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JOB SATISFACTION LEVELS OF EMPLOYEES OF A MULTINATIONAL ORGANISATION
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MANAGEMENT REPORT JOB SATISFACTION LEVELS OF EMPLOYEES OF A MULTINATIONAL ORGANISATION By Sajied Sayed (21216577) Submitted as part of the requirements for the degree in MASTERS IN BUSINESS ADMINISTRATION in the Faculty of Economics and Management Sciences, University of Pretoria, Pretoria. Study Leader: Professor H E Brand Date: 22/10/2002 TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 6 2 OPSOMMING 11 3 BACKGROUND 16 3.1 INTRODUCTION 16 3.2 AIM 17 4 THEORY 19 4.1 INTRODUCTION 19 4.2 CONTENT THEORIES 20 4.2.1 Maslow’s Hierarchy of needs 20 4.2.2 McClelland’s Theory of Needs 23 4.2.3 Herzberg Factor (Motivator – Hygiene) Theory 24 4.2.4 Theory X and Theory Y 25 4.2.5 ERG Theory 26 4.3 PROCESS THEORIES 28 4.3.1 Vroom’s Expectancy Theory 28 4.3.2 Equity Theory 30 4.3.3 Goal Setting Theory 32 4.3.4 Reinforcement Theory 34 4.4 CONCLUSION 35 5 RESEARCH METHODOLOGY 36 5.1 INTRODUCTION 36 5.2 A DESCRIPTION OF THE METHOD OF STUDY 36 5.3 METHOD OF DATA COLLECTION 36 5.4 RESEARCH INSTRUMENT 37 5.5 CONCLUSION 39 6 INTERPRETATION AND ANALYSIS OF RESULTS 40 6.1 INTRODUCTION 40 6.1.1 Pay 40 6.1.2 Promotion 41 6.1.3 Supervision 42 6.1.4 Fringe Benefits 44 6.1.5 Contingent Rewards 45 6.1.6 Operating Conditions 46 6.1.7 Co-workers 47 6.1.8 Nature of Work 49 6.1.9 Communication 50 6.2 CONCLUSION AND RECOMMENDATIONS 52 7 REFERENCES: 54 8 APPENDIX A 56 LIST OF FIGURES FIGURE 1 - MALSOW'S HIERARCHY MODEL 23 FIGURE 2 - HERZBERG'S MODEL 25 FIGURE 3 - ALDERFER'S HIERARCHY 28 FIGURE 4 - EQUITY THEORY MODEL 31 FIGURE 5: LOCKE' S MODEL OF GOAL SETTING 32 FIGURE 6: PROCESS OF REINFORCEMENT THEORY 35 FIGURE 7- PIE CHART OF PAY SATISFACTION 40 FIGURE 8 - PIE CHART OF PROMOTION SATISFACTION 42 FIGURE 9 - PIE CHART OF SUPERVISION SATISFACTION 43 FIGURE 10 - PIE CHART OF FRINGE BENEFITS SATISFACTION 44 FIGURE 11 - PIE CHART OF CONTINGENCY REWARDS SATISFACTION 45 FIGURE 12 - PIE CHART OF OPERATING CONDITIONS SATISFACTION 46 FIGURE 13 - PIE CHART OF CO-WORKERS SATISFACTION 48 FIGURE 14 - PIE CHART OF NATURE OF WORK SATISFACTION 49 FIGURE 15 - PIE CHART OF COMMUNICATION SATISFACTION 51 FIGURE 16 - PIE CHART OF OVERALL JOB SATISFACTION LEVEL 52 LIST OF TABLES TABLE 1 - SCORE BREAKDOWN FOR NEGATIVELY WORDED ITEMS 38 TABLE 2 – SUB-SCALE BREAKDOWN 39 1 Executive Summary ABC Ltd is the name used for a South African multinational organization that provides short and long distance fixed-line telecommunication services to residential and corporate customers. ABC Ltd is a corporate with its headquarters in Pretoria, South Africa. The government plans to deregulate the fixed-line telecommunication sector in the last quarter of 2002. The Second Network Operator (SNO) has not been finalized as yet. When the license is approved, customers will have a choice which operator they want to use. ABC Ltd ‘s Initial Public Offering (IPO) is also expected soon. This means that ABC Ltd need not only be prepared for competition, but also needs to become an attractive investment opportunity. ABC Ltd has already spent R34 billion on upgrading and expanding the network with the latest technology. It has also streamlined the structure of the company and designed new products and services for the market segments. With the technology base already in place and new products and services being developed, the success of the company now lies in its employees to offer world class service, so that the customers choose ABC Ltd as their choice of operator. It is therefore very important for the organisation to have highly motivated and satisfied employees. This report investigates the level of job satisfaction of employees within ABC Ltd SA Limited. An employee’s assessment of how satisfied or dissatisfied he is with his job is a complex summation of discrete job variables. Several of studies have examined the relationship between job satisfaction and other organisational variables. One of those variables is motivation. For the purpose of this study, motivation is used as the core variable determining job satisfaction. Substantive research has been done in the field of work motivation and satisfaction and many psychologists have tried to explain it in terms of certain needs, interests and values (Joubert, 2000). These theories may be divided into two