08. Alderfer –ERG Theory

According to Dinibutun, S.R., (2012) ERG theory states that an individual is motivated to satisfy one or more basic sets of needs. Therefore, if a person’s needs at a particular level are blocked, then attention should be focused on the satisfaction of needs at the other levels.

According to Chang, W.L. and Yuan, S.T., (2008) The ERG theory, a model of human motivation developed 1969 by Clayton Alderfer, extended and simplified Maslow's Hierarchy using a relatively smaller set of needs. The ERG theory attempts to answer the question, ―what motivates a person to act?‖ and assumes that all human activities are motivated by need.

Chang, W.L. and Yuan, S.T., (2008) defines that the ERG theory consolidated Maslow’s five need categories into three levels of need; Existence, Relatedness, and Growth. Each category is described as follows.

(Source: Alderfer, 1969- The concept of ERG theory)

Existence Needs:

According to Ball, B., (2012) includes all material and physiological desires (e.g., food, water, air, clothing, safety, physical love and affection). This corresponds closely to Maslow's first two levels.

Relatedness Needs:

According to Ball, B., (2012) encompass social and external esteem; relationships with significant others like family, friends, co‐workers and employers. This also means to be recognized and feel secure as part of a group or family. Corresponds to Maslow's third and fourth levels.

Growth Needs:

According to Ball, B., (2012) internal esteem and self-actualization; these impel a person to make creative or productive effects on himself and the environment (e.g., to progress toward one's ideal self). Maslow's fourth and fifth levels. This includes desires to be creative and productive, and to complete meaningful tasks.

Ball, B., (2012) outlines that, Existence needs are the most concrete, and easiest to verify. Relatedness needs are less concrete than existence needs, which depend on a relationship between two or more people. Finally, growth needs are the least concrete in that their specific objectives depend on the uniqueness of each person.

Chang, W.L. and Yuan, S.T., (2008) states that there are three relationships among the three needs:

Satisfaction‐progression:

According to Chang, W.L. and Yuan, S.T., (2008) moving up to higher‐level needs based on satisfied needs. This is the main movement of Maslow’s model. Individuals move up the need hierarchy as a result of satisfying lower order needs. In Alderfer’s ERG theory, this isn’t necessarily the case. The progression upward from relatedness satisfaction to growth desires does not presume the satisfaction of a person’s existence needs.

Frustration‐regression:

According to Chang, W.L. and Yuan, S.T., (2008) if a higher level need remains unfulfilled, a person may regress to lower level needs that appear easier to satisfy. Frustration‐regression suggests that an already satisfied need can become active when a higher need cannot be satisfied. For example: if a person is continually frustrated in his/her attempts to satisfy growth, relatedness needs can resurface as key motivators.

Satisfaction‐strengthening:

According to Chang, W.L. and Yuan, S.T., (2008) iteratively strengthening a current level of satisfied needs.

 

“I work for a leading organization in the airlines industry in Middle East as an outsourced staff, In consideration of ERG theory, they airline highly designed for direct staff’s work environment and not too many opportunities exist for outsourced employees.  Even though airline fulfilled the first two needs to outsourced employee, the growth needs are lower and employees move into stress while thinking about their future career path. Further, if growth needs are not met their desires, employees do not seem to find meaning in their work they believe that they are considered just a resources to meet the organizational goals and objectives. Therefore, it's very important that all the three needs are balanced and focused attention is given to fulfillment of all three needs. It is a key role of management to ensure that opportunities exist at all levels within a organization to fulfill.

REFERENCES:

1.   Alderfer CP (1969). An empirical test of new theory of human need.
Organ. Behav Hum. Perf., 4(1): 142–175.

2.   Ball, B., 2012. A summary of motivation theories. Retrieved on www. yourcoach. be> uploads, 3.

3.   Chang, W.L. and Yuan, S.T., 2008. A synthesized model of Markov chain and ERG theory for behavior forecast in collaborative prototyping. Journal of Information Technology Theory and Application (JITTA), 9(2), p.5.

