U.S. BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 1 Running head: U.S.

BANK’S MANAGERIAL MOTIVATIONAL APPROACHES

Overall nice paper. Some minor APA errors and references could have been used more throughout to support statements, etc.

U.S. Bank’s Managerial Motivational Approaches Ken Hedberg 335 S. 42nd St. Springfield, OR 97478 (541) 221-2760 khedberg126@yahoo.com GM591: Leadership & Organizational Behavior December 6, 2011 Brett Gordon

investment.U. Bank employs over 61. The organization operates 3.S.S.086 offices. 2010). brokerage. there are opposing forces in action. the 5th largest commercial bank in the United States. a Credit Analyst within the Commercial Banking Division of U. Minneapolis-based U.S. Bank.S. mortgage. Continually motivating employees within the Commercial Banking Division to promote growth while maintaining high credit quality within the lending portfolio is a constant focal point and challenge in a manager’s daily activities. While this might seemingly be a simple task. U. Bancorp acts as the foundation of all commercial loans that are processed and submitted for approval. Specifically. insurance. Critical duties include investigating and analyzing credit. In addition to offering a wide array of products and services. as well as making recommendations and decisions regarding the extension of credit. Bank National Association. 5.S. businesses and institutions.S. trust. Additionally.S. Bancorp (NYSE: USB) is the parent company of U. Bank’s Managerial Motivational Approaches Founded in 1863. the goal to make high quality loans in order to . BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 2 U. A Credit Analyst monitors customer accounts and loan portfolios in order to maximize credit quality and minimize risk and potential loss. and payment services products to more than 17 million different consumers. The goal to grow and make loans is fairly straightforward. and provides a comprehensive line of banking.000 people in a number of different roles (U.086 ATM’s in 25 states.

Thus.S.U. Bank? This applied research paper explores different motivational theories and the approaches to motivation and success/productivity of individuals in key managerial positions of U. motivation – or lack thereof is directly linked to an employee’s productivity. what is the relationship between motivational approaches used by management and employee productivity within the Commercial Banking Division of U. Bancorp.S. Battling such As can challenges can directly effect an employee’s motivation. Discovering what theses motives . partner these two objectives. the question must be asked. employees are challenged with the approver’s and their own perception of risk.S. their effort will go unnoticed. people possess a deep innate desire to be productive and accomplish more than they thought they could and other times that desire fizzes. these two objectives are inherently at odds with one another. The availability of qualified loans that possess the In the continual battle to low risk characteristics is minimal. It can seem as if no matter how This desire – hard one works. However. be expected. each manager has different approaches and tactics when it comes to motivating employees on a daily basis and during times of low moral. “Motivation is crucial for good performance and hence it is important to study what motivates employees for better performance” (Rai. BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 3 minimize risk and potential loan losses is also straightforward. as well as their respective level of acceptance for risk. 2004). Frequently.

2007) and consist of Maslow’s hierarchy of needs theory.S. 1999) and “recent developments have proven that old management models – hierarchical structure. new approaches and theories regarding their connection are . tight control – are not effective” (Rai.” (Österåker. naturally. autocracy. equity theory. expectancy theory. motivational theories can be categorized into two general types – content theories and process theories. Alderfer’s ERG theory. both types can provide a unique perspective to motivation. Keeping in mind that these historical theories of motivation and productivity might be out dated. organizations. neither provide a full explanation and both fail to be 100 percent effective. 2007) and consists of the goal-setting theory. “Content theories profile different needs that may motivate individual behaviors” (Schermerhorn et al. and many more. BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 4 are can be difficult and. however. There has been ample research on the connection between motivation and productivity and an abundance of theories to support what motivates an employee to work hard and be productive. departments. “Several studies show that our needs While constantly change within the individual employee and between people. and several more. Herzberg’s two-factor theory. vary from individual to individual. cultures.U. 2004). “Process theories examine the thought processes that motivate individual behavior” (Schermerhorn et al. etc.

