Relationship Between Different Motivational Theories – Egg Company and Taylor Woodrow Companies Case Study

In this assignment you are going to use the case study Egg Company and the Taylor Woodrow company to examine the relationship between different motivational theories and demonstrate an understanding of working with others, teamwork, groups and group dynamics. There are six questions to be answered and you should aim for word count of 2500 words.

Assessment Type Individual

Task 1

  • identify the different leadership styles that are available and discuss the impact that different leadership styles may have on motivation at a time of a change at Egg and Taylor Woodrow’s workforce. (LO 3.1)

Task 2

  • Compare the application of the different motivational theories adopted by the two organisations, Egg and Taylor Woodrow’s workforce. (LO 3.2)
  • Evaluate how has the management of both Egg and Taylor Woodrow’s workforce applied these motivation theories and practices in the company and what benefits, if any, have the companies derived from their chosen motivation practices (LO 3.3)

Task 4

  • Explain the nature of groups and group behaviour within Egg and Taylor Woodrow’s workforce (LO4.1)

Task 5

  • Identify with examples the various factors that could make a team effective and also those factors that may be likely to threat the success and effectiveness of a team. With reference to the case studies, discuss to what extent you believe that these factors have impacted on the effectiveness of the teamwork of the organisations (LO 4.2)

Task 6

Explain the role of technology in the success of a business that know. In view of your argument, evaluate the impact of technology on the performance of Egg’s and Taylor Woodrow’ s company teams and groups and the company’s overall performance (LO 4.3)

 

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COMPANY A: EGG

Egg is the world’s largest pure online bank, established in 1998, It has a reputation for innovation in financial services and was set up in response to consumer demand for a more flexible approach to banking. Today it has more than 3.7 million customers, Egg is best known for its credit card business, but it also offers loans, savings accounts, investments, mortgages and insurance. Egg’s enduring purpose is ‘to revolutionise customers’ experience of financial services driven through unleashing the power of people’. This is like a mission statement, in that it defines the way the company carries out its business. Egg knows its performance will determine its success in winning and keeping the confidence of its customers. It is apparent from Egg’s enduring purpose that it believes in the ‘power of people’. First-rate performance by Egg people offer a first-rate service to its customers. When customers receive a great service, they will tend to buy more. this in turn will lead to greater shareholder value. Egg believes it is advantages to build a strategy of motivation into its culture. Motivation is seen as essential and has been made part of the fabric of the company, known as ‘Egg DNA’,
In essence, motivation is the art of getting people to do things because they want to, or because they see some benefit. At its most crude, motivation in the workplace is linked to pay. It has subsequently been proved that pay is not the only motivation in the workplace in linked to pay. It has subsequently been proved that pay is not the only motivator and in certain circumstances does not act as one at all.

MOTIVATION

For Egg, motivation is about creating an environment where its people:

  • Are involved in planning, performing and achieving for themselves, customers and egg.
  • Have a great relationship with their manager who knows what they want to achieve in their working life.
  • Feel empowered and ‘unleashed’, so they have the power to create change, reach their potential and deliver excellent customer service.
  • Enjoy their work and have opportunities to improve themselves and their role
  • Are recognised and rewarded for the effort they put into making Egg successful.

However, egg also recognises that all the ‘hygiene factors’ which affect motivation need to be in place and work effectively. for example great emphases is place on creating an atmosphere which is conductive to working creatively and powerfully and ensuring that people’s salaries are paid on time. Egg’s approach builds on much of the theory described below Egg aims to understand its people as much as possible and to get the best out of them. By meeting the needs of the individual and giving them ownership and the power to make decisions. Egg ensures that the needs of the business are met. At Egg the role of the manager is vital in ensuring its people are motivated. The management cycle is continuous-managers plan and organise work. They then, in conjunction with their people, distribute the work in such a way that, wherever possible, everyone is undertaking work which motivates them and that they enjoy, and therefor delivers a better result for customers and shareholders. Egg makes sure that each manager knows his or her own people well through training called ‘ know yourself ‘ know your people. It recognises that every individual is unique and the way in which they behave is driven by a number of factors. Understanding how these factors can be harnessed to reach both Egg’s and the employee’s target is of utmost importance.