groups: a. Content (need-based) Theories b. Process Theories Content or need-based theories emphasize specific human needs or factors within a person that energize, direct and/or stop behaviour. The theory explains motivation as a phenomenon occurring primarily intrinsically or within an individual. Process theories take a more dynamic view of motivation. These theories focus on initial energy of behaviour through to behaviour alternatives and then to actual efforts by the individual. The strategy to motivate employees depends on which motivation theories are used as bases. There are an infinite number of possible strategies that could be used, however, the key to motivating employees is to know what motivates each employee and then to design a motivation program based on those criteria. A field survey was done by means of a questionnaire consisting of questions assessing how employees feel. A field survey was chosen because it provides an efficient way to find out how people feel about issues. It is also the most cost effective way of obtaining the required information. The survey used was based on a questionnaire (Appendix A) by a psychology student, Paul E. Spector from the University of South Florida (Spector, 1999). The following factors where included in the questionnaire: a. Pay b. Promotion c. Supervision d. Fringe Benefits e. Contingent Rewards f. Operating conditions g. Co-workers h. Nature of Work i. Communication The study was limited to a sample group consisting of 45 employees. This means that conclusions made from results obtained from the survey will not necessary reflect the actual level of job satisfaction within the 40,000-employee organization. In addition to this, the answers selected by the sample group could be influenced by the moods of the employees at the time of completing the questionnaire. The results obtained were first analysed separately in each of the motivation dimensions researched. Thereafter conclusions and recommendations were made for each dimension. A summation analysis was then done and conclusions and recommendations were made on the overall level of job satisfaction within the organization. The results indicate that: - a. 70% of the employees are moderately satisfied with the pay they are receiving, 15% are very satisfied and 15% are unsatisfied. b. None of the employees are very satisfied with his/her chances of promotion. 46% of the employees are actually unsatisfied with the chance of them receiving a promotion and 54% are moderately satisfied with their chances of promotion. c. The supervision in the organisation seems to be very good, because a large majority (54%) of the employees are very satisfied with their supervisors, while 31% are moderately satisfied and only 15% are unsatisfied with their supervisors. d. Only 8% of the employees are unsatisfied with the fringe benefits they receive from the company, compare to 69% that are moderately satisfied and 23% that are very satisfied with their fringe benefits. e. 77% of the employees are only moderately satisfied with their contingent rewards. The rest (23%) are unsatisfied and not a single employee is very satisfied with his/her contingent rewards. f. 54% of the employees are moderately satisfied with their operating conditions, 31% are very satisfied and 15% are unsatisfied with their operating conditions. g. 77% of the employees are very satisfied with their co-workers, the remaining 23% being moderately satisfied with their co-workers and no one was unsatisfied. h. None of the employees were unhappy about the nature of the work they work were doing. Almost half the employees (46%) were very satisfied with the type of work they were doing while 54% were moderately satisfied. i. Only 15% of the employees are very satisfied with the communication within the organisation, while 54% are only moderately satisfied and 31% are unsatisfied with the communication within the organisation. Based on the summation score, all the employees scored between 72 and 144. This means that all the employees are moderately satisfied with their jobs. This summation score is probably not a good indication of the general level of job satisfaction in the organisation, due to the fact that job satisfaction is a multi dimensional concept. An employee might be satisfied with one or more aspects of the job and dissatisfied with other aspects of the job. Unfortunately, there is no right