INTRODUCTION

It is a common belief that motivation factors have moral and direct influences on relationships to
personal productivity. Productivity in the construction industry depends upon the effort of the performance or
effort of construction parties. In an attempt to gain insight into this subject, Maloney (1981) conducted a review
of factors of job motivation of factors of job motivation in the construction industry. Similarly, Maloney and
McFillen (1988) presented a model of construction crews motivation, performance and satisfaction, including
results from other studies that support the validity of their model. In the model, motivation was defined as a
function of a workers expectancy, which provides a means of understanding and assessing workers level of
performance, instrumentality and satisfaction.
Expectancy means a work team can serve to clarify or modify workers perceptions of the objective
they are pursuing. A work team can have a significant impact upon workers perceptions that an organization
gives reward for specific kinds of performance. Work team can also constitute their own source of social and
extrinsic reward for their team members and thereby create their own instrumentalities between behaviour and
team administered out comes. In addressing the subject of motivation in the construction industry, there are a
number of factors considered to be most effective job motivators. Beside monetary reward,there are other
important factors such as challenging work, job recognition, and a sense of achievement and a feeling of
personal growth. Indirectly, all these factors affect moral and thus have direct relationship to personal
productivity.
Daniel (1993) comments; an increase in motivation and personal productivity is more likely to
occur and be derived from the work environment and the work itself. A review of relevant literatures in order
to examine various aspects of motivation shows that interest of workers and management are normally the
same.
The aim of this paper is to identify major motivation related variable which have dimensional
differences within the data set, examine the statistical reliability of sample data with reliability scale assessment
and compare the factor analysis results of the partys perceptions of job motivation in the construction
industry.

THEORIES:

1.1 Need-based theories

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1.1.1 Maslow's hierarchy of needs

1.1.2 Need for achievement

1.2 Cognitive process theories

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1.2.1 Equity theory

1.2.2 Expectancy theory

1.2.3 Goal-setting Theory

1.2.4 Social cognitive theory

Maslow's hierarchy of needs:

Abraham Maslow's Hierarchy of Needs (1943) was applied to offer an explanation of how the work
environment motivates employees. In accordance with Maslow's theory, which was not specifically developed to
explain behavior in the workplace; employees strive to satisfy their needs in a hierarchical order.
At the most basic level, an employee is motivated to work in order to satisfy basic physiological needs for
survival, such as having enough money to purchase food. The next level of need in the hierarchy is safety, which could
be interpreted to mean adequate housing or living in a safe neighborhood. The next three levels in Maslow's theory
relate to intellectual and psycho-emotional needs: love and belonging, esteem (which refers to competence and
mastery), and finally the highest order need, self-actualization.

Need for achievement:

Atkinson & McClelland's Need for Achievement Theory is the most relevant and applicable need-based
theory in the IO psychologist's arsenal. Unlike other need-based theories, which try to interpret every need, Need for
Achievement allows the IO psychologist to concentrate research into a tighter focus. Studies show those who have a
high need for achievement prefer moderate levels of risk, seek feedback, and are likely to immerse themselves in their
work. Achievement motivation can be broken down into three types:

Achievement seeks position advancement, feedback, and sense of accomplishment

Authority need to lead, make an impact and be heard by others

Affiliation need for friendly social interactions and to be liked.

Because most individuals have a combination of these three types (in various proportions), an understanding
of these achievement motivation characteristics can be a useful assistance to management in job
placement, recruitment, etc.
The theory is referred to as Need for Achievement because these individuals are theorized to be the most
effective employees and leaders in the workplace. These individuals strive to achieve their goals and advance in the
organization. They tend to be dedicated to their work and strive hard to succeed. Such individuals also demonstrate a
strong desire for increasing their knowledge and for feedback on their performance, often in the form of performance
appraisal.

Equity theory:
Equity Theory is derived from social exchange theory. It explains motivation in the workplace as a cognitive
process of evaluation, whereby the employee seeks to achieve a balance between inputs or efforts in the workplace and
the outcomes or rewards received or anticipated.
Equity Theory has proven relevance in situations where an employee is under-compensated. If an employee
perceives that he is undercompensated, he can adjust his behavior to achieve equilibrium in several different ways:

reduce input to a level he believes better matches his level of compensation

change or adjust the comparative standard to which he is comparing his situation

cognitively adjust his perception of his inputs or the outcomes received

withdraw

address the situation with his employer by asking for a raise

Expectancy theory
According to Vroom's Expectancy Theory, an employee will work smarter and/or harder if he believes his
additional efforts will lead to valued rewards. Expectancy theory explains this increased output of effort by means of
the equation
F = E ( I V)
whereas:
F (Effort or Motivational Force) = Effort the employee will expend to achieve the desired performance;
E (Expectancy) = Belief that effort will result in desired level of performance;
I (Instrumentality) = Belief that desired level of performance will result in desired outcome;
V (Valence) = Value of the outcome to the employee
Goal-setting Theory
An IO psychologist can assist an employer in designing task-related goals for their employees that are

Attainable

Specific

Appropriately difficult,

Feedback providing

There are three types of factors that influence goal commitment:

External- The external factors that affect it are authority, peer influence and external rewards. Complying
with the dictates of an authority figure such as boss has been shown to be an inducement to high goal
commitment. Goal commitment increases when the authority figure is physically present, supportive,pay
increases, peer pressure and external rewards.

Interactive- The factors that influence commitment here are competition and the opportunity to participate in
setting goals. It has been shown to be an inducement to setting higher goals and working harder to reach them.

Internal- these come from self-administered rewards and the expectation of success. The commitment
decreases when the expectation to achieve is decreased

Behavioral approach to motivation:

The behavioral approach to workplace motivation is known as Organizational Behavioral Modification. This
approach applies the tenets of behaviorism developed by B.F. Skinner to promote employee behaviors that an
employer deems beneficial and discourage those that are not.
Any stimulus that increases the likelihood of a behavior increasing is a reinforce. An effective use of positive
reinforcement would be frequent praise while an employee is learning a new task. An employee's behavior can also be
shaped during the learning process if approximations of the ideal behavior are praised or rewarded. The frequency of
reinforcement is an important consideration. While frequent praise during the learning process can be beneficial, it can
be hard to sustain indefinitely.
A variable-ratio schedule of reinforcement, where the frequency of reinforcement varies unpredictably, can be
also being highly effective if used in instances where it is ethical to do so. Providing praise on a variable-ratio
schedule would be appropriate, whereas paying an employee on an unpredictable variable-ratio schedule would not be.
Compensation and other reward programs provide behavioral reinforcement, and if carefully crafted, can
provide powerful incentives to employees. Behavioral principles can also be used to address undesirable behaviors in
the workplace, but punishment should be used judiciously. If overused, punishment can negatively impact employee's
perception of fairness in the workplace.
In general, the less time that elapses between a behavior and its consequence, the more impactful a
consequence is likely to be.

