A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
Human Resource Management
“A new model to motivate employees: Analysis and contextualization” Abstract The following report’s purpose is to conduct a deep and critical analysis about a new model for motivating employees. The starting point is the article “Employees motivation: a powerful new model” by Nitin-Nohria, Boris Groysberg and Linda-Eling Lee published in the Harvard Business Review, July-August 2008. The motivational model is presented in all its parts. We start from the model’s theoretical background that is given by the four drivers’ theory; afterwards we have the instruments to analyze the practical model’s results. Such results are the actions that human resource managers have to take in order to have a motivated workforce. Thus a lot of attention is given to the managerial implications from the point of view of human resource management practices. After this analysis we will find that the new model can be really effective in fostering employees’ motivation. We will see how and why the case study “3M” is the evidence of such a statement.
Stocco Giulia 832396
A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
Introduction “Work motivation is the psychological forces within a person that determine the: direction of a person’s behavior, a person’s level of effort, a person’s level of persistence in face of obstacles” 1 Even if generally we do not pay attention to that, the motivational matter is continuously present in our daily actions; which things we decide to carry out, how much effort we put in doing them and how we react in the case of a problem; all this concerns the motivational area. Motivation leads a person’s behavior in taking an action determining the consequent result and performance. Two types of motivation can be explained: intrinsic and extrinsic motivation. We speak about intrinsic motivation when a person performs a behavior just for the pleasure to do it without expecting nothing else than the personal satisfaction, while extrinsic motivation is much different; extrinsic motivation pushes a person to perform a behavior because the only purpose is to gain something that is not the personal satisfaction, rather a reward in form of a salary or social acknowledgement; sometimes the purpose is not to gain something but to avoid something, a punishment for instance so that a person behaves in a certain way not because she/he wants but because she/he must. It is important to stress that the main difference lies in the idea behind performing a behavior; to this end an example can be useful. A climber sustains so much effort to reach the peak of a mountain because it is a personal challenge; when she/he will be at the top the satisfaction will be huge. Obviously if the consequence of such feat is social acknowledgment she/he will not deny it, but the motivator of such an action is not the latter. After this brief general introduction, we shifts our attention to the organizational context. In a globalized economy, where competition is fierce, each company has to survive. It has to gain clients, to sell its products/services, it has to gain success and overstate its competitors. But where does this success come from? The success of a company is determined by the people working in it; workers have to perform correctly their tasks, they have to provide new ideas, but to do that they have to be motivated! Here motivation comes into play as one of the main factors, together with competences and resources, to ensure the survival and the success of an organization. At this point two questions arise: Why employees are not spontaneously motivated? Why does the organization need some tools to push their motivation? The answer is that many times the individual worker’s goals are not the same goals of the organization; choices that the worker perceives as optimal to maximize his/her personal return can damage the return of the organization as a whole. The solution of such a problem is provided later in the report. Since several years theories of motivation are formulated and exploited by organizations. To this end in this paper a new model for motivating employees is be presented. The starting point of the analysis is the article “ Employee motivation, a powerful new model” by Nitin Nohria, Boris Groysberg and Linda-Eling Lee published in the Harvard Business Review, July-August 2008. The contents will follow this precise structure: 1) 2) 3) 4) 5)
1
Description of the HBR article’s research problem By following the article’s structure key points are described and discussed Discussion about the article’s results: managerial implication for the HRM department Considerations about the effectiveness of the model through the analysis of the case study “3M” Final considerations and conclusions
L.R. Gomez-Mejia, D.B. Balkin, R.L. Cardy, Managing Human Resources, 2010
2
A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
HBR article’ research problem The problem pushing this new model’s research is basically one; indeed in the past several famous history’s thinkers, like Aristotle, Adam Smith, Sigmund Freud and Abraham Maslow, provided through their studies important motivational theories explaining what leads people to perform some actions rather than others; but what they did not have at their disposal were the scientific results coming from modern brain studies. Such studies, even if their contribution to the modern science is undeniable, were based just on direct observation and this was in a certain sense a limit; as the article’s authors write: “Imagine trying to infer how a car works by examining its movements (starting, stopping, accelerating, turning) without being able to take apart the engine”. 1 Here the key point is not to find a theory per se, rather a theory together with its practical results; thus a detailed new motivational model is provided. A fundamental source for the article’s drafting is the book “ Driven: How Human Nature Shapes Our Choices” written by Paul. R. Lawrence and Nithin Nohria in 2002. This is not a coincidence! Indeed Lawrence and Nohria are not two psychologists but two Harvard’s professors of organizational behavior. In their book, even if contents regarding the psychology area are present, they unrelentingly stress the importance to conducts human behavior studies not in the laboratory, rather in the workplace recognized as the ideal place for such purposes. Indeed the human being can be understood only inside a social context and the workplace embodies this feature. In this way human behavior can be explained and subsequently motivators can be found. This also explains why studies of thinkers previously mentioned had some drawbacks. Those studies have also some limits when applied in modern organizations, not only because exclusively based on direct observations, but also because during the years the way in which social group form has changed.
