Herzberg’s Two-Factor Theory
According to Guedes et al., motivation plays a pivotal role in attracting employees, enhancing productivity, retaining high-performing employees, and improving overall organisational performance. The motivation level in the team can positively impact organisational performance (Guedes et al. 2021). In order to accomplish organisational objectives, the leader of the firm needs to satisfy the workforce and motivate them so that they provide extra effort and time to accomplish individual and shared objectives. In this part, two motivational theories, Herzberg’s two-factor theory and Maslow’s hierarchy of needs, will be analysed. The strengths and weaknesses of the two motivational theories will be highlighted.
Herzberg’s two-factor theory: In 1959, Frederick Herzberg coined the motivator-hygiene theory. This theory highlights that the outcome of some factors is satisfaction while other job factors avert job dissatisfaction (Kotni and Karumuri 2018). In order to influence motivation, the leader needs to adjust two factors: motivators and hygiene factors. Motivators are useful to encourage the employees to provide extra effort and time to accomplish individual and shared objectives. There are several motivating factors: accomplishment, recognition, growth opportunities, advancement, and the work itself (Thant and Chang 2021). The absence of hygiene factors can demotivate the employees. Various hygiene factors include monitoring, relationships, work settings, remuneration, status, company policies and security. In a business entity, that might be four states: high hygiene and high motivation, high hygiene and low motivation, low hygiene and high motivation, and low hygiene and low motivation.
- Strengths: In this part,the strengths of Herzberg’s two-factor motivation theory will be highlighted. This motivation theory prioritises motivation coming from within the employees themselves rather than emphasising external attributes (De Vito et al. 2018). By using this theoretical framework, the management of a business entity can focus on the problems of employees. This theory outlines money as secondary because other attributes such as recognition, the relationship between the employer and employees, and growth opportunities are more motivating for the employees.
- Weaknesses:For the weakness of this theoretical framework, it can be said that Herzberg’s two-factor motivation theory overlooks situational variables. Job satisfaction is subjective. Different people have different meanings regarding job satisfaction (Lamb and Ogle 2019). Job satisfaction and job productivity are not directly related. The reliability of Herzberg’s two-factor motivation theory is uncertain as the analysis has to be made by rating providers. The rating providers might indulge the findings by analysing the same response differently. In this theory, no comprehensive measure of job satisfaction was utilised.
Maslow’s hierarchy of needs: This model outlines five levels of human needs that allow an individual to feel fulfilled. In order to motivate the workforce, the management of a business entity needs to fulfil these five levels of human needs. Five levels of this hierarchy model, physiological, safety, love and belonging, esteem, and self-actualisation, emphasise specific needs that allow an individual to feel fulfilled (Fallatah and Syed 2018). The employee’s physiological needs prioritise the employees’ basic needs, such as breaks for the meal, getting clean drinking water, comfortable and healthy working environment. Safety needs, the second need of the hierarchy model, emphasise safety in the workplace and the safety of loved ones. Love and belonging needs, the third needs of the hierarchy model, emphasise the sense of belonging (Stewart, Nodoushani and Stumpf 2018). In order to fulfil this need, the authority needs to organise social activities and create more opportunities for relationship-building outside of the workplace. Esteem need is the fourth level in the hierarchy model. The esteem of the employee directly impacts the performance. It is vital that the employee receive growth opportunities, appreciation, and recognition. Fulfilment of this need will enhance the confidence of the employee in himself. Self-actualisation is the fifth and highest level of the hierarchy model. In this stage, the employee will realise his potential. It will motivate the employee to deliver his best performance and pursue his career.
- Strengths: In this part, the strengths of Maslow’s hierarchy of needs will be highlighted. This motivational framework is very simple to understand. For the strength of this framework, it can be said that even the laymen can understand this framework and relate to this framework and go through one or other stage of the needs pyramid. This framework takes into account human nature. This framework is relevant in almost all fields of life.
- Weaknesses: This framework fails to take account of cultural and social disparities between individuals. In order to motivate the subordinate employees, the leader needs to understand the motivator of the employee. Not all employees think in the same way. That means they might have different motivators. Another weakness of this motivational framework is that measuring satisfaction is difficult.
