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EMPLOYEE MOTIVATION TABLE OF CONTENTS INTRODUCTION 3 MASLOW'S THEORY 4 * Physiological Needs 4 * Safety/Security Needs 4 * Belonging Needs 5 * Esteem Needs 5 * Self Actualization 5 ILLUSTRATION THROUGH CASE STUDY 5 Case Study: Starbucks 5 REINFORCEMENT THEORY 8 * Positive Reinforcement 8 * Negative Reinforcement 9 * Punishment 9 * Extinction 9 ILLUSTRATION THROUGH CASE STUDY 9 Case Study: Mary Kay Cosmetics 9 INTRODUCTION Throughout history, motivation has been as the backbone of success and has been used in activities ranging from war to trade. Consequently, several theories have surfaced, such as McGregor's theory, Maslow's theory, etc with F.W. Taylor's 'Scientific Management' theory being one of the first one to emerge in the early 1900s. . Motivation in the modern age is more imperative than ever before. It is estimated that with the exit of every 10 managerial and professional employees, a company would suffer a loss of about $1 million on average (Fitz-enz, 1997). The reason for the exit of many employees and a high labor turnover is primarily the lack of motivation. Research carried out in this area has proved the following: * Of all the employees leaving a company, 46% do so because of the lack of appreciation for their work * 61% of the employees state that their bosses don't place much importance on them as people. * 88% of the employees believe that there is a lack of acknowledgment for the work they do (Glanz, 2002). Employees play a pivotal role in determining a company's success and the greatest asset any organization has. Profitability of a business is mostly dependant on its employees according to Dr. ...read more.


Starbucks caters to the lower esteem needs of employees by referring to all employees, regardless of the position held in the organization as partners. All the partners in the organization are openly valued and respected and Starbucks also realizes the fact that their success is all due to its invaluable workforce (Starbucks Newsroom, 2010). This is the chief reason behind Starbucks being listed in the Fortune's "100 Best Companies to Work For" list in 2009 for the 11th time. Starbucks helps its employees achieve their higher esteem needs by providing them with extensive training. The 'baristas' (counter help staffs) are given comprehensive training in their job: drink preparation, customer service, retail service and using the cash register. The managers are provided with a higher level training such as store operations, information systems, etc. (Auch-Roy, 2004). Providing training has helped ensure that higher levels of performance are obtained due to the staff members being competent and obtaining mastery in their job. * Self- Actualization Needs: The self- actualization need is more pertinent on the individual himself and less on the external factors. By fulfilling the physiological, safety, belonging and esteem needs of its workforce, Starbucks ensures that the employees have the potential to meet their self-actualization needs. Reinforcement Theory The performance of any individual is quite simply based on two things; firstly, the skills and ability of that individual and secondly, how motivated he/she might be to perform at work. While the former relates to education and experience which a manager does not usually have control over, the latter can be influenced. ...read more.


2002, Handle with care: motivating and retaining your employees, Available at: Google Books, [Accessed 21 March 2010] * "Starbucks' Human Resource Management Policies and the Growth Challenge", 2005, Available at: http://www.icmrindia.org/casestudies/catalogue/Human%20Resource%20and%20Organization%20Behavior/HROB068.htm, [Accessed 21 March 2010] * "Motivation at Starbucks", n.d., Available at: http://www.docstoc.com/docs/9480736/Motivation-at-Starbucks, [Accessed 21 March 2010] * Thompson, A. & Gamble, J. n.d., "Starbucks Corporation", Available at: http://www.mhhe.com/business/management/thompson/11e/case/starbucks-2.html, [Accessed 21 March 2010] * Auch-Roy, H.2004, "The Starbucks Corporation: Past, Present and Future", Available at: http://www.calarosbay.com/files/StarbucksCaseStudy.pdf, [Accessed 21 March 2010] * Wilson & Thomas, B. "Building a Unique Total Rewards and HR System For A Unique Company At Starbucks", Available at: http://www.wilsongroup.com/ecr/case/Starbucks.pdf, [Accessed 20 March 2010] * Starbucks Newsroom, 2010, Available at: http://news.starbucks.com/article_display.cfm?article_id=225, [Accessed 20 March 2010] * "The Partner Experience", 2010, Starbucks, Available at: http://www.starbucks.com/career-center/us-careers/partner-experience, [Accessed 20 March 2010] * Marques, J. 2006, 'Spiritual performance from an organizational perspective: the Starbucks way', Available at: Emerald FullText, [Accessed 20 March 2010] * Michelli, J.A. 2006, 'Starbucks Experience', Leadership Excellence, Vol. 23, No. 11, Available at: Proquest Central, [Accessed 20 March 2010] * Halepota, H.A. 2005, 'Motivational Theories and Their Application in Construction', Cost Engineering, Vol. 47, No.3, Available at: Proquest Central, [Accessed 4 April 2010] * Huitt, W. 2007, 'Maslow's hierarchy of needs', Educational Psychology Interactive, Valdosta, GA: Valdosta State University, Available at: http://www.edpsycinteractive.org/topics/regsys/maslow.html, [Accessed 4 April 2010] * Boeree, C.G. 2006, 'Abraham Maslow', Available at : http://webspace.ship.edu/cgboer/maslow.html, [Accessed 4 April 2010] * Milbourne, G., & Francis G.J. 1980, 'Worker Behavior and Reinforcement', American Journal of Small Business, Vol. 4, No. 3, Available: Proquest Central [Accessed 28 March 2009] * Terpstra, D.E. 1979, 'Theories of Motivation-Borrowing the Best', Personnel Journal, Vol. 58, No. 6, Available: Proquest Central, [Accesed 27 March 2010] ...read more.

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