which leads the employee to enjoy their work. 2007). “happy employees are productive employees. Consequently. “Extrinsic rewards are valued outcomes given by some other person.” (Schermerhorn et al. “Intrinsic rewards are valued outcomes received directly through task performance” (Schermerhorn et al. 2007). 1994). which consists of intrinsic rewards and extrinsic rewards. Some researchers believe intrinsic reward systems encourage productivity and suggest that “when a task is relatively complex for an individual. 2005). Essentially. proximal goals in addition to a distal goal should be set because they increase one’s self-efficacy” (Latham & Seijts. “giving employees permission to enjoy their work and knowing that senior management welcomes it boosted moral considerably” (Rose.S.” The other side to the reward system is extrinsic rewards. One area explored in more depth is the reward system. This empowerment creates pride and ownership within an employee and leads them to perform at a high level. 1999). Other researchers believe . BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 5 needed to better understand their current association within the workplace.U. This approach empowers an employee to have confidence in “their capabilities to produce designated levels of performance that exercise influence over events that affect their lives” (Bandura. It is widely believed that positive reinforcement and the power of a ‘thank you’ is under used in today’s business environment and if encouraged more would increase productivity.

Regardless of which type of reward system an organization emphasizes it should utilize both. but will only be as successful as how well management knows what motivates their employees.S. “The concept of motivation is invariably linked with the notion of reinforcement or reward. “Not only does each field have its particular interpretation. organizations’ understanding of motivation has been hindered by the wealth of theories. “The link between performance and motivation started with the notion that financial rewards improve performance” (Rai. the organization’s approach to motivation must continue to change as well. 1981). to explore the connection between motivation and productivity discovers additional theories and approaches which opens the door to more theories and approaches. 2004). However. Ironically. but there are ample subdivisions within each discipline” (Steel & König. 2004). The extrinsic rewards approach has been explored to such an extent that it has been concluded that monetary incentives are the only thing that truly motivates employees. or motivation. 2006). Our . 2004). an organization’s employee landscapes change. which leads researchers back to the original conundrum of what motivates employees. “some management experts argue that money only motivates people who are already motivated” (Rai. desire.U. Continuous improvement and change As have become imperatives for every organization” (Rai. BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 6 that extrinsic incentive systems and “the availability of rewards is a necessary condition of motivation” (Leidecker & Hall.

S. Management’s expectation is that a Commercial Banker will be able to produce ample qualified opportunities year after year within a specific market area. a challenge a Commercial Banker faces is finding qualified opportunities that lack risk. A manager’s primary objective when motivating their employees should be to dive into their employee’s personalities and discover how each employee is motivated and then utilizing that knowledge to promote productivity. takes its toll on an employee’s moral. What is contributing to Commercial Banking employee’s lack of motivation? As previously mentioned. As a .U. When applied to the original problem statement. an approach. What motivates one employee in a specific work environment might not motivate another. this information can assist a manger in concluding on a solution or at the very least. The aforementioned theories and approaches to motivation provide a brief understanding of a vast topic – the connection between motivation and productivity. BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 7 While this seems like a vicious circle the common theme in the connection of motivation and productivity is variability. When Commercial Banker’s work hard to negotiate a deal with a prospective customer all to be turned down by the Credit Approver’s. The past five years have proven this to be more challenging and unrealistic than in the recent history as the recessionary condition the United States economy has experienced. The starting point for finding a solution to the stated problem is to evaluate the cause of the problem.

Bank is a cash flow lender.S. However. However.S.S. Bank is low.S. a Credit Approver might not. A second related issue is management’s ability to set realistic performance goals. problem with this? What’s the Well.S. For example. U. BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 8 manager. Bank takes.15. Bank apart from its competitors and makes them one of the safest banking in the United States – their loan losses are minimal.25 coverage ratios. Setting the coverage ratios higher than the industry standard is what set U. the objective standard set forth by U. A business owner might be fully satisfied with having a cash flow coverage ratio of 1. this is the general idea behind running any company – to make a profit. Bank would desire 1. objective. Bank sets an expectation that companies should not only cover their expenses but cover their expenses with a surplus. establishing realistic expectations is essential in order not to contribute to the demoralizing credit approval process. This mitigation is completely What the Credit Analyst might think provides more than enough mitigation.S. unless the Credit Analyst can provide sufficient mitigation to the risk. The majority of commercial loans are based on the prospects ability to generate enough cash flow to cover their expenses. Yes. of loan growth suffers. the supply of companies that meet the Therefore. whereas U. the level of coverage is what differentiates a business owner’s approach to cash flow and the approach U. On top of the eternal quest to .S.U. U.