way to manage people, because each employee has different needs, backgrounds and expectations. A good place to start is by creating an environment that promotes job satisfaction. However, an organisation cannot satisfy all its employees, because practices that satisfy one employee might cause another to resign. After the perfect environment has been created, it was recommended that the management in ABC LTD identify the qualities that they want in their “ideal” employees, and then to structure its employee retention and recruitment strategy around it. 2 Opsomming ABC Beperk is ‘n multi-nasionale organisasie wat kort- en langafstand vastelyn kommunikasiedienste aan residensiële en korporatiewe kliënte lewer. ABC Beperk is ‘n korporasie met sy hoofkantoor in Pretoria, Suid-Afrika. Die regering beplan om die vastelyn telekommunikasiesektor te privatiseer gedurende die laaste drie maande van 2002. Die Tweede Netwerkoperateur (TNO) is nog nie gefinaliseer nie. Wanneer die lisensie goedgekeur is, sal kliënte kan kies watter operateur hulle wil gebruik. ABC se Aanvanklike Openbare Aanbod (AOA) word ook binnekort verwag. Dit beteken dat ABC Beperk nie net voorbereid moet wees vir kompetisie nie, maar dit moet nou ook ‘n aantreklik beleggingsgeleentheid word. ABC Beperk het reeds R34 biljoen spandeer aan die opgradering en uitbreiding van die netwerk met die jongste tegnologie. Die organisasie het ook sy struktuur verander en het nuwe produkte en dienste vir die mark ontwikkel. Met die tegnologiese basis reeds gevestig en nuwe produkte en dienste wat ontwikkel word, hang die sukses van die organisasie af van die werknemers wat ‘n wêreldklas diens moet lewer aan ABC Beperk se kliënte. Dit is daarom belangrik dat die organisasie hoogs gemotiveerde en tevrede werknemers het. Hierdie verslag ondersoek die vlak van werkstevredenheid van ABC Beperk se werknemers. Die meting van ‘n werknemer se werkstevredenheid, is ‘n komplekse samestelling van verskeie werksveranderlikes. Daar is al baie studies gedoen oor die verhouding tussen werkstevredenheid en ander organisasieveranderlikes. Een van hierdie veranderlikes, is motivering. Vir die doeleindes van hierdie studie, word motivering gebruik as kernveranderlike wat werkstevredenheid bepaal. Heelwat navorsing is gedoen in die veld van werksmotivering en –tevredenheid en verskeie teoretici het dit probeer verduidelik deur middel van sekere behoeftes, belangstellings en waardes (Joubert, 2000). Hierdie teorieë kan in twee groepe verdeel word: a. Inhoudteorieë (behoefte-gerig). b. Prosesteorieë. Inhoud- of behoeftegerigte teorieë beklemtoon die menslike behoeftes of faktore in ‘n persoon wat hom dryf en/of gedrag laat stop. Hierdie teorieë sien motivering as ‘n fenomeen wat primêr binne ‘n individu gevind word. Prosesteorieë het ‘n meer dinamiese siening van motivering. Hierdie teorieë fokus op die aanvanklike energie van gedrag tot gedragsalternatiewe tot die uiteindelike aksies van die individu. Die strategie om werknemers te motiveer hang af van die motiveringsteorie wat as basis gebruik word. Daar is ‘n oneindige aantal moontlike strategieë wat aangewend kan word. Die sleutel tot die motivering van werknemers is egter om te weet wat elke werknemer motiveer en dan om ‘n motiveringsprogram te ontwerp wat op daardie kriteria gebaseer is. ‘n Opname is gedoen deur gebruik te maak van ‘n vraelys om te bepaal hoe die werknemers voel. Hierdie opnamemetode is gekies omdat dit die mees doeltreffende manier is om te bepaal hoe mense oor ‘n saak voel. Dit is ook die mees koste-effektiewe manier. Die opname is gebaseer op ‘n vraelys (Addendum A), opgestel deur ‘n sielkundestudent, Paul E. Spector van die Universiteit van Suid-Florida (Spector, 1999). Die volgende faktore is in die vraelys ingesluit: a. Salaris b. Bevordering c. Toesighouding d. Byvoordele e. Voorwaardelike vergoeding f. Werksomstandighede g. Kollega’s h. Aard van werk i. Kommunikasie Die studie is beperk tot ‘n steekproefgroep van 45 werknemers. Dit impliseer dat die resultate van die opname nie noodwendig die vlak van werkstevredenheid van die 40 000-werknemer organisasie weerspieël nie. Daarby kon die antwoorde van die steekproefgroep beinvloed gewees het deur hoe hulle gevoel het op die spesifieke tydstip toe die vraelys ingevul is. Die resultate is eers apart ontleed in elk van die motiveringsdimensies wat ondersoek is. Daarna is gevolgtrekkings en aanbevelings gemaak