Portfolio Project Organizational Motivation Jessica Taleff BUAD 251.01 13 November 2012 2 Annotated Bibliography Barsky, A. (2008). Understanding the ethical cost of organizational goal-setting: A review and theory development. Journal of Business Ethics, 81(1), 63-81. This academic article discusses the practice of goal-setting in the work environment. Barsky believes that the use of goal-setting to enhance performance may take away from the ethical behavior of the company’s employees. Major scandals, such as Sears and Enron, are used as examples to exhibit this in a real-life scenario. When goals are set too high, employees often act in an unethical manner in order to achieve them. The article later discusses what distinguishes ethical behavior from unethical behavior and what causes an individual to make a particular moral or immoral decision. Freeman, R. E., & Auster, E. R. (2011). Values, authenticity, and responsible leadership. Journal of Business Ethics, 98, 15-23. This academic article explains the change in norms with regard to the role of business in society. According to the article, there has been a shift in values, mostly toward responsibility and sustainability. Information in this article often dives into the philosophical side of decision-making, with an emphasis on authenticity. It is thought that moral decisions cannot be made without authenticity. Imberman, W. (2005). To motivate, communicate. American Drycleaner, 72(4), 60-64. This magazine article discusses the tactics that should be used by businesses in order to get employees motivated and enthusiastic about their work. The key to this is upward and downward communication. The focus is on quality and teamwork over quantity. Effective communication will often lead to increased output, reduced labor costs, customer satisfaction, and safety – all of which are keys to success and forward progress. Kravitz, R.H. (2004). Recognition motivates employees to excel. Health Care Registration: The Newsletter for Health Care Registration Professionals, 13(6), 3-5. This article expresses that the key to success is proper motivation along with genuine recognition and appreciation for the work being done by employees. The primary motivators that lead to success include fun, variety, input, choice, teamwork, encouragement, appreciation, and many more. In addition to the motivators, there are also demotivators. Some of them include unclear expectations, unproductive meetings, constant change, dishonesty, unfairness, and over-control. The end of the article mentions how to assess your motivational environment and make the necessary changes in order to be more successful. Soupata, L. (2005). Engaging employees in company success: The UPS approach to a winning team. Human Resource Management, 44(1), 95-98. 3 According to Lea Soupata, the senior vice president for UPS, good management is “an attitude inspired by the will to do right.” This article discusses UPS and its superior management, values, and corporate goals. Their “Winning Team” strategic imperative is used to attract, develop, and retain a skilled, motivated, and diverse global workforce. Other strategic imperatives include “Value-Added Solutions,” “Customer Focus,” and “Enterprise Excellence.” The monitoring of these imperatives ends up giving them a competitive advantage and keeps them in good standing, ethically. Springer, C.G. (2006). Organizational motivation. PA Times, 29(11), 8. This article discusses ways to keep workers motivated and organizations energized. According to a recent study, “as many as 50 percent of workers admitted that they only put enough effort into their work to hold onto their jobs.” The article states that the organization must first learn what is demotivating employees and figure out how to eliminate the problems. It is important to maintain a focus on the long-run and inspire employees to be self-motivated, rather than being motivated by monetary rewards. Finally, effective communication is crucial in order to achieve organizational motivation. 4 According to Lea Soupata, the senior vice president for UPS, good management is an attitude inspired by the will to do right. It is also caring about the welfare of employees and making them feel like they are the company, rather than just an employee of it. Good management includes proper communication, ethical behavior, and effective motivation, which will lead to organizational success. Poor management often leads to unethical behavior and the downfall of an organization. Communication is key. If done right, employees will be motivated to improve in areas such as customer service, performance, and efficiency. This will lead to profitability. If poor communication is apparent, the organization will usually be inefficient and lack in the areas of customer service and performance, which wastes valuable time and resources. According to Woodruff Imberman’s article in American Drycleaner, “To Motivate, Communicate,” effective upward and downward communication must be used in order to be successful. Downward communication consists of informing employees about the company, including company values, with an emphasis on productivity, customer service, and safety. The macro side of downward communication is sometimes used to address the company as whole, regarding company performance. More frequently used is the micro side, which involves supervisors communicating with a small group of employees about the big picture, how their specific job fits in, and what can be improved to move the organization forward. Feedback on employee performance must be given constantly to be efficient and to keep employees informed. If performance is not recorded daily, the company may be inefficient for an extended period of time, wasting valuable time and resources. Effective downward communication also involves employee recognition for work achievements, such as productivity, customer service, or innovation, as well as personal life 5 events, including birthdays, anniversaries, and new additions to the family. Aside from being a generous act of kindness, this will also boost organizational loyalty and lead to increased performance. Upward communication is also a must. It allows employees to communicate with management about ideas, responses, and critiques. When upper executives and management listen to what employees have to say, the employees tend to work harder, strive for improvement, and be more loyal to the company. Sometimes effective