HBR article’s structure: key points Reading and analyzing the article two main parts emerge. The first one focuses on the identification of four drivers which lie behind human actions and behaviors, thus behind motivation; in this first section a theoretical motivational model is provided. Instead in the second part the focus shifts to the practical issue, that is the role of the human resource manager. A lot of attention is given to the actions that such managers must take in order to satisfy the four drivers, thus succeeding in motivating their employees. The theoretical background Thanks to the contribution of modern science, together with studies in the psychological and evolutionary field, scientists and professors are now able to see the mechanisms working into the human brain, thus four motivational drivers are recognized. What is more interesting is that drivers are emotional needs. They are continuously present in our daily life; thus they can be applied to every context where human actions come into play. However this paper’ focus is on how such drivers manifest themselves inside the organizational context.
1
N.Nohria, B.Groysberg, L.E.Lee, “Employee Motivation. A powerfull new model” HBR 2008
3
A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
Here below a table providing a description for each driver: Drive’s name Drive to acquire
Drive to bond Drive to comprehend Drive to defend
Drive’s implications - Acquisition of goods, both tangible (goods) and intangible (experiences) - It is relative (comparisons between what we have and what the others possess) and insatiable - Social grouping - Creation of communities - Comprehension and formulation of answers explaining what surrounds us - Defense of property and results
The drive to acquire represents the worker’s need to gain both tangible and intangible rewards. Tangible reward concerns physical wealth, thus money compensation. Receiving a salary is one of the main motivators that pushes a person to accomplish a particular work; it is linked to the idea of survival of the worker but also of his/her family if exists. Most of times each worker compares its own compensation with others’ compensation; this is the relativity of the drive to acquire. Intangible reward is linked to the idea of social status inside the workplace. Gaining a new upper position inside the organization’s hierarchy, thus more power, represents this kind of intangible acquisition. The drive to bond represents the worker’s need to be recognized and cared by other employees. Sensations of anonymity and betrayal by the institution is a strong negative factor on motivation. The drive to comprehend has two main dimensions. The first dimension is wider, representing the worker’s need to understand his/her role inside the firm. The second one is more detailed, regarding the worker’s need to conduct a meaningful work, through the proposal of new ideas and the finding of solutions to challenges that one can encounter during his/her working career. If such drive is not met, as the worker is not able to find out answers to problems, the negative consequence on the motivational score is huge. The drive to defend, like the drive to comprehend, has two main dimensions. The first one represent the worker’s need to defend himself/herself, his/her group and the organization as a whole against external threats; a clarifying example of what most of times is perceived as a threat is the possibility of mergers and acquisitions. In general these are a good opportunity for one company but not for the other, the one that has to adopt a new way to operate, thus changing structure, strategy and culture. The drive to defend is also associate with efforts in the creation of institutions which promote justice, allowing workers to express personal opinions and ideas. After this drivers’ description, an important thing must be noticed. Indeed the drive to defend presents an important difference, in its first dimension, compared with the others; this particular drive comes into play only when an actual threat arises, otherwise it does not appear. Instead other drivers are always present, in the sense that workers continuously try to fulfill them.
4
A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
Theoretical background’s results There is a fundamental result derived at this point in the article: drivers are real motivators and they must be fulfilled simultaneously. Indeed drivers are strongly interconnected, but they are independent. Fulfilling a driver does not mean to satisfy the others; thus they cannot be thought as substitutes as well as they cannot be ordered hierarchically. Main article’s result: the managerial implications from the point of view of HRM practices There are now the basis to shift to the second part of the paper, that is understanding how human resource managers operate with such a theoretical background. But before going into the details, an overview of the human resource manager’s role is necessary. “ Human resource management is the administrative discipline of hiring and developing employees so that they become more valuable to the organization”.1 Hiring and developing are the two key words inside this definition; indeed they embody the several different functions of the human resource manager.
Human Resource Manager
Functions Hiring and selection of employees Compensation and performance management Organization development Safety and wellness of employees Benefits management Employees motivation Communication, administration and training
As the table shows, the role of the human resource manager is wide; thus the human resource management department becomes a reference point for employees, since it assists and evaluates them before being hired and especially during their working life. One of the functions of the human resource manager is to motivate employees. A question arises: how to motivate employees on the basis of the four drivers’ theory?” To provide a structured and clear answer it is necessary to re-focus on the four drivers and to see which actions must be taken to satisfy them. The lever of the drive to acquire is the reward system; thus the point is understanding which policies should be introduced, changed and eliminated inside the reward system in order to increase and to keep high the motivation level. This is the reasoning that must be done for each driver. In the present case what is fundamental is a clear link between compensation and performance; the worker has to see that an higher or a lower compensation is the direct consequent of a better or worse performance respectively. But this is not enough; indeed it is fundamental to set new goals and challenges giving to employees the possibility to improve in their work. A problem that could emerge from such approach is linked to the relativity of the drive to acquire; indeed workers compare their compensation with other’s compensation. In some cases too much comparisons can lead to a negative competition between workers that is not safety for the company. In such a situation the drive to bond, if satisfied, can become extremely useful in damping an unhealthy competition. This is a practical example of how the four drivers are interconnected and must be satisfied simultaneously.