Social cognitive theory:

Bandura's Social Cognitive Theory is another cognitive process theory that offers the important concept of
self-efficacy for explaining employee's level of motivation relative to workplace tasks or goals. Self-efficacy is an
individual's belief in his or her ability to achieve results in a given scenario.
Empirically, studies have shown a strong correlation between self-efficacy and performance. The concept has
been extended to group efficacy, which is a group's belief that it can achieve success with a given task or project.

Factors Affecting Employee Motivation:

1. Interesting Work:
Intrinsic motivation comes from the sheer joy and pleasure of doing a task. When you read a great book, no
one has to pay for each page you read. It is a pleasure to learn how the story unfolds and watch the plot develop. It is
the same way with employee motivation. To maximize employee performance, find out what employees like about
their jobs and then try to add more tasks that align with their own natural interests and talents.
2. Appreciation & Recognition:
William James said, "The deepest desire in human nature is to be appreciated." It does not matter how much
you pay someone, everyone want to know that their efforts are being seen and appreciated, especially by their
manager. Don't just send them a thank you e-mail - that just means you care enough to hit the "Enter" key. If you really
want to thank someone buy them a real "Thank You" card and describe how their behavior and performance has added
value to the team and organization. Make it a point to catch people doing things right and they will inevitably do
things right more often.
3. Feeling Involved In the Work Process:
Research shows that when people get to participate in creating a system or process, they are much more likely
to follow it than one simply imposed upon them by an outside expert. Recognize that the people doing the job have the
knowledge of how things can be done better, faster, and cheaper. If you want them to tell you, then make it easy for
them to offer suggestions and reward employees who contribute ideas that add value to the bottom line.
4. Achievement:
Napoleon once remarked, "It is amazing how willing men are to risk their lives for a little bit of tin and
ribbon to wear upon their chest." Awards and prizes can serve as a great motivator to harness the power of healthy
competition. It is always better to use rewards that are meaningful and inspiring. When an employee exceeds your
expectations, then make sure you recognize their achievement. On the day someone retires, they will pack up these
awards and prizes to serve as fond reminders of a wonderful career.
5. Job Security:
If everybody had what it takes to be an entrepreneur, then there would be no General Electric or Toyota and
we would all be buying products from artisans and craft workers. Thankfully, many people prefer to be part of a large

organization and can be more productive when they get to focus on doing their job instead of worrying about
developing a business plan or marketing strategy. Telling people that they are lucky to have a job creates an
atmosphere of fear and worry that decreases job performance. Instead, tell your employees that the company is lucky
to have such a skilled and committed workforce and people will take pride in their work and their company.

6. Increased Responsibility:
We all know that some employees lack ambition and have no desire to advance on the job, but the vast
majority of workers want a chance to take on more responsibility and add more value to the organization. Always be
aware of opportunities for training that will equip your employees with the skills and tools they will need to advance
in their career. Always try to fill open positions with internal applicants before looking for an outside candidate. This
will create a culture of career development and preserve institutional memory and organizational knowledge so that it
can be transferred to rising employees as they advance in their own career.
7. Good Wages:
Robert Bosch, founder of the world's largest automobile parts supplier, said, "I do not pay good wages
because I have a lot of money; I have a lot of money because I pay good wages." If you want motivated, high
productive employees you have to pay such people according to their ability and performance. Good employees are
motivated by more than just good wages, but never allow low wages to be the wedge a competitor can use to steal
away your best people.
8. Good Working Conditions:
If you want to get the most out of people you need to create an environment that facilitates success. At the
minimum, you must offer a safe, clean, and sanitary work site. To get the most out of employees, help them take pride
in their workspace, even if it is only a cubicle or workstation. Allow people to personalize their own work sites with
photos or small trinkets so they will feel like they have a place that belongs solely to them.
9. Being Part of a Team:
Being part of a dysfunctional team is an emotionally draining experience that results in low morale, low
productivity, and high turnover. The great coach, Vince Lombardi, once remarked, "Individual commitment to a group
effort -- that is what makes a team work, a company work, a society work, a civilization work." We are all social
beings and we all want to be part of a healthy team where we can give and receive support, help, and encouragement.
Organizations can harness this natural human desire by aligning employee efforts to achieve goals that are mutually
beneficial to both the organization and its employees.
10. Help with Personal Problems:
How many times have you heard about a bad boss who told their employees to leave their problems at the
door so they could focus on their job? Unfortunately, they probably left their motivation and productivity at the door
as well. Smart managers know that it is not their job to be a counselor or therapist, but it is there job to recognize when
one of their employees is having personal problems that are affecting their job performance. They need to have open
lines of honest communication so that employees can feel encouraged to ask for help and then be directed to their
Human Resources Department or their Employee Assistance Programs.

Why is Employee Motivation So Important for Performance?

When looked upon the first time, the link between employee motivation and performance seems to be quite
obvious. Thats because every time when we deem a task to be important and valuable to us, we act with a high level

of dedication and enthusiasm to its completion. However, the relationship between these two things is in fact a lot
more complex. Realistically speaking, the duties we have at work can be most of the time tedious, repetitive and quite
boring. Most of us dont go to work excited that were going to have another day in which well respond to dozens of
emails, complete a pile of Excel spreadsheets, or other tasks which fall into the dullness category.
With that in mind, managers need to find creative ways in which to consistently keep their employees motivated as
much as possible. Motivation is highly important for every company due to the benefits that its able to bring. Such
benefits include:
Human Capital Management :
A company can achieve its full potential only by making use of all the financial, physical, and human
resources that it has. It is through these resources that the employees get motivated to accomplish their duties. This
way, the enterprise begins to glisten as everyone is doing their best to fulfill their tasks.
Meeting Personal Goals Help an Employee Stay Motivated and Feel About Themselves to Continue to Produce:
Motivation can facilitate a worker reaching his/her personal goals, and can facilitate the self-development of an
individual. Once that worker meets some initial goals, they realize the clear link between effort and results, which will
further motivate them to continue at a high level. This relates closely to
Greater Employee Satisfaction:
Worker satisfaction is important for every company, as this one factor can lead towards progress or regress. In
the absence of an incentive plan, employees will not fill ready to fulfill their objectives. Thus, managers should seek to
empower them through promotion opportunities, monetary and non-monetary rewards, or disincentives in case of
inefficient employees.
Raising Employee Efficiency:
An employees efficiency level is not strictly related to his abilities and qualifications. In order to get the very
best results, an employee needs to have a perfect balance between ability and willingness. Such balance can lead to an
increase of productivity, lower operational costs, and an overall improvement in efficiency, and can be achieved only
through motivation.

