MOTIVATIONAL THEORIES EXECUTIVE SUMMARY In this report, we focus on a particular salesman, assumed as Mr. Rohit Puri, who works in TATA Motors, India. We first address the current situation of the company and Mr. Puri’s job, also the issues faced by him in the company. In the second part we analyse two motivational theories in detail that shall help in bringing improvements in job performance of salesmen and also prove beneficial to the company as a whole. TATA MOTORS TATA motors is one of the companies of India, which is internationally well known.
TATA Motors is the top Indian car producer with combined earnings of Rs. 1, 23, 133 crores (USD 27 billion) in 2010-11. They have achieved this by means of producing top of the line commercial vehicles along with numerous decades of imposing performance by their employees. Tata motors is India’s leading and one of the globe’s top five intermediate and heavy industrial producers. It was establish in 1945. Furthermore with more than three million of its cars manoeuvre on Indian roads, the company is the globe’s fourth leading truck producer and the globe’s second leading bus producer.
In September 2004, the company from India is the first to be listed in the New York Stock Exchange and it has also become known internationally as an automobile company by operating in the UK, Spain, Thailand and South Korea. Tata Motors at the moment plans to enhance its global existence within the future by means of launching a few numbers of innovative products. SALESMAN Mr. Rohit Puri is a salesman at Concorde Motors, a TATA Motors dealership showroom in Mumbai, India. His main objective is to sell automobiles in a preferred way in order to generate revenue for Tata Motors.
He does this by negotiating prices and discussing through customers reduction, guarantee and a variety of inducements. Following are the details of Mr. Puri’s job: Duties and responsibilities Help customers with their latest or second-hand car buy. Details of all sales should be documented. Skills Being organized, dressing neat Good communication and writing skills. Environment Organize test drives for customers and indicate the features of the car. Ought to be able to work in most weather circumstances Education Commerce Graduate Salary The basic salary is in the range of Rs. 75000 to Rs. 00,000 per annum in addition to a commission. ISSUES / DIFFICULTIES There are some problems existing in TATA Motors Ltd. , which makes Mr. Rohit Puri and the other salesmen dissatisfied and which need improvement. They are as follows: 1) Pay level, work conditions and environment: Mr. Puri complained about the low level of pay, which is far lower than his expectation, and he believes that they should be paid more correspond to their contributions to the company. Then, they are dissatisfied with their working conditions, such as working meals and job hours. They do not like their food provided by the company.
They think their holiday is too little that they could not relax well, which lead to exhaustion. 2) Lack of sense of achievement and less value of task: Mr. Puri and the other salesmen in the company fail to feel the achievement brought by them as their work performance is only judged by sales volume or sales revenue per month. It leads less desire to self-improvement and interests in job contribution. Furthermore their task is not very clear and valued in the company and so they do not have any enthusiasm to engage in it for longer time. 3) Least employee participation:
The company does not include the lower level of employees in the management and goal setting process. The sales manager and top-level manager decide on the goals of the salesmen in the company. And so Mr. Puri and the others fail to work efficiently as their suggestions and opinions are not considered while setting goals. 4) Unrealistic and unorganised goal setting: The company does not have a systematic way of setting goals, which often confuse the salesmen. Also feedback is non-existent and the salesmen realize that the goals that are made are unreachable so they put less or no effort to attain them. TWO-FACTOR THEORY:
Two-factor theory, an earlier theory of motivation, is widely known by managers. It studies the impact of intrinsic factors and extrinsic factors on job satisfaction. To some extent, it can be regarded as two separated theories, motivation factor theory and hygiene factor theory. Motivation factor theory states that intrinsic factors, such as achievement and growth, could motivate people and lead to a job satisfaction. Hygiene factor theory, on the other hand, presented that hygiene factors, for instance, salary or wages, and supervision, could help placating workforce and reducing job dissatisfaction.
