ASSIGNMENT 2 FRONT SHEET

Qualification BTEC Level 4 HND Diploma in Business

Unit number and title Unit 4: Leadership and Management (5036)

Submission date 21/12/2022 Date received (1st submission)

Re-submission date Date received (2nd submission)

Student name Pham Thi Khanh Linh Student ID GBH210790

Class GBH1109 Assessor name Dinh Thi Ngoc Cham

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Table of Contents

1. Introduction.....................................................................................................2

2. Motivational strategy.......................................................................................2

2.1. Motivational theories................................................................................2

2.2. The main effects of motivation on organizational performance..........4

2.3. Motivational strategy for Ernst & Young to improve the performance of the
organization......................................................................................................4

3. Performance management for continuous improvement..............................7

3.1. The concept of performance management.............................................7

3.2. Performance management approaches..................................................8

3.3. Practical examples....................................................................................8

4. Conclusion.......................................................................................................9

References..........................................................................................................10
1. Introduction.
Following the success of a large company will always consist of thousands of factors, one of which can
say performance and motivation management strategies are a very important part of company
management. A company with a proper and effective performance management strategy will make
employees more motivated to work and improve the performance of each individual, further dilating the
collective motivation and the overall look of the panorama. This report comprehensively investigates these
fields both in theory and practice through the specific applications in various organizations. In particular,
the paper will focus more on the performance management of Ernst & Young (EY), a major audit firm. In
addition, a detailed and comprehensive motivational strategy tailored to EY will also be developed to
increase the performance of employees within the company.

2. Motivational strategy.
2.1. Motivational theories.
Motivation theory is the study of how to learn and comprehend what motivates a person to achieve a given
outcome. This theory has various applications, including in psychology and sociology, but it is also crucial
in business, particularly in management. Anyone may understand what activities can drive others to work
harder or care more about something by researching this, whether through a reward or another aspect.

Content motivation theories involve identifying individuals' needs, their relative strengths, and the goals
they aim to achieve. Content theories include:

 Maslow's Hierarchy of Needs Theory: One of the commonly cited theories of working motivation
is Maslow's hierarchy of needs. This motor theory, developed by Abraham H Maslow, states that
humans have a hierarchy of needs and they work their way through these needs. This hierarchy
suggests that people are motivated to meet basic needs before moving on to other, more advanced
needs. When each need is satisfied, they move on to the next demand. Five needs in Maslow's
workforce theories: Physiological Needs, Security and Safety Needs, Social Needs, Esteem Needs,
and Self-Actualization Needs (Vaughan, 2022).
 Herzberg's Two-factor Theory: Herzberg's motivation theory, also known as the two-factor theory
or hygiene theory, is one of the more famous employee motivation theories. It suggests that
 individuals have two types of work needs - Hygiene and Motivation. Sanitation refers to a person's
work environment, including working conditions, salary, and workplace relationships while
Motivation is a factor that motivates people to work harder - recognition, promotion, and
achievement. Herzberg suggests that if people are unhappy at work it is due to the work
environment and when they are happy with the job then it is because they feel satisfied or
motivated (Vaughan, 2022).
 McClelland's Achievement Motivation Theory: David McClelland's motivation theory of
management suggests that each person has three basic needs: the need for power, achievement, or
affiliation. According to McClelland's employee motivation theory, a person's specific need has a
substantial influence on their conduct. Power, Achievement, and Affiliation are all needs. One trait
is generally dominant, however, others might be found in a person (Vaughan, 2022).