A Higher Chance of Meeting the Companys Goals:

Any enterprise has its goals, which can be achieved only when the following factors are met:
There is a proper resource management
The work environment is a cooperative one
All employees are directed by their objectives
Goals can be reached if cooperation and coordination are fulfilled at once through motivation
Better Team Harmony:
A proper work environment focused on cooperative relationships is highly important for an organizations
success. Not only that it can bring stability and profits, but employees will also adapt more easy to changes, fact which
is ultimately in the companys benefit.
Workforce Stability:
Stability of the personnel is highly important from a business point of view. The staff will stay loyal to the
enterprise only they meet a sense of participation within the management side. The abilities and potency of staff can be
used in their own advantage, but also in the benefit of the company. This may cause an honest public image within the
market which can attract competent and qualified individuals into the business.
With all that said, its important also to point out that motivation is an interior feeling which should target both the
manager and the team members, as they can interact and feed off each other, motivationally speaking. Needs, wishes
and desires are interrelated, representing the thrust to act. These wants should be understood by the manager and
he/she should formulate and frequently update comprehensive motivation strategies.
If you wish to inspire your personnel, then you need to provide an environment that exudes positive energy.
Ensure that all your workers feel that they are an integral contributor to the overall team success. Keep your workplace

doors open and keep yourself approachable, and encourage all of your managers to try and be constant. The additional
positive of the surroundings, the additional empowering and greater employees productivity are the basic elements
that will get your business to the top. This is why employee motivation is so important.

APPLICATIONS OF MOTIVATION:
Organizational reward systems:
Organizational reward systems have a significant impact on employees' level of motivation. Rewards can be
either tangible or intangible. Various forms of pay, such as salary, commissions, bonuses, employee ownership
programs and various types of profit or gain sharing programs, are all important tangible rewards. While fringe
benefits have a positive impact on attraction and retention, their direct impact on motivation and performance is not
well-defined.
Salaries play a crucial role in the tangible reward system. They are an important factor in attracting new talent
to an organization as well as retaining talent. Compensating employees well is one way for an organization to
reinforce an employee's value to the organization. If an organization is known for paying their employees top dollar,
then they may develop a positive reputation in the job market as a result.
Through incentive compensation structures, employees can be guided to focus their attention and efforts on
certain organizational goals. The goals that are reinforced through incentive pay should be carefully considered to
make sure they are in alignment with the organizational objectives. If there are multiple rewards programs, it is
important to consider if there might be any conflicting goals. For example, individual and team-based rewards can
sometime work at cross-purposes.
Important forms of intangible rewards include praise, recognition and rewards. Intangible rewards are ones
from which an employee does not derive any material gain. Such rewards have the greatest impact when they soon
follow the desired behavior and are closely tied to the performance. If an organization wants to use praise or other
intangible rewards effectively, praise should be offered for a high level of performance and for things that they
employee has control over. Some studies have shown that praise can be as effective as tangible rewards.
Other forms of intangible performance include status symbols, such as a corner office, and increased
autonomy and freedom. Increased autonomy demonstrates trust in an employee, may decrease occupational stress and
improve job satisfaction. A 2010 study found positive relationships between job satisfaction and life satisfaction,
happiness, positive affect, and the absence of negative affect which may also be interrelated with work
motivation. Since it may be hard for an employee to achieve a similar level of trust in new organization, increased
autonomy may also help improve retention.

Motivation through design of work:

Reward-based systems are certainly the more common practice for attempting to influence motivation within
an organization, but some employers strive to design the work itself to be more conducive. There are multiple ways an
organization can leverage job design principles to increase motivation. Three of the predominant approaches will be
discussed here: the Humanistic Approach, the Job Characteristics Approach, and the Interdisciplinary Approach.

Humanistic Approach:
The Humanistic Approach to job design was a reaction to "worker dissatisfaction over Scientific
Management" and focused on providing employees with more input and an opportunity to maximize their personal
achievement as referenced by Jex and Britt. Jobs should also provide intellectual stimulation, opportunities for
creativity, and greater discretion over work-related activities. Two approaches used in the Humanistic Approach to job
design are job rotation and job enrichment. Job rotation allows employees to switch to different jobs which allow them
to learn new skills and provides them with greater variety. According to Jex and Britt, this would be most effective for
simple jobs that can become mundane and boring over time. Job enrichment is focused on leveraging those aspects of
jobs that are labeled motivators, such as control, intellectual challenge, and creativity. The most common form of job
enrichment is vertical loading where additional tasks or discretion enhances the initial job design. While there is some

evidence to support that job enrichment improves motivation, it is important to note that it is not effective for all
people. Some employees are not more motivated by enriched jobs.

Job Characteristics Approach:

The Job Characteristics Approach to job design is based on how core dimensions affect motivation. These
dimensions include autonomy, variety, significance, feedback, and identity. The goal of JCT job design is to utilize
specific interventions in an effort to enhance these core dimensions.
1. Vertical Loading Like the tactic used in the Humanistic Job Enrichment approach, this intervention is
designed to enhance autonomy, task identity, task significance, and skill variety by increasing the number of
tasks and providing greater levels of control over how those tasks are completed.
2. Task Combination By combining tasks into larger units of work and responsibility, task identity may be
improved.
3. Natural Work Units A form of task combination that represents a logical body of work and responsibility
that may enhance both task significance and task identity.
4. Establishing Client Relationships Designs interactions between employees and customers, both internal and
external, to enhance task identity, feedback, and task significance. This is accomplished by improving the
visibility of beneficial effects on customers.
5. Feedback By designing open feedback channels, this intervention attempts to increase the amount and value
of feedback received.
The process of designing work so as to enhance individual motivation to perform the work is called Job enrichment
While the JCT approach to job design has a significant impact on job satisfaction, the effects on performance
are more mixed. Much of the success of implementation of JCT practices is dependent on the organization carefully
planning interventions and changes to ensure impact throughout the organization is anticipated. Many companies may
have difficulty implementing JCT changes throughout the organization due to its high cost and complexity.

