Strategic Thinking and Motivation at Milestone Hotel: A Report

This report examines the issue of employee demotivation at Milestone Hotel, a renowned UK hotel. It explores the negative impacts of demotivation, such as inefficiency, low productivity, high employee turnover, and unsatisfied customers. The report emphasizes the crucial link between employee motivation, strategic thinking, and value management, highlighting how motivated employees contribute to effective planning and customer satisfaction. It reviews relevant literature on motivation, defining it and exploring various motivational theories. The report also identifies challenges related to motivation, including cultural differences, diverse employee needs, and the selection of appropriate rewards. It provides a comprehensive analysis of the factors influencing employee performance and offers recommendations for improving motivation within the hotel, ultimately aiming to enhance both strategic planning and value management.

Strategic Thinking and
Value Management

Table of Contents
INTRODUCTION...........................................................................................................................1
Outlining the business phenomenon...........................................................................................1
Literature Review.............................................................................................................................3
Issues related to motivation.........................................................................................................4
Importance of motivation............................................................................................................6
Ways to motivate employees .....................................................................................................6
Role of motivation in improving individual performance..........................................................8
Motivation and its theories ..............................................................................................................9
Recommendations ....................................................................................................................14
Conclusion.....................................................................................................................................15
REFERENCES..............................................................................................................................16

Illustration Index
Illustration 1: Maslow's Heirarchy of Needs Theory.....................................................................11
Illustration 2: Herzberg's Two Factor Theory................................................................................12
Illustration 3: McGregor's Theory X and Theory Y......................................................................14
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INTRODUCTION
Strategic thinking in an organization can be defined as a process through which a firm
can think about the future. In other words, it involves top level management who plan for the
future regarding all the areas of operation. On the other hand, Value management can be defined
as a technique which focuses on achieving and maximizing value of money (Kapferer, 2012). In
other words, it is a process through which managers’ can focus on improving effectiveness and
efficiency of the business. This report is about Milestone hotel which is one of the best known
and largest hotel in UK. They understand their customer’s needs and wants. Accordingly, their
focus is on providing services through which they satisfy them. However, the issue the hotel
faces is that employees are demotivated and are not working with their full efficiency (Crawford,
Costa-Gomes and Iriberri, 2013). This report will state reasons of their demotivation and steps
that would be taken in order to motivate them. Lastly, it would cover different motivational
theories which can be adopted by Milestone in order to motivate their employees.
Outlining the business phenomenon
As it is said above, Milestone is the best known hotel in UK and was awarded as the
“Best small hotel” in 2005. The main aim of this hotel is to satisfy their customers by
understanding their need and wants. In order to do it effectively, it is very important for
employees to be motivated or encouraged (Zahra and Nambisan, 2012). When staff is motivated,
then they will put on their full efforts in understanding theirguests. Firm would be able to solve
many of their issues if they motivate their employees. There are many issues faced by Milestone
because of demotivated staff. Following are the issue faced by Milestone:
Inefficiency: Employees are not performing effectively. In order to understand and satisfy the
needs of customers, it is very essential for employees to provide services demanded by them
efficiently (Markides, 2012).
Low production: Due to the lack of motivation, employees are not able to develop proper
services. In a hotel, it is very important to have a minimum production so that they can earn
profit at the end of each month (Holstius and Malaska, 2014). Due to the lack of motivation,
employees are not able to meet their production level.
High employee turnover: As the firm is not using any proper ways to motivate their employees,
so they are not able to cop up with their work (Moon, 2013). All the needs and wants are not
fulfilled as a result employees turnover is high.
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Unsatisfied customers: As employees lack motivation, hence they are not able to work
effectively. As a result, they are not able to provide what customers expect and thus, guests get
unsatisfied with the services provided by staff of Milestone (Moon, 2013).
Motivation will be helpful with the context of strategic thinking as it will help in creating
new ideas. Motivated employees will be able to contribute effectively towards the betterment by
giving valuable suggestions through which organization would be able to adopt them for the
growth (Self, Self and Schraeder, 2015). It is obvious that in creating strategic plan, motivation is
very essential. One cannot implement any plan until employees are not motivated. Demotivated
staff will not take initiative and will not take part in any of the operation of the organization. In
strategic thinking, there is a requirement of employees who would be enthusiastic and motivated,
they will be able to contribute effectively towards the growth of the firm.
Value management can be determined as sustaining and improving a balance between
need and want of product or services required by stakeholders. When these are fulfilled, then
organization will be able to earn its profit (Kelly, Male and Graham, 2014). All strategic
thinking, motivation and value management are linked with each other. Only motivated
employees would be able to contribute effectively in developing strategic planning and through
this firm would be able to gain profit and increase value. Further, through value management,
organization will be able to focus on maintaining their quality of services which they provide to
their customers (Nawi, Dahlan and Nadarajan, 2015). In this context, if the employees of
Milestone are motivated, then they will be able to understand the areas in which they lack and
accordingly, they will be able to make changes for improving their quality of services.
