not think in the same manner all have different views and thoughts. This
aspect is difficult to manage by HR of Jack store because every employee has different
nature.
 Satisfaction is not measurable – It is a difficult task to measure satisfaction of any
employee in an organization(Yesilçinar, 2021). Because human mind can not be
calculated by any machine. As every person has different level of satisfaction some will
satisfy themselves by fulfilling basic needs while some person will not get satisfied by
fulfilling all level of needs.
Advantages of Herzberg theory
 Significance on motivation – This theory put focus on motivation that come from within
the employees instead focusing on external factors. By adopting this theory Jack store can
focus on improving their working environment to keep its employees motivated for
working hard which will help the company to grow in future.
 Focus on employees problem – Many companies think that salary is enough to satisfy
the employees but its not like that. When company uses this theory they come to abiut the
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problems of the employees that dissatisfy them. So it helps in making the environment
friendly for all the employees.
Disadvantages of Herzberg theory
 External factors are ignored – This theory ignores external factors which are very
important for an organization. As for example if competitor company is giving more
salary for the same profile in Jack store than the employee will not be satisfied even if the
company has applied Herzberg theory.
 Job satisfaction and productivity are not related – The major advantage of this theory
is that it is not important that the employees who are satisfied will show increase in
productivity of the company(France and France, 2018). It is wrong thinking of the
company that job satisfaction will result in job productivity.
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Conclusion
This case study shows that motivation is a key factor to increase productivity. To grow in the
market Jack store needs to adopt motivational theories to keep their employees motivated.
Because businesses now need to focus on employee motivation as it results in more productivity.
Motivation is based on various factors and companies need to focus on these factors to maintain
a healthy environment for employees. Hence motivational theories helps the management to take
appropriate measures for providing benefits to the employees.
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Task 4- Individual report
Introduction
It is essential for a company to focus on their financial activities and analyse which
source of finance is best suitable for the investment in launching any new product and services in
existing market or in new market with the main aim of company's expansion. Zylla Limited is a
company which operate number of ferries which are used to serve the service of river crossings
for customers, vehicles and parcels. The performance if this company is good and now they plan
to expand their business. Every company's basic requirement is finance in expansion activities.
Hence, Zylla Limited also require appropriate source of finance. Company can use both short
term as well as long term sources of finance to achieve their expansion goal. The following
report covers few types of short term and long term finance sources for the company and
recommended investment appraisal techniques for the company.
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Main Body
Short term and long term sources of finance to fund the acquisition of the ferry and for the
company’s working capital needs
Short term source of finance are those finance which are cover up within one year of
time phrase. There are few types of short term sources of finance for a company and few of these
are mentioned below-
2. Commercial bank loans- When a loan is repaid within one year of time period than it is
termed as short term of commercial bank loans (Tirumalsety and Gurtoo, 2021). When
firms need instant fund requirement than they think to use banking facilities due to their
affordable interest rates. Some of the banks charge low amount of interest rate upon their
loans so that more customer will get attracted toward using their banking facilities.
3. Commercial paper- It is a promissory notes sold to other business where a individual or
business who purchase the products or services will promise to pay the amount within
one year of time. The time period for commercial papers are basically from two to six
months. The rate of prime commercial paper is vary from different rates but generally the
rate of commercial paper are low.
Long term sources of finance are those finance facilities which a firm can use more than
one year (Sabri and Aw, 2019). There are few options of long term sources of finance for a firm
which are mentioned below-
 Special financial institution- These type of institution are set up by the state and central
government with the main aim of providing long term financial facilities to various
organisations. These type of financial institutions help the companies to expand by
providing them long term financial services. Hence, these types of businesses help to
promote economical growth of a nation by providing long term loans to new businesses.
 Capital market- Here, companies purchase debentures and shares in share market. There
are two different segments in this market (Haydarov, 2020). First is primary markets
where new shares are issued. Secondary market consist of purchase and sale of existing
securities which is known as stock market or stock exchange. Here, companies or
individual purchase shares and debentures and sell them according to their wish after few
years whenever the value of their debentures get increased.