communication is not enough to improve motivation and performance. When this is the case, performance-based goals are often set. According to Adam Barsky’s academic article “Understanding the Ethical Cost of Organizational Goal-Setting” in the Journal of Business Ethics, the use of goal-setting in an organization to enhance performance may take away from the ethical behavior of the company’s employees. Major scandals, such as Sears and Enron, are often used as examples of this in a real-life situation. Sears’ automotive centers in California often overcharged for their services, made unnecessary repairs, and even charged for work that was never done. Sales quotas were set in order to cut payroll costs and increase productivity in the organization, without concern for the customer. Another example, which is also the most known, is the unethical behavior of the Enron Corporation. Upper executives were awarded upwards of $320 million in bonuses for the so-called outstanding financial performance of the organization. These stories show that when goals are set too high, employees often act in an unethical manner in order to achieve them. Sometimes employees that are exposed to performance goal-setting often do not even realize that their behaviors are unethical because they are so focused on achieving the goal. Or they may believe that their unethical action is justified by the success of the individual and/or 6 organization. In addition, when an employee decides that they are making a “business decision” they often fail to apply ethics to their decision-making, and, more often than not, end up making an unethical decision. An example was used describing juvenile delinquents. At a later time, or if the situation was different, they may believe that their action was wrong, but in the moment they see their actions as appropriate for the situation they were in. The companies that make ethical decisions tend to be the ones that have strict values that are carried out throughout the organization. An example of this is the Wal-Mart Corporation, which acts on its core values on a daily basis. Their “everyday low prices” slogan is proof of this, as it shows their emphasis on giving poorer Americans the availability of the same goods and services that wealthier Americans enjoy. On the other hand, a lack of core values or the use of false values tends to lead to unethical decisions, which is evident with Enron. The key to success in an organization is proper motivation along with genuine recognition and appreciation for the work being done by employees. Ellen Auster and R. Edward Freeman’s “Values, Authenticity, and Responsible Leadership,” from the Journal of Business Ethics, and Christine Springer’s “Organizational Motivation,” from the PA Times both agreed with this statement and the articles were quite similar throughout. In order to recognize employees and keep them motivated, managers must understand what motivators are most effective. It is important to keep employees actively engaged in the organizational efforts, while maintaining a fun work environment. Managers must provide the opportunity to take part in various tasks, delegate responsibility, and allow employee input and suggestions. In addition, they must allow employees to lead, work in teams, and set their own goals. Finally, the work environment should present challenges, with an emphasis on encouragement and acknowledgement to help with the achievement of goals. 7 There are also many organizational characteristics that demotivate employees and often bring about their exit from the organization. Unclear or contradictory expectations, poorly designed work, and unproductivity tend to demotivate employees. Other characteristics include constant change, dishonesty in the organization, unfairness, criticism, and over-control. In order to determine what is and is not working in the organization, personal observation, individual interviews, focus groups, and surveys may be used. It is important for management to always evaluate the work environment and make the necessary changes to move the organization forward, with employee satisfaction, recognition, and loyalty at the forefront of decision-making. According to R.H. Kravitz, in Health Care Registration: The Newsletter for Health Care Registration Professionals, organizational motivation and workplace energy are some of the most important aspects of an organization, but they are also some of the most challenging to maintain. According to a recent study, as many as 50 percent of workers admitted that they only put enough effort into their work to maintain their job. In addition, a shocking 84 percent said they could have done better work if they wanted to. These percentages are the product of unmotivated employees. An organization must first learn what is demotivating employees and figure out how to eliminate the problems. It is important to maintain a focus on the long-run and inspire employees to be self-motivated, rather than being motivated by monetary rewards. Effective communication is crucial in order to achieve organizational motivation. Managers must only correct employees when it helps to improve future goals, only give feedback privately, with an emphasis on the solution, not the problem, and recognize employee progress. I learned quite a lot while reading these articles. I never thought of goal-setting as being potentially harmful until I read Barsky’s article “Understanding the Ethical Cost of Organizational Goal-Setting.” Managers and upper executives sometimes set goals too high, 8 which often leads to unethical behavior by employees. I was shocked by the percentages in the Health Care Registration article. When 84 percent of employees say they could have done better work, you know something is wrong. The motivators and demotivators mentioned are very basic and widely known, but managers tend to forget their importance during stressful times. The use of effective communication, ethical behavior, and motivation by management will lead to organizational success in the long-run. The Wal-Mart Corporation is living proof of this statement. On the other hand, poor management often leads to unethical behavior and the downfall of an organization. This was especially true with the corruption of the Enron Corporation, which eventually led to its bankruptcy. With an emphasis on employee satisfaction and recognition, employees will remain motivated and loyal to the organization, bringing about continuous success.