For years, the focus on work motivation has prevailed in managerial research. Both academic researchers and practitioners have sought effective ways to maximize employee potential and increase company success. The purpose of this study is to generate a better understanding of what motivates employees in small companies in the United States. In order to achieve this aim, the author posed the following research questions: how American managers motivate workforce in small companies; what the relationship between motivation and gender and motivation and age is. Within the framework of the qualitative approach and case study research strategy, with the use of interview and documentation, data on two small U.S. companies was collected. Within-case and cross-case analyses allowed the researcher to present findings which reveal that employees at small enterprises are motivated mostly by the following factors: perks and wages, ability to participate in decision-making, and management’s positive attitude and recognition of employee needs. Given the small size of businesses, promotion is not a motivational factor. At the same time, gender is not important when analyzing the type of motivation, so men and women are motivated similarly. However, the young staffs prefer different kinds of external motivation from the ones that the older employees opt for.
Keywords: motivation, small companies, managers, internal motivational factors, external motivational factor, gender, age.
I. INTRODUCTION
This part introduces the research topic of employee motivation in small organizations. It provides the background to the research, discusses problems found in this research area, and states the research aim, objectives, and research questions. Specifically, gender and age are the focus of this research. In addition, the chapter provides an overview of the whole work.
The focus of the project is the research area of work motivation. What motivates people in organizations to maximize their potential and to put effort for their employer to reach success? Current business environment, both turbulent and uncertain, affected by global economic crises, causes many employees to seek ways of getting 100% of work potential from people they hire (Sheedy, 2009). Motivation is focal to human behavior, hence practitioners and theorists alike proceed to seek universally applicable motivational techniques and laws that could be used for various cultural groups across the globe (Di Cesare & Sadri, 2003). Work motivation is defined as a set of specific energetic forces which come within and beyond a person’s being in order to initiate behavior related to work and to determine its intensity, form, duration, and direction (Pinder, 1984 in Meyer, Becker & Vandenberghe, 2004, p. 992).
For years, the focus on work motivation research has been within the framework of traditional economic theories (Hicks, 1932; Shapiro & Stiglitz, 1984; Akerlof, 1982). The emphasis was on the importance of monetary rewards as well as supervision as primary motivators of work effort. In contrast, within the framework of psychology research great advancements have been made, in particular needs-based and motives-based theories, expectancy theories, social cognitive theory, job design theories, and goal setting theory, etc. have been developed (Latham, 2007).
Numerous researches highlight the importance of work motivation to modern organizations. Yet, today claims continue to persist that the theory of work motivation is lagging behind critical changes at work, so that managers lack necessary guidance for effectively managing businesses and organizations (Locke & Latham, 2004). Thus, more research is needed on new developments built within the existing theories, based on a cross-cultural and cross-disciplinary approach and guided by enhanced understanding of how people are motivated to work in modern workplace environment.
This topic of research is particularly relevant to the author’s career choice and potential to work as a manager in future. Extending the knowledge base and developing a new understanding of how to motivate employees in modern organizations will help any manager to motivate the workforce, hence helping the organization to reach success.
Based on the discussion of the topic relevance, the aim of this paper is to provide a clarified understanding of motivation of employees who work in small companies in the United States. For the purposes of achieving this aim, the following research questions will be addressed:
RQ1: How can one describe the ways American managers motivate their employees in small organizations?
RQ2: What is the relationship between gender and motivation in small businesses?
RQ3: What is the relationship between age and motivation?
This research paper is arranged into six basic parts. It starts with an introduction and continues with a literature review which identifies previous work in the field. The next part is methodology where the research approach is explained. The parts that focus on data collection and data analysis follow. The paper ends with findings and recommendations.
II. LITERATURE REVIEW
This part provides an overview of previously done research on motivation in the field of management in general and in small companies in particular. It reviews extant research on what exactly managers can do to motivate workforce, on factors of motivation, and on specifics of relationship between motivation and employees’ gender and age.
Mahal (2009) investigates the impact of organizational culture and organizational climate on employees who work for the largest pharmaceutical company in India – Ranbaxy Laboratories Limited. Based on a sample of 100 adult employees, it has been found that motivation is positively related to the following eight variables: team work, involvement, environment, competency, management effectiveness, reward and recognition, and commitment. The authors conclude that organizational culture and climate are central variables that are likely to raise employee motivation in any organization. Findings of this article can easily be included in the research. Mahal (2009) addresses the problem of focal motivational factors in organization and their role in increasing employee performance effectiveness. He also gives advice on how motivation of employees could be improved by the management. Mahal (2009) provides empirically based findings that are taken from a relevant sample of multicultural force, so these may be applied to similar contexts outside India.