1
Business Dictionary http://www.businessdictionary.com/definition/human-resource-management-HRM.html
5
A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
The lever of the drive to bond is culture. It refers to the communication function; communication between workers can exist only if a strong sense of camaraderie is created. Human resource managers have to promote healthy connections between employees through teamwork, team-based rewards (link with the drive to acquire) and collaboration, encouraging the share of knowledge and work methods. HR managers have not to foster the communication just among workers, but also among workers and their supervisors; this can be achieved by flattering the organizational hierarchy through the cut of bureaucratic processes. The drawback of such an approach is that generally a person tends to bond with similar people, where similar means “gender” for instance; thus the role of human resource managers is to expand pro-diversity programs. The lever of the drive to comprehend is job design. It is fundamental to create a stimulating work environment that pushes the worker’s interest and curiosity towards his/her job. The employee has to find his/her job meaningful and to see the contribution that he/she gives to the organization. The routine causes a fast decline in motivation, thus each job must be designed in order to be challenging; to this end an equilibrium must be reached. Indeed job’s challenges have to be difficult to overcome but not impossible; in this way the job is not monotonous, the worker is pushed to conduct a research in order to find a solution to the problem. During this process the employee grows professionally and his/her silks and competences increased. He/she reinforces the idea to be helpful to the organization’s success. If challenges are too difficult, causing the worker to be unable to solve them, motivation decline rapidly since a strong sense of demoralization arises. If such driver is not fulfilled there can be several negative consequences for a company; indeed a lot of corporations have the fortune to have talented employees but in most cases these leave as soon as they see that their need to face daily new challenges and thus their need to comprehend is not satisfied. This drive can work well in a work-team context, thus creating a strong connection with the drive to bond. The levers of the drive to defend are performance management and resource allocation processes. To meet such drive all the processes concerning performance management and resource allocation must be clear and transparent. If the organization is able to provide such transparency the employee is able to understand motivations that lie behind each organizational decisions and to express freely its opinions about that. Summing up managerial implications coming from the model are: -
Link rewards to performance Recognize individual differences Use goals Give feedback Allow employees to in decisions that affect them Check the system for equity and fairness
Extra observation At this point of the analysis a question can arise: what does affect the employees’ motivation? The organizational policies or the direct actions of the managers? Actually such a problem does not arise. For the employees the implementation of an organizational policy has the same importance as the action of 6
A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
his/her managers. This because workers know that their supervisors have some control on the organization as a whole and so on policies implemented. Thus, for instance, even if human resource managers cannot control the whole reward system of the organization, they still have the power to influence it by asking for clearer links between performance and compensation. The same reasoning must be done for the other drivers as well. Here below a table (1) that summaries the results presented so far.
1
N.Nohria, B.Groysberg, L.E.Lee, “Employee Motivation. A powerfull new model” HBR 2008
7
A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
Model contextualization: the 3M case At this point it is interesting to analyze a real application of the model considering a company that is enforcing it successfully: 3M. 3M, Minnesota mining & manufacturing company, was founded in 1902. It is now worldwide recognized as a leading company thanks to its diversified and innovative products. Several are the sources of such a success. One of these is the importance 3M gives to the human resource development to reach a better organizational performance. 3M is aware of the competitive advantage of having motivated employees. This explains why 3M is the perfect example to be taken into consideration, since it applies the model in all its parts; thus the result is an highly motivated workforce. Naturally motivated employees cannot be the only reason explaining 3M’s fortune, in fact there are factors that should be analyzed. But it is also true, as stressed many times in this paper, that motivation accounts for a great part of a company’s success. After this brief company’s presentation what is analyzed is how 3M manages to apply the new motivational model. 3M human resource management department: the application of the model 3M’s reward system is recognized as one of the better compensation system on average; the link between compensation and salary is clear and transparent; indeed 3M’s rewards are based on the results each employee achieves during his/her working life. Moreover extra effort and significant contributions by employees are recognized both at the departmental and organizational level. In particular the human resource management department selects rewards for such contributions; these can be both monetary and non-monetary , a career move for instance. 