The Impact of Labor Management on Employee Motivation and Productivity

This essay delves into the critical aspects of labor management and employee motivation, emphasizing the significant consequences organizations face when they choose to either motivate or neglect their workforce. It examines various motivational theories, including Expectancy theory, Maslow's hierarchy of needs, McClelland's acquired needs theory, equity theory, and job enrichment theory, illustrating their practical applications through case studies like NUMMI. The essay explores the distinctions between extrinsic and intrinsic motivation, financial and non-financial motivators, and the importance of employee compensation and training programs. It highlights the impact of employee turnover, job dissatisfaction, and the role of management in fostering a positive and productive work environment. Ultimately, the essay underscores the importance of creating a motivated workforce through strategic compensation, training, and a supportive workplace to achieve organizational goals and enhance productivity.

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Introduction
Firms that ignore motivation of the workforce have ultimately paid the price. The
companies that ensure effectiveness in the organization by adopting motivations programs have
paid off handsomely. Workers with different levels of the motivation and similar abilities would
not necessarily produce the same outputs (Bratton and Gold 2012). Demotivated employees
hinder the achievement of the goals. Thus, the leaders should ensure all the staffs are motivated
to meet the organizational goals. The job of the leaders in the workplace is to get work done
through the workforce. To achieve that, the managers should motivate the employees.
Motivations theory and practice are different and putting them into practice fails the
management. Human nature can be very complex, yet elementary. Achievement of the effective
leadership and management through effective motivation of the employees is vital (Gagné 2014).
Motivations can be extrinsic or intrinsic. Extrinsic motivation comes from outside forces
including the rewards, money and individuals close to us. Extrinsic motivation has a strong effect
on the workers, but it will not last long. Intrinsic motivation includes the personal morals,
happiness, eagerness to learn, social and self-esteem needs. Monetary motivation comprises
commission, fame, money, incentives, bonuses and recognition (Schunk and Zimmerman 2012).
Non-financial motivators include a sense of achievement, responsibility, pride, challenge, belief
and impressive job (Miner 2015). The most significant importance of the motivation is the
increased productivity. Therefore, this essay will look into great details the consequences
organizations face when they decide to motivate or not to motivate its workforce.

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Numerous motivation theories have been put forth including Expectancy theory which
focuses on which particular behaviors to perform and the effort to apply. For the NUMMI (New
United Motor Manufacturing, Inc. (NUMMI – pronounce “new me”), Company to increase P to
O expectancies, the employee gets bonuses and reward depending on the safety, quality and
production improvement (Adler and Cole 1995). Additionally, the company believes that
employee’s performance is directly proportional to the rewards he or she gets. Building on the
same point, company encourages the job rotation for the new hires irrespective of the academic
or experience from the previous company. Consequently, the company can develop and match
the employee's competencies, thereby increasing E to P expectancies. Henceforth, organizations
should emphasize on the motivation, but this is not the case. It is because some companies
neither have resources nor time to do so or they choose to ignore it deliberately.
According to the Maslow’s, employees have to satisfy the needs from the bottoms to the
top one. Maslow gave the hierarchy of human needs based on growth and deficiency needs
(Bratton and Gold 2012). In the case of the NUMMI, it is the responsibilities of the leaders to
understand employee’s requirements in the social and private life but not just their attitude
towards work (OHNO 2014). There is no timeframe in the Maslow theory for the satisfaction of
the lower and occurrence of higher level needs. There are numerous ways in which employee
seeks the comfort, for instance, the esteem needs. It is because people have different motivation
factors within the same level of the Maslow hierarchy (Miner 2015). At the NUMMI, there is no
external documentation such as physician note. Additionally, the system in place does not
question the employee absence (Klier and Rubenstein 2010). Most importantly, management
makes an effort to help its employees with the personal problems that may cause attendances
issues which comprise the basic needs.

