Leadership and Organizational Behavior 1.
IntroductionDean and Mary Tjosvold (1995) Psychology for Leaders: Using Motivation, Conflict, and Power to Manage More Effectively reveal that managements of a company are responsible of setting policies/regulations, make decisions, solve problems; while employees perform their assigned tasks.However, in practice, employees cannot reach their full potential if they do not have the empowerment from the company’s managements. The situation suggests those companies are responsible to create a healthy working environment. In case of compensation, for instances, employees who feel they are underpaid will also feel they are undervalued and are more open to potential offers from outside firms.Compensation has a significant impact on how employees feel about their jobs, so ensure that it remains attractive over time and keep up with the market. Offering fair and competitive compensation will help us reduce turnover and the costs associated with it.
However, not all CEOs or any top managements’ position have the quality of being leaders. Being a good leader takes more than just the capability to help the companies in achieving excellent financial performance.Concerning the issue, this paper will discuss about the leadership issue in a company that I used to work for.
The company is Shoe Mania Inc, a well-known store in New York City that offers variety kinds of brands and attractive discount. The main discussion will be on the creation of proposal on rewards and suggestions on motivating employees. This paper will also cover how the lack of reward affects the productivity of the company, and what can be done in order to improve them. Lack of leadership in Shoe Mania Inc. is critical since the company seems incapable to deal with motivation that causes the rising number of good employees who leave the job.
2. Company Background: Shoe Mania IncShoe Mania Inc is a well known and the biggest shoe store in New York City and Manhattan. The store has many outlets in the Big Apple, each offering customers with variety of shoes coming from a well-known brands including Adidas, Dr. Martens, Kenneth Cole, Rockport, Caterpillar, Guess, and Timberland, to name a few. Figure 1 One of Shoe Mania Stores in NYCSource: http://www.shoemania.
com/ The company’s popularity as the comprehensive shoe store is also the result of their presence in key locations across the New York City. The company exists in four major locations: New York City, Grand Central Station, Union Square Location, and Empire State Building. The company has also their online presence in their official website at www.shoemania.
com as shown in following figure. By browsing the official website, customers are able to window-shopping, select, and then buy their desired shoes products. Figure 2 Shoe Mania Official WebsiteSource: www.
shoemania.com 3. Leadership at Shoe Mania IncThe case of leadership at Shoe Mania Inc happens mainly at Sales department. This condition easily influences how employees work for the company.
The reason is obvious since sales department and the staffs are individuals that provide the company with money through increasing the number of sales. The situation is not a simple task, considering that there are many competitors, serving the same markets with Shoe Mania Inc in New York City. The situation suggests that the company needs to develop rewards system in order to motivate employees of Shoe Mania Inc especially those in Sales department.Currently, the rewards system does not exist in the Shoe Mania, a company where I used to work for some time. The situation become underlying reasons that encourage the employees to move to another company that offer better salary and threat employees with better remuneration system. 4.
Motivation Improvement at Shoe Mania Inc4.1 Style of LeadershipCompanies as they mature over years will encounter situation in which their employees or workers experience decreasing motivation that leads to declining job performances, minimum contribution, and useless efforts.Therefore, managements at every level whether president, general managers or plant managers, should make a commitment to their employees to provide training, well-being on the job and, of course, their livelihood. In many cases, often, managements fail to recognize their employees’ needs and later found them when a conflict and lower employees’ motivation already exist.
Finding out what motivates employees turn out to be easier said than done. When dealing with the word ‘motivation’, most management thinks of its relation to wages and bonuses. It turns out that money is one determinants of employees’ motivation. According to a research, money turns out to motivate people for a very short window of time.Concerning the decreasing motivation in my former department (Sales department), therefore, I suggest Shoe Mania Inc to change their style of leadership into appropriate one. Below is description of several styles of leadership and their effectiveness. Table 1 Styles of LeadershipSource: Motivation and Leadership Styles.
Retrieved December 17, 2007 from http://www.motivation-tools.com/workplace/leadership_styles.htm4.2 Factors of Employees’ MotivationCompensation has a significant effect on how employees feel about their jobs, so ensure that it remains attractive over time and keep up with the market. Offering fair and competitive compensation will help us reduce turnover and the costs associated with it.Other factors that influence employees’ motivation include career development, appreciation, rewards, recognition, and good communication. Often, managements overlook the role of their employees by excluding them in decision-making process.