4.   Dinibutun, S.R., 2012. Work motivation: Theoretical framework. Journal on GSTF Business Review, 1(4), pp.133-139.

 07. Employee motivational factors 

Employee relations are not just about the utilization of human resources but the experience and expectations of labor in the workplace and wider society (Blyton, P. and Turnbull, P., 2004).

Brooks, A.M., (2007) divides the motivational factors into two themes;

1.     Intrinsic Motivation: 

1.1 Workplace Performance:

Brown et al. (2015) defines that employee trust in the workplace influences the behavior of employees, which in turn affects firm performance. 

1.2 Attitude:

Intrinsic motivation has been noted as having a large effect on employee attitudes and performance (Deci & Ryan cited in Cho, Y.J. and Perry, J.L., 2012). 

 

2.     Extrinsic Motivation:

2.1 Goal setting:

Successful people in all walks of life consistently set goals to help them accomplish tasks in timely and efficient ways (Rader cited in Brooks, A.M., 2007). 

Regardless of the workplace environment, people who have set and follow their goals will be more successful than those individuals who do not (Brooks, A.M., 2007). 

2.2 Performance Feedback:

Turner, A., (2017) states that lack of direction in determining whether or not intrinsic or extrinsic motivation in some organizations is what drives employees’ performance is a major concern. Failure to fully understand, it can lead to the failure of an organization. Further Turner (2017) says whether intrinsic or extrinsic effects performance culture, organizations will be provided with information necessary to better motivate their employees. Knowledge of outcomes is based on the feed- back received from their work performance (Hackman & Oldham cited in Turner, A., 2017). 

2.3 Empowerment/power:

Empowering makes employees feel that they are appreciated and for making it possible continuous and positive feedback on their performance is essential (Smith, B cited in Manzoor, Q.A., 2012). 

2.4 Job Satisfaction:

According to Aziri, B., (2011), Job satisfaction implies doing a job one enjoys, doing it well and being rewarded for one’s efforts. Job satisfaction further implies enthusiasm and happiness with one’s work. Job satisfaction is the key ingredient that leads to recognition, income, promotion, and the achievement of other goals that lead to a feeling of fulfillment (Kaliski cited in Aziri, B., (2011).

According to Ganta, V.C., (2014) Managers need to find creative ways in which to consistently keep their employees motivated as much as possible. Motivational factors are highly important for every company due to the benefits that it’s able to bring. Such as;

1.     Human Capital Management:

A company can achieve its full potential only by making use of all the financial, physical, and human resources that it has. It is through these resources that the employees get motivated to accomplish their duties Ganta, V.C., (2014).

2.     Intrinsic and Extrinsic Motivation:

Reward management system consists of both extrinsic and intrinsic rewards; where former involves financial rewards (salary, bonus etc) and the later includes non-financial rewards like recognition, security, title, promotion,, appreciation, praise, decision making involvement, flexible working hours, workplace comfort ability, feedback, work design, social rights etc (Yang cited in Shahzadi et al. 2014).

Intrinsic reward emerges in a person after the accomplishment of certain task or work (joy, satisfaction, pride etc.); while extrinsic motivation comes from outside sources or forces as salary, money or grades etc. (Scott and Bruce cited in Shahzadi et al. 2014)

3.     Greater Employee Satisfaction:

According to Ganta, V.C., (2014), Worker satisfaction is important for every company, as this one factor can lead towards progress or regress. In the absence of an incentive plan, employees will not fill ready to fulfill their objectives. Thus, managers should seek to empower them through promotion opportunities, monetary and non-monetary rewards, or disincentives in case of inefficient employees.

REFERENCES:

1.    Aziri, B., 2011. Job satisfaction: A literature review. Management Research & Practice, 3(4).

2.    Brown, S., Gray, D., McHardy, J. and Taylor, K., 2015. Employee trust and workplace performance. Journal of economic behavior & organization, 116, pp.361-378.

3.    Blyton, P. and Turnbull, P., 2004. The dynamics of employee relations. Macmillan International Higher Education.

4.    Cho, Y.J. and Perry, J.L., 2012. Intrinsic motivation and employee attitudes: Role of managerial trustworthiness, goal directedness, and extrinsic reward expectancy. Review of Public Personnel Administration, 32(4), pp.382-406.