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From the above information it is good for Zylla Limited company to use the option of
long term financial sources by using facilities of special financial institutions. This option will
help Zylla Limited to use loans on lowest interest rates with the companies. Hence, they can buy
new ferry's for expansion of their business.
Evaluation of various investment appraisal techniques and recommendations made for the
company
 Payback period- This technique will help the business to know how much time they will
acquire to generate sufficient amount of profit to cover their initial cost of project
(Mangialardo and Micelli, 2018). It is easy way to calculate and understand the method
and cost of covering initial investment of a project. People who are not related to
financial background can also understand it easily. The only disadvantage of this method
is that it ignores the time value of money.
 Accounting rate of return method- This method helps to made the expectation from a
investment. It is also called return on investment or return on capital (Chen, 2020). This
method helps to analyse net accounting profit from investment made by the company.
 NPV rule- Net present value rule is the idea where the investors and managers of a
company invest only in the project. Here, they analyse the importance of project and only
invest in those projects which will provide them positive net present value. In other
words, it is the expected compound annual returns of investors over the investment life.
From the above information it is evaluated that there are various kinds of investment
appraisal techniques which can be identified by an company and individual. In context of Zylla
Limited, it is recommended that they can use Payback Period Method as an investment appraisal
technique because it is one of the most easy technique to analyse time for covering initial
investment of project. Here, in case Zylla's Limited purchases 50 ferry's than they will identify
how much income they have to earn in what appropriate time to cover this cost well.
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Conclusion
From the above information it is concluded that analysing financial requirement of a
company is essential because finance is the most important part and source of conducting a
business. Short term financial sources are those sources which are used within one year of time
period and on the other hand, long term financial sources are those sources which are used by the
company for more than one year of time period. Commercial bank loans, commercial papers and
many others are the examples of short term financial sources. Capital market, special financial
institution and many others are examples of long term financial sources. There are various
investment appraisal technique which can be used by a organisation such as payback period,
NPV rule and many others.
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References:
Books and Journals
Alharbi, A.T., 2020. Exploring Motivational Strategies Practiced by Saudi High School Female
EFL Teachers. English Language Teaching. 13(6), pp.109-117.
Chen, X., 2020. Exploring the sources of financial performance in Chinese banks: A
comparative analysis of different types of banks. The North American Journal of
Economics and Finance, 51, p.101076.
Esekpa, O.I., 2021. Catalyst for Policy Making Institution: Employees’ Motivational Factor and
Work Output and Efficiency. International Journal of Public Administration and
Management Research, 7(1). pp.54-60.
France, C.R. and France, J.L., 2018. Online responses to motivational interview questions
enhance blood donation intention. Transfusion, 58(12). pp.2874-2879.
Haydarov, U., 2020. Financial management system, tools, sources of investment activities and
factors. Архив научных исследований, 35.
Keblawi, F., 2020. Motivational Strategies in the English Classroom: The Case of Arab Learners
in Israel. International Journal of Educational Methodology, 6(3). pp.579-586.
Mangialardo, A. and Micelli, E., 2018. From sources of financial value to commons: Emerging
policies for enhancing public real‐estate assets in Italy. Papers in Regional
Science, 97(4), pp.1397-1408.
Sabri, M.F. and Aw, E.C.X., 2019. Financial literacy and related outcomes: the role of financial
information sources. International journal of business and society, 20(1), pp.286-298.
Tirumalsety, R. and Gurtoo, A., 2021. Financial sources, capital structure and performance of
social enterprises: empirical evidence from India. Journal of Sustainable Finance &
Investment, 11(1), pp.27-46.
Yesilçinar, S., 2021. Motivational Strategies in Language Learning: Student-Teachers'
Perceptions and Views. Online Submission, 1(1). pp.41-56.
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