Intrinsic and Extrinsic Motivation System †MyAssignmenthelp.com

Question: Discuss about the Intrinsic and Extrinsic Motivation System. Answer: Introduction The following report focuses on a case study of the company Hennes Mauritz (HM), which is a Swedish retail company dealing in clothing. The company is popular for its fast fashion clothing options for kids, men, teenagers, and women. The company has approximately 4500 stores which are located in more than 62 countries. The company also deals in online retailing providing its shoppers experience in online shopping. The company has a huge employee and customer base which has made it the second largest clothing retail chain (HM Group, 2017). This report aims at discussing the HR practices of the company with respect to motivation, performance management, rewards system, and health and safety legislations. The audience for this report is the management of HM. the report is based on the secondary literature and no primary data has been gathered for this report which serves as its limitation. The aim of this report is to analyze the HR practices that are employed by the company, HM in managing its employees. In order to attain the aim of this report successfully, following objectives have been developed. To understand the business setting of the company in relation to job ability, motivation and reward systems adopted by the company To gain an insight on the employment relations and health and safety legislations adopted by the company To understand the performance management of the company with the application of suitable models and theories To make recommendations for the gaps identified and for the enhancement of organizational effectiveness and efficiency. Business Setting in HM It is essential for the organizations to manage its most important asset, that is, its employees. If the employees are satisfied in the organization, it is likely that the company has better productivity and profitability. The job ability refers to the different skills required by the employees to carry out their work duties. The company requires different job abilities for different job positions; however, there are certain abilities and qualities that are to be present in an individual to work for the company. The company looks for those individuals who are passionate and dedicated towards fashion and design, are focused on achieving customer satisfaction. It also looks for people who are business driven, and who have a similar set of values as that of the company (HM, 2016). Apart from these basic job abilities, employees working in different departments are required to have the relevant expertise. For example, a sales employee is required to have the convincing ability, presentation skills, and effective communication abilities. The company's HR strategy is influenced by the Maslow's need Hierarch theory which indicates that there are five level of needs, the satisfaction of each need level motivates an individual to move to the higher level of needs (Maslow, 2013). In the context of HM, the company is offering a good salary, incentives and opportunities for establishing networks within the organization (HM, 2016). Its HM incentive program ensures long-term commitment and involvement of its employees, which as per the Maslows theory are satisfying the physiological, safety, and belongingness needs (HM, 2017). The company is also allowing its employees with proper opportunities to accomplish their self-esteem and self-actualization needs and for their personal growth and development by providing them challenging tasks and presenting their potential. As a part of its reward management system, the company offers a complete benefits package which is inclusive of incentive bonuses, staff discounts, pension scheme, private healthcare, and sick pays. Even though the company does not offer any share options to its employees, it provides ample opportunities for their growth and development (HM, 2017a). The company believes in intrinsic motivation theory and does not consider pay structures, and titles to be effective motivational tools; rather, they provide them the opportunity to showcase their skills and potential (Sansone Harackiewicz, 2000). The company has adopted the total reward management approach in its working. The company apart from giving its employees the financial compensation, believes that the best reward for any employee would be job satisfaction which would motivate them to do give their best. As a part of reward systems, the employees are provided different opportunities for personal development by being included in the decision-making process. Employment relation and health and safety legislations In order to ensure effective employment relations in the company, it follows a democratic management style and an open door policy for its employees. The employees are free to discuss any work-related issues that they face, directly with the management. The company also allows its employees the right to collective bargaining, so that it can easily establish good relation not only with individual employees but also with the trade unions and employees association (HM Group, 2016; HM, 2017b). In the context of health and safety legislations, the company ensures that it has a sustainable and pleasant working environment for its employees to work. It has taken preventative measures for ensuring the general well-being and long-term safety of its employees. It even encourages its employees to report any accidents or any unsafe working condition to their superiors (HM, 2017). It also adheres to the various laws that are levied by the government on its operations. The company provides a lot of training and development options for the personal development of employees. It believes that if the employees are well trained, they are likely to perform better, which in turn would improve the overall performance of the company. The company ensures that every new joiner and existing employees go through training and development so that they become familiar with the companys values and working (HM, 2017d). The development in the company is a continuous process, it enables the managers to prepare the employees for future challenges and giving them an opportunity to showcase their skills. The company has even initiated a skills training program for its workers in Bangladesh (Rayapura, 2014). Through its development programs, it ensures that its employees are aware and empowered (Fair Labor Association, 2011). The company has adopted an integrated and strategic approach to attaining organizational success by improving the performance of its employees. The goal setting theory of performance management can be applied in this scenario, which indicates that the goals set by the company for the employees are significant in motivating them to work better (Pride, Hughes Kapoor, 2009). If the goals are not achieved, either the goals are made more realistic or the employees try to improvise their performance (Locke Latham, 2013). The organization appraises the efforts and improved performance of the employees are providing them more incentives and benefits and offer better and challenging opportunities in the future. The leaders of the company believe that in order to ensure better productivity of the company, there has to be a certain degree of