5.    Deci, E. L., & Ryan, R. M. (2004). Handbook of self-determination research. Rochester, NY:
University of Rochester Press.

6.    Ganta, V.C., 2014. Motivation in the workplace to improve the employee performance. International Journal of Engineering Technology, Management and Applied Sciences, 2(6), pp.221-230.

7.    Hackman, J. R., & Oldham, G. R. (1976). Motivation through the design of work: A test of theory. Organization Behavior and Human Performance, 16, 250–279. doi:10.1016/0030-5073(76)90016-7

8.    Kaliski, B.S. (2007). Encyclopedia of Business and Finance, Second edition, Thompson Gale, Detroit, p. 446

9.    Manzoor, Q.A., 2012. Impact of employees motivation on organizational effectiveness. Business management and strategy, 3(1), pp.1-12.

 06. McClelland's Needs Theory

McClelland cited in Osemeke, M. and Adegboyega, S., (2017) describes, three central motivational paradigms: achievement, affiliation and power.

McClelland cited in Abbah, M.T., (2014) suggested that need strength is reinforced through childhood learning, parental style, and social norms.

This Need Theory is a motivational model that attempts to explain how the needs for achievement, power (authority), and affiliation affect people's actions in a management context (Osemeke, M. and Adegboyega, S., (2017).

McClelland hypothesized that people are motivated by three needs—for power, for affiliation, and for achievement (Weinbach cited in Fisher, E.A., 2009).

Fisher, E.A., (2009) Defines that Workers are influenced by all three of these needs, but are usually strongly motivated by one of the three types. Effective managers need to be aware of which type of need most strongly motivates their individual workers (Lewis et al.  and Weinbach cited in Fisher, E.A., 2009).

Sinha cited in Osemeke, M. and Adegboyega, S., (2017) posit that McClelland's need theory is closely associated with learning theory, because McClelland believed that needs are learned or acquired by the kinds of events people experience in their environment and culture.

(Source: McClelland & Burnham, 2008)

Need for power:

According to Abbah, M.T., (2014) people with high need for power want to exercise control over others and are concerned about maintaining their leadership positions.

According to Sinha cited in Osemeke, M. and Adegboyega, S., (2017), the need for power is concerned with making an impact on others, the desire to influence others, the urge to change people, and the desire to make a difference in life.

Osemeke, M. and Adegboyega, S., (2017) discovered that people who have a high need for power are characterized by:

1.       Desire to influence and direct somebody else.

2.       Desire to exercise control over others.

3.       Concern for maintaining leaders-follower relations.

Need for Achievement:

Ramlall, S., (2004) defined the need for achievement as the drive to excel, to achieve in relation to a set of standards, to strive to succeed.

McClelland cited in Osemeke, M. and Adegboyega, S., (2017) found that people with a high need for achievement perform better than those with a moderate or low need for achievement, and noted regional, national differences in achievement motivation.

McClelland cited in Osemeke, M. and Adegboyega, S., (2017) identified six characteristics of high need achievers to:

1.     Have a strong desire to assume personal responsibilities for performing a task of finding a solution to a problem.

2.     Set moderate difficult goals and take calculated risks

3.     Have a strong desire for performance feedback

4.     Have need for achievement for attaining personal accomplishment

5.     Look for challenging tasks

6.     Individuals who are not buck-passers.

Need for Affiliation:

According to Abbah, M.T., (2014) need for affiliation refers to a desire to seek approval from others, conform to their wishes and expectations, and avoid conflict and confrontation. People with a strong need for affiliation try to project a favorable image of them and tend to actively support others and try to smooth out workplace conflicts.

Sinha cited in Osemeke, M. and Adegboyega, S., (2017) posits that the people with high need for affiliation have the following characteristics:

1.     They have a strong desire for acceptance and approval from others.

2.     They tend to conform to the wishes of those people whose friendship and companionship they value.

3.     They value the feeling of others.

“I work for a leading organization in the airlines industry in middle east, In consideration of McClelland's needs theory, its supporting me to achieve my career path. I am team leader of the employees who are hired by the airline on contract basis. I have exercised these three needs of theory on them. For example, I completed a task with this team which was tremendously tough because we need to audit the ticket of two years within one month, using this three needs of McClelland theory it was achieved and finally I realized that need for affiliation is higher in myself.