vir elk van die dimensies. ‘n Opsommingsontleding is toe gedoen en gevolgtrekkings en aanbevelings is gemaak op die oorhoofse vlak van werkstevredenheid binne die organisasie. Die resultate dui die volgende aan: a. 70% van die werknemers is matig tevrede met die salaris wat hulle ontvang, 15% is baie tevrede en 15% is ontevrede. b. Nie een van die werknemers is baie tevrede met sy/haar kanse op bevordering nie. 47% van die werknemers is ontevrede met die kanse dat hulle bevorder sal word and 54% is matig tevrede met hulle kanse op bevordering. c. Die toesighouding in die organisasie blyk baie goed te wees aangesien die grootste meerderheid (54%) baie tevrede met die toesighouding is, terwyl 31% matig tevrede is en slegs 15% is ontevrede met hulle toesighouers. d. Slegs 8% van die werknemers is ontevrede met hulle byvoordele wat hulle van die maatskappy ontvang en 23% is baie tevrede met hulle byvoordele. e. 77% van die werknemers is matig tevrede met hulle voorwaardelike vergoeding. Die res (23%) is ontevrede en nie ‘n enkele werknemer is baie tevrede met sy/haar voorwaardelike vergoeding nie. f. 54% van die werknemers is matig tevrede met hulle werksomstandighede, 31% is baie tevrede en 15% is ontevrede met hulle werksomstandighede. g. 77% is baie tevrede met hulle kollega’s, die res (23%) is matig tevrede met die mense waarmee hulle saamwerk en nie een was ontevrede nie. h. Nie een van die werknemers is ongelukkig oor die aard van die werk wat hulle verrig nie. Byna die helfte van die werknemers (46%) is baie gelukkig met die tipe werk en 54% was matig gelukkig. i. Slegs 15% van die werknemers is baie gelukkig met die kommunikasie binne die organisasie, terwyl 54% slegs matig gelukkig is en 31% ongelukkig is met die kommunikasie in die organisasie. Gebaseer op die opsommende syfers, het al die werknemers tussen 72 en 144 punte behaal. Dit beteken dat alle werknemers matig gelukkig is met hulle werk. Die opsommende meting is waarskynlik nie ‘n goeie aanduiding van die vlak van werkstevredenheid oor die hele organisasie nie aangesien werkstevredenheid ‘n multi-dimensionele konsep is. ‘n Wernemer mag byvoorbeeld met een of meer aspekte van sy/haar werk tevrede wees en ontevrede wees met ander aspekte. Ongelukkig is daar nie ‘n enkele korrekte manier om mense te bestuur nie aangesien alle werknemers verskillende behoeftes, agtergrond en verwagtings het. ‘n Goeie omgewing is egter ‘n goeie beginpunt om werkstevredenheid te bevorder. ‘n Organisasie kan nie alle werknemers tevrede hou nie aangesien praktyke wat een werknemer tevrede maak, ‘n ander rede gee om te bedank. Nadat die perfekte omgewing binne ABC Beperk geskep is, was die aanbeveling dat bestuur die kenmerke wat hulle in die ideale werknemer wil hê, identifiseer en dan hulle werknemerbehoudings- en werwingsstrategie rondom sulke werknemers struktureer. 3 Background 3.1 Introduction Communication is an extremely important industry in any country. In South Africa, the telecommunication sector comprises Internet Service Providers (ISPs), Value Added Networks (VANs), the cellular and a single fixed-line service provider (called ABC Ltd in this report). ABC Ltd is a corporate with its head quarters in Pretoria, South Africa. ABC Ltd provides short and long distance fixed-line telecommunication services to residential and corporate customers. The organisation has numerous regional offices within South Africa. In 1999, the staff complement of ABC Ltd was 61 237. ABC Ltd has reduced its staff complement by 21 547, or about a third, to 39 690 in 3 years by means of severance packages, retrenchments and out-sourcing of non-core business. It is anticipated that the organisation will reduce staff numbers even more until the organisation has approximately 25000 - 30000 employees. In South Africa, the governmental department of Posts and Telecommunications operated telecommunication services until 1991. In October 1991, postal operations were separated from telecommunications, with telecommunications becoming the business of ABC Ltd. In this era, ABC Ltd was a private company with a sole shareholding consisting of the South African government. In March 1997, the South African government decided to sell off part of ABC Ltd. A consortium formed by two international companies won the bid for a 30% stake in ABC Ltd. Government still had a 67% shareholding while a black empowerment organisation has a 3% shareholding