Interdisciplinary Approach:
One of the most recent approaches to work design, the Interdisciplinary Approach is based on the use of
careful assessment of current job design, followed by a cost/benefit analysis, and finally changes based on the area in
which a job is lacking. The assessment is conducted using the Multi-method Job Design Questionnaire, which is used
to determine if the job is deficient in the areas of motivational, mechanistic, biological, or perceptual motor support.
Motivational improvements are aligned with the Job Characteristics theory dimensions. Mechanistic improvements are
focused on improving the efficiency of the job design. Biological improvements focus on improvements to
ergonomics, health conditions, and employee comfort. Finally, perceptual motor improvements focus on the nature
and presentation of the information an employee must work with. If improvements are identified using the
questionnaire, the company then evaluates the cost of making the improvements and determines if the potential gains
in motivation and performance justify those costs. Because of the analysis and cost/benefit components of the
Interdisciplinary Approach, it is often less costly for organizations and implementations can be more effective. Only
changes deemed to be appropriate investments are made, thus improving motivation, productivity, and job
satisfaction while controlling costs.

CASE STUDY:
A study on a company with 60 employees. We chose a company that has two divisions: automotive service
(35 staff) and auto sales (25 employees), the choice was based on the consideration that the service division performs
tasks does not require much cognitive and creative functions (vehicle diagnoses being provided by a computer, other
operations being described by the vehicle service manual), and the sales unit witch perform opposite task, they must
be very creative in direct marketing, addressing customers so as to persuade them to opt for products distributed by the
company. Another consideration on which this company was chosen is the forms of motivation applied. In table 1
these forms of motivation are enumerated.

Within this company a survey was conducted among all employees, trying to determine the effectiveness of
various forms of motivation. Employees were applied a questionnaire which contained several questions, one section
include a list of all forms of motivation applies, they were asked to tick a degree of effectiveness for etch one, from
their point of view.
The results of this query support Gluxberg theory, the employees from the sales department have agreed
intrinsic motivation is more effective than extrinsic motivation, while those in the service department had a reverse
reaction. If we were to relate only to Gluxberg`s theory the general motivation of employees from this company
should be low, due to the fact that this company applies the two forms of motivation equally. But the same survey also
had a section to quantify the overall motivation of employees .Gluxberg`s theory is not valid in practice. The
experiment studied motivation isolated from other factors. If we were to relate the conclusions derived from
overlapping Gluxberg with Maslow's theory, the results are validated. The company applies the two forms of
motivation (approximately equal) and obtains a relatively good motivation (approximately 75% of employees). As a
possibility of improving employee motivation in this company, it is recommended to easily apply the two forms of
motivation distinct among the two divisions .It's hard to say which would be optimal; it must be found by repeated
tests.
The results of a series of experiments conducted under controlled conditions are not always appropriate to be
applied in practice, these experiments provide very important contributions, but they should be correlated with both
existing theory and the issues identified in the companies. Gluxberg's experiments have made very important
contributions on forms of motivation that should be applied in modern society. But, the solutions given by his
experiments, can`t be applied in practice, they are not taking into account all the factors that act on an employee. If his
conclusions are related to existing theory they become feasible, consequently, suited to the situation found in
companies. Managers must take into account the situation of employees, the needs that they show (placing them on a
certain level of Maslow's pyramid), but also the specific work performed by them (involving cognitive and creative
activities or not). Following these findings, managers are able to identify the predominant form of motivation
recommended for their company.

CASE STUDY:
Starbucks began by three friends, Jerry Baldwin, Zev Siegl, and Gordon Bowker, who knew eachother at
the University of Seattle, in 1971. A sales representative, Howard Schultz, decided to be a part of Starbucks, as
director of marketing and retail sales, after he realized the atmosphere andenvironment of the company. In 1985
Howard Schultz chose to establish a new coffee shop, namedII Giornale, in Seattle. After the next two years, due
to the successful strategy of Schultz, the originalthree owners of Starbucks decided to sell their corporation to Schultz.
Then Schultz gathered otherinvestors and changed the name of II Giornale to Starbucks. He sought to pursue his
dream to makeeveryone taste his coffee, so he focused on the rate of expanding. At that time, he though that themost
efficient way to grow the amount of branches was to set up new stores in other places. In I987,Starbucks had the first
overseas store in Japan.

Motivation:
Motivation is a vital factor for business in the production process. Labourers are not machines, and can not
always do the same task with equal passion. The chief executive officer of Starbucks corporation, Howard Schultz,
considers that the reason for success in Starbucks is not coffee but employees. He firmly believes that the spirit of
Starbucks is employees and feels honoured about the value of Starbucks employees. Starbucks offers an interactive
structure that makes personnel throw themselves into their job.
1) Equal treatment: The managers in Starbucks treat each employee equally and all of the staff are called partners,
even the supervisors of each branch. In order to narrow the gap between managers and employees, they also cowork
with the basic level staff in the front line. Due to this, they can maintain a good management system and create a much
closer and more familiar atmosphere than other places. Not only do employees enjoy their job but customers are also
affected by their enthusiasm.
2) Listen to employees: Starbucks has a wellorganized communication channel for employees. It places great
importance on labour. For example, managers plan the working hours per workers and arrange the schedule of time
off, according to the workers wants in order to meet their requirements. There are interviews weekly to see what
employees needs are. The partners have the right to figure out what is the best policy for them, and the directors show
a respect for each suggestion. Starbucks even wants every employee to join in making and developing plans, then
work together in achieving their goals. As a result, the policies and principles are communicated between all staff, and
there is no limitation in employees personal opinions.
3) Good welfare measures: All employees, including informal personnel, are offered a great deal of welfare policies,
for instance, commodities discounts for employees, medical insurance (including health, vision and dental) and
vacations. Moreover, the partners who work over 20 hours a week are entitled to benefits.
Starbucks also thinks that debt financing is not the best choice, thus it chooses to allocate stock dividends to
all employees with a free script issue. By this policy, the employees can get benefits from the dividends of the
company. Because of this, they have the same goal; in other words, they are motivated to increase the sales to earn
more profits. To Starbucks, the employees are the most important asset.