Thus, it can be stated that for both strategic thinking and value management, motivation plays an
essential role in improvement and betterment of services and in satisfying customers effectively.
In addition to this, firm will be able to improve the efficiency and create satisfied consumers
Literature Review
According Tamir, Bigman and Schreier, 2015 “motivation can be defined as giving a
reason to someone for doing something” (Tamir, Bigman and Schreier, 2015). On the other hand,
Reeve, 2014 stated that “motivated employees are capable of performing more effectively than a
normal person” (Reeve, 2014). There are many ways and sources through which an individual
gets motivated. Different employees have diverse ways of getting motivated. It will be very
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helpful for management to understand the employees effectively and to take appropriate steps
through which they could be motivated. As per Pinder, 2014 “performance of motivated
employees would be always higher than the any other person” (Pinder, 2014). Nuttin, 2014
stated that “demotivated employees will not take part in any of the activities or their performance
will not be that good” (Nuttin, 2014). Further, training will help in making the workers clarify
their doubts and enhancing their skills. But it is also true that in learning anything motivation
plays a vital role. According to Petri and Govern, 2012 “learning a new thing or in understanding
anything effectively is only possible through motivation” (Petri and Govern, 2012). Motivated
employees will be able to learn and understand effectively. There have been many researches
done on motivation in which they focused on finding out the areas or the reasons through which
worker can be motivated. As per Wu, Liu and Chou, 2013 “organizations which have motivated
employees will be able to gain huge profit compared to the firm who have demotivated staff”
(Wu, Liu and Chou, 2013). However, Hoseyni, Mirzaei and Mirzaei-Alavijeh, 2014 stated that
“firms should train their employees so that they could perform their roles and responsibilities
effectively and could contribute to the organization in achieving their goals and objectives”
(Hoseyni, Mirzaei and Mirzaei-Alavijeh, 2014). Further, according to Richard, 2012 “worker
should be rewarded and appreciated if they perform well in their role” (Richard, 2012).
However, there are authors like Malik and Naeem, 2013 who stated that “firms should use
motivational theories in order to motivate their employees” (Malik and Naeem, 2013). In this
context, there are many ways through which firm can focus on improving their workers and there
are organizations who uses different motivational theories.
According to Thielke, Harniss and Johnson, 2012 “motivation is a word that has been originated
from the word 'Motive' which defines want, requirement, needs, desires that are developed
within an individual” (Thielke, Harniss and Johnson, 2012). There are many desires that an
individual have in his/hermind and when these desires are fulfilled, they get motivated. As per
Taormina and Gao, 2013 “management should try to understand each employee so as to motivate
them in best possible manner(Taormina and Gao, 2013). In this context, management should
focus on satisfying their desires slowly. This would be helpful in motivating workers. Strategic
thinking is possible only when employees get motivated, these workers will be able to think
logically and could understand the operations more clearly. Accordingly, the hotel will be able to
make changes which will help them in gaining profits. In addition to this, value management will
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be possible only when management will be able to motivate their workers (Jerome, 2013).
Motivated employees will be able to satisfy their customers and in understanding their needs and
wants easily.
Different authors have given different types of motivational theories with the help of which
organizations can motivate their employees effectively (Mohamed and Nor, 2013). One of the
most commonly used theory is Maslow's motivational theories. It is determined to be the best
one as it covers all the essential areas through which employees can be motivated. Further, there
are many other motivational theories like X and Y theory, Hertzberg hygiene etc. In addition to
this, Aaij, Beteta and Alexander, 2012 stated that “there are different types of ways through
which the staff gets motivated. They are rewards, appreciation, intensives, etc.” (Aaij, Beteta and
Alexander, 2012). However, Russ, 2013 suggested that “worker's moral or motivation level also
increases according to the increase in pay or salary which they have been given” (Russ, 2013).
Issues related to motivation
According to Ushioda, 2013 “people in different countries have different culture. With
this respect, Maslow's theory was developed according to the culture and life style of
Americans” (Ushioda, 2013). As a result, this theory may not be applicable in all countries as the
culture followed in other countries would be different. As per Heckhausen, 2012 stated that
“organizations should be very careful in selecting the motivational theory, they should analyse
all the areas in which they would be able to adopt the theory easily” (Heckhausen, 2012).
Moreover, before adopting any theory, firm should have alternative options so that if one theory
did not work then they would have some other ways to motivate their employees (Ushioda,
2013). Thus, it can be said that change in culture becomes an issue in adopting motivation.