3M’s rewards system includes also benefits program as retirement, life insurance as well as saving and investment initiatives; in this way 3M’s employees enjoy financial stability. Employees particularly rewarded are those promoting through their work innovation and creativeness, key words for 3M. Innovative and creative products are designed through the adoption of a flat organizational structure together with the promotion of self-managed work teams; work teams foster the communication and cooperation between employees creating a strong sense of camaraderie. In particular 3M work teams are self-managed, meaning that they not only pursue the work but they also manage it; in this way 3M gives more empowerment to its workers enhancing their productivity and performance. Self-managed teams have the role to solve daily problems without the guidelines of a boss; thus worker are more free but at the same time the job becomes more challenging. These daily challenges permit employees to grow giving them the possibility of development. 3M is also well-known for its fair work environment which fully respect its employees’ rights and opinions. 3M: the four drivers’ fulfillment The four drivers are perfectly fulfilled by 3M; however what is important to stress is how this company manages to satisfy them simultaneously. The drive to acquire is fully satiate by a pay-for-performance system. 3M’s reward system is also important to satisfy the drive to comprehend. Indeed, the award system is a tool through which each employee can perfectly see the value of his/her contribution. This kind of compensation model could cause a negative competition between 3M’s employee; however this possibility is stopped by the organizational structure and culture based on work teams; the work team system satisfies contemporary both the drive to bond and the drive to comprehend. Finally the drive to defend is not active; 8
A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
indeed 3M’s work environment is fair and safety, thus no threats are perceived by employees. They know they can express their opinions and ideas freely. The result is motivated workers who positively fight to do their best in the company, to guarantee their personal success but also the company’s one without having any intention to quit; so 3M example is also the evidence of how the model can provide a solution in the case of misalignment between workers’ individual goals and goals of the organization as a whole (see introduction). Conclusions about the case What the 3M examples wants to shows is that the model presented so far works! Naturally it works if correctly applied. To this end there is an important assumption that must be done: the correct application of the model requires that the company firstly recognizes its employees as valuable assets and that it is essential to take actions to enhance their potentials, flexibility, skills and competences. Basically it has to recognize the relevance of the human resource department’s role; in turn this last must be awarded of the importance of having highly motivated workers. But how to foster such employees’ motivation? The model provides the answer. As N.Nohria, B.Groysberg and L.E.Lee write: “.. insights into human behavior that our article has laid out will help companies and executives get the best out of employees by fulfilling their most fundamental needs.” 1
Final considerations and conclusions After having analyzed and contextualized the new model for motivating employees several conclusions can be derived. The first thing that can be noticed is how the focus of the HBR article, and of the model itself, is on the description of the actions human resource managers should take. This is the evidence that the role of the human resource department is continuously growing inside the organizational context. “HRM is moving away from traditional personnel, administration, and transactional roles, which are increasingly outsourced. HRM is now expected to add value to the strategic utilization of employees and that employee programs impact the business in measurable ways. The new role of HRM involves strategic direction and HRM metrics and measurements to demonstrate value”. (About human resources, http://humanresources.about.com/od/glossaryh/f/hr_management.htm) . Organizations have understood the competitive advantage they can gain by having motivate workers. Thus it is important to have HRM departments able to deal with the motivation issue. To this end the new model gives to organizations and to HRM departments the appropriate tools to reach such a purpose. What has been proved is that, if the model is applied in all its part, the return in term of organizational performance and success is very high. Naturally such an application is not cost less and cannot be accomplished in few days. It requires several expenses in terms on money and time; indeed there can be situations where the organizational structure and strategy must be deeply changed; this because there is the need to design jobs in a new way, to modify the reward system and to introduce new organizational policies. Nevertheless 3M’s highly motivated employees are the evidence that the new model works; thus it is worth doing such efforts to implement it. What we can expect is that in the future new types of organizational strategy and structure will arise; thus new technologies will be introduced and new tools for motivating people will be discovered. Nevertheless the model presented by N.Nohria, B.Groysber and L.E.Lee, thanks to its effectiveness and success, will be a fundamental background for the development of such new motivating tools.
9
A new model to motivate employees: Analysis and contextualization
Giulia Stocco 832396
References L.R. Gomez-Mejia, D.B. Balkin, R.L. Cardy, Managing Human Resources, 2010 Mindpoint, http://www.mindpoint.it/risorse/articoli/41-motivazione.html Changing Minds, http://changingminds.org/explanations/motivation/seven_causes.htm Human nature review, http://human-nature.com Libreria strategica, http://www.libreriastrategica.it/-management-delle-risorse-umane.php Business Dictionary, http://www.businessdictionary.com/definition/human-resource-managementHRM.html Accel team development, http://www.accel-team.com/human_resources/hrm_03.html About human resources, http://humanresources.about.com/od/glossaryh/f/hr_management.htm Quality digest, http://www.qualitydigest.com/nov95/html/self-dir.html
10
