Environmental Trends, Maslow's Hierarchy Of Needs And Incentives For Employee Motivation

Environmental Trends Identified by Stone

1.Discuss four Environmental trends Identified by Stone (2005) for your Selected Company.

2.Evaluate and Elaborate on how the Maslowâ's Hierarchy of needs can help motivate Employees at your selected Company..

3.According to Mathis and Jackson (2000) Incentives can be one of the best ways to motivate employees. Propose five types of Incentives Pay Plans which will help motivate your selected Company's Employees.

4.The Working Environment of Employees is not static and as such there is greater Emphasis on the Importance of Performance appraisal and Career Planning. Analyze any three ) Points each in this regard, for your selected company.

5.Using the Concept of Job Enlargement, Identify the four possible reasons for resistance from Employees at your selected Company if it is introduced.

1.When it comes to the planning of Human Resource (HR), the impact of the environmental factors, along with the structure, culture, objectives and the HR management have to be considered (Truss, ‎ Mankin and Kelliher, 2012). For Changi Airport Singapore (Changi), this has been true.

Economic: The economy has a great impact over the strategies which are formed for the HR purposes. The boom or slack in the economy can influence the hiring of the company and even the budgeting or the costs associated with it (Schramm, 2014). For 2015-16, the employee compensation which was paid by Changi was 17% of the company’s expenditure and stood at the value of S$221 million (Changi, 2016). The expenses increased due to the employee compensation, which depicted the increase in hiring, with the growth of economy.

Social: The social factors also hold the influencing power with regards to HR planning (Norton, 2008). For instance, if a company complies with the applicable employment laws and regulations, it would gain the goodwill required to both hire and retain talent. For Changi, the Code of Conduct sets out the standards, policies and principles which have to be followed by the employees of the company. This helps in creating a strong whistle blowing framework, which is a major attraction for the employees of this day and age (Changi, 2016).

Demographic: The demographic factors which have a power of influencing the availability of HR include the training requirements and the work arrangements (Salaman, Storey and Billsberry, 2005). Changi has been focused upon creating a strong employer brand, which was confirmed on April 07^th 2016 where the company had been recognized by Randstad as being the Singapore’s Most Attractive Employer. This survey depicted that the good training and long term job security, along with the working atmosphere and financial health were deemed as the contributing factors. This helps the company in being on track for engaging both the present and the possible employees. Workshops are also conducted by the company so that the HR managers can be equipped with the required techniques for interviewing (Changi, 2016).

Maslow's Hierarchy of Needs for Employee Motivation

Technology: The selection, recruitment and job design is influenced by the usage of advanced technology, along with the training requirements (Newell, Robertson and Scarbrough, 2009). The recruitment page of Changi is very interactive and uses the technology for its advantage. It depicts not only the internship and employment opportunities, but also the scholarships and the life at Changi. The interactive page depicts videos, pictograms, photos, stories and fun facts, amongst the other things, which denotes the proper use of technology (Changi, 2017). Using this technology, the company created a primary employer brand video, which was promoted across different online platforms, for instance, LinkedIn (Changi, 2016).

2.In 1943, Abraham Maslow proposed a psychology theory in Psychological Review, under the paper titled “A Theory of Human Motivation” (Kandula, 2006). In this theory, he stated that the hierarchy of needs contains a five tier model of human needs, which can be depicted through the pyramid as hierarchical levels. The five stages given under this model depict the deficiency and the growth needs (Rakowski, 2011). The physiological, safety, belongingness and love, and esteem needs are the deficiency needs. The most top denotes the growth needs, which is the stage of self-actualization. The four levels of deficiency needs are such which motivate the people to achieve more, till the time they are not met (Pichère, 2015). And till the time such needs are fulfilled, the needs become stronger. In order to progress towards the high level of growth needs, the lower levels have to be satisfied. This is because of the emphasis of Maslow over the needs of the humans to be arranged in a hierarchy (Maslow, 2013).

(Source: McLeod, 2007)

For the employees of Cheng, the Maslow’s Hierarchy of needs, helps in motivating the employees of the company.

