Analyzing Motivation Theories: A NUMMI Case Study Essay

This essay provides an in-depth analysis of the NUMMI case study, focusing on the application of various motivation theories within the organization. It examines Maslow's hierarchy of needs, job enrichment strategies, and employee empowerment practices implemented at NUMMI to enhance employee motivation and organizational performance. The essay also critiques the effectiveness of these approaches, suggesting areas for improvement, such as considering alternative reward systems and addressing individual and cultural differences. Furthermore, the essay explores the impact of empowerment on employee performance, highlighting the importance of creating a work environment that fosters innovation, autonomy, and a sense of significance. The essay concludes by emphasizing the need for organizations to continuously adapt and improve their motivational strategies to maintain a competitive edge in the dynamic business environment. This essay is a comprehensive exploration of motivation in the context of the NUMMI case study.

BUSINESS ESSAY
Student’s Name
Professor’s Name
Course
City/State
Date

Case Study Essay
Introduction
The role of human emotions and drives in employee motivation is explained by a
worker’s cognitive and emotional motivation, perceived clarity of an organization’s vision and
the worker’s specific role in that vision, the belief that the employee has the necessary resources
to get the job done, and self efficacy (Kreitner & Kinicki 2007, p. 23). A person’s drive is a
hardwired feature of the brain that makes an effort to keep him/her in balance by adjusting
deficiencies. Abraham Maslow identified human drives as the main movers of behavior given
that they tend to bring about emotions. David McClelland in his Learned Needs Theory also
suggested that a person’s specific needs are achieved over time and shaped by the individual’s
life experiences. The individual’s achievement motivation, authority/power motivation, and
affiliation motivation were identified by McClelland as factors influencing effectiveness and
motivation in particular job functions (Kotter 2007, p. 62). Looking at the case presented, it is
clear to see that NUMMI’s management implemented a few initiatives to motivate their
employees.
Question 1
Motivation theory #1: Maslow’s needs hierarchy
The reopening of the Fremont plant and application of different management practices
and philosophies may be considered a blessing to the staff. The new management aimed at
concentrating on novel ideology targeting the construction of high quality vehicles at the lowest
possible costs. This meant the involvement of employees in decision making processes, training,
job rotation, job allocations and layouts, among other work components (Mylonas, Harvey &
Hodges 2007, p. 60). According to Maslow’s hierarchy of needs theory, individuals usually have

a pyramid hierarchy of needs that they will fulfill starting at the bottom, all the way to the top.
Significant to this theory is that unsatisfied needs at the bottom of the ladder tend to deter an
individual from moving on to the next step. NUMMI’s new management was well aware of the
fact that using confrontational enforcement of rules would not be as effective in the new regime
as implementing flexibility.
Maslow’s theory identified five main needs that people have, and these are physiological,
belonging, self-esteem, self realization, and security (Huczynski & Buchanan 2013, p. 117).
NUMMI’s new motivational practices ensured that these needs are met, for instance, the use of
only skilled and non-skilled hourly workers fulfilled the employees’ physiological needs. Their
sense of belonging and feeling as part of a group was satisfied by their involvement in deciding
training, job rotation, job allocations, and work standards. Self realization and self esteem needs
of the employees are now fulfilled by the management’s encouragement to work like their name
is on the plant (Analoui 2007, p.53). The employees were also encouraged to do more than just
finishing their assigned tasks. This ensured that their need to progress, develop and feel good
about themselves was catered for.
Effective managers and leaders are able to acknowledge the fact that individuals are
different. To have this level of understanding means that the management is better able to
motivate its staff. The NUMMI management system recognized that some of the employees
come to work to earn cash and actually have not desire to get along with their colleagues or
move to higher positions within the organization (Biron & Bamberger 2010, p. 186). Other
employees work to gain experience and get promoted while some work to meet individuals and
have personal challenges combined with a sense of attainment. The management also
acknowledges that some employees report to work due to a combination of all these reasons.

That is why the novel management system aims at establishing a safe and good workplace
environment and treating the workers as individuals.
To motivate employees having relatedness needs, that is those who find it hard to get
along with their colleagues, the NUMMI management aims at not only showing respect and
giving recognition by awarding bonuses based on safety, productivity improvement and safety,
but also involve the workers in decision making (Giri & Santra 2008, 61). Notably, a firm
organization that has clear responsibilities generally provides security. NUMMI’s management
has shown its staff that the senior executives now have lower need for social approval, and this
has been exhibited through their open office plan and eating at the same cafeteria. The newly
reopened plant has realized that application of Maslow’s hierarchy needs theory allows it to
ensure that the organizational structure motivates employees to reaching their full potential.
Motivation theory #2: Job enrichment
Job enrichment simply means the vertical expansion of jobs within a given organization.
This usually increases the level to which the employee controls the execution, planning, and
assessment of work (Kumar 2008, n.p.). Enriched jobs arrange tasks so as to allow the
employees to do a full activity, something which increases the worker’s autonomy and liberty,
job responsibility and provides the necessary feedback. At NUMMI, job enrichment is all about
giving employees more obligations for planning, coordinating and scheduling their own work.
As already indicated, the new management system that has been put in place at the plant ensures
that workers are involved in job allocations, training, job rotation, and work standards. Job
rotation will allow workers to perform different varieties of jobs.
Implementation of participative management will allow the workers to engage in
strategic planning and decision making processes. Furthermore, provision of feedback will allow