REFERENCES:

1.    Abbah, M.T., 2014. Employee motivation: The key to effective organizational management in Nigeria. IOSR Journal of Business and Management, 16(4), pp.1-8.

2.    Fisher, E.A., 2009. Motivation and leadership in social work management: A review of theories and related studies. Administration in social work, 33(4), pp.347-367.

3.    Lewis, J. A., Lewis, M. D., Packard, T., & Souflee, F. (2001). Management of human
service programs (3rd ed.). Belmont, CA: Brooks/Cole

4.    McClelland, D. C. (1988). Human Motivation. Cambridge University Press.

5.    McClelland, D. (1961). The Achieving Society. Princeton NJ, Van Nostrand

6.    McClelland, D.C. and Burnham, D.H., 2008. Power is the great motivator. Harvard Business Review Press.

7.    Osemeke, M. and Adegboyega, S., 2017. Critical review and comparism between Maslow, Herzberg and McClelland’s theory of needs. Funai journal of accounting, business and finance, 1(1), pp.161-173.

8.    Ramlall, S., 2004. A review of employee motivation theories and their implications for employee retention within organizations. Journal of American academy of business, 5(1/2), pp.52-63.

9.    Sinha, D. K, (2015) McClelland's Need for Achievement Theory. Retrieved on September 15 , 2017 from: http://www.yourarticlelibrary.com/entrepreneurship/motivation-
entrepreneurship/mcclellands-need-for-achievement-theory/40683/

10.  Weinbach, R. W. (1998). The social worker as manager: A practical guide to success.
Boston: Allyn and Bacon.

 05. Employee Retention Strategies

According to Cloutier et al. (2015) Organizations can achieve employee retention by developing four strategies: effective communication should be encouraged, hire a diverse workforce, hire appropriately skilled people and offer employees development and training programs.

According to SHRM’s cited in Cloutier et al. (2015) employee survey most employees quit their job due to reasons that include: lack of opportunities for professional development, inadequate compensation, poor work/life balance, job stress and unfair treatment.

John Mason cited in Kamalaveni, M., Ramesh, S. and Vetrivel, T., (2019) conducted a research and concluded that retention strategies now-a-days are recognized as vital one in most of the industries. John Mason (2008) listed out top ten retention strategies, these are as follows:

1.     Treat employees like the way one treats his/her valuable clients.

2.      Make the employee to fall in live with the company/organization where attached with.

3.      Frame strong strategies for retention which ultimately brings recruitment advantages.

4.      Right person for the right job.

5.     Money is a driver but it is not the main reason for employees to stay.

6.     To determine why employee, stay and leave, form employee committees.

7.     Leadership style of the management.

8.     Recognition

9.     Fun in work teams

10. Competitive benefit packages. 

According to Nwokocha, I. and Iheriohanma, E.B.J., (2012), below mentioned traditional employee retention strategies are currently being employed by most organizations in Nigeria.

1.     Job Satisfaction: Riggio cited in  Nwokocha, I. and Iheriohanma, E.B.J.,( 2012), describes job satisfaction as consisting of the feelings and attitudes one has about one’s job. Job satisfaction can be influenced by a variety of factors, such as pay practice, quality of workers’ relationship
with their supervisor, and quality of the physical environment in which they work (Hamdia and Phadett cited in  Nwokocha, I. and Iheriohanma, E.B.J.,( 2012). Al-Hussami cited in  Nwokocha, I. and Iheriohanma, E.B.J.,( 2012) affirmed that if employees are more satisfied with their job, it will enhance their ability of creativity and productivity.

2.     Training: Wan cited in  Nwokocha, I. and Iheriohanma, E.B.J.,( 2012)posits that the only strategy for organizations to radically improve workforce productivity and enhance their retention is to seek to optimize their workforce through comprehensive training and development.

