An alternative theory is Hertzberg’s theory, Hertzberg suggested that there are motivating factors and de-motivating factors which need to be considered in order to get the best out of the work force, Hertzberg suggested:
Motivating factors
Sense of achievement, Chance of promotion, Responsibility, Nature of the job itself Recognition of management.
De-motivating factors
Pay, Working conditions, Company rules/policies, Fear of redundancy, Treatment at work, Feeling of inadequacy.
However a criticism of these theories is that it is not specific, for example no two employees will have the same wants and needs therefore to say that, for example each and every employee is motivated by responsibility is too general. As I have mentioned earlier it would be best for the company to talk to their employees and identify what motivates them so they can get the best out of the employee.
Airbus offers many incentives for their employees, for example:
Rewards after 20 and 40 years of continued service.
Pension schemes
Company cars
Discounted car schemes with Rover
Health care scheme
Social club, for example health and fitness
Airbus states people as their “greatest strength” they are driven to provide an attractive business and stimulating work in order to ensure that all their employees give 100% for the good of Airbus. Employees are never kept in the dark over Airbus’ movements and any change of direction that the company contemplates is told to the employees. Airbus offers a wide number of opportunities to encourage motivation and ensure that employees are completely committed to the cause. Some of the initiatives set up are described below:
SAYE: Save As You Earn was implemented so that employees can buy shares in Airbus itself and also have a regular saving scheme the shares are offered at a cut price, alternative to that of the share prices on the stock exchange. Airbus employees are given around a 20% discount on shares. Employees are then offered a 3 or 5 year option and save a sum of money each month for that time period. When this time is up the employee receives an additional cash bonus along with their savings. The cash that is saved can then be used to buy shares in Airbus at the cut price, or simply take the money and do with it what they wish.
BAe Pension scheme: Airbus offers a pension scheme based on the salary of the employee at retirement.. Employees are offered a 3%,5% or 7% saving on their salary. There is no age restriction to when employees can enter the scheme, it is available to each and every employee. If an employee dies, money is given to any nominated person or any surviving spouse.
Profit sharing scheme: Airbus rewards its employees with financial incentives as the better the company performs, the better incentive is given. The bonus can be used as shares or simply cash.
Orange mobile phones: Airbus holds a stake in Orange and as a result of this partnership Airbus employees are given discounts on various products and services.
Personal Development Plan: Employees have a development plan which is initiated by the line manager; this is reviewed by both the line manager and the employee itself on a regular basis.
It is essential that Airbus reviews its employees, it is all well and good Airbus implementing schemes and incentives for the employees, however Airbus must be sure that they get a good return for these methods, through the employee achieving a high working standard. A way of monitoring if the employee is working well is through appraisal; Appraisal reviews the employee’s progress through discussion between both the management and the employees. However it is not beneficial if the only time that the management converse with lower down the hierarchy is to appraise, there must be constant communication within the business.
Through the appraisal the management can assess individual’s performance and assess what training is needed for the employee. This will be of benefit for the employee, as weaknesses can be worked on and strengths enhanced. The appraisal can identify weaknesses and strengths and work around these skills, whether it is to train the employee or simply find out what he/ she is good at. There may be problems that restrict the employee from attaining a satisfactory performance level. The appraisal will encourage an increase in performance from its staff as the staff feels valued that the company actually takes interest in what he/ she is doing. The information gained from the appraisal can then be utilized by the human resources team in order plan potential promotion, personal ambition or training requirements. The appraisal will increase communication between the management and its employees, which will in turn lead to an increase in working levels. It takes some element of planning to conduct the appraisal, both employees and the management need time to plan. The employees last appraisal has to be reviewed, in order to see if the employee has moved on and benefited from the last time. The appraisal also needs a good location, for example it cannot be conducted in the middle of the factory as communication levels need to be high. The appraisal would usually take 45 minutes therefore a room needs to be allocated for that time scale, in order to prevent the interview being interrupted. The management should look to monitor the employees performance levels and be able to comment on these performance levels with the employee, for example ask for an explanation to any poor performance or congratulate the employee on good performance. Both the employee and the management have to draw up a set of goals that the employee has to achieve, the objectives should be:
Specific
Measurable
Attainable
Realistic
Time phased
Towards the end of the appraisal the management should summarise the interview, the employee has the chance to look over what was documented from the appraisal and add any additional comments. When they are content the employee should sign the document. Both the management and the employee have a copy of the appraisal and one is sent to Personel for processing.
