In the early nineteenth century, Hawthorne studied and examined how employees can be motivated by managers in order to work efficiently at maximum rate of return. This theory of motivation and reward had more than use of pay incentives improved the employee output in the work groups and due to the fact that there was a feeling of importance by employees because they were being studied at work, there was an improvement in work. Leaders can derive some concepts from the historic discovery; finding ways of motivating as well as rewarding their employees apart from the perceived rewards of being employed or having pay incentive. Managers need to find more intrinsic and extrinsic rewards of attracting top talent. Valuable theories have been uncovered by research which has been vital in area of rewards with key theories being the Maslow’s hierarchy of needs that assumes that an individual’s needs are hierarchically arranged in a system from psychological or low-level needs to self-actualization or highest level needs. Assumptions in this theory is that individuals get motivated based on the hierarchy that they are in, hence in each of these areas, individuals have got different level of needs and their behaviors will be derived from such levels.
Application of Maslow’s theory in rewarding is that employees can never be fully satisfied unless they have their basic needs satisfied. Example, if employees will not be given an off to be with their families due to the mandatory overtime ,they will be demoralized because the employer is not providing for their social security resulting to their work not reaching its maximum potential. Employers therefore need to understand that they are bestowed with responsibility of allowing their employees to having a life outside work environment. There is constant finding of new ways and approaches by contemporary companies in top talent recruitment, talent retainment and getting innovative ways of motivating their employees for maximum output. Theory behind the way managers can effectively motivate and reward its employees dates back to the century’s turn.
There is invention by new innovative companies on how to do just that. Google Inc., Wholefoods Inc. and Cisco Inc. are leading the way of management restructuring in order to streamline employees creative ideas which eventually produce new products. The companies reward their employees with perks such as onsite swimming pools, employees are allowed to come with their pets to work, there is provision of onsite child care, and free food that employees want. The companies have continued to provide relaxed environments resulting to elevation of group thinking and the next product invention is based on teamwork. The companies shun tight micromanaged traditional companies’ environment and instead embrace the small individual entrepreneur groups. The fascinating aspects of such companies are the intrinsic rewards together with how it allows the employees to operate wholly with respect and freedom, empowering them to focus on a common goal; invention of ideas and products that will result in changing the world for good.
Key to the Google Inc. success is quite simple; intrinsic rewards where there is basically no real hierarchy because the company does not create hierarchy or monolithic group. It has a flat structure in order to maximize on creativity. Its unofficial channels allows for flow of ideas within groups focusing more on smaller multiple groups that has an overseeing project manager. The company has raised the bar on the way companies need to treat and reward the employees. This has made the employees to grow and thrive because the company has focused on a noble mission and its employees are convinced to believe in the mission of changing the world. Employees are made to believe as being part of a big thing which is conduit for world peace as well as agent of change.
At Google Inc., there is maintenance of entrepreneurial culture by its founders and views the small teams as being individual start-ups where there is implementation of what one knows and later make use of the founders’ template in promoting entrepreneur that in turn promotes innovation. The founders created an environment where there is growth of ideas, where people would comfortably work, dream big, have fun and get rewards for their hard work. It has continued to provide innovative benefits. Founders believe that Google Inc. will continue to thrive by providing their employees with resources that are necessary for new ideas implementation and also by dreaming big. There is maximum collaboration by employees at Google Inc. where they debate and dissent their projects and ideas.
For Google, the fun work environment of employees showing up to work anytime they feel like, bringing their pets, putting on pajamas, enjoying free fitness centre, onsite doctors when sick among others, have provided psychological benefits and has encouraged its employees to becoming more creative, committed and more productive. This is because highly motivated employed do not require to be micromanaged because they have common vision. The company heavily relies on peer to peer feedback and not peer to middle managers feedback .The decentralized approach to the management structure is due to the belief that breakthroughs come from smashing paradigms and questioning assumptions.
Cook, Joshua. How Google Motivates their Employees with Rewards and Perks. 12 July 2012.
Web. 13 November 2013 <http://thinkingleader.hubpages.com/hub/How-Google-