I feel that Maslow’s hierarchy of needs helps to explain the new approach taken by both companies because they are fulfilling the female employees needs of “the basic requirements of continued biological existence.” Prior to this the employee’s needs of wanting to be at their “son’s school concert” or working flexibly during their maternity leave were not met. Now they are met they will help to motivate, as the employees will feel a greater sense of loyalty towards the company hence they will work harder.
Frederick Herzberg’s two-factor theory also helps to explain the new approach taken by Asda and the Midland Bank. His theory distinguishes between motivators and what he called hygiene, or maintenance factors. The latter do not give positive contentment, but their absence will cause dissatisfaction. The use of the word hygiene can be explained by contemplating it in its normal usage. If you disregard to clean the kitchen, you will eventually endure the consequences. However, if the kitchen is thoroughly cleaned and therefore hygienic, it does not guarantee good health. Herzberg’s hygiene factors include pay, conditions, supervision and pensions. These have to be satisfactory to obtain effort from the workforce, but they alone are not enough. In other words, they are necessary but not an adequate enough condition for motivation.
Herzberg’s motivational factors assimilate with social needs, self-esteem and self-actualisation in the Maslow hierarchy. The motivators are innate to the work and include a sense of achievement, autonomy, responsibility and recognition. Translated into practical management, Herzberg’s theory led to the concept of job enrichment. This involves giving the individual employee greater freedom by removing some of the hierarchical authority. By enriching the job, management seeks to increase employee motivation.
McGregor’s theory X and theory Y also help to explain the new approach but only partly. In “The Human Side of Enterprises” Douglas McGregor compared two sets of presumptions about workers' attitudes to work and responsibility. Theory X depicts the “economic man” characteristic of Taylor's scientific management. The theory X employee is, therefore, a disinclined worker who has to be compelled and given rewards. The theory Y worker prefers autonomy, responsibility and gains a sense of achievement from work. It is important to realise that McGregor was not saying there are two types of worker. Instead he argued that managers have these two conflicting sets of assumptions about workers and this instils their management of the workforce.
Recognition of the negative theory X view of workers resolve in; repressive leadership, traditional organisational structures, centralisation and decision-making, scientific management, a stress on extrinsic factors meaning pay and punishment.
Acceptance of the more positive theory Y results in: a constitutional or even free rein style of leadership, more flexible structures, decentralisation of decision-making, a search for relevant ways for motivating the workforce, a stress on factors intrinsic to the work itself.
McGregor’s theory Y worker is probably how Asda and the Midland Bank see their workers. I say this because as mentioned above if the manager accepts that the employees are in the theory Y then it will lead to the managers “searching for appropriate ways to motivate the workforce” and creating a “more flexible structure”. Both companies are motivating the workforce (especially the women) and creating a more flexible structure by allowing the women employees to feel that they are being rewarded for doing the work by allowing them to lead their family life as working.
Both companies have realised that by having a motivated workforce they will have higher productivity levels, lower labour turnover, lower absenteeism, and greater willingness to accept rather than resist change and a greater willingness to contribute ideas and take on responsibility. All of these above factors are greatly beneficial to the companies. They have also realised that motivated workers are keen to be at work, take pride in their work, do not display negative attitudes towards the organisation, display a high level of commitment and get satisfaction out of their work.
By taking these new approaches they are enriching their employees jobs, empowering them by letting them work flexibly. The workforce will be committed to the aims of the firm.