- Motivation at Sundance
3.1 Research and Development
The members of the reassert and development team at Sundance are all young and ambitious electronic engineers. As such, the most important factor in motivating them is to satisfy the need for professional development.
McClellands achievement motivation theory best fits this group at Sundance. McClelland identified four characteristics of people with strong achievement needs. These are:
- A preference for moderate task difficulty
- A preference for personal responsibility for performance.
- A need for clear and unambiguous feedback
- More innovative
A close look at the behaviour of the individuals in research and development would suggest that indeed McClellands identified characteristics are strongly present in this group of engineers. So much so that in the past when there have been tension between management and the R&D team it has been as a result of management not fulfilling achievement needs of the individual. However this does not suggest that tangible motivators such as pay and working conditions are not important. It simply states that professional achievement needs, are stronger motivators.
3.2 Production
Sundance is a high tech company and the production team are highly skilled and specialized individuals. Their motivational needs are a fine balance of many factors. The best known motivation theory that can be linked to this group is Herzberg two-factor theory. Herzberg suggests that the wants of employees can be divided into two factors. Satisfiers or motivators and dissatisfiers or hygiene factors. Hygiene factors are those which are related to the working environment and conditions. The other factor concerns itself with the actual content of the work itself.
At Sundance the employees undertaking high tech electronic manufacturing and assembly recognize they must be able to keep themselves up to date with their fast moving industry. If these employees are to remain motivated, the work they do must satisfy this need. But these ‘Growth’ needs must be met in conjunction with the ‘Hygiene’ needs. Factors such as job security, salary, working condition, quality supervision must also be considered. It would appear that Growth and Hygiene needs are both equally important here.
3.3 Sales and Marketing
Here, it is easy to see what the driving force is. The desire to sell and generate income. The objective here is defined and there is little argument over this definition. The individuals in this group are a lot more goal orientated. They are also in the front line of battle. Their performance has direct repercussions on the welfare of the company. They are often the first group to be criticized if the company stars to under perform.
As such the individuals in this group have strong and assertive personalities. Historically at Sundance it is this group which is more involved in strategic decision making. Therefor the employees here have unique requirements. They demand greater control and power.
- Performance Management and Appraisal
Performance management is a means of getting better results from the organization. This is achieved by means of a systematic, face to face discussion of an employees work performance, training and development, future goals and aspirations. This section concentrates on the motivational side of performance management and appraisal. Let us first by initially looking at the nature of performance management at Sundance.
Sundance is a small company and until recent years there has been no structured performance appraisal system within the company. It is only in the past few years that a structured system has been introduced. As Sundance is a small company, the performance appraisals for the whole company is carried out by the managing director. He is the one who is in constant contact with all the members of the different groups. The way this is done is still on an informal basis but it is summarized and finalized at the end of the year by means of an appraisal form which has four sections.
- Task Definition
- Task Goal
- Training and Development
- Final Performance Assessment
So how does this system effect motivation in the various groups?
The production team sees the importance of performance appraisal primarily as a means of getting a pay rise. Other aspects such as training and feedback are secondary concerns. The clear link to motivation is therefore money. A high pay rise constitutes a happier and
more motivated employee. Here, performance management and appraisal is seen by the employees in its more traditional form. But that is not what performance management is about. The continuous all year round monitoring, reviewing and discussion of issues relating to performance, also has an influence on motivation. If this is done correctly and carefully, it can have a positive psychological effect resulting in a more productive and motivated group. My observation of the production group has showed that by getting the individuals involved in the process of forming agreement through discussion, their moral will increase.
The performance management process has a different edge in the R&D group. A modern approach is executed. The individuals in R&D demand a more sophisticated analysis of their performance. Factors such as career planing, identification of professional training and development become more important. Performance management can therefore have a great impact on motivation, depending on how it is handled. A brief interview of this group suggests that a lot of focus needs to be given to regular feedback and goal setting. What the individuals demand is a technically experienced manager who is able to appreciate the complex nature of their electronics designs.
And finally how does performance management affect sales and marketing? The approach here is similar to that of the R&D group. Regular feedback and constructive criticism are an important part of performance management, and can have positive influences on motivation and job satisfaction.
The general consensus seems to be that at Sundance, performance management is having a good effect on the individuals in all 3 groups. The only complaint the employees seem to have is that the actual end of year appraisal is done by the MD only. Most employees feel the MD should not be the only one present at the annual appraisal meeting. This is specially the case with the R&D group who feel the nature of their work is such that a more technical person needs to be present.
