Human resource management is a very integral part of effective management in the workplace. The organization and the human elements are synonymous when analyzing the importance of people in an organization. Every organization that is planning to achieve the best results from employees must ensure that there is a spirit of corporation and commitment among all workers (Tella, Ayeni and Popoola, 2007). This can be achieved through employee motivation which helps to improve employee job satisfaction and organizational commitment. Locke and Lathan (1990), defines job satisfaction as a positive emotional feeling that results from appraisal of an employee’s job. An employee is highly motivated if his or her job provides things that are seen as important. According to Tella, Ayeni and Popoola (2007), organizational commitment refers to a strong desire by an employee to remain a loyal member of a particular organization. Even though both job satisfaction and organizational commitment enhance productivity in an organization, job satisfaction is viewed to be more strongly related to performance at Pepsi Company than organizational commitment.
Job satisfaction is more strongly related to performance than organizational commitment because it encourages employees to remain committed to an organization. Reduced organizational commitment occurs when there is lack of job satisfaction. Employees at the Pepsi Company are encouraged to perform because the company assists them to have positive perceptions of their jobs (Tella, Ayeni and Popoola, 2007). The company understands that job satisfaction cannot exist without motivation. For this reason, Pepsi’s management strives to increase employee job satisfaction through good salaries and benefits, advancement opportunities, technological challenges, on-the-job training, and many other strategies. According to Guest (1991), high organizational commitment results into low employee turnover, but it is not directly associated with performance (Tella, Ayeni and Popoola, 2007).
Pepsi is one of the best companies to work for because it takes good care of employees through constant motivation. The motivational strategies used by Pepsi to enhance employee performance can be explained in terms of McClelland’s Theory of motivation. McClelland’s Theory of motivation assumes that all human beings have three motivating drivers regardless of age, culture, and gender. These motivating divers are achievement motivators, affiliation motivators, and power motivators (Peterson, 2007). As far as McClelland’s Theory of motivation is concerned, a motivated employee always has a strong need to accomplish challenging goals, often wants to belong to a group, and always wants to influence and control others. Pepsi Company employs McClelland’s Theory of motivation in enhancing employee job satisfaction and organizational commitment by identifying the dominant motivators that its workers need and using this information to influence how workers set objective and provide feedback. In addition, McClelland’s Theory of motivation assists human resource managers at Pepsi Company to identify the best forms of rewards that will enhance team performance (Peterson, 2007).
One of the principles of performance management requires that human resource managers must be guide employees towards achievement of the desired output. Pepsi managers ensure that all employees are adequately informed of the company’s objective which they work hard every day to achieve. These managers begin by identifying the potentials, capabilities, and personal characteristics of workers before assigning roles. The managers then give employees some latency period to allow them adapt to their work environment before their responses are assessed. The end result is improved productivity and enhanced performance in the company (Beckford, 2010).
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