Manzoor (2012) examines factors that affect the motivation of employees and identifies the relationship between employee motivation and organizational effectiveness. In such a way, organizational effectiveness increases as employee motivation increases through employee empowerment and employee recognition. In order to ensure organizational growth, organizations ought to design policies, rules, and adopt structures which enable employees to have enough space to work; they should also appreciate employees with reference to task fulfillment and their achievements. This article pertains to the research owing to its statistical analysis of recent empirical studies on impact of reward and recognition programs on satisfaction and motivation of employees, in large multinational companies (e.g. Unilever or telecommunication companies) and commercial banks. It is important, since it provides a reasonable view on the importance of employee recognition and empowerment and posits the latter as core factors of organizational effectiveness and increased performance.
Shaw, Gupta, and Delery (2002) examine the impact of pay dispersion on performance levels and organizational outcomes. Based on empirical research, Shaw et al (2002) come to the conclusion that pay dispersion can increase levels of employee performance (i.e. boost their efforts), in particular through provision of independent work opportunities and incentives for higher level of job performance. The study compares the effects of pay dispersion with pay compression. It concludes that pay dispersion is advisable, given independent work and formally established individual systems of incentives; on the contrary, pay compression is advisable when work within an organization is interdependent and there are no individual incentive systems.
Despite the fact that the study focuses on two sectors of industry, its large sample and a broad spectrum of company size allow applying the results within a wider context. Particularly important for this research will be the application of theoretical framework that incorporates the theories of individual motivation, organizational justice, neoclassical economics, and institutional theory. In addition, the study allows tracing the impact of pay dispersion on organization, depending on the type of work that prevails (independent or interdependent). It also provides a scheme of measuring workforce performance in industry organizations through focus on productivity, accident rates, and safety violations.
Ebrahimabadi, Jalilvand, Sharif, Salimi, Ghorban, and Somayeh (2011) focus on the benefits of applying Modified Expectancy Theory to in-service training courses content to enhance employee motivation. The findings show that the use of Modified Expectancy Theory may increase understanding of motivation in employees and boost their participation in training courses. In particular, the model suggested by Ebrahimabadi et al (2011), which includes expectancy, intrinsic valence, intrinsic instrumentality, and situation, helps to establish such a training course situation which will boost employee desire to enhance performance. The latter incorporates goal setting, relevant content and performance, and appropriate appraisal.This study provides insight into the issue of factors of motivation from the perspective of Modified Expectancy Theory. It identifies factors of motivation from a specific theoretical perspective and emphasizes the role of situation, intrinsic instrumentality, expectancy, and intrinsic valence. The latter are evidenced to be influential factors of affecting the motivation of employees at National Iranian Oil Products Distribution Company. The findings may be applied to a variety of contexts.
Van Dijk & Kark (2007) offer a conceptual framework of leader behavior and its effect on followers. Leadership theory in combination with self-regulatory focus theory allows shifting the focus from the followers’ self-identity to a combination of leaders’ self-identity plus the follower’s one and allows seeing leadership as a broader process. This study contributes to the research by its focus on interrelationship of leader behavior and leader motivation and employee motivation and performance. It provides a theoretical background to the research and explores a variety of ways leadership may boost motivation in employees. Finally, the findings conceptualize the role of self-regulatory focus in the process of leader-employee interaction.
Gagne (2009) provides a theoretical framework for motivation increase through knowledge-sharing. The model suggested by Gagne (2009) is based on a combination of self-determination theory (SDT) and the theory of planned behavior (TPB). In addition, the author focuses on suggestions for practical application of the framework to specific human resource management practices: job design, managerial styles, staffing, training, and compensation/performance systems.
The research provides a useful theoretical model of enhancing employee motivation and boosting employee performance through knowledge-sharing. The study presents a carefully constructed model of knowledge sharing by focusing mostly on (controlled) motivation. The study may be used as a part of theoretical background for future empirical research.
