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Application of Herzberg's Two Factor Theory in Real Life Companies

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Added on  2023-01-18

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This article discusses the application of Herzberg's two factor theory in real life companies to motivate and remunerate executive level employees. It provides examples of two companies, AGL Energy Limited and Commonwealth Bank of Australia, that use this theory in their reward systems. The article also explains the concept of the triple bottom line and how it relates to employee motivation.

Application of Herzberg's Two Factor Theory in Real Life Companies

   Added on 2023-01-18

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Running head: SUSTAINABILITY
SUSTAINABILITY
Name of the Student:
Name of the University:
Author Note:
Application of Herzberg's Two Factor Theory in Real Life Companies_1
1SUSTAINABILITY
Answer A2:
The selected theory of motivation would the two factor motivation theory coined by
Fredrick Herzberg. The two factor theory takes into account two factors the motivators and
hygiene factors. The motivators refer to those attributes within the job environment which
motivates the employees to perform better like support of co-workers, opportunity to take into
new challenging assignments to showcase professional skills and competencies. The hygiene
factors are related more the financial aspects which motivate employees like salary, incentives
and appraisals. It can be pointed out that two factor theory proposed by Herzberg finds great
acceptance in the real life companies (Alfayad and Arif 2017). For example, the management of
the companies in order to motivate employees aim at establishing a healthy and conduct work
environment which correspond to the motivator factors. Similarly, the companies provide
employees salary hikes and incentives which corresponds to the hygiene factors. Thus, it can be
inferred from this discussion that Herzberg’s two factor theory finds significant application in the
reward systems to motivate both executive level employees and non-executive level employees.
Khalaf, Hmoud and Obeidat (2019) point out that the top level management in order to
strengthen the motivator factors follow triple bottom line model. The triple bottom line or TBL
refers to the framework which takes into account three aspects of the operations of the business
organisations namely, economic, social and environment. The business organisations use this
framework to report their strategic performance management systems (SPMS). Edgeman,
Eskildsen and Neely (2015) point out that first salient feature of the triple bottom line. They
mention that the triple bottom line takes into account the economic aspects of the business
organisations like the profit earned by them during a year and the new acquisitions which have
Application of Herzberg's Two Factor Theory in Real Life Companies_2
2SUSTAINABILITY
attributed to the business growth of the organisations. McWilliams et al.(2016) point out the
second salient feature of TBL which is that business organisations take into account the social
aspects of their operations. Unit (2015) support this view of the previous authors and point out
that business organisations are regarded as social entities since they interact with the society
throughout the course of their business operations. Bocken, Rana and Short (2015) point out that
third aspect of the triple bottom line which is that TBL takes into account the environmental
aspects of the business operations. The business organisations extract the resources like raw
materials from the environment and in the process release immense amount effluents which have
detrimental impacts on the environment and the people living in the society. Unit (2015) can be
reiterated in this respect that business organisations being responsible corporate citizens are
expected to act responsibly throughout the course of their business operations including
extraction of materials from the environment. Hazen, et al.(2018) point out the fourth salient
feature of TBL which is that companies can use it to make decisions. The business organisations
in order to illustrate their compliance with the TBL incorporate the same in their strategic
performance management systems reporting. Thus, it can be pointed out that TBL enables the
companies to report both the financial or economic aspects of the businesses as well as non-
financial aspects of the businesses like their impact on the environment. Lukwago, Basheka and
Picho (2015) point out that this compliance with TBL enables the organizations gain stronger
support from stakeholders like investors and governments. This support benefit the company by
making more resources available to it. For example, the government may provide organisations
with training while its sustainable image enables it to attract more capital. This enables the
companies to pay their employees in the senior level higher remuneration to motivate the latter.
Application of Herzberg's Two Factor Theory in Real Life Companies_3

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