Over the years, many theorists have tried to discover what motives people. The most-we;;known are Taylor (1856-1917), Mayo (1880-1049), Maslow (1908-1970), McGregor (1906-1064) and Herzberg (1923-2000). Of course, motivation is so important that new theories are constantly being developed (Egg, for instance, uses McClelland’s Three Social Motives) but these are all built on the work of the early theorists. The first of these is FW Taylor’s Scientific Management Theory. Taylor was an American who worked with Henry Ford and may be said to be responsible for the first production lines. He believed money was the only motivator and that there should be a ‘carrot and stick’ approach. This means that for those who worked hard enough there would be rewards, but for those who didn’t penalties would be imposed. Other theorists realised that this was not always the way to get the best out of people.

Elton mayo did not accept that money was the only motivator and he carried out the Hawthorne Experiments at a plant in Chicago to try to discover what really drove people. His Relay assembly Test proved that workers were inspired by directing their own work, working in teams and having a good relationship with management. He concluded that the main reason his subjects, work rate increased was because they were being studied. Having someone show an interest in you is, in itself, a motivating factor. He also found that people were driven when working in teams. People are also influenced by their own aspirations and by friendship groups and managers can use these to assist motivation. What Mayo called the ‘psychological contract’ refers to unwritten understanding between the employer and the employee – each knows what is expected of them. this can be built on to ensure that the workers and the business are reaching their potential.

AH Maslow was an American psychologist who believed that people worked in order to obtain certain things. He established a ‘ hierarchy of needs’, as shown in the figure, stating that people would endeavour to reach each need in order, starting from the bottom. once they had reached a level, they would then strive to achieve the next one. Douglas McGregor studied how employers and employees could each have a view of work. He called the traditional way of working Theory X. Here the employee pays the money, supervises the worker and gives instructions; the worker does the job, asks no questions and accepts the pay. This he balance with what he called Theory Y. This is where most people are satisfied with their employment and take responsibility, McGregor believed that most workers are the Theory Y type and that if people could be treated this way, firms would be more efficient. Frederick Herzberg came to  similar conclusions to Mayo. Asking workers what motivated them, he ascertained that the main things were a ‘ job well done’ , a feeling of being appreciated, trust, responsibility and specific rewards, such as being promoted.

Certain conditions, which Herzberg called ‘hygiene’ factors, were de-motivators if they were missing or inadequate. Pay and working conditions are two of the main ones, meaning that satisfactory surroundings are not necessarily motivators, but inferior environments are certainly de-motivators. Mayo’s theories and conclusions are particularly important at Egg. He commenced from the idea that the better the relations between management and their teams, the more efficient the business would be, Working agreeably is linked to being contented, and satisfaction comes from the employee knowing she/he is appreciated, this is why egg places so much so much emphasis on managers knowing their people well in order that they enjoy their work and are putting in every effort because they want to. Egg believes that to motivate people it is important to balance the needs and wants of the company with those of the individual.

this refers to what the individual wants from their working life. It is discussed in a ‘ know your people’ conversation between the manager and the employee. this conversation is an important opportunity for the employee to talk about what motivates them, what they enjoy doing and what their future aspirations are. Egg endeavours to ensure these needs can be reached by, wherever possible, matching them into a role which takes account of what they want to achieve and thus ‘unleashing their power’.Each person has different levels of aspiration. For example, an ambitious graduate may have different goals and needs to a part-timer with young children or something nearing retirement.