Barbuto & Story (2011) discuss the relationship between motivation and organizational citizenship behaviors. Whereas motivation was predicted to be a factor of OCB formation, the sources of the former were explored using the sample of 239 employees and leaders involved in 4 businesses in the agricultural sector in Nebraska. Specifically, self-concept internal motivation (i.e. the one based on individual’s desire both to satisfy and reinforce self-perception of traits, values, and competencies) was found to be significantly related to employee OCB, and this is a positive relationship.This study pertains to the research by its focus on motives that drive individuals to satisfy their desires and how they lead employees to demonstrate organization citizenship behaviors. This study is also useful because it uses the Motivation Source Inventory (MSI) in field testing as well as focuses on the American context. It may serve as a sample of empirically based research with reference to its data collection and data analysis methods.
Lindenberg & Foss (2011) proffer the joint production motivation construct within the framework of the goal-framing theory. It is found that joint production motivation helps employees to see themselves as participants of a joint endeavor, where everyone has his/her own roles and responsibilities; coordinate cooperation in a cognitive manner; select their behaviors on the basis of joint goals; and generate shared task or action representations.
This research is useful for the given work owing to its theoretical value. Motivation is explored in a broader sense – as joint production motivation, and it is discussed within the limits of the goal-framing theory. Moreover, the study provides theoretical overview of relationship between motivation and setting goals/generating employee activities and perceptions; forming their understandings of their roles, etc.
Dysvik & Kuvaas (2008) examine alternative relationships that exist between training opportunities, motivation, and employee outcomes. The sample of 343 trainees involved in Norwegian service industry allowed Dysvik & Kuwas (2008) to establish that intrinsic motivation is what mediates the relationship between training opportunities and employee turnover intensions. In addition, intrinsic motivation was found to serve as a moderator of relationship between employee training opportunities and OCB. In other words, intrinsic motivation may be enhanced by perceived training opportunities of employees. This study is useful due to its focus on intrinsic motivation, i.e. motivation to do an activity despite the reward, because an employee simply wants to experience satisfaction and pleasure from doing it. Intrinsic motivation is explained with reference to employee need for competence. The latter is understood as the one that may be satisfied once employees are encouraged to look for challenges relevant to their capacities.
III. METHODOLOGY
This part explains the selected research method. Qualitative research approach is discussed, its relevance, and validity. The chapter reveals the research strategy (Case Study), methods of data collection (Focused Interviews plus Documentation), and selection of the sample (two small companies in the same area (city), which differ by their use of managers’ approaches to employee motivation). Data analysis methods are explained.
This research follows a descriptive strategy based on the purpose to describe given variables and establish the relationship between them. The exploratory and explanatory strategies will also be utilized when the cases are introduced and analyzed. Explanation will involve combining certain factors and interpreting those with reference to the theory (Miles & Huberman, 1994).
In this context, the study is done within the qualitative research approach. Qualitative data comes in the shape of words that reflect conducted observations, interviews, or textual documents. It is used to interpret phenomena from the viewpoint of “how” they occur and is mostly applicable to small-scale studies. In this research, the use of the qualitative data will help to capture the meaning, themes, and focus of the explored phenomena (Marsh & White, 2000). However, this research will be quite tight, since there are considerable limitations in terms of time and size.
Within the selected research approach, the method of case study will be applied. Yin (2003b) states that this method is used when there is a need to explain the topic broadly, to study a few variables rather than one, and to analyze data from a variety of sources. Denscombe (2000) advises to use the case study method when doing a small-scale research. A serious advantage of the case study is ability to use a few methods within it, for example, the case study may involve observations, interviews, analysis of quantitative data, etc.
Data analysis methods have been selected within the content analysis paradigm. They are a within-case analysis, when data gets compared to the theory presented earlier, and a cross-case analysis, which aims at finding differences and similarities between given cases (Miles & Huberman, 1994).
IV. DATA COLLECTION
This chapter presents data that was collected empirically by the use of interviews and documentation. The data is presented as case studies.
4.1. Data Collection Overview
In this study, two sources of data have been used: interviews (namely, focused interviews) and documentation. Yin (2003b) states that the use of various sources of data makes any case study stronger, so findings and conclusions are not likely to be questioned.
Documentation is used when explicit data is needed throughout the case study. It confirms what one gets in result of an interview. Interviews are widely used in social sciences research as they are considered to be important sources of information to be used in the case study (Yin, 2003b). In this research, focused interviews were conducted with companies’ managers. This type of interview refers to a certain situation when the respondent is interviewed for a short time. The interview was open-ended.