Process motivation theories were developed to investigate the link between the variables that generate
motivation and the actions required to impact behavior. Process theories include the following:

 Vroom's Expectancy Theory: Victor Harold Vroom developed the Expected Motivation Theory to
provide light on how individuals act in the workplace, particularly when it comes to motivation,
leadership, and decision-making. This hypothesis is based on the premise that the higher the value
of results, the more driven employees are to obtain them. Employees that put in a lot of effort to
achieve will get a well-deserved prize. Expectancy Theory employs three factors to relate
motivation, effort, and performance: Expectations, Instruments, and Values. The dynamic chain is
made up of these three variables. Employees will be unmotivated to work if one of these linkages
is broken. (Channell, 2021).
 Adams' Equity Theory: Adams' Equity Theory of Employee Motivation (also known as the Equity
Theory of Motivation) posits that employees are motivated when they believe they are receiving a
fair reward for their work. J. Stacey Adams originated this idea in 1963, and it has since been
utilized to understand employee behavior and motivation. This theory suggests that employees
become non-motivated, both on the job and with employers, if they feel that their inputs outweigh
the outputs they receive. Staff members may react to this in different ways and may manifest a loss
of motivation, decreased effort, irritability, or even disruptions. Adams' Theory of Equity suggests
that employees should compare their inputs and outputs (Green, 2022).
  Locke's Goal-Setting Theory: Edwin A. Locke, an American psychologist, established goal setting
theory. This theory seeks to better understand the relationship between goal setting and motivation
and performance. People and teams may then utilize that insight to assist employees to achieve
their goals more successfully. Clear, defined, and hard goals, according to this hypothesis, are
more motivating than ambiguous or simple ones. Highly motivated employees are more likely to
achieve their objectives (Tocino, 2019).

2.2. The main effects of motivation on organizational performance.

Most employees want motivation to feel good about their professions and perform well. Some employees
are driven by money, while others are motivated by recognition and awards. Employee productivity is
directly affected by motivation levels in the workplace. Workers that are motivated and enthusiastic about
their employees do their duties to the best of their abilities, and output levels rise as a result. Employee
motivation is defined as a driving factor that propels people toward achieving certain organizational goals
and objectives. It is currently one of the hottest concerns in companies since every business wants to make
the greatest use of its financial and human resources. Employee motivation is a job that every manager
must do in addition to other management duties. A manager must be a friend and motivator to his
subordinates. Motivation is beneficial in many parts of life, including family life. The same is true in
business. This strongly shows that motivation is crucial. It is an essential component of the management
process (Sharma, 2019).

2.3. Motivational strategy for Ernst & Young to improve the performance of the
organization.
At EY, their goal is to build a better world of work. The insights and quality services that EY provides
help build confidence and confidence in capital markets and economies all over the world. They develop
excellent leaders who work together to fulfill the promise of the company to all stakeholders. In doing so,
EY plays an important role in building a better working world for employees, customers, and the
community.

EY's social, cultural, and organizational variables along with the company's goals:
  EY values its employees very much and they always appreciate the contributions of each
individual in the company. This makes EY employees happy with what they get compared to what
they have to spend.
 Maintaining Sustainable Audit Quality: Internal testing is also performed on the audit
commitments every year. EY's leadership carries out its annual Audit Quality Review (QAR)
program as an important factor to evaluate the quality control system at member companies,
regional and global levels.
 Quality assurance: EY invests in Quality functions and Professional Practice functions in all
geographic areas to advise, support, and facilitate EY staff as well as to implement high-standard
quality improvement initiatives consistently around the world.
 Special developments shortly: The continued disruption from the COVID-19 pandemic means
business leaders continue to seek to identify and seize emerging opportunities that can deliver
lasting value.

(EY, 2019)

A unique motivational technique is provided below to successfully handle all of EY's motivating variables
and boost performance. This plan will provide methods for promoting both financial and non-financial
products. This incentive method is also suited to the EY characteristics and goals stated above.