them to determine how well or poor they are performing their tasks. The newly revamped
NUMMI has discovered that job enrichment is so far providing more interesting and stimulating
work to its staff that adds challenge and variety to a worker’s day to day routine (Priyadarshini
2009, 70). As a result, the depth of the job is increased and individuals can have more control
over their work. This is best illustrated by the new management philosophy where there are no
time clocks, only self report time sheets (Unknown author 2013, p. 44). Line workers now have
the right and duty to close down their portion of the production line to resolve any operation or
quality issues that may arise.
When keeping in mind organizational behavior and motivational theories, job enrichment
influence on employee motivation is achieved through addition to the quality of tasks instead of
their quantity. It is also achieved through the transformation of the work profile through
behavioral interventions, rather than technical interventions affected by job enlargement
(Mylonas, Harvey & Hodges 2007, p. 81). According to McClelland’s theory of needs, job
enrichment provides employees with a chance to take up top levels of duties and tasks, thereby
satisfying their needs of power, affiliation, and attainment. At NUMMI, workers are officially
acknowledged for their commitment and ideas, whether improving production, safety,
attendance, or quality. To deepen its staff’s knowledge through benefits or initiatives that
encourage recognition, advancement, achievement, and responsibility ensures a more productive
workforce.
Motivation theory #3: Empowerment practices
Employee empowerment practices have been embraced at the newly reopened NUMMI
in an effort to improve organizational performance. The current business setting is oriented
towards effectiveness and business process reengineering as much emphasis is put on

performance improvement as a way of increasing such efficiency (Huczynski & Buchanchan
2013, p. 120). Employee empowerment simply means giving workers the authority to make their
voices heard to contribute towards decisions and plans affecting them, and to utilize their skills
to work towards improving their performance and that of the organization as a whole.
Empowerment usually incorporates giving workers the responsibility for hands-on service or
production activities and the independence to take action or make decisions without prior
approval (Meyerson & Dewettinck 2012, p. 22).
Under the new NUMMI management system, a no-fault attendance system has been put
in place where workers are not questioned for absence and no external documentation is
required. However, necessary action for termination to take place is taken if the staff is absent
more than usual. These empowerment practices aim at improving employee performance due to
the chances it provides for workers to work more efficiently. Furthermore, they make NUMMI
employees to feel they have liberty and discretion, in addition to believing their work to be of
great significance. The workers also have feelings of self efficacy and feel that their behavior
eventually influences organizational success (Biron & Bamberger 2010, p. 191.). The new
management has observed that by empowering employees through the organizational structure,
every one of them will have the authority to be more innovative, ensuring that their performance
is good if not the best.
Question 2
Stop Doing: Maslow’s needs hierarchy
Maslow’s hierarchy of needs theory is considered by many organizations today, including
NUMMI, to be a valuable approach of thinking about employee incentives and motivation while
determining qualitative differences and similarities among them (Rastergar, Mahmoodian &

Alimadadi 2013, p. 674). Notably, Maslow only considered a small portion of the human
population. This means that terms such as security and self esteem have quite diverse groupings
in cultures across the globe. Furthermore, the expectations of this particular theory are most
probably limited to western cultures. That is why NUMMI’s management should stop
implementing the Maslow’s hierarchy of needs theory and consider a more suitable and
applicable one, such as Adam’s Equity theory. The theory advocates for a just balance between a
worker’s inputs and outputs. To do so would mean ensuring that a firm and productive
relationship is attained with the worker, and the total outcome being motivated, satisfied
workers.
As other organizations have observed, it is possible for some employees to be deprived of
their lower level needs but still manage to strive for self actualization needs (Gupta & Shaw
2014, p. 4). Interestingly, Maslow’s description of self actualization and how self actualized
individuals acted and felt were generally founded on writing and speaking with selectively
chosen individuals, rather than thorough sampling. Therefore, NUMMI’s management should
stop focusing solely on self actualization of their workers, and start acknowledging individual
and cultural differences.
Start Doing: Types of rewards in workplace – task performance
According to the case study presented, NUMMI awards bonuses to all workers depending
on productivity, quality, and safety improvements. Incentives and rewards in any given
workplace have great advantages for both employers and workers. There are different types of
rewards that are being implemented in today’s organizations, for instance, profit sharing plans,
paid time off, bonuses, and employee stock alternatives (Bass 2008, p. 101). Monetary rewards
are what NUMMI is using to encourage friendly competition between employees in terms of task