5. Management Leadership Style
Leadership is related to motivation, interpersonal behaviour and the process of communication. Leadership is important in attempting to reduce employee dissatisfaction. Good leadership also involves the effective process of delegation and decision making. But what is the nature of leadership in Sundance? How is it performed and what effects does it have on the individuals in different groups? We will first start by looking at the nature of leadership in the different groups and then analyse its effect on motivation and moral.
A known work on leadership style which will help us understand Leadership at Sundance, is that of Tannenbaun and Schmidt. This suggests a continuum of possible leadership behaviour available to a manager along which various styles of leadership may be placed. This pattern exists at Sundance.
Figure 1 shows that, the leadership style across the 3 main groups at Sundance is not the same. It is dependent on the organizational environment and the individuals in it. Let’s examine these differences.
In production, the individuals have no interest in understanding the goals of the organization. They do not want to get involved in problem solving and decision making. They simply prefer to get on with what is required of them and deal with this task only. This is what satisfies their motivational needs as described in section 3. But does the leadership style shown in figure1 meet this requirement? The answer is yes but there are difficulties. The problem with this form of leadership is that it is often seen as too authoritarian. This has sometimes developed mistrust between group members and the leader. Ultimately leading to low moral and demotivation. In fact this seems to be an ongoing problem in production. Management has tried to be sensitive towards this feeling but with limited success.
Lets look at the R&D group. As seen in section 3 the individuals here recognize the need for professional development. They have a tendency to be a bit more independent. They also tend to identify with the goals of the company as a whole. Therefore the style of leadership here, is a bit more interactive. Motivation is achieved by getting the individuals involved in the process of decision making. The psychological needs of this group are such that they need a bit more feedback and involvement. Sundance has been quite successful in fulfilling the needs of this group through the leadership style. There is no noticeable problem with leadership here.
What about the Sales and Marketing group? From figure 1 we can see this group is at the other extreme of the leadership style scale. The individuals here demand a style of leadership which allows not only joint decision making but also a degree of freedom and flexibility. At Sundance leadership puts a lot of trust in its sales and marketing staff. This in turn leads to high levels of motivation and job satisfaction amongst the group members.
6. Conclusion
6.1 Performance Management & Appraisals
The process of performance management is a relatively new concept within Sundance. Although there are now formal procedures in place, the idea of performance management is still not yet embedded within the companies structure. The fundamental principals of performance management are being executed, but it is being done subconsciously. There has never been any formal training in this area for the three group managers and the MD. It has been, in my opinion, through luck more than anything else, that the various group managers are naturally good at performance management. In short, the objectives of performance management, are being met through “good personalities” and “friendly management”. We can see high levels of motivation and moral. This has meant that there has never been a need to understand the fundamental theories of performance management and appraisals. But as Sundance operate in a dynamic and changing industry, the current situation and culture may not last long. Sundances business forecast shows it will continue to grow, both in wealth and number of employees. Whether management will be able to cope with this increase in HR, remains to be seen. But it is my opinion that unless some kind of management training is introduced, Sundance will suffer. I suggest that:
- Managers undertaking training courses
- An extra semi-formal appraisals on top of the annual appraisal
- Annual appraisals done not just by the MD, but also the group manager
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More modern appraisal system be used. e.g. 360° feedback system
6.2 Leadership Style
As described in section 5, the leadership style differs from group to group. However a common pattern does emerge at Sundance. Within each groups constraints, the style of leadership appears to be friendly and open. The managing director for example, is forever reminding the employees that the door to his office is never closed. This attitude is also evident in the group managers but within the margins shown in fig.1 of section 5. Once again under the current organisational structure this appears to be working well and is a major motivator. However there is a danger that this degree of openness can lead to the subordinates becoming complacent. Care must be taken not to allow the situation get out of hand. And as Sundance grows and more people are introduced to the groups, the leadership style and attitude needs to be monitored and adjusted accordingly.
Bibliography
Books:
1) Mullins(1999) Management and Organisational Behaviour 5th Edition
Pitman Publishing / Financial Times
2) Miner(1985) The Practice of Management
Bell & Howell Company (USA)
3) Megginson(1992) Management Concepts & Applications 4th Edition
Harper Collins Publishers Inc, (USA)
4) Armstrong(1999) Employee Reward 2nd Edition
IPD Publishers
Papers:
- Overview of Performance Management
California University, CUPS journal, Summer 1995 V.46
2) Managing Performance
Harvard University, Oct 1996
- 360 degree feedback
San Francisco Chronicle May 1997
- Leadership Theories
Modern Management 1998
5) Determinants of Leadership Style
1998