As for the sample selection, for our qualitative study two small companies have been selected from the same area, but with two different approaches to motivation. These companies are of similar size and turnover. As we chose to interview managers from each of these companies, the purposive sample was used (Miles & Huberman, 1994).
4.2.Background Information
The two companies that have been used for this case study were Hillcrest Bakery and House of Bread. Both are located in Washington. Hillcrest Bakery sells bread and pastry, while House of Bread sells bakery and other meals. These two companies are rather successful, despite the fact they are situated in the same area. Both companies rely on employees heavily in achieving success; therefore, the issue of motivating their workforce is rather important.
The vision of Kaskes family bakery was created back in 1965. Peter Kaskes came from the Netherlands to the United States through Canada and took a job as a baker at what was known as Hillcrest at that time. Within a year, he was offered to purchase the bakery by its then owners. Kaskes agreed and created a family business that relies on traditional recipes and secrets that he brought with himself from Holland, where his family had been in bread business since 1830. Today, the business is one of the best bakeries in the area, for example, it got an award of the Best Bakery by the survey in the Evening Magazine’s The Best of Western Washington in 2009. They sell taaitaai cookies and dessert pastries, marzipan rolls and breakfast pastries, wedding cakes and birthday cakes, bread and holiday treats, etc. Three generations currently work at Hillcrest Bakery in Bothell, WA (Hillcrest Bakery, 2013).
On average, the company has from 10 to 19 employees (currently 12). Current estimates provide information that the company has the revenues between $2.5 and 5 million annually (Manta.com). Location type: single. Owners: Bob Kaskes, LeidaKaskes. CEO – LeidaKaskes. Address: 10010 Main Street, Bothell, WA98011-3424.
House of Bread, a privately owned business in the same neighborhood (15224 Main St, #105, Mill Creek, WA98012) was founded back in 2004. It offers the following products:
pesto turkey, veggie delight, side garden salad, all sandwiches, cinnamon swirl, cinnamon raisin walnut, deli sandwich, sweet breads, foccacia, beef sandwich, chocolate heaven, freshly baked breads, turkey avocado, chips pretzels, onion dill, bologna, corn tortilla, honey whole wheat, tuscan chicken, breakfast pizza, irish soda bread, roasted peppers, gourmet sandwiches, cinnamon roll, cheese bread, pizza bread, garden salad, corned beef, roast beef sandwich, bread bowl, french toast, brownies, bread pudding, granola, scones, roasted chicken, hash browns, and scone. The principal and owner of the business is Wayne Warren. These days, the bakery has annual revenues between $1 and 2.5 million. It employs staff between 10 and 19 employees (Manta.com).
4.3.Employee Motivation
The Hillcrest Bakery manager says that the company has always taken into account the fact that several motivational factors exist for their workforce. For Leida Kaskes, the company owner, people (including both customers and staff) are the main prerogative. Both take part in making Hillcrest a profitable business. The company relies on shift work; therefore, its focus is on making shift schedules convenient. The company management constantly monitors whether the given shift schedule is convenient enough for employees and for the type of work performed. It is important that employers receive different tasks, i.e. change tasks. Once in 12 months, surveys are conducted that measure various factors of motivation; the survey also determines whether employees are satisfied or not with their wages, working conditions, etc. The last conducted survey shows that nice atmosphere at work, the feeling of safety, and good relationship with management and co-workers are as strong motivating factors as money. Of outstanding importance are the norms of morality and ethics applied to employee management and running the business. Additionally, the company management recognizes the importance of family life of its employees, and allows days-off for family reasons. The specific feature of this company is that it is a family owned business and half of its employees are actually family members initially motivated to make the business succeed.
As for relationship between motivation and gender, the company management says that the equality of genders is the company policy. While both males and females work in the company, the management does not want to focus on one gender more than the other. Equality is stressed in every aspect: type of work, vacant position, tasks, shifts, etc. It appears that motivation factors are the same: recognition by the management, respect, bonuses, and attending to employee needs.
As for the relationship between age and motivation, it has been found that a good motivational factor for the younger workers is to work nights, but to stay home at weekends, whereas for older workers working nights is not preferable.
As for House of Bread, this is not a family run business. It is a privately owned business which employs workforce outside family ties. The idea of the business is to provide a variety of baked products and meals at reasonable prices. While the company seems to have few competitors in the area, it retains its status due to specific and rich menu, friendly atmosphere and reasonable pricing.