Teamwork:
1) The strategies to keep good relationships: Starbucks establishes a well-developed system to keep good relationships
between managers and employees. As mentioned, they use the title partner regardless of the level of the worker,
which narrows the gap of bureaucracy. Furthermore, they cowork in the first line to eliminate the distance between
different statuses. Thirdly, the numbers of employees are usually from three to six. Such a small size helps staff get to
know each other easily and deeply. Suggestions and complaints made by employees are treated of equal importance. In
the same way, they have a right to participate in the process of revising company policies. In that case, each staff
member thinks that they also play an important role in company operating, and they jointly work out the direction of
Starbucks. All this gives employees respect and a sense of participation.
2) A goal of public welfare: Starbucks contributes part of its profits to public service. As a consequence staff have an
idea that what they do for Starbucks is for society as well. With regard to goals, Starbucks set a challenging and
specific goal, and it allows all partners to decide the direction.

SOLUTION OF THE CASE:

1) Starbucks employees can be seen as a formal team as opposed to an informal team.
Differentiate between formal and informal teams.
Answer: Formal team is those groups which are given legitimacy by the organization. For example, at the Starbucks
Company, the formal group is the formal organizational structure of the company which involves the flat structure
involving the board of directors, managers, and the staff. This group consists of a manager and his subordinates, and
both of them share a common specialty.

On the other hand, Informal teams have no structure whatsoever and they do not focus on specialty. There is no
manager/leader; team members are completely equal in informal teams. It is said that when people come together and
start interacting with each other for a long time, they form informal team. Informal groups are said to affect the
organizational structure. The informal team is established in this company (Starbucks) to ensure that communication
has been effective. Instead of using the various stages in order to reach those above, then these groups can be used to
help solve those problems. For example, Starbucks uses the informal groups to address the matters which arise in this
company. It is through this group that the information is communicated to the rest of the workers.
Thus formal and informal teams differ from each other in the following respects:
1. Origin: The reasons and circumstances of origin of both formal and informal teams are quite different. The formal
teams are created deliberately and consciously by the framers of the company. On the other hand, informal teams arc
created because of the operation of socio-psychological forces at the workplace, that is, people while working together
develops certain liking and disliking for others for the type of interactions not provided officially.
2. Purpose: Since formal teams are deliberate creation, they are created for achieving the legitimate objectives of the
company. The informal teams are created by company members for their social and psychological satisfaction.
3. Size: Formal teams may be quite large in size. Sometimes formal teams are constituted to give representation to
various interest groups in the company, and their size has to be kept large. However, the informal teams tend to be
small in size so as to maintain the group cohesiveness which is essential for the informal teams to be attractive for the
members concerned.
4. Authority: The members of formal team derive authority through the formal source that is through the process of
delegation and reallocation. Thus authority flows from the higher lo lower levels. In the informal team, all members
are equal; however, some may command more authority by virtue of their personal qualities. Thus, authority is
commanded. People give authority to those persons who are likely to meet members' needs maximum. This is the way
of emergence of informal leaders in the informal groups. Such people have maximum positive interactions in the
groups.
5. Behavior of Members: The behavior of members in the formal team is governed by formal rules and regulations.
The rules are normally directed towards rationality and efficiency. In the informal team, the behavior of the members
is governed by norms, belief, and values of the groups. The kind of behavior that is expected of a member is specified
by these factors.
6. Communication: Communication is prescribed in the formal team. It is normally through chain of command to
which people refer as formal channel of communication. All communications in the formal groups are expected to
pass through that channel. In these informal groups, the communications pass through informal channels.
2) The employees of Starbucks retail shops clearly work together well as a team. List four characteristics of
teams that have gelled together.
Answer: The employees of Starbucks retail shops clearly work together well as a team; according to this the four
characteristics of teams that have gelled together could be the following respects:

The Managers and supervisors of Starbucks company co-work with the basic level staff in front line which
creates the management system a much closer and more familiar atmosphere than other bureaucrat places.
The numbers of employees in Starbucks are usually from three to six, that helps staffs get to know each other
well and deeply. Any ideas and objections made by employees are treated of equal significance.
The chief executive officer of Starbucks Corporation confidently feels and believes that the spirit of
Starbucks is its employees and offers an interactive structure that makes personnel throw themselves into
their job.
The Managers of Starbucks Corporation treat each employee equally and all of the stuff called partners to
narrow the gap between managers and employees.

3) the numbers of employees are usually from three to six.

a. Why is the size of team an important factor?
b. What are the benefits to Starbucks of having small teams of staff in each branch?

Answer:
a.

b.

Team size is determined by company/organizational task types, goals, and processes. So, the size of a team is
clearly an important factor, because a large team is hard to manage and sometimes it could be biased to some
individuals than others. Also it is difficult to know well and deeply every members of a large team. Whereas,
smaller teams experience better work-life quality and work outcomes. Smaller team also may experience less
conflict, stronger communication, and more cohesion.
The benefits to Starbucks enjoying of having small teams of staff in each branch are:
It narrows the gap of bureaucracy.
Stronger communication among the staffs.
Experience better and quality work.
It creates bridge between organization-level strategy and staffing decisions.
It eliminates the distance between different statuses.
It helps to treat employees equal importance.

4) Starbucks achieve success and adhere to the criteria of planning, execution and review.
a. Explain three issues that need to be addressed in the planning process.
b. Reviewing is an ongoing process. Explain three things Starbucks can do continually to ensure goals are being
accomplished. (HINT: apply your facts on the review process to the Starbucks situation).

Answer: a. As reading the case of Starbucks Corporation it is clear that the three issues which need to be addressed in
the planning process are: Equal Treatment, Listen to the employees, Good welfare measures.

Equal treatment: It is one of the important issues which need to be addressed in the planning process. Equal
treatment at the work place means that the employer may not treat anyone differently to other employees. In
the case we see that, the managers in Starbucks treat each employee equally and all of the staffs are called
partners. It helps to narrow the gaps between managers and employees. Every employee deserves fair and
equal treatment and respect in the work place, it helps to create friendly working environment. So, if equal
treatment addressed in the planning process it will help a company to maintain a good management system
and create a much closer and more familiar atmosphere than other places.

