Competitive Advantage: Analysis of Motivational Theories and Rewards

This report analyzes motivational theories, focusing on Fredrick Hertzberg's dual-factor theory, and its implications for achieving competitive advantage within organizations. The paper begins with an executive summary and an introduction that outlines the report's purpose, which is to explore the relationship between employee motivation, job satisfaction, and organizational performance. The report then delves into a literature review, examining multi-perspective strategic performance management systems (SPMS) and various motivational theories, with a particular emphasis on Hertzberg's theory and its application in the workplace. The core argument revolves around how both motivators and hygiene factors influence employee behavior and, consequently, organizational success. The report further examines the role of reward systems in enhancing employee motivation and driving improved performance. Furthermore, the report includes an analysis of real-world examples by discussing the SPMS implementation in Commonwealth Bank and AGL, linking their performance to reward and compensation plans. The report concludes with a discussion on the financial and non-financial performance of the companies, highlighting the connections between employee rewards, compensation strategies, and strategic performance measurement systems. The references include various research papers on the topic.

Running head: COMPETITIVE ADVANTAGE – MOTIVATIONAL THEORIES
ANALYSIS FOR COMPETITIVE ADVANTAGE – MOTIVATIONAL THEORIES
Name of the Student
Name of the University
Author Note

1ANALYSIS FOR COMPETITIVE ADVANTAGE – MOTIVATIONAL THEORIES
EXECUTIVE SUMMARY
The following paper attempted to shed light on the various measures in terms of the social
conditions, the environmental conditions and the sustainability within the given organization as
is maintained through the multi-perspective strategic performance management systems or the
SPMS as is maintained within the organization. The paper opened with a discussion on the
reviewing of the existing literature on the multi-perspective strategic performance management
systems or the SPMS and the experience as have been documented by the companies in the
matters that are related to the adoption of the strategic performance management systems or the
SPMS. The paper proceeded to discuss the motivational theory that was proposed by Fredrick
Hertzberg. The theory suggested that the job satisfaction and the motivation of the employees of
the organizational workforce tends to affect the overall performance of the organization in the
given workforce. The study revealed that both the satisfaction as well as the dissatisfaction
factors tend to deal with influencing the employees in the providing the overall development in
the performance of the organization. The rewards systems within the organization provide the
existing employees serving the organization with a proper motivation in the attainment of the set
goals. This in turn assist the increase in the competitive advantage of the company through the
development of the organizational performance as well. The paper thereafter proceeded to
attempt a discussion on the issues that are highlighted in the operations of Commonwealth Bank
and AGL in terms of the multi-perspective strategic performance management systems or the
SPMS. This was completed with the help of the reports that are publicly available for both the
companies. The report concluded with the discussion on the financial and the non-financial
performances of the companies in discussion during the fiscal year of 2017-18. The paper further

2ANALYSIS FOR COMPETITIVE ADVANTAGE – MOTIVATIONAL THEORIES
highlighted the relations that are maintained within the rewards and the compensation plans of
the employees and the strategic performance measurement system.

3ANALYSIS FOR COMPETITIVE ADVANTAGE – MOTIVATIONAL THEORIES
Hertzberg Dual factor motivational theory
Herzberg (2017) states that the dual-factor theory of motivation is one of the significant
theories that is used to motivate the organizational workforce at the multitude of the
organizations that are active in the international markets. The theory suggested that the job
satisfaction and the motivation of the employees of the organizational workforce tends to affect
the overall performance of the organization in the given workforce. The majority of the
organizations that have been present within the international markets implement the motivational
factors that are highlighted in this theory in order to deal in the matters that are related to the
increment in the overall development of the concerned organization within the given markets.
Ogbo, Anthony and Kosisochukwu (2017) states that the organizational workforce needs to be
motivated with the implementation of the motivators as well as the hygiene factors. Velmurugan
and Sankar (2017) further state that both the satisfaction as well as the dissatisfaction factors
tend to deal with influencing the employees in the providing the overall development in the
performance of the organization. The theory as proposed by Hertzberg states that the motivators
or the satisfaction factors are not the polar opposites of the hygiene factors or the dissatisfaction
factors. Kotni and Karumuri (2018) opine that the eradication of the dissatisfaction on the part of
the employees of the organization does not generally bring forth the satisfaction of the concerned
employee. The motivators as have been highlighted in the given model refers to the factors like
the growth opportunities, job status, job recognition, employee performance and the job
responsibility on the part of the employees. The hygiene factors as are implemented within the
organizational workforce refer to the fact that the financial remunerations, workplace conditions,
communication within the organization, proper maintenance of the relationships between the
various organizational employees serving at the various hierarchical positions within the

