Motivation consist of three major components: 1st is direction which is the road the motivator use to attain his goal, 2nd is the intensity that is noticed by the concentration and vigor that goes into pursuing his goal, 3rd last is Persistence which is the continuity of the effort toward the goal. Early studies on motivation were written between the end of 19th and beginning of 20th centuries as they were focused more on intrinsic motivations that arise from within the individual. They suggested that human are programmed to behave in specific way according to the behavioral cues that they were exposed to.
Right after that many studies took different approaches and other explanations for human motivation. Now the main motivation theories are classified into 2 main schools: 1ST ARE THE CONTENT/EARLY THEORIE
...S OF MOTIVATION: They are considered as the earliest theories of motivation. They are also focusing on internal factors that energize behavior. As well as, called needs theories, because they are concentrates and focus on the importance of determining 'what' motivates individuals. Overall when it comes to work environment these theories have the greatest impact on management but academically they are the least accepted one.
Example of early motivation theories are Maslow’s Hierarchy of Needs, Theory X and Theory Y, McClelland’s Need , Herzberg’s' Two Factor Theory, and ERG Theory * Maslow’s Hierarchy of Needs It is considered as the most widely known theory of motivation and was made by American Abraham Maslow in the 1940s and 1950s. It basically about that every human has Hierarchy of five needs: Physiological, Safety, Social which considered as the lower-order nee
Esteem, and Self-actualization that are considered as the higher-order needs. * Theory X and Theory Y
Douglas McGregor proposed that every manager has one of two assumptions about their employees and he adapt his managing approach based on it. These assumptions are either They X that assume employees are lazy dislike work, responsibility who only want the lower-order needs and must be coerced to perform or Theory Y that assume the employees like work, creative and seek responsibility and the higher-order needs. * Mcclelland’s Need Theory McClelland's model argues that all people have these three needs which are achievement, power, and affiliation. Herzberg’s' Two factor Theory Herzberg's theory relates intrinsic factors to job satisfaction and relate extrinsic factors with dissatisfaction. 2nd THE COGNITIVE/CONTEMPORARY THEORIES OF MOTIVATION: Which are based on early cognitive theories, which posit that behavior is the result of conscious decision-making processes are concerned with determining how individual behavior is energized, directed, and maintained in the specifically willed and self-directed human cognitive processes.
The main contemporary theories of motivation are: expectancy theory, equity theory, goal-setting theory, and reinforcement theory. * Reinforcement Theory This theory of motivation is proposed by BF Skinner. It’s mainly about that individual’s behavior is a function of its consequences that is based on “law of effect So that individual’s behavior with positive consequences tends to be repeated, but individual’s behavior with negative consequences tends to be avoided. * Expectancy Theory This theory was applied by Victor Vrooms in 1960 based on Kurt Kewub and Edward Tiknab researches in 1930.
It suggests that the strength of a tendency to act in a certain way depend on the
strength of an expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individuals. * Equity Theory Adams' Equity Theory is built-on the belief that employees will be de-motivated; both in relation to their work and their employer, if they found out that their inputs are greater than the outputs. Employees will expected to respond to this is different ways, like de-motivation, reduced effort, becoming disgruntled, or leaving the company. Goal Setting Theory The goal setting theory is the focus of this project therefore it is discussed in details through the literature review. Goal Setting Theory is stated under the contemporary theories of motivation, the theory is defined as “Specific and difficult goals, with feedback, lead to higher performance”. This means that when a worker is addressed or asked to perform a certain task which is told specifically will be more effective than asking a worker to do a general thing for the organization. Specific goals are always better material for production than the generalized goals.
Commitment to do a certain task concerning your job with specific criteria will help you be directed towards your plan to work and perform the job/task. For example, in real life, if a student is told by his father, I want you to achieve good grades this year so I can buy you a new car and another student is told by his father, I expect you to get good grades not lower than Bs in all your courses with minimum GPA 3 in order to buy you the new car you want. Which student do you think
will be more motivated to study in order to achieve the goal of his father? , Of course the second student, as he has a specific goal not a general goal.