Source: http://www. 12manage. com/methods_herzberg_two_factor_theory. html Actually, in order to satisfied and motivated employees, both hygiene factors and motivation factors need to be considered. However, it seems that no motivation factor could stand, if without hygiene factor. As can be observed in the diagram, dissatisfied and unmotivated employees firstly felt not dissatisfied as before with the help of hygiene factors, and then, after creating motivation factors, they turn into satisfied and motivated. RECOMMENDATIONS
To eliminate job dissatisfaction and resist negative emotions, it is rather important to make changes with the two-factor theory mentioned above when managing salespersons in TATA Motors Ltd. The following changes can be made: Salaries or wages is regarded as the primary sector of satisfaction; therefore, the salary problem should be solved in the first place. The right way of solving this problem is to hike wages annually, and the salary level could increase by 10% each year. In addition, to reduce the level of their dissatisfaction, company could make corresponding changes of working condition.
In terms of improving job meal, they could improve their working meals by employing cooks with better cooking skills, or changing the menu once per month. They could also rearrange their job hours, for example, adding a coffee hour at 3 p. m. , which could increase their efficiency in the coming hours. Besides, the company could alternate the holiday structure from 1day off per week to 4 days off per month, so that workers could adjust their time, as they wanted. Company can set several measurements on assessing outcomes of salesmen at the same time.
For instance, superstar on sales volume, superstar on customer service and superstar on professional skills. All these rewards can be evaluated per mouth with prize, more importantly on verbal praise from superiors and publicly admired by other coworkers. It is essential to set up a complete training schedule including pre-job and mid-job training for salesmen to enhance their professional skills as well as interpersonal communication. This plan should adapt to the current situation, such as consumption demand and consumer behavior.
More specific, one pre-job training and every other month mid-job training is required followed by the schedule strictly. JUSTIFICATIONS AND CONSEQUENCES Tata motor Ltd has found that the performance of their salesmen is fairly inadequate and the complaint among their faculty is dramatically increased. Tata motors Ltd urgently desires to reverse this situation; therefore, it has adopted the two-factor theory, which is also called the motivation-hygiene theory. Just as its name implies that includes two aspects, hygiene and motivation. Two-factor theory can be properly used in this company.
From Tata manager’s view, it offers Tata with a scientific structure theory to solving the current dissatisfaction of salesmen’s work. On the other hand, this theory would change the working situation by motivating salesmen with both material and spiritual measures; indeed, this theory is highly operable in daily performance on salesmen. It should be noticed that managers’ discrimination between salary and rewards is quite useful for the implementing theory. It is the extreme importance to connect with the two factors, which are reward for salesmen.
Even though there are recommendations to improving pay level. Salary can be as a basic demand to appear hygiene factor. It just helps salesmen to make their work efficient. However, rewards have different properties by salary; if managers associate salesmen’s rewards with their achievement and advancement of work, the salesmen’s motivation will increasingly rise. Throughout the survey, it can be known that hygiene factor and motivation factor have an extremely close relationship; it can be regarded as intrinsic factors and extrinsic factors for the job satisfaction.
Hygiene factor ensures the basic extrinsic demands for salesmen, and it prevents the rate of process from reduction. At the same time, motivation factor makes salesmen full of enthusiasm and makes them rebuild self-confidence and improving their work skills. Motivation factor makes salesmen treat their work passionately, which can help Tata earning more profits, as well as achieve self-value. IMPLEMENTATION AND RESISTANCE Hiking wages, of course, is the most directed way to decrease employees’ dissatisfaction. However, there is a saying that increasing salary will make employees lazy.
Therefore, it is a risk for the company making such changes if it is useless. Company could observe how salesmen perform by comparing with the unchanged level and adjust it. To some extent, employing better cooks and changing menu might be useful. But, it is costly to do so. In addition, although the logistics has tried its best on job meals, it seems that it cannot fully meet all their demands. Hence, we advice the company set microwaves and refrigerators in the cafeteria that employees could serve themselves, and ask the other employees ordering meals from the nearby restaurant.