but the realized result can be the opposite – enter the Set-Up-To-Fail Syndrome. setting realistic goals. While these problems – no challenges . “The link between performance and motivation started with the notion that financial rewards do help improve performance” (Rai. reviewing.S. A Commercial Banker is expected to make each relationship as profitable for the bank as possible. . a Commercial Banker is tasked with maintaining.are apparent in the daily operations of a Commercial Banker. and establishing consistent expectations. Three It possible solutions to maintaining a high level of motivation would be to re-evaluate incentives. Does each corporate customer have a Does each customer have The process of corporate payment system set up? checking. For a manager to set goals that include current customer relationship growth and new customer loan growth can be overwhelming and seemingly out of reach.U. As previously mentioned. saving. BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 9 obtain new relationships to grow the loan portfolio. 2004). and/or investment accounts? developing a deeper relationship with existing customers can be time consuming and difficult. Some manager’s within the bank believe that a paycheck should be incentive enough to come into work and put forth 100 percent day in and day out. and growing the existing relationships within the loan portfolio. is acknowledged that the primary purpose of these goals is to push a Banker to perform. a manager should be looking into how to cure or lessen these challenges.

S. 2.S. as oppose to annually. Specific goals are more likely to lead to higher performance than are no goals or vague or very general ones. Bank – A Credit Manager. This would allow manager’s to review their employee’s perception of the goals and determine their level of motivation to achieve them. in order to set and revise short. . “Difficult goals are more likely to lead to higher performance than are less difficult ones. Based on conversations with individuals in key managerial positions within U. “Goal setting is the process of developing. A Division Credit Approver. negotiating. but if the goal is easily achieved it can have the same effect. Therefore. it could be de-motivating in and of itself. setting can be condense into five points: The process of goal 1. A second solution would be for manager’s to set realistic goals. and formalizing the targets or objectives that a person is responsible for accomplishing” (Schermerhorn et al. is a tricky solution. 2007). and the CEO – an incentive system only motivates employees who are already self motivated. BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 10 Others adhere to the intrinsic motivation of having pride in one’s work or the desire to be the best in a specific position.U. a manager needs to assess his/her employee’s abilities on a more frequent basis.and long-term goals and objectives. This If a goal is too difficult.

a manager needs to be proactive is maintaining a consistent set of expectations. A third solution would be for management to establish consistent expectations. they need to be proactive and hold the credit approvers accountable for being consistent as well. In addition to managers striving to set consistent expectations themselves. 5. 2007). . BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 11 3. Task feedback. which would increase the moral of Commercial Bankers. or knowledge of results. When this situation occur on a regular basis. Goals are most likely to lead to higher performance when people have the abilities and the feelings of self-efficacy required to accomplish them. A commonly used phrase in today’s While business banking world is “the only constant is change. Goals are most likely to motivate people toward higher performance when they are accepted and there is commitment to them” (Schermerhorn et al. Consistent expectations would eliminate the demoralizing situations and streamline the approval process. the method in which to used when approaching certain prospects is blurred and the Commercial Banker’s become demoralized.U.S. All too often a Credit Analyst will be directed by one credit approver to approach a prospective deal is specific fashion then to have another credit approver completely contradict the initial direction. 4.” this can seem very true at times. is likely to motivate people toward higher performance by encouraging the setting of higher performance goals.

however. which resulted in him having a vast comprehension of the banking culture. the more to his desire to learn. The CEO of U. BANK’S MANAGERIAL MOTIVATIONAL APPROACHES 12 This paper has contributed to the authors understanding of the connection between motivation and productivity. their insights and perspectives are intriguing and rewarding. The Credit Manager attributes his motivation to He always strives to be the best at what he competitive spirit.U. Bank attributes his success In the beginning of his career. The Senior Credit Approver’s motivation comes from a deep-rooted pride in his work and how he conducts business. is tasked with and this is evident in his professional success and personal accomplishments.S. Theses three individuals provided a unique perspective. The most beneficial aspect of this paper was the author’s interviews with the individuals in key managerial positions at U. Bank.S. he learned the more he was motivated to seek more knowledge.S. Manager’s can help and encourage motivation but employees must have an internal motivation and desire to truly be productive and successful. Although their contributions are not specifically referenced in this paper. . they all had a common theme – people do not motivate people.

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