4ANALYSIS FOR COMPETITIVE ADVANTAGE – MOTIVATIONAL THEORIES
company as well. The employees of the workforce tend to be motivated with the help of the
various factors that are presented within the given organizational setup as well.
Reward system and motivation
One of the major factors that help in the overall development of the organizational
performance within the given workforce refer to the motivational factors that need to
implemented within the organization. Sanjeev and Surya (2016) opine that the majority of the
organizations that have been present within the international markets implement the motivational
factors in order to deal in the matters that are related to the increment in the overall development
of the concerned organization within the given markets. The motivators as opined by Ataliç, Can
and Cantürk (2016), refers to the factors like the growth opportunities, job status, job
recognition, employee performance and the job responsibility on the part of the employees. The
hygiene factors as stated by Chiat and Panatik (2019) refer to the fact that the financial
remunerations, workplace conditions, communication within the organization, proper
maintenance of the relationships between the various organizational employees serving at the
various hierarchical positions within the company as well. The major benefits of the
implementation of the reward systems within the organization helps in providing a proper
motivation to the employees of the organization. The major types of motivators as have been
highlighted in the researches by Matthews, Daigle and Houston (2018) refer to the increase in the
remuneration of the employees, the increase in the job roles that are provided to the employees,
the recognition of the contribution of the employee towards the organizational performance, the
internal promotion of the concerned employee to the higher ranks in the organizational hierarchy.
The proper amount of the rewards that are provided to the employees tend to help in the overall
development of the organizational performance within the given organization as well. The proper

5ANALYSIS FOR COMPETITIVE ADVANTAGE – MOTIVATIONAL THEORIES
implementation of the rewards system within the organization helps in the overall development
of the issues that are highlighted within the workforce in terms of the achievement of the mission
and the goals that have been set by the organizational management. The majority of the rewards
systems that are highlighted within the organization helps in providing the existing employees
serving the organization with a proper motivation in the attainment of the set goals. This in turn
helps in the overall progress of the given organization in the international markets.

6ANALYSIS FOR COMPETITIVE ADVANTAGE – MOTIVATIONAL THEORIES
References
Ataliç, H., Can, A. and Cantürk, N., 2016. Herzberg's motivation-hygiene theory applied to high
school teachers in Turkey. European Journal of Multidisciplinary Studies, 1(4), pp.90-97.
Chiat, L.C. and Panatik, S.A., 2019. Perceptions of Employee Turnover Intention by Herzberg’s
Motivation-Hygiene Theory: A Systematic Literature Review. Journal of Research in
Psychology, 1(2), pp.10-15.
Herzberg, F., 2017. Motivation to work. Routledge.
Kotni, V.D.P. and Karumuri, V., 2018. Application of Herzberg two-factor theory model for
motivating retail salesforce. IUP Journal of Organizational Behavior, 17(1), pp.24-42.
Matthews, B., Daigle, J. and Houston, M., 2018. A dyadic of employee readiness and job
satisfaction: does there exist a theoretical precursor to the satisfaction-performance
paradigm?. International Journal of Organizational Analysis, 26(5), pp.842-857.
Ogbo, A., Anthony, K.A. and Kosisochukwu, O., 2017. An assessment of hygiene maintenance
factors effect on employees productivity in Nigerian telecommunication industry. International
research journal of management, IT and social sciences, 4(1), pp.61-70.
Sanjeev, M.A. and Surya, A.V., 2016. Two factor theory of motivation and satisfaction: An
empirical verification. Annals of Data Science, 3(2), pp.155-173.
Velmurugan, T.A. and Sankar, J.G., 2017. A Comparative Study on Motivation Theory with
Maslow’s Hierarchy theory and Two-factor theory in Organization. Indo-Iranian J Sci Res, 1(1),
pp.204-8.