As per García-Chas, Neira-Fontela and Varela-Neira, 2016 “men worker aim of getting
higher post or authority but women employees focus on learning new things” (García-Chas,
Neira-Fontela and Varela-Neira, 2016). However, Andersen and Kjeldsen, 2013 stated that
“different employees have different set of skills, capabilities and desires, it becomes difficult to
motivate employees as they would get motivated when they will achieve their desired goals”
(Andersen and Kjeldsen, 2013). Fullfilling all the concerns is very difficult for the management.
In this context, people should be able to adopt motivational theory which would help them to
fulfil their desires commonly (Hofmans, De Gieter and Pepermans, 2013). In a group there
would be different posts and there would be able to motivate each employees when their
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personal goals and objectives could be achieved. For example, a professional get motivated when
they face new challenges. But employees who work at lower posts get motivated when they are
appreciated and provided them with incentives or rewards (Kapferer, 2012).
Another issue which arises is the selection of reward which should be provided to employees.
There are different types of rewards which can be given to the worker like extrinsic and intrinsic
reward. According to Crawford, Costa-Gomes and Iriberri, 2013 “extrinsic rewards are physical
rewards that are given to the employees in form of gifts, salaries, promotions, etc.” (Crawford,
Costa-Gomes and Iriberri, 2013). On the other hand, Zahra and Nambisan, 2012 stated that
“intrinsic is that type of reward which cannot be seen like appreciation, recognition, trust, etc.”
(Zahra and Nambisan, 2012) These types of rewards are very helpful in motivating and in
encouraging staff so that they can contribute effectively towards the growth and development of
the organization.
Markides, 2012 stated that “organization get highly affected by the employee's performance
specially from those who are demotivated” (Markides, 2012). On the other hand Kelly, Male and
Graham, 2014 stated that “motivated employees contribute effectively towards the growth and
development of an organization” (Kelly, Male and Graham, 2014). Further, demotivated
employees do not stay long in the firm and it increases the costIt is very essentially for the
management to understand the issue or the ways through which they can motivate their staff.
Importance of motivation
There are many benefits through motivation employees. Following few of the importance
of motivation for organizations:
According to Tamir, Bigman and Schreier, 2015 “willingness and ability to perform any work
highly affects the efficiency of an individual” (Tamir, Bigman and Schreier, 2015). When
employees are motivated, they understand their roles and responsibilities and and work
effectively to meet customer’s needs and wants. Petri and Govern, 2012 stated that “motivated
employee will be able to develop willingness to the better performance of the job' (Petri and
Govern, 2012).
As per Wu, Liu and Chou, 2013 “motivation helps in in changing the negativity and workers
would make efforts to create positive energy so as to put on their full efforts towards improving
their performance” (Wu, Liu and Chou, 2013). Most of the employees work with a negative
attitude because of this they do not contribute effectively towards the betterment of the
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organization. On the other hand, motivated employees work effectively and contribute towards
the welfare of the firm.
According to Hoseyni, Mirzaei and Mirzaei-Alavijeh, 2014 “reputation of a firm is affected by
employees turnover” (Hoseyni, Mirzaei and Mirzaei-Alavijeh, 2014). However, Malik and
Naeem, 2013 stated that “motivation is the only source through which organizations can retain
their workers” (Malik and Naeem, 2013). Motivation help in keeping employees stay long in the
organization and worker turnover rate can be reduced. In addition to this, it also helps in
reducing absenteeism in the firm. Motivated employees love to work and aim at improving their
efficiency (Taormina and Gao, 2013). They enjoy their work and take love to develop their
interpersonal skills.
As per Aaij, Beteta and Alexander, 2012 “understanding and in satisfying customers is only
possible for employees when they are motivated” (Aaij, Beteta and Alexander, 2012). When
customers are satisfied, then it is very helpful in gaining profit. In order to encourage employees,
one of the best way is to reward them according to their performance.
Ways to motivate employees
There are many ways through which employees can be motivated. They are: Taking suggestions:
When employees will be given the opportunity to give their suggestions (García-Chas, Neira-
Fontela and Varela-Neira, 2016). This is very helpful in creating confidence and motivation
among employees.
Listen: When employees are heard, then they feel that their issues will be solved. According to
Andersen and Kjeldsen, 2013 “carving out time to listen the issue or problems which workers
would be facing, it helps them to feel happy and motivated” (Andersen and Kjeldsen, 2013). On
the other hand Hofmans, De Gieter and Pepermans, 2013 stated that “employees work closely
with customers and they may be having ideas through which they can improve their own
services” (Hofmans, De Gieter and Pepermans, 2013).
Allowing pets at work: As per Taormina and Gao, 2013 “when employees are allowed to take
their pet to office, then they feel sense of happiness and companionship” (Taormina and Gao,
2013). This strategy is very helpful in motivating workers and in developing positive energy
within them.
