Improving Staff Performance - Week 3

Difference between content and process theories

Content theories such as Maslow’s hierarchy of needs, Hertzberg’s two factor theory and Aldefer’s ERG theory all assume that individuals have a set of needs which they pursue, unlike process theories such as Victor Vroom’s expectancy theory and Porter’s performance satisfaction model which assume individuals select their goals and choose how to get to these goals by a process of calculation. Content theories concentrate on the needs of individuals unlike process theories which focus on outcomes.

Maslow and Hertzberg look at the relationship between internal needs and the effort needed to fulfil them, but Vroom separates effort (which arises from motivation), performance, and outcomes. Vroom suggested that in order for a person to be motivated that effort and motivation must be linked.

Ways in which companies such as John Lewis and Tesco motivate their employees:

John Lewis
John Lewis motivate their employees by offering the following benefits:

1. John Lewis allows their employees to be part of the partnership and share the profits that are made.
2. Employees can improve their performance and therefore can improve their pay.
3. John Lewis is one of the few companies that still offer a known contributory final salary pension scheme after three years service.
4. Employees get annual bonuses and the profits are shared equally amongst the partners as a percentage of salary.
5. Employees are given a discount of 12% on most purchases for the first three months.
6. Employees are given a discount of 25% on most purchases after one year of service.
7. Employees get four weeks paid holiday plus public and bank holidays rising to five weeks after the three years at John Lewis.
8. Employees who have worked with John Lewis for more than 25 years can take 6 months paid leave.
9. Death in service benefit of three times annual salary is paid if an employee dies in service to their spouse or partner.
10. Subsidised dining facilities are offered to employees.
11. Subsidised holidays and leisure facilities for employees and their families
after three months service.
12. Subsidised tickets for theatre, opera and music performances of up to 50%.
13. Employees are encouraged to develop their careers with support of a variety of learning resources.
14. Financial support given to employees who want to continue their education or learn new skills whether these are work related or of a personal interest.
15. Subsidised private health care is available for employees.

Tesco
Tesco’s motivate their employees by offering the following benefits:

1. Competitive salaries at all levels in every area of the business.
2. Employees are given free shares after one year of service and these are held in a trust for five years after which time employees can take them tax free.
3. Proportion of profit is shared amongst staff based on salaries.
4. Employees can take part in a save as you earn scheme where they can save up to £50 every month for either three or five years and receive a tax free bonus at the end. These savings can then be used to buy Tesco shares at up to 20% less than the market price or employees can take the cash if they do not want to buy shares.
5. Employees can join Tesco’s Buy As you Earn scheme and purchase shares at the market price every four weeks saving tax and national insurance on the salary that is used to do this.
6. Employees are given a Privilege card after one year’s service which gives 10% discount and clubcard points on most Tesco products. Staff also have access to staff discounts with Tesco personal finance and Tesco telecoms.
7. Employees have access to a pension scheme and life assurance scheme.
8. Staff have access to discounts and special offers on theme parks, holidays and gym membership.
9. Employees are offered discounted rates on health cash plans, dental cover, and private medical insurance.
10. Employees are encouraged to develop their careers at Tesco with opportunities to get training etc, development programmes are in place to encourage staff to study whilst working.

Motivation models used by John Lewis to motivate employees.

John Lewis use both Maslow’s hierarchy of needs and Hertzberg’s two factor theory to motivate their staff. John Lewis provide their staff with physiological needs such as food, shelter, heat and clothing through their staff discount card saving 25% on purchases in store. The second stage of safety in Maslow’s hierarchy is met by John Lewis as they offer a non contributory pension scheme so employees stay with the company until they retire. This is security for people as they know they will have a pension when they retire and they have not paid anything towards this pension. Social needs in the hierarchy are met by John Lewis because they give their staff discounted holidays, theatre tickets etc. John Lewis help their employees climb Maslow’s hierarchy to reach self actualisation by providing resources for training, development and financial help to learn other skills. Hertzberg’s two factor theory is also used by John Lewis as their company policy allows employees to be partners and this is a hygiene factor, motivator factors of achievement and growth are reached by learning new skills.

Conclusion

Most companies motivate their staff by giving benefits and rewards. By giving these rewards employees are likely to stay with the company and work hard to help the company meet its aims and objectives of being successful. Some companies may use content theories and others may use process theories to motivate their staff but this is done to make sure that employees do not leave the organisation because it is costly and time consuming to train new staff.

Reference List:

Careers – Tesco Careers [online]. Available from: http://www.tesco-careers.com/ [Accessed 16 February 2010].

John Lewis Partnership [online]. Available from: http://www.jlpjobs.com/your-career/your-career.htm [Accessed 16 February 2010].