in ABC Ltd. ABC Ltd was authorized to keep a monopoly on fixed-line services for at least five years from 1997. In May 1998, ABC Ltd joined the World Partners Association, a premier alliance of carriers offering global communication services to multi-national corporations worldwide. The government plans to deregulate the fixed-line telecommunication sector in the last quarter of 2002. This means that government will be offering a license to a Second Network Operator (SNO) giving customers a choice on which operator it wants to use. Added to this, ABC Ltd ‘s Initial Public Offering (IPO) is expected soon. This means that ABC Ltd need not only prepare itself for competition, but also needs to become an attractive investment opportunity. ABC Ltd has already spent R34 billion on upgrading and expanding the network with the latest technology. It has also streamlined the structure of the company, and designed new products and services for the market segments. The organisation has already come a long way in transforming the company into a world-class organisation. The culture it is trying to develop is much more progressed than the old governmental culture. With the technology base already in place and new products and services being developed, the success of the company now lies in its employees, because when telecom companies are in competition with one another, all use similar technologies and can have similar products, but the aspect that makes a difference between them, is customer service (Collins 2001:14). This lies solely in the hands of its satisfied or dissatisfied employees to offer world-class service, so that the customers choose ABC Ltd as their choice of operator. It is therefore very important for the organisation to have highly motivated and satisfied employees. 3.2 Aim The aim of this report is to describe the level of job satisfaction of the employees in ABC Ltd and to recommend ways that management can create a workforce that is highly motivated and that enjoys its work. The results of this research will identify the aspects that need attention in ABC Ltd, as well as possible solutions. 4 Theory 4.1 Introduction Job satisfaction is the degree to which an individual feels positively or negatively about his job. In broad terms job satisfaction may be defined as an individual’s general attitude towards his job (Hodson, 1991). An individual’s job is more than just the activities of shifting papers, serving customers or driving a bakkie or truck around (Robbins, 1998:151). Jobs require interaction and mingling with co-workers and bosses, obeying rules and policies of the organization, meeting performance standards and living with working conditions that are often not ideal or suitable to the individuals nature. Therefore an employee’s assessment of how satisfied or dissatisfied he is with his job is a complex summation of discrete job variables. Thousands of studies have examined the relationship between job satisfaction and other organisational variables. One of those variables is motivation. For the purpose of this study, motivation is used as the core variable determining job satisfaction. Motivation is defined in many different ways. Motivation is the forces acting on or within a person that causes that person to behave in a specific, goal directed manner (Steers, 1983). Motivation is the psychological process that gives behaviour purpose and direction (Kreitner, 1995). Motivation is a predisposition to behave in a purposive manner to achieve specific, unmet needs (Buford, Bedeian, Lindner 1995). Motivation is an internal drive to satisfy an unsatisfied need (Higgins, 1994). Motivation is not a personal trait as commonly believed, but it is rather the result of the interaction of the individual and the situation. Motivation varies between individuals and within individuals at different times. Studies have revealed a positive relationship between motivation and job satisfaction (Joubert, 2000). This means that managers can potentially enhance employee’s job satisfaction through various attempts to increase motivation. Several research studies have been done in the field of work motivation and satisfaction and many psychologists have tried to explain it in terms of certain needs, interests and values (Joubert, 2000). These theories may be divided into two groups: a. Content (need-based) Theories b. Process Theories 4.2 Content Theories Content or need-based theories emphasize specific human needs or factors within a person that energize, direct and/or stop behaviour. The theory explains motivation as a phenomenon primarily occurring intrinsically or within an individual. 