3.     Reward Strategy: According to Agarwal cited in  Nwokocha, I. and Iheriohanma, E.B.J.,( 2012), reward is defined as something that an organization gives to the employees in response to their contributions and performance and also something which is desired by the employees. The purpose of reward strategy is to develop policies and practices which will attract, retain and motivate high quality people (Armstrong cited in  Nwokocha, I. and Iheriohanma, E.B.J.,( 2012).

4.     Supervisory Support: Simth cited in  Nwokocha, I. and Iheriohanma, E.B.J.,( 2012), in his contribution posits that this is also beneficial for supervisor, because the more competent and more supportive the supervisor is, the more likely the employees and supervisors retain their jobs. Further Simth (2005) states that supportive supervision enhances impact on both organizational commitment and job retention. This will in turn impart on productivity in the organization. A study by Karasek and Theorell cited in  Nwokocha, I. and Iheriohanma, E.B.J.,( 2012) reveals that poor supervision not only caused the dissatisfaction of employees with their work, but also instigated turnover.

 

Employee retention is a process in which the employees are encouraged to remain with the organization for the maximum period of time or until the completion of the project (Sandhya, K. and Kumar, D.P., 2011)

Sandhya, K. and Kumar, D.P.,( 2011) defines that there are few retention strategies which are classified into three levels: bottom level, middle level and high level. Details are in below;

Source: Sandhya, K. and Kumar, D.P., (2011)

REFERENCES

1.     Armstrong, M. (2003). A Handbook of Human Resource Management Practice. London: Kogan Page Limited

2.     Al-Hussami, M. (2008). A Study of Nurses’Job Satisfaction: the Relationship to Organizational Commitment,Perceived Organizational Support, Transactional Leadership, Transformational Leadership, and Level of Education. European Journal of Science Resource, 22(22), 286-295.

3.     Agarwal, N. C. (1998). Reward Systems: Emerging Trends and Issues. Canadian Psychology, 39(1), 60-70. http://dx.doi.org/10.1037/h0086795

4.     Cloutier, O., Felusiak, L., Hill, C. and Pemberton-Jones, E.J., 2015. The importance of developing strategies for employee retention. Journal of Leadership, Accountability & Ethics, 12(2).

5.     Hamidia, M., & Phadeff, T. (2011). Conceptual Framework on the Relation Between Human Resource Management Practices, Job Satisfaction, and Turnover. Journal of Economics and Behavioral Studies, 2(2)41-49.

6.     John Mason, L (2008), Employees Plus: Top 10 Retention Tips.

7.     Karasek, R., & Theorell, T. (1990). Healthy Work: Stress, Productivity, and the Reconstruction of Working Life.New York: Basic Books.

8.     Kamalaveni, M., Ramesh, S. and Vetrivel, T., 2019. A review of literature on employee retention. International Journal of Innovative Research in Management Studies (IJIRMS), 4(4), pp.1-10.

9.     Nwokocha, I. and Iheriohanma, E.B.J., 2012. Emerging trends in employee retention strategies in a globalizing economy: Nigeria in focus. Asian Social Science, 8(10), p.198.

10.                        Riggio, R. E. (2003). Introduction to Industrial Organizational Psychology. New Jersey: Pearson Education.

11.                        Sandhya, K. and Kumar, D.P., 2011. Employee retention by motivation. Indian Journal of science and technology, 4(12), pp.1778-1782.

12.                        Smith, B. D. (2005). Job Retention in Child Welfare: Effects of Perceived Organizational Support, Supervisor Support, and Intrinsic Job Value, Children and Youth Service. Review, 27 , 153-169. http://dx.doi.org/10.1016/j.childyouth.2004.08.013

13.                        SHRM. (2004). New survey finds 75% of employees looking for new jobs 'It's all about the money'. Alexandria: PR Newswire. Retrieved from http://www.prnewswire.com/news-releases/new-survey-finds-75-of-employees-looking-for-new-jobs-its-all-about-the-money-75585522.html.

14.                        Wan, H. L. (2007). Human Capital Development Policies: Enhancing Employees’ Satisfaction. Journal of European Industrial Training, 31(4), 297-319. http://dx.doi.org/10.1108/03090590710746450