Personal perspective: For my personal motivation, the most suitable motivational theory would be Maslow’s hierarchy of needs framework. Utilising this motivational framework will allow me to fill more fulfilled, which in turn encourages motivation and improve my performance. Maslow’s hierarchy of needs is pertinent in almost all fields of life. This framework accounts for both inter-personal and intra-personal variations in human behaviour. In order to improve my performance, this motivational framework will be useful. It might be challenging for me to use Herzberg’s two-factor theory. The reliability of this theory is uncertain. This theoretical framework overlooks situational variables. These are why it might be challenging for me to motivate myself for better performance and accomplish my individual goal by using Herzberg’s two-factor framework.
Maslow’s Hierarchy of Needs
The advent of technology, rapid industrialisation, and globalisation has introduced several complexities in the global business environment. Contemporary firms are experiencing stiff competition from their counterparts. The significance of effective and appropriate leadership has increased drastically. According to Udueze, the leader ensures that the workforce is motivated and committed to organisational success (Udueze 2021). By using the most appropriate leadership, the firm leader needs to set the vision and corporate values, enhance employee morale, ensure effective communication across the organisation, motivate the workforce to provide the extra effort and time and provide appropriate resources. In this portfolio, the comparison and contrast between two leadership theories: McGregor’s “Theory and X and Theory Y” and Fiedler’s Contingency Theory of Leadership will be done.
McGregor’s “Theory and X and Theory Y”: In 1960, Douglas McGregor introduced Theory and X and Theory Y. This theory outlines two aspects of human behaviour at work. This theory highlights two different aspects of employees. Theory X outlines the negative aspect. On the other hand, Theory Y highlights the positive aspects of employees (Islam and Kalumuthu 2020). According to McGregor, the manager needs to develop the perception of subordinate employees based on various assumptions. For the assumptions of Theory X, it can be said that an average employee who needs formal direction prefers to escape from work because of his instinct. The manager needs to compel, punish, and force the employee to fulfil his responsibilities. Through close supervision, the manager can manage the employee. Several employees prefer job security over aspiration. Employees generally resist changes and dislike responsibilities. The assumptions of Theory Y outline that employees can utilise their physical and psychological efforts inherently to fulfil their responsibilities. A satisfying and rewarding job can enhance the loyalty, commitment, and involvement of the employee. An average but satisfied can obtain and recognise his responsibilities to the organisation (Bartz and Kritsonis 2019). In order to manage satisfied and engaged employees, the manager does not have to use external control. The manager needs to utilise the logical capabilities of the employee fully.
Fiedler’s Contingency Theory of Leadership: According to Fielder, the leader needs to use the most appropriate leadership style based on the situation. This theoretical framework is useful for the leader to evaluate the situation. Based on the situation, the leader needs to optimise the leadership approach. There is no one best style of leadership that will make the leader effective and successful. After analysing the personalities and characteristics of several leaders, Fred Fielder coined the contingency theory of leadership in the mid-1960s (Salihu 2019). This theoretical framework outlines that the leader’s readiness relies on a natural leadership approach and situational favourableness.
In order to define leadership, Fred Fielder identified two leadership behaviour that can be identified through the Least Preferred Co-worker scale. A high score on this scale indicates the relationship-oriented behaviour of the leader. A low score on the LPC scale indicates the task-oriented behaviour of the leader. According to Fred Fielder, there are two types of leaders: relationship-oriented leaders and task-oriented leaders. In order to develop relationships, facilitate team energy, and manage interpersonal conflict, relationship-oriented leaders are effective. In order to organise projects and manage the team to achieve the project objective efficiently and effectively, task-oriented leaders are effective. Situational favourableness, such as leader-member relations, task structure, and leader position power, impacts the leader’s leadership style. Trust between the employer and employee heavily influences the leader-member relationship. A higher degree of trust between leader and subordinate employees can make the situation more favourable. In order to complete the task, the leader needs to clarify the task efficiently. A higher degree of clarification regarding the task structure can improve performance. The leader has the authority to direct the subordinate team members. The leader needs to utilise his authoritative power to control the workforce.
Personal Perspective
Comparison and contrast between leadership theories: In specific situations, both Fiedler’s Contingency Theory and McGregor’s “Theory and X and Theory Y” are effective. In order to manage the workforce strategically, generate the maximum value of the workforce, and lead the stakeholders towards organisational success. There are certain limitations of Fiedler’s Contingency Theory. The assumption of that leadership behaviour is static. It can restrict the leader from trying new leadership approaches or changing their ways (Kundu and Mondal 2019). The LPC scale recommended by Fred Fielder is based on subjective judgement. The leader might be misguided by any error in the assessment. This theoretical framework highlights only two leadership approaches: task-oriented leadership and relationship-oriented leadership. It can force the leader to follow these two leaderships resulting in confusion and uncertainty. Several leadership styles highlight that the leader can show both behaviours simultaneously to accomplish the individual and shared objectives.