Adding a coffee hour seems to be fine, whereas, rearrange of holiday structure seems need some supplements. Assume that all the employees ask for leave on one day, and then no one will be at work. Hence, it is important to add the limited number of leaving from work per day. For example, the maximum of leaving from work could be set at 5 persons. As to the achievement, it is easier to assess the sales volume than giving an objective judgment on customer service and professional skills performance. The relationship between salesman and his superior could also affect the esults evaluated with insiders’ assessment; sometimes it would lead to an unfair competition. On the other hand, evaluation it self can be costly. It takes time and money to accomplish the motivation, for example, interviewing customers about service quality, establishing independent team to appraise performance of salesmen. Everything has two sides, training itself is good for employees growth and self-improvement, while it must be adopt to individual not just to general situation. Pre-job training is vital to all staff, no matter how talent and experienced you are.
However, mid-job training is relatively flexible–if a salesman performs wonderfully thus there is no need asking him to attend every training demonstration, it could make himself feel unfruitful. As to the company, frequently training classes occupy scarce resources, which are an input to generate maximum profits, eventually, losing the sustainable basis to move on. To conclude, in order to reduce the dissatisfaction level of salespersons, company should consider more about their feeling, and get feedback in time after making changes. Then adjust their strategies according to the feedback, so that dissatisfied employees could be soothed.
GOAL SETTING THEORY: Goal setting is a part of motivation and directs human behavior towards a particular task. Goal setting theory is one of the most useful and valid motivational theories so far. It deals particularly with the aspect of setting goals in business organization. This aspect is very important to achieve the target of the organization. Dr. Edwin Locke is the author of Goal setting theory. He was a pioneer in study and research of connection between setting goals and motivation. Goal setting theory explains that the setting up of goals in the organization will improve the performance of employees.
It implies that the specific goals and difficult goals when accepted by the workers of the organization results in higher performance of them. This theory can be at its best when practiced with its five important principle aspects, which are Clarity, Challenges, Achievable, Commitment and Feedback. CLARITY: Clarity is the one of the important aspect of the Goal setting theory. It says the Goal that is fixed in the organization has to be very clear and easy for the employees to understand it. The goal has to be specific and no assumptions are allowed in it. CHALLENGES:
The goal has to be very challenging for the employees to achieve it. The employees ignore easy goals as it does not bring the best out of them and also the challenging goals will make the employee more interesting and exciting in doing the work. ACHIEVABLE: The goal has to be very challenging for the employee but not too steep for him to achieve. If the goal is more than employees potential then it will have no good for the organization as well as the employee, instead it will be worst on its effect that it will demotivate him rather than motivate him. So the goal has to be in the reach of the employees potential.
COMMITMENT: Commitment is another primary factor of goal setting theory. Management and the employees must be committed and work towards the goal as the tasks are challenging. Involving the employees in the management decisions and meetings leads to commitment. The discussion has to be participative in nature. FEEDBACK: Feedback is the crucial factor of goal setting. The managers have to give the feedback to employees after the completion of the task and keep them motivated. This feedback gives the employees the clear picture about what work they had done and what has to be done to achieve the goal.
It will be very useful in those goals, which can be achieved during long run. RECOMMENDATIONS * * Since the company has an unorganized and intermittent way of setting goals, the following changes will help in the improvement of salesmen’s and company’s as a whole efficiency and performance. * * All the salesmen must be included in goal setting. This can be done by encouraging employee participation in the process of goal setting, which will give them a sense of being an important part of the company. * * Set specific and difficult goals regarding sales of cars during a particular period.