Financial:

 Pay and allowances: At Ernst & Young (EY), the highest-paid job is the Sales Director with
$226,158 annually and the lowest salary is the CS Representative with $46,078 annually. 535
employees at Ernst & Young (EY) rank their Salary in the Top 40% of companies of similar size
(Carmine, 2021). Wages contributed by Ernst & Young's (EY) staff include job titles such as Chief
Engineering, Chief Engineer, Architect, and Senior Developer. However, the schedule for working
in EY's work pressure is significant. Thus, the increase in wages and allowances is perfect in the
current context. EY may consider increasing by 4% each year, instead of the same 2% from 2016
to 2020.
 Bonus: EY (Ernst & Young) pays an average of $4,647 in annual employee bonuses. Bonus pay at
EY (Ernst & Young) ranges from $1,017 to $19,653 annually among employees who report
 receiving a bonus (Payscale, 2021). Even though the current level of reward at EY is right top
compared to the company on the same day, however, to create motivation for employees to strive
for good performance in the process of work, the bonus is a very effective solution. In addition, it
was also a decision to raise the level of enterprise and develop strongly.
 Productivity-linked wage incentive: Another effective way to increase employee motivation is to
link salary to productivity. The more productive employees are, the more wages they will receive.
This salary will be measured to match the work productivity of each individual. With this method,
employees will be more motivated to try because they know that if they work more productively,
they will receive more salary.
 Retirement benefits: Pensions are also a way to increase employee motivation. This ensures that
employees are paid even when they leave. In addition, EY may also work with a large partner in
the field of banking and finance, to create a saving passbook or incentives for employees. Let them
be happier with what they've received in comparison to what they have contributed.

Non-financial:

 Company culture: As one of the largest companies recognized by the "Great Place To Work"
certification, employers create an outstanding employee experience. EY exists to build a better
world of work, to create lasting value for customers, people, and society, and to build trust in the
capital markets. Backed by data and technology, diverse EY teams in over 150 countries deliver
trust through assurance and help. The culture is great, so EY needs to develop and maintain a
strong position at the moment.
 Career advancement opportunities: Human potential ambition is constantly evolving, so for each
individual also desires advancement in work and career. As such, EY will need to present a perfect
advancement roadmap and build individual skill development programs. For example, similar to
EY Tech's MBA Program, offered in conjunction with Hult International Business School, has
been helping EY staff develop both thinking and skills to overcome the challenges ahead (EY,
2022). Through an innovative virtual learning model, MBA allows their employees to develop the
technology, leadership, and business skills they need from every corner of the world, in a truly
relevant way. EY needs to develop and innovate many similar platforms as MBAs.
  Recognition: Recognition from superiors is critical for increasing employee engagement in the
workplace. Individuals' self-esteem improves as a result of organizational recognition, and they are
more motivated at work. As a result, when staff does well, EY must appropriately acknowledge
them. Along with that, the organization should diversify its methods of employee recognition.
Creating prizes for outstanding workers, for example, or holding employee award ceremonies, will
be an effective method to boost their motivation.
 Brand benefits: A brand can also be understood as one of the non-financial benefits that EY can
offer. EY staff is not only trained in special courses but also the basic learning and essential
competence. So teaming up with EY, or one could say that an EY employee, was, there was a
certain kind of environmental impact in the field of audits and the whole economic field as a
whole. Enhancing image through core values is an integral part of an employee. EY was able to
develop in parallel on the other hand, which was equally brand-developing.

3. Performance management for continuous improvement.

3.1. The concept of performance management.
Definition: Performance management is a corporate management technique that assists managers in
monitoring and evaluating workers' work. Performance management seeks to provide an atmosphere in
which employees may maximize their potential and achieve the best quality most efficiently and
effectively (Tardi, 2022).

Purpose: A robust and reliable performance management system always strives to improve overall
organizational performance. It is accomplished by controlling the performance of teams and people about
the overarching organizational aims and goals. It has several beneficial effects on how a firm does
business (Idjoski, 2021).

Some benefits of performance management:

 Respond to work openly and transparently.

 Direct links between performance and compensation.
 Recognition and reward of good performance.
 Encourage teamwork, collaboration, and communication.
  Ensure that every employee achieves their SMART goals.
 Identify all areas of development.
 More respect than substitution.

(Idjoski, 2021).