On the other hand, there are certain limitations of McGregor’s “Theory and X and Theory Y. First of all, this framework puts forward challenging sets of assumptions for the leaders. The leader is motivated by ‘Theory X’ or ‘Theory Y’. Depending on specific situations, both assumptions might be effective. However, the leader needs to assess the situational variables. In today’s intensely competitive and challenging macro-environment, McGregor’s “Theory and X and Theory Y is considered as outdated as this framework represents two extremes (Keerthana and Babu 2018). Implementation of this approach might lead to a very hostile and distrustful atmosphere across the organisation. In reality, the leader might face challenges to uphold the Theory Y style of management. Due to the high complexities, it might be challenging for the leader to use ‘Theory X’ and ‘Theory Y’ with each other. In order to generate maximum value from the workforce, the leader needs to hire the most potential and eligible candidates as employees. Implementation of this framework might make employment harder (Daneshfard and Rad 2020). Lastly, it can be said that this framework work on assumption. In order to ensure organisational success, the leader cannot rely on assumptions.
Workplace conflict is inevitable as several employees from different cultural and social backgrounds work in a business entity. In order to accomplish individual and shared objectives, employees with different work styles work together for a shared objective. In order to accomplish organisational objectives, the management of a firm needs to resolve conflict among stakeholders. Some level of organisational conflict is desirable. It is not always dysfunctional. The existence of conflict in the workplace indicates the commitment of stakeholders to shared objectives (Claro, Vojnovskis and Ramos 2018). Stakeholders of the organisation intend to come up with the best solution to any issues. It can promote challenge and encourage the employee to maximise their effort. So, it can be said that this type of organisational conflict is beneficial for the organisation to gain competitive edges over its counterparts.
Traditional 1930-1940 approach toward conflict: During the 1930s and 1940s, conflict, whether it was organisational conflict or personal conflict, was perceived negatively. At that time, dysfunctional conflict was perceived as a negative approach that led to an overall decline in organisational performance and communication of the group. A lack of sufficient motivating conflict and overabundance of conflict lead to dysfunctional conflict. For example, the conflict between the team members due to a fight can be categorised as dysfunctional conflict (Hussein and Al-Mamary 2019). Due to inappropriate communication, which lacked trust and openness, between the team members, dysfunctional conflict forms. The leader, as well as the management, needs to play a proactive role to resolve conflict among team members and generate maximum value from the human resource.
Leadership Theories
Conflict as a part of organisational behaviour: According to Robbins and Judge, conflicts deal with perception. Conflict starts when an employee perceives that another employee has been adversely impacted or is about to be adversely impacted (Dildar, Ansari and Arshad 2021). There are several reasons for organisational conflicts, such as incompatibility of objectives, disparities over the interpretation of facts, and disagreements based on behavioural expectations. There are different forms of conflict, such as the traditional view of the conflict, human relations view of the conflict, and interactionist view of the conflict. The traditional view of conflict outlines that conflict is harmful to productivity. The management and leader need to avoid conflict. According to this conflict perspective, there are several factors such as inappropriate communication, lack of openness, and failure to address the employee needs that can lead to organisational conflict. The human relations view of conflict outlines that conflict is normal and unavoidable. Despite precautions, the leader and management can not avoid organisational conflicts. This concept was popular during the 1940s to mid-1970s. At present, the interactionist view of conflict is popular. According to this concept, conflict is a positive force, which is necessary for the organisation, that can motivate the group to perform efficiently and effectively.
The unitarist perspective of conflict: The Unitarist perspective highlights organisational conflicts that can be avoided. In order to avoid organisational conflict, the leader needs to bring all stakeholders of the organisation and ensure that the entire organisation is controlled through a single source of power. According to this perspective, the workplace is an integrated and harmonious entity that aims to serve a common purpose (Budd, Colvin and Pohler 2020). The leader needs to imply strong leadership and utilise an effective communication mechanism across the organisation. Conflict in the workplace indicates the existence of a faulty communication system in the firm. In order to serve the common purpose, employees and managers can pull together. This perspective highlights that trade union is not an essential element in managing employee conflict.