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McClelland reasons that motivation comes from life experiences and development of
wants through the life including needs for affiliation, achievement and power (Bratton and Gold
2012). The theory states that people with strong affiliation have a high desire to assume personal
duties for performing work; likely to set challenging goals and a strong desire for performance
feedback. A person with affiliation tend to have little position power, tries to avoid conflict and
confrontation, and so a high need to work through interpersonal relationship (Miner 2015). To
ensure proper relation at NUMMI, manager ensures there is a sense of equity and makes sure
voluntarily workers wear the same uniforms, and also eat at the same cafeteria. Successful
organizations such as Facebook, Mark Zuckerberg ensures that there is open office operation to
promote social cohesion. Managers of NUMMI ensure there is open office environment where
an employee sits behind a walled-in office. Finally, Toyota advice Gary to manage as if he had
no power; without command and control
The acquired need theory is beneficial for the managers in the NUMMI. The company
was able to pick due to the higher achievement through the prospect of achieving satisfaction but
not the monetary value. Thus, NUMMI management can assign work and responsibilities, and
design compensation structure. The theory is used to determine the best ‘employee-job fit. For
instance, the managers of the NUMMI with strong affiliation will work effectively in the client
relationship management as a conflict mediator (LIKER and CONVIS 2012). As in the NUMMI,
the concept of the power is useful since it can help in the decision-making management
concerning the promotion of the personnel (Miner 2015). Hence, the idea of the power and needs
should be primary in the staff consideration in the company alongside persons who plan on
pursuing a successful career.

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Equity theory argues about situations when persons compare the result-input ration of their work
to that of the other individuals. The theory is essential when predicting the turnover and absence
behaviors, in conjunction with foreseeing the productivity of the employee (Bratton and Gold
2012). The people to whom individuals can compare themselves may belong to the outside or
inside the firm. Equity theory suggests that the rewards systems affect the levels of the
motivation. Monetary values do not have a significant effect on the motivation. Positive
feedback and job satisfaction contribute hugely to the employee motivation.
According to the job enrichment theory, five dimensions will motivate employees to
work efficiently. The features include skill variety, task identity, task significance, autonomy and
feedback from the job itself (Miner 2015). Job rotation is a management approach where the
workers shift between two or more jobs at a regular interval to expose them to all the aspect of
the organization activities. Employees of the NUMMI decide the working conditions, job
allocation and layouts, and vocational training. For that reason, there is an elimination of the
expert job classification (Adler 1995). The importance of the job rotation is to test the
employee’s competencies and skills to place him or her at the suitable position.
Lots of money, resources and time are essentials when training workers for a certain job,
and when he leaves, there is a null return on the investment (Miner 2015). Employees with lower
performance do their task better when money act as an incentive. As the hierarchy of the
organization increases, employees will not exit the company because of the money, but when
they find their job uninteresting. Job enrichment is one of the ways that keeps the monotony of
the work at bay. It is one of the methods that keep the jobs more enjoyable, satisfying and
challenging for the employees (Gagné 2014). Managers will combine the new tasks and various
existing tasks into a large volume of work. The employees’ scope and responsibilities increase

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when the managers assign work to an employee. Similarly, expanding the functions relieves the
unnecessary burden from the senior management. Job enrichment opens the feedback channels
of the workers since the employee's appraisal depends on their performance.
An unmotivated employee means there is some dissatisfaction in her or his relationship to
the environment (Miner 2015). Currently, workers are happy to find the balance in the family life
and work. As the rate of job dissatisfaction to employee increases, it will result in the adverse
effects to the organization performance. Turnovers will affect the financial status and
performance of the organization. Both direct and indirect cost consist turnover. Indirect costs
comprise the reduced productivity of low motivated workers, overtime expenses and increased
workloads. In another hand, direct costs include recruitment, selection and training of the new
employees. Top management of the NUMMI, act as a motivator to lighten their employees’
passions and purpose in the achieving the goals of an organization. Additionally, NUMMI
creates a positive working environment in the firm. The company increases the employee
motivation by ensuring free working atmosphere; there are no time clocks (Fantazy, Kumar and
Kumar 2011). Employee’s turnovers can decrease the profitability and productivity of an
organization. Employees should feel their work is beneficial and meaningful to their
organization.
Employee’s compensation means all the work-related rewards or pays that go to the
workers. It comprises all the indirect payment such as employers-paid vacations and insurance,
and direct financial payments (Latham 2012). At present, employers are looking for the jobs that
provide the compensation and incentives benefits. Hence, the rise in the job dissatisfactions is
due to the small employee compensation. To reduce the job dissatisfaction, Gary ensures there is

