Significant Roles Employees Play Commerce Essay Example

these theories, specifically in the context of business organizations.

There are two major categories of motivation theories: process theories and content theories. Process theories focus on how employees are motivated and the processes involved in motivation. Some important process theories mentioned include needs-goal theory, Vroom anticipation theory, Equity theory, and Porter-Lawler theory.

Content theories, on the other hand, explain the characteristics that individuals possess and concentrate on satisfying their basic human needs. Examples of content theories mentioned include Maslow's hierarchy of needs, Alderfer's ERG theory, Argyris's maturity-immaturity continuum, and McClelland's acquired needs theory.

Due to space limitations, only one process theory (Equity Theory) and one content theory (Maslow's Hierarchy of Needs Theory) are discussed further and evaluated based on their effectiveness. The Equity Theory developed by J. Stacy Adams suggests that individuals seek fairness in their work situations.According to Ramlall (2004), the equity theory acknowledges that individuals are not only concerned with the amount of rewards they receive for their efforts, but also with how this amount compares to what others receive. Individuals compare their inputs and outcomes to those of others, considering factors such as effort on the job, task performance, skills, experience, educational background, and competency. Outcomes include salary increases, fringe benefits, recognition, promotions etc.

The theory identifies two types of inequities: under-reward and over-reward. Under-reward occurs when an individual perceives that their input-outcome ratio is less favorable than that of others. Over-reward occurs when an individual's input-outcome ratio is more favorable than that of others.

When individuals notice an imbalance in their input-outcome ratio compared to others, it creates tension within them. The magnitude of this tension depends on the extent of unfairness (Ramlall 2004). This tension

can serve as a motivating force for individuals to strive for fairness and equity (Robbins 1993 cited by Ramlall 2004).

When individuals feel unfairly treated compared to their colleagues, they tend to react in specific ways (Champagne 1989 cited by Ramlall 2004). These reactions may include reducing work input if they feel under-rewarded or increasing work input if they feel over-rewarded.Moreover, individuals may attempt to modify their remuneration by requesting a salary increase or striving for equality in outcomes with their coworkers. In certain instances, employees may opt to disengage from the situation altogether and resign from their job in pursuit of alternative employment. Hence, it is crucial for managers to uphold effective communication with their subordinates as unfairness can lead to significant difficulties. Disparities can profoundly influence the working environment and result in inefficiency within organizations. Consequently, managers are advised to ensure equitable treatment for their subordinates consistently.

4.1.1 Evaluation of Equity Theory
The dependability and widespread application of Equity Theory across various forms of organizations have been documented through empirical research over many years. Multiple studies have been conducted to examine this theory, consistently yielding results that indicate fairness considerations substantially impact the behavior of members within an organization.Schultz et al.(2006) discovered that individuals working on an assembly line adjust their pace in order to restore balance in input-output ratios when compared to their colleagues.This demonstrates the connection between an individual's contribution to work and equity within their workplace.Another advantage of Equity Theory is its acknowledgment of the influence social comparison processes have on motivation.Generally, individuals tend to compare every aspect of themselves with others, including their employment circumstances.Employees not only consider the amount of rewards

they receive for their efforts but also how it compares to their colleagues. This comparison is made by evaluating the relationship between inputs and outcomes and comparing them to others' efforts and rewards. If employees perceive unfairness, they may falsify their inputs in order to restore equity. However, Equity Theory has faced empirical criticism. One major criticism is its inability to accurately predict how individuals will restore equity when they feel unfairly compared to their colleagues. Will they change their standards for comparison or leave the situation altogether? This uncertainty highlights the theory's lack of concrete predictions. Moreover, research has largely ignored individual differences in perceptions of inputs, outcomes, and equality. Measuring these perceptions is challenging, which further complicates understanding how different individuals tolerate and react to inequality. Individuals with higher tolerance levels may perceive equality differently than their colleagues, leading them to take distinct actions.The Equity Theory has been criticized for not integrating individual differences that can impact an employee's response to inequality. This lack of integration has led to the theory being viewed as unrealistic in terms of motivation. Furthermore, the theory is also criticized for its inability to determine how employees select their referent when evaluating their work situation. Different employees may choose different referents, such as colleagues with similar qualifications or those who share a similar perspective on inputs and outcomes. Additionally, the process by which individuals decide whom to compare themselves with has not been studied, resulting in a decrease in the accuracy of the Equity Theory. Another limitation is that the theory assumes individuals only use one referent when assessing their work situation. However, it is common for individuals