Listen to the employees: Listening to the employees can be another important issue which needs to address in
the planning process. Sometimes business faces ricks when they fail to address this concern. In the case we
see that, Starbucks wants its every employee to join in making and developing plans, then work together in
achieving their goals. As a result, their policies and principles are communicated between all staff, and there
occurs no limitation in employees personal opinions. Listening to the employees means giving them great
importance which can motivate and encourage them to concentrate on their work effectively.

Good welfare measures: Good welfare measures is an issue where employees are offered welfare policies like
medical insurance(including health, vision and dental), commodities discounts, house rent etc. In the case we
observe, all employees of the Starbucks, including informal personnel, are offered a great deal of welfare
policies. Moreover, the partners who work over 20hours a week are entitled to benefits. So, this issue needs to
be addressed in the planning process to motivate the employees.

b. The three things that Starbucks can do continually to ensure goals accomplishment are:
i. Motivate employees
ii. Continue team work and communicate properly
iii. Maintain excellent relationship (with the employees and customer).
i. Motivate employees: Starbucks is already a famous coffee shop in the world and it has been one of the most rapid
growing corporations. If Starbucks wants to keep this accomplishment than it has to motivate its employees properly

on a continue basis. Starbucks believes that if the employees are motivated, they work properly for the
accomplishment of the organizational goal. As Employees are the heart of any business so by motivating its employees
will help Starbucks not only to achieve its goal but also to expand its business.
ii. Continue team work and communicate properly: Without an effective communication between Managers &
employees an organization cant go for a long way. It means it cant sustain in the business world. So if Starbucks
wants to ensure continually goal accomplishment, it must have to communicate in a proper channel.
iii. Maintain excellent relationship: To ensure the goal accomplishment Starbucks should maintain a good relationship
with both customers and its employees. It provides great support to its employees as well as customers, so by
continuing this relationship Starbucks can ensure its objective.
5. How does Starbucks manage to keep good relationships between their managers and
employees?
Answer: The managers of Starbucks treat each employee equally and all of the staffs are called partners. Moreover to
narrow the gap, they also co-work with basic level staff in the front line so that they can maintain a good management
system and create a much closer and familiar environment. Managers also pay attention to employees through a
communication channel. Starbucks manage to keep good relationship between their managers and employees are:
Promote Understanding of Shared Goals: For employees to work together effectively, they must
understand group and individual goals. Lack of goal clarity often is misidentified as an individual
performance issue. This leads to blame, conflict and increased turnover by frustrated employees who are
working hard but not getting the results the organization expects. Starbucks promote a clear understanding by
sharing goals to its employees and managers.
Promote Understanding of Task Relevance: When employees understand shared goals, talent managers
can cultivate an atmosphere focused on problem solving, removing performance barriers and delivering
outcomes. This eliminates finger-pointing because when everyone understands the relevance of everyone
elses contributions, employees have increased awareness of their interdependencies and thus have more
respect for one another. Starbucks manages to promote a clear understanding about its every task relevance
among the managers and employees.
Managers and employees both have access in giving opinion: Starbucks manages to keep good relationship
between their managers and employees by permitting them both in presenting their views and opinion.
Equal Treatment: Starbucks treats all its employees equally, which help to manage good relation between
managers and employees.
Flexible working Hours: Starbucks: Starbucks have flexible working hours, where managers plan the
working hours per workers and arrange the schedule of time off, according to the workers wants in order to
meet their requirements.
Good welfare measures: Starbucks offer a great deal of welfare policies, for instance, commodities discounts
for employees.
Treat as important Asset: Starbuck treats its employees as the most important asset in the corporation, which
also help to manage good relation between managers and employees.
6) Name the five issues that teams should take note of and address if necessary, before these
issues become a crisis.
Answer: The five issues that teams should take note of and address if necessary are:

Strong values to the customer: Team should give strong note to its customers. A strong value to the
customers comes from the culture of company which develops customers values and societys values
including the value of organization to drive the direction of business improvement. Starbucks mission is that
of providing a good environmental workplace and treating partners with respect, various elements of
business, highest standard of delivery coffee, engaging communities and environment, active to make
customer satisfaction and having profitable business. The company has made a long run relationship with
suppliers and sellers more than need low prices because it wants to high quality products and service. Strong
values drive customer value come from the culture of company which develops customers values and
societys values including the value of organization to drive the direction of business improvement.
Values-based service brand and communication for values resonance: Brands are very important because
it can communicate with customers. So a teams responsibility is to value its brand and if the products or

services of an organization are good they are appreciated by the consumers. But if they are not there will be
damage of companys image. Starbucks has succeeded in marketing and has good resonance because it has
strong relationships with its customers, the local communities that create trust to each other. Starbucks has
collaborated with social responsibilities and also communicate company activities with its stakeholders to
promote an accountable environment. Brand of Starbucks has succeeded by improving the environment of the
stores through attractive furnishing, fixtures, artwork and music. Starbucks has designed the stores as the
bridge between the workplace and home for the customers. Starbucks has given to create a warm and
comfortable environment for the customers who would always feel different when they would come to a
Starbucks store to consume coffee.

Values-based service leadership for living the values: For any team the place of a leader is very important
and vital. A team should take notes to value its leadership service. Starbucks has supported employees with
touchable incentives like working conditions. Furthermore engages in empowerment, corporation and
communication of culture and value. All staff is called partners without any regards to positions. The
company empowers by decentralizing, where partners corporate with the teams in each area.

Values-based service experience for co-creating: The main concept of services is that customers should
have real experience before buying and consuming services or commodities which they need. The team
responsibility is to priorities this issue. In-case of Starbucks we see that the company has offered a good
music and great environment in the Starbucks houses. No doubt, why customers come to visit Starbucks to
meet their friends, relaxing ever working because Starbucks it offers customers more than beverages.

CSR as a strategy to sustain in the business: A team should take note to its CSR activities. CSR or
corporate social responsibilities can improve corporate production or services to build the values. Starbucks
has the long term relationships with suppliers to control the qualities and prices, which they work together
with suppliers and discuss strategic business to improve and develop products. Starbucks focuses on social
and environmental points. Starbucks company engages the business ethics, which it can see Starbucks
mission or Starbucks code of conduct (from the part of Strong values drive customer value) including
companys policy both social and environmental.