Physiological needs: The psychological needs are considered as the basis needs under this theory. This denotes that the employees of the company need to have such a pay scale which enables them to fulfill these basic needs to food, warmth, sleep, rest and water (McLeod, 2007). The award which the company got from Randstad has built a strong employer brand. The company works on improving the quality of hires, whereby the new talent solutions system was brought into place by the company recruiters for selecting the candidates for the higher level positions. Such programs help the employees in attaining a quality level, which helps in fulfilling the needs contained in this segment. The employees of the company are also encouraged to adopt a healthy lifestyle by designing mental and physical fitness well-being and healthy eating (Changi, 2016).

Types of Incentives Pay Plans to Motivate Employees

Safety needs: Till the employee feels that they have job security and their safety is kept supreme, safety needs are not fulfilled (McLeod, 2007). The Randstad had one of the factors as the long-term job security. The company also takes safety and the security of the workers very seriously. The management and the board of the company are responsible for managing both the safety and the risks of the company. The company came up with an innovative aircraft earthing pit design, along with an aerobridge earthing device in order to improve the safety of the individuals who work in the aircraft parking aprons (Changi, 2016).

Love and belongingness needs: This need depicts the requirement of acceptance, trust, intimacy, friendship and affiliation (McLeod, 2007). In order for the employees to interact with each other and to inculcate the feeling of belongingness, regular group activities are undertaken. Through a higher participation rate, success for these activities is attained. The company encourages its employees to share their personal stories with fellow colleagues, which helps in attaining this need (Changi, 2016).

Esteem needs: The esteem needs denote the achievement, status, prestige, respect and independence for the employees (McLeod, 2007). The Randstad award was one of the factors which boost the status for the employees. The directors of the company have diverse expertise, which helps in fulfilling this need (Changi, 2016).

Self-actualization: This is the stage where the potential is realized by the employees, and which results in the employees seeking personal growth for self-fulfillment and for peak experiences (McLeod, 2007). The company strives to nurture each of its employees and to provide opportunities to them for their personal growth. And this is done whilst the inclusive and collaborative workplace culture is maintained (Changi, 2016).

3.Mathis and Jackson (2002) proposed that in order to improve upon the performance management, performance of the employees and to motivate them, the most effective manner is incentives. There are a range of incentives pay plans which can be used by Changi so that its employees can be motivated and these have been summarized below. 

Sales Compensation: Through sales compensation plans, the employer is not only given the salary, but as an incentive, such an amount is given to him, which is linked to the sales of the company (Mathis and Jackson, 2008). So, in case the company has high sales, as a result of the efforts employed by him, the employee would be paid a higher incentive base. Such incentives are suitable for the employees of sales and marketing department, as their efforts ultimately bring the customers for Changi.

Performance Appraisal and Career Planning for Employees

Cash Bonus: These denote a lump sum amount being paid to the employee on periodical or occasional basis, so as to boost their performance. It can be either given to a particular department or division or to every employee of the company (Mathis and Jackson, 2008). The annual report of the company for the year 2012-13 denoted that of the $9,999,000 paid as key management personnel compensation, the bonus was included (Changi, 2013).

Skill Based Pay: For the formal certification of the mastery of the employee with regards to their competency, skills and knowledge, the employee is rewarded with an addition pay and this is known as the skill based pay (Mathis and Jackson, 2008). Skill is something which is most valued in aviation industry and for Chang, such an incentive pay would also help in attaining and retaining talent.

Piecework: This is such pay scale where the price is paid at a fixed piece rate for each of the units produced or for the actions performed (Mathis and Jackson, 2008). However, such an incentive based pay scale would not be suitable for Changi, as this method is suitable for manufacturing industries only.

Profit Sharing Plans: The profits sharing plan is the most common form of incentive where the employee is paid a share in the company’s profits (Mathis and Jackson, 2008). The contribution of employer in this plan is discretionary and so, the management of the company takes the decision to share or not share the profits with the employees and the amount which has to be shared. Changi made a net profit of S$784 million after taxation (Changi, 2016). This contribution had a high contribution of the employees and hence, profit sharing would probably be the best mode for the company to motivate its employees.

4.A crucial role is played by the working environment of the employees, which is constantly changing in this dynamic world. This increases the emphasis on the significance of career planning, as well as, on the performance appraisal.