This is something each manager knows through the dialogue they have with their people. taking this approach leads to Egg being a motivated organisation with motivated people. Egg believes that the aims of the company (known at Egg as the ‘Egg Game’)  can be delivered through clear responsibilities and targets (known as accountabilities and objectives). When the accountabilities and objectives have been formulated by the manager she/he will have a further conversation with each team to agree these. They talk about what the employee brings to te job and the knowledge she/he  can acquire and use. Egg recognises that everyone has different training and development needs and ambitions which will enable them to be successful in their particular role and at Egg in general. The framework used for this is called Egg DNA and is made up of:

  • The specific, special or technical skills/knowledge a person brings to the role (e.g. an accountant would need specific accountancy knowledge).
  • The attitudes a person displays in relation to what is being asked of them (e.g. being passionate about the role and about what Egg is want to achieve).
  • The non-technical skills individuals need to do their job (e.g. communicating powerfully).

Egg plans to enhance and improve these qualities and skills through training and coaching the individual to be the best they can in the role they are undertaking. Egg hopes motivated people who enjoy their work will encourage their family and friends to apply for jobs when they become available. It runs a scheme which rewards people financially for this called ‘being a friend to Egg’.

Conclusion

The success of Egg is connected to the way it treats its people. Its enduring purpose sets out what it wants to provide as an organisation and where its targets lie. This includes having satisfied and well-motivated people who strive to deliver an excellent service for customers thus achieving greater shareholder value. By achieving these aims, both the organisation and its people get what they require. This is what Mayo described as a psychological contract.

 

 

Company B: Taylor Woodrow

Taylor Woodrow plc. employs around 6,000 people worldwide. Its primary business is house building. In the UK it builds homes through its Bryant brand and also has housing operations in the USA, Spain, and Gibraltar and in Canada, through its Monarch brand. It offers property development expertise UK wide through its network of regional offices. Its construction business is focused on activities such as Private Finance Initiative, facilities management and specialist engineering consultancy. Together, Taylor Woodrow’s combination of skills in house building, property and construction give the company a powerful competitive edge in the area of urban regeneration and Brownfield development.

The Taylor Woodrow way of working like people, organisations have distinguishing characteristics. These usually feature in an organisations vision and culture. An organisations vision statement describes what it sets out to achieve. Such a statement needs to be: believable, feasible, and inspiring (to those involved in the company). Taylor Woodrow’s vision is “To be the leading developer of living and working environments in the UK and other chosen markets”. An organisation’s culture is the network of relationships and patterns of behaviour within the organisation what the Americans refer to as “the way we do things around here”. Taylor Woodrow’s culture is based on seeking “To ensure that its companies and employees continue to improve and develop in a culture of excellence”.

This places Human Resource Development at the centre of the company’s culture. Besides having a strong people focus to the way it operates. Taylor Woodrow also has a strong customer emphasis, and the teams of people working for the organisation continually strive to exceed customer expectations. Taylor Woodrow wants its customers to feel certain that they can rely on it to deliver products and services (e.g., a new house) at the agreed price and to the highest standard. Employees therefor play a key role in enhancing shareholder value to benefit of the Group and its stakeholders. Most of Taylor Woodrow’s competitors are other large house builders. Its Unique Selling Point (USP) that sets it apart fro rivals is the skill base of its workforce and the fact that it can meet just about every engineering need from within the company

A major problem facing UK housing and construction projects is a shortage of available greenfield sites at a time when demand for property continues to rise. A major strength of Taylor Woodrow is its expertise in developing complex Brownfield sites (on reclaimed land once might have been an industrial area) using integrated teams of specialist brought together for particular projects. Brownfield site development includes remediation: The removal of toxic waste so that the environment is safe for people to live in. This is a highly complex operation.  when working on these complex projects it is essential that the workforce is familiar with corporate objectives in order to enhance company performance and thus gain competitive advantage.

Taylor Woodrow’s workforce

One common misconception is that house builders employ people like bricklayers and labourers. Taylor Woodrow does employ these skilled tradesmen, some of whom are sub-contracted: brought in from other firms as and when required. However, Taylor Woodrow’s core employees also include:

  • Quality surveyors and commercial Managers
  • Business Development Managers
  • project, estate and Land managers
  • Architects and Interior Design Specialists
  • Civil Engineers

The usual promotion route is for specialists in these areas to become manages. Today, the company is looking at taking on more generalists such as business graduates who can then train to become managers. in addition, Taylor Woodrow employs central services staff including Human Recourse specialists and people working in Finance, IT, Sales and marketing.