Pluralist perspective: This perspective highlights that business entities have employees and managers with unique interests, objectives, and aspirations. Major bargaining groups in the business entity control the power. This perspective outlines that conflict is inherent and inevitable as employees have competing interests (Bill and Stanley 2020). Employee union has a legitimate role in the organisation. Organisational conflicts can be beneficial for the firm. The leader needs to identify the conflict and put the conflict under control through institutional responses. The management plays a pivotal role as a meditator to resolve the conflict between perceived competitors.
Radical perspective: In order to define conflict, this perspective outlines that conflict can happen at interpersonal, ethnopolitical, communal, geopolitical, legal, global, and rhetorical levels. Radical conflict is categorised as radical as these conflicts are intense and prolonged violence takes place due to this conflict. According to Helms and Oliver, the inevitable outcome of exploitative employment relationships (Helms and Oliver 2015).
The movement of a business entity from one state of affairs to another is known as organisational change. The management intends to make a successful organisational change to improve the work procedure, culture, technology, employee morale, and organisational policies and develop an effective communication mechanism across the business entity (Mansaray 2019). Organisational change is effective to improve employee morale and to drive positive teamwork and job enrichment. Implementation of effective organisational development is beneficial for the management to implement the organisational change.
McGregor’s ‘Theory and X and Theory Y’
Triggers to organisational change: The intensity of competition in the global macro-environment has increased drastically. That is why contemporary business entities are experiencing several challenges. Several factors trigger organisational change. Changes in government policies might force the business entity to optimise its policies and work procedure. Governments have the authoritative power to change the policies favouring the people. Whether it is a public or private organisation, they are bound to follow the regulations set by the government. In order to address the change in the market demand, a business entity needs to focus on organisational change. Customer, an important stakeholder of the organisation, is interested in getting the best quality products, which can satisfy their specific needs, at an affordable price. Technology change might force the organisation to imply organisational change. Social changes, failure to accomplish the organisational objectives, competitive innovation, cost-cutting, merger and acquisition, structural changes, and end-of-life products are the driving forces that force the firm’s management to imply organisational change and address the target audience’s specific needs.
Barriers to organisational change: Resistance from the staff and stakeholders is one of the key blockades to organisational change. Employees are convenient to follow the same work procedure that they are following over time. They might face challenges in learning new work procedures. Organisational change leads to alternations in employees’ duties, powers, and influence. Employees who might face challenges due to organisational change resist the change. Due to the fear of losing jobs, employees resist change. Employees prefer to follow the same work procedure and are least interested in taking risks because of insecurities and lack of creativity. Limited understanding of the change, the impact of the organisational change, negative attitudes of the staff, failure to include stakeholders in the change procedure, poor communication mechanism, inadequate resources, lack of management support, lack of commitment to change, lack of experience, poor leadership approach are the barriers of a successful organisational change.
Organisational development model: There are different organisation development models. In order to implement the organisational change strategically and successfully, the leader of a business entity can utilise the most appropriate organisational development model based on the situation. Kurt Lewin proposed an organisational development model named the 3 Stage of Change model. This model assesses two areas which are the change procedure in organisational environments and how the status-quo could be challenging to realise effective changes. In order to make the organisational development, the management needs to focus on the first stage: unfreeze. It is the initial step of organisational development. In this step, the management needs to raise awareness of the change status quo and the present level of acceptability. In this stage, the management needs to clarify the significance and necessity of the organisational change. In the next step, which is changing, the management needs to implement the change (Muldoon 2020). In this stage, the management needs to support the stakeholders who might be affected or face challenges due to the organisational change. Refreezing is the last stage of this framework. In this stage, the management needs to reinforce, stabilise, and solidify the change. The management needs to work on one specific purpose, which is ensuring that employees do not revert to the prior work process or old ways of thinking.
Fiedler’s Contingency Theory of Leadership
Kotter’s Eight step model of change is effective for a business entity to ensure organisational development. In order to make the organisational change to develop the firm, the management of a business entity needs to follow eight steps, which are to enhance urgency, develop the guiding team, create the vision, communicate for buy-in, empower action, create short-term wins, do not let up, and make change stick (Kang et al. 2021). By following this model step by step, the leader can provide a clear description and guidance to the stakeholders. It will allow the management to control the change procedure. It will allow the management to enhance employee involvement and acceptability among stakeholders for organisational development.
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