Feedback is also necessary in the motivation process as a whole. Any theory of motivation has some advantages and some drawbacks. From the main advantages of the goal setting theory, raising incentives and increasing the efficiency of workers. From the main drawbacks of this theory is, it sometimes simulate risk for the worker not being sure if they can achieve the goal asked to be done. Despite the huge effort that has been devoted to the study of motivation, none of these theories have been universally accepted. This problem reflects of both the complexity of the construct and the diverse backgrounds of these theories. B.
Rewards and Recognition Programs: C. As mentioned in the article “Employee Reward and Recognition Systems”, Employee reward and recognition programs are one method of motivating employees to change work habits and key behaviors to benefit a small business. Although the terms rewards and recognition are often used interchangeably, reward and recognition systems should be considered separately. Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels. They are normally considered separate from salary but are monetary in nature or have a cost to the company.
On the other hand, recognition programs are actually intended to provide a psychological reward. Financial rewards, especially those given on a regular basis such as bonuses, profit sharing, etc. , should be tied to an employee's or a group's
accomplishments and should be considered "pay at risk" in order to distance them from salary. By doing so, a manager can avoid a sense of entitlement on the part of the employee and ensure that the reward emphasizes excellence or achievement rather than basic competency. Bonuses are considered one way to reward and motivate employees .
They usually reward individual accomplishment can also be used, however, to recognize group accomplishments. Another kind of reward to motivate employees is Employee stock-option programs give employees the right to buy a certain number of a company's shares at a fixed price for a specified period of time. Stock options usually reward employees for sticking around, serving as a long-term motivator. On the other hand, while most employees certainly appreciate monetary awards for a job, many people purely seek recognition of their hard work. Actually, recognition can take a variety of forms and be very motivating to employees.
Most programs usually include regular recognition events such as banquets or breakfasts, employee of the month or year recognition, an annual report or yearbook which features the accomplishments of employees, and department or company recognition boards. Furthermore, according to the article informal or spontaneous recognition can take the form of privileges such as working at home, starting late or leaving early. A job well done can also be recognized by providing additional support or empowering the employee in ways such as greater choice of assignments, increased authority, or naming the employee as an internal consultant to other staff.
To sum it up, materialistic and psychological motivators play a great role in any organization and are related to the
satisfaction of its employees. II. CASE APPLICATION The History of PepsiCo: PepsiCo has a long, rich history. According to the article “The Summer of 1889”, It all started when Caleb Brad ham a pharmacist and drugstore owner in New Bern, North Carolina invented the drink in the late eighties. The young pharmacist began experimenting by combining different kinds of spices, syrups and juices trying to create a drink to serve his customers that would be new and refreshing.
Beyond all expectations, Caleb succeeded as he invented the beverage known around the world as Pepsi – Cola. His invention, the mixture of kola extract, vanilla and rare oils, became so popular among his customers, and he first named the drink “Brands”, later on, Caleb decided to rename his drink as Pepsi-Cola and he started to advertise for his new soft drink. The sales of Pepsi-cola started to grow and people convinced him that he should form a company to market his new beverage so that he decided to set up the Pepsi-Cola company in the back room of his pharmacy and applied to the U.
S patent office for a trademark. In the beginning, he mixed the syrup himself and sold it wholly through soda fountains. But later, he recognized that a greater opportunity existed in bottling the drink “Pepsi” so that people would be able to drink it where ever they go. The business started to grow and in the beginning of the nineties “PEPSI-COLA” was officially registered with the US patent office. In that year, several thousands of gallons of syrup using the theme line “Exhilarating, Invigorating, Aids Digestions. ” were sold.
style="text-align: justify">Later, the company started selling more than hundred thousand gallons of syrup per year after Caleb was able to build a strong franchise system. Finally, after a lot of obstacles facing the company through the years, the company managed to get back on the right track and achieve a lot more throughout the years and it started merging with different companies in the same field of beverages and snacks. Later in the mid sixties, Pepsi- Cola and Frito lay merged to form a new company PepsiCo which continued to grow and added several brands and product lines.