Importance of Performance Appraisal: Through performance appraisal, not only the performance of the employees can be improved but also the productivity can be. When an employee is appraised for their efforts and for the work done by them, they try to work harder and achieve more. Further, it encourages the other employees to work more, so as to get similar appraisals. Performance appraisal also helps in growth and development of the employees. Such appraisals lead to employee being promoted, which results in their growth. Plus, with higher levels, the skills of the employees develop. Lastly, through performance appraisal, the training needs can be identified (Deb, 2009). This is the reason by Changi has worked towards providing its employees with regular trainings. This helps the employees in polishing their skills and also getting accustomed to the latest trends in the industry.

Reasons for Resistance to Job Enlargement

Importance of Career Planning: Career planning also has a lot of significance when it comes to employee motivation. The quality of life is increased for the employees through career planning. A properly planned career helps in chalking out a clear career path for the employees. Further, this gives the employees a direction and a goal to achieve. Career planning also helps in equal opportunity laws to be complied with. When the employees have equal opportunity in work place, not only is their career progressed, but the unnecessary penalties owing to breach of equal employment opportunity laws are steered clear. Lastly, through Career planning, the sense of obligation is raised on part of the employer towards its employees. This is because of the increased educational levels of the employee with regards to the equal employment opportunities. Further, it becomes the duty of the employer to give the employee the chance to progress in their career, when they work for the growth of the company in exceptional manner (Lussier, 2008).

5.Job enlargement denotes the increase or rise in the tasks at work, along with responsibilities, so as to make the position of the employee, more challenging. It is also stated as a horizontal experience, where the tasks are given to those who hold the current position in the company (Griffin, 2007). Job enlargement is often resisted by the employees of the company due to numerous reasons. Some of these have been summarized below.

Often, the job enlargement is considered as an addition of boring tasks and more routines to the job of the employee. The aviation industry does seem very immersing from the outside, but there are a range of activities which prove to be boring work for the employees. This is because the same procedure is repeated over and over again. Gann (1961) described flying as hours of boredom, which was punctuated with certain moments full of complete fear (Airliners, 2017). The same work is repeated and even the added routines are monotonous.

Through job enlargement, a range of tasks are given to the employee. If an employee works on a particular task, an expertise or a specialization is attained. Hence, due to job enlargement, the employees are not able to take advantage of job specialization. For instance, at present, the board of the company is full of individuals who have diverse expertise. In case they are given the responsibilities of three or four more fields, which are out of their expert area, this expertise would be passed away. Even though this may seem implausible at top tier, the same is very true for the lower level management.

At times, it is noticed that the employees take interest in doing the same task over and over again, which ultimately leads to their specialization and also keeps them in their comfort zone. There are people who hate changes and job enlargement brings with it such changes which make the employees go out of their comfort zone, and thus, attract resistance from the employees. Hence, if a flight attendant is also given the work of the ground staff, the flight attendant would resist it due to the change roles and responsibilities of the two different work profiles.

It is also noticed that the job enlargement is opposed by the union, as the same inhibits the new recruitments. In other words, by giving the current employees the roles for which new people could otherwise have been hired, the unions of the workers or the employees oppose the same, as the opportunities are ended with the concepts such as job enlargement. Taking inference from the example given in previous point, when the work of the flight attendant and that of the ground staff is given to the same employee, two posts would be occupied by one person, which also translates that opportunity for one new employee is ended.

References

Airliners. (2017) Airline Flying: Boring? [Online] Airliners. Available from: https://www.airliners.net/forum/viewtopic.php?t=175145 [Accessed on: 22/06/17]

Changi. (2013) Future Ready: Annual report 2012/13. [Online] Changi. Available from: https://www.changiairport.com/content/dam/cacorp/publications/Annual%20Reports/2013/Changi_Airport_Group_Annual_Report_20122013_Full_version.pdf [Accessed on: 22/06/17]

Changi. (2016) Journey of Transformation: Annual report 2015/16. [Online] Changi. Available from: https://www.changiairport.com/content/dam/cacorp/publications/Annual%20Reports/2016/CAG%20Annual%20Report%20FY1516.pdf [Accessed on: 22/06/17]

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Lussier, R. (2008) Management Fundamentals: Concepts, Applications, Skill Development. 4^th ed. Mason, OH: Cengage Learning.

Maslow, A.H. (2013) Toward a Psychology of Being. US: Start Publishing.

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