Motivation: Improving Staff Performance - week 3

   There are many theories of motivation , inter alia Maslow's and Herzberg's explaining what motivates an individual at work. These theories identify people's needs , their strenghts and goals that they want to achieve to satisfy their needs. That theories are known as the content theories of motivation.
   For example McClelland's Achievement Motivation Theory explains how people work to satisfy their needs , when thinking about desired goals.

   Despite content theories of motivation , there are also theories known as process theories of motivation.
These theories are trying to explain the way how behaviour is initiated , directed and sustained.
Many of process theories cannot be attached to single writer because very often one of theories were written by more than one author.
   Process theories spread into:
      - expectancy based models - by Vroom , and Porter and Lawler;
      - equity theory - by Adams;
      - goal theory - by Locke;
      - attribution theory - by Heider and Kelley.
For example , expectancy theory has been developed by Porter and Lawler. Their work goes beyond motivational force and shows performance as a whole. They suggest that the motivational force is mediated by abilities and traits of an individual , not lead directly to performance. Performance , motivation and satisfaction are shown as a separate variables. Porter and Lawler try to explain the relatonship among them. Their model recognises that job satisfaction is more dependent upon performance , than performance upon satisfaction.

   

   

   AMRO Logistics is a Polish transport company working within Europe and Asia. They provide a wide range of transport options by their own means and offer help by using other companies working for them.

AMRO is spreaded into two departments of headquaters and service area. Headquaters is the office where all the business issues are being worked by the staff of seven people. Service area is a part where all twenty trucks and trailers owned by company are being inspected and the service support for other companies is also provided by the staff of five mechanics , two suppliers , one engineer and one painter working in three big and well prepared depots. The drivers of the trucks are also a part of this department.

   Chairman of the company admited that the most resultful method of motivating his employees is the system of salary bonuses. In the headquaters the amount of bonus depends on the amount of sale increase. If the sales are kept under regular amount , the salary is regular as well. If the sales amount increase , then the bonus is given by three stages:

- first stage - five percent of salary bonus

- second stage - five plus four percent of salary bonus

- third stage - five plus four plus two percent of salary bonus

   When it comes to the service area , the amount of bonus depends on staff working effort. If drivers take good care of the trucks and trailers they are using by keeping the average speed they were told so that the fuel and tires costs are being as low as possible , they are being given the bonuses. If the fuel and tires cost are lower , they get bigger bonuses.

   When mechanics , suppliers , painter and engineer take good care of the trucks and trailers by carrying out good inspections , changing what needs to be changed and repairing what needs to be repaired , they get bonuses. If the set of truck and trailer runs a itinerary of about three thousand kilometres in two or three weeks and no important damage happens , then the bonus is big , if something small happens then the bonus amount is smaller , and of course if something important like brakes or engine breaks , they have to go to repair it on the route the truck goes and they have no bonuses given.

   Another method used by the AMRO company is the qualification raising programs as awards for the best employees.

For example if the employee from headquaters makes a benefit for the company , what he gets as award except money bonus is the opportunity to improve his language , computing or any other skills he or she wants for free.

If the service area employee distinguishes from others , he or she is being given a chance to go on manual skills courses , eg. welding , cutting or building with specialized tools and the newest methods with the best materials. Thanks to all of that improvements both company and employee are getting better.

   One of the process theories on motivation used by the AMRO company is Vroom's Expectancy Theory.

When there is an effort from the employee that knows what is being expected from him or her , the level of performance is higher or lower as it depends on what he or she wants to achieve. If the level is higher as mostly it is to be higher as the staff member wants to get praised by superior , higher wages or promotion , the level of that outcomes influenced  by his or her needs is higher as well. The company shows it's staff that they can earn more money or increase their qualifications by increasing their effort.

   In conclusion , AMRO Logistics uses only one method to motivate it's employees , which is based on one process theory on motivation. It shows that the company doesn't have to use numerous methods. It is enough to use one , spreaded into two or three award types , but what is important is that the method must be simple to use and understand for both employee and employer , so that they both can make benefit from it.

Bibliography:

- Mullins , Laurie J. (2010) Management & Organisational Behaviour. Ninth edition. Harlow: Pearson Education Limited.

- Rostowski, K.B. Improving Staff Performance in AMRO Logistics. [Interview] Buckinghamshire New University with K. Rostowski. 15th October 2010.