Analysis of the management approach to motivation exposes the position of the management that all employees are motivated differently. It is also stated that wages is the first motivational factor. The individual wages depend on an individual and on how diligently he or she works. While on a piece rate, workers may control their wages to some extent. This is motivating for many. The next factor of motivation is bonuses, which the most hard-working employees may receive. Sometimes employees may receive gym cards or bonus Christmas gifts as bonuses. As for motivation and gender, the company employs both men and women. There are no noticeable differences in-between gender preferences of motivation. Regarding age and motivation, employers of older age prefer being given gifts or cash bonuses, while younger employees are likely to opt for such bonuses as some special event attendance or gym cards.
V. DATA ANALYSIS
This chapter provides an analysis of the collected data. It compares the data with the theoretical framework presented earlier in the paper; then the results of the conducted within-case analyses are compared with each other by the use of cross case analysis.
5.1. Within-Case Analysis
While the problem of motivating the workforce have existed for over a century now, managers still have difficulties understanding what exactly motivates employees. The literature review allowed exposing a range of motivational factors. They may be grouped into two principal categories: internal and external motivational factors (Barbuto et al, 2002; Kiger, 2006; Bryan et al, 2006; Robbins, 2003). External motivational factors are salary and wages (Bryan et al, 2006). They, however, are not thought to be enough to ensure the same level of motivation as internal motivational factors do (especially, in combination with the external ones). The internal motivational factors are based on meaningfulness of tasks and employee recognition, and ability of development and making choices (Quiley & Tymon, 2005).
At Hillcrest bakery, they focus on internal motivational factors, which are successfully combined with external ones. While wages are reasonably high, safety measures are taken, and the management allows making choices (schedules and shifts choices), creates a friendly and pleasant atmosphere, recognizes the needs of employees (when family problems arise, or the needs depending on age, for example), and allows them to take part in decision making. Besides, there is a constant change of tasks and novelty.
At House of Bread, both internal and external motivational factors are relied on. However, the focus is greatly on perks and wages. In addition, the management always tries to introduce new challenges and involve employees in experimenting with new menu options.
5.2. Cross-Case Analysis
Cross-case analysis allows us to see that in both companies the variety of motivational factors is used. Hence, there are not just internal or external motivational factors employed by the managers in either firm. However, in the first company, the focus is mostly on internal motivation: employees are allowed to choose shifts and schedules, perform varied tasks to ensure they develop professionally, and do not get bored, etc. While bonuses are sometimes provided, for example, in case an employee performance has garnered positive feedback(s) from the consumer(s), it is a relatively rare practice. Wages are high enough, which is thought to be a sufficient incentive (external factor).
On the other hand, House of Bread caters more for external motivational factors: perks and benefits. They offer gym cards or gifts to their workforce and bonuses for excellent performance. As for wages, the latter depend on employee performance; hence wages serve as a motivational factor, too. At the same time, internal factors are addressed as well. The staffs are invited to experiment with new menu options and take part in making decisions regarding the specifics of the bakery functioning.
As for the variables of gender and age, it has been found that in these bakeries the relationship to motivation is identical. Specifically, age matters in both cases. Older employees prefer to be motivated differently: they would rather work daytime and at weekends, than having night shifts; while younger employees are motivated by being given an opportunity to stay home at weekends after they have worked night shifts. Similarly, in House of Bread, younger employees opt for such perks as going to a concert or to the gym free, whereas their older colleagues prefer material gifts.
VI. FINDINGS AND CONCLUSIONS
This is the final chapter, which presents the findings of the research and conclusions. It provides summarized answers to the posed research questions and recommendations for management theory and practice on the basis of the conclusions above.
Despite the study was quite limited in scope and size, it allowed exposing an important finding: employees at small enterprises are motivated mostly by the following factors: perks and wages, ability to participate in decision-making, and management’s positive attitude and recognition of employee needs. Given the small size of businesses, promotion is not a motivational factor. At the same time, gender is not important when analyzing the type of motivation, so men and women are motivated similarly. However, the young staffs prefer different kinds of external motivation from the ones that the older employees opt for. Therefore, the following recommendations can be made: mangers at small enterprises should utilize both categories of motivational factors so that neither of them significantly dominated; motivation increases as employees are treated with respect and get attended to their individual needs by the management; young and old people should be motivated differently, according to their preferences, if possible.