Brief history of Pepsi-co Egypt: In 1994, PepsiCo entered Egypt, and in 1994 the Egyptian bottling company became a private sector company with thousands of employees, later in the late nineties PepsiCo international bought 80% of the EBC share and assumed complete responsibility of the bottling operation. Today, Pepsi Cola Egypt has 7 plants, 3 mega plants in Nasr city, Tanta and 6th of October governorates, and other four plants in Sohag, Port said, Alexandria and El menia. Concerning Chipsy, the company was established in Egypt in 1981.
In 1990, PepsiCo acquired 50% of tasty foods Egypt and after tasty foods entered the PC market through Lay’s, PepsiCo acquired the remaining 50% of the company, And in 2001, Tasty food acquired chipsy and two years later PepsiCo managed to buy out Chipsy’s owners. Today PepsiCo is: A multi-national corporation and considered as the world's fourth leader in snacks, foods ;amp; beverages as it has 19 mega- brands that generate $ 1 billion or more in annual retail sales, generating revenues of more than 60 billion
dollars and employing over 285,000 people worldwide.
Application: A. Motivation in PepsiCo PepsiCo is one of the leading companies in the field of food and beverages in Egypt and actually the way the company motivates its employees in order to achieve success is one of the most important reasons behind its huge development and sustainable success. PepsiCo’s main method to motivating employees is the goal-setting theory where employees of all levels are given specific goals to achieve in a certain time.
For example, employees at the human resources department are given certain tasks to do each year that vary between finishing calculating the salaries and bonuses for the year and giving trainings or conducting presentations to members from other departments, or recruiting new employees through a certain time for the company’s needs. Each and every task of the previously mentioned ones is said to be finished through a certain, specific process and in a time span agreed upon with the managers. In addition, employees are given feedback on their performance at each step of getting a task done.
At PepsiCo employees get the two types of feedback, external feedback through their managers in terms of reports or comments on their work and self generated feedback as they know the certain steps in order to reach a certain goal and after finishing each step they check the process and monitor their own work by themselves. Actually, PepsiCo has an online computer program for its employees where they do a self assessment at the end of each year. The goals of each employee or department are clearly stated on the program and mployees write
a report online describing how they were able to achieve the goals and what are the procedures and steps they have taken in order to reach their objectives. Therefore, one can conclude that PepsiCo efficiently uses the management by objectives program through translating the overall goals of the organization into simple and tangible tasks that are divided upon each department or division while making sure that the goals are specific, there is a certain time period for achieving them, employees get the necessary feedback and finally they participate in the decision making process to a certain extent.
B. Rewards ;amp; Recognition Programs in PepsiCo As a leading multinational company, PepsiCo uses rewards as a way to motivate employees. A clear example of motivating employees through materialistic rewards in the organization is giving them annual bonuses according to their yearly performance that is determined by supervisors’ reports and self generated reports on how one has achieved the desired objectives and reached the necessary goal.
Moreover, concerning top managers and employees of a higher level in PepsiCo, they get motivated either through being given high bonuses or by holding a stock share in the company. Furthermore and importantly, the company has a strong rewards and recognition program that includes several rewards such as choosing the best PepsiCo employee for the month or the year. In addition the flexible culture of PepsiCo allows the company to use its flexible policy as a method of motivating employees to reach the organizational objective efficiently and effectively.
An example on the benefits PepsiCo offers is a policy, the main objective of which is to give employees different forms
of flexibility; each employee is given the choice to select the policy that suits his/her life style best. The Flex policy includes a band that ensures flexibility in working hours as it enables employees to select the work schedule that suits their life best but still doesn’t affect the business.
Another example from the policy is a band whose is giving employees the chance to work from any location other than the office twice a month, in order to give them an opportunity to save the time and effort consumed as they transport to and from the office, as well as focusing on the tasks that need high concentration levels at a more relaxing place such as their own homes or cafes. Also, the policy allows the employees to come late to work on Sundays during summer, as the organization puts the personal life of the associates during weekends during summer into consideration.
It should also be mentioned that PepsiCo provides its people with opportunities that would strengthen their abilities to help them be more motivated and less bored of their jobs. A brief example on these opportunities are internal rotation which enables to move from snacks to beverages and vice versa, and for sure these experience help in the development of the skills of the people working at PepsiCo, and causes enhancement in their capabilities, and make them feel that they have plenty of opportunities for their career progression.