Also the company can break the goals into bite sizes and increase clarity amongst employees. * GOAL: Each salesman should increase his individual sales by 5% each month. * * Set equal goals for all individual salesmen through out the company, which help in eliminating the fear of partiality amongst the salesmen. * * Ensure goal commitment by announcing about the commitment, or arrange formal session of inspirational mentoring and leadership. * * Conduct regular meetings with the salesmen regarding their performance and progress on their respective goals * Provide required training and skills to attain the goals * * Make salesmen the part of review process * * Give regular feedback to salesmen * * Verify individual goals are in alignment with the company’s current and future goals as a whole * * JUSTIFICATIONS AND CONSEQUENCES * Goal setting is a general theory that can be applied in a multitude of work situations. Support for the theory comes from individual and group settings, laboratory and field studies, across different cultures and involves many different tasks (Locke ; Latham, 2002). *
The decision to implement the above suggestions results from dissatisfaction with current performance levels of salesmen in TATA Motors Ltd. Goal setting theory is apt for this company, as it will provide the company with a structure to direct salesmen to improve unsatisfactory performance. The autonomy of the salesmen to set their goals will help the company to “ensure that the goals are not unreasonable” (Redmond, 2011). Setting up specific goals will help to erase confusion in the minds of the salesmen. According to a research, there exists a direct relationship between goal setting, effort involved and level of performance.
The changes suggested by us will help this relationship to be positive, as it ensures commitment of salesmen towards the goal, provides required training to attain it, and has specific goals rather than conflicting goal. Salesmen in the company are also very much capable to help the company in bringing the changes that are required. The suggestion of regular feedback and reviewing the processes regularly will help in retaining goal commitment from the salesmen. It will also help in bringing about any changes in the company if required by identifying any indispositions. As the company is not required to make any huge amount of investments to implement this theory, it is worth and feasible with regards to the outcome, which are very effective. * By implementing this theory in TATA Motors, not only does it generate the challenge that helps salesmen to overcome the difficult and taxing tasks, but also give them an opportunity to have a sense of importance and self-efficacy. * * * * IMPLEMENTATIONS AND RESISTANCE: * * The above suggestions require employee participation in goal setting; this is feasible if done in an organized manner.
In order to avoid any havoc or conflicts the company can invite suggestions and recommendations from salesmen but the final decision making and setting up the plan of goals must be done by higher authorities and managers keeping in consideration the capabilities of the salesmen. * * Setting difficult goals is very effective, regardless of whether a goal requires cognitive or physical exertion, studies have shown that the greatest amount of effort is applied to those that are considered more challenging (Latham, 2004). However the company must keep in mind if goals are overprescribed, it can cause problems.
Ordonez et al. (2009) argued that unethical behavior could result from motivating employees to meet specific and challenging goals. Therefore in the case of TATA Motors, salesmen can manipulate the data and information in order to attain the increased amount of sales prescribed by the company (5% increase). This kind of dishonest behavior is done to reach monetary goals. According to the authors, this focus on goal attainment can actually promote unethical behavior by creating a “focus on ends rather than the means” (Ordonez et al. , 2009, p. 12).
This should however not be seen by the company as a problem as there are solutions to it, such as organizational control systems, presenting awards, and encouraging ethical work behavior. * * Another resistance is tunnel vision that is salesmen focus only on the specified goals and ignores all the other aspects such as customer service. The company must ensure this does not exist. * * Overall, Goal Setting theory is a very simplified theory. The changes suggested above do no require huge financial investments but however requires investment of time, systematic processes, improved quality of manpower and essential management decisions.
This theory is a self managed theory, so the cost is not very high. The only costs incurred are in conducting training sessions and any other mentoring sessions for the salesmen. * * IMPLEMENTATION PLAN: The company has to set up a precise target and schedule (half a year as a changing period) which should be obtained after changing, evaluate feedbacks compared with target regularly. TATA Motors will need to bring about all the changes simultaneously and not one after the other as all of them is interlinked together.
The changes according to two-factor theory can last for the first two months of implementation (i. e. changes in working conditions). Also other changes of two-factor theory and goal setting theory if proven to be successful should be continuously implemented until any problem arises. If company and salesmen do not satisfy the results at the same time, it should be considered to end motivation theories or do some changes on the plan. REFERENCES: * GE: Our Company. (2009) from http://www. ge. com/company/index. html * Latham, G. P. (2004). The motivation benefits of goal setting.
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