discipline in its working. Even though the company follows an open door policy and democratic form of management, it still has disciplinary actions stated in its code of conduct. In case of any complaint received, especially for the conduct of abuse or harassment, the companys officials are likely to take disciplinary action against the employee who is found guilty (Fair Labor Association, 2009). However, it also allows the employee to present his side of the story and a chance for proving his innocence. The company issues written warnings to the employees and holds the complete authority to take decisions in such matter. There is no formal control mechanism available for the employees to appeal against the decision of the officials (Fair Labor Association, 2009). The company has adopted this mechanism so that the employees can embrace discipline in their working and the organization on a whole, thereby ensuring better performance for the company. In addition to this, the company has also allowed its employees to be a part of the disciplinary mechanism in the company. They can use their right of whistleblowing if they find some serious improprieties in the company. Through this mechanism, they can directly report such activities to the management, so that there is no negative impact of such activities on the performance of the company (HM, 2017c). Employment relation and health and safety legislations In order to ensure better performance across all levels of the company, appropriate legislations and rules are drafted and implemented by the company. All the parties and employees associated with the company are required to adhere to these health and safety standards. These rules are related to building safety, fire safety, accidents and first aid, and working environment. The company also ensures that the rights of its employees are also well protected and the laws relating to wages, working hours, benefits, and leaves are duly adhered (HM, 2010). The safety and health of the employees hold a priority for the company as it considers it employees the main asset. The analysis of the companys practices reveals that the company has adopted effective measures for rewarding and motivating its employees. It has developed various training and development programs for all its employees, whether new recruits or the existing employees. These programs lead to the personal development of employees and ensure that the employees are well aware of the company's values, incorporate the learning in their work. The core of the companys success is its employees who give their maximum efforts in improving the overall performance and productivity of the company. Strengths and weaknesses of the company and areas for improvement From the analysis of the companys processes, it has been identified that the strength of the company lies in its rewards system, motivational practices, and development component of its performance management mechanism. It is revealed that the company has adopted effective training programs for the development of its employees which helps them in performing their jobs in a better manner and thereby improving the performance of the overall company. The company has good relations with its employees, trade unions, and employee associations. It even provides them the opportunity for collective bargaining where they can put their views as a group. The safety and health measures also serve as a strength for the company as it ensures a safe and healthy working environment for all its employees. On the contrary, the weaknesses of the company lie in its appraisal and a disciplinary component of the performance management. The company has specified that an individual cannot appeal against the disciplinary action taken by the management in case of any misconduct. The employees should be given fair chance to appeal against such decisions and make their opinions heard. The company can adopt innovative practices to improve these two areas. Recommendations Following are the recommendations for the company to make improvements in its weak areas and improve its overall efficiency so that the organizational mission and objectives can be achieved optimally. The company should also include promotion as a means of motivating and rewarding its employees (Napolitano, 2014). This is due to the fact that there are certain employees who consider non-monetary incentives, such as titles and promotion to be the motivational factors (Reeve, 2014). The company should encourage both social and official meetings for its employees so that there is a free flow of information in the organization and the belongingness need of the employees can be catered effectively (Steeves, 2010). For improving the effectiveness of the company, it should encourage innovation among the employees (Issar Navon, 2016). Any innovative ideas from the employees regarding the issues faced by the company should be shared by the employees through open door policy. During the appraisal process, the company should provide proper feedback to its employees regarding their strengths and weaknesses and the manner in which they can improve their weak areas (Fletcher and Williams, 2013; Attorney, 2007). This would help the company in attaining its mission and goals in a better manner as the employees can work on their weak areas. The company should make more use of technology in its working. It should be used in all the aspects, such as sales, training and development, supply chain, marketing, and information sharing. This would ensure efficiency in different organizational processes (Ross, 2016; Lamb, Hair McDaniel, 2008). References Attorney, A. D. (2007). Performance Appraisal Handbook. Berkeley: Nolo. Fair Labor Association. (2009). Independent external monitoring report. Retrieved October 04, 2017, from https://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1978context=globaldocs Fair Labor Association. (2011). Training, Capacity Building Efforts Benefit Workers at HM Supplier Factory. Retrieved October 04, 2017, from https://www.fairlabor.org/blog/entry/training-capacity-building-efforts-benefit-workers-hm-supplier-factory Fletcher, C. and Williams, R. (2013). Appraisal, Feedback and Development: Making Performance Review Work. London: Routledge. HM Group. (2016). THE HM Group Sustainability Report 2016. Retrieved October 04, 2017, from https://sustainability.hm.com/content/dam/hm/about/documents/en/CSR/2016%20Sustainability%20report/HM_group_SustainabilityReport_2016_FullReport_en.pdf HM Group. (2017). About Us. Retrieved October 04, 2017, from https://about.hm.com/en/about-us.html#cm-menu HM. (2010). Code of Conduct. Retrieved October 04, 2017, from https://www.your-bizbook.com/contentassets/ef398a110094413e961fae025bde0da6/code-of-conduct_en.pdf HM. (2016). HM Annual Report 2016. Retrieved October 04, 2017, from https://about.hm.com/content/dam/hmgroup/groupsite/documents/masterlanguage/Annual%20Report/Annual%20Report%202016.pdf HM. (2017a). Career at HM. Retrieved October 04, 2017, from https://career.hm.com/content/hmcareer/en_gb/workingathm/get-to-know-us/benefits.html HM. (2017b). Our Workplace. Retrieved October 04, 2017, from https://career.hm.com/content/hmcareer/en_gb/workingathm/get-to-know-us/our-workplace.html HM. (2017c). Whistle Blowing. 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