to use multiple referents due to their inclination towards comparing themselves to others. Therefore, considering only a single referent makes the Equity Theory appear unrealistic or incompatible with the social comparison theory (Anderson et al., 2002, p.55). In contrast, Abraham Maslow developed Maslow's hierarchy of needs theory which suggests that every person has five basic needs arranged hierarchicallyThe lowest level of needs, known as physiological needs, include the need for food, clothing, and shelter. Following this are security needs, social needs, and esteem needs. At the highest level are self-actualization needs. Maslow emphasized that each lower need must be satisfied before moving on to the next higher level (Sharma, 2004, p.148). A visual representation of the hierarchy of needs can be found in Appendix 1. In "Administrative Thinkers", it is mentioned that individuals will only pursue fulfilling their security needs once their physiological needs are met (Sharma, 2004, p.148). Security needs are also referred to as safety needs and involve protection from external threats, fear, and natural disasters (Sharma, 2004, p.149). According to Certo and Certo (2006,p.386), management helps employees satisfy their physiological and security needs by providing adequate wages and rewards for necessities like housing and food.After security needs are fulfilled,socialneeds become apparent.These relate to the desire for love,fellowship,and friendship which reflect an individual's longing for recognition from others(CertoandCerto,
2006,p.
386).
Once socialneedsaremet,theindividualsstrivetomeettheiresteem
needs.Establishingone'sesteemencompassesdesiringrespectfromothers.Maslowhascategorizedesteem
needsintotwogroups:achievementneedsandrecognitionneedsSelf-respect needs that are independent of others and recognition needs for gaining respect from others are both important aspects of achievement. According to Sharma (2004, p.149-150), when these needs are satisfied, individuals can reach self-actualization, which is the desire for higher achievement in life. Maslow has identified these needs as crucial in his hierarchy of

needs. This hierarchy is widely recognized and provides valuable insights for leaders in motivating their subordinates. As a result, it continues to be positively discussed and evaluated in management literature. Previous evaluations of motivational writings have extensively examined Maslow's Hierarchy of Needs Theory and have given it positive feedback as a widely accepted theory.

Sharma (2004, p.160) states that Maslow's theory has had a significant impact on the modern approach to motivation, leading to further research in the field. Additionally, McGregor's Theory Y and Herzberg's Two-factor Motivation-hygiene Theory were based on Maslow's theory. McGregor even referred to Maslow's approach as "the most fruitful" (Banerjee, 1995, p.76). Besides being a guide for management in employee motivation, Maslow's theory is also widely acknowledged as a valuable tool for identifying the needs of subordinatesThe categorization and arrangement of human needs, as shown in Maslow's Hierarchy of Needs theory, can help management identify suitable motivational strategies to address unsatisfied needs and encourage employees to work towards organizational goals. This hierarchy begins with basic needs and progresses towards self-actualization needs, which is considered a logical and comprehensive approach. Typically, individuals prioritize meeting their basic needs before addressing other needs such as security, social connections, esteem, and self-actualization. The hierarchical categorization of human needs is seen as inclusive, covering all aspects of human existence and arranged based on importance. However, it is debated whether this hierarchy applies universally to all individuals since different people may have varying orders of demands. For instance, creative individuals like singers or painters may prioritize self-actualization above security or esteem. Thus, some creative individuals living in poverty might consider self-actualization their primary need. Additionally, there are cases

where an individual desires to satisfy all their needs simultaneously rather than one at a time.Despite some criticisms, Maslow's theory does not support the idea of simultaneous emergence of multiple needs. Some argue that this makes it invalid for most individuals. Additionally, there are overlapping elements in Maslow's categorization of human needs. For example, at the highest level of esteem needs, an individual's demands may align with their self-actualization needs as they desire recognition from others. Similarly, the need for love and companionship can coincide with the need for gaining self-respect and esteem from others as humans require a sense of belonging and acceptance. However, Maslow's theory is not considered comprehensive due to its exclusion of important human needs such as mental peace, happiness in life, nationalism, and religion.Many theorists disagree with the idea that Maslow's theory is comprehensive due to neglected needs. The importance of motivation and morale among organizational members has significantly increased in recent decades. Motivating employees is crucial for retaining valuable human capital and improving overall efficiency and performance, which leads to higher growth and profitability. To foster employee motivation, management studies the factors that drive employees based on their attitudes. Employee attitude surveys are commonly used to assess morale in different organizations. Over the past few decades, various managerial motivation schemes have been implemented widely to motivate employees and enhance performance. One popular scheme is extrinsic rewards, which include compensation such as base salary incentives, bonuses, fringe benefits, and other monetary equivalents in the workplace. A study by Takahashi (2006) found that relative pay level and pay increases greatly encourage more efficient task performance by employees.Toyota Motors Group in Japan