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bonus offered to each employee according to their performance. Also, managers provide basic
need of each worker so as work output to be better (Fantazy, Kumar and Kumar 2011).
For the organization to change the employee performance, they need to introduce the
strategic compensation program. Programs include the bonus and gain-sharing, long-term
incentives, benefits plans relating to the health and welfare issues of the employees and finally
non-cash rewards incentives (Latham 2012). Similarly, the firms can increase employee
motivation when it offers standardized benefit packages such as investment and retirement plans,
health and life insurance, leave and vacation policies.
Also, the responsibility at NUMMI provides that company appreciates what employee
does for the enterprise. For instance, a team of the mechanics does installations of the seats in
case there is the breakdown of the robot which is responsible for the facility. Moreover, an
installation of an Andon system gives every worker in the line rights and responsibilities to shut
down equipment in case of the technical hitches (Turner 2011). NUMMI can determine the
needs of employees and try to create programs such as fitness memberships. The programs will
assist the company to build messages of the organization values and culture. Development and
training program is useful in the workplace in improving the performance. Employees can grow
in the current position which encourages employee’s retention and builds loyalty (De Dreu and
Gelfand 2008). Gary promotes and emphasizes the management philosophy of the human
relations, shared responsibility and empowerment of its workforce. Similarly, there is an attitude
of the mutual trust which forms the basis of the work relationships.
There are two methods of employee training: on-the-job and off-job training. On-the-job
training is adequate most for the vocational work. Standard working situation includes coaching,

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demonstration and projects. Additionally, it is best methods as involves planning, organizing and
conducting at the workplace (Hislop 2013). On-job is important in broadening employee skills
and developing proficiency, and increasing productivity. An organization that provides on-the-
job training program will have high productivity, morale and professionalism. Off-the job
training, the workers are not productive when training is taking place since it takes place away
from the regular working hours (Latham 2012). The off-the job training can be in the form of
sponsored courses in computer-based training or revision courses. The main advantages are that
workers can concentrate on the training since it happens away from the way. Thus, off-the-job is
the most effective method for training ideas and concept. Moreover, firms will acquire benefits
from developing and training its workforce which consist reduced employee turnover, increase in
efficiency which results to decreased need for supervision, growth in productivity and financial
gains (Schunk and Zimmerman 2012). NUMMI makes sure each employee acquire appropriate
skills in all departments irrespective of the job classification.
Conclusion
Apparently, the organization should inspire all the staff members through reward plan,
enjoyable working place and training. NUMMI should enhance their employee’s productivity
through motivational techniques. Consequently, general motors will be able to expand both
locally and internationally markets in their business operational. Enjoyable place of work is the
best hub for the workers to achieve their target and ambitions. Employee’s dissatisfaction
typically comes from the lack of rewards plan. The rewards plans include monetary and non-
monetary rewards. Non-monetary rewards consist of the physical conditions warranties, holidays
and withdrawal schemes. Similarly, an introduction of learning programs at NUMMI will inspire
workers to continue to progress in their duties, which in turns help the employee will keep the

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current job and enhance faithfulness. Finally, it helps new hires to look and recognize for the
profession chances.

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