Week 3 - motivation

A content theory assumes people have a set of needs which they pursue, and identifies physical or psychological conditions needed for certain human behaviour. One content theory is Maslow’s hierarchy of needs. A process theory assumes people select their goals and choose how to get them by process of calculation; it explains how individuals select their actions to enable them to meet their personal needs. One process theory is the Equity theory (Adams, 1963), which focuses on fairness and how people compare their own situation with others. The belief is that people value fair treatment, which causes them to be motivated in their job (Wikipedia). The structure of equity in the workplace is based on the ratio of inputs to outcomes, for example: how much effort one employee puts into their job compared to how much they get paid. Comparisons are made on a social, market, financial, organisational, and historical basis.

John Lewis is a large organisation, which does well to motivate its employees. “Join us and we’ll ensure your job is not only fulfilling and rewarding but suited to the way you work best as an individual” (John Lewis careers website), this motivates employees by ensuring they are empowered by working ‘the way the work best’, and assures that they will be rewarded for the work they put in.

Ways in which John Lewis motivate their employees (John Lewis careers website):

1. Their policy is to pay partners according to the market rate for the job they are doing and as much above that as is justified by performance.

2. An annual bonus where profit is distributed to partners as a percentage of their salary.

3. A non-contributory, final salary pension scheme after three years’ service.

4. After three months' service, all Partners are entitled to discount on most purchases from John Lewis and Waitrose.

5. Paid holiday.

6. Subsidised dining facilities.

7. Holiday and leisure facilities exclusively for partners.

8. Partners can get a 50 per cent subsidy on tickets for the theatre, opera and music performances.

9. The partnership offers business, technical and personal development through a range of flexible opportunities.

10. Partners with more than 25 years' service can take paid leave for six months.

In John Lewis, all employees are known as ‘partners’, making them feel an important part of the business and therefore another method of empowerment. Another way in which John Lewis’s employees are motivated is a monetary reward (point 2); a bonus is rewarded at the end of each year in comparison to how much profit the business has made. This links to Adams’ Equity theory as outcome relates to contribution; the harder employees work the larger bonus they will receive at the end of the year. On the other hand, this may be seen as inequity to some employees who feel they work harder; at the end of the year every partner receives the same percentage bonus, whether they have worked hard or not. A way John Lewis tackles this is by giving employees warnings if they are seen to not be working to an appropriate level.

Point 10 shows well how Adams’ equity theory relates to high motivation. Having six months paid leave is a large reward for their contribution to the business. It also compares their situation to others in a good way as others can see the benefits of their commitment.

Points 1 and 9 are ways in which John Lewis helps to tackle inequity. They show employees how putting in more effort and being trained in a higher position will increase their pay. This motivates employees while ensuring pay is fair. From my experience, Waitrose have a pay chart available to all employees which includes levels of pay and at what point of their employment they can go up each level. This also helps to solve inequity, therefore keeping employees motivated.

My research of this topic has shown that for motivation there needs to be equity. If employees feel they are being treated unfairly in comparison to others then they may lack motivation and leave the field. Not all motivation techniques are monetary, although these do work well, a sense of empowerment and fairness in the workplace can do well to motivate employees.

http://www.jlpjobs.com/

http://www.jlpjobs.com/your-career/benefits.htm

http://en.wikipedia.org/wiki/Equity_theory