Individual performance and corporate objectives performance management is an HRD process concerned with getting the best performance from:

  • individuals
  • Teams

The organisation as a whole effective performance management involves sharing with employees an understanding of what needs to be achieved and then managing and developing people in a way that enables these shared objectives to be attained, Ideally, an organisation will have all of its employees ‘pulling in the same direction’ and ‘singing from the same hymn sheet’. Supporters of this HRD approach argue that this two-way process can be effective only where there is a clear psychological contract between employers and employees based on mutual trust and commitment. The Taylor Woodrow group is committed to a performance and Development Review process for all employees, departments and companies. In an individual Performance

Review, a manager and a fellow employee sit down together to: agree on meaningful task objectives for that employee and for the team(s) within which he/she operates identify individual development needs and aspirations.

In preparing for such a review, individuals write down their career aspirations and training and development needs, as well as their successes in meeting previous targets and objectives. Managers will read this prior to the Performance and Development Review and also plan ways of communicating to the employee the varies objectives of the local management team ( and how they support Taylor Woodrow’s wider objectives) that are particularly relevant to that individual. It is then possible at the review meeting to identify the successes of the individual in attaining previously decided objectives, and to identify new targets. With such a system in place, it is possible to establish for a period of time ahead the Key Result Areas against which an individual’s performance will be assessed. In this way, performance is measured against agreed standards. Salaries and bonus payments then reflect the success of each individual’s performance based on a rating system.

Taylor Woodrow believes that the effective management of individual performance rests on managing the performance cycle, which is an on-going process of performance planning, support and review. The planning stage involves agreeing the objectives. The supporting stage involves identifying development needs and how these can be addressed, and then the manager giving on-going coaching, feedback, and support. Reviewing performance involves both informal employee/manager discussions and a formal Performance review tied to the reward process. Each employee receives two formal Performance and Development Reviews each year. A January review establishes objectives for the coming calendar year. An interim July review then examines any further development needs of the individual and the teams within which he/she works. It is essential for managers to feel that they ‘own’ this process and fatal if they see it only as a chore. Properly carried out, the system can operate at every level within a company.
The Performance Review process encourages even the humblest employees undertaking the most routine of tasks to support the company by accepting greater responsibility for their own actions. for example, a mailroom worker used his own initiative to ensure that outgoing mail posted on a Friday was sent off 2nd Class. His reasoning was that no receiving firm would read it until Monday, so why waste the company’s money on next-day delivery? This constructive move continues to save Taylor Woodrow considerable sums annually.

Motivation, performance and pay

In the UK there is a movement towards relating pay and promotion to measured performance. The PRP (Performance Related pay )approach is based on a philosophy of agreeing: the key results areas of the job clear standards of performance and target levels of competence regular, objective reviews of performance and competence. In 2000 a Taylor Woodrow survey of its employees showed that 94% favoured a Performance Review and Pay Review Cycle. This is typical of many companies, where employees prefer objective standards for measuring their performance rather than relay on the subjective views of their line manager. Individual rewards for employees are therefor based upon: the group’s and the individual company’s overall business performance and ability to pay each individual’s contribution to the company’s success the level of salaries and benefits necessary to attract and retain people, taking into account competitive salary arrangements elsewhere,

The Performance Review examines:

the level of skills, competencies and knowledge an employee demonstrates in his/her particular role the degree to which set objectives have been achieved. these are documented particular role the degree to which set objectives have been achieved. These are documented and evidence is provided. Employee rewards are then tied to this Performance Review, which is rated using a scale of 1 to 5, with5 being the highest, Bonuses and salaries are then related to this rating, after consideration of company financial performance. Where employees have skills that are in short supply, the review also considers wages being paid elsewhere for similar work. Salary increases based on the past calendar year’s performance are effective from April 1st. Bonus payments in respect of the previous year are paid at the end of March. A major aim of the company’s Performance and Development programme is to create commitment and motivation at all levels of the organisation, by the organisation itself, managers and all employees.

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