Motivational Theory/ Management Essay

1666 Words Apr 26th, 2006 7 Pages
Motivational Theories Paper
A Discussion used to increase performance at
Ely Paper Company

Our organization is experiencing a problem in that sales are lower than they have been in ten years and we need to make drastic changes in order to improve the motivation of our employees, said the CEO of one of the largest paper plate producing business in Ely, Minnesota.
Mr. Ely, the CEO, knew that motivation of employees was important because of its significance as a determinant of performance and its intangible nature. Motivation is the set of forces that cause people to choose certain behaviors from among the many alternatives open to them and is key to the success of any business. Mr. Ely hired a consulting firm to determine
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Production workers need to feel that there is a fair balance between job input and job output.
The expectancy theory provides the behavioral stimulants necessary to sustain that job performance does receives its just rewards. The expectancy theory framework basically states that motivation plus effort leads to performance, which then leads to rewards that impact an individual's behavior. For example, a production worker's expectancy is his belief that higher production rates (effort) will result in higher sales (performance). His instrumentality is that higher sales (performance) will result in higher profits (rewards). His valence is the importance attached to the profits (rewards) that results in the benefits provided to him, his family and his community.
In order to motivate and improve employee behavior the following areas needed review. The company supplemented day-care cost, established profit sharing programs, published performance goals and rewards associated with those goals. The production workers was asked, what they would like to see changed at the company and what could be changed to improve the company's performance. The

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