is a prime example of a company that extensively utilizes pay incentives as a means of motivating their workforce (Takahashi, 2006). Research conducted on the employees at Toyota Motors Group has shown that offering monetary rewards effectively boosts motivation for both white-collar and blue-collar workers. Moreover, some companies have implemented Employee Stock Ownership Plans (ESOPs) as an additional external reward to incentivize their employees. By offering shares to their employees, these organizations align employee interests with those of shareholders, ultimately encouraging employees to engage in activities that benefit the company. A study by Gamble et al. (2002) demonstrated that ESOPs successfully motivated pilots in three US-based airlines to be highly engaged in their work. As a result of this heightened engagement, these pilots consistently provide top-quality services to passengers and contribute towards achieving greater efficiency for their respective airlines. Job design serves as another effective strategy for employee motivation.According to Grag and Rastogi (2006), job design plays a crucial role in enhancing motivation, boosting employee satisfaction and performance. This is especially important for organizations striving to compete in today's challenging business environment. Renowned companies like 3M, Xerox, and Motorola have successfully implemented job design schemes to motivate their workforce. There are various approaches to implementing job design within an organization.

The traditional approach is job enrichment, which involves expanding the variety of work contents that require higher levels of knowledge and skills. It also gives employees responsibility for planning and controlling their performance, as well as providing opportunities for personal growth and meaningful work experience. However, contemporary human resource management focuses not only on job enrichment but also on the quality of work life (QWL) and

job features approach to job design.

Despite this shift towards a broader perspective, research suggests that the expansion of knowledge and skills through job enrichment programs still significantly influences employee motivation. Companies such as Volvo and Texas Instruments have achieved remarkable success in motivating their employees through these programs (Certo & Certo, 2006). This highlights the effectiveness of the job enrichment approach in impacting employee motivation.Furthermore, in addition to job design strategy, empowerment is another widely implemented motivational strategy in various organizations. According to a study conducted in 2007, employees who are given job authorization experience higher levels of job engagement, indicating that job authorization plays a significant role in boosting employee morale and encouraging efficient performance of duties (Reference). Moreover, the use of promotion incentives is also a common motivational strategy practiced by many organizations. This practice is highly valued by employees and leads to increased organizational commitment (Takahashi, 2006). As a result, increased loyalty among employees motivates them to work diligently towards achieving organizational objectives. A survey conducted in Malaysia's semiconductor manufacturing industry supports the finding that job authorization positively influences job engagement among employees (Ooi et al., 2007). The study conducted within six major semiconductor contract manufacturing organizations found that promotion incentives are positively linked to employees' job engagement and overall motivation (Ooi et al., 2007). These findings demonstrate the significant impact of promotion incentives on employee morale and motivation. Additionally, recognition programs are also implemented by organizations as a means to motivate their workforce (Reference).Recognition is a selective non-financial reward given to employees as a way of acknowledging their effort, commitment, and celebrating their success within the organization. It is believed that

recognition programs have a positive impact on employee motivation and performance. Honeywell, a multinational conglomerate specializing in consumer products, engineering services, and aerospace systems, actively works on boosting employee motivation by offering various awards to those who achieve exceptional performance (Bartol and Martin, 1998). For example, Honeywell has established the Chairman's Achievement Award to recognize employees who excel in supporting the company's visions and strategies. These awards not only enhance motivation among employees but also contribute to the company's success. Therefore, recognition programs are effective in improving employee motivation at work. In conclusion, different motivation theories have their own advantages and limitations based on previous research studies and journal contents. However, the concept of equality in organizations proposed by the Equity Theory proves useful for future research on employee job behaviors. Despite its limitations, Maslow's theory remains valuable for assessing employees' needs and identifying suitable motivational strategies for them.Therefore, motivation theories remain effective in motivating employees to some extent. Additionally, this study confirms the significant importance of employee motivation in achieving improved performance for organizations. Motivated employees possess higher levels of enthusiasm and confidence, enabling them to achieve greater success. Consequently, it is crucial for management to gain a comprehensive understanding of the motivation process. By implementing these strategies, management can effectively influence employee behavior and attitude to align with organizational goals. Furthermore, there are various motivation schemes that can be employed to enhance employee motivation. However, for these schemes to work effectively, management must consider factors such as the needs of organizational members, the environment, and organizational objectives. By doing so, management can successfully enhance employees' motivation and morale while promoting consistent progress towards

organizational aims and greater accomplishments for the company.