These are the five issues that teams should take note of and address if necessary, before these issues become a crisis.
7. The staff at Starbucks are empowered and motivated employees. Briefly explain, in your own words, the
three principles that Starbucks implement in motivating their employees.
Answer: The three principles that Starbucks implement in motivating their employees are given below:
Equal treatments: Starbucks treat each employee equally and called partners, even the team leaders. They also work
with sales team members in front line to narrow the gap between them. They have small teams which contains 3 to 6
workers, so that they can maintain good management system. Equal treatment at the work place means that the
employer may not treat anyone differently to other employees. Every employee deserves fair and equal treatment and
respect in the work place, it helps to create friendly working environment.
Listen to employees: Listening to the employees means giving them great importance which can motivate and
encourage them to concentrate on their work effectively. Through a well-organized communication channel,
Starbucks listen to their employees. Managers plan according to employees requirements which motivate them a lot.
In the case we see that, Starbucks wants its every employee to join in making and developing plans, then work
together in achieving their goals. As a result, their policies and principles are communicated between all staff, and
there occurs no limitation in employees personal opinions.
Good welfare measures: It is an issue where employees are offered welfare policies like medical insurance
(including health, vision and dental), commodities discounts, and house rent etc. Starbucks offer a great deal of
welfare policies: for example, a commodity discounts medical insurance and vacations. Also the partners who work
more than 20 hours entitled to benefits. Starbucks not only offers a great deal of benefits, they also allocate stock
dividends to all employees with a free script issue. Because of this they have the same goal, which motives then to
increase sales to earn more profits.

Conclusion
Starbucks changes the behaviors and viewpoints of global consumers of coffee, and this successful example has
caught global attention. Nowadays, it is not only one of the fastest growing corporation, but also an outstanding
business model with low employee turnover rate and high profit performance shows that motivation is the key factor
of a company policy, opposite to the principles of classical management which is only concerned about production and
ignores workers ideas. A good relationship between managers and employees could maintain a high quality of
performance. We can learn from Starbucks: using the correct strategy leads to success.
OTHER CASE STUDIES:
Case 1: Motivating through total reward
Introduction:
The royal bank of Scotland group (rbs) is one of the largest financial services companies in the world. It provides a
range of services including banking and insurance. The rbs` group operates in Europe, the us and Asia, serving more
than 36 million customers world-wide. It employs more than 140,000 people.
Roles:
As a major company, rbs needs to recruit the best employees It can. rbs is a leading employer and therefore offers a
range of great job opportunities. People can start their working life by joining from school or from university. There
are many types of job available, for example. Working in a branch of the bank, or at head office in roles like marketing
or sales.
Motivation:
What is It that makes people want to work harder than others? Some key theories are:
* Taylor and 'scientific management. This theory said that every job could be measured by the amount of work done
or the number of pieces made (this is known as the 'piece rate'). Workers would work harder because they would earn
more.
* Herzberg and the 'two factors':
Herzberg's theory showed that certain motivation flews needed to be in place first. these were called wed
'hygiene' wtors, for example, a clean work place and good bade pay. Only once these were in place could other factors
be brought in to motivate workers. rbs uses a number of factors to motivate Its people. These include recognition for a
job well done, promotion and other rewards.
* Maslow and the hierarchy of needs:
This theory showed that workers had to have their basic needs, such as feeling safe and secure, met first.
Only then could they move on to be motivated by other things. However, rbs believes that meeting these higher needs,
for example, by recognizing achievement, will motivate employees and help the company to grow. It has put in place a
number of benefits to meet these needs.
Total reward:
RBS has a special benefits scheme called total reward. at the one of the scheme is good basic pay. rbs also provides
many flexible benefits in areas like health cover, pensions and childcare. It uses this as part of Its strategy to motivate
employees. In addition to these benefits, every employee is set targets. These are measured to see how well he or she is
doing. Employees can earn a bonus if their targets are reached. There is also a profit-sharing scheme. All employees
are paid a bonus of 10% if the company as a whole does well. RBS also supports community projects and charities
that are people care about, for example, the nspcc and youth charities. It does this by trebling any money the
employees raise.
Work-life balance:
RBS knows that It is important to have a good work-life balance. this is the trade off between time spent at work and

spent outside of work. rbs employees have the opportunIty to work more flexibly. the rbs your time programme also
helps by recognising that employees may need time off work for reasons other than sickness. they may want to spend
more time wIth their family or perhaps take a career break to go travelling.
Conclusion:
RBS knows Its employees are Its future and rewards and encourages them. It provides a world-class employment
package of benefIts for every employee, at every level. in rbs, motivation theory comes to life.
Issues for discussion:
1. Name two motivating factors at rbs.
2. Describe the differences between the theories of taylor and maslow.
3. How does rbs total reward package fulfill maslows higher levels of motivation?
4. How does total reward contribute to rbs overall strategy?
Case 2: using aims and objectives to create a business strategy
Introduction:
Kellogg is the world's leading supplier of breakfast cereal. It has 39 brands and a 42% share of the UK market. kellogg
makes a range of products for the various segments of the UK market. The market is worth 1.1 billion a year.
Kellogg's success is achieved through careful planning. It sets clear aims and objectives. It then uses the strength of its
brands to help It reach them. Kellogg ensures that each brand has a unique place in the minds of its customers. This is
called product positioning.

Developing aims:
Kellogg's managers set aims. These must match what consumers want. In recent years, consumers have shown that
they want to lead more healthy lives. Kellogg wanted to be part of this debate. It promotes the message 'get the
balance right'. It also wanted to show that It corporate responsibility. This means showing that It is a company that
cares for both Its consumers and the environment. An aim is a broad statement of where a business wants to be.
Kellogg's aim was therefore to reinforce the idea of a healthy lifestyle.
Objectives:
Once a broad aim is put in place, objectives can then be set. These should be smart. This stands for:
Specific:
Measurable:
Achievable:
Realistic and
Time related.
They were set in three main areas
* Promoting physical activIty for health
* Using packaging to promote a balanced lifestyle
* Using food labeling to help consumers make healthy choices.
Strategy:
Strategy is a set of plans designed to reach the aims set. Kellogg's strategy included helping people become active. It
has worked with the amateur swimming association (asa) since 1997. The asa's want everyone to enjoy swimming as
part of' a healthy, lit style. These closely match those of Kellogg. Swimming, is also a family activity and a skill for
life'. Kellogg became the main sponsor of swimming in the uk, providing over 1.8 million per the link wIth the asa
also helped Kellogg to support active lIt styles in other ways. It linked wIth sustains, which promotes sustainable
transport. this led Kellogg to develop a cycling based promotion. It also encourages walking. a free pedometer given

away wIth all bran inspired people to walk further. Kellogg has also sponsored other walking events. Kellogg uses
symbols on Its packs to show healthy guideline daily amounts of ingredients such as salt, sugar and fat. this helps
consumers to make choices.