performance. The other type of reward that is being employed in this particular organization is
non-monetary, such as training opportunities, the ability to work autonomously, and flexible
work hours.
Though NUMMI’s new management system aims at promoting a sense of equity and
treating workers with dignity, it has not yet implemented other forms of rewards to improve
employee performance. Therefore, the organization’s management should consider introducing
employee recognition as a form of reward. This largely satisfies the psychological desires and
needs of workers. Incentives such as ‘employee of the year’ certificates are effective in boosting
employee morale as workers are acknowledged for their outstanding efforts (Unknown author
2013, p. 45). Appreciative feedback from managers and team leaders tend to serve as employee
recognition, boosting morale in the process. NUMMI should therefore keep its workers’ needs
and desires in mind when planning the organization’s reward system.
Do Better: Empowerment practices
Similar to any new organization, NUMMI also needs to improve on its organizational
performance so as to maintain a competitive edge in today’s rapidly changing and harsh business
environment. Contemporary organizations are now aware of the worth of empowered workers
and are actively striving to structurally increase employee empowerment (Mylonas, Harvey &
Hodges 2007, p. 83). As already indicated, empowering employees or organizational staff
usually encourages more capable, motivated, and confident workers. Furthermore, empowerment
results in better performance and higher operational effectiveness. NUMMI has already put in
place a number of empowerment practices to ensure job feedback, autonomy, task significance
and consideration of individual factors such as ability to carry out the tasks.

When delegating responsibility over to its staff, NUMMI’s management should consider
diversifying authority, which would in turn create more voices, and potentially more dialogue
and conflict. These elements tend to slow down the decision making process. Therefore, the
organization’s management needs to put in place protocols that will alleviate failure and improve
decision making effectiveness (Huczynski & Buchanchan 2013, p. 124). More importantly, team
leaders need to have confidence in their teams. They should also set goals that inspire
employees.
Conclusion
The case study presented is a good example of how today’s organizations are making an
effort to motivate their employees. The paper has discussed the application of motivation
theories and how they assist managers to understand what exactly drives individual behavior.
Employee empowerment and job enrichment practices have also been highlighted as
motivational approaches that organizations such as NUMMI use. Employee empowerment is the
key driver of organizational performance. As stated, money tends to play a significant role in
motivating individuals up to a certain level, though other intrinsic motivators are also effective in
transforming these behaviors.

References
Analoui, F 2007, Strategic human resource management, Thomson Learning, UK.
Bass, BM 2008, The Bass handbook of leadership: Theory, research, and managerial
applications, 4th edition, Simon & Schuster, New York, NY.
Biron & Bamberger, P 2010, ‘The impact of structural empowerment on individual wellbeing
and performance: Taking agent preferences, self-efficacy and operational constraints into
account,’ Human Relations, 63(2), pp. 163 – 191.
Giri, NV & Santra, T 2008, ‘Analysing the association of leadership style, face-to-face
communication, and organizational effectiveness,’ Management and Labor Studies, 33(1), pp. 53
– 63.
Gupta, N & Shaw, J 2014, ‘Employee compensation: The neglected area of HRM research,’
Human Resource Management Review, 24(1), pp. 1 – 4.
Huczynski, A & Buchanan, D 2013, Organizational behavior, 8th edition, Pearson Education
Limited, New York.
Kotter, JP 2007, ‘Leading change – Why transformation efforts fail,’ Harvard Business Review,
73(2), pp. 59 – 67.
Kreitner, R & Kinicki, A 2007, Organizational behavior, McGraw-Hill Irwin, Boston.
Kumar, K 2008, ‘Recruitments in companies: Changing times,’ HRM Review.
Meyerson, G & Dewettinck, B 2012, ‘Effect of empowerment on employees performance,’
Journal of Mgt Studies, Vol. 2.
Mylonas, A, Harvey, J & Hodges, J 2007, Business organization and management for
Queensland, Macmillan Education Australia, South Yarra, Vic.

Priyadarshini, GR 2009, ‘Importance of role efficacy and self efficacy in organization and its
relationship with human resource practices,’ Management and Labor Studies, 34(1), pp. 57 – 72.
Rastegar, AA, Mahmoodian, M & Alimadadi A2013, ‘Studying and identifying affecting factors
on employees’ empowerment,’ Journal of Behavioral App Sci. Res., 3(2), pp. 666 – 674.
Unknown Author 2013, ‘Application of the Maslow’s hierarchy of need theory: Impacts and
implications on organizational culture, human resource and employee’s performance,’
International Journal of Business and Management Invention, 2(3), pp. 39 – 45.