Encourage individuality: Aaij, Beteta and Alexander, 2012 stated that “every individuals is
different and do possesses different skills, while according to their skills they are encouraged,
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then they feel motivated and contribute effectively towards the development of the organization”
(Aaij, Beteta and Alexander, 2012). On the other hand, Russ, 2013 stated that “when individuals
are encouraged according to their skills, then they develop dynamic and diverse culture within
the organization” (Russ, 2013).
Setting example: According to Taormina and Gao, 2013 “leaders and managers play a vital role
in setting up examples so as followers or employees learn from them” (Taormina and Gao,
2013).
Encouraging learning new skills: As per Thielke, Harniss and Johnson, 2012 “time changes
quickly and according to change in time, technology also changes. Hence it is very essential for
the management to encourage learning skills so that they could adapt to change easily” (Thielke,
Harniss and Johnson, 2012).
Get personal: According to Petri and Govern, 2012 “in getting personal, manager should always
keep a fine line which should not be crossed” (Petri and Govern, 2012). However, Nuttin, 2014
“showing concern is very helpful in motivating employees” (Nuttin, 2014).
Informal meetings: When employees are called on for such meetings, managers get to develop a
relationship with them and this is very helpful in motivating their staff (Tamir, Bigman and
Schreier, 2015).
Providing intensives: According to Crawford, Costa-Gomes and Iriberri, 2013 “when workers
are given incentives according to their performance, then they focus on putting their full efforts
in order to improve their performance level” (Crawford, Costa-Gomes and Iriberri, 2013). This is
very helpful in boosting up of their moral and in creating positive energy.
Role of motivation in improving individual performance
According to a research done by Zahra and Nambisan, 2012 stated that “most of the
people work to get reasonable salary” (Zahra and Nambisan, 2012). On the other hand, Holstius
and Malaska, 2014 “there are employees who work for their mental satisfaction or to develop
their knowledge and understanding” (Holstius and Malaska, 2014). As per Self, Self and
Schraeder, 2015 “financial rewards are very helpful in maintaining the capacity and in
motivating employee towards enhancing their skills towards better performance” (Self, Self and
Schraeder, 2015). From this it can be determined that pay has a significant impact over
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employee's motivation. When workers are satisfied with the needs and wants, then they are very
helpful in achieving the goals and objectives of the organization (Holstius and Malaska, 2014).
. When they perform their roles and responsibilities effectively, it ultimately improves the
performance of the organization. In accordance with strategic thinking, it is very essential for
management to make plans with the help of which firm will be able to achieve their desired goals
(Self, Self and Schraeder, 2015). Further, in value management, people should be able to satisfy
their customers by providing them with all kind of quality services. With motivation workers
will be able to contribute effectively towards developing strategic plans (Nawi, Dahlan and
Nadarajan, 2015). Moreover, in increasing the value of services is only possible when motivated
employees’ worker effectively and understand their customers’ requirements and accordingly
providing them services which would satisfy them and set up a quality (Kelly, Male and Graham,
2014).
According to Tamir, Bigman and Schreier, 2015 “training is provided to employees so that
they can improve their performance level” (Tamir, Bigman and Schreier, 2015). However,
Reeve, 2014 sated that giving training would only be useful when management work on their
motivation level. Motivated employees have willingness to improve their performance level and
enhancing their skills (Pinder, 2014). When demotivated employees are given training, then it
becomes a loss for the organization as providing them with training brings out not result. In this
context, firm should first find out the employees who are demotivated and then the reason for
their de motivation should be identified (Petri and Govern, 2012). Accordingly, they should be
satisfied and then they should be given training so that it would bring them valuable change.
Thus, it can be said that motivation plays a vital role in improving the performance level and in
contributing effectively towards the betterment of the organization.
MOTIVATION AND ITS THEORIES
The term motivation is basically a theoretical construct which is used to define behaviour
of human. It describes sand explains the reason of different types of human actions, needs and
desires and it also gives the intensity and direction to the human behaviour. In management, the
motivation helps employees to increase their performance and productivity. The motivated
individuals are those who makes conscious decision and puts their efforts to achieve something
which they value (Reeve, 2014). In the process of motivation, person's efforts are energized,
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sustained and directed towards the accomplish goals. In the present time most is more
challenging task faced by the managers because if employees are not motivated then there work
will be affected and their working efficiency alsolower down. The motivated staff is more
dedicated towards their work and for this purpose they work hard in effective and efficient
manner.
There are various types of different motivational theories such as McGregor's theory,
Maslow's theory and Herzberg theory etc. among these various theories, Milestone Hotel could
implement to motivate their employees (Pinder, 2014). The few motivational theories which are
adopted by Milestone Hotel are briefly described below:
Maslow's hierarchy of needs theory
This motivation theory basically focuses on all the needs of an individual which are
generally desired by the each and every employee (Pros and Cons of Maslow’s Hierarchy,
2014). Maslow's has link human needs with motivation and arranged all needs in a pyramid form
which are as follows:
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