3.2. Performance management approaches.

Performance management may be approached in a variety of ways. Currently, major corporations adopt
one of two approaches: the traditional approach or the continuous approach.

Traditional performance management: This is a traditional method that defines performance management
as a series of actions that evaluates an employee's performance over the course of a year. Its goal is to
assess an employee's performance over the course of a year, after which the individual receives an
assessment letter. Some would call it a yearly evaluation cycle. Typically, performance evaluations are
limited to pay increases and incentives. There is very little opportunity for any form of progressive
discourse. In this approach, managers rarely have direct conversations about employee progress
(Ganeshkiran, 2022).

Continuous performance management: In the context of human resource (HR) management, continuous
performance management is the supervision of an employee's performance through one-on-one talks and
continual feedback from supervisors during regularly scheduled check-ins. It happens more frequently,
provides more flexibility, and is less formal than the standard, yearly employee assessment process, even
though both forms of evaluation attempt to improve performance and monitor personal and organizational
goals. In this performance management approach, employees support each other with a variety of real-
time performance feedback. (Wallack, 2018).

3.3. Practical examples.

EY is backed by data and technology, and EY's diverse teams in over 150 countries deliver trust through
assurance and help our customers grow, transform and operate. They flexibly apply a continuous approach
to the performance management process (McCord and Hamm, 2015). In particular, EY 2017 announced a
new range of global talent programs designed to prepare its workforce and business operations for the
future, including LEAD, a new global model for career, development, and performance. LEAD has a new
digital personal dashboard that provides an intuitive way for EY employees to see their feedback from
teams and track their progress in real-time. LEAD also used the new gold standard of performance
measurement, which focuses on how an individual can aspire to a higher level of achievement to be the
best he can be. At the end of each year, EY employees receive individual summary reports that show a
consolidated view of all performance feedback as well as indicators of how they perform against peers and
the gold standard. LEAD was part of a wider organizational effort to prepare bj for EY's entry into the
future.

Similar to EY, Deloitte is also one of the largest accounting and professional services "Big Four"
organizations in the world. Deloitte succeeded in applying a continuous approach to the performance
management process (McCord and Hamm, 2015). Specifically, according to Jagannath (2022), Deloitte
constructed a new system for performance appraisal, which is the conversations focused on the analogy.
The conversation has been touted as the biggest jump in Deloitte's reinvention of the performance
management system. The new performance management system has developed as follows: Tracking
Organizational Goals, organizational goals are shared well with organizational employees; Responding
regularly, old performance management methods focus on the good or bad performance of employees;
Developing employee leadership, Deloitte has changed their way of managing performance. A
transformation is a development tool rather than a benchmarking device.

4. Conclusion.
Theories of motivation and performance management approaches have been presented above. Together,
EY and other companies operating in the same industries serve as a practical example to clarify
approaches. A motivational strategy tailored to EY has also been put in place to help them maximize
employee performance. Through this study, it was found that EY was successful in building a strong team
of employees, along with great development in all aspects of the company.
References

Carmine (2021) Ernst & Young (EY) Salaries, Comparably. Available at:
https://www.comparably.com/companies/ey/salaries (Accessed: December 21, 2022).

Channell, M. (2021) Vroom’s Expectancy Theory: How to Motivate Staff and Increase Performance, TSW
Training. Available at: https://www.tsw.co.uk/blog/leadership-and-management/vrooms-expectancy-
theory/ (Accessed: December 21, 2022).

EY (2022) “Personalized career development,” EY, 11 October. Available at:

https://www.ey.com/en_vn/careers/personalized-career-development (Accessed: December 21, 2022).

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21, 2022).

Sharma, Y. (2019) “Impact of Employee Motivation on Performance,” Linkedin, 13 January. Available at:
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Tocino, J. (2019) What is Locke’s Goal Setting Theory of Motivation?, PositivePsychology.com. Available
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Wallask, S. and Ring, D. (2018) “continuous performance management,” TechTarget, 31 December.

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