In fact, employees feel valued when they are included in decisions and made to feel like an integral part of an organization. For this reason, some management has also involved their employees in various profit sharing programs, a different means to achieve the same end.Appreciation is other factor that influences employees’ motivation.
It works when employees do something well, the worst thing management can do is to simply assume they realize they have done so. A few simple words of praise can go a long way. However, keep in minds, that there is no single panacea for dealing with different people. Hence, what motivates one, may not work so well with another.
The good thing is once you motivate yourself, you may then find it easier to motivate others. 4.3 Performance, ability and motivationIn Motivation to Learn, Huitt (2001) defines motivation as an “internal state or condition (a need, desire, or want), which serves to activate or energize behavior and give it direction.” In detail, the motivation, therefore, composes of three acts as following:a) Internal state or condition, which encourage the activation of behavior and gives it directionb) Desire or want, which encourages directs goal-oriented behaviorc) Influence of needs and desires on the intensity and direction of behavior In many scholarly researches, it is found that to motivate the employees, managements need certain level of understanding toward human nature itself.
Human nature has simple basic needs but they evolve to be very complicated subject relating to modern life. The Hierarchy of Needs theory by Maslow is one of the worldwide theory describing human needs (“Employee Motivation”, 2005).The relationship between employee performance, ability and motivation can be described with the following equation: Job performance = f (ability) (motivation) Incorporating the Hierarchy of Needs theory by Abraham Maslow, experts produced a guideline, which consists of seven strategies encouraging the creation of employee motivation.a) Positive reinforcement (high expectations)b) Effective discipline and punishmentc) Treating people fairlyd) Satisfying employees needse) Setting work related goalsf) Restructuring Jobsg) Base rewards on job performance(“Employee Motivation”, 2005) 4.
4 Proposal of Motivation Improvement4.4.1 Training ProgramsRelating to the sales program that Shoe Mania Inc. performs that heavily relies on the capability of sales person to persuade to customers to buy the products at Shoe Mania Inc, it is essential to develop training program that empower the employees of Shoe Mania to have better skills in closing sales. The major issue in the skills is about the capability to maintain good relationship with people.In order to perform training program, first the company must formulate suitable technique and procedures of handling jobs to understandable principles. Then in order to create specialized teams for specialized jobs, the formula should be detailed to meet each job scenarios. The list might be long, but to achieve proper delegation, the step is necessary.
After making sure that all the important knowledge has been elaborated in the formula, the next step is to inherit the formula to someone he trust as the future trainer/trainers. These trainers must be Shoe Mania Inc main attention for a little while, to ensure that the delegation process runs smoothly.Therefore, the company should conduct training programs that address knowledge and skills, which are relevant for task accomplishment. Furthermore, sending individuals into specific jobs such as traineeships and mentoring programs will give the individuals experiences that are beneficial on the individuals’ job performance. 4.4.
2 Performance Related Pay (PRP)By definition, performance is the way an individual, a group, or an organization conducts or accomplishes critical functions or processes. In other words, performance explains the situation to which an individual or an organization conduct a task according to specific criteria, standards or guidelines or achieves results in compliance with predetermined goals or plans.Considering the situation, then we witness that performance is the result of a multi-dimensional aspects.
There are at least three main contributors to performance variability: situational factors, task characteristics, and individual differences.It is common to encounter that individual performance is not stable over time. The variability in an individual’s performance reflects two conditions: learning processes and other long-term changes and temporary changes in performance. The changes in individual performance exist due to learning process. According to one study, an individual’s performance at initial stage usually increases with increasing time spent in a specific job. The situation further underlies the notion that the differences in performance among individuals are the results of varieties in the individuals’ abilities, personality and/or motivation.
Under such circumstances, as the consultant for Shoe Mania Inc, I will suggest that in order to ensure high individual performance, the company (Shoe Mania Inc) should perform performance related pay to encourage sales person to record incredible volume of sales. The suggested form of compensation is usually by giving a certain percentage of the value of the new businesses for the person responsible for bringing in the new businesses. For instances, every sales person would get 5% of the total transaction value. 5.
ConclusionMotivation is the problem for any companies dealing with both profit or non-profit. The significance of motivation is obvious since it may directly affect the company financial performance like reduced sales and therefore profits, increase number of turnover, and rising costs of employees retention.Concerning the issue, this paper has elaborated the leadership issue in a company that I used to work for. The company is Shoe Mania Inc, a well-known store in New York City that offers variety kinds of brands and attractive discount. The main issues that this paper takes are the proposals on rewards and suggestions on motivating employees.Reference: Accel Team. (2005).
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