4.2.1 Maslow’s Hierarchy of needs Abraham Maslow was a humanistic psychologist. He believed that humans strive for an upper level of capabilities and they seek the frontiers of creativity, the highest reaches of consciousness and wisdom. This has been labelled "fully functioning person", "healthy personality", or as Maslow calls this level, "self-actualising person" (Maslow, 1968). Maslow has set up a hierarchy of five levels of basic needs. Beyond these needs, higher levels of needs exist. These include needs for understanding, aesthetic appreciation and purely spiritual needs. In the levels of the five basic needs, the person does not feel the second need until the demands of the first have been satisfied, nor the third until the second has been satisfied, and so on. Maslow's basic needs are as follows: 4.2.1.1 Physiological Needs These are biological needs. They consist of needs for oxygen, food, water and a relatively constant body temperature. They are the strongest needs, because if a person were deprived of all needs, the physiological ones would come first in the person's search for satisfaction. 4.2.1.2 Safety Needs When all physiological needs are satisfied and are no longer controlling thoughts and behaviours, the needs for security can become active. Adults have little awareness of their security needs except in times of emergency or periods of disorganization in the social structure (such as widespread rioting). Children often display the signs of insecurity and the need to be safe. 4.2.1.3 Needs of Love and Affection When the needs for safety and for physiological well-being are satisfied, the next class of needs for love and affection can emerge. Maslow states that people seek to overcome feelings of loneliness and alienation. This involves both giving and receiving love, affection and the sense of belonging. 4.2.1.4 Needs for Esteem When the first three classes of needs are satisfied, the needs for esteem can become dominant. These involve needs for both self-esteem and for the esteem a person gets from others. Humans have a need for a stable, firmly based, high level of self-respect, and respect from others. When these needs are satisfied, the person feels self-confident and valuable as a person in the world. When these needs are frustrated, the person feels inferior, weak, helpless and worthless. 4.2.1.5 Needs for Self-Actualisation When all of the foregoing needs are satisfied, only then are the needs for self-actualisation activated. Maslow describes self-actualisation as a person's need to be and do that which the person was "born to do." Example, A musician must make music, an artist must paint, and a poet must write. These needs make themselves felt in signs of restlessness. The person feels on edge, tense, lacking something. If a person is hungry, unsafe, not loved or accepted, or lacking self-esteem, it is very easy to know what the person is restless about. It is not always clear what a person wants when there is a need for self-actualisation. The hierarchic theory is often represented as a pyramid as shown in Figure 1, with the larger, lower levels representing the lower needs and the upper point representing the need for self-actualisation. Maslow believes that the only reason that people would not move well in direction of self-actualisation is because of hindrances placed in their way by society e.g. lack of education. Figure 1 - Malsow's Hierarchy Model 4.2.2 McClelland’s Theory of Needs David McClelland (Braden, 2000 a: 1) proposed that an individual's specific needs are acquired over time and are shaped by life experiences. Most of these needs can be classed as either a need for achievement, affiliation or power. A person's motivation and effectiveness in certain job functions are influenced by these three needs. McClelland's theory is sometimes referred to as the three-need theory or as the learned needs theory (Braden, 2000 a: 1). 4.2.2.1 Need for Achievement People with a high need for achievement seek to excel and tend to avoid both low-risk and high-risk situations. Achievers avoid low-risk situations, because the easily attained success is not a genuine achievement. Employees with a high need for achievement prefer work that has a moderate probability of success, ideally a 50% chance. Achievers need regular feedback in order to monitor the progress of their achievements. They prefer either to work alone or with other high achievers (Braden, 2000 a: 2). 