C. Motivation, Job Satisfaction ;amp; Other Factors There is a very strong relation between motivation and other job variables such as satisfaction, job involvement and absenteeism. Actually, the effective motivation and rewards
programs in PepsiCo have enhanced the employees overall satisfaction and made them work harder for the organization in order to achieve the specific goals they are assigned and consequently the main organizational goal.
Moreover, PepsiCo considers employees satisfaction an effective part of evaluating the organizational performance, therefore they assure employee job satisfaction through giving the employees surveys to fill to make sure that they are satisfied by the different things concerning their jobs. In addition, job motivation has led to less absenteeism and turnover as when employees are motivated either through materialistic rewards or recognition programs, they become more committed to their jobs or their willingness to pursuing goals and meeting objectives increases.
III. ANALYSIS ;amp; RECOMMENDATIONS In conclusion, PepsiCo is a multinational company that applies the goal setting theory and some other motivators that we have studied throughout the semester. The company has a strongly stated vision and mission, according to both of them plans and goals are pursued. We believe that the organization also has a well organized design that is considered as an ideal design, and the leaders in the organization are extremely successful and are chosen according to their very high leadership qualifications that allow them to ead the employees and motivate them effectively in order to pursue organizational goals and achieve the desired success. As a group, the three of us agree that the organization “PepsiCo” successfully applies the goal setting theory and that it is accomplishing its goals through specifying goals for each department and giving its employees constant feedback on their work. Moreover, we have observed that the company has strong motivating policies and an efficient
rewards and recognition program that serves the company’s organizational goals through motivating employees to do their tasks in an effective manner.
Finally, we have discovered that the application of the goal setting theory and the rewards and recognition program at PepsiCo has led to higher employee satisfaction which subsequently led to more job involvement and less absenteeism or turnover. Therefore, our group thinks that PepsiCo can actually be a role model for other companies at the point of motivating employees and we don’t have any criticism against the company’s methods or policies for motivating employees.
We think that the company’s trend in motivating employees is helping in eliminating any problems concerning deviance in employee behavior. Also, during the interview, Mrs. Ghada Hassan has assured through the interview that the perfect application of motivation in the company helps in avoiding problems between managers and employees within the area of motivation or pursuing the goals of the organization as the employees are extremely motivated and committed to accomplishing their tasks efficiently and effectively.
IV. TASK DISTRIBUTION The group members: Islam Kamal, Mahmoud Hossam and Miar Mohamed have equally contributed in working on this group project and in writing the paper. V. REFERENCES The group members have attended the interview with Mrs. Ghada Hassan a middle manager at the compensation and benefits area at the Human Resources department at PepsiCo, on Saturday the 15th of December 2012 VI. WORKS CITED "Adam's Equity Theory. " Mindtools. com. 23 Dec. 2012 ;lt;http://www. mindtools. com/pages/article/newLDR_96. tm;gt;. "Goal Setting Theory of Motivation. " Managementstudyguide. com. 22 Dec. 2012 ;lt;http://www. managementstudyguide. com/goal-setting-theory-motivation. htm;gt;. "Motivation and Motivation Theory. " Referenceforbusiness. com.
22 Dec. 2012 ;lt;http://www. referenceforbusiness. com/management/Mar-No/Motivation-and-Motivation-Theory. html#b;gt;. "Motivation: Expectancy Theory. " Uri. edu. 23 Dec. 2012 ;lt;http://www. uri. edu/research/lrc/scholl/webnotes/Motivation_Expectancy. htm;gt;. Reinforcement Theory of Motivation. " Managementstudyguide. com. 22 Dec. 2012 <http://www. managementstudyguide. com/reinforcement-theory-motivation. htm>. "The Content Theories of Motivation. " Sielearning. tafensw. edu. au. 22 Dec. 2012 <http://sielearning. tafensw. edu. au/MBA/9791F/BusinessServices/LO/1207_020138_605F_02_wi/1207_020138_605F_0204_wi. htm>. "Employee Reward and Recognition Systems. " Inc. com. 23 Dec. 2012 <http://www. inc. com/encyclopedia/employee-reward-and-recognition-systems. html>.
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