Communication:
Kellogg's success in reaching Its aims is due to the clear ways by which It conveys them to customers. It uses cartoon
characters to advise children and parents about exercise. It has also produced leaflets.These can be obtained from Its
website. Internally, Kellogg uses Its in-house magazine to promote the message.

Conclusion
Kellogg knows from research that a balanced diet and regular exercise help people stay healthy. It is communicating
this message through its brands and promotions.
Issues for discussion
* Explain what is meant by a premium brand.
* Describe the difference between an aim and an objective.
* Outline the purpose of Kellogg's work wIth the asa.
* Using examples to support your dialogue, evaluate how kellogg communicates and discuss how this enables It to
position Its brand.

Case 3: continuous improvement within an organization introduction

Leyland trucks is part of a US company called Paccar inc. It makes trucks under the daf brand at Leyland, near
preston, as well as in Holland and Belgium. Leyland aims to gain a 20% market share. It has a strategy to help It reach
this target. this is a set of plans linked to Its aims. Sometimes a business can improve by taking a giant leap forward.
leyland trucks improves through many small steps. This system of continuous improvement is called 'kaizen'.
Kaizen:
A Kaizen action is one designed to bring about improvement. Often this involves teams meeting to see where
problems might lie. Lots of these small steps can lead to big improvements. a good example is Leyland's introduction
of robots in Its paint process. Before going ahead it is made sure that It had the views of everyone who had been
involved in a previous change and learned from this. continuous improvement is vItal for leyland to meet Its targets,
keep customers happy and stay competitive. Added efficiency also keeps costs down and helps to protect jobs.
Setting goals:
Leyland sets Itself targets. It uses measures to see if It is reaching Its goals. These are called key performance
indicators (kpis). Leyland clusters its kpis under themes. These are:
on-time performance
productively
quality, using a quality index target
financial pleasures
stock control
health and safety
kaizen

Information from these kpis is charted. Managers can see from charts how close they are to targets and set new targets.
kaizen is measured through a statistical tool called six sigma.
Culture:
Culture describes the way in which a business works. The culture at Leyland trucks is one of continuous

improvement. It is based on all being involved. Everyone is trusted to take part in the process and to contribute where
they can. Its values are based on team building and training. It involves everyone in decision making and gives them
responsibility and power. It encourages everyone to try out new ideas. People 'live the values' every day by sharing
working in teams and celebrating success.
Kaizen in action:
The success of kaizen can be seen through a recent example. In May 2006, a kaizen, event was held in the vehicle
finishing part of the plant. a team of project leaders worked with other staff. All tried to spot problems and suggest
solutions. This led to more than suggest solutions. this led to more than greater efficiency in a number of areas.
200 ideas for improvement and greater efficiency in a number of areas.

Conclusion:
For leyland trucks, kaizen is a key part of Its success. kaizen has helped It to achieve results across all of Its kpis. in
2006 alone, there were:
multi-million pound savings from six sigma
a rise in on-time delivery to 95%
a fall in both defects on unIts and injuries.
Issues for discussion:
1. What is kaizen? i low is this different from a one-step leap forward?
2. How is kaizen expected to help leyland trucks to increase Its market share?
3. How does leland trucks measure Its continuous improvement? can you suggest k
kpis for another type of business organization e.g. a retailer or a leisure centre?
4. Why is continuous improvement most likely to be achieved in a company with a
culture of trust'? Start your answer by explaining what is meant by a culture of trust.
Case 4 : Managing risk through effective. Team-based decision making
Introduction:
RWE power is an integrated energy company. It is the third largest supplier of electricity, through Its npower brand
and one of the largest electricity generators. It is part of the RWE group, which is one of the largest European energy
utilities. Energy companies have a responsibility to maintain supplies of energy 24/7. This means that they have to be
aware of and manage risk. there is a risk involved in all business activity. Managing risk successfully means striking a
balance between risk, cost and returns.
Importance:
RWE npower is an important contributor to the economy. It provides jobs, helps people maintain and increase their
standard of living by supplying energy and invests in large capital projects.The most visible face of the business is Its
huge power stations but It is also involved in developing alternative forms of energy such as biomass plants and wind
farms. It seeks green or sustainable solutions to problems wherever possible.
Types of problems:
There are different types of business problems and therefore different solutions to them.
Deviation problems are where targets are not hewing met. Problem solving in this case is centered on closing the
gaps.
Improvement problems. Here solutions need to address how the business can become for example more efficient or
greener.
Open-ended problems where conventional solutions will not work. Solutions are generally linked to the idea of
'thinking outside the box' i.e. coming up wIth new and untried ideas.
Engineers at RWE npower have to handle these problems all the time. In the first two cases, there are often proven
techniques and solutions which can be worked out in teams. Team work brings together engineers with different skills
and experience. Teamwork encourages team members to bounce ideas off each other so can be fun as well as leading
to solutions have saved rwe npower millions.

Creative problem-solving:
This is linked to open-ended problems. New solutions mean new risks, however, and engineers need to understand
these. They have to take into account possible costs and health and safety issues along with the technical aspects of the
solution. Solutions must take into account the needs of the customer. For example, small defects in turbine blades in
power stations are inevitable during their working life. When these are reported, managers need weigh up the various
options repair, up the various options (shutdown, repair, replace etc.), the first priority is health and safety, but then
they consider commercial criteria, including cost and customer needs.

CONCLUSION
A detailed description of perceptions of parties with special references to job motivation was a major
concern in this research study. Management perceptions of job motivation have been compared with perceptions
of employers associations and employees and the union. Underlying these comparisons, there is cultural
diversity, with significant difference in workplace job motivation.