4.2.2.2 Need for Affiliation Those with a high need for affiliation need harmonious relationships with other people and need to feel accepted by other people. They tend to conform to the norms of their work group. Employees with a high need for affiliation prefer work that provides significant personal interaction. They perform well in customer service and client interaction situations (Braden, 2000 a: 2). 4.2.2.3 Need for Power The need for power can be one of two types: - personal and institutional. Those who need personal power want to direct others and this need is often perceived as undesirable. People who need institutional power (also known as social power) want to organize the efforts of others to further the goals of the organization. Managers with a high need for institutional power tend to be more effective than those with a high need for personal power (Braden, 2000 a: 3). 4.2.3 Herzberg Factor (Motivator – Hygiene) Theory Herzberg (Zillmann, 2000) found separate and distinct clusters of factors associated with job satisfaction and dissatisfaction. One set of factors (motivators) could make people feel good about their jobs while an entirely different set of things (hygiene factors) can make them dissatisfied. The motivators are factors such as opportunity for recognition, advancement, achievement and responsibility, as shown in Figure 2. These motivating factors are related to the work itself and can increase employee performance. In addition to this, Herzberg also claims that "hygiene factors such as status, working conditions, company policy and administration, money, supervision, interpersonal relations, and security do not motivate individuals, but rather prevent job dissatisfaction" (Zillmann, 2000). Figure 2 - Herzberg's Model Herzberg believes that the opposite of job satisfaction is not job dissatisfaction, but rather no job satisfaction, and similarly, the opposite of job dissatisfaction is not job satisfaction, but no dissatisfaction (Herzberg 1968). 4.2.4 Theory X and Theory Y Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book: 'The human side of enterprise'. Theory X and theory Y are still referred to commonly in the field of management and motivation, and whilst more recent studies have questioned the rigidity of the model, Mcgregor's X-Y theory remains a valid basic principle from which to develop positive management style and techniques. Mcgregor maintained that there are two fundamental approaches to managing people. Both theories are discussed in more detail below. 4.2.4.1 Theory X Theory X is based on an authoritarian management style. Mcgregor believed that the average employee dislikes work and will avoid it when he/she can. Therefore most people must be forced with the threat of punishment to work towards organisational objectives. He also believed that the average employee prefers to be directed to avoid responsibility, is relatively unambitious and wants security above all else. 4.2.4.2 Theory Y Theory Y is based on a participative management style where effort in work is as natural as work and play. People will apply self-control and self-direction in the pursuit of organisational objectives, without external control or the threat of punishment. Commitment to objectives is a function of rewards associated with their achievement. People usually accept and often seek responsibility. The capacity to use a high degree of imagination, ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population. In industry the intellectual potential of the average person is only partly utilised. 4.2.5 ERG Theory Alderfer (Robbins, 1998) has reworked Maslow’s need hierarchy. As mentioned previously, Maslow believed that the lower-order needs have to satisfied before an individual will be motivated to move on to behaviours that satisfy higher-order needs. Aldefer does not share that belief in the hierarchy. He believe that the need for socialization would be more important to most people than the need for growth (Braden, 2000). Alderfer addressed this issue by reducing the number of levels to three as shown in Figure 3.
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